The American Chamber of Commerce Journal Vol. XXVII, No.6 (June 1951)

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Title: The American Chamber of Commerce Journal Vol. XXVII, No.6 (June 1951)
Issue Date: Vol. XXVII, No.6 (June 1951)
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fourth Floor, El Hogar Filipino Building — Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines J. A. Parrish, President; C. R. Leaber, Vice-President; F. J. Moore, Treasurer; R. J. Baker, J. H. Carpenter, Earl Carroll, J. T. Hicks, H. C. Stevenson, and Paul H. Wood. Marie M. Willimont, Executive Vice-President; I. T. Sa Imo, Secretary Vol. XXVII June, 1951 No. 6 Contents Editorials— The Iran Oil Dispute................................................................................................................................................................................................ 179 The “De-control” Dilemma ......................................... 180 The E.C.A. Agreement and Import Control.................................................................................................................................................. 181 “Report and Recommendations of the Advisory Committee on Large Estates Problems”............................................................................. 181 Highlights of the Landed Estates Committee Report........ .................................................... C. M. Hoskins............................................ 182 The Business View— Office of the President of the Philippines.............................................. Banking and Finance................................................................................................................ Manila Stock Market............................................................... .................................................... Credit............................................................................................................................................. Electric Power Production........................................................................................................... Real Estate.................................................................................................................................... Building Construction.......................... ................................................................................... Port of Manila............................................................................................................................. Ocean Shipping and Exports................................................................. Mining............................................................................................................................................ Copra and Coconut Oil................................................................................................................ Desiccated Coconut...................................................................................................................... Sugar............................................................................................................................................... Manila Hemp................................................................................................................................ Tobacco.......................................................................................................................................... Imports........................................................................................................................................... Food Products........................................................................................................................... Textiles......................................................................................................................................... Legislation, Executive Orders, Court Decisions................................................................ U. S. Government Agencies—U.S. Veterans Administration................................................... Cost of Living Index, 1946-1951........................................................................................................ The “Let Your Hair Down” Column................................................................................................... Official Source............................................. 183 G. A. Benson.............................................. 184 A. C. Hall.................................................. 185 W. J. Nichols............................................ 186 J. F. Cotton............................................... 186 A. Varias.................................................... 186 J. J. Carlos................................................ 186 R. L. Moore............................................... 187 J. G. Llamas............................................... 188 N. N. Lim.................................................... 188 K. B. Day and D. C. Keller.................. 189 H. H. Curran............................................ 190 S. Jamieson................................................. 191 F. Guettinger........................................... 192 L. A. Pujalte............................................. 193 S. ScHMELKES.............................................. 194 G. L. MaGee.............................................. 195 W. V. Saussotte......................................... 196 R. Janda...................................................... 199 U.S. Information Service............................. 202 Bureau of the Census and Statistics......... 204 205 50 CENTAVOS THE COPY |IN LESS TIME THAN IS USUALLY REQUIRED JUST TO COPY IT... THE USUAL STEPS OF REDUCED TO ... 1. Calculating 2. Writing and 3. Machine Checking 1. Calculating and writing in one ope ration (in less time than usually required for copying alone.) 2. Visual checking of quantities and prices. This new Burroughs machine brings new speed, simplicity and efficiency to your billing operation. It is world-famed for its fast and accurate operation. Call your Burroughs representative today. Let him show you all the new modern features of this great new Burroughs, the most COMPLETE billing machine built. He will show you how you can speed up your billing operation ... and at the same time lower your operating costs. Let Burroughs speed you on the way to greater efficiency and lower costs. Phil. Chamber of Commerce Bldg., Manila Tel. 3-20-96 WHEREVER THERE’S BUSINESS THERE’S Burroughs BURROUGHS DEALERS DAVAO CITY—(also for MINDANAO-SULU), Burroughs Sales Office; BAGUIO— Manuel Tarroja; LIPA CITY — Lontok’s; CEBU—Valeriano Alonzo; BACOLOD— Warner, Barnes & Co., Ltd.; ILOILO—Warner, Barnes & Co., Ltd.; DAGUPAN CITY—Villamil Bldg., Tel. 95. Editorials “ to promote the general welfare” It is a dangerous thing that the Washington State Department, in the serious Iran oil dispute, is again dis playing an attitude which may be and no The Iran doubt is being interpreted as indicating Oil Dispute that it lacks the courage of its convictions. On May 19, the State Department in a formal note “appealed for friendly negotiations between Iran and Britain to keep oil. flowing to the ‘free world’.” The note also stated, more firmly, that “the United States would ‘strongly oppose’ any arbitrary action”. • A “National Front” leader declared that this was “American interference” and another Government spokes man said that “Britain and the United States are pushing Iran closer to Russia and a communist revolution by op posing oil nationalization”. A few days later Secretary of State Dean Acheson told a press conference that he was “greatly surprised at Iranian resentment”. ‘‘He said that the United States had absolutely no intention to challenge Iran’s sovereignty or oppose her right to control her natural resources such as oil, but he reaffirmed the American Government’s hope that Iran would not take any unilateral confiscatory action against British oil interests there. The Secretary said that he hoped the Ira nians would realize that the United States is their sincere friend. He added that the United States had helped Iran in the past and intended to do so in the future. . .” On the 25th, the Iranian Government sent an “ulti matum” addressed to the “former” Anglo-Iranian Oil Company, giving this company, which is controlled by the British Government, one week “in which to talk things over or face nationalization with no representation at all”. “The ultimatum referred to the Iranian note of May 20, which informed the Company that Iran was prepared to discuss ‘legitimate claims’ by the A.I.O.C. and called for the appointment of a British representative immediately”. Probably no one in the Philippines is, or could be, fully informed as to details of the situation in Iran. It is known that the cost of oil production there is low, as com pared to the costs in other oil regions, and that the royalties and taxes paid by the British company might well be higher.! But ignorant as one may be of details, there are certain principles, accepted by the whole civilized world, which, legitimately applied, will lead nevertheless to clear and correct conclusions. In this case, a formal, legal agreement exists,—a 60year concession negotiated in 1933 (a revision of the original 1901 agreement), duly and voluntarily entered into between the two parties, and this can obviously not be violated by either party.* If the agreement allows for possible future nationalization at all, then this could justly be effected only by mutual agreement and upon due compensation which, actually, the Iran Government would be quite unable to pay. British investments in the Company are said to come close to $1,000,000,000, and such vast amount, or, for that matter, any capital, may not just be confiscated and appropriated by any government or government ad ministration. That is not “nationalization”, but simply a crime, and the bolder and vaster the robbery, the greater the crime. To think that any great corporation, representing thousands of stockholders, and especially a corporation 56% of the stock of which is held by a powerful govern ment, would tamely submit to such a criminal attack, is impossible. That there will be and must be resistance is a foregone conclusion. But more than that, the present dispute affects not merely a corporation, or the British Government, but the interests of the whole world as by far the greater part of all the oil used in Europe, both crude and refined, comes from the Near East and the Iran production is the largest in all of the countries of that region. There is furthermore the danger that the Iran example will fire the “nationalists” in these other countries, where American oil companies also have large holdings. Military authorities state that without the oil from the Near East, “Europe would be well-nigh indefensible”. If it were merely a matter of keeping the Iran Govern ment within proper bounds, the situation would not be so serious. Reason could be brought to bear, for this “national ization,” even if it could legitimately be carried out, would not be of any advantage to Iran itself, and if reason proved ineffective, then political pressure; certain police action could be taken if necessary. But what is most vicious about the situation is that the Iran extremists who appear to control the Government are making use of the menace of the world-threatening Kremlin regime as a shield in this gigantic looting attempt. An anti-Russian newspaper in Teheran has already reported that “a large number of Russian officers and civilians are slipping in disguise into northern Iran to commit crimes and stir up further unrest.” It has been authoritatively said that Russia could do the West more harm in Iran than on almost any other front. There can not be the slightest question that the loss, or even the threat of the loss, to Russia, of Western control over the Iran oil industry would precipitate another world war. That being so, this is no time for any mousy words. Britain and the United States, together, should make it absolutely clear that they will not permit the Iranian Government to continue on its present course, both be cause it is wrong in itself and because it holds such terrible danger to the entire world. Great wisdom as well as common sense is frequently embodied in everyday speech. The expression, “nip in the bud”, means to check some evil sharply as best to prevent its progress or fulfillment. That is what should be done in Iran, and our Government should not wait until the bud unfolds any further. This no time to speak of our own friendship and good intentions and of merely our hopes. The United States must tell Iran, and Russia, too, exactly where we stand, and take immediate action if that does not suffice. A fter the foregoing editorial was written, press reports indicated ■*^that the American State Department attitude was stiffening. Later, President Truman himself addressed a letter on the subject to the Iranian Premier. During the month, an old textile importer called our attention to the fact that he had noted from a list published in the newspapers one day that The “De-Control” PRISCO had issued a large number Dilemma of licenses for the importation of cotton thread. He took the trouble to add up the dollar amounts,—the items together made a two-foot-long strip on the adding-machine, and the total came close to $2,000,000. Later we learned that with other licenses issued for cotton thread lately, the total comes to around $4,000,000,—far in excess of any present needs and enough, in fact, for two whole years. Formerly, cotton thread was imported principally by only five firms, all of them with long experience in the business. Now, under government encouragement, there are hundreds of new importers of this item, very few of whom know what they are doing. Due to the artificial scarcity in thread, brought about, as in other such cases, by the Import Control, many of these new importers, seeing visions of great profits, have applied for licenses to import this item. Wise importers, looking at the lists in the newspapers, will probably cut down their orders, but many of the new importers will not. The result will be a glut, prices will go ’way down, and many persons will “lose their shirts.” Such over-ordering,—and other examples could be cited, and its results, may serve as a salutary lesson, but the general effect will be bad because it means at least a temporary destruction of good business in various lines of import, the bankruptcy of many inexperienced importers, and a useless waste of much-needed dollar-exchange. The sudden “de-control”,—or, rather, relaxation of control within definite limits, forced as this was because of the dangerous scarcities and the exorbitant prices brought about by past control policies, now also threatens great loss to those importers who ordered goods during past months. Licenses then were almost impossible to get legitimately, and they were virtually forced to pay high premiums for them, in order to stay in business at all, to the so-called “ten-percenters” who obtained them through various illegitimate means. These importers calculated on being able to cover this added cost in the prices they would be able to charge under continuing conditions of scarcity. The threatened flooding of the market now, at least in some lines, will catch them with dearly bought • merchandise which they will not be able to dispose of except at a large loss. We have been informed that this situation is worrying Manila bankers. As for the license-peddlers, who have been obtaining licenses not with the intention of importing themselves but merely to sell at a high premium to bona fide importers, these people are now unable to dispose of them and, having paid the two-percent license fee, are that much out of pocket. It is said that instead of demanding several thou sand pesos for turning over a license to an importer, they are now offering a few hundred pesos to the importer to take it off their hands, as in this way they will cut their loss! That these parasitic intermediaries should get their fingers burned is one good thing in the situation. Yet harmful as any present over-ordering may be, what else can PRISCO and the Import Control Office do than to relax the controls which have created such havoc with business and driven up prices to such impossible heights? Were PRISCO, in the case of cotton thread, for in stance, to take a past annual importation figure and an nounce that it would release licenses only up to that amount in value, the mad scramble for these limited licenses would start all over again and the ten-percenters would have another heyday. It is indeed far wiser for PRISCO to do just what it is doing,—throw the field as open as possible, even at the cost of the damaging effects which we have pointed out. And certainly it is not the function of PRISCO, or of the Import Control Office, to advise importers as to the wisdom or unwisdom of their orders; if that were made a function, it would be found a super human one. In coming to such a conclusion, it may be thought that this editorial lacks point as it seems that we have argued both against continuing the controls and against relaxing them. Actually what we have done is to show that the Govern ment is impaled on the two horns of a dilemma. Government trade controls do great damage at the time they are imposed and while they are imposed, and they do renewed damage when they are relaxed or removed. The imposition of government controls over the auto matic, delicately adjusted, self-regulating system of free enterprise, is always too coarse and rude an interference. It is like suddenly jamming on the brakes on a smoothly moving vehicle. Then, when the brakes are removed, further damage is done as the vehicle again leaps forward. The bull’s horns wound as they pierce the body, and they wound again when they are withdrawn. 180 The E.C.A. Agreement and Import Control In last month’s issue of the Journal we reprinted in full the “Economic and Technical Cooperation Agreement” between the American and Philippine Governments. This Agreement was signed by President Quirino and Ambassador Cowen on April 27 and was ratified by the Philippine Senate on May 14. There was no time for comment in last month’s issue and at this time there is not much left for us to say except that we are very happy about the Agreement. Judging by what the E.C.A. (Economic Co operation Administration) has accomplished in Europe, it should accomplish a great deal here. It means aid, and, more than that, aid wisely administered. And, more than that, it means true cooperation; provided, of course, that the Agreement is carried out in good faith by both parties, as we have no doubt will be the case. There is one important section in the Agreement that gives us especially high hope,—Section 5 of the Annex which is officially an integral part of the Agreement. This reads in part: “ Trade Arrangements “The Government of the Philippines will cooperate with other countries to reduce barriers to international trade and to take appro priate measures singly and in cooperation with other countries to elim inate public or private restrictive practices hindering domestic or international trade. It is understood that such restrictive practices referred to above mean those which: “(a) Fix prices, terms, or conditions to be observed in dealing with others in the purchase, sale, or lease of any product; “(b) Exclude enterprises from, or allocate or divide, any terri torial market or field of business activity, or allocate customers, or fix sales quotas, or purchase quotas; “(c) Discriminate against particular enterprises. . To our mind, this Section of the Agreement outlaws several features of the present Import Control, if not, indeed, the Import Control itself,—and precisely those features which have been doing the country the greatest damage. It will be not merely interesting, but a matter of vital importance to see how this part of the Agreement will be transformed into practice. “Report and Recom mendations of the Advisory Committee on Large Estates Problems’’ We may talk all we like about mechanizing our agri culture, industrializing, etc., and they are important, but there is the imperative neces sity, fundamental to the pro gress of our whole economy, of developing “a large population element of independent work ing farmers”, to use an expres sion taken from the “Report and Recommendations of the Advisory Committee on Large Estates Problems”*. Such independent small farmers, prosperous and contended, comprise still far too small an element in our population, and far too large an element is that comprised of depressed tenant farmers, victims of absentee landlord ism and, too often of late, of criminal communist leader ship. We shall never have a soundly based economy, nor true democracy in this country until the problem, presented by this wretched class has been solved, and it can be solved only by transforming it into a class of small farmers work ing their own land. The Report alluded to is that of a group of Manila realtors, invited by Dr. Salvador Araneta, Administrator of Economic Coordination, to submit their recommenda tions on this major economic, and social, and political, problem. The Committee, headed by Mr. C. M. Hoskins, *■ Published by the Office of Economic Coordination. has done an outstanding piece of work. A short summary of the Report, written for the Journal by Mr. Hoskins, is published in this issue. Reading the Report, one is struck by its comprehen siveness and competence, and one wonders why it never occurred to anyone before to ask a group of trained and experienced real-estate men to submit their recommen dations. The Committee merits high praise for its work, but the Manila Realty Board also for offering to make the study, and Dr. Salvador Araneta for promptly accepting the offer. The Journal has touched on the problem in the Feb ruary, April, and May issues, and facts and figures have been published showing that after the large and successful purchase and subdivision of the so-called friar lands, during the Taft administration nearly fifty years ago, the Govern ment virtually stood still in the matter until 1938 when the Government, under President Quezon, again began the purchase of large landed estates and ultimately acquired some thirty of them, together comprising an area of con siderably less than one-third of the area of the Taft pur chases. The war, of course, interrupted this activity but even up to the present time, only 16 of these estates have been subdivided, 8 have been “partially” subdivided or are in progress” of being subdivided, and nothing has as yet been done m subdividing the other 6, these including some of the largest. And whereas the friar land purchases amounted to around P 14,000,000, and over P25 000 000 was collected from the tenant-buyers, the later, though more limited, purchases amounted to nearly P18,000,000 on which, however, only around P3,628,000 has been collected. . The Rural Progress Administration, which made and administered these later purchases, was recently abolished by President Quirino and its functions were turned over to a Landed Estates Division created for the purpose in the Bureau of Lands, but the Report of the realtors’ com mittee points out that the Bureau of Lands is not organically suited to administer landed estates problems and instead recommends the creation of some entity for the purpose similar to the National Land Settlement Administration (LASEDECO). The Report recommends that purchases of large estates in the troubled areas be given priority. It recom mends against the purchase, however, of lands of marginal quality unless this is due to the impoverishment of a soil that can be restored. It also recommends in general against the purchase of estates of less than 1,000 hectares in area because this is a sound economic unit for certain types of agriculture. As for the size of the lots to be sold to the present tenants, the Report recommends only such units as can be farmed by one family,—two or three hectares in the case of rice-lands. To avoid the partitioning of such small units into still smaller units through inheritance, the Report suggests that the landed estates agency should be authorized to finance the purchase by the oldest son of the interests of the other heirs. While it is realized that the Government has done far too little to solve the country’s tenancy problems, the Report points out the still more alarming fact that the present manner of disposing of public lands is leading even to an extension and augmentation of tenancy conflicts. Says the Report: “Some thirty years ago vast areas of public domain in Nueva Ecija were opened up for settlement. Many of these large tracts are now critical centers of tenancy conflicts. A similar situation is develop ing in Mindanao. The Government should immediately give considera tion to this tendency to perpetuate tenancy conflicts and to promote absentee landlordism through the disposition of public lands.” In connection with the landed estates statistics pub lished in this Journal in the issues already mentioned, an effort was made to obtain figures as to the number and areas and locations of outsize landed estates throughout 181 the Philippines and it was found that no organized data on this matter exists. The Committee discovered this also and recommends that a census of such landholdings be made forthwith, which, it believes, could be done through a microfilming process of assessment and title records, but the writer wonders whether data adequate to the matter could not be obtained more rapidly by a mere listing of the larger landed estates by the municipal au thorities throughout the country who could be instructed to send such lists to Manila for compilation. One of the mbst interesting and valuable sections of the Report covers the offer of a number of civic-spirited realtors in Manila to form a group to administer a “Landed Estates Pilot Project*' if an available estate can be found reasonably near the city.. States the Report: “They do not expect to make any direct profit from their services. They are very eager to see ethical real-estate practices extended to the rural areas, which heretofore have not enjoyed the services of competent real-estate brokers and appraisers. If such a plan were carried out, opportunity would be given for the government officials concerned to observe all details of the operation.” Such a Pilot Project would provide for a practical test of the plans outlined in the Report, and our hope is that the Government will accept the offer and have such a project undertaken without loss of time. We have not attempted to review the whole Report and even Mr. Hoskins’ article in this issue covers only a few of the “highlights”. The Report should be read in its entirety and to this end we hope that sufficient printed copies will be made available for the study of all who are interested in the question. Within its field, it ranks with the Bell Report in importance. Highlights of the Landed Estates Committee Report By C. M. Hoskins Chairman, Advisory Committee on Large Estates Problems AMONG the many recommendations in the Report of the Economic Survey Mission to the Philippines, popularly called the Bell Mission, there appears the following: “A broad program should be inaugurated of acquiring large estates at fair value for resale in small holdings to tillers of the soil." This recommendation was in line with a long-standing demand of the people of the Philippines, which was finally confirmed by the Constitution. The Constitution specifi cally authorizes the expropriation, with just compensation, of lands to be subdivided into small lots and conveyed at cost to individuals. Before the war, agencies had been set up to carry out such a program, but progress was slow. The procedures were unsatisfactory to land owners and the results brought little added prosperity to the, buyers of lots in the rural estates. Last February, Dr. Salvador Araneta, Administrator of Economic Coordination, was guest-speaker at a meeting of the Manila Realty Board. The realtors criticised the slow progress of the Government in carrying out this phase of land reform, and Dr. Araneta tossed the problem right back into the laps of the realtors by asking for an advisory committee from among their members to submit a report and recommendations on this major social and economic problem. The Manila Realty Board accepted this challenge to public service, and on February 28, 1951, Dr. Araneta named a Committee consisting of Realtor C. M. Hoskins, as Chairman, and Realtors Quirino Gregorio, L. R. Ildefonso, Celso B. Jamora, and C. S. Gonzales as members. He gave the Committee but a month to submit its report, so it immediately got busy, held numerous meetings, and consulted as many individuals and books and documents as it could, to throw light on the subject. The Report was finished on April 5, 1951, and has now been published. It runs to 68 pages which only those directly interested in the subject may have the patience to read, but a summary of the Committee’s findings and recommendations should be of interest to everyone, even in Manila. We all know that Manila prospers only to the extent that the agricul tural sections of the country prosper. The Committee came to the conclusion that the mere redistribution of land would not alone bring contentment to the small farmer. With it, there must be a distinct im provement in his prosperity-level, through better farming methods, crop-diversification, more crops per year, use of fertilizer, the extension of irrigation, and subsistence farm ing. Furthermore, it is stated that an improved social environment is necessary to bring greater contentment to tenant-purchasers, including recreational facilities. It is recommended that the Government follow the practice of city subdividers in developing an estate properly before lots are sold. Where necessary, irrigation should be provided, barrio roads built, depleted soil restored to richness, and the land otherwise improved, before sale, so that the buyer can start out with a fair chance of success. All of these improvements would be added to the cost of the land, to be paid for over a term of years. By preparing the land for greater production prior to sale, the tenant purchaser’s income would be raised arid consequently his paying capacity. To minimize losses to the Government and to the purchaser, group life-insurance is recommended for all those who buy farms on the instalment plan. Thus, in case of death, the obligation to the Government would be met, and the widow or children would obtain a clear title to their farm. The Report emphasizes the “Family Farm,”—of a size sufficient to support one family, as the basic unit of estate subdivision. Yet to bring about a distinct rise in the living-level, supplementary occupations are needed. The Committee recommends an aggressive campaign to encourage home industries as a means to this end; also the encouragement of industrial enterprises to locate in rural areas. Heretofore purchasers of lots in landed estates have been given 10 years in which to pay. This has proved so unrealistic that an alarming percentage of buyers are today far behind in their payments. It is therefore recom mended that this term be changed to 30 or 40 years, which would bring the annual payments closer to the paying capacity of the small farmer. It is also urged that sales contracts heretofore entered into be amended to grant this longer period of time. The financing of estate-purchases is given considerable attention. Competent valuation before attempting a purchase is emphatically recommended. The'basic policy of the Government should not be to determine how cheaply an estate can be acquired by forcing the owner to sacrifice values, but rather to discover what would be a fair and just price as determined by expert valuation. 182 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen Office of the President of the Philippines From an Official Source MAY 1—President Elpidio Quirino signs House Bill No. 1569 ex tending the Price Control Law for another year,—up to June 30, 1952. May 2—In a brief talk with newsmen, President Quirino states that the Government intends to press its reparation claims against Japai. ■If Japan is not at present in a position to make good the original $8,000, 000,000 reparations claim of the Philippines, it could at least start considering paynent of the $2,000,000,000 unsatisfied private war-damage claims filed by Filipnos." Regarding the distribution of fertilizers to be received here shortly in connection with the ECA assistance program, he states it will be un dertaken by a committee of representatives of the Philippine Council for United States Aid and the ECA Special Mission here, proceeds of the sale to go to the Counterpart Fund. May 4—The President signs the Death and Disability Gratuity Bil before 5,000 cheering servicemen of the Armed Forces of the Philip pines brought together at Malacanan for the occasion. The President confers with Secretary of Economic Coordination Sdvador Araneta and Secretary of Justice Jose P. Bengzon on the recent resignation of Col. Andres Soriano as General Manager of the Philippine Air Lines. May 5—The President on receiving a delegation of the Philippine Air Lines’ employees- association, states that the Government wishes to retain the services of Colonel Soriano as general manager of PAL aid is trying to persuade him to remain. May 7—The President tells a group of wives of officers and men <f the 10th Battalion Combat Team in Korea that replacements are teing sent there as fast as the available transportation makes this possible; two fresh companies have already reached Korea and two nore are on the way. May 8—Malacanan announces the reinstatement of suspended Governor Vicente L. Pimentel of Surigao following his acquittal by the Court of First Instance of a charge of arson. Following a Cabinet decision favoring the move, the President instructs Secretary of Foreign Affairs Carlos P. Romulo to negotiate with the United States Government toward securing title to the sunken ships in Philippine waters. Because of United States claims of owner ship, the Philippine Government has been unable to clear Manila Bay of these derelicts considered a menace to navigation. May 10—The President appoints an eleven-man committee to study of the draft of a peace treaty with Japan proposed by the United States, composed of a number of members of Congress and of the Ca binet and Judge Guillermo Guevara and Mr. Gil Puyat. The President refers the draft of a management contract to be entered into by the Government and Colonel Soriano to Secretary of Justice Benjgzon for study. May 11—Following a Cabinet discussion, the President signs instructions to the Price Stabilization Corporation “de-controlling” 19 types of imports as against some 40 items as recommended by the Monetary Board, Secretary of Commerce and Industry Cornelio Balmaceda and Secretary Araneta pointing out that certain of the Board’s items were already “de controlled” or not subject to any “ceiling”. May 12—The President attends the inauguration of Roxas City (formerly Capiz) and delivers a tribute to the late President. The President signs House Bill No. 1382, which becomes Republic Act No. 613, authorizing the President of the Philippines "to control, curtail, regulate, and/or prohibit” the exportation or reexportation of materials and supplies including foodstuffs and medicines suitable for military use. Following the decision of Judge Oscar Castelo, of the Manila Court of First Instance, yesterday, ending a 6-months’ trial and con demning 6 communist “politburo” men and women to death, 9 others to life imprisonment, and 11 more to shorter prison terms, 3 others being acquitted, on charges of rebellion, with multiple acts of murder, robbery, and arson, the President certifies as urgent two bills before Congress which would increase the penalties for the crime of rebellion and insurrection and augment certain powers of peace agents. The Committee proposes that bonds be floated to finance estate purchases, believing that if the terms are made attractive, there would be a local market for such bonds. To make them attractive, it is proposed that they should be tax-exempt, and pegged to the dollar. The Advisory Committee warns the Government against permitting new agrarian problems to develop or to spread in selling large tracts of the public domain. Such problems are already becoming acute in parts of Luzon and Mindanao which not so long ago were public domain. Buyers of these public lands are steadily extending the traditional tenancy system to these new holdings! Hand in hand with landed estates redistribution, the Committee calls for better enforcement of tenancy laws, and better rural-credit facilities. It advocates converting the rural money-lenders into rural bankers by giving them rediscount facilities sufficient to make rural banks highly profitable. The Committee criticizes past attempts to extend credit to small farmers, as being centralized in Manila or entrusted to municipal employees without suffi cient training. It believes that rural banking facilities should be operated at the grass-roots level by capitalists who know local values and local credit reputations. Manila intervention should be largely in the rediscounting of the loans made by the rural banks. One difficulty that confronted the Advisory Committee was the lack of adequate factual data on the extent of large landed estates operated under the kasama or tenancy system. No long-range program is possible unless the probable total financial and operational needs are known. The Committee knows that there is agrarian unrest of a dangerous character in many estates operated under the tenancy system, but how many such estates there are and how many people are involved nobody knows. Therefore an immediate, speedy, complete, and inexpensive census of land-holdings throughout the Philippines is recom mended. This, it is thought, can be done by micro-filming all assessment and title records, and gathering the precise information needed by machine-sorters in Manila. The Committee briefly reviews the redistribution of land in other countries. The most recent national land reform has been in Japan, where in two years, under a directive of General Douglas MacArthur, the Japanese Government has revolutionized land tenure. The absentee landlord has disappeared and land operated by tenants in Japan has dropped from 46% to only 12% of the cultivable area. In his desire to further democratic processes in Japan, SCAP saw to it that the program was implemented at the municipal level. Over 11,000 municipal agrarian com missions carried out the task. Speaking at the United States Senate hearing recently, General MacArthur de clared: “I don’t think that since the Gracchi effort at land reform in the days of the Roman Empire has there been anything of that nature quite as successful [as the Japanese land reform].” The Advisory Committee on Landed Estates Prob lems considers its Report preliminary in the sense that it was prepared in but a short period of time. Many major phases need amplification and detailed study as to proce dures. The members hope that their efforts will prove of some value to the nation. The realtors of Manila are second to none in their zeal to see the rural populations developed into a more prosperous, more contented, and more lawabiding citizenry. 183 May 13—The President directs Secretary of Foreign Affairs Romulo to initiate action with the American Embassy for the setting up of a joint commission on claims which the two Governments have against each other, as recommended in the Bell Report. "The Philippines has a total of P828.000.000 pending claims against the United States. This includes the claims of the Armed Forces amounting to P800.000.000, and P28.000.000 in claims filed by various units and instrumentalities of the Government... for rentals, damages to property, or services rendered.” May 15—The President signs a number of bills of minor importance. May 17—The President designates Secretary of Justice Bengzon to investigate charges of trafficking in dollars by certain officials of the Central Bank. The President, speaking before members of both Houses of Congress gathered at Malacanan for the traditional luncheon, states that the Congressional session which will end tomorrow has been “fruit ful of fundamental legislation” and expressed his gratitude to the mem bers for their “cooperation in the Government’s program of economic development and military security.” May 18—Congress having adjourned today still dead-locked on the 1952 appropriations bill, the President issues a call for a 10-day special session to open immediately. The Philippine Embassy in Washington has informed the Govern ment that the United States Congress has extended the period of exist ing charters of U.S. Maritime Commission vessels to Philippine citizens up to 1954. May 19—The President, accompanied bys Secretary of Defense Ramon Magsaysay, Brig. Gen. Calixto B. Duque, and others flies to Zamboanga on the Laong Laan on the first leg of a trip south. May 20—The President, now on the S. S. Apo, visits a number of plantations on Basilan, including that of the American Rubber Com pany and the rubber plantation of the University of the Philippines there where some 1,200 trees are already being tapped. May 21—The President and his party reach Jolo. May 22—The President and his party visit the Turtle Island group, southernmost Philippine outpost, turned over by the British in October, 1947. Later in the day the party reached Sandakan, British North Borneo, and, met by Governor Sir Ralph Hone, is given a rousing welcome. May 23—The Presidential party leaves Sandakan and visits Cagayan de Sulu. May 24—The party visits Brooks Point, south-eastern Palawan, and sails for Puerto Princesa. May 25—The Presidential party returns to Manila by plane. The President informs the Cabinet of his desire to promote legitimate trade between the Philippines and Borneo as this would help to bring the largescale smuggling between Sandakan and Jolo to an end. He instructs the Department of Health to assign charity doctors to Cagayan de Sulu and Brooks Point where at present the people are without doctors. He instructs the Armed Forces to assign a patrol launch to the area to check the smuggling there. The President issues Proclamation No. 253 designating the period from July 4 to July 10 as “Fifth Anniversary Week”. May 26—The Philippine Association, a group of leading Philip pine businessmen, will observe the Fifth Anniversary Week as “Philip pine Achievement Week”; the executive committee is headed by'Secre tary Romulo who is also President of the Philippine Association. Malacanan announces that Maj. Gen. Mariano N. Castaneda, who returned from the United States a few days ago, “offered to retire to give a chance to Brig. Gen. Duque to continue his good work as Chief of Staff”, and that he is now on terminal leave. The President instructs Secretary of Commerce Balmaceda, who leaves today for Montreal, Canada, to head the Philippine delegation to the International Civil Aviation Organization Conference there, to “establish working relations with Philippine consulates and legations abroad for the active and vigorous promotion of the Philip pine export trade”. May 27—Malacanan announces that the Government has granted the request of the Aluminum Fiduciaries, Ltd., of Canada that it be permitted to send a resident representative to Manila to facilitate the introduction of an aluminum-using industry here to supply the local demand for aluminum products; the Company proposes to send Dr. J. C. Hsia, formerly its branch manager in Shanghai. The Govern ment acted on the recommendation of Economic Coordination Admin istrator Araneta. May 28—The President inducts Florencio Selga as Chief of Con stabulary, with the permanent rank of Brigadier General. May 29—Congress adjourns its special session after passing the General Appropriations (Budget) Bill providing for an outlay of P386,849,771 during the fiscal year beginning July 1. The Department of National Defense appropriation is the largest,—P175,760,691, with the Department of Education appropriation as the second largest,— P135.102.525. [The President originally requested a total of P415,000,000, and the Bill as passed carries P15,000,000 less than the original House measure but P34,000,000 more than the Senate version. The controversial item of P500.000 for Malacanan technical advisers, which the Senate reduced to P250,000, this being the chief stumbling-block to the passing of the Budget, was finally approved in full by the joint committee. Other money bills, including the P51.000.000 Public Works ("Pork Barrel”) Bill, the P50,000,000 "Counterpart Fund” Bill, $6,000,000 for expenses in the coming November election, P25,000,000 for the creation of 10 additional combat battalions, etc., will swell the total outlay for the fiscal year to around 1*532,000,000. Govern ment expenditures during the fiscal year 1950-51 were estimated in the Bell Report at P506.310.000, with an estimated deficit ofP190,750,000.1 A breakdown of the general appropriations bill according to the variom exe cutive departments and the other branches of the.government follows: Ordinary Expenditures: Senate, P2,272,120. House of Representatives, P4,263,550. Office of the President. P6,831,560. Office of the Vice President, P73.210. Department of Foreign Affairs, P4.566.090. Department of Finance, P5.999.950. Department of Justice, P9.088.350. Department of Agriculture and Natural Resources, P4,713,320. Department of Public Works and Communications, Pl 1,303,420. Department of Education, P134,382,525. Department of Labor, P84 9.600. Department of National Defense, Pl 19,613,595. Department of Health, P10,585,590. ’ Department of Commerce and Industry, P3,051,470. Office of Economic Coordination, P446.720. General Auditing Office, Pl,123,420. University of the Philippines, P3,267,200. Philippine Normal College, P424.720. Central Luzon Agricultural College, P259.445. Commission on Elections, Pl 21,560. Supreme Court, P445.780. Court of Appeals, P526.170. II. Extraordinary Expenditures: 1. Office of the President, P476.100. 2. Department of Finance, P285,750. 3. Department of Justice, P56.120 4. Department of Agriculture, P2,543,890. 5. Department of Public Works, P43.200. 6. Department of Education, P720.000. 7. Department of National Defense, P56,147.096. 9. Department of Health, P2,128,250. 10. Department of Commerce and Industry, Pl92,000. 11. Office of Economic Coordination, P48.000. The President instructs Budget Commissioner Pio Joven, Chair man of the Liquidation Commission, to expedite the sale of former •Japanese landholdings in Davao to veterans settled there; the lanes cover some 34,000 hectares planted to abaci and coconuts. A three-man committee,—Col. Mariano Azurin, Army Chief of Ordnance, a representative of the Auditor-General’s office, and a representative of local dealers in firearms has been appointed to fix a purchase price for the firearms deposited by local dealers with the Philippine Constabulary at Camp Crame, as it has been decided that the Government will buy the arms for resale to various government agencies that need them. The arms were deposited with the Constabu lary following an order in December, 1949, prohibiting the sale to private individuals of arms of more than 22 caliber. Some 13,000 firearms of various types are now on deposit together with some 2,500,000 rounds of ammunition, and the dealers have protested about the loss involved. Some P2,000,000 will be needed to purchase the arms. May 30—A new contract is signed at Malacanan with Col. Andres Soriano for the management of the Philippine Air lines, Secretary of Justice Bengzon signing for the PAL board. Colonel Soriano states the contract reaffirms the powers originally given him and “respects the historic right of management to manage. . .At the same time the contract continues to recognize, as in the past, the policy-making func tions of the Board of Directors”. The President signs the ad interim appointment of Ambassador Domingo Imperial as Chairman of the Commission of Elections, vice Vicente de Vera, deceased. Imperial is now in Djakarta as Ambassador to Indonesia and is expected to return to the Philippines shortly. The President administers the oath of office to Luis Manalang as acting Director of the newly created Placement Bureau of the Depart ment of Labor. May 31—The President, at ceremonies in Malacanan, receives the credentials of the new British Minister Frank S. Gibbs. Banking and Finance By G. A. Benson Sub-Manager, Port Area Branch National City Bank of New York COMPARATIVE statement of condition of the Central Bank: As of Dec. 31 As of Feb. 28 As of March 31 As of Apr. 27 ASSETS 1949 1951 1951 1951 {In thousands of Pesos) International Reserve. . P460.689 P554.565 P579.119 P583.098 Contribution to Interna tional Monetary Fund. 30,000 30,000 30,000 30,000 184 Account to Secure Coinage................................. 113,306 113,306 107,570 107,570 Loans and Advances.. .. 77,047 49,418 55,863 47,338 Domestic Securities .... Trust Account—Securi92,197 164,181 163,088 163,197 ties Stabilization Fund — 6,848 6,848 6,848 Other Assets.................... 20,390 53,619 56,562 61,208 LIABILITIES P793.629 P971.937 P999.050 P999.259 Currency—Notes............ P555.576 P655.634 P664.360 P671.052 Coins............. 74,384 91,713 92,680 93,735 Demand Deposits—Pesos Securities Stabilization 117,682 175,494 194,213 173,224 Fund............................. Due to International 2,000 6,848 6,848 6,848 Monetary Fund.......... Due to International Bank for Reconstruc 22,498 496 497 499 tion and Development. 2,389 2,385 2,383 21,275 2,383 Other Liabilities.............. 2,636 17,461 33,671 Capital............................. 10,000 10,000 10,000 10,000 Undivided Profits........... 6,464 10,290 3,105 4,157 Surplus............................. — 1,616 3,689 3,689 P793.629 CONTINGENT ACCOUNT P971.937 P999.050 P999.258 Forward Exchange Sold. P 6,460 — — — *t*he international reserve again increased in April by -*■ P3,979,000. Notes and coins in circulation also increased by P6,692,000 and Pl,OS'S1,000, respectively. The small change shortage was somewhat easier during May as the first shipments of the new paper currency in 5-, 10-, and 20-centavo denominations arrived by air. As further shipments are received, the situation should continue to improve. On May 11 the Government relaxed import restric tions on another long list of essential goods. Government authorities believe that the easing of controls on essential items will not endanger the nation’s foreign exchange position due to the appreciable improvement of the inter national reserves of the Central Bank since December, 1949. This improvement in dollar reserves has been ac counted for largely by the favorable trend in foreign trade. With the. relaxing of import restrictions, PRISCO and ICA issued a substantial volume of import licenses with the result that banks made substantial remittances and opened a large volume of credits. The cost of remit tances, margins on credits, plus the 17% excise tax on sales of foreign exchange have taken a corresponding amount of cash out of the hands of merchants. Money, however, continues relatively easy. qpHE records of the Securities and Exchange ComA mission show the following amounts of capital actually paid in at the time of registration of new corporate enter prises in the post-war period: 1945—P9,600,000; 1946— P20,600,000; 1947—P25,400,000; 1948—P17,500,000; 1949 —Pl7,300,000; 1950—P44,000,000. The figures for 1950 indicate that import and exchange controls have had a favorable effect in stimulating investments in new manu facturing enterprises as the amount of paid in capital so invested in 1949 was Pl,900,000, whereas the figure jumped to P20,000,000 in 1950. Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas & Company April 23 to May 18 DURING the past two weeks, the inflationary pressures which have been adversely affecting the economy for some months past have perceptibly slackened, and the outlook, meantime, has changed to one of mild disinflation. In sympathy with the foregoing, also some tightness in the speculative money supply due to tax pay ments, mining shares have developed an easier tendency. The local market price for gold has also declined and is now quoted around Pl45 nominal per fine ounce, as buyers have retired to the sidelines for the present. In the Commercial and Industrial section of the market, values have held steady to firm, with the leading sugars showing some advances on investment buying. 1950-51 Range MINING SHARES High Low Close Change Total Sales 126.83 61.71 0.295 0.09 o0.^2 0.13 0.04 3.50 1.78 i'E 0.25 .08 0.135 0.042 0.20 0.01 0.09 0.06 0.27 0.14 .375 .345 .345 Off .03 ■ w 185 Credit By W. J. Nichols General Manager, General Electric (P.I.) Inc. DURING the past few months, collection problems of indentors and wholesalers have not been too serious. Restrictions in the granting of import licenses resulted in liquidations of working stocks of merchandise on hand and corresponding increases in the amounts of cash avail able for settlement of debts. As inventories decreased and shortages developed, many importers adopted a strictly cash basis to reduce collection expenses. The last quarterly survey of its members by the Association of Credit Men indicated that almost 37% of sales were for cash while about 80% of receivables were in current condition. On March 31, total trade accounts, as shown by the survey, were equivalent to an average of only 25 days’ billing. We look for an increase in the amount of credit granted in the near future. Recent de-control of certain necessary commodities, coupled with the imposition of the 17% excise tax on purchases of exchange and collection of ad vance sales-taxes, have all contributed to reduce accumula tions of cash. Unusually long deliveries from foreign sup pliers may also help to tie up funds and reduce inventory turnover. Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company with a total value of P3,720,178, were sales within the cities of Quezon and Pasay, and in the suburban towns of Caloocan, Makati, Malabon, Mandaluyon, Paranaque, and San Juan. Among the bigger sales registered during the month in the City of Manila were: A property with a lot of 537.50 square meters on Azcarraga Street, San Nicolas, sold by Far Eastern Investments Corporation to Antonio Begrado Dy & Company for P265.000; A property with a lot of 3,217.54 square meters on Recuperada Street, Paco, sold by Isabel Farre Andres to Domingo Yu Chu for P100.000; A property with a lot of 1,645.39 square meters on Dakota Street, Malate, sold by Jesus Medina to Celestino Mendiola for P100,000; A property with a lot of 1,329.6 square meters on Legarda Street, Sampaloc, sold by Mariano Tuason y Angeles to Ambrosio Padilla for P80.000; and A property with a lot of 530.20 square meters on Pennsylvania Street, Malate, sold by Cesareo Grau to Manuel Teves, Inc., for P78.000. Real estate mortgages registered in the Greater Manila area during the month of May, 1951, numbered 405, with a total value of P6,508,347, as compared with 358, with a total value of P5,289,762, registered during the month of April. Of the May total, 233, with a total value of P2,754,456, represented deals within the cities of Quezon, Pasay, and in the suburban towns, while 172, with a total value of P3,753,891, represented deals within Manila proper only. REAL ESTATE SALES (January to May, 1951) 1941 Average—15,316,000 KWH January.. February March.. . April.... May....... Manila Quezon City Pasay City Suburbs Total P4,466,475 3,549,050 4,562,104 5,272,052 2,586,055 Pl,267,690 3,775,341 1,698,970 1,178,036 1,394,514 P743.346 709,598 645,878 487,954 819,779 Pl,453,264 1,411,773 1,814,525 1,738,654 1,505,885 P7,939,775 8,445,762 8,721,477 8,676,696 6,306,233 January............................................ February......................................... March.............................................. April. .’............... ......................... May................................................. June................................................. July.................................................. August............................................. September....................................... October............................................ November........................................ December........................................ KILOWATT HOURS 1951 1950 40,713,000 37,661,000 37,066,000 33,828,000 40,117,000 38,107,000 39,197,000* 35,378,000 40,420,000** 37,611,000 37,529,000 38,774,000 39,872,000 38,791,000 40,657,000 39,268,000 41,099,000 January.. February March... April.... May....... P2,105,600 5,636,640 3,817,877 3,140,154 3,753,891 REAL ESTATE MORTGAGES (January to May, 1951) P 490,457 1,106,948 1,373,880 902,932 1,150,614 P272.300 869,100 245,760 188,750 372,032 Pl,051,546 1,722,790 1,970,627 1,057,926 1,281,810 P3,919,903 8,334,848 7,408,114 5,289,762 • 6,508,347 Total................................. 458,576,000 ♦♦Partially Estimated way output was 2,809,000 kwh, or 7.5% over May, ■L’M950. The rate of increase over the previous year appears to be slowly decreasing. During May the United States Army cancelled our contract for the 30,000 kw. Floating Power Plant Imped ance. At present, plant capacity is sufficient to carry the load but the system reserve capacity has been seriously reduced. Real Estate By Antonio Varias Vice-President, C. M. Hoskins &• Co., Inc., Realtors REAL ESTATE sales in the Greater Manila area regis tered during the month of May numbered 688, with a total value of P6,306,233, as compared with 759, with a total value of P8,676,696, registered during the pre ceding month of April. Of the May total, 186, with a total value of P2,586,055, represented deals within Manila proper, while 502 sales, Building Construction By Juan J. Carlos President, United Construction Co., Inc. THE approximate value of construction work applied for in the City of Manila during the period from January 1 to April 30, 1951, has declined from P20,376,880, for the same period last year, to P19.373.435, or a decrease of Pl,003,445, approximately 5%. The following table which was compiled in the Office of the City Engineer of Manila shows the comparative monthly values of work for the years 1949, 1950, and 1951. 1949 1950 1951 Value Value Value January................... ............... P 5,754,750 P 6,065,600 P 4,796,840 February................. ................ 7,179,980 4,018,690 3,632,250 March....................... .............. 6,141,230 6,544,490 6,487,320 April........................................ 5,558,248 3,748,100 4,457,025 P24.634.208 P20.376.880 P19.373.435 Although the decrease in values does not seem to be drastic, the number of new construction jobs has declined considerably due to the increase in costs of essential materials brought about by the various controls in effect as well as by the increase in prices at the source of imported ma terials, new taxes, etc. Three big projects which were started early this year, namely, the 4-story College of Medicine building of the 186 June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 187 University of Santo Tomas, the 5-story reinforced concrete office building for the Philippine Trust Company at Plaza Goiti, and the Philippine Manufacturing Company office building on the Luneta, which all together are estimated to cost around P3,000,000, account for part of the year’s value of construction. An examination of the individual costs of the most essential items extensively used in most building projects reveals that present prices are from 10% to more than 100% higher than the prices last year. 1. At the close of last year, galvanized iron roofing sheets, gauge 26, were being sold at P7.32 each. At present, the price is P10.06, when available. 2. Steel bars, then priced at P.33 to P.38 per kilo, are at present selling at P.43 to P.47 per kilo, when available. 3. Common wire nails increased in price from P27.00 to P40.30 per keg of 45 kilos. 4. Water-closets and lavatories, class A, increased in price from P90 to P155 and from P60 to P95, respectively. 5. Insulation boards for ceilings are now being sold at P7.30, instead of P6.00. 6. One item which has increased considerably in price is electrical wire which is quoted at from P40 to P48 per roll of 500 feet, against P10 to P15 some five months ago. 7. Painting materials have increased in price from P10 to P20 per gallon. 8. Imported floor-tiles for bathrooms and kitchens registered an increase in price of from Pl.40 to P3.50 per square foot. 9. Even sand and gravel, obtained locally, increased in price from 10% to 15%, due to the increased cost of tires, truck spare-parts, and fuel. With the recent transfer to PRISCO of the licensing of construction materials, it is expected that prices will come down within the next 60 days. Labor costs during the period have been stationary, but beginning August 13, when the Minimum Wage Law takes effect, an increase of at least 20% in labor cost may be expected. Port of Manila By R. L. Moore Treasurer, Luzon Brokerage Company IMPORTS continue on a high level and export space is very tight. Presently it appears that imports will con tinue to be strong and that there has been some easing of the overall problem of getting merchandise into the Islands. Customs has recently inaugurated a policy of total inspection on all exports, including those bound for the United States. This has been a tremendous burden on all departments. First, it is a great time-consumer, causing . many delays in shipment. Secondly, it has opened up a new avenue for “extra” expense items that must be charged to the customers. Customs has started using Pier 5. We realize the Bureau needs more space, but we are wondering why it did not make a swap with the Philippine Naval Patrol on Pier 7 so that there would* be a consolidation within the im mediate customs zone. The present arrangement neces sitates extra personnel from every entity to cover this pier. ESSENTIAL EQUIPMENT FOR ESSENTIAL WORK McCormick International FARMALL 188 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 Ocean Shipping and Exports By J. G. Llamas Acting Assistant-Secretary Associated Steamship Lines TOTAL exports for the month of April of this year showed aji increase of more than 100% over exports during April of last year. 118 vessels lifted 364,466 tons of exports during the month, as compared to 178,535 tons, lifted by 89 vessels, during the same month of last year. Commodities which have registered a sharp increase over last year’s figures for the same month, are: alcohol from nil to 225 tons; copper concentrates from 3,120 to 9,450 tons; copra from 34,939 to 76,970 tons; hemp from 58,980 to 113,808 bales; logs from 1,594,107 to 17,535,913 bft; molasses from 4,544 to 10,529 tons; iron ores from 9,131 to 57,996 tons; rope from 195 to 604 tons; tobacco from 2 to 819 tons, and transit cargo from 305 to 1,982 Glycerine.......................... Gums, copal..................... Hemp............................... Hemp, knotted................ Household goods............. Junk metals..................... Logs.................................. Lumber, sawn.................. Molasses........................... Plywood and plywood products....................... Ores, chrome................... Ores, lead......................... Ores, iron......................... Pineapples, canned.......... Rattan, palasan............... Rope................................. Rubber............................. Shells, shell waste............ Skins, hides...................... Sugar cent./raw.............. Tobacco........................... Vegetable oil................... Transit cargo................... Merchandise, general.... 142 ” 141 ” 113,808 bales 71 tons 371 ” 1,477 ” 17,535,913 bft. 5,296,168 ” 10,529 tons 127 ” 70 ” 58,980 bales 494 tons 593 ” 1,594,107 bft. 3,308,110 ” 4,544 tons tons. Exnorts during April, 1951, as compared with exports during April, 1950, were Commodity Alcohol............................. Beer................................... Cigars and cigarettes.... Coconut, desiccated........ Coconut oil....................... Concentrates, copper. . . . Concentrates, gold.......... Copra...............................■ Copra cake meal............. Embroideries................... Empty cylinders.............. Fish, salted....................... Fruits, fresh..................... Furniture, rattan............. as follows: April 1951 1950 225 tons — 195 ” 25 tons 15 ” — 6,191 ’ 9,845 tons 6,428 ”» 5,502 ” 9,450 ” 3,120 ” 606 ” 430 ” 76,970 ” 34,939 ” 4,031 ” 4,342 ” 281 ” 153 ” 331 ” 382 ” 11 ” 12 ” 540 ” 228 ” 885 ” 766 ” 54 ” 28,200 ” 64 ” 57,996 ” 4,304 ” 317 ” 604 ” 92 ” 19 ” 228 ” 86,968 ” 819 ” 34 ” 1,982 ” 2,087 ” 47 ” 17.725 ” 9,131 ” 5,153 ” 149 ” 195 ” 63 ” 31 ” 77 ” 52,572 ” 2 ” 97 ” 305 ” 1,928 ” Mining By Nestorio N. Lim Secretary, Chamber of Mines of the Philippines THE figures for the April gold production follow. Pro duction figures for the base-metal production were still unavailable at the time of this report. GOLD MINES PRODUCTION FOR THE MONTH OF APRIL, 1951 Name of Mine Atok-Big Wedge............................. Balatoc Mining Company............. Benguet Consolidated Mining Co.. Lepanto Consolidated Mining Co.. Mindanao Mother Lode Mines Inc................................................ Tonnage Milled Ounces Produced 13,170 39,486 32,684 28,013 S.T. S.T. S.T. S.T. Gold 3,840 7,768 8,119 3,525 Silver 2,389 5,035 5,263 None 10,000 4,771 4,737 AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES ESTABLISHED 1920 PURPOSES. The promotion and development of American trade, commerce, and industry in the Philippines and the Far East; The provision of means for the convenient exchange of ideas in this promotion and develop ment; The cultivation of friendly relations between Americans and Filipinos and other peoples of the Far East; The enrolment of all American citizens residing in the Philippines with a view to bringing about closer association in the achievement of the purposes set forth. MEMBERSHIP. Active membership is limited to (1) commercial, industrial, and other organizations, partnerships, and corporations organized under the laws of the Philippines or of the United States of America which are controlled by American citizens, the responsibilities and privileges of this class of mem bership being exercised by individual representatives of the member-entities who must rank among their senior members but need not be American citizens; (2) individual Americans residing in the Philippines, other parts of the Far East, or the United States. Associate membership is limited to individual American citizens who may be either Residents (residing within 100 kilo meters of Manila), or Non-residents (residing in the Philippines outside this radius or eisewhere in the Far East or in the United States). OFFICERS AND DIRECTORS, 1951 J. A. Parrish, President J. H. Carpenter, Member C. R. Leaber, Vice-President R. J. Baker, Member F. J. Moore, Treasurer Earl Carroll, Member ------------- J. T. Hicks, Member Marie Willimont, Executive Vice-President H. C. Stevenson, Member I. T. Salmo, Secretary ____________ Paul H. Wood, Member American business houses and individual Americans, not already members, are cordially invited to join the Chamber and to assist in the promotion of its purposes. PAST PRESIDENTS *H. L. Heath ♦C. M. Cotterman E. E. Elser ♦R. E. Murphy G. H. Fairchild *P. A. Meyer ♦H. M. Cavender *S. F. Gaches W. H. Rennolds F. H. Stevens P. H. Wood June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 189 Surigao Consolidated Mining Co... 8,577 3,600 2,421 Surigao Placer Syndicate............... — — — — Editor’s Note:—According to a Manila Daily Bulletin report, the recent drive of the National Bureau of Investigation and other police and security services against the illegal export of gold has “virtually paralyzed the local market for gold bullion and posed a serious threat to the Philippines’ mining industry.” Under an agree ment reached last year, producers are allowed to sell 75% of their out put in the “free market” at prices above the official $35 an ounce (P70). The price of gold in .the local market reached a high of Pl68 per ounce in April, but during the first week in June was down to P142, and the buyers, chiefly Chinese, frightened by government raids and confisca tions carried out in the belief that the gold went ultimately to China, have virtually stopped buying. Copra and Coconut Oil By K. B. Day and D. C. Keller Philippine Refining Company, IncApril 16—May 15 THE period under review has beenj marked by further sharp declines for both Philippine ’copra and coconut oil, particularly in America where buyers have with drawn to a degree that almost amounts to a buying holiday. Copra offered at $245 per ton c.i.f. Pacific Coast on April 16 went unaccepted and had fallen by $40 to $205 per ton on May 15 with buyers still holding off. The European market also evinced very little interest in Philippine copra. A similar decline was reported during the same period, .prices having dropped from $292-1/2 to $250 per ton c.i.f. While we are sure that these prices were attractive to Europe, we can only conclude that a shortage of dollars was responsible for the very small volume of business effected. Our restriction to trading with a dollarmarket and its adverse effect on Philippine economy, is brought very forcibly to our notice with reports of sub stantial trading between Europe and Indonesia, and to a lesser extent the Straits, where even at prices some $50 per ton higher than local quotations the following sales of copra were reported: Indonesia to Great Britain............................. 50,000 tons Holland...................................... 30,000 ” Germany.................................. 25,000 ” Denmark................................... 7,500 ” Norway...................................... 1,000 ” Total.......................................... 113,500 tons With these purchases European buyers are comfortably covered for the time being. Ceylon also had a good inning with its sale to Germany of 3,600 tons of coconut oil in Sterling at an equivalent of $506 per ton c.i.f. when Philip pine oil was unsuccessfully offered at $430 c.i.f. Damage caused by the unseasonable typhoon of May 5-6 indicated an average loss for the area north of Tacloban of some 10% of the current crop. Little damage occurred south of Tacloban and our information is that the overall damage to the Philippine crop might be placed at from 3 to 5%. This was insufficient to check the local market decline, which kept more or less in line with the decreases registered on the Pacific Coast and fell from P46 per 100 kilos on April 16 to P38 on May 15. A sharp downward trend was also experienced in the coconut oil market during this period and was prompted by the complete absence of any buying interest. Offers at the beginning of 19/ per pound c.i.f. New York which had not aroused any interest, fell to 16-1/4/ by May 15 and remained unsold. Oils prices in Europe accompanied copra in the downward spiral. Quotations on April 16 of $450 c.i.f. had not attracted the buyers and with only a negligible amount of business done during the period, May 15 found offers of $378 refused, but this, as we mentioned previously, was largely due tb a dollar shortage. The lack of interest in Europe can also be attributed to a certain extent to the to the Access World THE PAMPANGA: CLARK FIELD Markets NATIONAL CITY BANK offers to world markets through 48 overseas quick access its own — more overseas branches than other American banks together. long established correspondent important banks throughout the branches of those of all In addition it has relationships world. NATIONAL CITY BANK OF NEW YORK JirAt in World-Wide (Ranking Branches in the Philippines MANILA Main Branch: Juan Luna Street Port Area Branch: 13th Street with CEBU: CEBU CITY 190 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 lessening of the threat of an immediate major war which has caused the necessity of large-scale stock-piling to become less acute. In America the consumptive demand for soap and other products containing coconut oil is very much down and processors’ inventories are therefore spread over a longer period. A brighter spot in this otherwise gloomy report is the small increase registered in the copra meal market which rose from $59 per short ton c & f at the beginning of the period to $61 c & f on May 15. Throughout the period a steady and satisfactory amount of business was done, mostly with the Pacific Coast, for which a reasonable amount of shipping space is available. qpHis last point brings us back to one of our regular “moans”, i.e. space for Europe; in spite of the fact that Europe has recently displayed more interest in In donesian copra and coconut oil, the fact remains that several promising enquiries have been set at naught because of the impossibility of obtaining shipping space. An unpleas ant aspect of this problem is that while the necessary ships are calling at Manila they are leaving hpre with their deep tanks empty and loading oil at Singapore and Ceylon on the homeward journey to Europe. From information received from usually reliable sources it would appear that the Philippines are not getting a fair share of available space. Figures submitted for March shipments are as follows: Copra L.T. Coconut Oil L.T. Guam.................... ........ 13,070 Atlantic......................... 3,843 Pacific................... ........ 12,857 Atlantic................ ........ 4,679 China............................. 262 Canada................. ........ 1,800 Japan.................... ........ 639 Holland......................... 861 Italy...................... ........ 3,950 Belgium................ ........ 2,700 South Africa................. 937 Denmark.............. ........ 2,700 Norway................. ........ 1,500 Venezuela...................... 300 Holland........................... 3,050 Gulf Ports..................... 9,976 Israel.............................. 2,500 France............................. 1,000 Sweden........................... 3,000 Europe unspecified....... 1,950 Venezuela....................... 5,600 Colombia........................ 5,999 Europe (unspecified)................. 225 Total...................... 6,428 Total ....................... 76,970 as the period closes, outside markets were very weak •**-and buyers were backing away as markets declined. Consumptive demand in the United States was at a stand still and European buyers were largely covering their requirements elsewhere in Sterling or Guilders. Philippine sellers of copra were fairly well committed, but heavier production was expected within a month or so. In spite of all this, there is a good chance that the recent decline is being overdone. In European markets coconut oil is priced on a normal parity with tallow and in American markets the differential is less than it has been for a long time. Consumptive retail demand may well pick up by July. For that reason it would not be surprising if markets should soon level off and perhaps even advance a little, although there is nothing in the picture at the moment which would point to substantially higher prices. Desiccated Coconut By Howard H. Curran Assistant General Manager Peter Paul Philippine Corporation THIS report covers the period from April 15 to May 15 during which time most factories ran at reduced production or not at all. With the drop in raw-mateTAKE YOUR CHOICE Cummins Diesel Engines are standard or optional power in all these leading makes of heavy-duty trucks. Check these truck manufacturers”specificalions for Cummins-Powered models. Write us for full details about the fuel economy, performance, low maintenance and long engine life of the Cummins models you choose. Autocar Kenworth Corbitt Mack Dart Oshkosh Diamond T Pcterbilt Euclid Keo Federal Sterling FWD Walter Hendrickson Ward LaFrance International White C. M. LOVSTED & CO., (MANILA) LTD. 101, 13th St., Corner Boston, Port Area, Manila—Tel. 3-32-40 Represented by Smith, Bell & Co., Ltd. in Cebu — Iloilo — Bacolod — Davao — Legaspi June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 191 Pounds 3,573,300 1,117,890 800,000 821,800 839,000 75,000 rial prices, most factories expect to continue on a limited scale. No further information has been received as to the new price-control order which was reported being drafted in Washington. Shipping statistics for the month of April follow: Shipper Franklin Baker Company..................................... Blue Bar Coconut Co............................................ Peter Paul Philippine Corp................................... Red V Coconut Products...................................... Sun Ripe Coconut Products................................. Standard Coconut Corp........................................ Cooperative Coconut Products............................ Tabacalera.............................................................. Coconut Products (Phil.) Inc............................... 7,226,990 Sugar By S. Jamieson Secretary-Treasurer Philippine Sugar Association THIS review covers the period from May 1 to May 31, 1951, inclusive. New York Market. During the month, the New York market for raws was firm and very active. Prices moved upward, influenced by the exceptionally heavy distribution of refined and a sustained demand from other countries for the remaining Cuban “world” stocks at prices sub stantially higher than those for U.S.A.-quota deliveries. On May 1 the market opened firm, with light offerings at 6.10/ for prompt and 6.25/ for ‘ July-August arrival. Refiners indicated 6.00/ for May arrival, and operators were buyers at 6.15/ for July arrival and 6.20/ for August. Spot was quoted at 6/. On the 3rd, there were sales of 19,500 tons of Philippine, Cuban, and Porto Rican sugar at 6.10/ for May arrival, and 20,000 bags of Portos at 6.15/ for early June shipment. 12,000 tons of prompt Philippines and Portos were sold next day at prices ranging from 6.10/ to 6.20/, and the following day 2,000 tons Philip pines for June arrival at 6.25/. On the 7th, there were sales of 21,000 tons of Portos and Philippines for May/June arrival at 6.25/ and 3,000 tons Philippines for June/July shipment at 6.30/. On the 8th, 3,000 tons Philippines for June/July shipment were taken by an operator at 6.35/, while refiners took 36,000 tons of Cubas, Portos, and Philip pines for May/June arrival at 6.30/ and 5,000 tons Philip pines for July arrival at 6.35/. On the 9th, there were sales of small lots of Portos at 6.35/ for May and June arrival and 4,000 tons Philippines for June arrival at 6.30/. On the 10th, 25,000 tons Cubas, Portos, and Philippines for June/July arrival were sold at 6.40/, 15,000 tons Philip pines June/July shipment at the same price, and 2,000 tons Philippines July/August shipment at 6.45/. Next day there were sales of a further 1500 tons Philippines for July/August shipment at 6.45/ and 3,000 tons Cubas, late May loading, at 6.40/. Then the tone of the market became easier. On the 15th, 20,000 bags of Portos for late May shipment were sold at 6.35/; on the 17th, 2350 tons Philippines for July arrival at 6.39/; and on the 18th a cargo of Portos for June shipment at 6.40/. By the 21st, the market had again firmed up, and the following day 55,000 tons of Portos, Philippines, and Cubas were taken at 6.50/. On the 23rd, operators bought 5,000 tons Philip pines for June shipment at 6.55/, and next day 10,000 tons of Cubas, Portos, and Philippines for late June arrival were sold at 6.60/. A rumor that the U. S. Department of Agriculture might increase the United States consumption INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS -------------- *--------------SPECIALISTS IN KILN DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila D. C. Chuan & Sons, Inc. 14-30 Soler St. Manila Insular Saw Mill, Inc. 340 Canonigo, Paco Manila MANILA OFFICE-. 401 FILIPINAS BUILDING 192 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 quota in an effort to curb prices unsettled the market, and on the 25th 3,000 tons Philippines for July-August shipment and another 3,000 tons for June/July arrival were sold at For a day or two the market was hesit ant, but by the close of the month it had recovered confid ence and closed fully steady, with offerings at 6.60/ and buyers indicating 6.50$/. Spot, which had reached a peak of 6.60$/ on the 24th, closed at 6.45$/. We give below the quotations on the New York Sugar Exchange as of May 31 for Contract No. 6: July...................................... 6 03f! September............................ 6 05 November............................ 6.07 March, 1952........................ 5.65 The world market Contract No. 4 quotations closed on May 31 as follows: July...................................... 6 98$$ September............................ 6.98 March, 1952........................ 5.35 May...................................... 5.35 July....................................... 5.35 The world “spot” market price on May 31 was 7.00/ as compared with 5.90/ on April 30. Local Market, (a) Domestic Sugar: Prices advanced steadily during the month as keen competition continued among dealers for the available supplies. We give below the Bureau of Commerce quotations as of May 30: Centrifugal 97° — P15.30 to P15.40 per picul 98° — P16.20 to P16.30 ” ” • 99° — P17.40 to P17.50 ” ” (b) Export Sugar: During the month the local market for export sugar was quite active at advancing prices. Stocks of export sugar remaining uncontracted are now qqite limited. At the close there were buyers at a base price of P 14.85 per picul ex mill warehouse. Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines THIS review covers the period from April 16 to May 15, during which time all terminal markets ruled weak. A fair business was done in New York during the first half of the period at prices only slightly lower than those prevailing at the close of the previous period; however, during the last two weeks prices began to decline more sharply and the market closed on the average 2/ lower. Business to Europe continued fair on the decline but demand slackened toward the end of the period and prices weakened further. Negotiations for an increased quota to Japan were concluded in the early part of the period under review, resulting in moderate business at reduced prices. Prices in the Philippine provincial markets declined from P6 to ?7 per picul. Production of abaca is still being maintained at a high level, with April pressings at 101,677 bales, the best month in the post-war period. A comparison with the pressings for the same month last year is as follows: 1951 1950 Davao............................. 42,263 bales— 42% 26,862 bales— 48% Albay, Camarines, and Sorsogon..................... 28,375 bales— 28% 15,504 bales— 28% Leyte and Samar.......... 19,726 bales— 19% 7,933 bales— 14% All other non-Davao.. . 11,313 bales— 11% 5,404 bales— 10% 55,703 bales—100% Total bales.................... 101,677 bales—100% Pressings for the first 4 months this year amount to 387,909 bales, up 153,960 bales from the same period last year, and up 151,945 bales from January/'April pressings in 1947, which was the best year post-war. Contrary to expectation, the April pressings_of non-Davao fiber exNOW! FOR THE FIRST TIME Silvertown NON SKID DESIGN Silvertown TREAD DEPTH TREAD WIDTH Silvertown COLD RUBBER Goodrich International Rubber Co. OFFICE & BODEGA 13th & ATLANTA, PORT AREA TEL. No. 3-37-21 RECAP PLANT 207 RIZAL AVE. EXT., GRACE PARK TEL. No. 2-72-23 June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 193 ceeded the average of the previous 3 months, indicating that no seasonal decline, which usually commences in April, has taken place so far this year. The following are the comparative figures for balings for the first 4 months of 1947 through 1951: Balings—January-April inclusive 1951 1950 1949 1948 1947 Davao..................... 164,709 102,318 73,154 76,921 114,935 Albay, Catnarines, and Sorsogon.. . . 114,731 66,294 48,055 85,181 80,811 Leyte and Samar.. 69,529 39,531 42,751 45,527 23,036 All other nonDavao................. 38,940 25,806 30,660 46,170 17,182 Total bales............. 387,909 233,949 194,620 253,799 _235,964 Exports remain high, amounting to 108,360 bales in April, with 51,517 bales, or 48%, going to the United States and Canada; 19,101 bales, or 17%, to United Kingdom; 20,127 bales, or 19%, to Continental Europe; 14,953 bales, or 14%, to Japan, and the remaining 2,662 bales, or 2%, to various other countries. Exports during the first 4 months were 429,720 bales, exceeding the pressings by 41,811 bales. The following are the comparative figures for exports for the first 4 months of 1947 through 1951: Exports—January-April inclusive 1951 1950 1949 1948 1947 United States and Canada................ 239,596 91,967 64,935 122,340 145,928 Continental Europe 71,046 30,414 38,995 40,250 46,770 United Kingdom... 60,808 26,052 9,742 43,905 5,235 Japan...................... 48,943 35,841 61,487 36,068 — South Africa............. 3,420 1,310 1,746 810 1,700 China...................... 2,005 5,315 4,468 3,070 606 India....................... 3,202 3,200 526 — 1,800 Korea...................... — 950 — — — Australia and New Zealand............... 700 625 — 42 — Alljother countries. — — 80 2,453 400 429,720 195,674 181,979 248,938 202,439 Tobacco By Luis A. Pujalte Secretary-Treasurer Manila Tobacco' Association, Inc. I have on hand a copy of a bill passed by the 'House of Representatives, limiting the importation of leaf tobacco, which read as follows: “H. No. 1850 “Introduced by Congressman Cases, as per Committee Report No. 744 “an act to limit the importation of foreign leaf tobacco “Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: "Section 1. The importation of foreign leaf tobacco shall be limited to the following schedule: “For 1951—seventy-five per cent of the total importation in 1950 “For 1952—fifty per cent of the total importation in 1950 “For 1953—forty per cent of the total importation in 1950. “Succeeding years—twenty-five per cent of the total importation in 1950. “Sec. 2. This Act shall take effect upon its approval.” In my opinion it is regrettable that such a one-sided and incomplete piece of legislation should pass the House. The reason for the introduction of this bill, I under stand, is to protect the small group of farmers in La Union province which has started planting Virginia-type tobacco. This is still in the elementary experimental stage; so far only two experimental crops have yielded fair results, and both under the most abnormal circumstances, i.e., under the Japanese occupation and the import and exchange controls. Whether Virginia-type leaf could be grown in the Philippines under normal conditions on a competitive basis is a question that has still to be answered. And yet, under these circumstances, the bill might still pass Congress. The base-year for the successive annual limitations MODEL 31 DIESEL Born and built for propulsion and marine generator service . . . that’s the FairbanksMorse Model 31! It has real marine ad vantages that show up in fast, low-cost hauls of those heavy loads ... in quick, positive starting and responsive controls for quick maneuvering. 2-to-l heavy-duty reduction gears permit use of larger, more efficient propellers. For full details on these and other equally advanced features, see us. Other Fairbanks-Morse Lines— GENERATORS ELECTRIC MOTORS LIGHT PLANTS MAGNETOS WINDMILLS SCALES FARM EQUIPMENT IRRIGATION PUMPS HOUSEHOLD PUMPS Exclusive Distributors ATLANTIC, GULF & PACIFIC CO. OF MANILA Merchandise Sales Division Robert Dollar Bldg., M. del San Francisco & 23rd St. Port Area, Manila Tel. 3-36-61 (Connecting all Depts.) 194 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 would be 1950, which was the peak-year for the importa tion of leaf-tobacco after the Liberation, but what entities would be entitled to import is not stated. I.C.A. regula tions permit only manufacturers to import leaf-tobacco, while a great portion df the 1950 import was brought in by dealers. Then there is that very important part of the local tobacco industry, which, if this bill becomes a law, will be completely ruined,—the cigar industry. During 1950, the imports of cigar wrapper-leaf were negligible due to the import and exchange controls. The present requirements of the industry are not very large, as exports are very small as yet, but even so this bill would not allow the importation of wrappers for the small actual production. Let us not forget either that the duty-free quota to the United States under the Bell Act is 200,000,000 cigars and that those cigars need im ported wrappers. The bill would leave no hope for the raising of our existing cigar industry to even pre-war level, but would kill it. Why the Philippine tobacco industry was not given a chance to express its views before the" House passed the bill, is incomprehensible. 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)................................... 2,023 10,215 81,517 40,146 5,441,306 1,502 445,387 649,767 1,257,671 6,733,973 691,844 4,498 4,896,128 1,135,947 1,932,601 6,251,787 79,192,173 6,951 1,020,903 13,336 42,180 414,026 58,929 8,997,776 92,434 2,897,933 1,528,722 518,542 4,459,444 810,375 216 6 4,663,939 653,569 2,236,498 8,052,317 86,438,559 30,473 815,978 Imports By S. SCHMELKES Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units. COMMODITIES Automotive (Total)....................................... Automobiles................................................ Auto Accessories......................................... Auto Parts.................................................. APRIL, 1951 APRIL, 1950 1,215,733 129,952 1,901 279,790 1,400,917 258,637 18 291,981 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-bulbs-seeds (Total)...................... Medical (Total).............................................. 3,320 36,150,068 38,152 550 10,536 3,389 7,294 26,155 373,198 82,872 155,137 69,265 577,151 139,820 395,849 193 9,170 18,608,040 171,871 62,106 15,003 47,961 16,099 15,722 248,670 67,684 68,349 40,498 206,450 34,492 118,612 51 716,810 1,549,572 80,027 958,347 39,226 3,001 484 15,196 627,845 687,807 ENGINEERING EQUIPMENT r> & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office 174 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 June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 195 Musical (Total).............................................. Office Equipment (Total)............................. Office Supplies (Total)................................... Paper (Total).................................................. Photographic (Total)..................................... Raw Materials (Total).................................. Sporting Goods (Total)................................. Stationery (Total)......................................... Tobacco (Total)............................................. 35,876 28,446 33,196 4,537,558 14,651 2,532,004 17,764 221,665 175,775 15,543 145,898 43,117 6,052,852 94,416 576,648 13,816 344,865 1,458,507 Chucheria (Total)..:..................................... 65,440 97,928 Clothing and Apparel (Total)....................... 243,154 87,343 Cosmetics (Total).......................................... 104,335 57,051 Fabrics (Total)............................................... 499,044 844,325 Jewelry (Total)....................................................... — 105 Leather (Total)..................................................... 99,348 159,385 Textiles (Total).............................................. 2,423,955 1,268,428 Twine (Total)....................................................... 53,296 2,373 Toys (Total).......................................................... 9,197 3,534 General Merchandise (Total)....................... 382,603 510,510 Non-Commercial Shipments (Total).................. 36,602 42,142 Advertising Materials, Etc. (Total).................... 13,190 41,715 Food Products By G. L. MaGee Trading Division Marsman & Company, Inc. WITH the arrival in the market of quite large importa tions of food products for which licenses had been issued during early April, especially canned fish and evaporated milk, market demand eased off, prices below ceilings were quoted in many instances, and sub stantial reserve stocks were accumulating in importers’ warehouses. “De-controlling” of essential commodities has resulted in their plentiful supply, achieving the PRISCO objective to break black-marketing and making plentiful supplies available to consumers at reasonable retail prices. The rapidity with which this situation was achieved caught many small importers off guard, with the result that various parcels of evaporated milk and canned fish were offered below, the usual market prices. Evaporated milk arrivals during the first half of May amounted to more than 100,000 cases, with further sub stantial quantities on the way. Selling effort was extended into all parts of the Islands with indication that milk sup plies would be ample in every section of the, country. PRISCO continues freely to approve license applications for milk, both evaporated, condensed, and powdered, and conservative estimates reveal that stocks are in hand or due to come forward, to supply the country needs for four months or longer. There have been substantial importations of canned fish, which on top of stocks remaining unsold from firstquarter importations, will insure plentiful supplies for several months. With the beginning of the rainy season, consumer demand for this commodity, however, will in crease, while further importations during the third quarter will be small since California packers have nothing further to offer and the packing season is several months away. PRISCO licenses have been issued for substantial quantities of canned meats such as Vienna sausage, potted meats, and similar products, first shipments of which are already here and some due early June. Since there has been a decided shortage of such foodstuffs for the past 18 months, early arrivals will move out rapidly to retailers and into consumption. Fair quantities of corned beef were received during May but no over-supply exists or is in prospect. PRISCO’S flour purchases at IWA prices continue to arrive with regularity, the last lots being due in June and early July. In an endeavor to provide that all flour stocks will move out before the opening of the next crop-year, PRISCO offered bakers the opportunity to contract ahead for three months’ supply at regular ceiling prices, requiring 10% deposit for the deferred deliveries. Importers showed Aladdin had the genie of the lamp . . . but you have Reddy Kilowatt as your servant! How amazed Aladdin would be to see what Reddy does for you! He keeps you cool in the summer . . . preser ves your food and cooks it automatically! He lights your home . . . and entertains you royally! Aladdin’s genie was an amateur beside Reddy ... no servant ever did so much— and cost so little—the biggest bargain in your household budget! NOILA ELECTRIC COMPANY 134 San Marcelino Manila 196 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 continued interest in placing contracts for flour at prices outside IWA, permitted under the present policy of de control. PRISCO had approved license applications on this basis for substantial quantities during May, with other licenses pending. This higher-priced flour will be arriving during June, July, and August and will relieve any possibility of shortage. PRISCO also authorized during the month the sale of flour from its stocks to retailers in order to make flour available to private consumers who previously had diffi culty in obtaining flour in small parcels for household use. Announcements was made in the United States that the IWA schedule on wheat flour for the new crop-year would be announced early in June. No shipments, how ever, will be possible until after August 1, which will mean first possible arrivals in this market of new crop-year flour around mid-September. On account of the tremendous volume of license ap plications which PRISCO had to process, there has been some delay in final approval. This applies to such essential commodities as baking-powder, poultry feeds, and concen trates now in short supply. Substantial quantities of coffee beans have been licens ed, with prospect of plentiful stocks to take care of the requirements of local coffee-processing plants. Practically no licenses are in prospect for such com modities as dried fruits, canned fruits, and vegetables, fresh and tinned butter, with the exception of pork and beans, which means a dearth of these foods in the market when the present-stocks are exhausted. As far as the food requirements of the country as a whole are concerned, there will be plentiful supplies of those products most generally in demand so that food costs for the average consumer are likely to show a down ward trend. Textiles By W. V. Saussotte Acting General Manager Neuss, Hesslein Co., Inc. ON March 16, 1950, some three months after the import and export control measures of late 1949 were adopted, President Quirino mentioned in a fireside chat to the nation that to combat our enemies “...we must bestir our selves morally and physically—morally, by acquiring the spiritual disciplines of civic duty and national unity, and physically, by engaging in every useful and productive enterprise in order to provide for every family food, cloth ing, and shelter in an atmosphere of peace that inspires internal security”. While the manner in which the import control regula tions, Executive Order No. 295, later replaced by Republic Act No. 426, have been administered has frequently been subject to question, these regulations together with the ‘exchange control regulations of the Central Bank now appear to have accomplished, partially at least, their prin cipal objective, namely, improvement in the dollar-reserve position of the nation, in a shorter time than was originally expected. The dollar reserves reached a point at the begin ning of the year at which it became possible to remove from import control certain basic food and medicinal arti cles. By the 1st of May, the position had still further im proved so that it was possible for President Quirino, upon recommendation of the Monetary Board of the Central Bank, to instruct PRISCO, through a letter dated May 11, to “de-control” additional essential commodities, in cluding not only producers’ goods but consumers’ goods, STEEL FABRICATORS • CONTRACTORS RIVER & HARBOR WORK • SHIPS’ REPAIRS ENGINEERS • MANUFACTURERS MERCHANDISERS Operating: MACHINE SHOPS FOR CONSTRUCTION AND REPAIR FOUNDRY FOR CAST IRON, BRASS & BRONZE STRUCTURAL STEEL FABRICATING SHOP MARINE REPAIR SHOPS • WOOD PRESERVING PLANT ■Distributors for-------------------ATLANTIC, GULF & PACIFIC CO. OF MANILA (PHILIPPINE CONTRACTORS SINCE 1905) June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 197 among them certain cotton textiles of the lower qualities, in order to bring down the costs of local production and the notoriously high cost of living as well. The President’s “de-control” letter of May 11 may be regarded as partial fulfillment of the implied promise made to the nation in the fireside chat quoted. The letter directs PRISCO to issue such rules and regulations in respect of the "de-controlled" commodities as will “meet the needs of the public”. Accordingly, on May 14, PRISCO defined the “de-controlled” textiles as consisting of any bleached cotton cloth for embroidery purposes, cotton ducks, filter cloths, rubberized cotton fabrics, raw cotton, mercerized yarns, and cotton threads and cotton twines, all of which may be regarded mainly as essential producers’ goods. In addition, cotton goods in the piece, with a thread-count less than 142 threads per square inch and all cotton remnants not exceeding 10 yards in length irrespective of construction, were defined by PRISCO as “de-controlled” items which may be regarded mainly as consumers’ goods. These definitions are con tained in PRISCO’S Supplementary Rules and Regula tions No. 6 of May 14 which also contains instructions • for the submission of import-permit applications for these de-controlled items. On May 18 PRISCO issued Supplementary Rules and Regulations No. 5-B concerning controlled cotton textiles which consist of all remaining textile fabrics not de-controlled. Within a week of the issuance of these regulations, PRISCO began the issuance of licenses. It is evident that PRISCO acted with speed in implementing the licensing of the cotton textile items affected by the President’s letter of May 11. On May 10 PRISCO held a meeting with representa tives of the textile trade with a view to revising their price ceilings as per Executive Order No. 373 of November 27, 1950, so as to bring them in line with present-day costs abroad and to reconcile them with the various new local taxes which have become effective since November 27, 1950. It is expected that the revised price-ceilings will shortly be announced by means of a Presidential Executive Order [Executive Order No. 443, effective June 1]. The Central Bank’s cost-of-living index reveals that between the period of November 27, 1950 to March 31, 1951, the overall cost of living rose from 319.5 points to 362.3 points, or a rise of 42.8 points, whereas the specific index for clothing rose, during the same period, from. 243.5 points to 389 points, or a total of 145.5 points, which was more than 3 times greater than the average rise in all the items included in the basic index. This condition was brought about by the severe controls which not only re stricted the importation of luxury textiles, but also those cheaper textiles required for the mass of the population. Combined with the price controls of the Office of Price Stabilization in the United States, the expected new local PRISCO revised price-ceilings which will enable merchants to make a reasonable profit, the realistic de control of the lower constructions of cotton textiles and all classes of remnants has already resulted in a noticeable reduction in local prices. During the two weeks since the release of the President’s “de-control” letter, local prices have dropped some 20 or 25% and will undoubtedly decline still further. While goods against the PRISCO licenses which are being issued will not begin to arrive until late July, the de-control announcement and the prompt issuance of PRISCO licenses have already served to drive prices downward. It is rumored that an effort was made to have the list of de-controlled cotton textile items include only a very narrow range of articles on the ground that this was neces sary to protect the National Development Company’s textile mills. However, if any curtailment in the actual de-control list had been realized, the reductions in local prices indicated above would not have occurred. In PACIFIC MIMIIMlimi, CORPORATION 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 Division “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 198 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 the Philippine Export-Import Review of April, 1951, an article appears under the by-line of an official of NADECO which states that during 1950 their textile mills produced 5,364,242 yards of grey cloth and 7,995,772 yards of finished goods. This is compared with 2,090,399 yards of grey goods and 3,619,282 yards of finished goods during 1949. The 1950 production represents an increase of about 130%, attributable to the import restrictions of Execu tive Order No. 294 and Republic Act No. 426 which created a shortage of goods and made local prices rise to a point where NADECO’s production could be sold at profit. However, it is to be noted that the average annual im portation of all types of piece goods for 1938, 1939, and 1940 was 158,000,000 square yards, and for 1947 and 1948, 148,000,000 square yards. Since NADECO’s production under the import controls of 1950 amounted to about 11,500,000 lineal yards, it can be seen that any plan to restrict the importation of textiles in order to protect NADECO is without economic foundation because its maximum production constitutes less than 8% of the total requirements of the country, while its costs of production are much higher than those of equivalent imported goods. Any effort to increase NADECO’s productive capacity, which we believe is already at its maximum, would be thwarted by the fact that raw cotton is under export alloca tion from the United States. Even if all other requirements for increased production might be met, it is simply not possible for NADECO to increase its present output because of the world-wide shortage of raw cotton. If the attempts to restrict the de-controlled textile items had been successful, it not only would have resulted in an economic absurdity but it would have violated the President’s announced policy that the Government should not stay in business at the expense of private business. PRISCO is issuing licenses to all comers in respect to the “de-controlled” textile items. As regards “controlled” goods, PRISCO has established, by Supplementary Rules and Regulations No. 5-B, a quota of P5.000 for each new importer applicant. Old importers, defined as those who imported during 1948, will be given a second quarter 1951 quota of $10,000 if their importations of “controlled” cotton textiles during 1948 was up to $100,000; a quota of $20,000 if their importations were from $100,000 to $200,000; a quota of $35,000 if their importations were from $200,000 to $500,000; a quota of $50,000 if their importations were from $500,000 to $1,000,000; a quota of $65,000 if their importations were from $1,000,000 to $2,000,000; and a quota of $80,000 if their importations exceeded $2,000,000. While this will mean an influx of goods which will result in losses for some holders of PRISCO licenses, it will also serve the purpose of burning the fingers of those applicants who have applied for licenses merely to sell them or who have entered into the business “on a shoe-string”; the net result will probably be that the marginal operators TRAVELING?? LBC Travel Agency Offers Passport and Visa Clearances Air and Ship Reservations Bank Clearances and many other services AT NO EXTRA COST LUZON BROKERAGE —COMPANY— TRAVEL AGENCY Office 113-115 Dasmarinas Telephone 3-34-31 June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 199 will be weeded out and only those importers, both new and old, who are sufficiently well qualified business-wise will be able to survive in the competitive field which “de control” has again opened. The basic objective of de-control,—to reduce the high cost of living, seems assured, and as an incidental corollary, business as a whole should benefit because the license peddlers and the marginal operators and their satellites will no longer enjoy a climate in which they can thrive. The broad promise of the recent actuations of President Quirino, the Monetary Board of the Central Bank, and PRISCO may be regarded as already partially fulfilled. touring March, arrivals from the United States totalled ■*^13,868 packages, including 3,819 packages of cotton piece goods and 2,667 packages of rayon piece goods. Included also were 669 packages of cotton seine twine and wrapping twine and 273 packages of cotton sewing thread. Arrivals of all textiles from other countries, including made-up goods, consisted of 343 packages from Japan, 156 packages from China, 729 packages from Europe, and 547 packages from India, the latter consisting almost entirely of Hessian cloth. April’s total arrivals from all sources amounted to 15,144 packages representing the largest arrivals for any month thus far during 1951. This figure compares with the annual monthly average arrivals of 22,600 packages for 1949 and 12,600 packages for 1950. Mr. L. W. Wirth, President of Neuss, Hesslein & Co., Inc. of Manila, former editor of this column, who left the Philippines last December 8. returned on May 15 after having visited the Company’s branch offices and agents in Hongkong, Bangkok, Singapore, Djakarta, Osaka, and Tokyo. He will be leaving again about the middle of June for New York, via Manchester, England, where he will visit the British Neuss, Hesslein Company and its mills. Legislation, Executive Orders, and Court Decisions By Robert J and a Ross, Selph, Carrascoso & Janda IN the case of Filipinas Compania de Seguros vs. Christern, Huenefeld 8s Co., Inc., G. R. No. L-2294, the Su preme Court passed upon the liability of the insurance company under a pre-war policy for a fire loss incurred during the Japanese occupation. The company contended that the insured was an enemy national for, although it was a Philippine corporation, most of its stock was owned by German nationals and that, consequently, the insurance contract was voided upon the outbreak of war between the United States and Germany. The insurance company had been compelled to pay the policy during the occupa tion but contended that the payment was made under duress and brought action for recovery of the amount paid following the American reoccupation. The Supreme Court upheld the position of the insurance company and allowed recovery of the value of the payment made under the policy as determined under the Ballantine Scale less the amount of the premium in Philippine currency corresponding to the un,expired part of the policy at the time it was voided. tn the case of Timbol vs. John Martin, G. R. No. L-3469, Athe Supreme Court held that the insolvency of a debtor could not be pleaded in avoidance of the debt moratorium, the Court stating that it was the purpose of the moratorium law to give individuals, temporarily insolvent by reason of the war, an opportunity to rehabilitate themselves with out being pressed with respect to their pre-war obligations. tn the case of Pauley vs. Atkins, Kroll 8c Co., Inc., CA-G. -*-R. No. 4687-R, the Court of Appeals held that where an employee was prevented from carrying out the terms of Ifhat does MILDNESS mean to you, Mr. Pinza? EZIO PINZA, WHO STARRED IN “SOUTH PACIFIC”, SAYS: “MILDNESS, TO ME, MEANS THE CIGARETTE THAT AGREES WITH MY THROAT... CAMEL!” 200 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 MACLEOD H.o HIMI'AVY nt I'liiumiES Hemp Exporters Steamship Agents 207 Myers Building Port Area, Manila Save With FORD SERVICE + Factory Approved Equipment + Factory Approved Methods + Skilled Mechanics + Genuine Spare Parts DAY and NIGHT SERVICE On All Makes Of Cars and Trucks JFe Invite Your Patronage his employment by reason of the outbreak of war and his internment, he could not collect his agreed salary from his employer in the absence of an express provision in the employment contract allowing him to do so, as no employee is entitled to demand salary for a period during which he does not render services to the employer unless there be a clause to that effect in the contract of employment. 't'he Philippine Congress adjourned its regular session on May 17, 1951, without enacting all of the Pres ident’s legislative program., A special session lasting ten days confined itself to approval of the General Appropria tion Bill. Among the bills passed during the regular session were the following: A bill providing that beverage bottlers and manufac turers who place their names or other marks of ownership upon their bottles or containers may register with the Patent Office the name or mark so placed and that there after it would be unlawful for any person to fill or use such containers for the purpose of sale or to sell or deal in such . containers or destroy the same. Possession of the containers by a junk dealer or a dealer in such containers or their use by a person other than the registered owner is made prima facie evidence that such use or possession is unlawful. A bill creating the Philippine Sugar Institute as a semi public corporation to promote the interest of the sugar industry in the Philippines. A bill authorizing the Price Stabilization Corporation to prescribe as a condition for the issuance of any license to import wheat flour from abroad that the importer shall buy cassava flour in such proportions not exceeding 30% of wheat flour by weight as may be prescribed by the Ad ministrator of Economic Coordination and the importer is required to sell cassava flour and wheat flour in tfuch proportions. Violation of the measure is ground for refusing any license to import wheat flour and any importer found to have sold wheat flour without the corresponding pro portion of cassava flour shall have his license cancelled and shall be disqualified from engaging in the importation of wheat flour for five years. A bill condoning interest due government owned or controlled corporations from the 1st of January, 1942, to the 31st of December, 1945, on all debts and obligations outstanding on the 8th of December, 1941, in the cases as specified where the debtor was unable to pay the obliga tion because of the refusal of the creditor to accept pay ment or to open for business during the period set forth; where the debtor was unable to make payment by reason of his activities in the resistance movement; where the debtor could not pay because of penury caused by the ravages of war, etc., or where he could not pay the obliga tion because his assets were under the administration of the Japanese Enemy Alien Property Custodian or other JULIAN B. DACANAY, C.P.A. WISHES TO ANNOUNCE THAT HE HAS WITHDRAWN ON DECEMBER 15, 1950 AS PARTNER OF THE WHITE, PAGE & CO. AND PRICE, WATERHOUSE fie CO. MANILA, PHILIPPINES AND NOW PARTNER OF OLLADA, DACANAY & ASSOCIATES WITH OFFICES AT 501 CHINA BANK BUILDING MANILA, PHILIPPINES TELEPHONE 2-97-59 June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 201 enemy instrumentality. The bill further provides that if voluntary payment is made before December 31, 1952, of the principal, interest on the obligation for the period prescribed shall be condoned. A bill making certain amendments in the Securities Act, first exempting from registration any security issued or guaranteed by the Government of the Philippines or any political subdivision or agency of said government, or any security issued or guaranteed by any banking insti tution authorized to do business in the Philippines, and any security issued or guaranteed by a foreign government with which the Philippines is, at the time of sale, maintain ing diplomatic relations, including securities issued by political subdivisions of such foreign state. The Securities Act is also amended to provide for the review by the Supreme Court of orders revoking the right to sell securities and Of all orders issued by the Commis sion in any proceeding under the Act. Republic Act No. 613 makes it unlawful to export or re-export machinery and spare parts, scrap metals, medicines, foodstuffs, abacd seedlings, gasoline, oil, lubri cants, and military equipment or supplies suitable for military use without a permit from the President issued in accordance with the provisions of the Act. Applications for permits to export are filed with the committee com posed of the Secretary of Agriculture and Natural Resources, the Secretary of National Defense, ahd the Administrator of Economic Coordination. Applications must be con sidered and disposed of in the chronological order in which filed. A unanimous finding that the export will not pre judice national security or the Government’s program of agricultural and industrial development is necessary to a recommendation by the committee for approval of the permit by the President. The recommendations must be published two weeks in a newspaper of general circulation and if no objection is received the permit is to be signed by the President within ten days. If objection is made, the Act provides for a hearing before the permit can be issued. The Act terminates at the end of the next regu^r session of Co'ngress unless sooner terminated by concurrent resolu tion of Congress. Violation of the Act is punished by im prisonment. A bill providing that no. commodity except those not subjected to control may be imported into the Philippines without an import control license issued by an instrument ality to be set up by the President in accordance with the provisions of the measure. The President may, by executive order, remove any class or kind of commodity from import and exchange control. The measure continues in effect until June 30, 1953. Under the new Import Control Bill the Monetary Board of the Central Bank, at six months’ intervals, certifies the dollars which shall be available for imports for the NEUSS, HESSLEIN & CO, INC. 75 WORTH ST., NEW YORK, N.Y. FOREMOST SUPPLIERS OF TEXTILE FABRICS THROUGHOUT THE WORLD for 86 years and FOREMOST SUPPLIERS OF TEXTILES TO TIIE PHILIPPINES FOR 51 YEARS. ♦ FAUST SUITINGS FLATTERY PRINTS WALDORF PERCALES SEINE TWINE & YARNS AGUILA DENIMS • CARABELA CHAMBRAYS • COMMANDER BROADCLOTH • COTTON & RAYON POUND-GOODS ---------------------------MANILA OFFICE:---------------------------209 ROSARIO ST. MANILA PHONE 2-97-31 Cable Address “NEHESCO” For Store and General Household Use PECO CORD — the cord with a thousand-and-one uses Made in the Philippines, from fiber that has made Manila rope famous. MOTOR SERVICE CO, INC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 ASK FOR IT BY NAME AT YOUR DEALER’S — OR WRITE OUR WHOLESALE DEPARTMENT Other Strong PHILIPPINE TWINE-Core wound Balls. “CROWN” Twine........1 ply, 2 ply, 3 ply “DRAGON” Twine. . . .1 lb. & 1.4-kilo balls “TOW LINE” Twine .1 ply, 2 ply, 3 ply /PhilippinejmtioTco} **......... not CASTILLEJOS TEL. 3-22-51 QUIAPO, MANILA P. O. BOX 620 202 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 ★ LUZOK STKVEIIORIU; COMPANY, INC. Manila ★ - D£P£NDABl£ IN WAR OR 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. L—KOPPEL— (PHILIPPINES) ■ BOSTON a 23RD STREETS | N C . PORT AREA ' TEL. 3*37-53 I Branch*!: W Bacolod * Iloilo * Cebu * Davao * Colabalo • Zambo«ns«^^ corresponding period and no license may be issued without available foreign exchange to cover the license. The avail able dollars are apportioned by the Import Control Board among importers. The Bill provides that the Import Con trol Board shall encourage and protect essential industries in the importation of machinery, equipment, and raw materials, giving first priority however to government agencies charged with the duties of stockpiling essential articles, goods and commodities or with the stabilization of prices and to meet essential government needs. Second priority is to be granted to bona fide producers as regards capital equipment and raw materials, and the balance of the available exchange is to be distributed among bona fide business firms and importers in proportion to their individual average imports in the year 1949 including such reasonable allocation for bona fide new Filipino importers as would encourage them to participation in importation. The following may be imported without license: Used personal effects of a value of not exceeding P5.000 and gifts from abroad not exceeding the value of Pl00 for each gift; Commodities brought by persons returning to the Philippines and not brought for commercial purposes in a value not exceeding Pl,000. Import licenses are required to be granted for im ports for capital investment when no exchange is required, subject to the requirement that the proceeds from these goods shall be deposited in a bank and shall not be with drawn therefrom except for investment in the Philippines; and second, goods imported from countries with which the Philippines has a foreign trade agreement, preference to be given to producers who export to these countries. Import licenses granted to importers who are not producers must provide that the importer shall reserve not less than 50% of his imports for sale to bona fide Filipino merchants on the same terms as granted to his regular outlets. The Bill contains the usual provisions for issuance of regulations and punishment of violators and repeals all prior import control laws. Of the foregoing only Republic Act No. 613 had been approved by the President at the time this article was written. The Import Control Bill is almost sure to be approved and to become law. It is not certain what action will be taken with respect to the other bills. U.S. Government Agencies U.S. VETERANS ADMINISTRATION Manila Regional Office THERE are 76,540 regular beneficiaries of the U. S. Veterans Administration in the Philippines who receive an average payment of P76.43 a month, Brig. Gen. Ralph B. Lovett, USVA Manager, announced. This represents a total monthly outlay of P5,849,064.34 according to the latest tabulations. CHRISIM 1IRTEMP PACKAGED AIR CONDITIONERS REFRIGERATION SUBS and SEBUIE W.L CHITTICK & CO., INC. EXCLUSIVE DISTRIBUTOR Telephone 5-30-33 31 ROMERO SALAS, MANILA June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 203 This huge total does not include initial payments, those accrued benefits which are included in the first check paid to new beneficiaries. Frequently, these initial indi vidual checks amount to more than P3.000.00. Including the initial payments, the most recent figures show that a grand total of ?8,190,909.62 was paid to beneficiaries in February, considered a fair average, Lovett said. By localities, more beneficiaries receive more money in the City of Manila than any single province or combina tion of four provinces. There are 14,437 beneficiaries in Manila who receive Pl,508,031.56 monthly in regular payments. Pangasinan boasts the greatest number of beneficiaries of any province, with Rizal second. However, while there are 8,354 beneficiaries in Pangasinan compared to 6,207 in Rizal, total monthly payments to the Rizal beneficiaries are P540,371.86 as compared to Pangasinan’s P493.467.72. This is explained by the larger number of Philippine Scouts residing in Rizal, who receive larger payments than Philip pine Army and guerrilla personnel, as well as the fact that a great number of living veterans are studying under the G. I. Bill of Rights in Manila but living in Rizal. Subsist ence payments to student-veterans generally exceed pay ments to survivors of deceased veterans. SMITH-CORONA PORTABLE The beneficiaries of the USVA are spread all over the Philippines, some in each of the 49 provinces. Batangas has the third greatest number of beneficiaries but stands fifth in total payments. Pampanga is third in total outlay and fourth in number of beneficiaries. La Union is fourth in amount of outlay but fifth in number of beneficiaries. Beneficiaries of the USVA include living veterans of the Spanish-American War, World War I, and World War II, the survivors of deceased veterans of these wars as well as student-veterans. At present there are about 6,507 of these student-veterans receiving a total of Pl,468,933.02 monthly, or an average monthly payment of about Pl 15.00. The following is a breakdown by provinces of the number of beneficiaries of the USVA in the Philippines and amounts paid to beneficiaries in the respective provinces: One glance at the new SMITH-CORONA. . . and you’re convinced that it’s the most beautiful and sturdy portable typewriter you’ve ’ ever laid eyes on! Not just a “new model”. . . it’s a revolutionary all new typewriter. . . with a total of nineteen new features plus fifteen SMITH-CORONA “exclu sives”! Its smart, new Color-speed Keyboard is full standard office machine size. . . has rimless keys colored a restful non-glare green and “comfort shape” to cup your finger tips. ERLANGER & GALINGER, INC. 123 T. Pinpin, Manila • Magallanes St., Cebu City Number Amount Province of Paid Monthly Beneficiaries Pesos Abra............... Agusan.......... Albay............. Antique......... Batangas.... Bukidnon.... Bulacan......... Camarines Norte......... Camarines Catanduanes. Cavite............ Cebu.............. Cotabato. . . . Ilocos Norte. Ilocos Sur. . . Iloilo.............. Isabela........... La Union.... 504 P 33,469.02 66 4,414.62 1,779 109,805.44 290 21,639.36 272 25,255.36 9 472.58 3,368 177,157.46 506 34,782.98 55 10,829.32 1,916 89,248.50 696 49,050.94 193 10,908.34 Marinduque.. Masbate........ Mindoro........ Misamis OcMisamis OrMountain Province... Negros Occi dental ........ Negros Or iental ......... Nueva Ecija . Nueva Viz1,231 84,511.98 579 44,657.98 304 14,737.04 1,874 146,732.20 1,638 138,706.26 214 14,398.84 200 19,574.70 1,968 141,837.86 2,064 134,537.08 1,779 151,557.02 567 49,137.08 3,026 180,090.62 1,233 79,156.62 92 8,436.62 Pampanga. . . Quezon.......... Rizal.............. Romblon.... Sorsogon........ Surigao.......... Tarlac............ Zambales.... Zamboanga. . Grand Total. 2,368 160,731.48 14,437 1,508,031.56 302 16,122.74 138 8,042.18 382 26,167.12 202 . 13,929.36 211 13,373.50 800 92,666.80 2,086 122,583.58 731 49,217.18 2,551 150,965.92 441 49,950.56 166 13,121.12 3,233 273,010.40 8,354 493,467.72 1,286 79,154.82 6,207 540,371.86 90 5.563.06 671 55,454.86 874 40,904.68 52 3,977.02 74 4,663.26 2,618 157,570.76 1,330 127,853.42 513 66,063.56 76,540 P5.849,064.34 Wedding Invitations of Distinction. . . Truly Distinctive Invitations* Wedding Cards * Announce ments * Acknowl edgments We specialize in copper' engraved, steel-engraved or platcless engraving. Select your style. Choose your types: the accepted familiar type-faces of old or the smart new type styles of tomorrow. AGENTS BROKERS CHARTERERS TELEPHONES 3-34-20 3-34-29 American Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama Cable Address: 203 Myers Bldg. “AMERSHIP” Port Area Manila McCullough CPrisrint Sim< 1»99J A DIVISION OF PHILIPPINE EDUCATION CO. 1104 Castillejos— Quiapo, Manila Telephone 3-24-70 204 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 FOR BETTER SERVICE—Call 3-29-05 ALLIED BROKEHAGE Marsman Building Port Area Documents may be delivered to our represen tative in the branch offices of MACKAY RADIO TELEGRAPH COMPANY, Plaza Moraga and Trade <$ Commerce Building. Individual attention and competent supervision given to your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING ^our Health Is Our Business! . . . Arid it is the most important part of our business. Whenever you, present a prescrip tion at our counter, your health is in our hands. To us, that little slip of paper is a sacred trust. Filling that written order precisely is our prime responsibility. 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PRESCRIPTION DEPARTMENT On the Escolta, Manila CEBU • ILOILO • LEGASPI • DAVAO COST OF LIVING INDEX OF WAGE EARNER’S FAMILY’ IN MANILA BY MONTH, 1946 TO 1951 (1941 = 100) Bureau of the Census and Statistics Manila 19472 (100.00) (63.43) (11.96) (2.04) (7.73) (14.84) 1946 IAH (59.15) House Rent (8.43) Cloth(0n62) Fuel, Light and Water (13.94) Miscel laneous (17.86) ing Power January......... 603.4 759.2 236.4 984.0i 363.8 434.8 .1657 February....... 547.2 656.3 236.4 940.31 369.5 460.5 .1827 March........... 525.9 631.0 236.4 940.1 340.4 445.2 .1902 April.............. 556.2 684.1 236.4 910.3. 345.5 435.9 .1798 May............... 545.1 675.6 236.4 762.5i 342.3 409.6 .1835 June............... 538.7 666.4 236.4 737.9’ 343.3 404.2 .1856 July............ 552.7 704.3 236.4 598.9i 341.3 364.6 .1809 August.......... 477.9 590.0 236.4 384.7’ 320.9 346.3 .2092 September. . . 477.9 591.3 236.4 378.7’ 314.5 347.2 .2092 October......... 487.4 587.2 236.4 382.7’ 405.8 342.7 .2052 November.... 484.8 607.8 236.4 406.4 346.5 305.2 .2063 December.... 461.9 570.8 236.4 371.9' 344.7 302.1 .2165 1 Average number oi persons in a family = 4.9 members. 2 Revised in accordance with the new survey on the “Levels of Living in Manila** by Department of Labor and the Bureau of the Census and Statistics conducted in December, 1946. January......... 426.2 368.2 453.9 381.9 326.2 282.5 .2346 February....... 418.5 454.9 453.9 356.2 344.8 281.4 .2389 March........... 406.8 440.1 453.9 295.2 334.7 279.4 .2458 April.............. 387.7 413.3 543.9 269.2 328.9 271.6 .2579 May............... 381.0 404.4 453.9 250.9 325.4 269.4 .2625 June....... 386.3 414.4 453.9 236.8 316.6 268.6 .2589 July............... 393.4 426.8 453.9 217.7 309.3 269.9 .2542 August.......... 387.4 419.8 453.9 210.2 292.0 269.1 .2581 September. . . 368.9 392.1 453.9 216.4 283.3 266.8 .2711 October......... 358.7 376.3 453.9 212.7 280.5 267.7 .2788 November.... 358.4 376.3 453.9 215.1 280.5 265.3 .2790 December.... 371.9 395.8 453.9 219.1 298.2 262.9 .2689 1948 January......... 391.2 428.3 453.9 224.5 304.6 249.9 .2556 February....... 368.5 392.0 453.9 223.8 301.1 254.4 .2714 March........... 349.4 361.0 453.9 214.6 308.1 255.9 .2862 April.............. 356.1 374.1 453.9 209.4 289.7 254.8 .2808 May.............. 349.8 360.2 453.9 214.2 289.7 271.6 .2859 June............... 354.3 370.4 453.9 205.2 283.2 262.9 .2823 July............... 356.4 374.2 453.9 201.3 281.6 262.4 .2806 August.......... 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September. . . 370.6 397.2 453.9 199.2 279.6 260.6 .2698 October....... 374.9 404.0 453.9 204.8 283.2 257.9 .2668 November.... 368.7 394.4 453.9 202.0 281.6 258.7 .2712 December.... 365.9 389.9 453.9 202.0 282.4 258.9 .2732 1949 January......... 363.8 386.8 453.9 202.0 279.0 258.9 .2750 February....... 343.8 355.5 453.9 203.0 277.5 258.9 .2909 March........... 346.3 358.2 453.9 202.0 276.3 258.5 .2896 April.............. 348.7 362.6 453.9 197.6 287.5 257.1 .2868 May.............. 348.8 362.8 453.9 197.2 287.5 257.1 .2867 June.............. 349.0 362.9 453.9 203.9 287.5 257.2 .2865 July............... 351.7 374.0 453.9 194.2 265.8 240.5 .2844 August.......... 337.5 351.2 453.9 196.3 266.6 241.2 .2963 September. . . 333.6 345.1 453.9 190.3 264.8 243.1 .2998 October........ 332.9 343.3 453.9 199.9 264.8 245 0 .3004 November.... 339 6 356.1 453.9 191.1 258.4 239.8 .2945 December ... 329 6 335.9 453.9 202.9 259.5 256.2 .3035 1950 January ........ 332.3 336.8 453.9 238.0 253.1 269.3 .3010 February....... 336.9 340.2 453.9 233.3 257.8 284.1 .2969 March........... 339.0 341.4 453.9 236.7 257.8 292.6 .2950 April.............. 331.8 328.6 453.9 237.7 252.9 301.2 .3015 May............... 320.2 308.6 453.9 244.7 249.7 309.1 .3123 June............. . 323.1 310.9 453.9 243.5 249.7 319.1 .3095 July.............. . 332.0 322.4 453.9 252.6 249.7 328.7 .3012 August......... . 334.4 325.9 453.9 258.7 251.1 328.4 .2990 September . ... 341.3 335.0 453.9 317.4 252.5 327.5 .2930 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 1951 January........ 355.2 355.0 453.9 331.5 249.7 334.6 .2816 February. . . . 358.4 359.8 453.9 342.8 249.7 334.4 .2790 March........... 353.2 349.3 453.9 379.4 248.8 339.3 .2832 April............. 361.2 362.6 453.9 398.6 247.5 334.7 .2769 May!............. 365.0 367.0 453.9 410.4 247 5 339.5 .2740 June, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 205 C. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS—AGENTS SHIP BROKERS GENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE IVARAN LINES—FAR EAST SERVICE (Holter-Sorensen — Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) Sweden GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE a YOUNG New York V. MULLER Kobenhavn. Denmark Head Office: 5TH FL., INSULAR LIFE BLDG. MANILA, PHILIPPINES TELEPHONES: 2-69-56 2-69-57 2-69-58 2-69-59 2-69-50 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG TOKYO—YOKOHAMA NAGOYA-OSAKA SHIMIZU—FUSAN (KOREA) Cable Address: "SUGARCRAFT” all offices The “LET YOUR HAIR DOWN’’ ■==^ Column 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 Dasmarinas St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) AN imposition of tax on tax— is that legal? “May 10, 1951 American Embassy Dewey Boulevard, Manila “Attention of Mr. Julian F. Harrington, American Minister “Dear Sirs: “Under date of January 30, 1951, I sent you a letter, as per attached copy, with reference to difficulty in securing authority from the Central Bank to purchase a draft in favor of the Bureau of Internal Revenue, Baltimore, Maryland, to cover payment of income taxes due by me and my wife, for the amount of $23,733.04. After considerable delay I finally received about the middle of February, authority from the Central Bank to purchase a draft for half of this amount, and in accordance with their in structions I submitted another application to purchase a draft for the remainder. “About two weeks ago I finally received their authority to purchase a draft for the balance, but on making application for the necessary draft I was informed that same would be subject to an exchange tax of 17%, in accordance with Republic Act No. 601. On taking this matter up with the Central Bank, they advised that there is no authority in said Act to eliminate payment of said exchange tax. “As payment of this income tax has been pending for several months, I made an application for the purchase of the necessary draft and informed the Central Bank that I was paying the 17 % exchange tax * UNDER PROTEST’, as per attached copy of my letter addressed to them under date of April 27th, 1951. “The imposition of this exchange tax on taxes and debts due the Federal Govern ment by American citizens residing in the Philippines is unfair and unjust. I am also informed .that the imposition of a tax upon a tax is illegal. “In view of the fact that the United States Government is sending to the Philippine Government a large amount of U. S. dollars under the ECA provisions, to say nothing of amounts for other purposes, would it not be possible to make some arrangements whereby a certain amount is withheld to cover payment of taxes due the Federal Government by Americans*residing in the Philippine Islands? "Trusting that you will give this matter your kind attention, I am, "Yours very truly, “AMOS G. BELLIS c o J. P. Heilbronn Co. Port Area, Manila" Following the publication of the May issue of the Journal, the editor sent out the following letter, together with a sample copy of that issue, to around half of the members of the Chamber of Com merce of the Philippines (we couldn’t send out more because we ran out of extra copies): “Dear Sir: “A goodly number of members of the Chamber of Commerce of the Philippines are subscribers to the monthly Journal of the American Chamber of Commerce, just as members of the latter organization are subscribers to the monthly publication Commerce of the Philippine Chamber. “We are writing to all the members of the Philippine Chamber to inform them of this and to assure them that Journal subscrip tions are open to them. It is not true, as some believe, that one must be a member of the American Chamber to entitle him to subscribe to the Journal. “Neither is it necessary to be a member of the American Chamber to advertise in the Journal. “The American Chamber of Commerce Journal would be very happy to serve you either as a reader of or as an advertiser in its columns. “Very sincerely yours, “Etc.” We are pleased to say that as a result quite a number of new sub scriptions came in. Probably also as a result of this letter and the accompanying sample copy of the Journal, the editor received a letter from Mr.. Jtian J. Carlos, which read as follows: “Dear Mr. Hartendorp: “ I noticed in your magazine that 'Building Construction’ is the only business ■nof-being reviewed. I am therefore sending you-rherewith a write-up on the subject prepared by myself. If you will let me know what your PHOTOSTATS o/ anything written! Call for Messenger Pick-up and Delivery Service Tel. 2-67-50 or 2-70-79 2nd Floor EL HOGAR FILIPINO BLDG. No. 19 Juan Luna, Manila 206 AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1951 UNDERWOOD SUNDSTRAND THE PAYROLL MACHINE THAT SPEEDS THE IF YOU DO, THEN YOU NEED WANT... . .to eliminate time consuming, separate pay roll postings? 2 ... to eliminate costly copying errors? 3 . . .to have an easyto-check, faster, more accurate payroll system? 4 ... to cut your over head with a machine that’ll pay for itself. . . in valuable time and mo ney savings for you? Ask for a FREE demonstration NOW! We'll show you how you can cut your overhead!... save time and money! SMiTH.BE~LL~cb'XTD. TRADE AND COMMERCE BIDS. MANILA Tel. 2-69-71 monthly dead-line is, I hope to make it every once in a while. “Sincerely yours, “Etc.” Now there was a display of the spirit of true cooperation. Mr. Carlos’ article will be found in “The Business View” section. The editor wrote him his thanks as follows: "Dear Mr. Carlos, “I am very much obliged to you for your interesting and timely article on building construction and for your offer to write such an article for the Journal from time to time, an offer I am glad to accept. “We have had a ‘Building Construction’ column off and on during the past few years, under the editorship, first, of Mr. O. A. Boni, of the Atlantic, Gulf, and Pacific Company, and then under Mr. H. H. Keys, but Mr. Boni was unable to continue the work and Mr. Keys has now left the Philip pines. I had up to the present found no one to continue the column, so your volunteering is most welcome, the mofe so because of your high standing in the construction business, your position as a member of the Board of the Chamber of Commerce of the Philip pines, your membership in the Rotary Club, and your membership in both the Philip pine Society of Civil Engineers and the Philippine Contractors Association, of which you are a past President, all of which con nections indicate that what you write has such authority behind it as we like to have for our ‘Business View’ columns. “Our deadline for copy each month is on or about the 25th.” “There is nothing that makes an editor happier than finding a good, new writer. Why, it lights up his whole day,” said H. A/TRS- Willimont received the foliV1lowing note a few days after the May issue of the Journal was sent out: “Dear Mrs. Willimont,—I was surprised to see those drunken, maudlin paragraphs in the ‘Hair-Down’ column this month. I always thought better of the editor. Is whisky so important to him? Is he a drunk ard?” When this was shown to the editor, he said that to the question, “Is whisky important to him?” the answer is a groaning “Yes”, but that that does not make him a drunkard. “At my age, and in these present times especially, it is a matter of a needed assuagement of passions and furies.” As for those “drunken, maudlin paragraphs”, he said that he was a sober as a judge when he wrote them, had not had a drop to drink. “It was pure art!” “However,” he added, “I thank the fair writer for her interest and hope, profoundly, that I may continue to be Worthy of her better thoughts”. ctuart Symington, new head of ^the U. S. Reconstruction Fin ance Corporation, after discharging a branch manager for cause, told the press that it didn’t matter to him whether the “deal” the man was convicted of was legal, but, he went on, “I am dead certain that it was improper; so he is out!” THE BRADMA FOOLPROOF PAYROLL SYSTEM AND ADDRESSING MACHINE! WANT IF YOU DO, THEN YOU NEED 1 ... to eliminate cal culating your employees’ earnings every payday? 2 ... to eliminate typ ing or writing all your payroll forms every pay day? 3 . . .to eliminate time consuming typing errors? 4 . . .to eliminate doubt in the accuracy of your payroll system? Ask for a FREE demonstration NOW! We'll show you how you can cut your overhead!... save time and money! SMTTOeLUCO'XTD. TRADE AND COMMERCE BLDG ..MANILA Tel. 2-69-71 T NMB278 EF INTL NEWYORK NY LT STANDVAC f i Mobilgas 28/27 MAY 31ST IMPM 1,3; Record Set o HERE S THE LATEST PROOF OF MOBILOIL PERFORMANCE AND SUPERIORITY Triple-Action Mobiloil has done it again! It swept the field with a sensational triple win in the 1951 Indianapolis classic. 1st, 2nd and 3rd place cars were all protected with Mobiloil. And it rode with Lee Wallard to an all-time record of 126.244 miles per hour, fastest ever recorded in the history of the world's greatest speedway race. GIVE YOUR CAR MOBILOIL’S TRIPLE-ACTION PROTECTION TODAY! STANDARD-VACUUM OIL COMPANY PHILIPPINES ^Virginia Maycw Gregory Peck 3$o-Atarriny in Now smoke Chesterfields-they do smoke milder, and they leave NO UNPLEASANT AFTER-TASTE "CAPTAIN HORATIO HORNBLOWER* JL Wanvr tBwby fluAnuoto' ★ Vibginia Mayo enjoys her coffee and a Chesterfield while the hairdresser arrange her hair between scenes In the shooting of "CAPTAIN HOBATIO 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. “Chesterfield Smells MILDER'Jmtzr MILDER* Leaves no unpleasant after-taste Liccnr & Mtns Tobacco Co. — — — Listen to tile Bing Crosbv 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