The American Chamber of Commerce Journal Vol. XXVII, No.3 (March 1951)

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Title: The American Chamber of Commerce Journal Vol. XXVII, No.3 (March 1951)
Issue Date: Vol. XXVII, No.3 (March 1951)
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extracted text: 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 J. A. Parrish, President; C. R. Leaber, Vice-President; F. J. Moore, Treasurer; R. J. Baker, J. H. Carpenter, J. T. Hicks, H. C. Stevenson, and Paul H. Wood. Marie M. Willimont, Executive Vice-President; I. T. Salmo, Secretary Vol. XXVII March, 1951 No. 3 Contents Editorials— Reparations from Japan...................................................................................................................................................................................... 71 Foreign Competition with Manila Hemp.................................................................................................................................................................................... 72 Roads, Exports, and Dollar-Exchange........................................................................................................................................................................................ 74 The Causes of Asia’s Poverty........................................................................ 75 The Truth about the Central America Abaca Plantations.................................................... Philippine American Chamber of Commerce Annual Report.............................................. Recommendation re Japan................................................................................................................................. Samuel Fraser................................................ 76 E. F. Koch......................................................... 78 American Chamber of Commerce of Japan 80 The Business View— Office of the President of the Philippines............................................................................................... Banking and Finance.................................................................................................................................... Manila Stock Market.................................................................................................................................... Credit................................................................................................................................................................ Electric Power Production......................................................................... ................................................ Real Estate.............................,...................................................................................................................... Port of Manila.................... ..................................................................................................... Shipping—Imports................................................................ •...................................................................... Lumber................................................................................................ ............................................................. Mining (More annual figures)................................................................................................................ Copra and Coconut Oil................................................................................................................................ Desiccated Coconut...................................................................................................................................... Manila Hemp.................................................................................................................................................. Sugar....................•.......................................................................................................................................... Tobacco............................................................................................................................................................. Imports.............................................................................................................................................................. Food Products............................................................................................................................. Textiles.......................................................................................................................................... Drugs............................................................................................................................................. Legislation, Executive Orders, Court Decisions.................................................................................. Other Chambers of Commerce—Convention of Chinese Businessmen........................................ Philippine Safety Council........................................................................................................................... Cost of Living Index, 1946-1951....................................................................................................................... The “Let Your Hair Down” Column................................................................................................................ Official Source.................................................... 81 C. R. Hutchison.............................................. 81 A. C. Hall......................................................... 82 C. W. Muilenburg........................................ 82 J. F. Cotton...................................................... 83 A. Varias........................................................... 83 R. L. Moore..................................................... 83 F. M. Gispert.................................................. 84 L. J. Reyes........................................................ 84 N. N. Lim............................................................ 85 H. D. Hellis..................................................... 86 H. R. Hick......................................................... 87 F. Guettinger................................................. 88 S. Jamieson....................................................... 89 L. A. Pujalte................................................... 90 S. Schmelkes.................................................... 91 C. G. Herdman................................................ 92 W. V. Saussotte............................................. 93 G. Rottner....................................................... 94 R. Janda............................................................. 96 Yang Sepeng.................................................... 97 F. S. Tenny....................................................... 99 Bureau of the Census and Statistics......... 100 ................................................................................. • 101 50 CENTAVOS THE COPY GET ALL BENEFITS OF OUR ENGINEERING SERVICE Lubricants AT ND EXTRA COST 7#£ roots (0)ur laboratory contains equipment as up to the moment as the minute hand on a watch. It gives our chemists the tools they need for their work — solving the many lubrication problems in your plant. y^^substant ial force of chemists and lubri cation engineers is maintained to seek the solution to your lubrication problems and no problem is too difficult that their com bined efforts cannot solve. y^^mong these is your STANDARD VACUUM representative who works with your engineers, a friendly, expert adviser ... on your staff but not on your payroll. ASK FOR WORLD FAMOUS GARGOYLE OILS AND STANDARD-VACUUM ENGINEERING SERVICE FOR ANY LUBRICATION PROBLEM IN YOUR PLANT. WORLD’S GREATEST LUBRICATION KNOWLEDGE AND ENGINEERING SERVICE. Editorials “ ... to promote the general welfare” Ambassador John Foster Dulles, last month, told this country no more than the truth when he stated that while he is in full sympathy with the Reparations justice of the Philippine reparation claims from Japan against Japan, no successful way has yet been worked out through which the pay ment of reparations by one country to another can be effected. That is, at first statement, surprising, and indeed, following World War I, it took long years before even the experts of the Allied and Associated Powers engaged in determined efforts to exact reparations from Germany, understood the facts. The truth is that reparations, or, more correctly, large reparations comparable to the damage done by an aggressor, can not be paid without further seri ously upsetting the economy not only of the defeated nation paying the reparations, but also the economies of the victorious countries receiving the reparations. It is true that indemnities were successfully collected after several earlier wars, but that was because the amounts demanded from the defeated nations were moderate and the payments were made mainly by the surrender of their assets in the victorious countries and from the proceeds of not excessively large loans.' Those were the days before the total wars of this era when the damage done'was rela tively small. In 1920, however, it was resolved that Germany must pay a minimum of 3,000,000,000 gold marks* a year for 35 years, but not more than 269,000,000,000 in the aggre gate. Though this was soon and repeatedly scaled down in conference after conference, and though there were ultimatums and there was even an occupation of the Ruhr in an attempt to force payment, what resulted was a flight of capital from Germany and the disastrous inflation of 1923 when the mark fell to a point where it was worth nothing. Then came the Dawes Plan, followed by the Young Plan, then the Hoover Moratorium, and finally the Lau sanne Conference (1932) at which the v^hole reparations figure was reduced to 3,000,000,000 gap^narks, equal only to what was formerly demanded for oi^year alone. Then, in 1933, came Hitler who within a few years repu diated the whole thing. What Germany actually paid is a matter of dispute. One authority put the reparation payments made up to 1924 at around 25,000,000,000 marks and after 1924 (under the Dawes and Young Plans) at 11,000,000,000, but during this same period Germany’s net borrowings came to 15,000,000,000, the total Germany transferred to the world, therefore, being 21,000,000,000. During the 1924-1931 period, Germany paid out some 11,000,000,000 marks, as already stated, but bor rowed 18,000,000,000! That was one reason why the Dawes ' and Young plans were comparatively “successful”. The reparations actually paid between 1924 and 1930 ranged annually from around 2% to 3-1 z2% of Germany’s national income; from 15% to 18% of the value of German exports; and from 17% to 32% of the total German govern ment expenditures. Yet, as shown, these payments could not be made without heavy borrowing, and the business ended in the rise of a Hitler and a second world war. The chief obstacle to the reparations payments was not the unwillingness of Germany, at first, to make the payments, but the unwillingness of the creditor nations to accept payments “in the only form in which they could be made, —by the transfer of goods or services”. The reason for the unwillingness of the latter was the fact that German reparation goods competed disastrously with the domestic goods in the creditor countries, and the German services competed with and brought suffering upon domestic labor. A transfer advantageous to a creditor country would be payment in gold, but a defeated country rarely has gold, and if it has to borrow it, that can only be done in the long run by increasing its exports over its imports,—and then we are up against the old difficulty of competition and underselling. One indemnity, the collection of which was fairly successful, was that exacted from China for the Boxer uprising in 1900. The indemnity amounted to 450,000,000 ♦The mark, before the war, was worth about $0.24. 71 taels, to be paid in 39 years, and secured by the revenues of the imperial maritime customs. America’s share in this was $24,000,000 or almost twice the amount of the Amer ican claims. The excess was cancelled by Congress in 1908, and the amount was used by China to send Chinese stu dents to American universities,—a wise action on the part of both countries. The foregoing facts with relation to German repara tions and the Boxer indemnity should caution moderation to the Philippines in its reparation claims against Japan. Some writers in Manila have recently said that the Philip pines is being asked to “give up” P8,000,000,000 in repa rations. That is misleading. It may indeed be the claim, though we do not know whether it has been officially pre sented. In withdrawing such a claim, however, if it has been made, the Philippines would not be “giving up” this vast amount, as it is wholly unlikely that the Philippines could ever collect it. What the Philippines would be giving up in abandoning reparation claims entirely would only be the amount it might have collected. Japan’s cruel and ruthless aggression inflicted terrible devastation and loss on the Philippines,—a total of damage and suffering which it is in fact impossible to assess in finan cial terms. Japan should and must make what reparation lies in its power, though we in the Philippines should con sider that the Philippines is not the only country which suffered greatly from Japanese aggression and not the only country which is demanding reparations. But while Japan’s ability to make restitution is limited and large-scale reparations payments may be admitted to be a practical impossibility, indemnity payments mo derate in amount but continued over possibly a considerable period of years, would not, we believe, .be impossible. A prominent Manilan and a former President of the American Chamber of Commerce, Mr. Frederic H. Stevens, has given the Journal permission to quote from a letter, embodying a concrete suggestion along these lines, which he recently addressed to Ambassador Dulles. It ran in part: “...To judge from statements made by President Quirino and other officials, as well as by the strong editorial comment in the Manila newspapers during the past weeks, the Philippine Government will persist in demanding' reparations. “I believe that we arc all agreed that the Philippines, especially, of all the countries invaded, is fully entitled to reparations, but I share the view that large-scale reparations are virtually impossible to collect and that any demands made on Japan should not be so great as to make meeting them impossible or to defeat Japan’s own economic recovery, in which we are all interested. “It is my suggestion, therefore, that the American Government should support the Philippine demand for some form of reparation, but should work also for levying only a moderate indemnity, say of a million pesos a year for perhaps fifty years. Similar indemnities could be laid upon Japan on behalf of other victimized countries, yet the total, it seems to me, would be well within the range of what is possible to collect. “Such payments, in fact, would be hardly more than token pay ments, but they would tend to assuage present bitterness and would serve as an acknowledgement by Japan of the wrong it has done and as a continuous and salutary reminder of this over several generations.” Mr. Stevens informed us that copies of his letter were also sent to Under-Secretary of Foreign Affairs, Mr. Felino Neri, and to American Ambassador Cowen. A million pesos a year may be considered by many as wholly insufficient, and we, ourselves, would not propose any specific amount. We believe only that the amount agreed upon should be possible both to pay and to receive in the forms in which it would have to be received. The present barter agreement between the Philippines and SCAP and the difficulties being met with by those who wish to increase the total amount involved in this trade, which difficulties flow in part from the fact that the Philip pines does not want to import too large a volume of Japanese goods, should go to show what large reparation payments from Japan would actually mean,—more Japanese goods and services than the Philippines would or could accept. That no very serious competition with our own abaca (Manila hemp) industrv is to be expected from the efforts presently being made to increase Foreign Competition the production of abaca in Cenwith Manila tral America, is the conclusion Hemp reached by Mr. Samuel Fraser in his article, “The Truth about the Central America Abacd Plantations”, written for the Journal and published in this issue. This is welcome reassurance, from the point of view of the local industry. It is to be noted that Mr. Fraser’s conclusion differs to a degree from that of the authority quoted in an editorial in the December issue of the Journal who declared that a “very considerable increase jn abaca production” will result from the Central American projects, though this authority also expressed the opinion that the Philippines will be “able to withstand this effect and that a healthy abaca industry in the Philippines will still be possible”. VTR- Fraser’s article naturally leads to the question: ±VAWhat of the competition to be expected from Borneo and Sumatra, where abaca cultivation has also been in troduced? According to first-hand information which the Journal was recently able to obtain, the answer to this question is equally reassuring. As to Borneo, the facts are briefly the following: From 1932 on to the outbreak of the war, the Japanese, led by the Ohta Plantation interests in Davao, brought some 7,000 acres of land under abaca cultivation on the east coast of British North Borneo, around Tawau, the six plantations established there ranging in area from 600 to 3,000 acres. The Japanese brought in their own labor and also, it is said, Chinese women workers. Local Dyaks also labored on the plantations. For the stripping, the Philippine ha&utan or spindle-machines were used. They produced an excellent hemp, the production probably reaching from 5,000 to 6,000 tons a year just before the war. The abacfi was affected by “bunchy-top” disease, which after the first world war destroyed the plantations in Ca vite, Tayabas, and Laguna, but the Japanese kept it in check in Borneo. A British alien property custodian took the planta tions over after the war, in 1945, when, it is said, the planta tions were still in a fine condition, but, as operated under the custodian, the bunchy-top disease and also heart-rot got out of hand and within three years the plantations were seriously infested. In January, 1949, a subsidiary of the Luzon Steve doring Co., Inc., of Manila, under the name “Borneo Abaci, Ltd.”, obtained a concession from the British Government, in which the Colonial Development Corpora tion, a British government corporation (the company re sponsible for the African ground-nut fiasco), had a onethird interest. Borneo Abaca, Ltd. began by attempting to eradicate disease and harvesting as much as was possible from the old plantations, and in August of 1950 began the replanting of some 2,500 acres which will begin to come into produc tion in about 24 months from the time of planting. Disease continued to be a very serious problenu and from January of this year to the end of March, less than 100 tons of hemp were sold. Those in the know believe that competition from Borneo during the next four years will prove almost nil. Presently, the Luzon Stevedoring Company interests and the Colonial Development Corporation are engaged in negotiations directed toward the latter taking over the whole project^ aid appraisers were recently sent to Borneo to assist inxestablishing a price. 72 r □ A international harvester COMPANY OF PHILIPPINES INTERNATIONAL POWER UNITS ESSENTIAL EQUIPMENT FOR ESSENTIAL WORK McCORMICK International f 5 IDI FARMALL March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 7: As to Indonesia: The Dutch began experimenting in abaci cultivation in Sumatra late in 1920, starting, as in Borneo and Central America, with plants brought from Davao.* They found one area in the foothills which was suitable, but after a year or two the small plantation was so badly infested with a species of black beetle that the plants had to be cut down. In 1924, some hundreds of acres on the east coast were planted to abaci which in time produced a good yield, but again the beetles proved a destructive pest. These insects make holes in the stem for depositing their eggs just under the surface, an exuded liquid rots the surround ing plant tissue, and the larvae eat the rotted parts; large holes are formed, and finally the wind topples the plants over . The only way the Dutch could get rid of the beetles was to pay children to pick them off. By 1939, however, in spite of this and other difficulties, the Handelsvereeniging “Amsterdam”, a private corpora tion, had 12,000 acres of abaci under cultivation producing from 10,000 to 12,000 tons a year of first-class Manila hemp. Shortly after that, the war broke out and the plantations were destroyed. Work was resumed after the war in the same east coast area, and on one 500 acre plantation on the south coast. The estimated production for this year is around 5,000 tons. The high standard of preparation, color, and grading of this fibre achieved before the war have been recovered. One handicap is the shortage of labor, and contract labor must be brought in from Java. The industry is, in these times, further plagued by strikes among the workers. Expert opinion is that Sumatra will probably get back to the pre war production, but it is not expected that it will go much beyond that. The ramification of the effects of the present virtual breakdown in government finance is wide indeed and leads to results which may not have been Roads, Exports, at all anticipated. and the Dollar At the moment, for instance, in Exchange . the province of Davao, thousands of piculs of abaci, estimated at well over Pl,000,000 in total value, which would make a very ac ceptable amount in much-needed foreign exchange, can not be brought to market because of bad roads, the roads being bad, of course, because the Government has no money, or little money, to keep them in repair. A very promising new abaci region, around Compostella, some 100 kilometers north of Davao City, today lies virtually isolated, and when abaca was selling in Davao City at P70 a picul, the small Chinese dealers in Compostella were paying from Pl5 to P25 less, hemp growers pressed for cash being compelled to sell at such a consider able loss. These few local dealers, however, lacking ware houses, can themselves buy only limited amounts, a few hundred piculs, so that it may be said with some truth that there is no real market in Compostella, though the world is crying for hemp. We are prone to think badly of such middlemen, who pay way below the market price even for what little they buy, but there is good reason why these small dealers in Compostella are-paying so much less than the price being paid in Davao City. A week or so prior to the date of this writing, one venturesome Chinese decided to brave the road and loaded some 50 piculs, about 3-1/2 tons, on an old G.I. ten-wheel truck, a vehicle built for hard going. It took him four days to reach Davao City because the truck had to be pulled out of one mudhole after another and the trip cost him P300. This is equivalent to P6 a picul and may be compared to the cost of shipping abaca ♦This was before 1925 when the export of hemp "seed” from the Philippinea was prohibited by law. from Davao City, via Manila, to Yokohama, which is P3.50 a picul, and the cost of shipping it across the ocean, which is P4.95 a picul to the United States West Coast and P6.45 a picul to the Atlantic Coast. Another Compostella dealer, a few days later, also decided on a trip. It took him a full week, though it cost him somewhat less, P250, but with the sleeping out in the rain so many nights and other hardships of the expedition, he said that he did not want to make another. It must not be supposed that Compostella lies on a side-road. It lies on the main north road of Davao Province, a national road! The foregoing illustrates some of the immediate effects of the bad roads in Davao, but if little or nothing is done about it, the r.emoter consequences will be far more serious. yjrfHEN abaca can not be marketed, it naturally is not w stripped, but this does not merely postpone the harvest. If the stems, as they mature, are not stripped, they rot, and the waste is truly heart-rending to those brave pioneers who have labored so mightily to bring wild virgin forests under cultivation. The work involved is perhaps the hardest in the world. The dense forest jungle is first cleared of underbrush, which, afterward, may or may not be fired, depending on the amount of the cut brush which in places may lie many feet deep. Then, surprising enough from the city man’s point of view and his ideas about forest-clearing, the hemp plants are planted in rows, the correct distances apart, with the towering forest trees still standing. Only after the planting of the hemp are the trees hewed down. The trees are allowed to lie where they fell and the stumps are not uprooted. In a few years, what with the heat and the rain, the ants and other insects, molds and fungi, all this wood has rotted away, the substance adding to the fertility of the soil. Oddly enough, too, the ground on which a great forest once stood and now bearing countless rows of abaci plants, is seen to be fairly level, almost as level as it would have been had it been plowed and rolled and harrowed. There is also the very hard work of ditching to obtain the necessary drainage, for hemp growers say that while abacfi requires rain the year around, it should be planted on a permeable and well-drained soil because it does not .like “wet feet”. Then there is the further hard work of plantation road-building, and, of course, the weeding that must be kept up until the abaca plants are high enough not to be overwhelmed by returning jungle-brush. It is estimated that it costs around Pl000 a hectare to bring a new abaca plantation into production, which, in Davao, because of the wonderfully rich soil and the plentiful rain fall, will begin in around 18 months from the time of planting. A fter the Liberation, the great problem in Davao was ^*-the low abaca production, a production which once constituted the wealth of the province and a good part of the wealth of the Philippines. This low production, brought about by the destruction of the war, the over stripping of what was left, and the lack of new plantings, is being rapidly, and one may say, triumphantly, over come by wide-spread new plantings, fostered, to no small degree, and to its credit, by the Central Government. Before the war, however, the bulk of the abaca in the province was grown in areas close to Davao City; the hauls were short, the roads good. These old plantations, even those not destroyed, or ruined by overstripping, or badly infected by the mosaic disease, are now slowly going out of production because abaca can not be advantageously grown for more than perhaps from 15 to 30 years on the same land. This fact has brought it about that the new plantings are now situated well away from Davao City, the two most promising and productive regions being in the Kidapawan area, 120 kilometers south of Davao City (in Cotabato Province) and in areas from 60 to 100 kilome 74 ters north of Davao City. Today, close to 50% of all the abacfi coming in by road, is coming from these areas. And the roads are poor and have more or less suddenly become much worse since the first of the year because of both the heavy rains and the growing traffic. This has brought the road problem to the fore, a prob lem which must be solved, for if it is neglected, then not only will much rich produce go to waste, but the whole impetus behind the new plantings will be forfeited. No man would, or could, invest time and energy and, in the case of the larger plantations, hundreds of thousands of pesos, if he is not sure that he will be able to transport his produce to the market when the time of harvest comes. Leaders in the industry are already most apprehensive. One of them recently reported: “I have come to the conclusion that we may be over-optimistic in our ideas regarding the increase in Davao production, and I believe you should warn Chicago regarding this... “There is no doubt that production in general is increasing and will increase further. It should be remembered, however, that this increase in production is almost all coming from outlying districts; the bulk will come from 50 to 100 kilometers north and from the Kidapawan area, 120 kilometers south. The production in areas close to Davao City is falling off; for instance, there is practically nothing coming from the Calinan area and only corn is being raised between Toril and Sta. Cruz. We are confident that the increase in production in certain areas will more than offset the decrease in ether areas; however, the net increase is likely to be less than we had anticipated; moreover, the areas which will show an increase are difficult to get at due to the very bad condi tion of the rpain roads. Secondary roads are mere mud-tracks. Since the war there has been a considerable number of G. I. units (trucks) in operation which were able to negotiate these secondary roads and which made light work of the bad main roads. But these units are gradually falling apart and new vehicles of this type are not available to replace the worn-out units. Another factor in the present situation is the acute shortage of tires, which are very necessary to keep trans portation running on the bad roads here which are particularly hard on tires because of the sharpness of the coral surfacing. Truck owners especially dislike the Kidapawan run because of the likelihood also of broken springs, etc.” What is needed immediately is the repair of the main roads and ultimately the good surfacing of these roads, and the system should be extended by new side-roads in various places. What a good new road can do is demon strated in the case of the fine new road built last year by the Philippine Abacfi Development Company of the Marsman Company, which extended the road of the Davao Penal Colony by 10 kilometers. As the best road in the province, and through difficult territory, it proved a very costly one, but it has made possible the extensive new plantings of both the Penal Colony and the NAP AO (Na tional Abacfi. Projects) and has made several tens of thousands of hectares more of virgin forest lands accessible. Either Philippine Government road funds or funds which may hereafter be obtained from the ECA could not be better spent than on the Davao road system, but some funds must be made available immediately if there is not to be an alarming falling off in our abaca exports just at a time when the best prices are offered. We are apt to think of the citizens* rights and liberties' chiefly in connection with political matters, the nature of democracy, and so on, and to overlook The Causes of the importance of these rights as a factor Asia’s Poverty in the economic development of a coun try from poverty to prosperity. In a book on economics, we recently ran across the following illuminating paragraphs: "What the East Indies, China, Japan, and the Mohammedan countries lacked wire institutions of safeguarding the individual’s rights. The arbitrary administration of pashas, kadis, rajahs, mandarins, and daimios was not conducive to large-scale accumulation of capital. ■ “The legal guarantees effectively protecting the individual against expropriation and confiscation, were the foundations upon which the unprecedented economic progress of the West came into flower. "These laws were not an outgrowth of chance, historical accident, and geographical environment. They were the product of reason." Though most of Asia’s millions have always been sunk in the direst poverty, the East was not without its accumu lations of “wealth”, but this wealth was in the hands of the very few, the rulers, who did not produce it but appro priated it, and who held it mainly in the form of luxurious private palaces and great stores of gold and silver, gems and jewelry, and other such' unproductive treasure. The people,—the tillers of the soil, workers and artisans, servants, soldiers, merchants, had no rights; all lived at the mercy of their princes; and when, perchance, they prospered even a little, what they had was sooner or later seized and they would be lucky to escape with their lives. For the common man, there were no guarantees either of personal freedom or of security of property; enterprise was stifled; there was no accumulation of productive capital; the nations were condemned to everlasting poverty. The fact that, because of these age-old policies of ex propriation and confiscation by both mighty and petty despots, there has been no large-scale capital accumulation in Asia, goes far to explain why the per capita income of the millions of people there is still from under $50 to $200 a year, as compared to from $400 to $900 in the different countries of Europe and over $1400 in the United States. The per capita income is highest in precisely those countries where the institutions exist which safeguard the individual’s political, civil, and property rights. This spells a solemn lesson for the Philippines. We have these vital individual rights, but we have not had them long, and the per capita income is still very low. But it has been rising; we are on the right course, and we must stay on it. We must protect and maintain those rights and we must be ever on our guard against any govern mental measures which, cloaked though they may be in law, are arbitrary or carry the faintest suggestion of ex propriation and confiscation. Such measures lead straight to national retrogression and a reversion to a permanent state of hopeless poverty among the people. Let us use our reason, since these rights, in the words of the author quoted, were the product of reason. Let us not allow the atavistic attitudes and the personal greed of some of those in power to imperil, under whatever pretext, nationalistic or even patriotic, the nation’s continued progress and destiny,—not to say our individual freedom and prosperity and our per capita income! £tj^cxt to a curtailment of the money supply, the soundest means of checking inflation is to coax consumers’ dollars I’* into goods which arc not scarce or needful of the stuff essential for war materials. To invent, discover, or im provise such goods is a major responsibility of business management. This means that management must whet a consumer want for those things by strong advertising and sales effort.”—Raymond Moley in Newsweek. 75 The Truth About the Central America Abaca Plantations By Samuel Fraser* President, Kling Plantation Company, Kiamba, Cot aba to THE history of the Central American abaci industry is a most interesting one. It started back in 1926 or thereabouts when Dr. Harry Edwards, formerly Director of the Bureau of Agriculture in the Philippines and fiber technologist of the Department of Agriculture in Washington, went to Culaman Plantation in South Mindanao and obtained several thousand rhizomes of different varieties of abaca plants. He disinfected and tried to sterilize them, boarded a freighter with them, and set out for Panama. After a long voyage in very rough seas, during which he had a hard time to protect his plants because they wefe stored on the deck, he succeeded in getting them ashore on a little island at the mouth of ‘‘Toro de Boca” bay, near the town of Almirante, Panama. There the United Fruit Company had a large banana and cacao plantation. The abaca plants were left on the island for about two years under quarantine. The island suffered from drought but everything possible was done to save them. The surviving plants were removed to the mainland and put into seed beds. From these beds, after several years, 2,000 acres of the different varieties, including Tangongon, Maguindanao, much Bongolanon, and Liboton, and one species from a northern province which had been growing at Culaman Plantation, . though not very successfully, were planted. An attempt was made to develop a decorticating machine which would be an improvement on the Krupps machine, using the knives on revolving cylinders. They tried to develop this machine by using tremendous water pressure to wash the fiber away from the pulp. It proved a failure because they could not keep the machine running, but it did for a while produce a superior fiber. These ex periments were continued for several years without success. Hagotan machines were also imported from the Philip pines, but these proved useless because of the lack of the necessary skilled labor; it did not seem that the laborers there were adapted to that skill or cared to learn it. So the experiment was given up after a few months because the production was too small and the cost too high. This was the condition of affairs when war broke out, World War II. •t’he United States then arranged to plant about 28,000 A acres, using the plants on the 2,000 acreswhich had already been developed, for seed. The plants had passed the mature stage and were beginning to deteriorate because they had not been harvested. In Panama, near Almirante, about 6,000 acres were planted. In Port Lemon, Costa Rica, just over the rriountains, 11,000 acres all together, in two big plantations, were planted. Then in Honduras about 5,000 acres and in Gua temala around 6,000 acres. This made a total of approxi mately 28,000 acres. All of this was done through the province of the Reconstruction Finance Corporation of the United States Government on a cost-plus basis, plus •Mr. Samuel Fraser, of Davao and Cotabato, who has been engaged in the abacA industry in the Philippines for many years both as a producer as well as a buyer (General Manager for the Philippines of the Columbian Rope Company) was fortunately absent from the country during the war and was therefore able to represent the U. S. Reconstruction Finance Corporation in the development of the abacA projects in Central America. He 6pent some 18 months on the job. begin ning in late 1942. He saw the fiber planted from the original 2.000 acres (mentioned in his article) which was used for seed in all the four countries where the develop ment was undertaken. He left in April, May, 1944, but returned to make a general survey of all the projects late in 1948. He then also visited a project in Ecuador where they were planting some 300 acres in the foothills of the Andes at that time. Since then he has kept himself informed of the production in Central America and he believes that he is "posted on what is taking place there and is pretty much upan overhead and a charge for the use of the equipment, railroads, materials, etc., of a large company. The company then bought decorticating machines which were built mostly by the Sheridan Machine Company in eastern Pennsylvania, patterned after the Krupps machine, and these were installed. Most of the species of abaca planted was Bongolanon, which is a very good species indeed but not the best here for the production of fiber,—the Tangongon is considered the best in Davao per weight of stalk and production per hectare. The Bongolanon did produce very well and was easily adapted to the different countries in which it was planted. But many mistakes were made in planting this abaca. It was planted, a great deal of it, on old banana land, some of which had been occupied by squatters and farmers, who had grown corn, so that the land was certainly not too fertile for abaca, had been partly worn out by long years of banana cultivation, then had rtverted to jungle, anywhere from 10 to 20 years, or more in some cases. The abaca plants were put 13 feet or more apart, which was too wide and contrary to the advice of men who had had experience in the Philippines. The supervisors did not take care of the plants, allowed a lot of weeds, grasses, •and bushes to grow up. They did not have enough labor or large enough appropriations to take care of the fields and to clean them thoroughly, so that the plants were delayed from one to two years in coming into normal pro duction. The plants did not thrive too well in many places. At first, they might in some places, but then they deterior ated; so fertilizer was applied, but this did not help much, possibly not enough was used. They still did not keep the fields clean, the grasses cut, and the fields weeded, so these plants grew up like Topsy. As discovered later, the pro duction was seriously affected by this neglect while the plants were developing into maturity. The production has never been any more than 50% of what it would have been in the Philippines, planted under similar conditions, even if not on virgin soil. Panama.—The climate in Panama is ideal for abaca. There is no place in the Philippines, or perhaps in the world, where the climate is more suitable to the produc tion of abaca from the viewpoint of the richness of the soil and the regularity of rainfall, temperature, and humid ity. It is accessible by railroad to a wonderful dock at Almirante. The whole situation there is ideal for the pro duction of abaca, but it has never proved out because of the improper care given the plants. It is now reportedpractically confirmed that the abaca plantations there are going out of production for the United States Govern ment and that the land may be put back into bananas again because the two diseases which destroyed the banana plantations there many years ago, the “Sigatoka”, which is a fungus growth on the leaves, and the “Panama Disease”, which is caused by a virus in the soil, have been practically overcome. The “Sigatoka” has been whipped completely, and we understand that, by flooding and building in new silt, they have been able practically to control the “Panama Disease”. They are now cutting down the abaca slowly and the plantations will eventually go out of existence. Costa Rica— In Costa Rica, near Port Lemon, two big plantations were planted, the Mt. Hope and the Monte Verde. They are accessible to each other by a railroad. The plants used there never thrived. The soil in Monte 76 Verde is too heavy and is partly worn out, the water-table is too high, there is no control over the floods, and the rainfall is too heavy in certain seasons of the year. In addition, the plants were neglected, planted too far apart, and they were not kept clean, as explained before. The production has been very low. With regard to the Mt. Hope plantation, hae again the seedlings were planted in fairly poor soil that, ^nerally speaking, had been for many years producing bananas or with corn squatters and other poor farmers around, this naturally depleting the richness of the soil. Here again, the water-table is too high, the place is not drained well enough, and production is very low indeed. Hon duras:—In Honduras, they planted the abaca on old banana land that had been deserted'many years before. The soil is not too rich and the place suffers from drought every two or three years, which retards the growth of the plants. There is neither sufficient nor regular enough rainfall to be conducive to the best abaca production. Here again the project has been a failure as production of abaca is judged in the Philippines. Guatemala.—In Guatemala there is more rainfall and the land is a little better. But there again, at times they have too much rain, and at other times drought, so that the necessary regularity of moisture is not sustained. The soil there had also been occupied by corn squatters and other farmers for many years after the banana cultiva tion had been given up. And, of course, this land had been partly worn out by the banana cultivation. there are about 25,000 acres left in abacd in the whole of Central America operated by the Reconstruction Finance Corporation. The production there last year was not over 25,000,000 lbs., which is a very low figure, per acre, for the age of the plantings. Here in the Philippines the pro duction is supposed to come into its prime in from 6 to 10 years, if planted on virgin soil. Production in Central America, in all the plantations there, has been steadily declining. Much of this retardation, of course, is due to neglect, insufficient fertilizer, poor cleaning, and over stripping. It is expected that a great deal more of these plantings will be eliminated in the not too distant future. Now comes the idea of planting about 25,000 or 30,000 acres more down there as another war-emergency measure and so as to have sources of supply in the Western Hemis phere. We hear that this is to be planted mostly in Guate mala. If so, the abaca would probably be planted on old banana land, and might prove another failure. To prevent this, the abaca plants must be put closer together, from 9 to 9-1/2 feet, tremendous quantities of fertilizer must -be used, the plants must be kept clean until they reach maturity, and after that the stripping must be done right—only when the plants mature. There can not be such pruning or butchering harvests as destroy the young plants. It is, however, doubtful that the climate is wholly suitable for abaca in Guatemala, as the rainfall is-not suffi ciently evenly distributed. r>Y the process of decortication—the system which is ■^used to extract fiber in Central America—around 4% per weight of stalk is obtained in fiber, whereas, by the spindle machines in Davao, we get from 2% to 2-1/2%, and by hand-cleaning, 1-1/2% to 2%, so the failure on a good production in Central America is more serious. Produc tion of abaca in Central America is probably not one-half, possibly only one-third, of what it would be here for the same age of plant on virgin soil. The cost of production of the fiber in Central America has from the beginning been spectacularly high due to the fact that the production has been abnormally low, the over head exorbitant, and labor high. The whole host of doing the job on a grand scale has been considerably more, prob ably at least three times more, than it would have cost to produce the fiber in the Philippines on the same acreage and on virgin soil. The cost of production is high due to the fact that the United States Government, through the Reconstruction Finance Corporation, paid a tremendous amount for the use of equipment, railroads, etc., and for overhead. In other places there is a fixed charge, expensesplus, which raises the price of the fiber beyond competition in an open market and in normal times would necessitate a subsidy. There will be no improvement in this situation even in the new plantings. The production will still be low, and from the profit viewpoint it will again be a complete failure. The only justification for these plantings in Central America under present conditions is to establish a source for abacfi, as a strategic material, in the Western Hemis phere in case the Philippines is cut off in another war. It is a war-emergency measure, pure and simple. It is very doubtful that any of the countries in Cen tral America would later be interested in taking over these abaca plantations. The plantations would have to be operated on a tenant basis, in much the same way the Japanese followed here in Davao, and it would take many, many years to train the necessary skilled labor to grow, strip, and handle the abaca. It looks hopeless. Most funda mental of all is the fact that the only place in all of Central America that the writer saw, which is really fitted for the production of abaci, is Panama. That area is ideal from every viewpoint, as mentioned previously. The total investment must be easily $35,000,000. Of the whole lay-out of 25,000 acres, 3,000 acres have been abandoned, and we understand a lot more of the original plantings will be abandoned and all those in Panama will be destroyed. No doubt the Government has written this off as a cost of war. No money has even been made on this fiber toward depreciating the cost of the machinery or toward amortizing the debt. In fact, there has not been one single year yet during which enough fiber was produced for the New York market to meet the current expenses for that year, even excluding depreciation and interest on the investment. From the viewpoint of profit, the pro ject in Central America was a complete failure. But from the viewpoint of a war emergency, supplies for the Western Hemisphere as needed, regardless of cost, it was a necessity. .However, if the plantations had been looked after pro perly, they would have produced much more fiber than they have. 't'here is no question but that the Central American A fiber is just as strong as the Philippine fiber. Many of the same species grow in Central America. The decor ticated fiber there is much the same as the decorticated fiber in the Philippines. Such fiber is of lower grade than the regular and best hand-cleaned and spindle-machinecleaned fiber. The tensile strength runs anywhere from 84% to 94%. Most factories will use decorticated fiber, either from the Philippines or from Central America, only in a mixture. It is true that both fibers meet the tensilestrength of the Navy specifications, but those specifications are not high. In color the decorticated fiber from Central America is as good as the decorticated fiber from the Philip pines, possibly somewhat better due to the process used in the drying and the treatment of it, which are far more expensive than any processes used here. It is, however, an inferior fiber, as stated above, compared to the average Philippine fiber of the average good grades, and it costs considerably more to produce and can never compete with the spindle- or good hand-cleaned fiber. It will make a rope, a strong rope, but not such a good rope as will the Philippine fiber cleaned by hand or the spindle-machine. Doubtless the cost of production of decorticated fiber in the Philippines comes to less than one-half the cost of production under the same process in Central America. 77 Based on the production in the Philippines, the decorticat ing process usually extracts 4% of the weight of the stalk— the same in Central America—but the production is prob ably considerably less, per acre, than in the Philippines. npHE labor in Central America is not nearly so efficient as that in the Philippines, which is about the best in the world, although wages are higher than the wages here. Labor is not so efficient in Panama either; it is com posed of Jamaicans, a very inefficient labor, hard to handle and irresponsible. The project is having great difficulty in keeping enough labor on the job in Panama. In Costa Rica, there is a mixture of both Jamaican and colored and native labor, which is mostly Indian with some Spanish. It is not nearly so efficient, nor so well nourished, nor so strong or willing as labor in the Philip pines. A great deal of socialism and communism has infil trated into labor in Costa Rica. In Honduras the same condition prevails. They have a better class of labor there, men of the mestizo class, but it, too, is less efficient than labor in the Philippines. In Guatemala there is another mixture,—mestizo Indians, also some West Indies Negroes, etc. This is not very good labor either. It is dissatisfied, although wages are very high. Labor there is rife with communism and socialism. In fact, Guatemala is quite a communistic country today. The project there finds that its greatest production problem is labor. There is no doubt that labor on any plantation in Central America, especially in Guatemala and Panama, is not nearly so efficient as that in the Philippines. Hon duras has probably the most efficient labor of all of them. Here in the Philippines we have thousands and thou sands of small farmers, men skilled in the hemp industry that is a development of the last one hundred years, the skills being handed down from one generation to the next. This has created an aptitude not easy to reproduce in any new country where abaca is planted. There is no big plantation or big factory in the world that can compete with the small farmers who are producing the bulk of the hemp in the Philippines because they have other additional ways of gaining their living. They have their own veget ables, corn, meat, carabaos, chickens. The small farmers help each other in their work, on a sort of a communal basis, with no overhead, no amortization charges, no in terest to pay, no big taxes. The small Philippine farmer strips the fiber only when he needs cash. He raises it as a cash crop. That is the general rule in the northern prov inces, though not so universal in Davao, where many farmers make a living from hemp alone. Yet, the cost of production is very low indeed. In one hundred years the Filipinos have become skilled in the planting, growing, stripping, and development of abaca. We cannot see how Central America can expect to compete with the Philippines under present conditions. There is one possible hope for Central America,—that would be to get virgin soil and to use the same efficient methods as those employed in the Philippines. Perhaps, in a few years, the natives could be trained to become skilfull in the production of abaca. But even then, we think the cost of production would be much over that in the Philippines, although the cost of production in the Philippines, too, is increasing as the price of labor goes up. To train Central American labor adequately would call for the immigration of a lot of Japanese or Filipinos to show the people how to raise the plant and how to strip it. But even so, there is no getting around the fact that the areas suitable to abaca in Central America are fairly limited, the climate is either too wet or too dry, or there is a lack of virgin soil. In conclusion, we may pretty safely say that for the next few years, at least, we see no place in sight that can compete with the Philippines in the production of abaca to any extent worth worrying about. It looks like Central American abaca will go the way of the dodo bird after the United States Government stops subsidizing it. The Philippine American Chamber of Commerce, Inc. Annual Report for 1950 Although the 1950 Annual Report of the President of the Philippine-American Chamber of Commerce, Inc (New York) was sent out in mimeographed form to the members of the American Chamber of Commerce of the Philippines, we print the Report in this issue of the Journal as our publication is read by many non-members of the Chamber who will no doubt find it most valuable. It deserves the widest possible reading here. Mr. Bernardo Ronquillo, Business Editor of the Manila Daily Bulletin, gave this Annual Report high praise in his column last month, saying: “Those who have read the Annual Report of the Philippine-Amer ican Chamber of Commerce in New York or read an outline of it as reported in this paper recently, agree that the Chamber has suggested a more realistic program of pulling the Philippines out of its economic troubles than that offered by the Bell Mission “The views of the New York Chamber on most Philippine econ omic issues, including taxation and the extent and form of United States aid to the Philippines, reflected, on the whole, the great portion of local business opinion. . THE impact of events in the year 1950 on the Republic of the Philip pines and on its people can not yet, in view of the uncertain world situation facing us today, be fully appraised. It was a critical year for everyone with business interests in .the Philippines, not only because of the effects which these events immediately produced, but perhaps more importantly because of the cumulative effects that will become increasingly apparent in the ensuing years, unless there will be a constructive re-examination of some of the measures which during 1950 were either adopted or proposed for adoption. For the Chamber, 1950 was an unusually active year, and every effort was made through its regular weekly bulletins to keep the member ship fully and currently informed of all important developments. It does not seem desirable, therefore, to include in this report an exhaustive review of day to day happenings during the course of the year, but it would seem appropriate to summarize the position that the Chamber has taken with respect to the more important issues and to dwell briefly on some of the aspects of these issues. WTith the deterioration of the economic and financial situation, which became apparent in 1949, it was recognized by everyone including the Philippine Government that quick and effective steps had to be taken to reverse a trend which had progressed to a dangerous stage. The first move in that direction was the imposition of import and ex change controls late in the year. This Chamber recommended in De cember of the same year that a small, top-level, non-political, permanent joint Philippine-American economic mission be established to study, recommend, and follow-through on further measures for the attain ment of a sound and well balanced economy in the Philippines. This suggestion, along with similar suggestions emanating from other groups, was well received in principle, and after an exchange of views between the United States and the Philippine Governments, agreement was 78 eventually reached for the appointment of an American Mission to make a study and to submit recommendations, but it was not contem plated that the Mission should assume the responsibility for carrying out its recommendations. This Mission, headed by Mr. Daniel W. Bell, arrived in the Philippines early in July for a stay of two months. It was well received and supported not only by the Philippine Govern ment but also by the business community. A conscientious and ex haustive study of conditions was made and a detailed Report was sub mitted to President Truman in October. The analysis of the problems requiring solution and of the under lying causes behind these problems was comprehensive and sound. The recommendations for their solution were on the whole construc tive but were based too completely on purely economic considerations, with not enough consideration given to the human and political factors which would determine the speed and effectiveness with which the benefits of such a program could be realized. There was not enough emphasis on dealing with first things first, such as the speedy achieve ment of internal law and order and the realistic immediate solution of budgetary and related fiscal problems. No comprehensive economic and social reform program is stronger that a realistic appraisal of its chance of success. The attainment of long-range and permanent econ omic and social reforms just cannot be imposed; they must be desired, supported, and made effective by the people of the Philippines and their leaders. To mention only a few of the points touched on by the Mission, the Chamber agrees that the income of most Filipino labor is below reasonable. subsistence standards, that the system of land tenure in many parts of the Islands is archaic, that better housing for the lower income groups in Manila is desirable, in short, that the stand ard of living of the people at large should be raised. But to start the wheels moving in the right direction, and immediately, more is needed than merely a sound long-range program. The unsatisfactory law and order conditions in the Philippines were extensively commented on in the Report of the Economic Survey Mission, and emphasis was placed on remedying these conditions by means of the social reforms recommended. However, in the face of the critical world developments of the past six months, and particularly in view of the dangers threatening all of Asia, it could be disastrous to temporize and wait for social reforms to supply the remedy. Without internal law and order, no effective defense can be put up against aggression from outside. Also, without the early establishment of internal security the long-range program recommended by the Mission will be seriously handicapped right from the beginning. As it is, no concrete steps have as yet been taken to initiate the long-range program, and these cannot in any case be taken until funds arc made available by the Congress. The present internal security situation, which instead of improving during the past year has if anything deteriorated, is an outgrowth of the period of occupation by Japan and of the ensuing hostilities to liberate the Philippines from Japan. The Philippines entered that critical period under American sovereignty, and the United States has an obligation to assist in remedying a situation which had its origin before the establishment of the Republic of the Philippines, not only because the Philippines were American territory but more particularly because the Philippine people maintained their loyalty to the United States throughout the war in the Pacific. While other factors, including agitation fomented from outside the country, also contributed to the failure of the Philippine Government thus far to make much headway in the restoration of internal law and order, an important if not the most important factor was the lack of funds with which to pursue an effective campaign in this direction. The United States Government has publicly announced its undertaking to help defend the Philippines against aggression from outside, and since the first step toward pro viding reasonable security against outside aggression is the restoration of internal security, the United States Government should relieve the Philippine budget from the burden of accomplishing this by means of financial grants and should at the same time offer such military advice as may be requested. Such a defense program, financed to the extent necessary by the United States Government, would not only promote the quick achievement of internal and external security, but would in itself provide a remedy for many of the other immediate ills confronting the Philippine people, including the necessity of otherwise imposing more new taxes than the present economy can stand.* Your Board of Directors feels that the granting of adequate defense aid should have the first priority in any aid program. The Philippine Legislature is presently in session and struggling J- with the enactment of tax legislation designed to close the gap between revenue and expenditures until the long-range reform program mentioned above begins to show results, when it would be hoped that taxes could again be reduced. The obligation to raise taxes to a point where the budget would be balanced was imposed as a prerequisite for the granting of further United States financial aid. The means to be employed were suggested in the Report of the Economic Survey Mission, and some of these suggestions are perhaps the most contro versial portion of the Report. To balance the budget immediately would involve just about doubling taxes in one bite, and this is not something that can realistically be attained without imposing too severe a shock on an economy that is already weak, and without perpetuating if not aggravating the evasion of taxes by so many who should pay taxes. In regard to this latter point, the recommendations made by the Mission which look toward the overhauling of the tax-collection machinery are of course sound. It is essential that a larger percentage of taxes due under existing or under any proposed new ta\ laws be collected, thus remedying a situa tion where relatively few tax payers contribute an inequitable por tion of the tax revenue, while so many others who should pay taxes make no contribution or at best a smaller contribution than effective enforcement of the tax laws would require. Steps to improve the tax collection machinery should be taken immediately; they require no aid from the United States other than perhaps some technical advice. Assuming such steps are taken, the results will be progressive rather than immediate and the problem of increasing revenues must still be met without delay. However, not even in a country like the United States, with its flourishing and stable economy, would anyone have the courage to propose that government revenue from taxation should be doubled in one step. Even at the present time, with the outlook that government spending for defense purposes will mount to almost astronomical figures, and at a time when in order to absorb excess income the need for higher taxes is generally recognized, no step as drastic as that has been considered by either the Administration or by the Congress. Some of the methods advocated by the Economic Survey Mission to accomplish the immediate doubling of government revenue, and presently under consideration by the Administration and the Legis lature of the Philippines, have the apparent advantage that as to pro cedure they can be easily collected without any extensive overhauling of the tax-collection machinery, but the very ease with which heavy import or exchange taxes could be collected in itself creates the disad vantage that emphasis will be diverted from the urgent problem of establishing more effective tax-collection machinery. A 25% tax, whether imposed on outward remittances as such or on imports, would foster inflation, which in turn would operate against attainment of the benefits visualized in the long-range program. If levied on all sales of foreign exchange instead of selectively on imports, it would impose the greatest hardships on those tax-payers who have the best record for actually paying their full taxes. In addition, it would be a thinly dis posed instead of a straightforward devaluation of the peso, and no one is convinced that devaluation in any form is desirable. Your Board has protested against the proposed 25% tax on sales of foreign exchange, and many other trade and civic groups interested in the Philippines, both in the United States and in Manila, have lodged similar protests. The December session of the Philippine Legislature apparently shared the views of this Chamber, namely, that it is not rea listic to double taxes in one step and, further, that a 25% tax on sales of foreign exchange is undesirable. The Legislature has now reconvened for further consideration of the taxation problem. It is hoped that a realistic approach will be taken in the drafting of such tax legislation as will produce as much additional revenue as the economy at this stage can reasonably supply, but it is too early to predict what measures will be finally enacted. The above views may be countered by the contention that without immediately doubling tax revenue, the Philippine Government cannot balance its budget. A partial solution has however been suggested in the remarks on the law and order situation. Some reasonable increase in tax revenues is endorsed by the Chamber, and if this will be provided .by the Philippine Legislature along with more effective collection of taxes due, and if there should then still be a gap, the United States Government could well consider using enough of the contemplated financial aid to close it. 'T'he Chamber has consistently taken the position that the Congress -*■ should appropriate sufficient additional funds to cany out the intent of the Rehabilitation Act of 1946, and it is disappointing that the Economic Survey Mission has recommended against this. While it is not claimed that additional funds for war-damage compensation are necessarily the most effective means of giving the Philippine econ omy an immediate shot in the arm, the granting of such funds would certainly further improve the foreign-exchange position, would assist in rebuilding the productive capacity of the country, and would dis charge an obligation which our Government has assumed. The Reha bilitation Act of 1946 visualized war-damage compensation to the extent of 75% of the value of approved claims, but the funds appro priated for this purpose were sufficient to compensate for only 52-1.2% of approved claims. It seems to us that before undertaking new obliga tions our Government should first demonstrate that obligations pre viously assumed can be expected to be discharged. It would be beyond the scope of this report to deal exhaustively with the two most acute and most disturbing handicaps with which business has had to contend during 1950, namely, import controls and exchange controls. It is freely admitted that controls of this nature were in some degree necessary for the purpose of conserving the Philip pine Government’s rapidly dwindling reserves of foreign exchange, but the inconveniences and difficulties, which at best would have to be expected from such controls, were accentuated by the manner in which especially import controls have been administered and by the import control legislation itself, which in part is discriminatory against those who are best fitted to render service to the Philippine public. Black markets have flourished; import licenses, not obtainable by legitimate importers, have been peddled to the highest bidders; the result of all this has been the creation of artificial scarcities and in many cases prohibitively high retail prices to the consumer. 79 In making the above comment, it should be emphasized at the outset that no one in this Chamber has any objection to new importers participating more extensively in the import trade, whether they are Philippine or other nationals, but it is submitted that this participation cannot be successfully attained by discriminatory legislation which only places a premium on the evasion of the rules with no compensating benefits to the consuming public. Nothing has undermined confidence in the economic possibilities of the Philippines more than the approach that has been taken toward import controls. For the further economic development of the nation, additional investment capital is needed, regardless of whether this is local or foreign capital, but until there is a further growth of local capital, much of it must still come from abroad if there is to be further economic growth. Private capital from abroad and the existence within the Philippines of American and other foreign industrial or commercial firms need not be feared by our Philippine friends. Legitimate private enterprise makes no unreasonable demands for protection or special privilege; it does not attempt to exploit; and and it is usually prepared to assume normal business hazards for its own account so long as it is fairly dealt with and not discriminated against. While admittedly onerous, exchange controls have, after the first months of confusion subsided, been administered far more effectively than import controls. Our only comment might be that there has not always been as much coordination between exchange control and import control objectives, with a view toward providing reasonable flexibility, as may have been desirable. It is hoped that the approach toward import controls will be reexamined and that the Philippine Legislature will give serious thought to eliminating those provisions which have been discriminatory without achieving any offsetting benefits. It is further hoped that both import controls and exchange controls can be materially eased at an early date. Tn the Annual Report submitted for the year 1949 emphasis was ■^•placed on the necessity of restoring more cordial and friendly relations between the Philippines and the United States. It is gratifying to report that we sense the beginnings of some improvement in Philip pine-American relations. The Philippine Association, recently formed in Manila to bring about a better understanding between the two coun tries and their people, and counting among its members many members of this Chamber, has made a valuable contribution in this direction. This Association is sponsored by the Philippine Government and is fortunate to have as its President that distinguished Philippine leader, General Carlos P. Romulo. The Philippine Association, along with the American Chamber of Commerce in Manila and numerous other civic and trade organizations, has also accomplished a great deal toward establishing a better understanding between business interests and the Philippine Government. Reverting to the Aid Program referred to above, the organization of which is presently under consideration, it is hoped that in the choos ing of personnel by the United States Government, men with vision and tact will be selected, men who have enough understanding of local conditions to make a realistic appraisal of what is needed and of how that can best be done. This does not mean that we advocate the adop tion of a soft approach by either the Philippine Government or the American Government toward the problems needing solution; what we do advocate is a realistic and understanding approach, so that the problems will be dealt with on a negotiated rather than on an imposed basis, and yet without any sacrifice of effectiveness or speed. Regular monthly meetings of the Board of Directors were held throughout the year except in August. As urgent matters arose they were acted upon currently by the Executive Committee and ratified at the next Board meeting... . Several of the Officers and Directors of the Chamber made visits to the Philippines during the year, which were helpful in maintaining personal contact between the Chamber and the Manila business community as well as leading government officials. There were several changes in the composition of the Board. In January Mr. C. A. Richards, who so ably guided the Chamber as Pres ident from 1946 to 1949 inclusive, submitted his resignation as a Direc tor, since he expected to remain in Washington indefinitely with the United States Government. In recognition of his outstanding services to the Chamber he was elected an honorary life member at the meeting of the Board on January 18. Also in January, Mr. Clayton L. Seitz, Vice-President of the Amer ican International Underwriters Corporation, found it necessary to submit his resignation due to a change in residence, and Mr. Fred McCabe, Vice-President of the same firm, was elected by the Board to fill the unexpired term of Mr. Seitz. At the Board meeting of February 15, Mr. Joseph H. Foley of the Ansor Corporation, who previously served,on the Board for many years and who is well-known to all the members, was elected a Director to fill the vacancy created by the resignation of Mr. C. A. Richards. In June Mr. Fred McCabe resigned and at the Board Meeting of June 28 Mr. R. A. Kreulen, Vice-President of the American Interna tional Underwriters Corporation, was elected to the vacancy thus created. The membership of the Chamber on December 31, 1950, is as follows: Honorary.............................................. 2 Active.................................................... 75 Associate............................................... 44 Total............................................. 121 This represents a gain of two active members, and a loss of four associate members during the course of the year, resulting in a net loss of only two dues-paying members. The financial condition of the Chamber continues to be sound. Assets consisting of cash and U. S. Treasury Bonds on December 31, 1950, excluding dues already received for account of 1951, were ap proximately sufficient to meet 1951 estimated running expenses.... A duly audited financial statement, as of December 31, 1950, will be forwarded to you separately. Before closing, your Board of Directors wishes to record its in debtedness to the American Chamber of Commerce in Manila and to its President, Mr. Paul Wood, for the help and advice so freely rendered. This close cooperation with Manila has been of the greatest benefit to the Chamber. The thanks of the Board of Directors are also extended to the Secretary and his staff, to the several permanent committees, and to the entire membership for their loyal support during the entire year. FOR THE BOARD OF DIRECTORS E. F. KOCH President The Officers of the Philippine-American Chamber of Commerce, Inc. for 1951 are: J. W. Baker. President; H. A. Magnuson, Vice-President; Wm. C. Planz, Vice-President; W. E. Murray, Vice-President; F. M. Satterfield, Treasurer; and Col. John F. Daye. Secretary. . Recommendation re Japan By the American Chamber of Commerce in Japan THE American Chamber of Commerce in Japan, com posed of 141 United States firms doing business in Japan, desires to point out the importance of Japan and the Far East to the United States of America. In this connection, the American Chamber of Com merce in Japan recommends that the following points be kept foremost in the minds of all persons interested in United States foreign policy, the formation of United States foreign policy, and the security and well-being of the United States: 1. In Japan there is an industrial machine which not only must be retained for use by the Japanese as members of the free world, but which must not be allowed to fall under control of the Communist aggressors. 2. Elsewhere in Asia, there are vital strategic ma terials which, if available to the United States and its Allies, are of extreme value to the forces of democracy, and which, if controlled by the Communist forces, greatly increase their aggressive potential. 3. The United States has an abiding interest in Japan and the Far East. This interest dates back from when Commodore Perry first visited Japan in 1854, and has been clearly manifest following our war with Spain in 1898, when the United States assumed certain responsibilities with respect to the Philippines. In view of the foregoing, the American Chamber of Commerce in Japan recommends: 1. An immediate peace treaty with Japan which will return sovereignty to the Japanese. 2. Continued United States aid to Japan and a guar antee of the necessary raw materials vital to Japan’s continued industrial production. 3. The establishment of a Far East policy which will be of assistance in enabling countries in that region to preserve their security against Soviet Imperialism. 4. Establishment and implementation of a positive American foreign policy to insure good relations with those Far East countries which possess strategic raw ma terials needed by the United States. 5. United States encouragement of the free nations of the Far East to band together to provide their own security with the full support of the United Nations. The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source FEBRUARY 1—President Elpidio Quirino submits to the Com mission on Appointments the nomination of Chief Justice Manuel V. Moran as Ambassador to Spain. The President, on recommendation of Secretary of National Defense Ramon Magsaysay, orders the restoration of the writ of habeas corpus in most of the Visayan and Mindanao provinces. Feb. 2—On the eve of the return homeward of President Achmed Sukarno, President Quirino confers on him the rank and decorations of a Chief Commander of the Philippine Legion of Honor, the only other two recipients being General MacArthur and President Roosevelt on the latter of whom it was conferred posthumously. Feb. 3—President Sukarno and his party leave Manila for Java. Feb. 6—The Philippine Charity Sweepstakes Office submits to the President for his approval the respective allocations of a total of P741.580 representing the proceeds from the sale of sweepstake tickets; P418.680 has been set aside for distribution to 23 various charitable, health, civic, and welfare organizations, and the rest chiefly to pro vincial hospitals and puericulture centers. A total of around P200.000 was realized from the special sweepstakes conducted for the benefit of the Boy Scouts of the Philippines last year which will be set aside for the construction of a general headquarters in Manila. Feb. 7—The Cabinet approves Philippine participation in two economic conferences, one to be held in Pakistan and the other in Cey lon. The delegates to the ECAFE conference in Lahore will be headed by Secretary of Commerce and Industry Cornelio Balmaceda. Dele gates to the Colombo conference will be Philippine Central Bank economists L. Virata and A. Castillo. The latter meeting will consider future action on the “Colombo Plan”, drawn up last year, which en visages an economic development plan for South and Southeast Asia under the auspices of the British and Commonwealth Governments. The Philippines has been invited to join, but Under-Secretary of Foreign Affairs Felino Neri states that the Philippines is reserving a decision until it has been determined whether Philippine commitments under the Point Four program and the Quirino-Foster Agreement would be affected. Feb. 9—The President holds a conference with the members of the foreign relations committees of both the Senate and the House preparatory to his scheduled talks on the subject of the Japan peace treaty with Ambassadpr John Foster Dulles expected to arrive in Manila on the 11th. There was unanimous support of the President’s proposal to offer Manila as the seat of the peace conference, a preponderance of opinion in favor of pressing a demand for P8,000,000,000 in repara tions, a prevailing opinion against complete rearmament of Japan, and great concern over the future status of Formosa. Feb. 12—The President holds a two-hour conference with Am bassador Dulles, described by Malacanan as "extremely cordial”. A formal dinner is given in his honor in the evening. Feb. 14—The President, in an address before the students of the University of the Philippines, defends his suspension of the writ of habeas corpus, asking, “Who is going to deny that there is a revolution in this country today?” Feb. 16—The President designates Engineer Gil R. Mallare as acting Mayor of Baguio, vice Justice Luis P. Torres, resigned. The President issues Executive Order No. 413 fixing a retail ceiling price on local red or yellow com.' Feb. 17—The President in a conference with Cavite officials re iterates that dissidents who surrender their arms to the 'authorities need not be detained if there are no pending cases against them .in the courts. The President issues Administrative Order No. 139 transferring the Sugar Adjustment and Stabilization Fund from the National Trea sury to the Sugar Rehabilitation and Readjustment Commission, the Order being primarily intended to facilitate the settlement of an obliga tion of P100.000 incurred by the SRRC with PRATRA, now PRISCO. Feb. 20—The President at a Cabinet meeting instructs Secretary Magsaysay to dispose as rapidly as possible of all pending sedition and rebellion cases and to file charges against detainees immediately or release them if no charges can be lodged. He also calls on various members of the Cabinet to expedite the “land for the landless” program to allow of the rehabilitation of surrendering dissidents. He instructs the Secretary of Economic Administration, Salvador Araneta, to or ganize a board of directors for the Manila Gas Corporation. Feb. 21—The President issues Executive Order No. 415 reorganiz ing the Government Quarters Committee to be composed of the Secre tary of Public Works and Communications, the Commissioner of the Budget, and the Auditor General. Feb. 22—The Department of Foreign Affairs announces that an agreement was signed with the FAO (Far Eastern Regional Office) of the ECAFE at Bangkok on February 8 which lays down the condi tions under which the FAO will provide, and the Philippine Govern ment will accept, technical assistance. Malacanan announces the release of P6,000,000 from the Motor Vehicle Fund for the repair of roads in various parts of the country. Davao Province (see editorial in this issue) will receive P81.669 of this amount, and Davao City, P55.398. Feb. 23—The President orders an immediate inquiry by Secretary of Justice Jose Bengzon and Secretary of National Defense Magsaysay into news reports that a member of the Deportation Board had accepted money, amounting to P100,000, from the family of Co Pak, Chinese millionaire, recently deported to Formosa. Feb. 24—The President issues Executive Order No. 417 fixing ceiling prices on roasted ground coffee. Feb. 26—The President confers with Ambassador Myron M. Cowen, Vincent Checchi of the ECA, and former Speaker Yulo on the urgency of interim aid to carry out the completion of the fertilizer plant at the Maria Cristina Falls, the Ambuklao hydro-electric project, and slum clearance in Manila. It was understood that the American repre sentatives maintained that Washington was desirous to see the enact ment of the minimum wage bill, the exchange tax, and corporate tax measures before it extended the aid. Feb. 27—The President confers with Ambassador Cowen, Maj. Gen. Leland Stanford Hobbs, JUSMAG chief, and Brig. Gen. Calixto Duque, acting AFP chief, on the need of additional arms from the United States to equip the 10 new battalion combat teams being or ganized for the purpose of the restoration of peace and order in the country. Following the petition of book dealers and another petition of the Fulbright Scholars Association, and the recommendation of Under secretary of Education Cecilio Putong, the Cabinet decides to classify educational and technical books as essential commodities and to transfer the licensing for the importation from the ICA to the PRISCO. It is estimated that 85% of the books used in the elementary and secondary schools and 95% of those used in colleges and universities are imported from the United States. The Cabinet hears a report of Budget Commissioner Pio Joven on the cuts made by Congress in the appropriations of various depart ments and the President speaks of the need to restore them if the Govern ment is to operate effectively. The President after going over a list of large taxpayers, commends Gregorio Araneta 8s Company, the Andres Soriano companies, Menzi & Company, and Ramon Roces for paying large income taxes to the Government and states he will authorize publication of the names of tax evaders. Banking and Finance By C. R. Hutchison Manager, Port Area Branch, National City Bank of New York COMPARATIVE statements of condition of the Central Bank: As of Dec. 31 As of Nov. 29 As of Dec. 31 As of Jan. 31 ASSETS 1949 1950 1950 1951 (.In thousands of Pesos) International Reserve. . . Contribution to Interna P460.689 P580.504 P569.982 P548.933 tional Monetary Fund. Account to Secure Coin 30,000 30,000 30,000 30,000 age ................................... 113,306 113,306 113,306 113,306 Loans and Advances........ 77,047 41,647 48,536 56,791 Domestic Securities......... Trust Account—Secu 92,197 155,240 157,580 160,821 rities Stabilization Fund — 6,848 6,848 6,848 Other Assets....................... 20,390 43,472 55,269 47,003 LIABILITIES ?Z93,629 P971.017 P981.522 P963.702 Currency—Notes.............. P555.576 P602.402 P643.858 P644.563 Coins............... 74,384 85,735 89,167 90,529 Demand Deposits—Pesos Securities Stabilization 117,682 245,149 208,040 183,976 Fund................................. Due to International 2,000 6,848 6,848 6,848 Monetary Fund........... Due to International Bank for Reconstruc tion and Develop 22,498 498 498 496 ment................................. 2,389 2,388 2,388 2,388 81 5 Other Liabilities........... 2,636 8,763 10,813 13,793 Capital............................. 10,000 10,000 10,000 10,000 Undivided Profits... . 6,464 7,618 8,293 9,493 Surplus............................ — 1,616 1,616 1,616 P793.629 P_971,017 P981.522 P963.702 00 085 013 105 50 0051 CONTINGENT ACCOUNT Forward Exchange Sold. P 6,460 — — — The International Reserves continued to decline in January and at the month-end were ?47,000,000 lower than the high point reached on October 31, 1950 (P596,000,000). The decline from December 31 was P21,000,000. Loans and Advances increased P8,000,000, being the difference between a loan of P20,000,000 to the Philippine National Bank and a decrease of the Treasury’s overdraft by Pll,700,000. Other assets decreased by P8,000,000. This represents decreases in accrued interest of P 1,000,000, in Exchange Items for Clearing of P3,000,000, and in Due from Foreign Banks—Japan of P4,000,000. Demand Deposits of banks decreased by P27,000,000 during the month which, added to an increase of P3,000,000 in de posits of government entities, resulted in a total decline of P24,000,000 in this category. Money continues easy with numerous inquiries for time money. A fairly large volume of import licenses issued during the past two months should have some effect eventually in arresting the continued rising trend in prices, which meanwhile, remains unchecked. Collections are reported to be good. On January 31, 1951, the Central Bank announced the public sale of Treasury bonds amounting to Pl,800,000, the proceeds *of which are to be used to meet current expenses of the Government. The issue which matures on February 7, 1952, was subscribed by local banks at a discount of 2%. This is the third issue of Treasury bills or government certificates of indebtedness offered to the public. The first was in the amount of Pl,000,000 for use by the National Planning Commission and the second for P14,000,000 for general government expenditures. It is reported that the Philippine National Bank will open in the next few months eight more provincial branches. 25 12 08 90 05 455 085 205 345 038 10 Baguio Gold Mining Balatok Mining Com pany .......................... 0027 Batong Buhay Gold Mines........................ 50 Bcnguet Consolidated. 012 Coco Grove, Inc......... 0078 Consolidated Mines, Inc.............................. Hixbar Gold Mining Co............................... Itogon Mining Co....... I. X. L. Mining Com pany .......................... Lepanto Consolidated. Masbate Consolidated. Mindanao Mother Lode.......................... Misamis Chromite Co. Inc.............................. Paracale Gumaus San Mauricio Mining Co............................... Surigao Consolidated.. Suyoc Consolidated . . United Paracale Min04 78 08 042 025 17 016 205 01 06 14 12 01 045 1950-51 Range High Low 78.00 105 0875 80 2 20 5 0035 00 085 0035 50 047 0125 0115 13.00 10.00 60.00 90.00 55.00 220.00 125.00 27.00 27.00 1.00 !.8O 10 14 101 150 .35 2.00 085 085 00 100 00 135 00 00 75 30 27 50 25 00 0975 Up .0125 2 80 Up . 70 5 0125 Up .001 594,000 ,400 800,000 28,580 806,000 2,140,000 25 12 Up Up .025 .0175 399,750 981,000 045 80 038 031 70 03 045 73 038 Up Up Up .015 .04 .008 43 38 38 Off 877,500 012 075 .085 011 012 Up .001 80,000 0625 19 255 028 .065 COMMERCIAL SHARES High Lov 13.00 13.00 80.00 80.00 075 205 26 03 .085 Up Up Off Up Up .015 .005 .015 .006 .02 60,000 280,000 Close Change Total Sales Up 8.00 169 13.00 60.00b 80.00 Up 5.00 100 Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas & Company January 27 to February 23, 1951 1075 026 40 38 00 100 00 105 20 25 50 94 00 00 100 00 WITH inflationary sentiment providing the main sti mulus, the market opened the period under review on a strong note. However, during the second week of February, t;he market encountered too much stock for sale at the advance, and this halted the forward movement. Tax selling, in one form or another, was responsible for the increase in offerings. Investors with income taxes to pay later in the year are inclined to dispose of some stock now on any strength, to raise the necessary funds for these future payments, rather than to run the risk of possibly having to sell later on at lower prices. Another type of selling of a tax nature has come from those who believe that Congress must eventually pass additional tax measures as the best method of controlling inflationary pressures. Latterly the market has turned quiet as neither buyers nor sellers show much disposition to operate pending clarifi cation of economic and monetary factors. 16 00 16 8 50 6 00 Bank of the Philippine Islands..................... 114.00 109.00 Binalbagan - Isabela Sugar......................... Cent. Azucarera de Sara Ajuy................ Cent. Azucarera de Cent. Azucarera de la Cariota...................... 172.00 170.00 Cent. Azu. del Pilar... 100.00 100.00 Cent. Azu. de Tarlac . ‘— — China Banking CorFilipinas Cia. de ScInsular Life Assurance Co............................... Manila Broadcasting Co.............................. Manila Wine Mer chants, Inc............... Margman flg Co. Inc. Common................... Mayon Metal.............. Mayon Metal 7% Pre ferred ........................ Meralco 6-1/2%......... Metropolitan InsurPampanga Bus Co. .. People Bank & Trust Co............................... Phil. Guaranty Co., Philippine Oil DevelopPhilippine Racing Club, Inc................. San Miguel Brewery Common................... San Miguel Brewery 7% Pfd..................... San Miguel Brewery 8% Pfd..................... Universal Insurance tk Indemnity................ Williams Equipment Co. Common.......... 170.00 100.00 31.00b 225.00b 26.50b 5.50b .35 .35 .35 3.80b .085 .085 .085 .75 .60 27.50 32.50 94.00 27 50 .40a .085 .085 142.00b .75 56.00b 27.50 029 32 31 00 94 00 105.00 103 00 Up 1.00 .029 Up .003 31.00 103.00 6.50b Off 3.00 OVER THE COUNTER High Low Close Central Luzon Milling Co.......................... Pan Philippines Corp. Cl. "A”................. Realty Investment Common.................... Realty Investment Mang T Stk.............. The Sugar News Co..................................... The Sugar News Press............................... Victorias Milling Co.................................... 0.54545 0.01 7.50 450.00 50.00 50.00 185.00 0.54545 0.01 7.50 450.00 50.00 50.00 180.00 0.54545 .01 7.50 450.00 50.00 50.00 185.00 325 32 45,000 105,000 200 4,000 1,140 217,390 20,500 23,820 20 725 Total Sales 880 138,000 1,750 4 142 1930-31 Range High Low MINING SHARES High Low Close Change Total Sales 126.83 61.71 .26 .09 0.35 .012 .68 .26 M.S.E. Mining Shares Acoje Mining ComAntamok Goldfields. . Atok Big Wedge Mining, Co............. 113.97 103.74 .25 .21 .035 .03 .39 .32 .37 Up .04 12,023,291 974,800 145,000 494,000 Credit By C. W. Muilenburg Manager, Credit and Collection Department International Harvester Company of Philippines FIRMS dealing in transportation equipment and allied lines such as gasoline, tires, batteries, parts, etc., are continuing to find collections difficult and slow. The causes are easily identified. Registration fees for the first half year were due and payable in cash by the end of Feb ruary. With bus and truck operations curtailed by short ages of tires, parts, and batteries, operators who each Feb82 ruary and August have had difficulty in raising the cash outlay for registration of their vehicles, have had a much more difficult time this past month. Consequently, current obligations have not been met promptly and accounts payable have been left to accumulate, with all possible revenue being channelled into the Motor Vehicle Registra tion Offices. Prices are still on the increase for many commodities and an immediate boost can be expected if an exchange tax is put in effect. Bank collections continue good on loans. High copra prices are having a noticeable effect on collections in copra producing areas, with even the surrounding areas being favorably affected. Government financing institutions are not reopening real estate loans and the trend continues away from this type of security to more emphasis on dollar-producing and dollar-saving activities by channelling loans to industry and agriculture. There is some interest shown in developing the citrus and the inland fishing industries, and some collections from rice and sugar loans are being diverted to abacd pro duction. With government financing institutions drawing away from real estate loans, private banks and building and loan associations are moving in. Terms have been somewhat shorter and collections have been quite good. Electric Power Production (Manila Electric Company System) By J. F. Cotton . Treasurer, Manila Electric Company 1941 Average—15,316,000 KWH KILOWATT HOURS 1951 1950 January.................................................. 40,713,000* 37,661,000 February............................................... 36,930,000’* • 33,828,000 March..................................................... 38,107,000 April....................................................... 35,378,000 May........................................................ 37,611,000 June.............................. ...................... 37,529,000 July......................................................... 38,774,000 August................................................... 39,872,000 September............................................ 38,791,000 October.................................................. 40,657,000 November............................................. 39,268,000 December.............................................. 41,099,000 _Total................................. 458,576,000 **R#rtially revised OUTPUT in February was at the same rate as in January but because of the shorter month the total decreased. The increase over 1950 was 3,102,000 KWH, or 9.2%, The F.P.P. Impedance was shut down all month until February 27 for repairs and overhaul, but is again in service. Real Estate By Antonio Varias Vice-President, C. M. Hoskins & Co.. Inc., Realtors REAL estate sales in the Greater Manila area registered during the month of February, 1951, numbered 676, with a total value of P8,445,762, as compared with 683 sales, with a total value of P7,939,775, registered during the preceding month of January. Of the February total, 228 sales, with a total value of P3,549,050, represented deals within Manila proper, while 448 deals, with a total value of P4,896,712, were sales within the cities of Quezon and Pasay, and in the suburban towns of Caloocan, Makati, Malabon-Navotas, Mandaluyong, Paranaque, and San Juan. Among the bigger sales registered during the month were: A 2-story reinforced concrete building with a total floor area of 7,300 square meters on a lot of 5,432.6 square meters, situated at Arzobispo, corner Anda, corner Sta. Lucia streets, Intramuros, presently occupied by Marsman & Company, sold by O. Ledesma 8s Company, et al to Universal Realty Corporation for P860.000; A property with a lot of 1,192.4 square meters at Echague Street, Sta. Cruz, sold by Juan Ysmael 8s Company to Metropolitan Enter prises, Inc. for P200.000; A property with a lot of 3,578.5 square meters at Figueras Avenue, Pasay City, sold by Heirs of D. Tuason, Inc. to J. M. Tuason 8c Co., Inc. for P131.560; A property with a lot of 19,184 square meters in Makati, sold by Ayala Securities Corporation to Aurelio Montinola for P115.104; A parcel of 4,491 square meters at Taft Avenue, Pasay City, sold by Bagongbayan Realty Company to Arellano University for P112.275; and A property with a lot of 7,152.8 square meters at Manga and Pina streets, Sampaloc, sold by Antonio Tuason, Jr. to Pilar 8s Remedios H. Miranda for P100.000. Real estate mortgages registered in the Greater Manila area during the month of February, 1951, numbered 318, with a total value of P8,334,848, as compared with 285, with a total value of P3,919,903, registered during January. Of the February total, 125 mortgages, with a total value of ?5,636,460, represented deals within Manila proper, while 193, with a total value of P2,698,388, were mortgages within the cities of Pasay and Quezon, and in the suburban towns above mentioned. total values of real estate sale and mortgages REGISTERED YEARLY SINCE 1940 (Suburban figure! not compiled until yeari ihown below) SALES Manila Quezon City Pasay City Suburbs Total Value Year 1940................. Pl 6,801,476 of Monthly Average of Mortgages for 1950 I................. P 3,890,040 P 980,681 P 454,828 P 3,027,569 P 6,917,609 Monthly Totals of Mortgages for 1951 'iiSS 'fiS * ’SB Port of Manila By R. L. Moore Treasurer, Luzon Brokerage Company IT is heartening to note that PRISCO has established what appears to be a going, successful concern, really interested in problems of the importer. The reaction all over town is that this agency knows what it is doing and, of course, evidence has manifested itself daily in the papers indicating licenses issued which will mean: 1. That imports will be considerably stepped up, which is good news to our business. 2. That much needed heavy equipment, capital goods, etc., will be coming in to relieve the serious shortage as it now exists in the Philippines. 83 •pcA representation jis increasing, with personnel arriving ■‘“'every week. There is a growing belief that while ECA is not content with the progress of the Government in meeting terms and conditions upon which aid is pre dicated, nevertheless, it will undoubtedly come through in some strength. In our world, Mr. Foster Knight and Mr. L. G. Little are checking the customs scene. We sincerely hope that the many difficulties now encountered in clearing the Cus toms will be overcome, although of course, these men are no miracle workers. In our several talks with Mr. Knight, we were impressed both with his background of experience in clearing up the same type problems in Korea and China, and with his immediate understanding of the problems in Manila. xtehicle plate licenses for transportation have risen ’from?4 per 100 kilos to P8, a 100% increase that looms up as a serious factor in the transportation business. In addition, the Government is requiring 4% of all gross returns on haulage from the piers. This, along with several other license demands, is too large a burden to bear. It is very likely in the very near future that rates will have to go up in order to transfer a portion of this burden. A proposal to increase the rates has been submitted to the Public Service Commission for review and approval. We do not like the idea of an increase but with the many burdens now imposed on transportation, apart from the tremendous cost of maintenance of equipment, replacement of tires, etc., there is no other solution. As is known to most of us, there are in the brokerage business certain firms which are not bona fide customs brokers and not established as such. • Rather, they are interested in taking care of their own business activities or in short-period operations to get full use out of personnel and/or equipment they may have available basically for other purposes. The result is that the usual fair prac tices as followed by any association in a given business are jeopardized by cutting the rates down to a point which they could not long stand if they were to maintain their equipment and personnel over any extended period of time. This beating down of prices would inevitably end in poor performance and service if joined in by all the brokerage and trucking firms. Customs has appointed a committee to study this unhealthful condition. We do not know as yet what will come of the investigation. “PACO” GISPERT: R. I. P. •vyroRDs are inadequate to express our shock and ™ sorrow at the loss of our friend, “Paco” Gispert. We noted that one of the newspaper headlines stated that he was “slain”. This is a word more properly descriptive of death in battle. This was nothing short of a cold-blooded murder of a defenseless mfin, who had but a moment before left his wife and children in an automobile below. We extend every tribute to this courageous man. We hope that justice will speedily be meted out to the perpetrator of the un holy crime.—R. L. M. Shipping—Imports By F. M. Gispert Secretary, Associated Steamship Lines TOTAL exports for the month of January of this year showed an increase of approximately 200% over exports during January of last year. Ninety-five vessels lifted 318,016 tons of exports during the month, as compared to 164,078 tons lifted by 85 vessels during the same month last year. Commodities which have registered sharp increases over last year’s figures for the same month, are: coconut oil from 2,766 to 7,988 tons; lumber from 739,555 to 4,402,696 bft; molasses from 4,774 to 24,485 tons; canned pineap ples from 4,126 to 12,743 tons; and sugar from 38,228 to 84,892 tons. Exports for January, 1951, as compared with exports during January, 1950, were as follows: 1951 1950 Coconut, desiccated. 5,014 tons 6,687 tons Coconut oil................... 7,988 ” 2,766 ” Concentrates, gold.. . 721 ” 429 ” Copra............................. 55,125 ” 38,010 ” Copra cake, meal........ 5,293 ” 4,198 ” Embroideries............... 213 ” 135 ” Empty cylinders........ 658 ” 580 ” Furniture, rattan. . . 816 ” 513 ” Glycerine...................... 146 ’’ 110 ” Gums, copal................ 68 ” 16 " Hemp............................. 87,115 bales 58,416 bales Hemp, knotted........... 62 tons — tons Household goods........ 529 ” 241 ” Junk, metals............... 969 ” 1,111 ’’ Logs................................ 15,243,709 bft. 11,788,661 bft. Lumber.......................... 4,402,696 ” 735,555 ” Molasses........................ 24,485 tons 4,774 tons Plywood........................ 110 tons 12 tons Ores: chrome............... 24,350 ” 12,937 ” ” lead................... 95 ” 80 ” ’’ iron...................... 35,077 ” 24,077 ” ” manganese........ 700 ” — ” Pineapples, canned.. 12,743 ” 4,126 ” Rattan, palasan......... 314 ” 74 ’’ Rope............................ 383 ” 243 ” Rubber.......................... 50 ” 80 ” Shells, shell waste. . . 54 ” 38 ” Skins, hides................. 139 ” — ” Sugar.............................. 84,892 ” 38,228 ” Tobacco........................ 915 ” 81 " Transit cargo.............. 1,885 ” 431 ” General merchandise 2,384 ” 7,453 ” Lumber By Luis J. Reyes Philippine Representative, Penrod, Jurden S5 Clark Company DURING the month of January, 1951, a total of 18,888,225 board feet was exported, with Japan leading all others with 9,472,877 feet consisting entirely of logs. This was followed by the United States with a volume of 7,264,166 feet, almost equally divided between logs and sawn lumber. Formosa came third with a little more than 1,000,000 feet of logs and lumber. Okinawa, Canada, Hongkong, and South Africa took about 1,000,000 feet in all. As released by the Bureau of Forestry, the timber inspected for export during the month of January, 1951, was as follows: Destination Lumber (Bd.Ft.) (Bd°Ft.) Total (Bd.Ft.) Japan.................................... — 9,472,877 9,472,877 United States..................... 3,767,998 3,496,168 7,264,166 Formosa.............................. 313,778 741,263 1,055,041 Okinawa............................... 510,996 — 510,996 Canada................................. 111,871 160,881 272,752 Hawaii................................. 147,287 — 147,287 Hongkong............................ 130,108 — 130,108 South Africa....................... 34,998 — 34,998 5,017,036 13,871,189 18,888,225 shippers to the United States are meeting with diffi culty in securing space in ocean steamers, and had more space been available, the volume of timber exported for the month of January would have been one of the big gest monthly shipments since liberation. 84 This shortage of bottoms was predicted some months back. Carriers seem to prefer sugar and hemp to lumber whenever given the choice. Lumber producers feel that this is not exactly fair to the industry, because they have commitments, too, and need ships to carry their cargoes abroad. As a matter of fact, members of the Philippine Lumber Producers Association agreed with the Associated Steamship Lines to a raise in the rates on logs and lumber to figures believed competitive with those for sugar, but yet the necessary bottoms seem to be denied the lumber industry. Shipments to Japan are not severely affected by this shortage of bottoms, because the buyers as a rule send their own ships and the owners are not members of the Associated Steamship Lines. Prices of logs and lumber for export are considered -^satisfactory by producers, particularly to Japan which takes a big volume of round logs, not only of the peeler grade, but also saw logs for which producers get as high as $56, f.o.b., Philippine ports. The prices of logs shipped to the United States range from $65 to $70 for peelers. No saw logs are shipped to America. Prices in the local lumber market are considered low in spite of the relatively small volume coming to the market. Sales to Manila yards have been reported at Pl40 per thousand feet for white lauan, Pl50 for apitong, and Pl65 for reds. This is an improvement over the December prices, and there is a tendency for prices to go up, possibly the result of the recent purchase by SCAP involving about 9,000,000 board feet of Philippine sawn lumber. Exporters are finding difficulty in securing export permits for shipment of lauan logs to Japan. The value of timber in the barter list between the Philippines and SCAP has been greatly exceeded by the Philippines and the au thorities are not issuing export permits until a new arrange ment, now in progress, has been entered into with SCAP. This sudden suspension of shipments to Japan has inconvenienced many shippers, as the logs were ready, letters of credit had been issued, and, in many cases, boats were on the way to pick the logs up. Mining By Nestorio N. Lim Secretary, Chamber of Mines of the Philippines Mineral Production for the Month of January, 1951* Quantity Value Atok-Big Wedge Mining Co., Inc........................... Au. 4,437 oz. P 310,594 Ag. 2,386 ” 3,387 M.O. 14,260 S.T. 313,981 Balatoc Mining Company Au. 8,354 oz. 584,780 Ag. 5,480 ” 8,768 M.O. 39,701 S.T. 593,548 Benguet Consolidated Mining Co...................... Aug. 7,943 oz. 556,010 Ag. 5,210 ” 8,336 M.O. 32,661 S.T. 564,346 Lepanto -Consolidated Mining Co...................... Au. 3,034 oz. 212,380 Cu. 2,443,530 lbs. 989,582 M.O. 30,035 S.T. 1,201,962 Mindanao Mother Lode Mines, Inc...................... Au. 5,525 oz. 383,841 Ag. 5,415 ” 7,269 Cu. 60,832 lbs. 24,941 M.O. 11,200 S.T. 416,051 Surigao Consolidated Mining Co., Inc........... Au. 2,860 oz. 200,200 Ag. 1,000 ” 1,000 M.O. 10,466 S.T. 201,800 Tambis Gold Dredging Co., Inc........................... Au. 244 oz. 14,700 Cu. Yd. 34,928 14,700 Surigao Placer Syndicate. Au. 189 oz. 13,241 Cu. Yd. 49,000 13,241 Consolidated Mines, Inc. Ref. Chromite 16,350 M.T. 392,400 Data on Production, Taxes, «nd Labor for the Last Five Years of the Mining Industry* 1946 1947 1948 Production... P3,997,035 P24,193,077 P37,293,112 1950 P81,370,291 3,000,000 P59,290,935 1,305,058.85 Taxa........ 85,000 |516,OOO 797,322.30 Number of Labor Em ployed.... 8,000 18,000 20,000 31,000 36,000 THE data on mining production shows the steady progress of the industry from 1946 to 1950, in spite of the high costs of labor, materials and supplies, ♦From Bureau of Mines data. Total for Year . December PHILIPPINE BASE-METAL PRODUCTION, 1950 Quantity in M.T. Value In Pesos Quantity in M.T. Value In Pesos Consolidated Mines.......................................... ... (a) 23,300 P 466,000 208,665 P 4,173,100 Lepanto Consolidated.............................................. (b) 1,112 970,323 10,102 8,088,052 Mindanao Mother Lode............................... ......... (c) 28 24,814 282 166,112 Philippine Iron Mines................................... ......... (d) 37,612 470,150 263,156 3,378,419 Samar Mining............................................................. (d) 32,866 387,819 312,245 3,963,862 Marinduque Iron Mines............................... ......... (d) None None 23,694 291,213 Acoje Mining................ .......................................... (e) 5,175 164,435 23,775 749,435 Misamis Chromite............................................ .... (e) None None 10,571 460,378 Luzon Stevedoring Co. Chromite................ ......... (e) None None 7.5Q.0 265,000 Looc Lead-Silver Mines........................................ (0 None None 327 143,067 Surigao Consolidated.................. ?.............. ......... (g) 47 35,339 552 354,513 Luzon Stevedoring Co. Manganese.......... ......... (h) None None 4,163 176,240 General Base Metals........................................ .... (h) None None 17,862 616,840 Seleo Manganese Mines.................................. .... (h) None None 1,510 52,850 Palawan Manganese Mines.................................... (h) None None 950 60,000 Palawan Mining Corp................................... . ......... (h) None None 750 27,375 Amalgamated Minerals................................... .... (h) None None 1,610 89,220 Philippine Base Metals................................... .... (h) None None 549 30,383 Cia. Minera de Filipinas............................... ......... (h) None None 600 24,000 De los Santos Manganese............................... .... (h) None None 450 18,000 Badillo Mining Company............................... .... (h) 600 29,520 1,423 66,555 T Ref. Chromite Ore..................... 23,300 P 466,000 208,665 P 4,173,100 O Met. Chromite Ore.................... 5,175 164,435 41,846 1,474,813 T Copper Metal............................... 1,140 995,137 10,384 8,254,164 A Lead Metal................................... 47 35,339 879 497,580 L Iron Ore......................................... 70,478 857,969 599,095 7,633,494 S Manganese Ore............................ 600 29,520 29,867 1,161,463 Grand Totals.................................... P2,548,400 P23,194,614 (a) Chromite mines with refractory grade of ora. (b) Copper mina with gold and silver as by-products. (c) Gold Mina with copper and silver as by-products. (d) Iron mines. 85 and freight rates, and the lack of venture capital going into the industry. The mining industry needs financial help from the Gov ernment in the form of loans at a reasonable interest, to be guaranteed by ore reserves and mining machinery; reason able rates of taxation; and a steady importation of mining machinery, spare parts, supplies, chemicals, and food stuffs. The present pending legislation to increase taxation and to set a higher minimum wage for industry, is not meeting with the approval of the mining companies which have always been good tax payers and which already pay the best wages in the country. Copra and Coconut Oil By H. Dean Hellis Manager, Philippine Refining Company, Inc. January 16 to February 15 NOTWITHSTANDING previous sharp price advances in the world’s markets for both Philippine copra and coconut reported in our last month’s review, prices have continued to advance further during the present period under review, more particularly so since the beginning of February. In general, the markets were rather uncertain and confused during the latter half of January, with little, if any, change, due entirely to persistent rumors that price controls would be announced in the United States in the very near future. Obviously, in the absence of anything definite, traders were unable to properly assess market probabilities, and as a result considerable caution was im mediately evident on the part of both sellers and buyers. The long-expected price- and wage-freeze in the United States finally became a reality by order on January 26, and price ceilings were established on the basis of the highest prices in effect during the period from December 19, 1950, to January 25, 1951, inclusive. The General Ceiling Price Regulation, as issued, did not order any specific price ceilings ^br individual items, and therefore there was like wise no “roll-back” ordered. It was soon apparent, how ever, that the Office of Price Stabilization would eventually establish specific ceilings for many items, and when done, there might well be certain price “roll-backs” on a selective basis. Of particular interest to the Philippines, however, the U.S. Economic Stabilization Agency specifically exempted in the price-freeze order a total of 42 foreign oils and oil seeds from price ceilings, copra and coconut oil being among those exempted. Immediately following the announcement of the priceand wage-freeze in the United States, considerable confusion continued in the oils and fats markets for a week to ten days, as it naturally took traders time to thoroughly digest and analyze the freezing order before they could come to any clear opinion regarding it. Insofar as Philippine copra and coconut oil were con cerned, the market turned very bullish during the first few days of February, and prices immediately started to ad vance, particularly as a result of an apparent continued strong demand from Europe for copra. Copra prices ad vanced approximately $20 per ton by about February 8. While the price-rise still continued even thereafter, it was not as pronounced as during the earlier part of the month. About the end of the first week in February, rumors began to be heard that there would soon be a specific ceiling put on prices of cottonseed oil and soybean oil in the United States. Such action, however, was not actually taken until February 13, when a “rolled-back” ceiling price was placed on crude cottonseed oil of 23-1/2 cents per pound Valley, on crude soybean oil of 20-1/2 cents per pound f.o.b. De catur, and on crude corn oil of 24-1/2 cents f.o.b. Mid-West mills. There is also cunently some talk of a specific ceiling being placed on tallow in the United States, but this has not materialized as yet. The effect of the “roll-back” on American cottonseed oil, soybean oil, and corn oil probably had only a slight deterring effect on the advance of’ Philippine copra and coconut oil prices, though, as we write, there is a growing feeling in the United States that both copra and coconut oil are now becoming too expensive in relationship to other oils and fats, and that accordingly millers and consumers may henceforth refrain from further buying until their needs become more immediate. A certain amount of coconut oil is, of course, always essential, and this being the case, American buyers will have to and actually will pay what ever price is necessary for their requirements as and when needed. Under the present situation, however, it is quite possible that the usage of coconut oil may be reduced to a minimum, and therefore that buyers will hesitate to re plenish stocks any more than actually required. In the final analysis, the rule of supply and demand will probably dictate the market trend of Philippine copra and coconut oil during the next few months. Although an excellent crop is anticipated in the Philippines for 1951, there is no doubt that supplies in the near future will be off from what they were during the second half of 1950, and at the same time, of course, quite a bit less than what are expected later on this year. Meanwhile the big “if” seems to be whether Europe will continue to be as keen a buyer as has been the case recently; also to what extent Japan and other destinations may be interested in Philip pine copra at around prevailing or even higher prices. With this same thought in mind, it is already quite evident that there will be no abundance of crude cottonseed oil available in the United States until the new cotton crop is harvested in the fall of the year. As a matter of fact, the supply is considerably short of what it was at this time last year, and consequently should make for a rather tight all-around situation in oils and fats for at least several months to come. Presently here in the Philippines there also appears to be a fairly heavy back-log of orders and sales yet to be filled, with the natural result that some shorts have neces sarily had to assist in pressing the copra market sharply upward in their need to cover. So, all in all, it now looks as though all the factors are presently apparent to account for a continued steady to firm copra market at prices certainly not much below those currently being paid, and this will be particularly the case if the present demand continues from Europe, Japan, and destinations other than the United States. Even if this latter demand should become somewhat reduced, it is quite possible that the situation in the United States alone will be sufficient to keep Philippine copra and coconut oil rela tively high-priced during the period when supplies here in the Philippines are seasonally low. As to shipping conditions, the situation is pretty much '‘''unchanged, with space particularly to Europe being somewhat tight for nearby positions. Freight rates are considered quite firm, and the tendency is undoubtedly for still further advances. Some rates to Europe actually were increased during the period under review, the rate on copra for instance, going from sh. 160/- to sh. 175/-; on coconut oil from sh. 132,6 to sh. 162/6; and on copra meal from sh. 150/- to sh. 187/ 6. Freight rates to the United States are to be increased $3 per ton effective April 11. yvriTH specific reference to prices during the period under ™ review, Philippine copra was quoted at around $255 to $260 c.i.f. Pacific Coast at opening, whereas at close on February 15 there were reports that $285 c.i.f. had actually been traded. 86 March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 87 European prices likewise advanced during the period from about $300 c.i.f. to as high as $330 c.i.f., while the f.o.b. landed weight market jumped from approximately $262.50 at opening to near $300 at close. Locally in Manila, price advances were registered from about P47 to P48 at opening to approximately P55 at close. The coconut oil market in the United States registered gains from 20 cents per pound c.i.f. Atlantic Coast for bulk business, to trades at 21-1 2 cents c.i.f. with sellers then holding for 22-1 2 cents c.i.f. at close for additional sup plies. On the Pacific Coast, oil advanced from approxi mately 19-1, 2 cents f.o.b. tank cars to sales at 21-1/2 cents f.o.b. reported on February 15, sellers’ ideas actually being from 21-3 4 cents to 22 cents f.o.b. immediately thereafter. As is generally the case, exports of copra from the Philippines fell off quite considerably during January as compared to December. During January, 1951, they amounted to only 55,125 tons, as compared to 80,816 tons during December, 1950, and 38,010 tons during January, 1950. The exports for January, 1951, are broken down as to destination as follows: Coconut oil exports for January, 1951, however, main tained a reasonably good volume, they being 7,988 tons, as compared to 8,828 tons during December, 1950, and only 2,766 tons in January, 1950. January, 1951, exports of oil are broken down as to destination as follows: United States Atlantic Coast.......... 7,840 long tons Venezuela.................................................. 148 ” ” Total.............................................. 7,988 long tons The market for Philippine copra meal during the month under review showed little, if any change, due largely to the fact that this commodity, unlike copra and coconut oil, is now subject to the price-freeze order in the United States, and consequently there has been considerable con fusion and uncertainty as to future conditions and prices. United States Pacific Coast............... Atlantic Coast................... Canada............. Japan............................. Netherlands............... Italy........................... Belgium.... Sweden. Norway. Switzerland......... Other European.. Israel................. South Africa. . 32,340 long tons 2.900 ” 2,750 ” 689 ” 3,100 ” 2,000 " 3.900 " 2.500 ” 1.500 " 900 ” 1,000 ” 1,500 ” 46 ” Total. 55,125 long tons Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from January 15 to February 15, 1951. During this time the copra market bulled forward from P44 per 100 kilos resecada to?51. Nut prices advanced with the copra market and it was necessary to pay almost the copra equivalent to secure nuts. There was much speculation in the market, as most contractors and planters felt that higher prices were to come, and, rather than sell coconuts for immediate cash return, they preferred to make copra and speculate on a future market. This condition made it very difficult to purchase nuts and most factories ran at reduced capacity due to insufficient raw material. This condition may extend through the month of February as the local copra market has a bullish tendency, STEEL FABRICATORS • CONTRACTORS RIVER & HARBOR WORK • SHIPS’ REPAIRS ENGINEERS • MANUFACTURERS MERCHANDISERS ATLANTIC, GULF & PACIFIC CO. OF MANILA (PHILIPPINE CONTRACTORS SINCE 1905) EXECUTIVE OFFICES * ENGINEERING DIV. STRUCTURAL & MACHINE SHOPS Barrio Punta. Sta. Ana. Manila Tela: 6-75-31 • 6-73-32 * 6-75-33 MERCHANDISE SALES DIVISION ” Tel: Ijc'e^'connecling’all DepU.f' ’ AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1951 and no general pattern but speculation is in view. Several factories have closed down during the period due to the scarcity and high prices. The shipping statistics for the month of January are as follows: Shippers Pounds % Franklin Baker Co. of the Philippines............... 1,460,200 25.89 Blue Bar Coconut Company................................. 1,050,380 18.63 Red V Coconut Products, Ltd............................. — — Peter Paul Philippine Corp................................... 1,760,000 31.21 Sun-Ripe Coconut Products, Inc......................... 866,375 15.36 Standard Coconut Corporation........................... 246,640 4.37 Cooperative Coconut Products, Inc................... — Tabacalera...........-..................................................... 155,900 2.77 Coconut Products (Phil.) Inc............................... 100,000 1.77 5,639,495 100% NOTE: Zamboanga Factory production ........................................ 399,500 lbs. Lusacan ” ” ........................................ 650,880 “ TOTAL Blue Bar shipments................................................ 1,050.380 lbsManila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines THIS review covers the period January 16 to February 15, 1951. On January 29 the United States Govern ment instituted “freeze” regulations which prohibit importers at selling at more than the highest price at which fiber was delivered between December 19, 1950, and Jan uary 25, 1951. As deliveries of Manila hemp during this period represented October November shipments, a literal interpretation of the regulations would rhean ceiling prices approximately 4/ per lb. below the prices that prevailed during the base period. The traders did not believe that this interpretation would prevail and completely withdrew from the market, pending verification of the order. As a consequence, the market remained in a state of complete paralyzation for the remainder of the period under review. Advices were received from the United States the day before writing this report (February 27) to the effect that all restrictions had been removed and the free market restored. On the other hand, there seems to be increased agitation for the United States Government to take over the buying and become sole buyer. The London market was steady on the decline and considerable business was done. Most Philippine exporters cleaned up their Japanese quotas and the quantity sold during the period is estimated at 15,000 bales. The following nominal values on February 15 illustrate the trend of prices in the Philippines over the period: Per Picul Basis Loose January 15 February 15 Change Davao I................................. P79.50 P75.50 — P4.00 Davao JI............................... 77.50 73.50 — 4.00 Davao G................................. 73.50 69.50 — 4.00 Non-Davao 1........................ 76.00 71.00 — 5.00 Non-Davao JI...................... 72.50 68.00 — 4.50 Non-Davao G...................... 64.00 62.00 — 2.00 Pressings during January were 90,927 bales, the highest in the postwar period. The following are the comparative figures for balings for the month of January, 1947, through 1951: 1951 Davao................................... 40,025 Albay, Camarines, and Sorsogon.......................... 25,813 Leyte and Samar............. 14,821 All other Non-Davao. . . 10,268 Balings — January 1950 22,822 1949 19,278 1948 22,120 1947 25,881 14,966 9,724 14,578 11,618 9,618 6,710 9,111 8,684 8,096 3,896 14,542 2,322 Total Bales.............. . 90,927 54,116 46J97 59,336 43,717 NOW AVAILABLE AT THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Corner Tacoma & 2nd Sta. Port Area, Manila Tel. 3-35-41 Br. Office at: Bacolod.Occ. Negros A 'full 2-plow, general type tractor, equipped with hydraulic control system and power adjusted rear wheels. Its two-clutch power control system makes possible the starting and stopping of the tractor without disturbing or stopping the flow of power to the power take-off or hydraulic system. ALSO TOWNER OFFSET DISC HARROW I I March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 89 The production figures for the first three weeks of February indicate that the pressings for the second month of the current year will probably surpass those of January by a few thousand bales. The following are the comparative figures for exports for the month of January, 1947, through 1951: Exports — January United States and nada......................... Ca1951 43,153 1950 21,704 1949 13,903 3 1948 17,442 1947 25,514 Continental Europe. 14,887 5,619 10,693 5,895 7,450 United Kingdom.. . . 9,650 9,546 1,849 4,315 575 Japan........................... 4,910 9,464 17,877 3,816 — South Africa.............. 970 80 300 — — China........................... 310 550 1,904 930 225 India............................. 300 500 200 — — Korea........................... — — — — — Australia and New Zealand.......................... — — — — — All Other Countries. — — — 630 — Total Bales............... 74,180 48,088 46,806 53,028 33,764 Sugar By S. Jamieson Secretary-Treasurer Philippine Sugar Association THIS review covers the period from February 1 to Feb ruary 28, 19^51, inclusive. New York Market. February opened on a firm market. On the 2nd refiners took up all of the Cuban, Porto Rican, and Philippine sugar on offer for February/ March arrival at 6/, and spot was quoted at 5.99/. On the 5th, small quantities of Porto Ricos for March arrival were sold at 6.05/ and spot reached the same level. Next day, though the market was slightly easier, there were sales of Cuban and Hawaiian sugar for March arrival at 6.05/ and 3,000 tons of Philippines for February/March ship ment were taken on a p.d.a. (price on date of arrival) basis. On the 7th, the market became steady at the decline. Cubas for March shipment were sold at 6/, with buyers indicating interest in further quantities at this price in suitable positions. Next day, further sales of Cubas were made for March shipment at 6/, and there were light offer ings of Cubas, Porto Ricos, and Philippines for March/ April arrival at the same price, with buyers indicating 5.95/. On the 9th, in a somewhat easier market, some Philippines and Porto Ricos for February/March ship ment were sold at 5.95/, but further offerings at this price attracted no buying interest. On the 13th sales of Cubas for February/March shipment were made at 5.90/. On the 15th, 1,000 tons of Philippines afloat were taken on a p.d.a. basis, while another 1,000 tons in the same position were sold outright at 5.91/. For a week the market con tinued steady, with sales of fair quantities of Cubas, Philip pines, and Porto Ricos for March arrival at 5.90/. The undertone was firm, and on the 26th sales of Philippines afloat, for March arrival and for February/March ship ment, were made at 6/, followed next day by sales of Cubas, Porto Ricos, and Philippines for March shipment at the same price. On the last day of the month, one lot of Philip pines for March/April shipment and a parcel of Porto Ricos for April arrival were sold at 6/, but the market closed easier, with light offerings of Cubas at 5.95/ and buyers holding off. Spot at the close was quoted at 5.95/. We give below the quotations on the New York Sugar Exchange as of February 28 for Contract No. 6: The Journal is one of the best vehicles for advertising addressed to businessmen. ENGINEERING EQUIPMENT r> & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Seles Office 1 74 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 ★ ★ ★ 90 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1951 May................................................................. 5.44^ July.................................................................. 5.53 September..................................................... 5.59 November.................................................. 5.62 The world market Contract No. 4 quotations closed as follows on February 28: March............................................................. 5 22 c May................................................................. 5.29 July.................................................................. 5.30 September...................................................... 5.31 March, 1952................................................. 5.06 The world spot market price on February 28 was 5.25/ as compared with 4.95/ on January 31, 1951. Local Market, (a) Domestic Sugar: The market during the month was steady at the decline, the closing quotations as released by the Bureau of Commerce being as follows: Centrifugal 97°—P14.30 to P14.50 per picul Washed 98°—Pl 5.80 to Pl6.00 per picul Washed 99°—Pl6.30 to Pl6. 50 per picul (b) Export Sugar: Scarcity of shipping space and uncertainty aboiit the freight rate continued to restrict business, exporters being disposed to buy only against freight in hand. The month opened with buyers at P14.75 per picul, ex mill warehouse, for prompt delivery, but the price steadily declined thereafter and at the close buyers, realizing that a substantial increase in the freight rate was imminent, were quoting P 14.20. Freight. Effective March 1, 1951, the freight rate on sugar to United States Atlantic Coast ports will be further increased from $16.60 to $21.00 per long ton, shippers continuing to pay in addition a stevedoring differen tial which at present amounts to $0.40 per long ton. General: It was officially announced about the middle of February that sugar had been removed from the General Ceiling Price Regulations of the Economic Stabili zation Administration, leaving it as before in the control of the U. S. Secretary of Agriculture under the provisions of the Sugar Act of 1948 which contains no provision for direct price control but permits the Secretary to regulate supplies through quota changes. Tobacco By Luis A. Pujalte Secretary-Treasurer Manila Tobacco Association, Inc. THE British American Tobacco Company, known throughout the Orient as the B. A. T., needs no intro duction. B.A.T. is the largest and most potent to bacco company in the world; it is in tobacco something like, let us say, Unilever or Procter & Gamble are in fats and oils. But in tobacco there is only one dominant power and that is the B. A. T. It controls a very large portion of the tobacco produced throughout the world and it manu factures, through its numerous subsidiaries, a major portion of the cigarettes consumed throughout the world. The B. A. T. has not gone in for cigar manufacture on a big scale, in so far as I know. Toward the end of last year, several representatives of the B. A. T., coming from different ports, met in Manila and made a pretty close survey of our tobacco industry. They toured the tobacco provinces and closely observed the types raised as well as the curing methods. Dissidents in Indonesia have destroyed a major part of the last crop in the curing barns. This, it is said, is the main reason that induced the B. A. T. to glance at the Philippines. What its plans are, only time can tell, but I believe that if it should decide to enter this field, the industry and the people in general will benefit. MORE POWER TO THE PHILIPPINES In or out of doors, spectacular savings is the main reason for installing General Electric Capacitors. Better voltage con ditions, relief for overloaded equipment, and lower system losses are other benefits from G. E. Capacitors for Industries in the Philippines. March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 91 'the tobacco crop for Visayas, Union, Pangasinan, and Ilocos is expected to be larger than the last crop, while in Isabela and Cagayan a great increase is expected over previous years up to liberation; if weather conditions remain favorable a crop of pre-war proportions is expected. Imports By S. SCHMELKES Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units: Beverages, Misc. Alcoholic............. 9,381 Foodstuffs, (Total Kilos)................. 25,287,270 Foodstuffs, Fresh (Total)................ 181,247 Apples................................................ 46,763 Oranges.............................................. 8,670 Onions................................................ 48,539 Potatoes .......................................... 27,392 Foodstuffs, Dry Packaged (Total). 34,323 Foodstuffs, Canned (Total)............. 329,538 Sardines............................................ 50,510 Milk, Evaporated........................... 156,740 Milk, Condensed............................ 41,999 Foodstuffs, Bulk (Total).................. 350,727 Rice.................................................... 250 Wheat Flour.................................... 288,105 Foodstuffs, Preserved (Total)........ 892 Commodities Automotive (Total)........................... Automobiles..................................... 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)...................... December, 1950 December, 1949 1,123,361 1,300,331 317,499 402,882 694 4,469 194,008 318,622 6,051 93,087 — 27,963 96,117 229,446 43,816 28,340 3,344,459 24,486,545 82,278 185,259 59,739 20,331,241 828,690 497,662 — 54,697 9,010,488 10,474,703 701,958 930,897 — 25,587 3,246 16,437 1,907 9,699 7,334,247 6,220,499 1,301,246 2,694,251 1,345,826 2,029,009 9,073,325 11,244,256 51,908,616 92,406,798 10,802 137,067 899,319 1,106,441 Bottling, Misc. (Total)..................... 899,396 Cleansing and Laundry (Total). . . 1,395,650 Entertainment Equipment (Total) 3,362 Livestock-bulb-sceds (Total).......... 4,517 Medical (Total)................................... 421,536 Musical (Total)................................... 21,220 Office Equipment (Total)................ 67,469 Office Supplies (Total)...................... 63,557 Paper (Total)....................................... 5,322,485 Photographic (Total)........................ 36,288 Raw Materials (Total)...................... 7,311,914 Sporting Goods (Total).................... 96,032 Stationery (Total).............................. 154,815 Tobacco (Total).................................. 431,776 Chucheria (Total).............................. 80,444 Clothing and Apparel (Total)........ 315,514 Cosmetics (Total)............................... 90,452 Fabrics (Total)................................... 725,431 Jewelry (Total)................................... 630 Leather (Total)................................... 189,367 Textiles (Total)................................... 2,313,282 Twine (Total)...................................... 47,158 Toys (Total)........................................ 28,834 General Merchandise (Total)......... 349,804 Non-Commercial Shipments (Total) 62,752 Advertising Materials, Etc. (Total) 15,046 26,585 39,600,707 271,296 100,915 11,749 20,992 30,844 111,219 620,317 230,447 133,792 25,600 504,489 37,594 404,568 3,955 1,649,544 565,085 11,912 3,727 600,903 222,589 215,375 120,796 5,375,132 81,710 266,599 58,820 428,315 1,606,405 205,459 552,505 73,908 455,250 52 257,530 5,584,147 161,466 140,825 870,016 52,038 74,980 NOW/ FOR THE FIRST TIME Silvertown NON SKID DESIGN Silvertown TREAD DEPTH TREAD WIDTH Silvertown COLD RUB3ER Goodrich International Rubber Co. OFFICE & BODEGA RECAP PLANT 13th & ATLANTA, PORT AREA | 207 RIZAL AVE. EXT., GRACE PARK TEL. No. 3-37-21 TEL. No. 2-72-23 92 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1951 Commodities Automotive (Total) Automobiles........ 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). January 1951 January, 1950 1,122,861 1,367,319 80,760 492,490 1,184 18,102 170,299 198,330 17,413 57,533 — 25,843 300,060 183,927 282,306 24,821 3,174,079 5,506,300 92,165 169,524 77,419 517,962 456,596 1,048,226 134,718 502,451 5,509,596 13,536,941 753,210 2,606,879 16,596 32,987 29 15,175 — 2,469 4,855,905 7,074,415 961,825 1,655,063 1,633,350 2,463,463 9,080,154 12,311,159 98,501,893 47,766,404 24,213 92,214 984,348 856,013 “...then I’ll have STILL MORE POWER!” i Looking into the future we. have seen the need for additional generating capacity. I Another. 25z000 kilowatt unit has , been ordered to supplement the two units recently installed in our new | Rockwell Station. ' i There will then be MORE POWER . for your homes, stores and indusI tries—MORE POWER for the fun | ther economic development of the i Philippines. i M1MEI ELEITRII' COMPANY I 134 San Marcelino I Manila ■ 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)............. Bottling, Misc. (Total)......................... Cleansing and Laundry (Total) Entertainment Equipment (Total). . Livestock-bulb-seeds (Total).............. Medical (Total)....................................... Musical (Total)....................................... Office Equipment (Total).................... Office Supplies (Total) Paper (Total).................................... Photographic (Total)............................ Raw Materials (Total).......................... Sporting Goods (Total)........................ Stationery (Total)....................... Tobacco (Total)............. Chucheria (Total).................................. Clothing and Apparel (Total)............. Cosmetics (Total)................................... Fabrics (Total)........................................ Jewelry (Total)....................................... Leather (Total)....................................... Textiles (Total).............................. Twine (Total).......................................... Toys (Total)............................................ General Merchandise (Total)............. Non-Commercial Shipments (Total). Advertising Materials, etc. (Total). . 4,683 40,829 33,645,435 22,491,674 152,387 104,243 34,212 32,572 13,247 5,723 67,368 18,978 9,758 7,983 17,625 36,601 318,669 335,076 84,133 42,592 133,004 156,651 25,925 27,349 843,016 422,265 770,917 358,343 496 296 943,779 1,865,224 282,768 620,074 1,806 12,755 5,771 744 443,814 842,247 33,564 116,867 38,953 209,974 49,080 46,160 4,859,661 6,657,171 20,568 36,746 2,846,337 160,738 65,825 143,763 216,716 407,280 328,864 1,072,271 94,074 176,090 415,971 417,712 122,107 207,704 1,220,313 1,048,897 281 37 270,468 224,099 1,459,387 3,754,019 43,193 94,240 20,551 122,381 306,309 713,057 52,481 45,469 16,755 46,347 Food Products By C. G. Herdman Director, Trading Division Marsman & Company, Inc. THE stockpiling allocations on foodstuffs made by PRISCO in January have shown good results in the local market. Very considerable quantities of canned fish, especially, have arrived during recent weeks, with the result that prices on such merchandise have gone down in the local market; in fact, canned fish is selling below the official ceilings at the present time. March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 93 There have also been fair arrivals of canned meats and of evaporated milk. There has been no softening of prices, however, on these commodities which continue to move at the same price levels as during recent months. Stocks of practically all other items of imported food stuffs continue to be in very short supply and can only be secured in many cases in the black market. The shortage of canned coffee is particularly noticeable. Very little stocks can be found of canned fruits and vegetables, jams and jellies, butter and cheese, etc., and there seems to be no prospect of increased supplies in these lines. PRISCO has just placed additional orders for flour on the basis of 700,000 bags monthly for shipment during the months of March, April, and May. This purchase will exhaust the Philippine quota under the International Wheat Agreement for the present crop-year, although there are two months yet, namely, June and July, to be provided for. The Philippine Wheat Flour Board has gone on record to the effect that greater quantities of flour are required for the minimum consumption of the country than are allotted to the Philippines under I.W.A. and an appli cation is being made to the Council governing operations under I.W.A. for increased quantities of flour. If this application is not favorably considered, then the only recourse here would be to buy flour on the open market in the United States, Canada, or other producing countries, but if that is necessary, then the flour will have a materially higher price. Available stocks of foodstuffs in general in foreign markets appear to be very much on the short side. It is sincerely to be hoped that PRISCO will be able to secure additional dollar funds from the Central Bank for further stockpiling operations in the near future, as the more delay occasioned in making further purchases will find it just that much harder to secure the necessary imports and, inevitably, at higher prices. Textiles By W. V. Saussotte Acting General Manager Neuss, Hesslein Co., Inc. DURING January arrivals from the United States totaled about 9,200 packages and included approxi mately 2,650 packages of cotton piece goods and 1,400 packages of rayon piece goods. Arrivals of all textiles from other countries, including made-up goods, amounted to 96 packages from Japan, 382 packages from China, 1,180 packages from Europe, and 889 packages from India. The arrivals from both Europe and India included about 700 packages each of jute-bags and Hessian cloth in the piece, or a total of about 1,400 packages. The total arrivals from all sources for the month of January, including all types of textiles, amounted to 11,724 packages. This represents a decline of about 20% in com parison with December arrivals. The annual average monthly arrivals for 1949 was 22,600 packages, and for 1950, 12,600 packages. Comparison of the statistics indi cates a progressive decline in local stocks accompanied by strong general price-inflation tendencies which have com bined to make local prices soar. In this connection, the following article appeared in the February 26 final edition of the Daily Mirror: “The upward trend of the open market price of textiles not subject to ceilings, in both wholesale and retail, continues, it was noted today. Particularly affected are the high-class fabrics for both men and women’s wear. “This spiral in prices has affected the surcharge asked on import licenses for textiles. “Of all the items being imported, licenses for textiles are with a surcharge as high as 70% over the face value of the license. INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS ---------- ¥----------SPECIALISTS IN KILN DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DlSTlilBUTUHX: 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 Ob'ElCE: 101 F1LIP1NAS BUILDING 94 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1951 me mouMii ( (I R I’ II I!1T 10 \ 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 PABCO PRODUCTS, INC. “Pabco” Products AMES BALDWIN WYOMING COMPANY BALL BROS. MASON JARS 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 "The other articles command only from 40 to 60% ‘excess’ price. "The increase in prices for both licenses and the commodity itself has been attributed to the oft-repeatedly announced standing policy of the Import Control Doard that textiles will occupy the bottom of the priority schedule and that application for new textile factories will not be entertained this quarter. "The ban on imports has been imposed due to findings by various government agencies that there are enough stocks to meet normal requirements from two to three years. . .” As stated in the February issue of the Journal, the allegation that local supplies of textiles are sufficient for a two or three year period is contradicted by analysis of the arrival statistics. It was also stated that insofar as the public knows, nothing has been done “to alleviate a situa tion which is steadily becoming worse and which is deve loping at an ever increasing pace since the middle of 1950”. The Daily Mirror article of February 26, quoted above is, therefore, not surprising. Due to the shortage of raw cotton and the consequences of the war in Korea, arrivals from Japan have dropped off to an almost negligible quantity. Deliveries are currently running as far ahead as six months. In addition, arrivals from China have suffered a marked decrease. Over and above this, due to the chaotic conditions brought about by the “price-freeze” order of January 26 in the United States, which caused practically all mills to withdraw goods from sale, firm bookings made with mills in the United States since January 26 have been virtually nil. The consequence is that there is nothing in the offing to indicate that the upward spiral in local prices will stop in the near future. When the “price-freeze” took place in the United States, it left farm cotton uncontrolled but established ceilings on all cotton after shipment to the gins. The result .is that as of the end of February the cotton exchanges in the United States are closed and with this closure mills have been unable to buy their future requirements, which in turn has resulted in the withdrawal of practically all finished goods from the market. The United Press reported from Washington on March 4: “The Government set a basic ceiling price of 45.76 cents a pound on the farm price of cotton in a move to prevent further rises in the cost of cotton clothing and materials”. In view of this most recent development, there is now reason to believe that mills will again be offering finished goods at firm prices in the near future. However, unless this is accompanied by a more liberal policy of the ICA in Manila with respect to the issuance of licenses for textiles, it will not, in itself, do anything to halt the upward trend of local prices. In addition, the inauguration of export controls in the United States is daily coming closer to reali zation and should this development actually occur, the local problem of obtaining adequate textile supplies will indeed become niost difficult, particularly if such export allocations are based on 1950 exports. As noted in the -February issue of the Journal, 1950 arrivals of textile exports from the United States were only about 45% of 1949 arrivals. The opportunity which existed during the latter part of 1950 to acquire adequate stocks no longer exists and the immediate future holds no promise for replenishment of the already short local supplies. Drugs By Gunter Rottner Formerly Merchandising Manager, Philippine American Drug Company {Botica Boie) OF all merchandise categories, perhaps the most critical break in supplies, as well as the most thorough trade re-locations, were experienced by the drug business in the Philippines. March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 95 After a number of highly competitive years (1946 to 1949 and including the first half of 1950) Import Control cut a deep wound into established supply , lines for medical preparations and equipment of all kinds. Considered nonessential, cosmetics and toiletries had been eliminated much ‘earlier. The symptoms and their developments during this period were briefly: a greater than pre-war number of im porters and distributors, attracted by the apparent promise of a bonanza, made heavy purchases under easy credit conditions and forced the trade into a battle for survival, with resulting low prices to the consumer. The market demonstrated an astounding capacity as the country slowly recovered from the ravages of war. But the economic recovery lacked speed. Money became scarce and buyers began to place import orders with the utmost caution and stayed rather on the low side under the influence of inventories and the presence of P38,000,000 worth of army surplus. The year 1950 opened with a foreignexchange allocation cut 28% per annum over the previous year. The knife fell in May, 1950, when the new controls were extended over medical supplies in Ijoth quota and non-quota schedules which were defined only in the vaguest terms. There was no clarification or any workable solution until the new PRISCO, taking over the import control of medical supplies, drew up a list of priorities through a consulting committee early in 1951. Although far from ideal, this represents an approach toward a workable basis. The regulations of May, 1950, were retroactive in fact, and shipments were suspended. Drug distribution, anywhere, is organized on a basis of a constant flow of supplies. Immediate reduction in inventories, danger of war, panic-buying, developing shortages and controls also in the supply areas, and problems of shipping space were ominous signs at the time, but individual and collective pleas for ICA action to avert the otherwise in evitable and dangerous shortages of health-supplies and life-saving drugs, went unheeded. It was in August of the year that import licensing began and then continued only sporadically. The last quarter saw an alarming situation. The trickle of incoming supplies proved entirely inade quate to meet the demand. Overall inventories of im porters and distributors were the lowest ever, far lower than the stocks at the outbreak of World War II. How ever, it is generally believed that the average drug store shelves and home emergency-supplies are somewhat better off. Meanwhile, in November, 1950, the principal supplier, the United States, placed certain important products, such as anti-biotics and sulfas, under export licensing, and applications for Philippine shipments are today viewed with reluctance for fear of re-shipment to China. As pointed out, the PRISCO stepped into the picture, and, after a period of organization, began to issue import licenses on January 31 of this year, subject to priority limitations. A total value of approximately $4,000,000 was approved through a remarkably short procedure, but by then, ma terial shortages of both an ingredient and container nature were felt at the supply sources. Price increases, too, not provided for by PRISCO, now complicate matters. Some orders have already been rejected by suppliers for the foregoing reasons and more are sure to follow. So as mat ters stand, all-important anti-biotics (Penicillin, Strep tomycin, and others) and sulfas will continue to be scarce or unavailable. Cotton and gauze will be in extremely short supply, and their prices have considerably advanced at the source; so, too, hospital instruments and equipment of metal manufacture. Many more classes of goods could be added to this list out of the numerous and complex product-categories which the drug business handles to serve and fill medical requirements. The whole adds up to the fact that many a patient or physician will search, perhaps in vain, for a necessary item. The prospect is not reassuring; Nothing can start the young graduate in life than R & D BONDS. R & D BONDS are ideal graduation gifts because they keep on giving and giving throughout the years. For the face value of the bond that you give, the recipient will get 4% interest for ten years, payable semi-annually. At the same time, the money will be aiding the country's rehabilitation and develop ment program. Buy R & D BONDS now. Use them for graduation gifts’ They are the most practical gifts of all. You can get these BONDS from the Central Bank of the Philippines, the Philippine National Bank and its branches and agencies, the Na tional City Bank of New York, the Bank of America, the Philippine Bank of Com merce, and the Philippine Trust Company. In denominations of P20, P50, PI00, Pl,000, P5,000 and Pl 0,000. 96 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1951 HAVE YOU A NUT TO CRACK? Whatever your lubrica tion problem be, the SHELL LUBRICATION ENGINEER can solve it. Please call for his serv ices by contacting your local Shell representa tive, or by writing to one of our offices in Manila, Cebu, Iloilo and Davao. SHELL INDUSTRIAL LUBRICANTS THE SHELL CO. OF P.l. LTD. And what will the situation mean to the man in the drug business? His former selling problems have shifted to become buying problems. Increased taxation and in creased office paper-work to comply with government regulations, on one side, price ceilings and controlled volume, on the other side, will add to his cost of doing business. Obviously, he is facing times ahead more difficult than ever before. It will take all the resources and know-how he can muster, and the cooperation of overseas suppliers, for him to survive if that is possible at all. But, then, a number of affected business firms have faced hard times before and have overcome them as they added to their years and decades. Mention should be made of the fact that the former Philippine Wholesale Druggist Association has been re activated as the Drug Association of the Philippines to look after the problems and the welfare of member firms, the affected professions and industries, and the public in general, while the manufacturers and retailers have also grouped together. •An interesting development is the re-location in the trade that has taken place since the end of World War II. From a mere 10 to 15 regular pre-war importers and distri butors to about 30 considered active in the years following the war, the PRISCO has now issued import licenses to at least 114 firms of this category. This wider, in fact almost unbelievably wide spread, is very different from the situa tion in pre-war days when one old organization held what amounted to a monopoly. Other organizations have grown and moved up to important positions. It is worthy of note that some United States manufac turers have found it advisable to open full branch offices • here, some of which are about to bring local manufacturing plants of some extent into operation. This is the beginning of a serious and earnest local pharmaceutical industry, spearheaded by reputable United States organizations, which should receive total support from the authorities. ’Editor’s Note: A Molacan.in press release on March 9 announced that President Elpidio Quirino had thot day npproved the “unlimited importation of 165 medical items through PRISCO." Legislation, Executive Orders, and Court Decisions By Robert Janda Ross, Selph, Cariascoso & Janda THE only bill of importance enacted by the Congress and approved by the President during the month of February became Republic Act No. 594 amending Sec tions 183 through 188 of the National Internal Revenue Code. The most important provisions of these amendments provide, first, that locally manufactured articles are relieved from the advance payment of the sales tax at the time the articles are removed from the place of manufacture and that the tax is now payable quarterly. Second, the method of taxing imported articles is basically changed. Under the new law a formula is set up for collecting the tax at the time of importation not only on the landed cost but also upon the estimated differen tial between the landed cost and the price for which sold. No further tax is collectible upon the actual sales price. In the case of so-called luxury items, the estimated differen tial is 100%; in the case of semi luxury items, the estimated differential, is 50%; and in the case of all other articles, the estimated differential is 25%. Three decisions were handed down by the appellate courts which may interest the business community. In the case of Salonga vs. Warner, Barnts & Co., Ltd. (G. R. No. L-2246, January 31, 1951), the Supreme Court March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 97 held that the settling agent for a non-resident foreign insur ance company was not liable on the policy, though the Court indicated service on the non-resident company might be made on the settling agent. In the case of Berg vs. Teus (G. R. No. L-2987, Feb ruary 20, 1951), the Supreme Court stated that the mora torium did not prevent an action on a mortgage and en forcement of the subsidiary remedies given the mortgagee, though the Court indicated that enforcement of a money judgment on a mortgage might be suspended during the period of the moratorium. In this case plaintiff alleged waste of the mortgaged property and asked appointment of a receiver. The‘Court held that if the allegations proved correct, the receiver should be appointed in accordance with the provisions of the mortgage. It is interesting to note that the decision was by a unanimous court and that the question as to whether Executive Orders Nos. 25 and 32 (the moratorium) and Republic Act No. 342 (suspending the moratorium in part) were still in force, or if in force were constitutional, was expressly left open. The Court of Appeals in the case of Cuevas vs. Tolen tino (CA-G. R. No. 5616-R, February 22, 1951)*stated that the parties in an action on an obligation incurred during the Japanese occupation were entitled to prove by evidence introduced at the trial the actual value of the Japanese military currency at the place where the obligation was entered into and at the time the contract was made, and that the Ballentyne Scale would only be adopted by the Court in the absence of such proof. Other Chambers of Commerce Report on the Convention of Chinese Businessmen By Yang Sepeng Executive Secretary Philippine Chinese General Chamber of Commerce UNDER the present emergency when the nation needs the cooperation of all businessmen, President Sy En of the Philippine Chinese General Chamber of Com merce deemed it opportune to call a convention of all the presidents and vice-presidents of the various Chinese Chambers of Commerce throughout the Philippines. The leaders of Chinese communities from Aparri to Jolo came to Manila, 324 delegates attending the three-day confab, January 20-22, 1951, in representation of 124 Chinese Chambers of Commerce. INSURANCE FIRE - MARINE - CASUALTY ATLAS ASSURANCE CO. LTD. THE EMPLOYERS' LIABILITY CONTINENTAL INSURANCE CO. ASSURANCE CORPORATION Lid. LAW INION X ROCK INSURANCE CO.. LTD. INSURANCE COMPANY OF NORTH AMERICA E. E. ELSER, Inc. GENERAL AGENTS | Tel. 2-77-58 -401 Ayala Bldg., Manila — Cable “ELSINC” SMITH-CORONA PORTABLE One glance al the new SMITH-CORONA. . . and you’re convinced that it’s the moat beautiful and sturdy portable typewriter you’ve ever laid eyes on 1 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 CHRYSLER AIRTEMP PACKAGER AIR CONDITIONERS KmiGEKtTlON SALES^n SERVICE W.ACHITTICK&COJMC. mm distiiihitoi: 31 ROMERO SALAS, MANILA 98 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1951 Your Calling Card... Your Personal Stationery Is You! Are they engraved, printed or mono grammed in the best of taste? /</■? si de they do-see rs AOII.' ('boose Your Type: I lit' aecepled. familiar type faces of old or lilt* sinarl new lype styles of tomorrow. MMLOVGH PRimiG CO. PRINTING HEADQUARTERS SINCE 189!) (A DIVISION OF PHILIPPINE EDUCATION CO.) 1104 CASTILLEJOS, QUIAPO, MANILA • TEL. 3-24-70 DEPENDABLE IN WAN ON PEACE CATERPILLAR “Caterpillar” diesel engines, tractors, motor graders, and earthmoving equipment played a great role during the last war. Their out standing records stem from a rugged simpli city of design that leaves little chance of things going wrong. During peace-time, they are equally dependable because back of them stands a factory of high reputation for highquality products. r—KOPPEL—(PHILIPPINES) BOSTON & S3RD STREETS NC PORT AREA • TEL. 3-37-531 Branch*,: L Bacolod * Hollo * Ctbu * Davao * Cotabato * Zamboanga 1 The keynote of the convention was sounded by Pres ident Sy En in his opening message when he disclosed that the primary aim was ‘‘to give a full measure of service and to contribute to the best of ability in order to make the Philippines a secure, progressive, and prosperous country.” He elucidated: “I am proud to say that in any crisis with which the Philippines has been faced, the Chinese residents of this country, as a group, have never been found wanting. In the crisis, that impends, they are ready to take their share of every sacrifice necessary to insure the security of the Philippines, their second home, and they are prepared to con tribute to the fullest with Filipinos and the Government of the Republic of the Philippines in the execution of every measure designed to assure a maximum of unity and strength, without which resistance to Com munism cannot be effective. t “I urge the closest attention to the many grave problems with which the Philippine Government is beset today and I earnestly plead that we consider all possible means of assistance and cooperation in their solution, so that we may continue to live in peace and to prosper in this bountiful land. Without peace and prosperity for the whole country, no Chinese can ever hope to prosper, nor has he any right to prosperity, for our fate is inextricably linked with the welfare of the Filipinos.” Filipino leaders were invited to address the Convention so that the delegates might learn how best to cooperate through effective ways and means, and among the dis tinguished panel of guest-speakers were Vice-President Fernando Lopez, Senator Eulogio Rodriguez, Secretary Ramon Magsaysay, Commissioner Pio Joven, and Editor Modesto Farolan. The Convention, the first of its kind under the spon sorship of the Philippine Chinese General Chamber of Com merce, came to a close after adopting the following resolu tions to implement the program of complete cooperation with the Government of the Republic of the Philippines. 1. The Convention resolved to take definite and positive steps to fight black-market operations and abide by the Government’s price ceiling acts and regulations. 2. The Convention approved measures to encourage greater Chinese participation in the industrialization program and to help channel more investments into the productive enterprises despite the uncertain international situation. 3. The delegates agreed to discourage luxury and extravagant ways of celebrating weddings, baptisms, and other parties and social gatherings, and to observe a more austere way of living. 4. The Convention unanimously endorsed the Philippine-Chinese United Organization action in support of the anti-communist movement as announced by the Chinese Embassy, and resolved to take an active part in the anti-communist drive in the provinces. 5. The delegates also put themselves on record as greatly impres sed by the encouraging messages of high government officials and ex pressed their appreciation of President Quirino’s reception of their delegation at Malacanan. 6. The Convention honored three Chinese leaders, Ambassador Chen, Alfonso Z. SyCip, and President Sy En with citations for their valuable contributions toward promoting Philippine-Chinese relations pnd the welfare of the local Chinese community. In connection with the resolution of the Convention to participate more actively in the industrialization proMOTOR SERVICE CO., II. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area Tel. 3-36-21 March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 99 gram, the delegates decided to ask the Philippine Govern ment to give Chinese the opportunity to help more concretely in the effort to solve unemployment by allowing them to lease agricultural lands for the production of a raw materials. Philippine Safety Council By Frank S. Tenny Executive Director BY the time that this article appears in print, the Philip pine Safety Council will have held its annual general meeting on March 13, and the 1951 officers and board of directors will have been elected from the nearly 100 eligible members and company representatives. Fea tures of the meeting will have been the rendering of annual reports, adoption of plans and policies for the current year, display for safety and fire equipment, and special discus sions regarding expansion of the Council’s public-safety educational program. Nationwide accident statistics for last year are still being tabulated, but favorable trends have been noted in both Manila fire losses and Manila traffic accidents during 1950. Provincial reports may not be favorable, and de finite comment will be withheld Until all sources have been heard from. Governmental safety efforts are continuing. The Fire Prevention Board has been reassigned to the Office of the President and is now headed by the Hon. Teofilo Sison, head of the Civilian Emergency Administration. Mr. Al fredo Eugenio has been designated as Chairman of Group I of the Board, governmental participation. The Manila Mayor’s Traffic Committee and the Provincial Bus Ter minals Board both continue to meet twice monthly, al though progress in the latter group has been linjited by lack of funds. The Manila traffic situation continues to improve as more roads and bridges are rehabilitated and opened to general traffic. A bill has been introduced in the Philippine Congress to reconstitute the former Bureau of Industrial Safety as the “Accident Prevention and Safety Commission”. The Safety Council will participate in hearings on this bill. Encouraging trends are noted in new memberships in the Council, growing attention to safety by both mem bers and non-members, and cooperation from other groups, both civic and government. It appears that the “National Safety Movement” as inaugurated by the Council is de finitely gaining headway and a permanent status among the nation’s institutions. Specific matters in which the Council is currently interested include fencing all exposed areas along river and harbor fronts, reduction in pilferage of tools and tires from parked cars, establishment of emergency telephone lines to police departmentst and several other matters. The Council fully participated in the observance of Fire Prevention Week, March 1 to 7. The Council is also care fully exploring the possibilities of establishing an .emer gency ambulance service, a burglar alarm and protective service, and an armored-car service. All of these activities are needed at this time and should meet with a good public reception. AGENTS TELEPHONES BROKERS 3-34-20 CHARTERERS 3-34-29 liiiiTitiin Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama IMPORTERS EXPORTERS Keep Your Costs Down — Use Pasig River Bodegas GENERAL BONDED WATERFRONT WAREHOUSES Accessible by WATER or LAND Low Storage and Insurance Rates Lighterage Service 145 M. de Binondo Tel. 2-63-10 ^ELECTRIC POWER DOES ALL THE WORK! WHEN YOU W,TH A VAI E WORKSAVER IflLE ELECTRIC LIFT TRUCK THE WORKSAVER lifts and travels by electric power— reduces material handling to little more than a "stroll and steer”operation. High-Liftmodels stack skids, skid bins and pallets in space-saving rows. If you want faster handling and lower costs, get all the facts about 7 Worksaver models: Low-Lift Platform ... Low-Lift Pallet---- Tin Plate . . . HighLift Platform ... High-Lift Tilt ing and Non-Tilting Fork . . . Tractor. Capacities up to 6,000 lbs., depending on type. Phone or write for complete informa tion today. THE EDWARD J. NELL COMPANY 1450 Arlegui Street Tel. 3-21-21 Cable Address: “AMERSIIIP” 203 Myers Bldg. Port Area Manila TOOLS THAT KEEP INDUSTRY S y . . p ON THE MOVE . . . MADE BY \ IA Lt. LOO AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1951 New Stock Arrival for— Gift and specialty shops Gift-wrapping departments Manufacturers EXCELL-0 ribbon Beautiful—Brilliant—Modern A top favorite right through the year. Easy to tie—and surprisingly inexpensive! EXCELL-O rolled on ring device 1 I" width —500 or 1000-yard lengths. Plain trans parent and opaque Contact our Wholesale Department SILVER LINE. LTD. KERR STEAMSHIP CO.. INC 17 Battery Place. New York KERR STEAMSHIP CO.. INC. 350 California. S. F. SILVER JAVA PACIFIC LINE A instcrduin ,itot lerdnin & JAVA PACIFIC LINES JAVA PACIFIC LINE. INC. Broadway, NewYork TRANSPACIFIC TRANSPORTATION CO. 351 California Street, S. F. FAST DEPENDABLE SERVICE PACIFIC NORTHWEST DIRECT TO IN1LA ILOILO CEBU CALIFORNIA PORTS DIRECT TO ILOILO CI MANILA CALCUTTA PERSIAN GULF PORTS From CALCUTTA. COLOMBO. BOMQAY. PERSIAN GULF PORTS To MANILA PHILIPPINES Direct to Los Angeles, San Francisco, Portland, Seattle, Tanco PRINCE LINE, LTD. FROM S. ATLANTIC AND PACIFIC COAST PORTS TO MANILA U. For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS Tel. 2-96-41 3rd Floor, Trade & Commerce Bids., Juan Luna Tel. 2-82-01 COST OF LIVING INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1946 TO 1951 (1941 = 100) Bureau of the Census and Statistics Manila 1949 1946 | It"' | (59°.15) | House Rent (8.43) Clotli(0?62) Fuel, Light Misceland Water laneous ing Power (13.94) | (17.86) January........,. 603.4 759.2 236.4 984.0I 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.............. . 545.1 675.6 236.4 762.5i 342.3 409.6 .1835 June.............. . 538.7 666.4 236.4 737.9i 343.3 404.2 .1856 July............... . 552.7 704.3 236.4 598.91 341.3 364.6 .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) (14.84) January........ . 426.2 368.2 453.9 381.9I 326.2 282.5 .2346 February... . . 418.5 454.9 453.9 356.2I 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.a 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 f2556 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 1950 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 1951 _ _____ _____ ___________ _____ January .. . 355.2 3550 4539 331.5 2497 3346 .2816 February 358.4 359 8 453 9 342 8 249 7 334.4 2790 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 October......... . 352.8 351.1 453.9 337.3 249.7 334.5 .2835 November... 354.1 353.2 453.9 322 8 249.7 335.9 .2825 December. . . . 352.2 350.5 453.9 325.2 249 7 334.8 .2839 1 Average number ol persons in a family = 4.9 members. - 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. Subscribe to the JOURNAL and Keep Your Files Complete March, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 101 The ~ ■ “LET YOUR HAIR DOWN’’ The Journal has lost a number of its column editors since publi cation was resumed after the war,—most of them, fortunately, only because they left the Philippines to return to the United States, but some of them because of their death. One of these deaths was especially sad because it was that of a young, healthy man and came about from the mere scratch by a pet dog that was found, too late, to be suffering from rabies. But even this death was not so shocking as that of F. M. Gispert, who, late last month, was shot twice and instantly killed by a cowardly assassin hiding on the floor above as he was climbing the stairs to his office early that fatal morning. At this writing, the murderer has not yet been identified and, worse than any mad dog, is still loose. It is generally believed that the crime is connected with the notorious labor racketeering in the Port Area which the Bell Report described as “one of the most vicious in the country” ' and which Gispert had been courage ously combating despite the fact that a number of threats had been made against his life. Secretary of the Associated Steamship Lines, Mr. Gispert was an able and honorable man whose loss will be seriously felt in the business community, while for his wife and children, who had just brought him to his office in the family car, his bloody death was deeply tragic. It is a small matter now, but a fact that Mr. Gispert’s monthly article was always the first to reach us every month, as regular as the calendar itself. He was a man who could be depended upon. Yet his valuable life was cut short by some still nameless criminal, prob ably a creature of no more conse quence than that he had an automatic pistol, like so many miscreants these days who thus are the judges of our being and the determiners of our days.* "Since this was written, three Port Area union men have been apprehended, one of them confes sing to the murder, the two others being charged with complicity in the plot. yvT-E received the following letter, adW dressed to th ? editor, from Pres ident F. Dalupan, of the University of the East, in connection with an editorial in the February Journal: “I have read with a great deal of pleasure your editorial ‘Mr. Dalupan and Taxation of “Rich” and “Poor”’ in your issue of Feb ruary 1951, and I wish to extend to you my gratitude and at the same time confess a feeling of personal gratification that you have considered my views on the subject ====-=-==== co]umn worthy of your study and comment. Espe cially do I appreciate the apparent fact that we seem to be in general agreement on the problem of taxation. “I wish however to point out one small detail. The committee you referred to, of which I was the chairman, was created by the Secretary of Finance and I owed my appointment to him and not to the President of the Philippines. I presume that the Secre tary, being the head of a department under the President, had consulted the latter on the matter. But this is only a presumption and the plain fact is that the request ad dressed to me to serve on the committee was signed by the Secretary of Finance. “Reiterating my appreciation of your kind estimate of my familiarity with the subject of taxation and my recent comments on the same subject, I remain, etc.” vyy-E visited the fourth annual art exhibition of the Art Associa tion of the Philippines a few days ago held in the large showroom of the Manila Trading and Supply Company, Philippine distributors of the Ford Motor - Company. Other business firms contributed to the success of the exhibition, —the General Electric Co. (P.I.) provided the effective lighting fixtures, the Roxas Electric Company donated the labor and the materials for the lighting installations, and the Santa Clara Lumber Company loaned the ply wood panels used for the hanging of the pictures. The larger part of the prize-money was also put up by business firms and businessmen, Botica Boie, International Harvester Company, J. P. Htilbronn Company, Menzi & Company, Soriano & Com pany, the Estate of Wm. J. Shaw, the Manila Chronicle, the Ramon Roces Publications, Messrs. McCul lough Dick, H. P. L. Jollye, Charles Parsons, Gerald Wilkinson, etc. We may be sure that many of the buyers of those paintings and drawings and other works of art which were sold, were bought by business and profes sional men. This’is all as it should be. The support and patronage of the crea tive arts has always been the pri vilege, and we may say the moral obligation, of the more affluent who have the means to extend aid and the leisure to enjoy the result. This is because art lies outside the economic field. An artist creates because he must, because of the drive of genius in him, not to earn a wage or to make something to sell. Works of creative art can not be “produced” as articles of practical necessity are produced; they are not the product of management and (,’. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS—AGENTS SHIP BROKERS GENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE I VARAN LINES—FAR EAST SERVICE (Holler-Sorensen—Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) Sweden 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 Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO—YOKOHAMA NAGOYA—OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "SUGARCRAFT” all offices EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN LINE Service to U.S. Atlantic Via Straits, Suez, Mediterranean FERN LINE To and From North Atlantic Ports Gulf Ports—Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarifias St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) 102 AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1951 labor; costs can not even be estimat ed; both supply and demand are beyond control; values are chiefly sub jective; prices are largely a matter of caprice (or perhaps of “nerve”, whe ther on the part of the buyer or the seller). Artistic creation is not an eco nomic process,—as apart, of course, from the practice of the so-called applied arts. Economic and social conditions may be such as to stifle the artists in a society; yet under the best con ditions, works of art can not be manu factured on order. Not the most powerful government or any other institution can demand the produc tion of works of art. All they can do is to encourage the arts. Therefore it is that though art lies outside of economics, art has most generally flourished in those places where and at those times when com munities were the most prosperous and could extend such encourage ment. The fourth annual art exhibition of the Art Association of the Philip pines has been said to be one of the largest and most successful ever held in Manila. It certainly seemed to us to be the largest; whether it was the most successful from the point of view of the proceeds from the sale of art works, we can not say. But to us there was something inauspicious, something almost sin ister about the exhibition because it was held in that impressively large showroom of the Manila Trading Company, a room covering almost a city-block in area, yet empty except for the paintings and drawings. There was not a car or a truck in sight. The great building, representing a large investment of capital, was obviously not in use except for the purpose of the exhibition. We saw one of the effects of the government import control,—a deadly effect with respect to the country's transporta tion needs, and certainly also one most deadly effect with respect to the country’s overall prosperity. Is it Philistine to say that it would have been better not only for the country as a whole, but for the country’s art, if that showroom had many fine automobiles and trucks in it, rather than the pictures? The editor wrote Mr. Herdman, who edits the Food Products column, the following letter a few days ago: “Dear Mr. Herdman,—I was in Davao last week and you will be interested in something . Mr. Samuel Fraser said.. He asked me whether I knew what the best thing in the Journal was, and thinking he was referring to the latest issue, I mentioned the Hoskins article proposing a protective tariff instead of controls. But he said that he did not mean jucc the last issue, but every number, and then, of course, I thought he might want to flatter me about the editorials. So I said I did not know, and then he said: ‘Herdman’s monthly column. It is always interesting and informative, and straight from the shoulder*. Yours, etc ” We had to laugh when we happened to see this. “Such whimsy!” we said, knowing that the editor detests the whimsical. “Now don’t make me mad!” said he. “I only wanted to make a faithful collaborator happy by passing on an honest compliment.” “Yeh,” said we, “you have to keep stringing them along, you mean.” “You put it foully,” said the editor, “but between you and me, of course people are all more interested in mere victuals than anything else, especially now when, with a lot of money, you can buy only half a pound of butter at a time and no good cheese at all!” “Who cares about such higher things as edito rials?” we said. Subscribe to the Journal and Keep Your Files Complete. SERVICE WITH SATISFACTION i CUSTOMS BROKERS i WAREHOUSEMEN - • TRUCKING i PACKING & CRATING i FREIGHT FORWARDING i SHIP HUSBANDING i CARGO SUPERINTENDENCE i ARMORED CAR SERVICE i AIR CARGO AGENTS i FIELD WAREHOUSING LUZON BROKERAGE COMPANY Derhain Bldg. Cables: Telephone; Port Area LI BROCOIN 3-34-31 ★ LUZON STKVmmG COMMO, lit. Manila ★ conserve y o u r TIRES THE tire shortage continues— so get maximum service out of your tires by observing these SIX VITAL TIRE CON SERVATION RULES----Select the right tire for the job Maintain correct load and inflation IIHilllllllllllllllllllllllllllllllllllillllllllllllllllllllll Correct mechan ical irregularities promptly Repair and recap your tires while still serviceable For tire service advice, see us good/Vear 11th & Atlanta Sts. Telephones: Branches: Port Area, Manila 3-32-16, 3-38-07 Cebu—Bacolod—Iloilo Now smoke Chesterfields-they do smoke milder, and they leave NO UNPLEASANT AFTER-TASTE Virginia mayo w Gregory Peck %o-AtaPfiny in "CAPTAIN HORATIO HORNBLOWER* <X Warner tBrot.ffivduton by tfedtnUoto CiH ESTER Fl ELD ★ Virginia Mayo enjoys her coffee and o Chesterfield while the hairdresser arrange her hoir between scenes in the shooting Ol "CAPTAIN HORATIO HORNBIOWEB." Its the Easiest Test in the Book... OPEN 'EM • SMELL ’EM SMOKE ’EM Make the Tobacco Growers Mildness Test yourself.. .'Tobaccos that smell milder smoke milder* Compare Chesterfield with the brand you’ve been smoking...Open a pack...smell that milder Chesterfield aroma. Provetobaccos that smell milder smoke milder. Smells MILDER 'Smokes MILDER 'Leaves no unplemantaftertaste Listen to the Bing Cro.by 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