The American Chamber of Commerce Journal Vol. XXVII, No.8 (August 1951)

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XXVII, No.8 (August 1951)
Issue Date: Vol. XXVII, No.8 (August 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 August, 1951 No. 8 Editorials— Contents Philippine Tax on United States Tax........................................................................................................................................................................................... Los Angeles............................................................................................................................................................................................................................................ Skill in Argument versus Propaganda.......................................................................................................................................................................................... Monetary and Credit Developments.............................. ............................................................. Governor M. Cuaderno, Sr...................... Text of Draft of the Proposed Tripartite Security Treaty among the United States, Australia, and New Zealand............................................................................................................................................................................................................................... The American and the Japanese “Conquests” of the Philippines........................................................... A. V. H. Hartendorp.................................... Oil Production and Trade................................................................................................................ J. A. Parrish.................................................... 251 251 252 254 257 257 260 The Business View— The Government............................................................................................................................................ Banking and Finance.................................................................................................................................... Credit................................................................................................................................................................. Manila Stock Market.................................................................................................................................... Electric Power Production.......................................................................................................................... Real Estate...................................................................................................................................................... Building Construction.................................................................................................................................. Port of Manila............................................................................................................................ Ocean Shipping and Exports................................................................................................... Mining........................................................................................................................................... Lumber............................................................................................................................................ ............. Copra and Coconut Oil................................................................................................................................ Desiccated Coconut...................................................................................................................................... Manila Hemp.................................................................................................................................................. Sugar.................................................................................................................................................................. Tobacco............................................................................................................................................................. Imports........................... ;............................................................................................................................... Food Products...........*................................................................................................................ Textiles......................................................................................................................................... Legislation, Executive Orders, Court Decisions................................................................. Philippine Safety Council........................................................................................................................... Cost of Living Price Index.'....................................................................................................................... The “Let Your Hair Down” Column.............................................................................................................. Official Source.................................................... 262 G. A. Benson. ................................................... 263 W. J. Nichols................................................... 263 A. C. Hall......... ............................................ 263 J. F. Cotton...................................................... 264 A. Varias........................................................... 264 J. J. Carlos....................................................... 265 R. L. Moore..................................................... 265 B. B. Tunold..................................................... 265 N. N. Lim........................................................... 266 L. J. Reyes....................................................... 267 K. B. Day and D. C. Keller.................... 268 H. H. Curran................................................... 270 F. Guettinger................................................. 270 S. Jamieson........................................................ 271 L. A. Pujalte................................................... 274 S. SCHMELKES......................................................... 274 G. L. MaGee..................................................... 275 W. V. Saussotte.............................................. 277 R. Janda............................................................. 278 F. S. Tenny....................................................... 280 Bureau of the Census and Statistics.......... 281 ................................................................................. 283 50 CENTAVOS THE COPY Mobilg'as Service Stations STANDARD-VACUUM OIL COMPANY PHILIPPINES Editorials “ . . . to promote the general welfare” Increasing protest is being voiced against the imposi tion by the Philippine Government, since the enactment in March of this year of RepPhilippine Tax public Act 601, of the 17% on United States Tax exchange tax on the remit tance by Americans here of their income tax payments to the United States Government. As is well known, Americans abroad pay a double income tax,—one to the government of the country in which they reside, and the other to the United States Gov ernment. This has always constituted a serious handicap to Americans and American corporations in foreign coun tries where they must compete with others who, bear no such double burden. The burden is lessened only in part by the fact that the United States tax is paid only on socalled “unearned” income,—that derived from earnings on investments, and not on “earned” income (below a certain maximum), and by the fact that the amount paid in income taxes to the foreign government may be deducted from the United States tax. But now injury has been added to injury by the addi tional imposition of the 17% foreign exchange tax on these income tax remittances to the United States. Act No. 601 provides for certain exemptions, such as on remit tances for a few staple foodstuffs and fertilizer, certain types of insurance payments, etc., but the drafters of the law seem not to have thought of the need of exempt ing these tax remittances (or did they?), although it is clear enough that such remittances fall outside the type of remittances it is the purpose of the law to lessen,—remit tances for imports. Appeals for relief have been addressed to the Central Bank, but the Bank’s reply has been: “As Republic Act No. 601 does not provide for an exemption of this nature, the said remittance is subject to the payment of the ex change tax.” Yet while the interpretation of the law has been so strict in this connection, the Bank appears readily to have agreed to certain other exemptions such as, for instance, in the case of the purchase of foreign exchange by foreign embassies, legations, and consulates. But this latter concession would seem to offer a way out, as has already been suggested by Mr. E. A. Perkins in a letter to Ambassador Cowen. The American Embassy in Manila could be authorized by the United States Gov ernment to collect the tax locally from Americans here, on the lawfully established and supposedly guaranteed basis of 2 to 1, which Act No. 601 has in effect converted into a ratio of 2.34 to 1. To be sure, a foreign exchange tax was recommended in the Bell Mission Report and the President of the United States approved this measure, his approval being neces sary in the case of any Philippine legislation which sets aside the 2 pesos for 1 dollar ratio fixed by a provision in the Bell Act of 1946. But neither the Bell Mission nor the President can have foreseen that Act 601 would mean forcing Americans to pay a tax on the money they have to remit to their own Government, this being, also, a second Philippine tax on Philippine income they have already paid the Philippine income tax on. We have pointed out in the past that what is, in effect, a one-sided devaluation of the peso, constitutes a most serious drain on every one in the Philippines because every one has to pay around one-fifth more for everything that is imported from abroad; but for Americans the exchange tax additionally means the piling up of government taxes on them three-deep, contrary to all reason and equity. That the Philippines is the most important world trade market of Los Angeles Courity, was a statement made in Manila by Mr. John A. Sowers, Los Angeles Assistant Manager and Director, Far East Division, World Trade Depart ment, of the Los Angeles Chamber of Commerce. Mr. Sowers’ title gives an idea of the highly developed organiza tion of the Los Angeles Chamber. His tour of the Far East, during which he visited or will visit, besides the Phil ippines, also Japan, Formosa, Hongkong, Thailand, Ma laysia, and Indonesia, gives an idea of the wide-spreading interest of that one division of one department of the Los Angeles Chamber. 251 From a Franciscan mission, established in 1771, and a Mexican pueblo established ten years later, Los Angeles became for some years the capital of California, over which the American flag was first raised in 1846, when war broke out between the United States and Mexico. Though attractively situated between the mountains and the sea, and with a delightful climate, there was lack of a natural harbor, and the population in 1900 was still only 100,000. But with the. opening of the Panama Canal in 1914, the construction of an inner harbor by the city government, completed that same year,—this having been preceded by the building of a breakwater by the Federal Govern ment, the discovery of a great oilfield, and the development of numerous manufacturing enterprises, the city increased its population faster than any other city in the United States. Today the population numbers over 2,000,000, with a total of 5,000,000 in the whole metropolitan area. The two excellent, man-made ports are capable of docking a hundred large ships at one time. There is, notably, a fenced-off, Customs-guarded foreign trade zone, where foreign merchandise may be landed, stored, re-exported, re-packed, sorted, mixed, or otherwise mani pulated with a minimum of Customs control and without customs bond or payment of duty, pending re-shipment of goods abroad or entry into the United States. During the period from 1940 to 1948, the number of registered industries increased from 5,500 to 11,000, rep resenting an annual added value by manufacturing of over $2,000,000,000. The annual payrolls amount to $3,500,000,000. The annual world trade amounts to over 22,000,000 tons, valued at more than $650,000,000. According to the 1947 Census (figures furnished us by Mr. Sowers, as were also the foregoing), the Los Angeles industrial area ranks first nationally in the manufacture of aircraft and aircraft parts, motion pictures, pumps and compressors, refrigeration equipment and machinery, and canned sea-food: it ranks second in women’s and misses’ outerwear, pressed and blown glass, concrete and plaster products, automobile assembly, automobile tire and tube production, storage batteries, jewelry and silverware, heating and plumbing equipment, millwork (wood), and oil-field machinery and tools*;, it ranks third in women’s and misses’ underwear, miscellaneous fabricated textiles, miscellaneous wood products, household furniture, news paper publishing, petroleum refining, pottery and related products, non-ferrous foundries, tractors and farm machin ery, construction and mining machinery, and conveyor equipment. Are these facts and figures dull? Certainly they are not to anyone who senses the human courage and creative ness, the initiative, enterprise, and energy behind them, also the great reward in wealth and wellbeing, spread throughout the community in the form of personal inde pendence, employment opportunity, dependable incomes, comfortable homes, good schools, libraries, museums, theaters, parks ... all making for the good life, the vital, generous, hopeful living of America. It is interesting to note that the population of Los Angeles is not “all American’’ in the narrow sense. About 17% was Latin and Oriental and about 15% was foreignborn white, according to the 1930 Census figures which are the latest we have available. It is not without signi ficance that the populations of most of the great cities of America are exceedingly mixed and that many varied human strains have contributed to the vigorous activity of these industrial and business centers. There is inspiration in that fact for Manila, for here too we have a population composed of many varied ele ments, all of which contribute richly to the Philippine life, if they are not short-sightedly deterred. Depressing and often alarming as much of the world news is in these times, and particularly worrying as are the long-drawn-out cease-fire negoSkill in tiations in Korea, one report Argument from the United Nations Adversus Propaganda vanced Headquarters in Korea early this month, could furnish a certain intellectual enjoyment. In view of the gravity of the issue in Korea, this form of appreciation may be trifling and frivolous, but the fact remains that at one stage of the prolonged negotiations over the point where the armistice line should be drawn, the so-called Socratic irony was employed in its full perfection by both sides. The present United Nations line, as everybody knows, runs some 35 miles above the 38th parallel in the east and center and some distance below it in the west. The Com munists still demand (at this writing) that the United Nations forces withdraw to the 38th parallel, the wholly artificial boundary between North and South Korea which is difficult to defend and across which the North Koreans launched their initially successful attack a year ago. The United Nations representatives declare that such a with drawal would involve a political question which they have no authority to decide and that the United Nations forces will remain where they are, in a defensible position. Vice-Admiral C. Turner Joy, therefore, at the seventh successive session dealing with this point alone, summed up: “The United Nations Command has no intention of violating the military armistice agreed upon, but neither will the United Nations Command place itself in an indefensible position in the event of an armistice violation by the other side.” Then came Lt. Gen. Nam Il’s “final question”: “If you sincerely desire peace, and intend to observe the armistice, why are you talking about defensible positions?” It was reported that this question had been anticipated and that the reply had been prepared in advance. Promptly it came, also in the form of a Socratic ques tion: “Do you or do you not agree that the security of his forces is a responsibility of each commander during a military armistice?” According to the report, Nam II avoided a direct answer and Joy repeated his question a second and a third time. “When Joy put the question a third time...it caused a flurry on the Communist side. The two Chinese in the five-man Red delega tion conferred with each other apparently attempting to find an answer for Nam. The question was becoming something of a dilemma to him. “For his part, Nam asked Joy five times during the day whether he had anything further to say. The first time he asked it somewhat hopefully...Each time the Admiral said no. “All evidence indicated Nam’s mission at the moment is to keep the conference going while he awaits instructions from higher author ities.” Note how well both questions, and especially Joy’s, meet the following dictionary definition of “Socratic irony”: “Pretended ignorance or willingness to learn from others assumed for the sake of making their errors conspicuous by means of adroit questioning. Socrates is represented by Plato as employing this method in his tilts with the Sophists.” Note also the dictionary definition of the word “dilemma”: “An argument which presents an antagonist with two or more alternatives (or ‘horns’), but is equally conclusive against him, which ever alternative he chooses.” There was an easy, direct answer to the “final ques tion” posed by the North Korean General,—that the keeping of the truce does not depend solely on the United Nations’ sincerity of desire for peace, but depends equally on the Communists’ sincerity. But there was no easy answer to Joy’s question. Had the Red General said he did not agree, this would have 252 FOR PHILIPPINE PROGRESS AND DEVELOPMENT! o«« ® FROM THE ^ivered 1946-1950 INTtRNAT^HAL^RVESTE-----------MARIA CRISTINA FALLS HYDRO-ELECTRIC PROJECT COR the Progress and Economic Security of the Philippines—This Power Contribution of Essential Equipment for Essential Work— Augmenting the 32,000 Horse Power of the Maria Cristina Falls Project, Now Under Construction! INTERNATIONALii^HARVESTER INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES^ MAIN OFFICE: MANILA branches ANO DEALERS THROUGHOUT THE PHILIPPINES meant that he himself felt no responsibility for the security of his forces during a truce. And if he had said that he did agree, he would have given his whole case away. He could have asked Joy: “Could you not find an equally defensible line south of the 38th parallel?” But this would have involved the political issue. Much more than a game of wits is being played at Kaesong. In that small village, the will and determination of two vast and. poised aggregations of power are being tested. The outcome of that test will not, in all probability, be decisive, but it will be of deep significance with respect to future world developments. Power in all its manifesta tions will determine the final issue, but among these mani festations of power, and especially in the fight to win men’s minds and hearts, dialectical skill,—the art of reasoning about matters of opinion, is one of the most important. The Socialists and the Communists have recognized the importance of dialectics from the outset. Many of their advances have been won by mere argument. Demo crats have tended to think that the facts spoke loudly enough, and have been scornful of disputation and debate as well as having, rightfully, felt themselves above resort ing to such a foul thing as propaganda. But the two are very different, and skill in argument and the proper presen tation of argument could perhaps still save a lot of blood shed. Fortunately, the democracies generally, and the United States, also, have recognized the truth of this. Today, American officials and other prominent Americans are delivering carefully thought-out addresses on world topics much more frequently than formerly and these are given wide dissemination over the radio and through the United States Information Service. “The Voice of America” broadcasts are also proving very effective. Monetary and Credit Developments January to May, 1951 By M. Cuaderno, Sr. Governor Central Bank of the Philippines THIS is an analysis of monetary, credit, and fiscal developments since the beginning of the year, as reflected in the accompanying schedule of statistics.* Factors Affecting the Purchasing Power (Domestic) of the Peso Prices, Cost of Living.— Although indexes of retail prices and the cost of living up to May, 1951, show a rising inflationary trend, the rate of climb appears to have de creased in May and to have turned into a recession early in June. The decontrol of several items of commodity imports and the drop of about P18 million in money supply have undoubtedly contributed greatly to this develop ment. Money Supply.—Money supply which has' risen to an all time high of Pl,293,980,000 in April, 1951, dropped to Pl,275,699,000 in May. This level is still slightly above that of January, 1951. The reduction in money supply is probably due to the heavy volume of imports and import commitments since May, the payment of taxes, and the considerable improvement in the finances of the Government. The recession in the level of money supply at this time is a healthy trend. Bank Credit.—Loans and discounts, overdrafts and customers’ liability-acceptances increased by P24 mil lion between January 1 and April 30, 1951. This is partly accounted for by the increase in the loans to PRISCO and private importers for stockpiling of essen tial commodity imports. Voluntary credit control which is being observed by the banks gives assurance that in flationary pressure from this source is being minimized. Excess Bank Reserves.—Excess bank reserves is a potential source of credit expansion. Since credit expan sion is inflationary, sterilization of a portion of the excess reserves of banks could be effected by increasing the re serves which the banks must maintain with the Central Bank. However, such a measure appears unnecessary inasmuch as the excess reserves of banks dropped from P135.6 million as of December 29, 1950, to P29.4 million as of May 25, 1951. This drop has been due largely to heavy financing of imports which required heavy pur chases by banks of foreign exchange from the Central Bank. ♦Editor'e note: Not reprinted herewith. Central Bank Credit.—Ordinarily, when inflationary conditions exist, the Central Bank is and should be averse to the granting of credit to banks. However, in order to facilitate their financing of exports as well as of imports (control on which has been relaxed lately as an anti-infla tionary measure), the Monetary Board has authorized some bank loans for these purposes only. As indicated in the attached schedule, banks’ purchases of foreign exchange from the Central Bank in May had been quite heavy. On account of the improved condition of the finances of the Government,1 borrowings from the Central Bank to meet operating expenses have been greatly reduced compared to last year’s. However, P86,218,913.83 were released to the Government from January to May 31, 1951, in order to complete the construction of the Maria Cristina power and fertilizer plants, the Ilocos Textile plant, the National Shipyards, to continue the work on the Ambuklao Hydroelectric power projects, and for other development projects. Although not all of these funds will be spent this year, the release had to be made as the power of the Central Bank to make such advances will expire on June 30 this year. >As of May 31, the National Government had total cash assets of P70.2 mil lion. compared to P63.8 million as of December 29, 1950. The moderate change is significant because it represents a reversal of previous years’ trends IN the accompanying clear and concise article, taken from the Central Bank News Digest of July 7, Central Bank .Governor Miguel Cuaderno answer a question which greatly concerns our business men,—whether the recent relaxation of import con trols and the consequent increase in imports, together with the recent decline in the prices of our principal exports, will be reflected in a decline in the interna tional reserves to the extent that the import controls would again be stiffened. Governor Cuaderno’s an swer is, in brief, that “it is not believed that. . . the probable diminution in the international' reserves . . . would be large enough to make a reversal of our import pplicy immediately necessary”. His whole analysis is in other respects, too, most encouraging. 254 fHow to make good tires last longer While new tires are scarce, the wise driver gets all the wear he can out of his present set. Observance of these pre cautions can prolong tire life by thousands ©f miles, keep replacement bills at a minimum and reduce the danger of blow outs and skids. Present United Nations’ efforts to main tain peace and the consequent demands made upon the rubber industry to furnish supplies for military use, have resulted in partial limitation in the supply of our tires. We regret the inconvenience to our customers and, at the same time, assure you that our company is doing everything possible to keep U. S. Royal tires available to the public, within the limitations of our united efforts to preserve world peace. 1. Check air pressure frequently 2. Travel at moderate speed, take corves slowly ... 3. Start and stop slowly, at all times 4. Apply your brakes gently and keep them adjusted 5. Qieck wheel alignment 6. Cross-switch your tires every 2000 Miles UNITED STATES RUBBER COMPANY 166, 16th St., Port Area Manila Tel. 3-20-36 Distributors: Manila Dealers: KER & CO., LTD., Cebu, Iloilo REYES AUTO SUPPLY. 687-689 Evangelista PHIL. AGRICULTURAL EXPORT CO. (PAECO), Legaspi SQUARE AUTO SUPPLY, 635 Juan Luna Factors Affecting the External Value of the Peso International Reserves.—Between January 1 and May 31, 1951, international reserves increased by $34.5 million, bringing the Nation’s reserves up to $390,440,000 on May 31, 1951, as compared to $250,620,000 as of De cember 9, 1949, when exchange controls were first put into effect. During the month of May, 1951, however, a slight decline (less than $1 million) occurred. This decline is expected to continue in the following few months due mainly to relaxation of import controls during the second quarter of the year. Blackmarket in U. S. Currency.—According to re ports, the dollar blackmarket price has dropped to P2.40. This is undoubtedly due to the recent liberal import policy, the refusal of the Import Control Board and the PRISCO to permit so-called no-dollar imports, and the campaign being waged relentlessly by MIS, NGI, and CB agents against blackmarketeers of U.S. currency. Decline in Wholesale Prices of Exports.—Starting with 326.2 in January, the index numbers for all items of the major commodity exports rose to 342.4 in February; to 352.2 in March, and then dropped' to 329.7 in April, and 310.0 in May. Compared to the index numbers for April, in May copra lost 50 points; abaca, 18 points; coconut oil, 36 points; desiccated coconut, 16 points; canned pineapple, 6.5 points; and leaf tobacco, 119 points. On the other hand, sugar gained 15 points; lumber 7 points; cordage 15 points; and logs, 7 points. The balance of trade in May was still in favor of the Philippines. The Longer Outlook Developments during the first five months of the year, as can be gleaned from the accompanying statistics and the foregoing analysis, indicate a steady upward trend of inflationary forces until April after which there appeared the following deflationary influences: (1) a decline in wholesale prices of several export products; (2) a decline in retail prices; (3) a decline in money supply; (4) an im provement of the peso position in the blackmarket; and (5) an improvement in the financial position of the Govern ment. On the other hand, there is reason to believe that these influences would be ohly temporary because (1) of the enlargement in fiscal year 1951-52 of the U. S. defense program with the consequent additional cuts in civilian production; (2) of a possible setback in the gains already made in the financial position of the Government. The possible termination qf the Korean war at this time would hardly be considered a permanent recessionary factor as long as the cold war continues unabated and the great powers continue with their rearmament programs. The weight of economic opinion is that there are strong and dangerous inflationary forces which would make it unwise to relent on measures for combating inflationary pressures. Measures Recommended In line with the foregoing analysis and with a view to maintaining economic stability, observance of the follow ing policies are recommended: With the approval recently of several tax measures designed to increase government revenues, a relentless campaign of tax collection should be pursued. The pres ent policy of the Grovernment of keeping to a minimum bank borrowings should be continued. Non-productive and postponable expenditures should be avoided. Every facility should be extended to legitimate im porters of essential commodities in line with the policy of relaxing import controls in order to curb hoarding and blackmarketing of such commodities. The increasing difficulty of procuring essential commodities from foreign sources attests to the soundness of the policy recently adopted of relaxing control on the import of essential com modities; otherwise a paralyzation of the country’s indus trial and agricultural activities might have ensued and price inflation might have continued unabated. If the decline since May in the prices of some of the major items of exports should continue, it wpuld, undoubtedly, be reflected in the international reserves. However, unless the rearmament policy of the major powers is reversed, it is not believed that the probable diminution in the inter national reserves due to a possible continued reduction in export receipts would be large enough to make a reversal of our import policy immediately necessary. Economic stability in the Philippines depends not only upon factors arising within the country but also upon the economic developments in the international field. The Central Bank is thus confronted with the delicate and diffi cult problem of having to adopt policies for domestic mon etary stability which may, and often do, run counter to the international stability of the currency. It is for this rea son that the authorities of the Central Bank hope that the close coordination between monetary and fiscal policies which now exists will be continued, and that the adoption of measures which would endanger economic stability will be avoided. J- HE Great Sea, the brood of islands, Polynesia, the coast beyond; The coast you henceforth are facing,—you Libertad! from your Western golden shores... The countries there, with their populations... From Thibet, — from the four winding and far-flowing rivers of China, From the Southern peninsulas, and the demi-continental islands,—from Malaysia; These, and whatever belongs to them, palpable, show forth to me, and are seiz'd by me, And I am seiz’d by them, and friendlily held by them, Till, as here, them all I chant, Libertad! for them and for you." —WALT WHITMAN 256 Text of Draft of Proposed Tripartite Security Treaty among the United States, Australia, and New Zealand For consideration by the governments of Australia, New Zealand, and the United States of America: THE parties to this treaty. Reaffirming their faith in the purposes and principles of the Charter of the United Nations and their desire to live in peace with all peoples and all governments, and desiring to strengthen the fabric of peace in the Pacific area, Noting that the United States already has arrangements pursuant to which its armed forces are stationed in the Philippines, and has arm ed forces and administrative responsibilities in the Ryukyus, and upon the coming into force of the Japanese peace treaty may also station armed forces in and about Japan to assist in the preservation of peace and security in the Japan area, Recognizing that Australia and New Zealand as members of the British Commonwealth of nations have military obligations outside as well as within the Pacific area, Desiring to declare publicly and formally their sense of unity, so that no potential aggressor could be under the illusion that any of them stand alone in the Pacific area, and Desiring further to coordinate their efforts^ for collective defense for the preservation of peace and security pending the development of a more comprehensive system of regional security in the Pacific area, Therefore declare and agree as follows: Article I—The parties undertake, as set forth in the Charter of the United Nations, to settle any international disputes in which they may be involved by peaceful means in such a manner that international peace and security and justice are not endangered and to refrain in their international relations from the threat or use of force in any man ner inconsistent with the purposes of the United Nations. Article II—In order more effectively to achieve the objective of this treaty the parties separately and jointly by means of continuous and effective self-help and mutual aid will maintain and develop their individual and collective capacity to resist armed attack. Article III—The parties will consult together whenever in the opinion of any of them the territorial integrity, political independence, or security of any of the parties is threatened in the Pacific. Article IV—Each party recognizes that an armed attack in the Pacific area on any of the parties would be dangerous to its own peace and safety and declares that it would act to meet the common danger in accordance with its constitutional processes. Any such armed attack and all measures taken as a result thereof shall be immediately reported to the Security Council of the United Nations. Such measures shall be terminated when the Security Coun cil has taken the measures necessary to restore and maintain interna tional peace and security. Article V—For the purpose of Article IV, an armed attack on any of the parties is deemed to include an armed attack on the metro politan territory of any of the parties, or on the island territories under its jurisdiction in the Pacific, or on its armed forces, public vessels, or aircraft in the Pacific. Article VI—This treaty does not affect and shall not be inter preted as affecting in any way the rights and obligations of the parties under the Charter of the United Nations or the responsibility of the United Nations for the maintenance of international peace and security. Article VII—The parties hereby establish a council, consisting of their foreign ministers or their deputies, to consider matters concerning the implementation of this treaty. The council should be so organized as to be able to meet at any time. Article VIII—Pending the development of a more comprehensive system of regional security in the Pacific area and the development by the United Nations of more effective means to maintain international peace and security, the council, established by Article VII, is authorized to maintain a consultative relationship with states, regional organiza tions, associations of states, or other authorities in the Pacific area in a position to further the purposes of this treaty and to contribute to the security of that area. Article IX—This treaty shall be ratified by the parties in accord ance with their respective constitutional processes. The instruments of ratification shall be deposited as soon as possible with the Govern ment of Australia, which will notify each of the other signatories of such deposit. The treaty shall enter into force as soon as the ratifica tions of the signatories have been deposited. Article X—This, treaty shall remain in force indefinitely. Any party may cease to be a member of the council established by Article VII one year after notice has been given to the Government of Aus tralia, which will inform the Governments of the other parties of the deposit of such notice. Article XI—This treaty in the English language shall be deposited in the archives of the Government of Australia. Duly certified copies thereof will be transmitted by that Government to the Governments of each of the other signatories. The American and the Japanese “Conquests” of the Philippines By A. V. H. Hartendorp A leading Filipino, a member of the opposition, recently wrote an article, published in the daily press, in which he made the following statement which would seem to require an answer. He wrote: “. . . the original Filipino ‘collaborators’ were those who collabo rated with the American invaders when in 1901 they constituted here, as the Japanese did in 1942, after suppressing Filipino organized resist ance, an occupation government. The only difference was that the Americans came to stay, while the Japanese were thrown out. But the beginning was exactly the same ...” In connection with this statement, it will be of interest to know that there were Americans who were saying very much the same thing during the first part of the Japanese occupation! They were among the Americans in the Santo Tomas Internment Camp, and their expression of this opinion started many an argument. This so bothered the writer at the time that he took note of it and wrote a few pages on the subject in his history of Santo Tomas, which readers of the Journal know is still in manuscript. Those years of anguish were a time of much soul-searching, and conclusions reached then are perhaps of all the more in terest for that reason. The following was written about the middle of the year 1943: 'there were those in the Santo Tomas Camp who, hostile as was their attitude to the enemy, would not [at that time] join in any moral condemnation of Japan, saying with a proud show of detachment, that America had itself seized the Philippines by force of arms in 1898. They saw the difference, of course, between the American and Japanese policies, but thus sought to rule out the moral factor, probably because they wished to justify, not Japan, but America, even at the cost of accepting the principle of conquest. But even the Japanese tried to establish a moral justification for their aggressions by claiming that their aim was to end Western imperialism in Eastern Asia and establish the “Co-Prosperity Sphere”. The various peoples of Eastern Asia were to be welded into a family of nations, with Japan as the leader; inde pendence was specifically promised the Burmese and the Filipinos. However, the actual Japanese policy and the various measures adopted by the Japanese in the occupied areas did not square with this propaganda, nor did they 257 show 'any promise of ever squaring with it. Had Japan’s policy been what the Japanese propagandists claimed it to be, evidence of this would have been discern ible in those areas where Japan had been longer establish ed, as in Korea and Manchuria. Self-justification is an essential of human nature. The evolution of man has been not only a physical one, but social and moral. The course of evolution leads up from the brute, .the savage, the child, the self, to the family-member, the citizen, the patriot, the cosmopolitan, the humanitarian. All human enterprise has its ethical components. Ethical conceptions are the highest of which man is capable. They may not ever completely rule, but they colour and inspire. The establishment of American sovereignty over the Philippines did not come as a result of bald, premeditated aggression and conquest. Regardless of the ulterior mo tives of certain American empire-builders of that time, the American people went to war to liberate the nearby island of Cuba from a misrule against which they had pro tested for many years and which at last became intoler able. In the course of that war, the Spaniards in the Phil ippines were attacked and defeated. There was a strong feeling in America at the time that the independence of the Philippines should be recognized. But there was also the opinion that, by occupying the Philippines, America had assumed certain responsibilities which required that the Filipinos should pass some years under American pro tection and tutelage. There is not the least doubt that if America h^d not adopted the latter course, the Philip pines would have been seized by some other power, most likely Japan or Germany. That the Philippines would be held temporarily and prepared for ultimate independ ence, was the policy adopted, and this at a time when such a conception was a new one in statecraft. Though it was attacked by other colonial powers, that policy was never departed from. And though contrary to America’s isola tionist traditions, the policy was wholly in line with Amer ican idealism. The only question that ever arose concern ing it was that of the time required, and this soon became merely a political question. The relations between Amer ica and the Philippines were almost from the first the most amicable. There was good faith and confidence. From the beginning, America steadfastly did everything in its power to help the Philippines toward its goal. It was a case of the tutelage of a small nation by a great one,. and although some few individual Americans profited, to Amer ica as a whole the guardianship over the Philippines was only a responsibility, such advantages as were derived from it with respect to larger world-interests, being in direct. It was a collaboration in civilization. The pro gress made in the Philippines was phenomenal, in educa tion, in health, in political development. Economic devel opment was, in fact, held quite secondary. The Amer ican example became a world-ferment. In 1935, the time when the Philippines was to enter the family of nations as a sovereignty entity was set for 1946. That was the American case. America could stand on it proudly. There was no need to rule out the ethical aspects for America to justify itself. Japan stood in a very different case. The Japanese attack on America’s position in the Pacific was “provoked” only by America’s efforts to bring about an end to Japan’s aggressions in China. Japan’s attack on the Philippines meant an attack on and the subjugation of a people who stood on the threshold of independence. The Japanese claim that they were making war only on America in the Philippines and not on the Filipinos, was belied by every measure which they adopted. The systematic terroriza tion of the people, the destruction of all autonomous polit ical institutions, the seizure of not only all economic con trol, but of lands, mines, and factories, the efforts at the Japonification of the schools and churches, the press and the radio,—every development proved that the Japanese intended the measures they took to be of permanent force and effect. Here was not the displacement of a more backward culture by a highly developed one; here was the forcible substitution of a lower, indeed a barbaric regime for one culturally and ethically among the highest in the world. Here was destruction, tyranny, slavery, foul and cruel, reactionary and degenerate. Here was a blight, a disease, a rot which, starting in the Nazi dens of Germany, had spread to the East and now invaded a region that was still under the protection of the American Flag. Never would the overlords of Japan have dared to make this attack if they had not believed that Germany was on the point of overwhelming Russia and Great Britain, which, they conceived, would make it impossible for America to bring its forces to bear in the western Pacific. In their greed and envy, in their vanity and ignorance, urged on by Germany, they miscalculated, struck treacherously, and while now glorying in their easy successes over small local forces, which they conceived of as great victories, that glory was certain to be brief. The Japanese propagandists heavily stressed the idea that the Filipinos are an “Oriental” people, and Vargas was made to say in one speech which, accompanied by Japanese officers, he was made to repeat word for word in three different provincial capitals: “We should be proud that Japan considers us a potential member of the Co-Prosperity Sphere. It proves that Japan recognizes in the Filipinos not an inferior people, as do the Occidentals, but a brother and an equal.’* Every step the Japanese took in the Philippines gave this the lie. There is no brotherhood or equality under autocracy and totalitarianism other than a common slav ery. The Japanese attempted to stamp out individualism and liberalism and democracy in the Philippines under the pretense that these detested principles were American. They did not recognize that they were, although originally in a more primitive form, also Filipino and had been since those remote times when the people now known as Filipinos populated the country from across the seas in the bar angays, each a boatful of men in pursuit of happiness and determined to be free. The Japanese wanted to stamp out these hated ten dencies in the Filipinos not so much because they were American, not so much because they were un-Oriental (the greatest country in Asia, China, is also highly indi vidualistic and basically democratic), but because they were characteristics which unfitted the Filipinos for the slavery Japan planned for them. The false strains of the Japanese Army’s propaganda corps could not put the Filipinos to sleep. Every measure and act of the invaders showed them to be undisguised oppressors and exploiters. Compare the Japanese pronouncements quoted in this book to the Instructions of President McKinley to the Philippine Commission (April, 1900) already referred to. Though he said that the Commission should bear in mind that the government it was to establish was designed “not for our satisfaction or for the expression of our polit ical views, but for the happiness, peace, and prosperity of the people of the Philippine Islands”, and that the meas ures to be adopted “should be made to conform to their customs, their habits, and even their prejudices”, he went on to say: “At the same time, the Commission should bear in mind, and the people of the Islands should be made plainly to understand, that there are certain great principles of government which have been made the basis of our government which we deem essential. . .” The Japanese might have said that. America was after all going to insist on its own way in the Philippines! But what was that way? “ "which we deem essential to the rule of law and the maintenance of individual freedom.” 258 A strange way certainly for a “conqueror” to talk! And did President McKinley deny that the Filipinos knew anything about the freedom he wanted for them? No. He went on to say: . the rule of law and the maintenance of individual freedom, of which they have been unfortunately denied the experience pos sessed by us. ...” Was he planning to cram this experience down the throats of an unwilling people? Again, No. He said: " It is evident that the most enlightened thought of the Philippine Islands fully appreciates the importance of those principles and rules [of democratic government], and they will inevitably within a short time command universal assent.” The Americans understood the Filipinos better than their “fellow-Orientals”, the Japanese; treated them far more as “brothers and equals” than they. What in fact were the “Western impositions” laid on the Filipino people? McKinley listed them,—all drawn from the Constitution of the United States, which was to protect the Filipinos like it protected the Americans them selves: McKinley said: “Upon every division and branch of the government of the Phil ippines, therefore, must be imposed these inviolable rules: “That no person shall be deprived of life, liberty, or property with out due process of law; that private property shall not be taken for public use without just compensation; that in all criminal prosecutions the accused shall enjoy the right to speedy and public trial, to be in formed of the nature and cause of the accusation, to be confronted with the witnesses against him, and to have the assistance of counsel for his defense; that excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishment inflicted; that no person shall be put twice in jeopardy for the same offense, or be compelled in any criminal case to be a witness against himself; that the right to be secure against unreasonable searches and seizures shall not be violated; that neither slavery nor involuntary servitude shall exist except as a punishment for crime; that no bill of attainder, or ex-post-facto law shall be passed; that no law shall be passed abridging the freedom of speech or of the press, or the rights of people to peaceably assemble and petition the government for a redress of grievances; that no law shall be made respecting an establishment of religion, or prohibiting the free exercise thereof, and that the free exercise and enjoyment of religious profession and worship without discrimination or preference shall forever be allowed ...” Of every one of these great guarantees, certainly as desirable for Orientals as for Occidentals, the Filipinos were forthwith deprived by their “fellow-Orientals”, under the pretext of the desirability. of wiping out “Anglo-Saxonism”. Yet the Malolos Constitution of which Felipe A. Calderon is regarded as the principal author, arid which was adopted by the Revolutionary Congress in January, 1899, contained much the same provisions. What are the differences between Orientals and Oc cidentals? Do the Orientals love freedom less and oppres sion more? What was the “materialism” which the Jap anese so sternly rebuked in the Filipinos? Is it Oriental not to want to live well? What was this “simplicity” which they insisted the Filipinos must return to? Is it Oriental to settle down forever in thatch huts, ride behind a carabao, and toil for 20 centavos a day? What was this “thrift” and “self-denial” they extolled as such admir able qualities? Is it Oriental to sacrifice oneself and one’s children for the benefit of foreign masters? What was this unquestioning “obedience” they demanded from the Filipinos? Is it Oriental to surrender body, mind, and soul? . . . What was this “cooperation”, in which the Japanese summed up all this, but collaboration in self destruction? The difference between the Orient and the Occident and between Orientals and Occidentals are largely imag inary. Traveling philosophers and contrivers of romantic tales have conjured up separating gulfs and mysteries where none exist. As compared to the early stages of savagery of all meh, there are only slight differences in civilization and culture between the East and the West. As compared to the average human type, there are only slight differences in physique and temperament which everywhere merge into each other. With the rapid ad vance in world organization which may be expected to accelerate after the war, the people of the East and West will soon be thinking of each other in much the same way as the people of northern Europe now think of the people of southern Europe. Men are everywhere moved by the same instincts, appetites, and desires; they have in general the same aims and purposes, hold much the same beliefs and opinions, and all cherish the same dreams. Such differences as exist are more a matter of class than of race, and of education more than of class. Just now the Jap anese are more like the Nazi Germans than they are like any other Oriental people. The Filipinos, fortunately for everybody, are more like Americans. There is no reason why the Americans and the Fili pinos, “Occidental” and “Oriental” though they may be, should not walk on in history arm-in-arm. There is every reason that they should. Geographically, the Philippines are of the Pacific more than of Asia. Ethnologically, the Filipinos are affi liated with the Malaysian-Indonesian races,— with the . people of the great island groups that lie to the south and the people of Southeastern Asia, including Indo-China, Siam, and Burma. Culturally, the same connections hold good, except that the three centuries of Spanish rule in the Philippines resulted in the development of a culture that is in many respects similar to the culture of Latin America. This is no “veneer”, but an incorporation chiefly evidtent in reli gion, morals, and manners. This complex was further enriched and modernized by the American contribution during the past half century chiefly with respect to the .scientific, economic, and political facets of culture. Economically, Philippine ties with the West are far stronger than those with Japan or other Asiatic countries and they would remain so under conditions of natural development. Due to the uneven distribution of natural resources in the continents of the world, trade-lines do not run naturally north and south so much as east and west and diagonally across the world’s oceans. It is an absurd ity of the Japanese school of geopolitics that the northern and southern regions of the hemispheres can be made com plementary in any exclusive and autarchic sense. The culture of the Philippines is a more or less balanc ed complex of great richness and promise for the future. The Filipinos definitely belong to the freedom-loving, democratic, advancing portion of mankind. America’s coming to the Philippines was far more than a matter of passing “imperial strategy”, and the rela tions between the United States and the Philippines will not be determined in the long run by the temporary inter ests of shifting pressure-groups. The deep cultural inter ests of mankind can not be so easily subordinated. The great issue of History has always been the struggle be tween despotism and freedom . . . So far the excerpts from the Santo Tomas book. But the sense of the last sentence leads to the thought that that great historic issue today means continued col laboration between the United States and the Philippines in the Pacific. The underlying logic of history seems today also to point to a collaboration with the nation so recently an enemy of both,—Japan, though this would come hard at first. As for invasions and conquests, certainly, they are not always evil in themselves, and there are differences; they are not all alike either in origins or in consequences. Indeed, during those terrible years of the Japanese occupa tion, the people of the Philippines movingly demonstrated that they recognized this difference, even though our friend, quoted at the beginning of this article, whose gift of sar casm is known sometimes to carry him too far, pretends otherwise. There are conquests as liberating as the con quests of love. 259 Oil Production and Trade* By J. A. Parrish General Manager, Standard-Vacuum Oil Company President, American Chamber of Commerce of the Philippines IT is understood by me that I am your guest speaker today in the capacity of President of the American Chamber of Commerce. Consequently, I may have been expected to speak on a subject with which trade organizations ordinarily concern themselves. With your permission, however, I have chosen to talk about something which may appear far removed from your day-to-day activities. My an nounced subject is applicable to my text in an indirect way only, but it is easy to see how the Philippines fits into the picture. I refer to the geographic location of the proved oil resources of the world and the importance to be attached to the future control and disposition of this most strategic resource. Russia and the satellite countries are excluded throughout these remarks. To an ever greater degree it is being im pressed upon everyone that oil has become fundamentally an interna tional commodity. The wide distribution of this great source of energy, which has been found in quantity in widely separated areas of the globe, has brought it within the power of all people to take advantage of its potentialities. To do justice to the subject I should first be able to put you in a frame of mind to appreciate fully the contribution which oil makes to your individual lives and to the security and economic well-being of your country. I might begin by telling you that no less than 50% of all energy generated in the world today results from the consumption of oil. This figure is naturally greater or smaller in the individual coun try, depending on the possession of good supplies of coal and the extent to which the development of hydro-electric power has been possible. None of you need be told, however, that your motor cars and trucks, your tractors, your planes, and your ships, and to a great extent your mills and factories operate on oil. The process products, the chemicals, the industrial and agricultural applications which derive from oil are too numerous to name, but the volume of such products is huge and the part they play in the better life we all live is of far greater value than I can indicate in this paper. Civilization will continue to advance and political and economic stability in each country will increase with the number of people owning and enjoying the material things which result from the application of petroleum energy in the field of industry. Industry will continue to grow as the geologist and the technologist find and produce more oil and as the chemist and engineer succeed in further breaking down the mysterious molecules of this substance so that they may be regrouped or combined with other substances to serve a yet wider range of uses to mankind. It must be conceded, therefore, that oil-producing and oil-market ing companies of the world have performed a great public service in making possible the use of petroleum for such a multitude of purposes. As a matter of fact, the use of oil and its derivatives has reached such proportions and has become such a determining factor in economic and social advancement that the per capita consumption of oil can almost be taken as a measure of the' standard of living the world over. The reality of this contention appears to be borne out by a few simple comparisons. In the most prosperous and stable country of the world, which is the United States, the consumption of petroleum pro ducts currently runs at about 600 gallons per annum for each person enumerated in the census. This figure compares with 101 gallons per person in Britain and 63 gallons per person in France and perhaps somewhat less for the rest of free Europe. The average for the world as a whole proves little, but you will be impressed by the fact that in Asia the present rate of consumption of oil per annum is probably less than 10 gallons per person living in that vast area. That immense land area commonly referred to as Asia, and comprising everything between the Persian Gulf region and the Pacific Ocean, covers 1/3 of the sur face of the earth, contains 35% of the world’s population, and yet ac counts for less than 5% of the world’s resources and consumes oil at the rate of about 6 gallons per person per year, or about 2-1/2% of the total oil produced. An immediate deduction which can be drawn from these statistics is that the potential consumption requirements of Asia are tremendous. Being presently far behind the Western countries in industrialization and mechanization, the rate of increase in demand in Asia should exceed that o’f other countries over the next several decades. , It is an error, however, to assume that well-being can be engen dered or supported in any area by an excessive degree of industrializa tion. There is a correct balance to be sought in every country between industrial activity on the one hand and the promotion of enterprises of an agricultural nature on the other. In both of these fields, however, the maximum degree of mechanization should always be achieved. The substitution of mechanical energy for human energy means greater per man output of the things that comprise wealth and satisfy the desires of the people. This fact goes far toward explaining the causeand-effect relationship existing between the high standard of living which has been attained in the United States and the per capita con sumption of petroleum products there. As the present, the total proved oil reserves of the world, stand at approximately 86 billion barrels—a barrel being the equivalent of 42 U.S. gallons. These proved reserves are divided almost equally between the Eastern Hemisphere and the Western Hemisphere. While the Western Hemisphere holds roughly 50% of the world’s proved oil reserves, it is producing and supplying 75% of the world’s present-day requirements. Of the 43 billion barrels of oil located in the Western Hemisphere, about 30 billion barrels lie within the borders of the United States. The remainder of Western Hemisphere oil is found in Mexico, Central and South America, and Canada. With approximately 1 '3 of the proved oil reserves of the world, the United States is producing more than 1/2 of the total world output. At the same time, consumption of oil in the United States amounts to 2 '3 of all the oil produced in the world. Further than that, if the present trend of consumption-increase in the United States continues, that country alone in two decades will be consuming more oil than the entire free world produces today. That is indeed a situation of the greatest significance and points up the extent to which the world’s largest producing nation is already dependent on oil which comes from outside its own boundaries. From the figures just quoted, it might appear that in the not dis. tant future the world might run out of oil. As a matter of fact, however, experts in geology are not presently so concerned about this possibility as they were several years ago. It is true that consumption is increas ing by leaps and bounds, but so is new discovery. The prolific new fields of Canada, of Central Sumatra, and in some hitherto unknown regions in the United States have recently added substantially to the already known reserves. Development of additional oil in the Middle East is more than meeting expectations. npHE Eastern Hemisphere holds 50% of the world’s proved oil A reserves and produces 25% of present world consumption. Of the 43 billion barrels of oil reserves known to exist in the Eastern He misphere, 41 billion barrels lie under the sands of the area known as the Middle East. The remainder of Eastern Hemisphere oil is found prin cipally in Indonesia and British Borneo with small quantities being produced in Burma, Egypt, and Free Europe. The Middle East producing area comprises the countries of Iran, Saudi Arabia, Iraq, and the Sheikdoms of Kuwait, Bahrein, and Qatar. Not only is the Middle East the greatest known source of oil in the world today, it is also the oldest known source. Development of that region, however, did not begin until 1904 when a British concern brought in the first commercial well in the country now known as Iran. Despite the known potential and the accelerated scale of development since the war, the Middle East fields have as yet hardly been touched. With its vast holdings, equal to 47-1/2% of world reserves, this particular region produces currently only about 17% of the world supply. Proved re serves there are 1-1/2 times the reserves in the United States and es timates place it at no less than twice the United States potential. To review the overall figures then, the Western Hemisphere holds 50% of the free world's oil and produces 75% of requirements. The Eastern Hemisphere holds 50% of reserves and produces 25% of world demand. Obviously, therefore, the oil reserves of the Western Hemisphere are being depleted at a much more rapid rate than is true in the rest of the free world. Since the current trend in depletion of reserves in the Western Hemisphere can not be materially altered in the foreseeable future, without incalculable harm to defense measures and standards of living everywhere, it becomes absolutely essential that oil presently being produced and the great stores of oil yet in the ground in the Middle East continue to be available to those countries where economic life is dependent upon this oil. In a very great sense the great growth in the use of oil around the world tends to bind all peoples together and to make all nations interdependent. Through the medium of oil the economy of Europe is woven into that of the Middle East. In turn, the Middle East is dependent upon the industrial nations to transform its great oil resources into products which are in demand and which can be used for the betterment of life all around. Industrial nations need the Middle East oil no more than the Middle East needs the capital and skills required to bring out and convert an otherwise dead resource into products that have value. Anxiety in some quarters regarding oil reserves does not concern itself so much with the sufficiency of oil now in existence and yet to be found, as it does with what may happen to some of these reserves which up to the present have been at the disposition of all free coun tries. To be more specific, should the 45% of the world’s proved oil reserves which lie in the Middle East, or any substantial part of this, come to be denied to the free world for any reason, the result would be disastrous. Should the Middle East oil or any important portion of it disap pear behind any kind of curtain, the Western Hemisphere would find it extremely difficult to supply its rapidly growing needs and have enough left to meet even the minimum peacetime requirements of Europe alone. Loss of Middle East oil would present the United States itself with the unpleasant choice of curtailing its current preparedness activity and rationing its own citizens or turning its back on Europe 260 where, since the last war, the American people have poured out several billions of dollars to promote economic welfare and contentment among the people. This does not mean that in case of an emergency some countries would have as much oil as they needed and others would have corre spondingly less. After the last war, it was demonstrated to the satis faction of all free countries, whether oil was produced within their borders or not, that so far as could possibly be arranged, each country received a fair share of the oil that was available. It can be anticipated that this would be the case again in the event of a shortage in oil sup ply. While this reassuring fact does not provide against the hardships which always attend petroleum rationing, it does point up the extreme importance of maintaining the maximum of the world’s oil resources under the control of those nations which can be depended upon not only to protect them with all the force at their command but to con tinue to share these resources under all circumstances with other coun tries which are devoted to liberty and free enterprise. It is American and British interests which Wave explored and de veloped the oil resources of the Middle East under arrangements which have been freely entered into with the governments of those countries. These accomplishments have been achieved at tremendous expense and at the risk of enormous amounts of capital. Success in these in stances can be attributed primarily to two factors. One of these is the intensely competitive character of the oil industry operating under private control. The other has been the prevalence generally of con ditions that encouraged private capital to take the risk attendant on the hazardous business of searching for oil. Petroleum executives and military minds of the United States and Britain have been aware of the strategic value of Persian Gulf oil for the past half century. It is only within the last few months, however, that the importance of these resources has been brought forcibly to the attention of the rest of the world. It is a matter of serious concern to all democratic nations that in this group of small countries, bordering on a powerful Communist state, but without the strength to protect their own frontiers, is to be found roughly 1/2 of the world’s oil supplies. Who owns the oil pools of the Middle East is not necessarily of major importance to consuming countries. Who controls the distribu tion of this most vital material, however, occupies a position of the greatest responsibility. Because of the fundamental importance of petroleum in all phases of industrial activity and especially in military operations, it becomes a matter of the greatest necessity that provision be made for the protection of all important sources of supply, of trans portation routes and of plants in which it is manufactured into essen tial products. In this connection, no matter what weight is given to other seg ments of the picture, there will always remain the extremely important truth that inequality of oil supplies available to the two sides in a world conflict "could and undoubtedly would spell victory for the side which is the more fortunately situated. It was Lord Curzon of England who said after the first World War that the Allies had floated to victory on a sea of oil. The significance of that observation was proved even more clearly in the last conflict. It is a matter of record that in World War II out of every three tons of supplies shipped to the Allied Forces overseas, two tons consisted of petroleum products. I daresay it would now be the confession of military men that without the oil supplies which the Allies were able to draw from the relatively near-by Middle East fields, the last war in Europe might not have been brought to a satisfactory conclusion. It is further agreed by military experts that in another war of world dimensions, involving operations in both hemispheres, two to three times the petroleum consumed in the last war would be required, due largely to multiplication of planes and high-powered weapons which would be brought into use. Perhaps these circumstances will throw some light on the oil policies which have been followed by the United States and Britain with regard to the foreign oil holdings of their nationals, and will help explain the exhaustive efforts that are being made to arrive at a just settlement of the oil problem which has recently presented itself in Iran. Since the last war, it has been generally accepted that no nation can live alone in this world—not even the most powerful nation. All of us need friends to survive. Not only must we be strong but our friends must also be strong and we should strive to have it that way. That, I understand, is the object of the Marshall Plan, the Point Four Program, and other similar undertakings. The development and main tenance of strength among our friends should present us with a greater feeling of security with regard to our own future. Dy this time you may be inclined to ask at what point do these ■^circumstances affect the Philippines. And it may appear to you that oil for the Philippines is merely a routine factor of world trade. Let us, therefore, take a look at the flow of oil in world trade. We may start with the fact that the vast production of oil in the United States has no effect on world oil trade because it is all consumed at home, and a great deal more besides. On the other hand, of the 3-1/3 million barrels of oil which moved in international trade every day in 1950, nearly 1/2 came from the fields of the Middle East. Of the oil which was exported from the Middle East last year, 60% went to supply 3/4 of the requirements of Europe. The remaining 40% of Middle East production was distributed over much of the rest of the world, includ ing the United States and the Philippines. 'T'o come back home for the few minutes remaining, I have been asked many times whether my company thought there was oil in the Philippines. The only possible answer to that question is that . we do not know and I feel equally certain that no one knows. If it were known, there would surely be a thundering stampede to the local ity of it. Like gold, oil is where you find it. Whether or not it exists in the substructures of the Philippine Archipelago can only be deter mined by more exhaustive geological and geophysical examination than has yet taken place. Even then, no one can be sure that oil is present anywhere until a hole is drilled into the earth at the prospective locality. A good deal of geological work and some drilling has been done in the Philippines and I believe all the useful data collected in these examinations and tests have been placed at the disposition of the Gov ernment. At this time, however, and on the basis of data already gathered, it probably could not be stated positively that geological conditions of the land area of the Philippines are favorable to the oc currence of oil in commercial quantities. A few things about oil exploration are known with certainty, and they are, that it costs a great deal of money, takes years of time, re quires expert personnel, and can only be accomplished under stable political conditions in the country. Whether or not exploration takes place anywhere will always depend upon the conditions to which the exploring investor must subscribe. When an experienced oil company comes to consider the feasibility of undertaking oil exploration in any country, it naturally measures the necessary capital outlay and the risk involved against the prospect of securing a reasonable return on the venture, il know of no other formula by which capital can be per suaded to employ itself in any enterprise. There can be no doubt, how ever, that when conditions under which oil exploration can be under taken in this country are found to be favorable, experienced and re liable oil companies will manifest their interest. Negotiations to that end between the Government and one oil company were continued over a period of two years following the close of the last war but an agreement was not reached. For the foreseeable future, therefore, the Philippines must depend for its oil requirements on sources which lie outside of this country. Because of that fact, and the other conditions I have mentioned, I re peat an observation which I have already implied to the effect that it would appear to be to the best interest of the Philippines if assurance could be established that presently known oil reserves of the world would continue to be distributed under the auspices of those nations which have developed them and which have shown no disposition to withhold this essential commodity from the free channels of world trade. TTODAY, the Philippines and the United States are working together in a free partnership in order to promote and protect the interests common to both... Filipinos and Americans, by continuing to work together in mutual confidence and respect, can proudly show the whole world what cooperation among free democratic nations can achieve.”—Ambassador Myron M. Cowen. 261 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From an Official Source JULY 1 — President Elpidio Quirino issues Executive Order No. 456 creating the new Import Control Commission to assist him in the execution of Republic Act No. 650. July 2 — The President issues Administrative Order No. 159 pre scribing the policies, rules, and regulations for the enforcement of Act No. 650, and it is announced that he has appointed Demetrio Santos, former Import Control Commissioner, as the executive officer of the new Import Control Commission. The President approves the amount of $137,000 as available for all controlled commodity imports during the semester ending December 31, 1951, of which amount $43,000,000-will be for items not listed in Appendix A of Act No. 650 and not decontrolled, and $94,000,000 for essential items listed in the Ap pendix. The Department of Foreign Affairs announces that the President of the United States has appointed Dr. Roland R. Renne, President of the University of Montana, as Chief of the E. t. A. Mission in the Philippines. The Philippine Council for United States Aid announces that a large public health program will be launched before the end of the year, made possible by an ECA grant of $393,233 and the Government’s counterpart fund of P885.000, which will cover intensified medical and dental services in the schools, malaria control in new settlement areas, and augmentation of the facilities of the Alabang serum and vaccine laboratories. July 3 — The President administers oaths of office to the newly created Import Control Commission composed of Alfredo Montelibano, Chairman, and Alfonso Calalang and Francisco Ortigas, members, and to Demetrio Santos as Executive Officer. At the annual review held in honor of the Commander-in-Chief, at Fort McKinley, the President speaking before a composite regiment representing all the major commands, commends the Armed Forces of the Philippines “not only for strengthening the people’s faith in their Government but also for its splendid record in the Korean battlefields”. On the eve of the fifth anniversary of the Philippine Republic, the President extends conditional pardon to 55 prisoners. The PHILCUSA announces that with ECA aid amounting to $196,000, a geological survey will shortly be undertaken, including the investigation of coal fields in connection with which the expansion of operations in the Malangas Coal Mines (Zamboanga) will be given prio rity. July 4 — The President receives congratulations on the occasion of the fifth anniversary of the Repqblic from President Harry S. Tru man, President Syngman Rhee (Korea), the King of Siam, President Chiang Kai-Shek, the King of Denmark, and others. The Fourth of July is celebrated and the opening of National Achievement Week is initiated with ceremonies on the Luneta, a great military and civic parade, and an address by the President; concerts, public stage shows, a popular ball on Plaza Santa Cruz, and firework displays follow in the evening. Agricultural, industrial, and art ex hibits mark the whole week. July 6 — At a Cabinet meeting the President instructs Secretary of Foreign Affairs Carlos P. Romulo to advise groups of Moros planning to make the annual pilgrimage to Mecca against going this year be cause of the unsettled conditions in the Middle East. Tn connection with the vacancy in the International Court of Justice at The Hague, the Philippines having been asked to nominate a candidate, the Cabinet decides to recommend the nomination of Dr. Jorge Bocobo to the nom inating committee created in 1948 which is composed of Justice Ramon Avancena, Justice Sabino Padilla, and Dr. Jose P. Laurel. The Cab inet approves a plan, first suggested by the President, to construct a boulevard from the new Luneta grandstand to Ayala Boulevard. July 7 — The President delivers an address at the final meeting of the 3-day labor-management conference held in connection with Achie vement Week and presided over by Judge Arsenio Roldan of the Court of Industrial Relations. The President removes Director of Labor Felipe Jose from office for “abuse of authority, violation of his oath of office, and conduct highly unbecoming in an official of his rank". July 8 — Alfredo Montelibano, Chairman of the Import Control Commission, announces that all import control licenses approved by the old ICA and PRISCO will be recognized but that their release will have to await the organization of the new office; he estimates that the approved licenses not yet released total around P22.000.000 in value. July 9 — Announced at Malacanan that the President has suspend ed Manila Councilor Amado Hernandez pending the disposition of the case against him on charges of rebellion. July 10 — The President recommends to Congress the passage of a joint resolution terminating the state of war with Germany in line with the invitation of the United States, Britain, and France to the other allied nations to consider domestic measures to facilitate the “integration of the German Federal Republic (West Germany) into the community of peace-loving peoples”; Administrative Order No. 160 creates an inter-departmental committee composed of representa tives of the Departments of Foreign Affairs, Justice, Commerce and Industry, and National Defense to consider the necessary steps. Following conferences with Moro leaders, Malacanan announces that the annual pilgrimage to Mecca will be permitted but that the pilgrims will go in one group instead of several. The United Nations Plaza at Wallace Field, Manila, is inaugurated with a flag ceremony, with Mrs. Victoria Quirino Gonzalez, daughter of the President, raising the Philippine flag; the United Nations flag was raised by two representatives of the 10th Battalion Combat Team who were both wounded in Korea. The MacArthur Bridge, on the site of the former Santa Cruz Bridge, Manila, is officially inaugurated. July 12 — The President announces that he has instructed Secre tary Romulo to call a meeting of the Japanese peace treaty committee .stating that “in view of the fact that the latest draft (of the treaty) presented to us practically side-tracks our claims for reparations, I consider it necessary that the different representative elements that have assisted me to define our stand be consulted anew.” July 13 — The President at a Cabinet meeting appoints an inter departmental committee to take measures to promote various cottage industries. July 14 — The President, in an address at the inauguration of the Tonsuya bridge, renamed the Quirino Bridge, in Malabon, turned over to the Government today by the U. S. public roads bureau, reasserts the Philippine demand of reparations from Japan. Announced that the Government, with the approval of the United States Government, has decided to permit the export of not to exceed 5% of the present sugar production (equivalent to around 40,000 long tons) to neighboring Asiatic countries; Philippine sugar interests have opposed the move in view of the fact that the full Philippine quota in the United States has not yet been filled, but it is believed that the 1952-53 production may do so. July 15 — The President creates the Board of Directors of the reorganized National Rice and Corn Corporation (NARIC) which had previously been merged with the Price Stabilization Corporation (PRIS CO); the Board is composed of Pablo Lorenzo, Chairman, and Servillano de la Cruz (former NARIC manager), Dr. Jose Soriano (a Ne gros Occidental planter), Eufronio Caluag (a Bulacan rice planter), and Juan Bigornia. July 16 — Foreign Secretary Romulo conveys to the President the decision of the 15-member Japanese Peace Treaty Committee to maintain its stand that the draft treaty is unacceptable. The President, in a conference with the members of the Import Control Commission, approves the allocation of $137,000,000 to cover imports for the remainder of the year and also the plan to turn over all records of the licenses issued by PRISCO to the ICC which will handle the future issuance of all licenses. July 17 — The Council of State formally endorses the stand of the President and his foreign policy advisers against the proposed peace treaty in its present form; thetPresident, who presided, held a halfhour conference with American Ambassador Myron M. Cowen just before the meeting. The PHILCUSA submits a progress report to the Council of State on the $15,000,000 interim ECA aid to the Philippines, alloca tions of this amount having been completed and the first shipment of supplies procured under these allocations, 4000 tons of fertilizer, having arrived in Manila on July 12. The Department of Foreign Affairs announces that a West Ger many trade delegation will arrive in Manila on July 25, to stay here for a week. Contrary to the President’s admonitions, a crowd of young people in Plaza Moriones burns a portrait of Ambassador John Foster Dulles, chief author of the Japanese peace treaty draft. July 18 — The President administers the oath of Office to former Governor Gabriel Belmonte of Nueva Ecija as General Manager of the revived NARIC. July 19 — At a Malacanan luncheon given in honor of Governor Thomas Dewey of New York, here on a 3-day visit, the President states Governor Dewey answered in part: 262 Capital........................ 10,000 Undivided Profits . 6,464 Surplus........................ 10,000 4,157 3,689 10,000 5,225 3,689 10,000 7,430 3,689 The President names 5 ad interim members of the Board of Di rectors of the Philippine Sugar Institute,—J. Amado Araneta, Oscar Ledesma, Manuel Elizalde, Ernesto Santos, and Jose L. Manzano. The Institute will undertake research work for the industry in connec tion especially with the improvement in yield and the production of by-products, and will buy and operate the Insular Sugar Refinery Com pany of the National Development Company at Mandaluyong. For its operating expenses, the law which created the Institute imposes a tax of P.10 per picul on sugar. July 20 — The President announces the appointment of Aurelio Quitoriano as ad interim Under-Secretary of Labor. The President authorizes the Collector of Internal Revenue to make public the income tax returns for 1950 of all members of the Cabinet. July 21 — The President issues Executive Order No. 459 lifting the control on the prices of all kinds of wheat flour and establishing new ceiling prices for certain canned meats and for locally prepared coffees. Malacanan announces that the President refused to reconsider his March 22 order for the deportation of 33 Chinese nationals convicted of profiteering in prime commodities by the Manila court of first instance; however, he suspended the deportation of 59 other Chinese nationals and 1 Indian merchant pending a rehearing by the Deportation Board. July 24 — Announced that the NARIC will import 25,000 tons of rice from Siam to bolster the local supply. July 25 — The President confers with Defense Secretary Ramon Magsaysay concerning the peace and order campaign in various parts of the country in connection with his expressed desire to lift the sus pension of the right of habeas corpus before the forthcoming elections. Following several conferences between Secretary Romulo and Ambassador Cowen, the Peace Treaty Committee, after receiving Romulo’s report on the status of conversations between Manila and Wash ington, agrees unanimously to insist on its original stand that the treaty draft in its present form is unacceptable to the Philippines. The dis cussions centered about both security and reparations. (Continued on page 282) Banking and Finance By G. A. Benson Sub-Manager, Port Area Branch National City Bank of New York P793.629 P999.259 Pl,019,330 Pl,008,667 'The international reserve figure declined for the second A consecutive month as a result of excess sales of foreign exchange to cover imports. Heavy arrivals of import bills the next few weeks, coupled with lower prices for ex ports and the end of the sugar export season, will doubt less continue this trend in the reserves for the immediate future. The prevailing tight money conditions have not yet been reflected in higher interest rates. Substantial cash margins required by banks to open credits plus the 17% excise tax has siphoned off consider able amounts of cash from merchants, who report resistance against cash sales all along the line. Collections general ly are slower. It is anticipated that, with heavy import arrivals the next few weeks, banks will be asked to carry a good portion of the inventories. A monetary report just released by the Central Bank covering the January-May, 1951, period shows that: (1) The money supply reached an all time high of Pl,293,980,000 in April, but dropped to Pl,275,699,000 in May. (2) Loans and discounts, overdrafts and customers liability acceptances for Philippine banks increased by P24.000.000 between January 1 and April 30. (3) Excess bank reserves dropped from P135,600,000 as of De cember 29, 1950, to P29.400.000 as of May 25, 1951. (4) The Monetary Board has authorized some loans to banks in order to facilitate their financing of exports and imports (control on which has been relaxed lately as an anti-inflationary measure). Ordi narily, when inflationary conditions exist, the Central Bank is averse to the granting of credit to banks. (5) On account of the improved condition of the finances of the Government, borrowings from the Central Bank to meet operating expenses have been greatly reduced compared to last year’s. How ever, P86,218,900 was released to the Government from January 1 to May 31 in order to complete the construction of the Maria Cristina power and fertilizer plants, the Ambuklao hydro-electric power pro ject, and other similar projects. These funds will not all be spent this year, but the release had to be made because the power of the Central Bank to make such advances expired on June 30, 1951. COMPARATIVE statement of condition of the Cen tral Bank: As of Dec. 31 1949 As of April 27 1951 As of May 31 1951 As of June 29 1951 ASSETS International Re (In thousands of Pesos) serve ........................ Contribution to In ternational Mone P460.689 P583.098 P561.326 P544.207 tary Fund.............. Account to Secure 30,000 30,000 30,000 30,000 Coinage................... 113,306 107,570 107,570 107,570 Loans and Advances. 77,047 47,338 163,197 18,645 19,608 Domestic Securities.. Trust Account-Secu rities Stabilization 92,197 234,959 234,536 Fund........................ — 6,848 6,848 6,848 Other Assets.............. 20,390 61,208 59,982 65,898 LIABILITIES 1*793,629 1*999,259 Pl,019,330 P 1,008,667 Currency—Notes.... P555.576 P671.052 P656.523 P634.443 Coins.... Demand Deposits— 74,384 93,735 93,722 93,682 Pesos........................ Securities Stabiliza 117,682 173,224 203,478 202,970 tion Fund............... Due to International 2,000 6,848 6,848 6,848 Monetary Fund. . Due to International Bank for Recon struction and Dev 22,498 499 496 496 elopment................. 2,389 2,636 2,383 2,383 36,966 2,383 46,726 Other Liabilities. ... 33,671 Credit By W. J. Nichols General Manager, General Electric (P.I.) Inc. THE survey of members conducted by the Association of Credit Men for the quarter ending June 30, 1951, indicated that 74% of the balances in trade-accounts were in Current condition. This was equivalent to an average of 33 days billings. This represents an increase over the previous quarter and shows that turn-over of receivables, as reported by the Association members, is decreasing, considered a normal trend at this time. Recent decontrol of many essential commodities has led to tying up large amounts of cash for imports. Demand for credit has accordingly increased in the last few months very noticeably. It is anticipated that the trend will continue at least for the immediate future. Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas & Company June 16 to July 13 PEACE prospects in Korea together with a recovery in the local free-market gold price to around Pl23 per fine ounce combined to set off a sharp advance in mining shares during the first two weeks of the period under review. However, there has been no follow-through to the buying, and it is evident that the movement was a rebound from a temporarily oversold condition, and not the start of a broad upward movement. 263 0 0 During the past two weeks the market has been quiet and easier, with moderate offerings being absorbed at gradual small price concessions. The principal factor in the mining section of the market at present is the tighter money situation which has developed over the past month or two as a result of the Government’s liberalization of import restrictions coinciding with the need for cash for tax payments. The second income tax payment is due in the middle of August, and it seems doubtful if the position will improve to any extent until after that date. In the commercial and industrial section of the mar ket, San Miguels have continued to attract investment demand, and a substantial volume of shares have changed, hands. Business in other equities, however, has been slow. Fixed interest securities continue firm, mainly on institutional buying. MINING SHARES OVER-THE-COUNTER H. E. Heacock 8s Co......................................... Jai Alai Corp........................................................ Philippine American Drug Co......................... Philippine Electrical Manufacturing Co....... Victorias Milling Co., Inc................................ P100.00 4.00 165.00 98.00 180.00 P100.00 4.00 165.00 98.00 180.00 Close Total Sales P100.00 30 4.00 50 165.00 64 98.00 130 180.00 115 Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company 1941 Average—16,316,000 KWH 295 06 0 13 3 50 0 Low 61.71 0.09 *012 21 0 0 04 78 0051 0 802 5 30 085 017 2 0 0 25 0 08 0 135 0 042 0 08 0 025 0 0 0 90 05 455 0 0 0 17 016 205 0 0 0 20 09 27 0 0 0 0 0 345 038 10 0 0 0 •Ex-Divi High M. S. E. Mining Shares Average....................... < Acoje Mining Company Antamok Goldfields.... Atok Big Wedge Min ing Co.*.................... Baguio Gold Mining Co................................. Balatoc Mining Com pany ............................ Batong Buhay Gold Benguet Consolidated . Coco Grove Inc............. Consolidated Mines, Inc................................ Hixbar Gold Mining Co............_.................. Itogon Mining Com pany ............................ I. X. L. Mining Com pany ............................ Lepanto Consolidated* Masbate Consolidated.. Mindanao Mother Lode............................ Misamis Chromite, Inc. Paracale Gumaus Cons. San Mauricio Mining Co................................. Surigao Consolidated*.. Suyoc Consolidated . . . United Paracale Mining Co................................. 98.63 .26 .24 .1025 .002 4.40 .065 014 21 1025 042 64 03 .36 .32 .029 .0675 .21 .10 Close Change Total Sales .1025 2.00b .002 ,0022b Off 4.35 Up ,07b Up 1.35 .055 .0135 .195 .10 .04 .62 .027 .325 .28 .029 .06 .035 .03 .0008 .05 .01 475.500 45.000 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 40,405,000 37,611,000 40,712,000* 37,529,000 42,090,000** 38,774,000 39,872,000 38,791,000 40,657,000 39,268,000 41,099,000 .014 Up .195 Up ,11b Up .04 Off .62 Up .028 Off .325 Up ,011b .08b ,17b .295 Up .029 Up .0005 .035 .0075 .002 .02 .002 .01 .03 .002 .06 Off .01 57,000 177.500 429,250 20,000 1950-51 Range High Low 128.00 78.00 COMMERCIAL SHARES Lor Close Change Total Sales 90 00 55 00 7.00b 209 00 118 00 135 00 90 00 40 00 20 00 217 235 27 00 00 00 00 1 00 0 27 35 00 0 18 0 18 0 40 0 25 0 0 0 0 085 085 105 00 100 00 150 00 135 00 7 0 27 50 75 50 0 25 50 30 00 1075 38 00 25 50 00 94 00 105 100 00 16 00 16 00 8 50 6 High Bank of the Philippine Islands......................... 128.00 126.00 129.00b Up 9.00 Bogo-Medellin Milling Co................................. Central Azucarera de Bais, Inc..................... 90.00 90.00 90.00 Central Azucarera de la Cariota.................. 170.00 Central Azucarera del Pilar............................. — Central Azucarera de Tarlac......................... 38.00 China Banking Corp.*.. — Filipinas Cia de ScguInsular Life Assurance Co................................. — Manila Broadcasting Co..........................................27 Manila Wine Merchants, Inc................................ * ’* Marsman & Co., Inc. Common..................... Marsman 8s Co., Inc. Pref............................. Mayon Metal................ Mayon Metal 7% Pref............................ Meralco 6-1/2% De benture ..................... 105.00 105.00 105.00 Up 2.00 Metropolitan Insurance Co................................. — PAL................................. — Pampanga Bus Co. ... — Philippine * Guaranty Philippine Oil Develop ment Co., Inc.................... 015 San Miguel Brewery Common*................... 35.00 33.50 34.00 San Miguel Brewery 7% Pref.*............................100.00 98.00 98.00 San Miguel Brewery 8% Pref.*............................ 103.50 103.00 103.50 Universal Insurance & Indemnity.................. Williams Equipment Co. Common............ 100.00b 30.00 38.00 Up 5.00 270.00b — 26.00b 5.50b .27 .27 Off .09 100 100 540 1.35 4.00 L35 Up .55 1,750 ,20a ,09b 2,340 * Ex-Dividend T-Bonds sales reported in units of P100 150.00b 6.00b ,50b 26.50b .015 .015 Up .003 100,000 Off Up 6.50b .25 .50 680 Total................................... 458,576,000 ♦Revised ♦♦Partially estimated Anew output record was set in July. The total was 3,216,000 KWH, or 8.3% above July, 1950. The highest daily output previously recorded in December, 1950, was also exceeded on July 31, the new record being 1,477,900 KWH. There is every reason to believe that August and succeeding months will show continued record outputs. 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 July numbered 574, with a total value of P6,101,064, as compared with 651, with a total value of P6,601,585, registered during the preceding month of June. Of the July total, 168, with a total value of P2,839,423, represented deals within Manila proper, while 406 sales, with a total value of P3,261,641, were sales within the cities of Quezon and Pasay, and in the suburban towns of Caloocan, Makati, Mlalabon-Navotas, Mandaluyong, Paranaque, and San Juan. Among the bigger sales registered during the month were: A whole block in Intramuros bounded by Legaspi, Muralla, San Francisco, and Real streets, was sold by the Hospital de San Juan de Dios to the Lyceum of the Philippines, Inc., for P360.432; A damaged 2-story concrete building on an improved lot of 13,487 square meters in Baclaran, Paranaque, was sold by Dona Margarita Zobel de Ayala to Francisco Villaroman Foundation for P260.000; A tract of 23,660 square meters in Guadalupe, Makati, was sold by the Provincia de Santissimo Nombre de Jesus to the Roman Ca tholic Archbishop of Manila for P170.000; A property with a lot of 600 square meters at Zurbaran, corner O’Donnell Street, Sta. Cruz, was sold by the FEATI Institute of Tech nology to Rogerio Gonzales for P100.000; and A parcel of 6,554.49 square meters at Cristobal Street, Paco, was sold by Florencio Reyes to Domingo Yu Chu for P90.000. REAL ESTATE mortgages registered in the Greater Manila area during the month of July, numbered 396, with a total value of P6,696,648, as compared with 409, with a total value of Pl 1,800,888, registered during the month of June. 264 Of the July total, 135, with a total value of P3.233,375, represented deals within Manila proper, and 261, with a total value of P3,463,273, were deals within the cities of Quezon, and Pasay, and in the suburban towns mentioned above. REAL ESTATE SALES (January to July, 1951) January.. February March.. . April. . . . May........ June........ July......... Manila Quezon City Pasay City Suburbs Total >4,466,475 3,549,050' 4,562,104 5,272,052 2,586,055 2,793,341 2,839,423 Pl,267,690 3,775,341 1,698,970 1,178,036 1,394,514 1,435,895 1,066,942 P743.346 709,598 645,878 487.954 819,779 578.954 497,387 Pl,453,264 1,411,773 1,814,525 1,738,654 1,505,885 1,793,395 1,697,312 P7,939,775 8,445,762 8,721,477 8,676,696 6,306,233 6,601,585 6,101,064 The Import Control Office has temporarily authorized the release of all personal effects, including automobiles and household effects, coming into the Philippines from the United States on the IC-7 form. The Office no longer requires the import license that has been necessary in the past. We are of the belief that this is only temporary, but in any event it certainly simplifies clearance at this time. Yours truly is going fishing for several months and Shagg Schedler has returned from the United States and has resumed control in our office. It will be his pleasant duty to keep all interested parties advised of waterfront activities as we see them from Luzon Brokerage Company. REAL ESTATE MORTGAGES (From January to July, 1951) January.. February March... April.... May........ June........ July......... P2,105,600 5,636,640 3,817,877 3,140,154 3,753,891 4,215,944 3,233,375 P 490,457 1,106,948 1,373,880 902,932 1,150,614 5,184,350 1,188,026 P272.300 869,100 245,760 188.750 372,032 869,144 351.750 Pl,051,546 1,722,790 1,970,627 1,057,926 1,231,810 1,531,450 1,925,497 P3,919,903 8,334,848 7,408,114 5,289,762 6,508,347 11,800,888 6,696,648 Building Construction By Juan J. Carlos President, United Construction Co., Inc. A total of 503 building permits with an approximate value of P5,152,480 was issued by the City Engi neer’s Office during the month of June, in comparison with P3,776,630 for the same month last year, P4,809,250 in 1949, and P10,217,840 in 1948. Several big projects which were started during the month of June account for the unusual increase of the construction volume at the beginning of the rainy season. A five-story reinforced concrete edifice owned by Salustina Dee will rise in the lot formerly occupied by the La Insular Cigar Factory on Plaza Binondo. The construction of two textile markets, one on Herbosa Street, Tondo, and the other on Florentino Torres Street, Sta. Cruz, owned by Carmen de Ongsiako and William Li Yao, respectively, and costing about Pl,000,000, have been started. Along Reina Regente Street, work on a reinforced-concrete warehouse, belonging to Gonzalo Gow Hok, has begun. With the approval of the plans for the proposed Vete rans Hospital by the Washington Office, local builders are preparing to bid for this big project, which it is estimated will cost about P30,000,000, by forming syndicates. Prices of building materials continued on the down ward trend. Essential items which were almost impos sible to find in the local market two months ago are now being sold below their landed costs. It may be expected that a further decrease in prices will be seen as more ship ments arrive. Ocean Shipping and Exports By B. B. Tunold Secretary-Mana ger Associated Steamship Lines TOTAL exports for the first half of 1951 amounted to 2,022,947 tons, as against 1,180,859 tons for the first half' of 1950, or almost 100% more this year than last year. Commodities which have registered sharp increases over last year’s figures for the first 6 month, are: logs from 15,354,188 to 86,020,654 board feet; lumber from 15,354,487 to 30,384,313 board feet; molasses from 29,131 to 78,955 tons, and iron ore from 175,701 to 404,556 tons. Total exports for the first 6 months of 1951, as com pared with the first 6 months of 1950, were as follows: Port of Manila By R. L. Moore Vice-President, Luzon Brokerage Company ESGUERRA & Company was awarded the in-transit bond storage contract, as was predicted in this column last month. The Company’s rate has been brought down from P0.80 a ton per day to P0.25 a ton per day for the first three days and thereafter P0.50 per ton. The ECA fertilizer is presently stored across the street in the Pier 7 sheds. Delgado Brothers are in the course of bagging and marking it. After much to-do, the landedcost figures were brought down considerably and the issue has just about become history on the waterfront. Commodity 1951 1950 Alcohol..................................... 574 tons 162 tons Beer............................................ 825 ” 161 Buntal fiber.......................... 23 ” 93 Cigars and cigarettes......... 63 ” 47 Coconut, desiccated............. 35,067 ” 57,191 Coconut oil............................. 34,002 ” 22,479 Concentrate, copper............. 25,518 ” 15,393 Concentrates, gold............... 2,845 ” 2,586 Copra........................................ 346,953 ” 230,084 Copra cake and meal......... 29,920 ” 26,904 Embroideries.......................... 1,498 ” 967 Empty drums, cylinders... 2,773 ” 2,523 Fish, salted............................. 83 ” 74 Food, canned........................ 11 ” 13 Fruits, fresh............................ 1,207 ” 789 Furniture, rattan.................. 4,622 ” 4,482 Glycerine................................. 884 ” 871 Gums, copal......................... 554 ” 351 Gums, elemi........................... 40 ” 27 Hemp........................................ 560,698 Bales 343,941 Bales Hemp, knotted...................... 171 tons 101 tons Household goods and per sonal effects....................... 2,396 ” 2,627 Junk, metal............................ 31,742 ” 11,661 Kapok....................................... 100 ” 139 Logs........................................... 86,020,654 Bdft. 15,354,188 Bdft. Lumber..................................... 30,384,313 ” 16,411,487 Molasses................................... 78,955 tons 29,131 tons Plywood and plywood pro ducts..................................... 504,030 Sq. Ft. 265,114 Sq. Ft Ores, chrome......................... 123,280 tons 108,908 tons Ores, lead................................ 159 " 387 Ores, iron................................ 404,556 ” 175,701 Ores, manganese................... 15,716 ” 18,083 Pineapples, canned............... 39,738 ” 27,531 Rattan, palasan.................... 2,313 ” 849 Rope.......................................... 3,141 ” 1,404 Rubber..................................... 562 ” 1,258 Shell, shell waste.................. 325 ” 190 Shell, buttons........................ 26 ” 24 Skin, hides.............................. 1,015 ” 519 Soap........................................... 28 ” 31 Sugar Cent./Raw................. 495,728 ’’ 304,806 Tobacco leaf........................... 3,834 ” 1,035 Vegetable oil.......................... 124 ” 284 Transit cargo........................ 6,176 ” 2,677 Merchandise, general.......... 12,501 ” 18,715 265 Mining By Nestorio N. Lim Secretary, Chamber of Mines of the Philippines THE Philippine mining industry had the best year in 1950 with a total production valued at P81,370,291, broken down as follows: Gold............................... 333,991 oz... . Value P33.399.100 Silver.................................................. 216,034 oz... . ” 309,984 Iron Ore........................................... 599,095 M.T... ” 7,633,494 Chromite (Met............................... 41,846 M.T... ” 1,474,813 (Ref............................... 208,665 M.T... ” 4,173,100 Lead Metal...................................... 879 M.T... ” 497,580 Manganese........................................ 29,867 M.T... ” 1,161,463 Copper (Metal).............................. 10,384 M.T... ” 8,254,164 Non-Metallics................................. 24,466,593 Total..................................... P81.370.291 The production figures for the first 5 months of 1951 showed a relative increase over corresponding figures in 1950, and the mining companies hope to continue better production the rest of the year. The 1950 production was favored by the high price of gold in the free market within the Philippines which ranged from Pl 10 to P145 per ounce for 75% of the mines’ pro duction; with 25% turned over to the Central Bank at P70 per ounce, the average price was Pl 12 per ounce. The base metals continued to be in demand with much better prices than the year before. Cement, — in the manufacture of which limestone, shale, gypsum, and coal are utilized, constituted almost 50% of the value of the non-metallics. Rock asphalt, a product of the Manila Rock Asphalt Company, whose mine is at Villaba, Leyte, accounted for a production of 52,817 tons valued at Pl,056,340. Sand, gravel, salt, lime, and other non-metallics totalled P8,227,472. old was produced from rehabilitated pre-war mines ^destroyed during the war. The Baguio District now has four gold mines in production: the Atok-Big Wedge Mining Co., Inc., Lepanto Consolidated Mining Co., Balatoc Mining Co. and Benguet Consolidated Mining Co!, all of which paid dividends in 1950. Two other gold mines in the Baguio district which are expected to produce shortly are the Itogon' Mining Co. and the Baguio Gold Mining Co. Both companies have almost fully rehabilitated their mines and are now installing power plants and mills with a 300- and a 400-ton capacity, respectively. In the Paracale district, Coco Grove, San Mauricio, and United Paracale are starting to reopen their mines. In the Surigao district, only the East Mindanao Min ing Co., one of the pre-war producers, has not been reha bilitated. All other mines, such as the Mindanao Mother Lode Mines, Inc., Surigao Consolidated Mining Co., Inc., Surigao Placer Syndicate, Tambis Gold Dredging Co., Inc., and Nor-Min Venture are now gold-producers. Two new mines were started in the Surigao district in 1950; one is a copper mine at Lanuza and the other is the lode mine of the Tambis Gold Dredging Co. A small rich silver deposit is being prospected at Linguid, but so far no production has been reported. In general, throughout the Philippines, no new gold mines have been started. Several prospects have been reported under exploration, but none has gone into actual development. Venture capital is timid about going into such developments because of the unsettled peace and order situation. This, together with the unstable local free-market in gold, additional burdens in the form of increased taxes and higher wages, with the official price of gold remaining the same, have proved deterrents to the opening of new mines. The ore-reserve position of the producing gold mines as of January 1, 1951, is much better than the year before. With two more gold mines about to go into production, the gold mines will certainly have bigger production in 1951. 'qpHE Lepanto Consolidated Mining Co. is the biggest A copper producer in the Far East today. The mine, located in Mankayan, Lepanto, Mountain Province, has doubled its pre-war capacity and is now treating 1,000 tons of ore a day. The mine with its present mill capacity is assured of over 6 years of life on the basis of its present ore-reserve. Another pre-war copper producer which will soon come into the production is the Hixbar Mining Co. The mine is on Rapu-Rapu Island, southeast of Albay province. Copper concentrate is produced as a by-product by the Mindanao Mother Lode Mines and the Surigao Con solidated Mining Co., Inc. There are several large, known copper deposits in the Philippines and one-man copper mines can be counted by • the hundreds. These copper prospects are located chiefly in Luzon. tron is next to copper in volume of production. The Athree iron mines, which were pre-war producers, are now shipping iron ore to Japan. These three mines carried on extensive diamond drilling during 1950 and found sub stantial ore reserves for future operation. The only market for iron ore is Japan. The price of ore is from $6.15 and up per dry metric ton f.o.b. Philippine ports. Several new iron deposits have been reported and could be a possible producers if the E.C.A. aid would make the building of necessary roads possible. /’’"’hromite is the third base-metal export from the Philip'“'pines and has a market in both the United States and Japan. Chromite is sold in two grades,—refractory and metallurgical. All the refractory ore is exported to the United States and only a few thousand tons of metallur gical ore go to Japan. The metallurgical grade is produced by the Acoje Mining Co. and the Luzon Stevedoring Co. Misamis Chromite was a producer in 1950. Refractory chromite is produced by the Benguet Consolidated Mining Co. from the property of Consolidated Mines at Masinloc, Zambales. The Company is now recovering the fines pro duced during the mining of lump ore. One heavy-media plant is in operation which produces 1,000 tons of concen trate a day. '-[-'here is a big demand for manganese both in the United States and in Japan. Pre-war manganese mines now in production are the Luzon Stevedoring Co., Inc., Amal gamated Minerals, Inc., Fernandez Hermanos, and Compania Mineral de Filipinas. New producers are the General Base Metals, Inc., the Philippines Base Metal Mines, Inc., and several other new companies which have been pro ducing only intermittently. Big mining operations are being carried out on the islands of Busuanga, Palawan, and on Guindulman and Anda, Bohol. Reported good deposits are found in Baybay, Leyte, Samar, Surigao, and on the mainland of Palawan. Philippine manganese occurs in lenses, bedded de posits, and residual concentration. The manganese in lenses is generally broken up or folded and many times faulted. This type of ore is high-grade, from 48% to 52% Mn. The bedded deposits are seldom pure manganese ore and are mixed with boulders or conglomerate. The man ganese may constitute only from 10% to 50% of the rock mass. The ore, when beneficiated, may run from 26% to 45% Mn. Sometimes, the lumps are of a high ore. The residual type of ore is mostly nodular in character. It is generally mixed with clay but clean ore may occur. 266 Philippine deposits are generally small, but big de posits have been explored. Manganese deposits are found on almost all the islands of the Philippines, both near the shore-lines and atop high mountain ranges, like those on Mt. Data in the Mountain Province and those in the Cordillera Mountains between Nueva Ecija and Quezon. Deposits of small tonnage, from less than 50 to as much as 10,000 tons, have been mined. Lower-grade manganese, from 10% to 30% Mn, is known to occur in big deposits. '-pHE Philippines'is as rich a mineral country as any coun-*■ try of its size in the world. What little mining has been done has been just a scratching of the ground. Only the high-grade surface deposits near the coast lines have been explored and mined, while inland deposits, far from the ports, have been neglected. Big unexplored deposits of gold, silver, copper, zinc, lead, iron, chromite, manganese, and coal are known today. Finds of other minerals, like molybdenum, stebnite, platinum, and nickel are not unheard of. Venture capital is needed to develop the mining in dustry. The risks involved are manifold, to be sure, but enterprise would pay big dividends. It is reported that foreign capital, mostly from America, wants to come in to develop the mining industry. Such mining development is essential to our whole economic development. If our own capital is insufficient or hesitant to take the risk, then let us offer inducements for foreign capital to come in,— reasonable taxation, proper labor legislation, provision for the withdrawal of matured venture capital, unrestricted distribution of dividends to foreign inventors, and above all, protection for life and property which is especially necessary in isolated interior mining places. Lumber By Luis J. Rezes Philippine Representative, Penrod, Jurden & Clark Co. PHILIPPINE GOLD PRODUCTION June, 1951 Gold Mines Production Atok-Big Wedge Mining Com pany ................................................... Gold Silver Tonnage Milled Balatoc Mining Company.............. Gold Silver T. M. Benguet Consolidated Mining. Company.......................................... Gold Silver T. M. Lepanto Consolidated Mining Company.......................................... Gold T. M. 3,488 oz. 1,899 ” 12,913 7,925 ” 5,330 ” 36,940 7,897 ” 5,2?5 ’’ 35,380 Mindanao Mother Lode Mines, Inc....................................................... Surigao Consolidated Mining Com pany ................................................... Surigao Placer Syndicate................ Nor-Min Venture............................... 3,724 ” 28,987 Gold Silver T. M. 4,262 ” 4,387 ” 9,600 Gold 3,450 ’ Silver 3,175 ’ T. M. 9,427 Gold 121 ' Yardage 40,000 ciu. yd. Gold 222 o Silver 5 ’ Yardage 25,500 ciii. yd. BASE METAL PRODUCTION Consolidated Mines...................................... Lepanto Consolidated Mining Co.......... Mindanao Mother Lode Mines, Inc........ Philippine Iron Mines, Inc......................... Samar Mining Company............................. Marinduque Iron Mines, Inc..................... Acoje Mining Company.............................. Luzon Stevedoring Company.................... Surigao Consolidated Mining Co............. Luzon Stevedoring Company.................... June, 1951 Metric tons Ref. Chromite Metallic Copper Iron Ore Metallic Chromite Metallic Lead Manganese Ore 25,750 963 21 61,023 40,207 3,490 1,750 1,000 24 1,900 •Production figures from the Bureau of Mines AS in the month of May, Japan led all other countries in the volume of logs taken, while the United States took the most sawn lumber, from the Philippines. An interesting feature of our lumber export is the fact that South Africa imported over 600,000 board feet of our timber, although African mahogany competes with Philippine mahogany in the United States market. It appears that the lumber industry in equatorial Africa, where most of African mahogany come from, is not as well developed as the lumber industry in the Philippines. South Africa even before the war imported fair quantities of Philippine mahogany from us. The United States Army in Okinawa took 1,119,305 board feet of sawn lumber and this had a normalizing effect on prices in the Philippine markets. It slowed down the closure of small and medium-sized mills which at this time of the year nearly always close down because of too low prices. The amount of logs shipped to Japan during the month ’ of June was still considerable, although less by 4,000,000 board feet than in May. Late reports are to the effect that during the month of July exports to Japan will be smaller because of an oversupply of low-quality logs. It is also to be noted that the shipment of lumber to America was only about half that of the previous month. Future shipment to Japan, Korea, and Okinawa will depend upon the outcome of the cease-fire conference now being held; no doubt peace in Korea would be followed by a heavy demand for sawn lumber to be used for reconstruc tion. A similar increase in the export of logs could be expected. A report on lumber and logs exported during the month of June as released by the Bureau of Forestry, fol lows: Shipper Agusan Timber Corporation.. Anakan Lumber Company, Inc............................................. Basilan Lumber Company, Inc............................................. Boix, Francisco........................ Bislig Bay Lumber Co., Inc.. Bueno, Valeriano C................ Cagayan Red Lumber Co. Inc............................................. Cuerva 8c Schnabel................. Dahican Lumber Co., Inc.. . . East Asiatic Company, Ltd. . Eustaquio, Arturo................... Frieder, Robert........................ Getz Bros. 6c Company........ Gulf Lumber Company, Inc.. Hercules Lumber Co., Inc.. . . Iligan Lumber Co., Inc........ Insular Lumber Company... Kiwalan Lumber Co., Inc.. . . Lacson, M. R........................... Luna, Cipriano 6c Company.. Manalac Enterprises............... Marsman Development Com pany ......................................... Martha Lumber Mill. Misamis Lumber Co., Inc.. .. Pan Asiatic Commercial Co... Pata Mills................................... Philippine Merchant Corp... . Destination Lumber Bd. Ft. Logs Bd. Ft. . Japan 1,549,981 U.S.A. 553,248 Japan 1,240,948 U.S.A. 952,481 375,401 S. Africa 23,118 Hong Kong 60,611 Japan 281,869 Japan 1,151,912 . Canada 226,956 Okinawa 307,537 Guam 6,305 Okinawa 311,768 Israel 7,196 Japan 659,914 Japan 544,756 U.S.A. 26,149 U.S.A. 1,111,020 Japan 999,895 Japan 499,970 U.S.A. 981,641 Canada 57,225 Belgium 62,213 S. Africa 379,724 Japan 800,000 Japan 950,009 Japan 1,659,730 Japan 1,090,000 U.S.A. 195,687 Japan 500,026 U.S.A. 200,216 Japan 300,000 S. Africa 200,064 Japan 848,210 Japan 552,002 Okinawa 500,000 Japan 250,088 267 268 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 Reynaldo Lumber Co., Inc.. . Japan Sta. Clara Lumber Company. japan Surigao Timber Company,. U.S.A. Inc............................................. Japan Tirador, Jorge J...................... Japan Valderrama Lumber Manu facturing Co.......................... U.S.A. Villamin, Porferio G................. Japan Western Mindanao Lumber Co., Inc................................... Woodcraft Works, Ltd.......... Woodworks, Inc....................... Japan Japan Japan Hongkong 499,989 99,140 1,250,052 600,053 256,192 209,604 1,523,049 101,625 235,519 223,261 760,478 299,932 99,252 Copra and Coconut Oil By K. B. Day and D. C. Keller Philippine Refining Company, Inc. June 16—July 15 Totals............................................................... A resume of exports follows: 4,138,327 22,437,689 Japan................................................................... United States........................................................ Okinawa.................................................................. South Africa.......................................................... Hongkong............................................................... Canada.................................................................... Guam....................................................................... Israel........................................................................ Belgium................................................................... Lumber Bd. Ft. 2,330,574 1,119,305 402,842 159,863 57,225 6,305 62,213 Logs Bd. Ft. 18,231,195 3,772,278 200,064 226,956 7,196 Total................................................................ 4,138,327 22,437,689 Wholesale prices in the local markets remain the same as in the previous month, namely P180 to P185 for white lauan and apitong, P200 to P205 for tangile. These prices are P20 to P25 higher than normal at this time of the year. This is due to large purchases made by the United States Army for use in Okinawa and Japan. From the fact that new contracts have been signed between the United States and Philippine producers for delivery during the next few months, we may expect prices to remain firm during August and September. THE period under review has seen further declines in prices'for both copra and coconut oil in all markets abroad, but as the period closes, there is a slight indication that American prices may firm up a little, fol lowing sellers’ resistance to bids which have been actually lower than pre-Korean levels. Opposed to this, however, we have reports of huge cotton and soya crops in America that must naturally influence most American markets and in turn have an adverse effect on European prices. In Europe the market continued to fall in line with America until rumors of a further “Ausschreibung” for Germany caused sellers in the sterling area to withdraw, and the market steadied temporarily. In spite of falling prices and the general feeling that the market has just about reached “bottom”, there has . been little demand for copra or coconut oil and we have not heard of recent really substantial business. Copra prices on the Pacific Coast opened at $175 per ton c.i.f., but had fallen by July 15 to $157.50 in the face of a determined and prolonged buying resistance. A paral lel decline was observed in Europe where prices fell from $220 per ton c.i.f. to $202 with the same lack of buying interest. In Manila the local market fought a losing bat tle with world prices and dropped from P33 per 100 kilos to P27 on July 15, when it became apparent that suppliers were not very interested at anything below this level. During this same period coconut oil prices fell from 13-1/4 cents per lb. f.o.b. Pacific Coast, at the opening, to 11-3/4 cents per lb. f.o.b., at the close, and only small re sales of tank-cars were reported at even these low prices. ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS 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 I? Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 August, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 269 European markets reported a drop of $40 per ton, i.e., from $330 per ton c.i.f. on June 16 to $290 per ton on July 15; only a small volume of business was reported during the period and was not, as is usually the case, due to a dollarshortage, because the soft currency areas of Ceylon, In donesia, and Malaya were similarly neglected during the same period. The copra meal market continued to rise slightly, but steadily, and helped to enliven what was otherwise a very dull and inactive period. A strong demand from the Pa cific Coast resulted in prices rising from $64 per short ton c. and f. on June 16 to $67 per short ton at the close of the period. Substantial buying by Denmark, made possible by an E.C.A. dollar allocation, at around $80 per long ton c.i.f. Copenhagen, helped to keep trade brisk and lively and resulted in the Pacific Coast being somewhat neglected and Philippine demands unsatisfied. We think it likely, therefore, that t;his demand, which is presently being met, will continue to keep meal prices at a reasonable level. npHE recent dull trading period has resulted in a reversal of the shipping situation and space for both copra and coconut oil in bulk is now comparatively easy even to Europe. Commitments, effected some months ago, before the recent slump, and not shipped until June showed an in creased export tonnage for that month as follows: Copra Long Tons United States Pacific Coast........................................................................... 19,087 Atlantic Coast....................................................................... 1,000 Gulf Ports ............................................................................. 4,194 Europe............................................................................................... 20,482 Canada............................................................................................... 600 Japan.................................................................................................. 591 South Africa.................................................................................... 254 Venezuela.......................................................................................... 5,000 Algeria................................................................................................ 670 Total................................................................................. 51,878 Coconut oil Long Tons United States Atlantic..................................................................................... 1,523 Europe............................................................................................... 3,009 China.................................................................................................. 206 India................................................................................................... 421 South Africa.................................................................................... 876 Total................................................................................. 6,035 Copra cake and meal United States.................................................................................. 3,416 Europe............................................................................................... 900 Total................................................................................. 4,316 statistics for the first half year show an increase of ^almost exactly 50% in shipments as compared to the first half of 1950. Against 230,034 tons of copra shipped in 1950, the 1951 figures show 346,953; and oil exports in creased from 22,479 tons to 33,267. All this bears out our opinion that 1951 will prove an excellent copra year. ■p umors of Korean peace, the temporary recession in -^business in general and consumer demand in partic ular, as well as the prospects of another series of bumper crops in the United States, have all contributed to the vertical decline in fats and oils. While coconut oil has perhaps, suffered the most, tallow, cottonseed oil, and soya oil have also taken sharp drops. It is now questionable whether the adverse factors have not already been well discounted and whether long inventories are not less un wieldy. Certain it is that a reaction, if only temporary, is overdue, and surely needed by the Philippine economy. When the producer has to pay more for a bag of rice than he receives for 100 kilos of copra, his return is not too satis factory. Markets may eventually range lower, particularly if European support is withdrawn in favor of surpluses in Indonesia and Malaya. But American buying has been 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 270 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 far below average for several months now, and even though we are in the midst of a good copra season, we look for a breathing spell from the monotony of decline, and in all probability some moderate upward reactions. No spec tacular increases, however, seem likely, unless world con ditions change overnight, and acts of God or man upset normal reactions. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from June 15 to July 15. During this time most desiccated factories continued on reduced production. Sales in the United States continue low and the price is reported to have been lowered. Following are the shipping statistics for the month of June: Shippers Pounds Franklin Baker Company............................................................. 2,633,900 Blue Bar Coconut Company....................................................... 954,320* Peter Paul Philippine Corporation........................................... 2,590,000 Red V Coconut Products, Ltd................................................... 773,000 Sun Ripe Coconut Products, Inc.............................................. 489,750 Standard Coconut Corporation.................................................. 179,600 Cooperative Coconut Products, Inc......................................... 393,600 Tabacalera.......................................................................................... 0 Coconut Products (Phil.) Inc..................................................... 216,375 Total................. ’..................................................................... 8,230,545 *Note: Zamboanga factory production.......................................................... 333,100 lbs. Lusacan factory production................................................................ 621,220 Total Blue Bar production................................................................. 954,320 Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines THIS review covers the period from June 16 to July 15. During this time the weakness of the previous period ended and both Philippine provincial prices and terminal market prices remaining relatively unchanged. Declines of 1/4/ to 1/2/ per lb. in terminal markets during the middle of the period were not reflected in Philippine markets and appear likely to be nullified as the period closed with a firmer tone and upward tendencies. The main reason for this static condition was the reluctance of United States buyers to continue buying at a rate that would sustain present prices while awaiting the outcome of the Korean truce conference. Any decline that might have been the result of this hand-to-mouth buying in the United States, however, was prevented by continued demand in the Japan and London markets for non-Davao and the lower Davao grades. The demand for these grades in the United King dom and Europe continued brisk as the prevailing high price of African and Portuguese sisal and the earlier ship ment position of Philippine hemp established a value on Philippine hemp in excess of present prices. This demand did no more than prevent a further decline, however, as it is still restricted by the scarcity of dollar exchange through out Europe. These influences remain thin, nonetheless, and any movement, up or down from present prices, de pends on the final effect the outcome of the Kaesong con ferences will have on the worldwide rearmament program. June pressings at 82,815 bales were the lowest for 1951 and a continuation of the decline noted in May. Non-Davao balings were relatively unchanged with only a nominal TAKE YOUR CHOICE Cummins Diesel Engines are standard or optional power in all these leading makes of heavy-duty trucks. Check these truck manufac turers’specifications 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. CUMMINS DEPENDABLE DIESEL ENGINES Auloear Kcnworth Corbitt Mack Dart Oshkosh Diamond T I’eterbilt Euclid Keo Federal Sterling FWD Walter Hendrickson Ward LaFrance International White C. M. LOVSTED & CO., (MANILA) LTD. 101, 13lh St., Corner Boston, Port Area, Muiiilu—Tel. 3-32-10 Represented by Smith, Bell & Co., I.td. in Cebu — Iloilo — Bucolod—Duvuo - Legaspi August, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 271 decline. Davao balings at 43,752, a decline of almost 3,000 bales, provided the bulk of this month’s reduced balings. This decline may in part be caused by the normal seasonal lay-off during the working of other crops, but there is some evidence that indicates that it also reflects the effect of overstripping by small planters during January and February in order to take advantage of the extremely high prices ruling at that time. Total pressings for the first half of 1951 were 559,840 against 354,094 bales during the same period last year; an increase of 58%, a slight reduction over the percentage of increase maintained during the first five months of 1951. The following are the comparative figures for balings of the first half of 1947 through 1951: Total bales.............. 559,840 354,094 281,641 362,246 381,584 Balings 1951 — January-June inclusive 1950 1949 1948 1947 Davao........................ 254,895 166,038 112,701 116,744 187,923 Albay, Camarines and Sorsogon.. . . 151,245 89,343 63,449 112,069 119,514 Leyte and Samar.. 97,887 58,436 60,853 65,038 39,562 All other nonDavao.................... 55,813 40,277 44,638 68,395 34,585 Exports during June were 82,561 bales, which places them practically in balance with pressings for this month. As usual, the largest share, 58%, was exported to the United States. The following are the comparative figures for exports for the first half of 1947 through 1951: Total bale?.............. Exports—January-June inclusive 1951 1950 1949 1948 1947 United States and Canada.................. 330,913 157,669 100,092 166,279 271,057 Continental Europe 92,687 55,296 59,597 57,926 64,955 United Kingdom... 93,729 37,204 17,688 47,185 18,570 Japan......................... 69,913 50,724 75,777 83,175 1,600 South Africa........... 9,590 2,885 2,616 1,460 2,000 China......................... 2,145 7,960 7,673 5,988 1,006 India.......................... 3,442 3,830 2,181 490 4,850 Korea......................... — 3,100 — — — Australia and New Zealand............... 1,300 625 350 42 — All other countries. — — 80 2,853 710 603,719 319,293 266,054 365,398 364,748 Sugar By S. Jamieson Secretary-Treasurer Philippine Sugar Association THIS review covers the period from July 1 to July 31, inclusive. New York Market. As stated in our previous review, Korean “cease-fire” negotiations affected the sugar market adversely and caused a sharp break in prices for raws in both spot and futures. Cuban holders were hopeful that the market would' soon recover, believing that United States refiners had still to make heavy purchases of raws to cover fully their August and September requirements, and that, since the refiners’ main source of supply was Cuba, they had only to stand firm to get their price. Against this view, however, the fact emerged that the trade had built up substantial invisible refined inventories from the heavy buying in April/May/June. Dyer, a well-known New York sugar house, estimated that the trade and house holders were carrying 500,000 tons more invisible inven tories than normal, and, with the higher refined prices, the trade evidently decided to reduce its inventories to normal in the expectation that a possible “cease-fire” in Korea would lead to lower prices both in raws and refined, PACIFIC MERdllAIIISIVC C 0 R PII 11 1 T I m 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 272 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 thus enabling them, if necessary, to replenish their refined stocks cheaper later. This resulted in drastically reduced refiners’ deliveries during July compared with the preceding month as well as compared with the corresponding period last year, and for the first time this year the total deliveries were running behind last year, being 4,467,572 tons, raw value, as of July 21, compared with 4,676,571 tons in the similar period last year. These contending factors caused a somewhat irregular market during July. As there ap peared to be no urgent need or inducement for refiners to enter the market for large scale buying of raws, Cuban holders became more anxious to sell and the ultimate trend of prices was definitely downward. The market opened on July 2 with a sale of 2,000 tons Philippines for August arrival at 6.25/, and light offerings of other sugar at 6.30/ for which buyers’ ideas were 6.25/. Spot was 6.25/. On the 3rd there was a steadier market, sellers and buyers indicating 6.40/ and 6.30/, respectively, and spot advancing to 6.30/. By the 6th the market was firmer; a small lot of Porto Ricos for August arrival was sold at 6.40/, and there were light offerings for prompt delivery at 6.45/. Cubas for August shipment were offered at 6.75/, with possible buyers at 6.40/. Spot had advanced to 6.40/. On the 10th, 2,000 tons of Philippines for July/ August shipment were sold at 6.42/, and 4,500 tons of Cubas for July shipment at 6.43/. Spot rose to 6.42/. For the next few days the market was quiet but steady, and on the 13th spot reached 6.50/. Thereafter it went into a decline, which persisted until the end of the month. On the 16th some Cubas were sold at 6.45/, and spot had dropped to 6.45/. On the 19th, 12,000 tons of Philippines and Cubas for August arrival were sold at 6.40/. Cuban holders were anxious to sell more at this price, but buyers indicated only 6.35/. On the 18th buyers withdrew and spot fell to 6.30/. For the next week the market was weak. On the 26th, 1,033 tons Philippines afloat were sold at 6.10/, and 8,000 tons of Cubas and San Domingos at 6.05/. Spot fell to 6.05/. On the 30th there was a slight improve ment, spot advancing to 6.10/, but it did not last. On the 31st there was a sale of Porto Ricos for August arrival at 6.05/ and spot closed at 6.05/. We give below quotations on the New York Sugar Exchange for Contract No. 6 as of July 31, and, for com parison, the peak quotations during the month: Closing Peak quotations quotations September............................................. 5.58(5 6.01(5—July 12 November............................................. 5.59 6.00 — ” 12 March, 1952........................................ 5.48 5.54 — ’ 16 May......................................... ........... 5.48 5.52 — ” 16 World market Contract No. 4 quotations closed on July 31 as follows: September............................................. 6.22(5 January, 1952...................................... 5.85 March........................................................ 5.34 May........................................................ 5.34 July......................................................... 5.34 September............................................. 5.35 The world market spot price on July 31 was 6.25/, com pared with 6.95/ on June 29. Cuban sales in the world market included the following: July 6—40,000 tons (new crop) to British Ministry, February/March shipment, at from 5.40(5 to 5.50(5 f.a.s. Cuba July 12—15,000 tons (old crop) to British Ministry, August/September shipment, at 7.00(5 f.a.s. Cuba Local Market, (a) Domestic Sugar. The market was firm. Prices for the ordinary centrifugal grade remained practically unchanged, while those for 98° and 99° ad vanced about Pl.00 per picul. Bureau of Commerce quota tions as of July 26 were as follows: Centrifugal 97°—P15.75 to P15.80 per picul ” 98°— P17.20 to P17.30 ” ” Washed 99°—P18.50 to P18.60 ” ” to the Access PAMPANGA: CLARK FIELD NATIONAL CITY BANK offers quick access to world markets through 48 overseas 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. THE NATIONAL CITY BANK OF NEW YORK Jirat in World-Wide dSanking Branches in the Philippines MANILA Main Branch: Juan Luna Street Port Area Branch: 13th Street with CEBU: CEBU CITY August, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 273 (b) Export Sugar. Very little 1950/51 export sugar was available. The market opened with buyers at P14.15 per picul, ex warehouse, Victorias basis, and reached a peak of P 14.80 at the middle of the month. Thereafter it weakened in keeping with the downward trend of the New York market, and the closing price was P13.75. Small quantities of export sugar were purchased above the parity of the New York price for conversion into domestic to cover local refining losses in processing. There were buyers of new crop export sugar at P13.45, Victorias basis, for delivery up to January 31, 1952. The quantities contracted so far have been insignificant, sellers generally not being disposed to contract ahead at the price offered. General. Export of Philippine Sugar to Other Coun tries. The Philippine Government rescinded its recent decision to divert 40,000 tons of 1950/51 export sugar from the United States to Far Eastern countries. This found favor with the National Federation of Sugarcane Planters and the Philippine Sugar Association, both of which have consistently advocated a policy of first com pletely filling the United States quota of 952,000 short tons before exporting to other countries. It is understood that in the negotiations for a new World Sugar Agreement the Philippine Government will request a quota of 200,000 tons for export to countries other than the United States in anticipation of our sugar 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! MANILA ELECTRIC COMPANY 134 San Marcelino Manila 274 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 MUD aid IIIMI'IU III PIIIIIITIMJS Hemp Exporters Steamship Agents 207 Myers Building Port Area, Manila production exceeding the United States quota and domestic requirements in the not too distant future. Porto Rico. The 1951 crop is estimated at 1,225,000 short tons. Fertilizers. We are informed that the Sugar Producers Marketing Agency has concluded the purchase of sub stantial quantities of the various fertilizers for planters’ 1952-53 requirements. m CALENDAR & PRINTED SPECIALTIES no you want something Tobacco By Luis A. Pujalte Secretary-Treasurer Manila Tobacco Association, Inc. TYPHOON “Louise” chose to cross northern Luzon through the Cagayan Valley, leaving destruction and misery behind her. If the reports are correct that a major part of the corn planted has been destroyed, this would mean that the farmers, next crop-year, will have to plant more corn and rice to make up for the loss and that the acreage given to tobacco will be less. The tobacco crop has been harvested, but depending upon the extent of the total damage, speculators may resume purchasing wildly and prices may rise beyond expected levels. Of interest to all tobacco people is a United States report of June 18, which I received from Messrs. J. E. Bohannon Co., Inc., and am pleased to quote: “Within the past ten days general rains and showers have pre vailed through the entire states of Tennessee and Kentucky and it is now estimated that around 90% to 95% of the Burley has been trans planted with an average stand. In fact, early transplantings have been reset and it now appears that the entire alloted acreage will be planted. “The same weather conditions have prevailed in the One Sucker, Green River, and Dark Fired districts and these crops are practically transplanted in their entirety with an average stand. It is our under standing that the full allotment of acreage in all three of these types will be planted. As to Flue Cured, from all reports we get, all transplanting and resetting has been completed. The dry weather retarded the growth in some sections but there have been general rains in all belts within the past ten days and the crop is fully average in growth for this time of year. On the whole unless something unforeseen happens, the crop promises to be of good quality and the full alloted acreage has been planted, therefore, we should anticipate an increase in poundage over last year of from 10% to 14%.” Color work is our specialty. BUT we must have time. Arrange to send in your jobs early. Better still, let us talk them over NOW! CALL 3-24-70 FOR OUR REPRESENTATIVE Imports By S. ScHMELKES Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units: McCullough mmi mww PRINTING HEADQUARTERS SINCE 1899 (A DIVISION OF PHILIPPINE EDUCATION CO.) 1104 Castillejos, Quiapo, Manila Commodi ties June, 1951 June, 1950 Automotive (Total)............................................ 877,725 1,241,216 Automobiles....................................... ......... 195,087 51,493 Auto Accessories.............................. ......... 80 1,733 Auto Parts.................................................... 127,315 223,845 Bicycles............................................... ......... 132 1,161 Trucks................................................. ......... 34,489 — Truck Chassis................................... ......... 104,021 543,305 Truck Parts....................................... ......... 82,188 68,564 Building Materials (Total).............................. 3,533,462 17,811,719 Board, Fibre..................................... ......... 34,973 78,069 rpmpnt ........... 121,589 11,482,379 Glass, Window................................. ......... 525,390 271,311 Gypsum.............................................. ......... 80,739 1,214,871 Chemicals (Total).................................... ......... 9,483,675 5,031,869 Caustic Soda..................................... ......... 395,403 835,665 Explosives (Total).............................................. 133,984 113,394 August, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 275 Firearms (Total).................................................. 9,063 Ammunition.................................................. 9,060 Hardware (Total)................................................ 9,343,391 Household (Total).............................................. 620,213 Machinery (Total).............................................. 3,130,605 Metals (Total)..................................................... 11,048,864 Petroleum Products (Total)............................ 96,397,632 Radios (Total)...................................................... 14,082 Rubber Goods (Total)...................................... 1,361,095 Beverages, Misc. Alcoholic.............................. 7,390 Foodstuffs, (Total Kilos)................................. 44,098,044 Foodstuffs, Fresh (Total)................................ 101,569 Apples............................................................. 1,305 Oranges........................................................... 14,569 Onions............................................................. 37,079 Potatoes......................................................... 26,905 Foodstuffs, Dry Packaged (Total)............... 19,995 Foodstuffs, Canned (Total)............................. 1,041,131 Sardines.......................................................... 27,225 Milk, Evaporated....................................... 558,807 Milk, Condensed......................................... 63,576 Foodstuffs, Bulk (Total).................................. 586,042 Rice................................................................. 12,501 Wheat Flour................................................ 493,036 Foodstuffs, Preserved (Total)........................ 83 Bottling, Misc. (Total)..................................... 1,022,876 Cleansing and Laundry (Total).................. 51,016 Entertainment Equipment (Total)............... 2,300 Livestock-bulbs-seeds (Total)....................... 1,776 Medical (Total)................................................... 496,630 Musical (Total).................................................... 13,775 Office Equipment (Total)................................. 14,113 Office Supplies (Total)............................. 36,043 Paper (Total)............................................ 7,062,209 Photographic (Total)................................. 30,492 Raw Materials (Total) ................................... 1,477,818 Sporting Goods (Total).................................... 27,080 Stationery (Total)............................................... 351,601 Tobacco (Total)................................................... 458,832 Chucheria (Total)......................................... 55,784 Clothing and Apparel (Total)........................ 267,249 Cosmetics (Total)................................................ 50,843 Fabrics (Total)..................................................... 1,193,447 Jewelry (Total).................................................... 156 Leather (Total).................................................... 72,421 Textiles (Total).................................................... 998,100 Twine (Total)....................................................... 136,995 Toys (Total)......................................................... 16,003 General Merchandise (Total)......................... 457,209 Non-Commercial Shipments (Total)........... 104,235 Advertising Materials, Etc. (Total)............. 71,908 6,608,002 788,391 2,857,044 9,114,618 91,785,978 , 25,787 411,013 8,993 32,966,328 107,136 3,260 20,353 37,073 13,880 22,841 472,572 173,925 198,101 23,000 706,791 673,113 249 1,524,472 674,078 17,117 608 666,768 39,757 107,474 84,164 7,933,463 63,238 753,630 14,684 709,338 6,314,861 ★ Luzon smiimiu COMPANY, 1110. Manila ★ 99,089 175,269 24,864 1,380,903 148,963 1,590,018 23,847 23,698 611,323 45,777 98,097 ^oppeH DEPENDABLE Food Products By G. L. MaGee Trading Division Marsman &1 Company, Inc. AS a result of a glutted market on certain imported food products such as evaporated milk, canned meats, canned fish, and a few other commodities, including coffee beans, local prices on these commodities have drop ped alarmingly to a point where many importers and deal ers are sustaining substantial losses. As soon as the de-control order was announced for these foodstuffs, there was a rush for PRISCO licenses to permit importation. Heavy commitments were entered into by established importers, as well as many new firms, some of whom are now in financial difficulties since they are unable to dispose of the merchandise promptly on arrival at prices to permit reasonable profits. At present indications, it will be several months before stocks now in distributors’ and wholesalers’ warehouses have been reduced to normal. Evaporated milk is one of the commodities which is in particularly heavy supply. Importations during the preceding three months have amounted to well over 1,000,000 cases, with the result that market needs are covered /N 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. —KOPPEL—. (PHILIPPINES) I BOSTON & 23RD STREETS | N C ■ PORT AREA ’ TEL> S’37'53 ! Branches: | ^Elacolod • Iloilo • Cebu • Davao • Cotabato • Zamboanga 276 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 A Move In The Right Direction— with lamps GENERAL ELECTRIC (P.I.), INC. ' FORT AREA MANILA A Product of General Electric Co., U.S.A. MONROE ADDING - CALCULATORS Model L 200 X: Key board—10 columns, upper dials—10 pla ces, lower dials—20 Simplified constructions make Monroe machines operate. Like magic, they're quiet and fast i movement. And, what more, non-glare in il color makes Monroe That1! Monroes most business offices. The Store of Quality 600 Dasmarifias • Phone: 3-88-71 for at least 4 months even if no further shipments arrived. The larger part of milk importations covered by the PRISCO second-quarter licenses have apparently arrived in the market, however, and it is unlikely that importers will be eager to bring in further stocks for some time to come. Losses realized on some of the lesser known brands of milk have been reported amounting to as much as ?5 per case, while even the better known and more salable brands are selling at greatly reduced prices. During July there were also large shipments of tinned meats received in the market and although dealers’ shelves have been bare of these products for many months, they have now rapidly filled up so that the saturation point had been reached as far as retail demand is concerned, with substantial reserves in the hands of wholesalers. The canned-fish market is in much the same condition although some packs are reported in short supply and will remain so until the beginning of the new packing season, now but a few weeks off. Provincial retailers are all re ported to be well stocked with canned fish as well as other food products now in over-supply, with consumer demand showing the usual lag for this season of the year. As of August 1, no announcement has been made with •^•reference to the manner of handling the flour business under IWA, contracts for which are now possible for ship ments beginning August 1. The recent decision of the Supreme Court in the flour importers’ case, upholding the right to old importers to a share in. the IWA quota of flour importations, will undoubtedly be taken into consid eration in connection with the next allotments. Flour stocks at present in the market are undoubtedly sufficient .for at least 6 or 8 weeks, since these comprise not only the direct IWA shipments to PRISCO which arrived in June and July, but also fairly large quantities of flour bought at prices outside IWA by private importers who acted under the opportunity given them by the de-control order. As the result of a new selling arrangement entered into by PRISCO with a group of Filipino businessmen, large quantities of PRISCO flour stocks were moved from PRISCO warehouses into the hands of flour dealers and wholesalers, so that flour has now become available to the bakery trade without the necessity of direct buying from PRISCO. Flour ceiling-prices have also been removed so that various brands are now being offered at prices in accordance with supply and demand. At present, flour dealers are making no more than normal profits and in some instances, on some brands, slight losses are being taken in an effort to move out over-supplies. It seems important, however, that licenses be made available soon to importers, either through the channel of PRISCO or the new Import Control Commission, to insure the market’s flour requirements. During the previous month, there were large shipments of Japanese onions received in the market, amounting to around 40,000 crates. Several thousand bags of Japan ese potatoes were also received. Rice importations for July amounted to 33,000 bags of Bangkok rice consigned to PRISCO and another smaller lot of Saigon for a private importer. Fairly adequate quantities of California fresh fruits arrived during the month, mostly oranges, and in addi tion, smaller lots of grapefruit and lemons. The market continues in short supply of certain food stuffs classed as luxuries and semi-luxuries, such as canned fruits, vegetables, cheese, fresh butter, and other com modities. Some of this shortage is being cared for by PRIS CO direct importations, including canned soups, spices, dairy products, etc., supplies of which recently arrived, and allotments of which have been made largely to leading Manila retail grocers. Further supplies of this character are arriving later, some part of which will be assigned for provincial dealers. August, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 277 Textiles By W. V. Saussotte General Manager Neuss, Hesslein Co., Inc. THE new Import Control Commission still has not published the final form of its “Rules and Regula tions of the Import Control Commission, Imple menting Republic Act No. 650. As a consequence there has been no filing of applications for import licenses for cotton textiles since June 12, when PRISCO stopped re ceiving applications for decontrolled and controlled cottons for importers and textile items of any type intended as raw materials for essential dollar-producing and/or dollarsaving industries; on the other hand, applications for licenses from importers of rayon textiles and textile items other than cotton piece goods and pound goods, the issuance of which was not transferred to PRISCO but remained with the old Import Control Administration, have not been received since the middle of June. One of the effects of the foregoing is that the down- • ward price tendency noted during May, June, and July has stopped and local prices have remained steady at the levels they reached during mid-July. Another factor which has contributed to halt the recent price decline is that on July 2 the new Import Con trol Commission ordered suspension of the release qf all previously approved licenses which were listed in the news papers as having been approved by both the ICC and PRISCO but which were not called for on or before June 30. It has been reported that approximately 1,500 licenses for textiles, totalling about $17,000,000 in amount, were involved in this suspension. On August 1, however, the ICC authorized the release of approximately 700 of these previously approved licenses, in the amount of approxiimately $6,000,000. It is further reported that the purpose of tjie suspension of the release of these previously ap proved licenses was that the ICC felt that certain ones were approved which should not have been. Accordingly, the ICC reviewed all these licenses and latest reports are that a number of the already approved licenses will not be released. Some of these licenses covering such open-weave fabrics as Leno Shirtings, Marquisettes, and Dotted'Swiss which, even though coming within PRISCO’s Supplemen tary Rules and Regulations No. 6 of May 14 defining decontrolled cotton goods as any cotton goods in the piece with a thread count less than 142 threads per square inch and all constructions of cotton remnants not exceeding 10 yards in length, are now reported in the process of being cancelled. Additional previously approved licenses falling into the same category are some licenses also for decontrolled goods which have been disallowed because “prices are too high”, even though the President’s Decontrol Proclama tion of May 11 (changed on June 15 to Executive Order No. 446) does not impose any price limitation nor do any of the relevant PRISCO regulations which governed the issuance of textile licenses at the time. In view of the fact that Section 17 of Republic Act No. 650 specifies “All valid quotas and licenses regularly approved by the previous Import Conrol Administration, the Import Control Board, and the Price Stabilization Corporation before the effectivity of this Act shall be recognized and given full force and effect”, it is maintained by many who have been adversely affected that the can cellation of any previously approved licenses, or the inde finite suspension in their issuance having the effect of can cellation, is contrary to this Section 17 of the Act, which does not give the ICC discretionary power in connection COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. HEMP AND COPRA EXPORTERS STEAMSHIP AGENTS * 206 Myers Building Port Area, Manila, P. I. ¥ BRANCHES: Davao • Tacloban • Cebu • Tabaco SMITH-CORONA PORTABLE One glance at the new SMITH-CORONA. . . and you’re convinced that it’s the most beautiful and sturdy portable typewriter you’ve ever laid eyes on! Not just a “new model”. . . it’s a revolutionary all new typewriter. . . with a total of nineteen new features plus fifteen SMITH-CORONA “exclu sives”! Its smart, new Color-speed Keyboard is full standard office machine size. . . has rimless keys colored a restful non-glare green and “comfort shape” to cup your finger tips. ERLANGER & GALINGER, INC. 123 T. Pinpin, Manila • Magallanes St., Cebu City 278 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 FOR BETTER SERVICE—Call 3-29-05 ALLIED BROKERAGE ((HiPORATHH Marsman Building Port Area Documents may be delivered to our represen tative in the branch offices of MACKAY RADIO TELEGRAPH COMPANY, Plazg. Moraga and Trade Commerce Building. Individual attention and competent supervision given to your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING Aboard America’} Post-War Liners S.S. PRESIDENT WILSON • S.S. PRESIDENT CLEVELAND with previously approved licenses but makes its course of action solely ministerial. All previously approved licenses for controlled cot tons have been released. Due to the stoppage in the issuance of licenses for textiles and the fact that the ICC has not announced to the public when it will begin to receive applications for new licenses, it is possible that in the near future there will again develop a situation which could lead to the resur rection of the old license-peddlers who thrived during 1950 and the early part of 1951. If the new ICC goes through with its rumored plan not to issue new li censes for decontrolled textiles until next year, September or October could well present the proper type of climate for the re-animation of the old ten-percenters and license peddlers. Prices in the United States began to decline during the ■^middle of June and on July 8 the Government issued its cotton acreage report showing that approximately 29,000,000 acres had been sown, the report accelerating the decline which had already started. This, however, did not affect all types on cotton goods but to some extent affected certain rayon goods which declined in sympathy. Contributing also to the price decline in the United States, have been the cease-fire negotiations in Korea. Prices in the United States are at present close to their lowest probable levels. On August 8 the United States Government will announce the cotton crop, which the industry presently believes will amount to about 17,000,000 bales. If the production report reveals a larger quantity, raw cotton and finished goods prices may de cline a little more, but the decline will be limited because the price of raw cotton will then approach the Government loan level which will protect it from any further drastic decline. Some rayons and cottons are actually below re placement value in the New York market, so that if the production report of August 8 reveals a quantity less than 17,000,000 bales, there should be a slight increase in price in respect of those items which are now being marketed below their replacement values. txuring July, arrivals from the United States totalled •L'10,842 packages, including 4,483 packages of cotton piece goods and 807 packages of rayon piece goods. In cluded also were 1,385 packages of cotton seine twine and wrapping twine and 619 packages of sewing thread. Arrivals of all textiles, including made-up goods from other coun tries, consisted of 1,389 packages from Japan, almost entirely goods other than cotton fabrics for wearing apparel, 164 packages from China, and 603 packages from Europe. July’s total arrivals from all sources amounted to 13,008 packages, which was approximately the same as arrivals for May of this year and compares with the annual monthly average arrivals of 22,600 packages for 1949 and 12,600 packages for 1950. San Francisco MARY BACHRACH BLDG., Tel. 3-32-81 AMERICAN PRESIDENT LINES 25th Street, Fort Area Legislation, Executive Orders, and Court Decisions By Robert J and a Ross, Selph, Carrascoso & Janda DURING the past month the Supreme Court promul gated a number of decisions of interest to the business community. In the case of Isaac vs. Mendoza, G. R. No. L-2820, the Court held that an attorney who refused to receive from the post office copy of a pleading sent to him by registered mail would be deemed to have notice of the pleading to the same extent as though he had actually received it. The Court refused to set aside a August, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 279 default judgment on the ground that the client should not be prejudiced by an attorney’s neglect but indicated an action would lie against the attorney for damages. In the case of American Far Eastern School of Avia tion vs. Ayala & Company, G. R. No. L-2376, the Supreme Court again considered the effect to be given to a lessee dispossessed by the Japanese military authorities. The Court held that the dispossession and the turning over of the properties to a German national did not consti tute a breach of the lessor’s warranty of quiet posses sion since the dispossession amounted to a trespass by the Japanese, and the Court consequently held that the dispossession did not operate to extend the period of the lease. In the case of De Tangco vs. Court of Appeals, G. R. No. L-3754, the Court had before it a contract for the construction of a dwelling. The contractor subcontracted the work and ordered certain extras which were actually incorporated into the house. The Court held that the owner, not having ordered this work or having knowledge that it was incorporated in the building with the under standing that it would be paid for, was not liable to the’ subcontractor. In the case of Villasor vs. Camon, et al., G. R. No. 8551, the Court held that a quitclaim deed on a piece of registered real estate which was duly filed with the Re gister of Deeds and entered by him in his entry or diary book but which was not noted on the certificate of title, did not operate to transfer title to the property nor to give notice to a subsequent purchaser in good faith. The Court distinguished the effect of entry in the diary of vo luntary instruments such as deeds from the entry of invo luntary documents such as attachments, the Court holding that while entry of the first type of documents was inef fective, yet entry of the second would protect the proper parties even though not registered on the certificate of title. In the case of Manufacturers Life Insurance Co. vs. Meer, plaintiff was endeavoring to recover a tax on pre miums collected by the Bureau of Internal Revenue under the automatic loan provisions of a policy which were given effect during the Japanese occupation by the home office of the company. The company argued that application of the loan clause was not in effect payment of a premium and that collection in any case was made in Canada and not in the Philippines and, consequently, was not subject to local taxes. The Supreme Court did not accept these arguments and held that the tax had been properly col lected. In the cases of Wise 8s Co., Inc. vs. PRISCO, G. R. No. L-4403 and Chinese Flour Importers Association vs. PRISCO, G. R. No. L-4465, the Supreme Court held that the acts of PRATRA (now PRISCO) in attempting to allocate flour quotas exclusively to new importers of Phil ippine nationality was contrary to the provisions of Re public Act No. 426, the Court holding that flour quotas should be allocated on the same basis as the Act provides with respect to quotas of other types of merchandise. The Supreme Court held that it was not the intent of the Im port Control Law to deprive foreign importers of all flpur quotas and stated that construction of the Act in this manner would result in the Act’s making an unconstitu tional delegation of authority to an administrative official since no proper standards were established to guide the PRATRA (later PRISCO) officials in their distribution of flour quotas. touring the month important new regulations have been ■^issued by the new Import Control Board (Adminis trative Order No. 159), by the Export Control Board (Ex ecutive Order No. 453), and by the Wage Administration Service (Rights and Obligations of Employers under the Minimum Wage Law). OTIS ELEVATOR COMPANY 142-13th Street Tel. 3-37-20 Port Area Myers Building Manila ELEVATORS • DUMBWAITERS • ESCALATORS ENGINEERING AND PLANNING We are always ready to help architects, engineers and building planners with the exacting job of applying vertical trans portation equipment to modern traffic needs. To save time and effort, consult us during the earliest planning stages. You can get the help of Otis engineers by contacting your Otis office. This service is free and without obligation. Bilim WITH J II’MIILT BLOCKS Your Answer to low cost housing Gives you: Fire Safety Lifelong Durability Low Upkeep Low Insurance Rates Weather Tightness Vermin Proofness * Sole Distributors NORTON & HARRISON COMPANY 814 ECHAGUE, MANILA Tel: 3-34-11 Tel: 3-34-12 280 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 For well-groomed hair The aristocrat of hair tonics Prepared by: BOIE WATSONAL LABORATORIES Philippine Safety Council By Frank S. Tenny Executive Director THE Council’s activities during the past month were almost equally divided between cooperation with government and public safety projects and develop ments of industrial safety services to members. Two notable developments in the latter field were those of an announcement of an extraordinary safety record accomplished by the Pepsi Cola Bottling Company, whose employees recently completed a six-months’ period of no lost-time accidents, and of a two-day safety program conducted at the Pangasinan Transportation Company’s terminal in Dagupan City. This program covered elements of driver training, fire protection, and accident prevention. Intensive traffic safety lectures continue for the BMC taxi drivers and Rural Transit Company bus drivers. Safety inspections of various operations of the San Miguel Brewery and the Manila Electric Company continue. Much progress has been made in accident-prevention work connected with the Arrastre operations of the Delgado Brothers. Specialized security programs are being suc cessfully conducted for the Ayala y Cia., Colgate Palmolive Philippines, and Luzon Brokerage Company. Monthly inspections continue at the Philippine Iron Mines opera tion in Camarines Norte and the Isaac Peral Bowling Alley in Manila. Considerable safety engineering work and employee safety committee activity is in progress at the Atlantic Gulf and Pacific Company plant. Thirty employees of PSC member-companies grad uated this month from a first-aid training course con ducted in cooperation with the Philippine National Red Cross. An advanced course of this nature will begin this week. The Council has obtained the cooperation of the Philippine Motor Association in planning for driver-safety lectures to independent groups of professional jeepney drivers. Both of these training activities are PSC projects conducted without cost. Activities of the Taxicab Inspection Service will soon broaden to include some twelve more Manila taxicab com panies, thus placing about 75% of local taxicabs under this form of safety inspection and control. The TIS will begin its third year of operation next month. Leaders in this field have been the pre-war taxicab operator mem bers of the Manila Taxicabs and Garages Association. Current PSC projects include liaison with the EC A in safety matters, broadening of the Council’s “safety award badge” plan to include employees in all fields, actual formation of provincial chapters of the PSC, considerable work in conjunction with the Fire Prevention Board at Malacanan, and finalization of a new traffic code for sub mission to the Manila City Government. HALL, PKWELL, OllTIGAS & (0. INVESTMENT BROKERS, DEALERS & UNDERWRITERS PHILIPPINE EDUCATION CO 1104 CASTILLFJOS QUIAPO, MANILA MEMBERS 201 AYALA BLDG. MANILA STOCK EXCHANGE MANILA August, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 281 COST OF LIVING PRICE INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1948 TO 1951 (1941 = 100) Bureau of the Census and Statistics Manila 1948 All (100) 1 1 Cloth- Fuel, Light and Water (7.73) Miscel laneous (14.84) ingl^wer (63-43) | (ii.gg) | (XO*) January.......... 390.7 427.6 453.9 224. 5 304.6 249.91 .2560 February........ 369:8 394.0 453.9 223.:8 301.1 254.4 .2708 March............. 349.4 361.0 453.9 214.6 308.1 255.9i .2862 April................ 354.6 374.1 453.9 209.4 289.7 254.8 .2820 May................. 349.8 360.2 453.9 214. 2 289.7 271.6 .2859 June................. 354.3 370.4 453.9 205. 2 283.2 262.9i .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.......... 374.9 404.0 453.9 204.8 283.2 257.91 .2668 November.... 368.7 394.4 453.9 202.10 281.6 258.7 .2712 December.... 365.9 389.9 453.9 202J0 282.4 258.9: .2732 1949 January........... 363.8 386.8 453.9 202.10 279.0 258.9i .2750 February........ 343.8 355.5 453.9 203.10 277.5 258.9i .2909 March............. 345.3 358.2 453.9 202.0 ,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................. 349.0 362.9 453.9 203.19 287.5 257.2 .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 9 453.9 202.19 259.5 256.2 .3035 1950 January......... 332.3 336.8 453.9 238.10 253.1 269.3 .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 9 453.9 243.15 249.7 319.1 .3095 July.................. 332.0 322.4 453.9 252.15 249.7 328.7 .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 .... 354.1 353.2 453.9 322.13 249.7 335.9 .2825 December.... 352.2 350.5 453.9 325.:2 249. 7 334 8 .2839 1951 January......... 355.2 355.0 453.9 331. < 249.7 334.6 .2816 February. . . . 358.4 359 8 453.9 342.13 249 7 334 4 .2790 March........... 352.4 349.3 453.9 379.'1 248.8 334.3 .2838 April............... 361.2 362.6 453.9 398.15 247.5 334. 7 .2769 May.... 365.0 367.0 453.9 410.'1 247.5 339.5 .2740 June................ 367.8 372 0 453.9 399.!5 247.5 337.7 .2719 Average number of persona in a family = 4.9 members. Explanatory Notes THE cost of living index, which will henceforth be called the “Cost of Living Price Index,” calculated by the Bureau of the Census and Statistics, is intended to measure from month to month the changes that take place in the levels of retail prices of goods and services which are customarily consumed by wage earners’ families from one period to another. The index is not applicable to families of wage earners in the provinces nor to families in the higher income bracket anywhere in the Philippines. The index should not be “confused with, or changed to become, an index set up to measure from time to time changes in total family expenditures.” As it is, the cost of living price index merely serves as a barometer of the changes in the retail prices of goods and services which are customarily consumed by the average wage earner’s family in Manila. In order that the relative importance of the different goods and services may be reflected in the index, weights are provided based upon a previous survey of the living pattern of workingmen’s families in Manila. The commodities listed are only the most essential necessi ties of the family mentioned; for this reason, the family’s pattern of living is considered the "minimum of subsistence level.” It should be in this light, therefore, that any computed amount of expenditures derived from the index should be regarded. In the computation of the index, the Bureau of Commerce weekly quotations of retail prices of foodstuffs, clothing, fuel, medicines, and other miscellaneous items are used. The Bureau of the Census and Statistics does not have its own price quotations. The reason is ob vious. It does not want to duplicate the functions of the Bureau of Commerce which is another office of the Government. Prices of serv ices, such as light, water, transportation, house rent, hair-cut, etc., are gathered from other sources. The method of computation used is by weighted arithmetic aver age for foodstuffs and by weighted and unweighted geometric mean of price-relatives for other components of the index. Base: 1941 = 100. Components of the index consist of 29 items for food; 1 item for rent; 12 items for clothing; 4 items for fuel, light, and water; and 23 items for sundries. AGENTS TELEPHONES BROKERS 3-34-20 CHARTERERS 3-34-29 American Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama Cable Address: 2Q3 Myers Bldg. “AMERSHIP” AJea MOTOR SERVICE CO., II. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area Tel. 3-36-21 AT FLYING DEALERS TIDE WATER ASSOCIATED OIL COMPANY MANILA • CEBU • DAVAO • ILOILO • LEGASPI AMERICAN CHAMBER OF COMMERCE JOURNAL The Government . . . on Sunday, August 19, a special public holiday. July 26 — Announced that the President has approved a com promise draft of Article 14 of the peace treaty draft approved by the Committee on the Japanese Peace Treaty on July 16 and presented to Ambassador Cowen on July 22. It reads: suffe“^ first in RECAPPING Every tire must get a clear “Bill of Good Health” or it will not be recapped at the B. F. Goodrich Plant. This requires careful inspec tion by men experienced in detecting flaws such as chafed beads, checked sidewalls, exces sive age, ply, bead or extensive tread separa tion, radial cracks. Only sound tires are se lected. Cuts and injuries are marked, all nail holes probed, and foreign objects removed. RECAP 207 Rizal Ave. Ext. PLANT Grace Park, Caloocan The men at the B. F. Goodrich Recap Plant have the equipment, the training, the knowledge and the material to do treading jobs of superior quality that will produce new highs in performance and new lows in cost per mile of tire operation. L. . Tel.: 2-72-23 .F. Goodrich FIRST IN RUBBER__________ Goodrich International Rubber Co. 13th and Atlanta Sts. Port Area MANILA TEL.: 3-37-21 The Board of Regents of the Univer sity of the Philippines elects Dr. Isidro Panlasigui, head of the Department of Psychology, as Dean of the College of Education to take the place of the late Dean Francisco Benitez. July 27 — In line with a resolution adopted by the Collective Security Meas ures Committee of the United Nations in November, 1950, recommending that member states maintain within their national armed forces such elements as could promptly be made available as a United Nations unit or units upon recom mendation of the Security Council of the General Assembly, the Cabinet approves such maintenance; the Department of National Defense, however, considers that for the present in view of the condi tions prevailing in the Philippines, the Philippine expeditionary force now serving in Korea can be considered as a fulfillment of the “Uniting for Peace” resolution. July 28 — The President appoints Da niel M. Salcedo as ad interim Assistant Director of Private Schools, a position which has long been vacant. The Pres ident discharges Bernardo Bagamaspad, provincial treasurer of Cotabato, for irregularities committed by him as exofficio agent of the Philippine National Bank in granting huge crop loans to un qualified and insolvent borrowers; the Supreme Court recently affirmed a decision of the Cotabato court of first instance holding him responsible for losses amount ing to P699.803; in February 1948, he was suspended as provincial treasurer of Cotabato. The Department of Foreign Affairs announces that a delegation from the Export-Import Bank will leave Washing ton for the Philippines on August 1 to study various aspects of Philippine eco nomy “for the purpose of coordinating and integrating the extension of grants and loans to productive enterprises with the aid being extended to the Philippines by the E.C.A.” The members are: L. U. Stambaugh, E. S. Lynch, W. K. Graves, and V. F. Haseoehrl. - The Philippine Embassy in Washington reports that the Office of International Trade will resume consideration of ap plications for export licenses for auto motive parts, shipments having been suspended some time ago to 7 Far Eastern countries, including the Philippines, to prevent transshipments to unauthorized destinations. July 30 — The President approves the release of Pl,888,825, obtained from the sale of the 4% Rehabilitation and Devel opment Bonds of 1951, to be alloted to the National Shipyard and Steel Cor poration and the National Development Company for the national shipyard and graving dock and for the construction of vesse’s. July 31—The Administration’s stand with respect to the Japanese draft peace treaty is endorsed in a resolution adopted at a Manila convention of 49 provincial gover nors and the mayors of 24 chartered cities. August, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 283 The “LET YOUR HAIR DOWN’’ - —= Column ■vvTE can’t exactly call this a formal ™ United Nations tribute to the Journal, yet it appeared in a letter under a United Nations letterhead: “Dear l§irs: In the course of its work on current economic documentation for Asia and the Far East, our Secretariat has found your periodical to be a very useful source of reference. We find, however, that the under mentioned numbers have not been received though subsequent numbers have reached us. We shall appreciate it very much if you will kindly send them to us at your earliest convenience.” The letter was signed by the Li brarian of the Economic Commission for Asia and the Far East in Bankkok. The missing numbers were those of July, November, and De cember of 1950. We are certain that these issues were duly mailed as we have an automatic addressograph system, and they must there fore have been lost in the mail. But of course, as requested, we sent re placement copies.A good many readers of the Jour nal save their copies and even have them bound in annual volumes in stead of allowing them to get lost, as periodicals generally do. Even when care is taken to preserve them, however, certain numbers still may prove to have been mislaid, and in that case we can help. During the month we received a letter from the well known Manila lawyer, Mr. Ra mon Diokno: “Enclosed please find my check, in the amount of P5.00, in payment for one year’s subscription to the Journal, to commence with your July, 1951 issue. “I would like to complete my collection of the Journal and would like to know if you have back issues and, if so, how much each back issue costs.” We make a practice of keeping a small supply of all back issues,— around 100 to begin with, and can still supply copies of all but a few of the post-war issues at a charge of 50 centavos a copy. *t,he editor received the following J- letter from a prominent Manila business regarding the July issue of the Journal: “Dear Mr. H—: “Please accept my highest commendations for the excellence of the July issue of the Journal. Your editorial, ‘American Power and American Prestige’, should be read by a lot of people who, I am afraid, will not see it. If you can spare me five additional copies of the Journal, there will certainly be a few other people in the United States to read that editorial. “It was good to be reminded of William Cullen Bryant’s famous poem on Freedom. That should be required reading by every American and Filipino one time per annum. “Your reminiscences on Manila five years ago also provided me with a half hour of most interesting and informative reading. I wish you would publish your unpublished history of Santo Tomas Camp and the Jap anese occupation. What is holding that up? "Do not forget to send me the five extra copies, if you can spare them. “Sincerely yours, etc.” Harmony... All ways, anywhere! CUSTOM MADE VENETIANS . . . assure you of complete harmony of function and beauty. In color and size—perfectly installed for a lifetime of service. “LIFE TIME’’ Venetians are constructed with the finest craftsmanship and built with LEVOLOR—self-adjusting filter. Call 5-42-74, free estimates cheerfully given. CADWALLADER PACIFIC COMPANY 337 PEREZ ST., MANILA BORROMEO ST., CEBU CITY The reply follows: “Dear Mr.— “Thanks very much for your kind letter of July 21. It is very heartening. It .isn’t, as one might think, so satisfactory to me because I am always looking for or wanting and inviting praise. Of course, I greatly prefer an appreciative letter because, most important, it goes to show that as editor I am hewing to the line; but for the same reason, even a critical letter is valuable; and, anyway, almost any kind of response from the readers of a publication is preferable to a dead silence. I know that in many lines of important work, men work quietly and well and hardly ever get a word of commend ation although they may get their promotions right along. They would .consider it a weak ness to court expressions of recognition. But as I have sometimes said, an editor is to 284 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 some extent in the position of an actor or musician or any kind of man who must make his appeal to an audience or a public. And it is very necessary for all of them to get a recognizable and quick response or they sim ply do not know where they are at,—whether they are doing whatever they are doing right. So again I thank you, personally for the kind words and professionally for the help. “As to my history, the reason it has not found a publisher,—I have tried it on several, including Macmillan’s', is that it is very long and detailed and probably not generally interesting except in parts. It would run to some 2000 closely printed pages and would cost a good deal of money to print. If I had been willing to write a short book of ten or fifteen easy, snappy chapters, I could easily have found a publisher. But my book was written during the internment, beginning STEEL FABRICATORS CONTRACTORS ENGINEERS MANUFACTURERS MERCHANDISERS RIVER & HARBOR WORK SHIPS' REPAIRS Operating: MACHINE SHOPS FOR CONSTRUCTION AND REPAIR FOUNDRY FOR CAST IRON, BRASS & BRONZE STRUCTURAL STEEL FABRICATING SHOP MARINE REPAIR SHOPS WOOD PRESERVING PLANT Armco International PCorporat>on Armstrong Machine Works Chain Belt Company of Milwaukee Cherry-Burrell Corporation Clayton Manufacturing Company Cofhng Hoist Company Dempster Brothers, Inc. Dodge Manufacturing Corporation Fairbanks, Morse and Co.. Inc. Distributors of Firth-Sterling Steel Company Gardner-Denver Company Gar-Bro Manufacturing Company Giant Manufacturing Company Johnson Service Company Landis Machine Company Lincoln Electric Company Line Material Company Marion Power Shovel Company Mercator Corporation Mystik Adhesive Products ATLANTIC, GULF & PACIFIC CO. OF MANILA {PHILIPPINE CONTRACTORS SINCE 1905) EXECUTIVE OFFICES • ENGINEERING DIV. STRUCTURAL & MECHANIC SHOPS Barrio Punta. Sta. Ana Manila Tels: 6-75-31 • 6-75-32 • 6-75-33 on the very first day and continued in misery and danger because writing was forbidden, and my aim was to write for the record as long as I could get away with it. I certainly was never in the mood to attempt a “pop ular” book at the expense of all the suffering in the camp and in the country, and still don’t want to convert my long tome into anything of the kind. You inadvertently used the word "reminiscences”, but that is exactly what the book is not. All of it was written at the time and on the spot from day to day, and that is really what I feel makes it valuable. The whole Camp part of it was written on a “noiseless” typewriter, set on a folded blanket on a cane-seated chair to further deaden the sound, and always with friends around to warn me of the approach of any Japanese guard.’ “Yours, etc.” Pioneer Engineering Works Shepard Elevator Company Smith Welding Equipment Corp. Stapples and Pfeiffer Terry Steam Turbine Company Tube-Turns. Inc. Walsh Refractories Corporation Western Brass Works Western Rock Bit Manufacturing Co. York Corporation MERCHANDISE SALES DIVISION Robert Dollar Bldg., Muelle de San Francisco & 23rd St., Port Area, Manila Tel. 3-36-61 (Connecting all Depta.) yyTE recently received an 88-page ™ pamphlet on the very important subject of soil management prepared and published by the International Harvester Company of Philippines. It contains a preface by Vice-Pres ident Fernando Lopez, who is con currently Secretary of Agriculture and Natural Resources, and ack nowledgements are made to such authorities as Messrs. Marcos M. Alicante, Jesus P. Mamisao, Dominador Z. Rosell, Nemesio B. Men diola, Mariano Manas y Cruz, Leopoldo Uichanco, Juan Salcedo, Jr., Florencio Tamesis, Eduardo R. Al varado, etc. It is fully illustrated with maps, diagrams, and truly striking photographs and contains also numerous useful tables. It is, in brief compass, a handbook on the subject of soils and their utilization and conservation, fertilization, irriga tion, and drainage, with practical instructions also concerning erosion control, reforestation, damming, ter racing, contour layout, use of farm machinery and heavy equipment, etc. It is the sort of manual which every farmer and planter here should have at hand. The International Harvester Company is to be congra tulated on getting out such a valu able work. Its publication is indeed an example of constructive public service. TRAVELING?? 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MANILA Tel. 2-69-71 *t<he editor complained the other A day that the newspapers gave very poor coverage to a really interesting social affair. “ None of the society editors were even there,” he said; “they were all off to some dress show!” “A fashion showing of originals,” he was informed, “and very good, too!” “Well, I grant you women have to dress, but that most enjoyable social evening at the Army and Navy Club, provided through the thoughtfulness and kindness of Mr. and Mrs. Albino Z. SyCip, deserved some good write ups.” “Why don’t you say something about it then? You’re a writer, of sorts,” said we. “I’m no society reporter, by gad,” said the editor, “but I can tell you this: that there hasn’t been such a party since Carson Taylor gave his blow-out at the Santa Ana Dance Hall, two or three years ago in cele bration of his fifty years in the Phil ippines.” “It was a buffet supper given by the SyCips in honor of Mr. and Mrs. Richard R. Ely, who recently ar rived from Washington to join the Embassy here. Dick Ely and I both arrived in the Philippines on the same ship thirty-four years ago. The lady who is now his wife came here the following year to marry him . .. Ely was a teacher but trans ferred to the Office of the GovernorGeneral, was here for years under succeeding Governors and High Com missioners and then went to Wash ington where he became head of the Philippine division in the State De partment. Of course, he still has many friends here among the oldtimers, Americans and Filipinos, and that night it seemed lflce all of them had been invited. “I asked Mr. SyCip how he had made up his guest-list, which some might have taken as an impertinent inquiry, but wasn’t meant so and wasn’t taken as such. Mr. SyCip said that Mr. Ely and he had gotten together and put down the names of all the old friends they could remem ber, but that, unfortunately, the names of some friends had escaped them and were recalled too late. “There were many there you don’t often see anywhere anymore, former high Filipino officials who have more or less dropped out of things, Amer icans, many of them retired or semi retired,—anyway, from ‘society’. And it was so obvious that they were all so glad to see each other. Fili pinos and Americans chatted toge ther in groups and sat around the tables, and many a talk turned^ to reminiscence. And the talk was very frank, in the old way, everybody WANT... ■ UNDERWOOD SUNDSTRAND THE PAYROLL MACHINE THAT SPEEDS THE IF YOU DO, THEN YOU NEED ..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! SMifH.MLL~Cd..LTI>. TRADE AND COMMERCE ■LDG. MANItA Tel. 2-69-71 286 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1951 C. F. SHARP & COMPANY, INC. STEAMSHIP OPERATORS—AGENTS SHIP BROKERS GENERAL ORIENTAL AGENTS: WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE I VARAN LINES—FAR EAST SERVICE (Holter-Sorensen—Oslo, Norway) PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) (TRANSATLANTIC STEAMSHIP CO., LTD.) 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There was mutual respect and trust. “It was like one of the old Malacanan receptions of long ago, in miniature, with everybody knowing everybody else and everyone of real place in the world, based on con structive, honorable achievement. “ ‘I had a “lovely” time,’ said one elderly American almost tearfully on going home. “So did we all.” “But,” said we, “you haven’t said anything about who was in the re ception line, you haven’t said any ALLIS-CHALMERS Basic Machinery For Every Major Industry A-C Gyratory Crushers For High Capacity and Reliable Operation Allis-Chalmers Hydrocone* (Type R) crushers provide conti nuous high capacity, more uniform product and maximum life of crushing surfaces. Uncrushable material is automatically cleared in seconds. Product size can be changed by the turn of a handle. Hydrocone* crushers handle 7 to 1000 tons of material per hour. Product sizes from 1/8" to 2’^". 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There was a past youth. . . and hope . . . not yet quite dead ...” Prompt Service on Tire Recapping j For FREE PICK UP and DELIVERY SERVICE—TEL. 3-32-16 J GOODYEAR RECAP PLANT 11 th & Atlanta Sts., Port Area, Manila TEL. 3-32-16 WHAT EVERY SMOKER WANTS ForYOlL See BARBARA HALE starring in "LORNA DOONE" Edward Small Production • A Columbia Technicolor Picture Mildness No unpleasant After-Taste Hundreds of prominent TOBACCO GROWERS SAY: "When I apply the Standard Tobacco Growers’ Test to cigarettes, I find Chesterfield is the one that smells Milder and smokes Milder." A WELL-KNOWN INDUSTRIAL RESEARCH ORGANIZATION reports: "Chesterfield is the only cigarette in which members of our taste panel found no unpleasant after-taste." Liggett A Mros Tobacco Co, Chesterfield Listen to the Bing Crosby CHESTERFIELD Show on Thursday and to the Arthur Godfrey CHES TERFIELD Program Saturday through Wednesday, both from 8:30 to 9:00 P. M. over Station DZPI