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The American Chamber of Commerce Journal Vol. XXVII, No.12 (December 1951)

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The American Chamber of Commerce Journal Vol. XXVII, No.12 (December 1951)

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Vol. XXVII, No.12 (December 1951)

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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 December, 1951 No. 12 Contents Editorials— The Elections....................................................................................................................................................................................................................................... Why the People are "Mad”.......................................................................................................................................................................................................... 50th Anniversary of the Public School System..................................................................................................................................................................... Return to Orthodoxy...................................................................................................................................................................................................................... Company-Employee Relations........................................................................................................................................................................................................ Alien Right to Justice...................................................................................................................................................................................................................... Deterrents to Foreign Investment.............................................................................................. J. A. Parish..................................................... 403 404 404 406 406 406 408 The Business View— The Government........................................................................................................................................... Banking and Finance.............................................................................................................. Manila Stock Market.................................................................................................................................. Credit............................................................................................................................................. Electric Power Production........................................................................................................................ Building Construction............................................................................................................. Real Estate..................................................................................................................................................... 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............................................................................... Cost of Living Price Index, 1948-1951................................................................................................ The “Let Your Hair Down” Column.......................................................................................................... Philippine Safety Council........................................................................................................................... Index for Volume XXVII, 1951...................................................................................................................... Official Source............................................ 411 G. R. Hutchison........................................... 413 A. C. Hall....................................................... 413 C. W. Muilenburg....................................... 414 J. F. Cotton.................................................... 414 J. J. Carlos..................................................... 415 A. Varias........................................................... 415 L. E. Burgett................................................. 415 B. B. Tunold................................................... 416 N. N. Lim.......................................................... 416 L. J. Reyes....................................................... 418 K. B. Day......................................................... 419 H. R. Hick....................................................... 421 F. Guettinger................................................ 421 S. Jamieson....................................................... 422 L. A. Pujalte.................................................. 424 S. ScHMELKES................................................... 425 C. G. Herdman............................................... 426 W. V. Saussotte............................................ 427 E. E. Selph..................................................... 429 Bureau of the Census and Statistics.......... 430 ............................................................................... 431 F. S. Tenny..................................................... 434 ................................................................................. 437 50 CENTAVOS THE COPY A GREAT GASOLINE GIVES YOU— ALL THE GAS MILEAGE YOUR CAR CAN DELIVER! f'n/95/M)Mgas EconomyRt/nf Practically every popular make of Amer­ ican car participated in this test — demonstrated mileage economy far be­ yond what the average motorist gets or expects — OVER 9.72 KILOMETERS PER LITER! Thanks to Careful Driving-Good Car Care ^Mobilgas ZbrfWA-Z&cXfeyforfoer of PHILIPPINES Editorials “ ... to promote the general welfare” The famous French liberal, Alexis de Tocqueville, who visited the United States in 1831 and wrote a book on democracy in America, said in this book: The “There is an amazing strength in the expresElections sion of the will of a whole people; and when it declares itself, even the imagination of those who would wish to contest it, is overawed”. We in the Philippines saw the truth of this statement impressively demonstrated in the elections last month. The Liberal Party losses were shattering. Ex-Represen­ tative Juan Borra, defeated senatorial candidate, said, in explanation of the electoral results: “The people-are mad at us”. President Quirino, head of the Party in power which suffered such severe losses, nevertheless bravely found grounds for satisfaction, and found them chiefly on the grounds of the phenomenon which impressed de Tocque­ ville. In a high-minded radio talk given on his 61st birth­ day three days after the election, the President said: “I am especially glad to have my radio chat for this month fall on my birthday. “I know of no happier occasion to share our common gratification over the freedom and orderly conduct of our last election. Indeed, there is no greater and more meaningful event to report at this moment. I look upon it as the one memorable gift from our people that I want to cherish this day. “Once again, and in a fashion that no one anywhere can question, we have given a most impressive affirmation of the vigor and validity of our democracy. That is the important thing, besides which winning an election or losing one is a mere incident. . .’* Despite the widespread pre-election violence, and some sporadic violence afterward, the elections themselves were held in a generally free and orderly manner and for this the President himself was chiefly responsible. Very evidently he had early come to the conclusion that, too hopeful .though he may have been as to the outcome for his Party, it would be better to suffer losses than to permit a dishonest conduct of the elections. He not only realized, more clearly than some of his followers, how dangerous it would be politically and from the point of view of public peace and order, to attempt to thwart an expression of the will of the people, but also that the eyes of the world, and particularly the eyes of America, were on the Philippines in this vital matter. As Ambassador Myron M. Cowen stated in a public address shortly before he left the Philippines,—and before the elections: “Your elections as such are your concern and yours alone... Any comment on my part upon any one of the personalities or issues in­ volved would be the height of impropriety. . . But I can not agree that the principle of the free ballot is a matter only of local interest, whether of your nation or mine. . . For this right of suffrage is One of the basic rights of the free world, a vital part of the foundation sup­ porting the priceless structure of human rights that make up the heritage of Democracy.” Credit for the honest conduct of the elections should go also to Secretary of National Defense Ramon Magsaysay and the Army, including some 4,500 volunteer cadets, to the public school teachers employed as “watchers,” and to the Commission on Elections, though these persons, entities, and organizations were only doing their sworn duty. Credit should go also to the press and the radio for their watchfulness and their zealous and up-to-the-minute reporting, and to many civic organizations, especially the non-partisan National Movement for Free Elections (Namfrel). Toward the end of his radio talk, the President said: “In perspective, after the passions of the electoral campaign die down and we calmly appreciate our strides in democratic practice, evidence of our political maturity, there is that shining fact for which we can join in a common worship in praise of the Almighty,—that we have justified our existence as a democracy.” This is true as to the ultimate achievement, but is not entirely true as to the means which had to be resorted to. The role of the Army in the elections was an outstand­ ing one, it may be said a glorious one in this case, but the need for a resort to it was not evidence of political maturity. And it should be pointed out that, in principle, it is highly dangerous to rely on an army, which is an instrument of the executive department of government, to preserve the freedom and honesty of elections. Generally, if armies are used at such times, they are used by those in power 403 to keep themselves in power. It stands to the great credit of the President, to Secretary Magsaysay, and to the officers and men of the Philippine Armed Forces, that they were neutral in this matter,—to the great good fortune of the nation. But this might not always hold true. As justice William H. Hastie once pointed out: “De­ mocracy is a process, not a static condition. It is becoming rather than being. It can easily be lost, but never is fully won. Its essence is eternal struggle.” If Mr. Borra’s interpretation of the outcome ,of the elec­ tion is correct,—that the people are “mad” at the Adminis­ tration, the question remains as to Why the People why they are so. Are “Mad” No great differences as to national policy, whether domestic or foreign, were brought out during the pre-election campaign. It is doubtful that the respective party slates were an important factor, for there were good and able men among the candi­ dates of both parties. The opposition directed its attack mainly on the alleged extravagance and .on the corruption in the Government, and these, indeed, are sore points. But, in our opinion, the popular protest which has been registered is based largely on broader economic grounds. It is not that there is any great disagreement as to the Government’s general policies of economic develop­ ment. Rather, resentment has been provoked by the manner in which these policies have been carried out. The people probably feel that, especially as consumers and as tax­ payers, their interests have been largely ignored. It has for several years been a matter for amazement how drastically, yet insouciantly, the Government has increased the tax rates, further burdening the people, and has taken other measures, such as through the import and exchange controls, which were bound to leave consumer demand unsatisfied, increased costs and prices, and, in general, make for a poorer rather than a better life for everyone. The Government has acted as if it would never have to render an accounting and never to suffer a rebuke. Whether the lesson has even now been learned by certain men in power, is still a question, as indicated by the proposal just made that the tax on foreign exchange be increased from 17% to 25%. What this would do to still further increasing costs and prices, including the living costs of the common people, is plain to everyone, but what the effect of such further increase would be on the temper of the voters is apparently not yet fully grasped by some. By a proclamation of President Quirino, the Philip­ pines this month, from the 10th to the 16th, celebrated the Golden Jubilee, or the fiftieth 50th Anniversary anniversary, of the establishment of the Public School of the country’s public school System system. The fifty years are reckoned from the enactment, on January 21, 1901, of Act No. 74 which established the Department of Public Instruction. It provided, among other things, that “the English lan­ guage shall, as soon as practicable, be made the basis of all public school instruction”. It also provided that “soldiers may be detailed as instructors until such time as they may be replaced by trained teachers”. The Army began opening schools from the very start. The first one was established on Corregidor within less than a month after the Battle of Manila Bay and schools were opened in Manila within three weeks after the occupa­ tion. This may seem a strange activity for an army, but the following is what General James F. Smith, as Secre­ tary of Public Instruction, reported on the subject: "The American soldier, acting in the role of an instructor of a people in arms against his country, was an object lesson which, while it did not serve to convince the insurgents of the error of their ways, at least caused many of the better element among them to soberly inquire of themselves whether, after all, the United States might not have the welfare and well-being of the Filipino people very much at heart.” And General Arthur MacArthur, as Military Governor, said: “I know of nothing in the department of administration that can contribute more in behalf of pacification than the immediate institu­ tion of a comprehensive system of education, such as recommended by the General Superintendent.” Public education, as distinguished from the limited educational activities of the clergy in parochial schools, began in the Philippines in 1863, when a public school system was established by royal decree, but there were still only some 200,000 children enrolled in the primary schools by the year 1897 and the system collapsed entirely during the revolutions against Spain. The Filipinos had long wanted a free and non­ sectarian public school system, and the various constitutional documents of the revolutionary period, including the Malolos Constitution of 1898, all contained provisions for the establishment of such a system. The people, therefore, soon heartily supported the schools opened by the Americans. Act No. 74 authorized the Superintendent of Public Instruction to bring one thousand trained teachers from the United States, and these teachers who arrived on a number of army transports during the year 1901, the greater number of them on the Transport Thomas, have since been known as the “Thomasites”. In a brochure entitled, “From the Transport Thomas to the Santo Tomas Internment Camp”, Dr. Gilbert S. Perez states: “This expedition was one of the most remarkable ever undertaken by a group of teachers and was one of the most notable enterprises in the history of the world... An army of teacher-Argonauts which was destined to do a piece of work that is unparalleled in the history of education; a group of young men and women who answered the call of their Government for service overseas; a group which has labored for almost forty years in the task of building a new nation in the Far East; a group which, when its work was crowned with success, has been treated with unheard-of forgetfulness and neglect by the American Government which sent them out to the Orient and which they served so long and so faithfully." The temper and spirit of these young people is well exemplified by the story of R. Zumstein who, in July, 1902, left his station at Carcar, Cebu, for Manila to meet his fiancee who had come to marry him. The two young people were married at 8 o’clock in the morning of July 21. The young husband died of cholera at 1 o’clock that same day. A day or two later, the widow left for Carcar to take his place as teacher there. Of the 600 teachers who arrived on the Thomas, 27 had died before two years were over, 3 of them women. Seven died of cholera and 2 of dysentery; 5 of smallpox, 1 of appendicitis, 6 were killed by “ladrones”, 1 was drown­ ed, and 1 committed suicide. These were only the first of some 5,000 American public school teachers who served in the Philippines during the past fifty years. There are still a few of them left and 8 are still in the service. Most of them, over the years, returned to the United States, but many died and are buried here. One Saturday morning, last month, a few days before he left the Philippines, Ambassador Myron M. Cowen placed a wreath on the small monument erected in the American teachers plot in the Cementerio del Norte. He was the first American official of his rank to pay this tri­ bute to the memory of those who lie there. It was an espe­ cially touching thing that while there were only a few Americans present, including several of the gray-haired American teachers, the Filipino teachers and high educa­ tional officials in Manila turned out in a force of three or four hundred. 404 December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 405 PREVENT BURGLARY derwriters’ Laboratories, Inc., you are taking dangerous chances with your val­ uables. Every modern Mosier. Safe bears the UL label. LOSSES! Do You Know These Facts About Safes? An old-style heavy-walled safe gives little or no protection against fire. It may Contrary to popular belief, not all safes arc designed to foil an experienced bur­ glar. But a Mosier money chest is . . . and docs! i incinerator for your cash and valuable Mosier Safe is records. But a modern charring heat. You cannot depend on a refinished used safe that may have been through a previous burglary or fire. If your present safe was built before 1917, watch out! If it doesn't carry the label of the Un­ Theft of your cash might easily force you to close up your business. So don’t take foolish chances by trying to hide your money, or by placing it in an obsolete safe. Burglars are smart. They know where you keep your cash. And their precision tools can quickly open the most formidable looking old-style safes. The surest way to protect money on your premises is to keep it in a Mosier armored-steel Money Chest designed especially to protect money. A Mosier Safe Protects Your Business Records from Fire! Think how the destruction of your accounts receivable, inventory records and other vital business papers could cripple your firm. Actual survey shows that 43 out of 100 firms whose records are lost in a fire, never reopen. Modern Mosier Safes are specially insulated against intense heat. Every Mosier Safe bears an Underwriters’ Laboratories label to show that it will withstand the severest tests for fire, impact and explosion. Label Means The UL label is awarded only by the Underwriters' Laboratories, Inc., an in­ dependent organization formed to test the products of various manufacturers. Every Mosier Safe carries the UL label. It ccr-' tifics that the safe is capable of with­ standing temperatures of from 1700° F. to 2000° F. for periods of from 1 to 4 hours, depending on what model the safe is, before the interior temperature reaches 350° F., the point at which paper chars. Also the safe will withstand tremendous impact and concentrated attack with bur­ glars’ drills, sledge hammers, wedges and mechanical tools. The UL label is ac­ cepted by many insurance companies as a basis for rate reductions. It is your assur­ ance of an absolutely dependable safe. Be sure to look for it. How a Mosier Safe Gives Double Protection! SAFE MONEY CHEST COMBINED THEFT AND FIRE PROTECTION A Mosier Safe with built-in money chest protects your valuables in two ways. First, the tough, armored-steel money chest prevents theft of your cash. It is specially designed and built to foil the most expert burglar. Indeed-the more experienced thieves won’t even attempt to break into a Mosier money chest! Then—the Mosier Safe itself guards your precious business records from fire. Every Mosier Safe is insulated to keep interior temperature below the charring point of paper. A Mosier Safe has large inside dimensions at no sacrifice of security. It’s a handsome safe you will be proud to own! Why not find out more about Mosier Safes? A special booklet, “What You Should Know About Safes,” will be sent on request, without obligation. MOSLER BANK VAULTS Throughout the world, financial institutions rely on Mosier to protect their funds, securities and all other valuable papers and records against theft, fire, flood, civil disturbances and other catastrophes. Mosier built the vaults at Fort Knox, Ken­ tucky, where the United States Government gold is stored, and the bank vaults that with­ stood the atomic bomb at Hiroshima. >Mosler Safe a. 320 Fifth Avenue, New York 1, U.S.A. Cablet: "OMOPtATE NEWYORK" WORLD’S LARGEST BUILDER OF SAFES AND VAULTS ... FOUNDED IN 184B For sale by: ELIZALDE TRADING CORPORATION 380 Tanduay St. Tel. 3-86-71 World’s Business for October calls attention to the fact that Dr. Hjalmar Schacht, who, as is pointed out, was one of the greatest exponents of “funny Return to money” and originator of the “Aski-Mark” Orthodoxy of the Third Reich, has written a new book, “Gold for Europe”, in which he states: “No artificial system of currency, however ingeniously elaborated, can operate internationally with efficiency. Currencies accepted inter­ nationally can not bq based upon juridical agreements, the founda­ tions of which remain exposed to all the influences of misery, mis­ management, and arbitrary power. “Money, to be internationally stable, must be based upon a com­ modity which, independent of governmental and economic influence, is in demand and accepted everywhere and at any time. Of such com­ modities, gold is the one that has best stood the test of time. “Anyone who lived through those happy days before the first World War — when international exchange of goods took place with­ out friction under the free play of private enterprise, and when the state confined itself to a few general regulations — sees today with horror how governments labor in vain to restore international trade by a succession of regulations and interferences. . . “But governments are powerless against the influence of gold upon commerce and trade. It was not arbitrary decision which led to a gold currency, but human nature. Preference for gold, which made it the material basis for currency, caused it to outlive all governmental currency decrees, and ended in the disregard of such decrees when they did not take gold into account. “World commerce is calculated exclusively in those currencies whose relation to gold has been stabilized and maintained. We think in terms of gold whether we want to or not. “The efforts of businessmen, formerly concentrated solely on the organization of production and markets, are exhausted today largely in a struggle against state bureaucracies which have to carry out the instructions of politicians. The main reason for those instructions are the insecurity and confusion which have arisen in the field of finance.’’ Thus Dr. Schacht today, — “who directed the biggest international currency bluff of our times. . . and whose ‘export mark’ made him famous, or infamous...” Apparent­ ly, he has now learned one of the first lessons in primary economics. Mr. Morris H. Hall, Philippine manager of the Bur­ roughs' Adding Machine Company, recently called our attention to a rather unusual Company-Employee development in company-emploRelations yee relationship in the big Bur­ roughs organization in Detroit. The reader should understand that Burroughs has always had a reputation as “a good place to work” and that not once in its 65-year history have its doors been closed as a result of work-stoppages, walk-outs, or strikes. Burroughs employees have always had year-around em­ ployment and the wages have always compared favorably with those paid for comparable work in the area. Since 1904, the Company has gradually introduced various employee benefits which now include a retirement income and company-paid life, accident, sickness, and hospitaliza­ tion group-insurance, paid holidays and vacations, extra pay for overtime and night-shift work, etc. The Company has always dealt directly with its work­ ers and the workers have dealt directly with the Company. The workers were never “unionized”. Since 1941 the United Electrical Workers (U.E.), and since 1949, the United Automobile Workers (U.A.W.C.I.O.) have been attempting to “organize” the Burroughs workers, and last October an election was held among them to decide whether they wanted to be represented by these unions or whether to continue to deal direct with the Company, as in the past. The Company has never interfered with the employees right to organize and the balloting was free and secret. Some 98% of the eligible employees voted and they voted 5 to 1 to continue without union representation. They cast their ballots as follows: For the U.A.W............................................ 890 For the U.E................................................. 303 For No Union............................................. 5,436 We do not recite these facts here because the Journal is in any way opposed to the unionizing of workers. This was always a wholly natural and inevitable development in industry. There is much to commend it. But sometimes, and, possibly, quite often, it happens that the established company-employee relationship is so cooperative, so responsible, so effective, so friendly, that to turn over the management of this relationship on the side of the workers to officials of a national union, entirely outside the company concerned, could cause only enstrangement and, very likely, friction and trouble, to the common loss. We might add that this is certainly the case in respect to various large companies in Manila, especially the Amer­ ican-owned companies, which have from the beginning set up and maintained company-employee relationship standards far in advance of those of the industry and busi­ ness of the country as a whole. The employees of such companies may well think twice before they exchange a direct and satisfactory management of their company-employee relationships for the manage­ ment of these relations by outside union officials. Such officials not infrequently drag employee groups into strikes over issues in which they have but little if any interest and even do so for reasons of merely personal ambition. There are other and saner ways for such employees to assist their more unfortunate brethren than, often un­ willingly, turning on their own company just because a strike order has gone out. It is most unjust as well as damaging and wholly uneconomic that companies and employees who have established and are maintaining genuinely cooperative relations, should be made to suffer for those who have not had the goodwill and wisdom to achieve this. Mr. Robert Janda, in his monthly Journal column on “Legislation, Executive Orders, and Court Decisions”, duly mentioned, in the August issue, the Alien Right Supreme Court decisions in the case of to Justice Wise & Co., Inc. vs. PRISCO, G.R. No. L-4403 and in that of the Chinese Flour Importers Association vs. PRISCO, G.R. No. L-4465, holding that the acts of PRATRA (now PRISCO) in at­ tempting to allocate flour quotas exclusively to new im­ porters of Philippine nationality were contrary to the provisions of Republic Act No. 426. The Court ordered that flour quotas should be allocated on the same basis as the Act provides with respect to quotas of other types of merchandise. The Court declared that it was not the intent of the Import Control Law to deprive foreign importers of all flour quotas and stated that the construction of the Act in this manner would result in the Act’s making an unconstitutional delegation of authority to an administra­ tive official since no proper standards were established to guide, the PRATRA (later PRISCO) officials in the distri­ bution of flour quotas. We recently had an opportunity to read the text of the decision in the second of the two cases mentioned and found there a number of paragraphs which are well worth quoting in full: “VV/e are urged to interpret the provisions of Act No. 426 in a way ” that may exclude wheat flour from its operation in order to allow the Pratra to carry out its policy of placing the importation of wheat flour exclusively in the hands of Filipino importers in line with the policy of our Government to encourage and foster the spirit of nationalism among our people in business, commerce, and industry in the Philip­ pines. We have been informed, and have taken notice of the claim, (Continued on page 436) 406 December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 407 A popular Gardner-Denver hoist is this | HMS model, designed for one-man oper- | otion for shaft muching. Positive safety I lock. Hoist is supplied with or without 1 automatic brake. J A11 a n t i c, It u I f & Pacific Co. : OF MANILA i (Philippine Contractors Since 1905) I — simplicity of operation — are built into Gardner-Denver Airslushers. A single lever controls direction and speed. A pow­ erful 5-cylinder radial air motor provides high torque at all speeds — develops maximum power and speed in either direc­ tion. Gardner-Denver Airslushers are made in.'hree sizes with rated rope pull of 1100, 2000 and 2500 pounds. Write us for complete information, or see your local Gardner-Denver Distributor. SINCE 1859 GARDNER-DENVER Gardner-Denver Company. Export Division: 23} Broadway. New York 7, N. Y„ U. S. A. Gardner-Denver Company. Quincy. Illinois. U. S. A. MERCHANDISE SALES DIVISION Robert Dollar Bldg., Muelle del San Franciset j THE QUALITY LEADER IN COMPRESSORS, PUMPS AND ROCK DRILLS £ 23rd St.. Port Area. Manila Tel. 3-36-61 (Connecting all Depts.) Deterrents to Foreign Investment By J. A. Parrish General Manager, Standard-Vacuum Oil Company President, American Chamber of Commerce of the Philippines A GOOD deal .of significance can be attached to the fact that an unusual number of visits have been made to the Philippines in recent months by United States Congressmen, industrial and business leaders, writers, and officials of U. S. government agencies concerned with the administration of the American aid program in this part of the world. Regardless of the specific purpose for which any of these VIPs (Very Important Persons) come here, in the course of their stay they invariably get around to the subject of American capital invested in the Philip­ pines and to what extent it is being employed in the devel­ opment of the natural resources of the country, consequent to the approval of the Philippine Trade Act of 1946 and the adoption of the “parity amendmeht” to the Philip­ pine Constitution on September 18, 1946. The visitor is usually told, and the resident American hears and reads this over and over again, that American capital has not come to the Philippines for the purpose of developing the natural resources, as was anticipated, if not actually promised, when the parity amendment was presented to the Filipino people for their approval.* If we count out the American capital which has been applied here since the Liberation in the rehabilitation of prewar properties and in the establishment of processing plants to protect business which, prior to the enforcement of import control, was carried on through imports of finished goods, the remainder, which would be capital employed in entirely new development, can only be looked upon as disappointingly small. If American capital for purposes of new development has not found in the Philippines those conditions which must "be present before commitment of funds is normally made, there must be good and sufficient reasons for this and those reasons should be identified and spelled out. The economists of the country and those trained in the ways of international finance understand what has happened here since 1946, but the great mass of the population whose collective opinion is of tremendous influence and who are vitally interested in this question, appears to lack infor­ mation as to the true facts involved. It is indeed,an interesting observation that, collec­ tively, people attribute to capital the human emotions and prejudices of individual persons, and it would appear that to some extent such feeling is ascribed to American nationals themselves, owing to the fact that American capital has not moved into the Philippines to the extent visualized by the people who voted for the parity amend­ ment. Because of the reminders to this effect so fre­ quently presented to American visitors and to resident Americans, it is undoubtedly appropriate and timely to present in one place and at one time what seem to be the principal deterrents to the flow of foreign capital into this country. The author of this article does not pose as an econ­ omist and does not claim to be able to predict with exact­ ness what may develop with respect to the points taken up. He feels confident, nevertheless, that but little analysis or research would be required to fully support the sugges­ tions made. It is recognized, no doubt, that the legitimate aim of capital of any nationality is to employ itself profitably. Investors are generally reluctant to enter into long-range commitments when the hazards at least appear real on the 'Ratified in a national plebiscite, March 11, 1947. surface, and in such circumstances they are not inclined to examine thoroughly the underlying conditions. Acknowl­ edging that capital’s first and legitimate concern is for its security and that it is extremely sensitive to even the ap­ pearance of hazard, let us take a look at what the potential investor runs into when he examines the Philippine field. Import Control—This regulation means that de­ pending on necessity, as determined from time to time by the Import Control Commission, and with certain rela­ tively unimportant exceptions, the importation of all goods is subject to government licensing. The degree of decontrol which is resorted to from time to time depends on scarcity in the market of items which are considered essential and for which dollar exchange can be made available. The basis of the formula on which import control operates is the relative essentiality of goods to be imported, by category. As mentioned above, the importation of certain essential goods may be unlimited, at least for periods in which these goods are scarce in the market. The im­ portation of luxury or less essential goods may be subject to reduction by as much as 100%, depending on degree of essentiality involved and the current availability of dollar exchange. In its essence,- import control, which is a working partner of, although a forerunner to, exchange control, means that if your business is importation and distribu­ tion, you can not know in advance what your volume will be for any given period. If you are a manufacturer depend­ ing on dollar-source raw materials or semi-finished goods, or a producer depending on dollar-source equipment and supplies, you are also in the position of not being able to forecast your operations with any degree of certainty. For these reasons, decisions are often taken against ad­ ditional outlay of funds for expansion and improvements. Exchange Control—This regulation simply means that the peso is convertible to dollars at the discretion of the Central Bank only. In practical fact it reposes in the Central Bank the power to determine the amount of pesos which may be converted to dollars for any purpose whatso­ ever. The conversion of pesos to dollars is accomplished for several different purposes. By classification, the largest purchase of dollars covers the importation of goods for resale, including raw materials and semi-finished goods for local processing, and for machinery, construction ma­ terial, and equipment and supplies, all of which are usually employed in and chargeable to the conduct of business. The second largest purchase of dollars covering com­ mercial transactions represents the remittance of profits from the conduct of business, including dividends paid out by locally incorporated but American-owned or -controlled enterprises. Another classification of remittance would be savings made by Americans employed in the Philippines and the proceeds of liquidation where business operations have been terminated as a result of controls or for other reasons. Many resident Americans have participated in the indus­ trial and agricultural development of the country as indi­ viduals, and normally would send back home what dividends they receive from these investments. They would also in most cases repatriate their principal when they retire from the country. The program or schedule under which remittance of profits may be made differs as between firms which were established prior to December 31, 1949, and those which 408 I I International Harvester Company of Philippines wishes you and yours the merriest Christmas. For over forty years. International Harvester Company has supplied the Phil ippines with essential equipment for essential work. McCORMICK INTERNATIONAL Farm Equipment INTERNATIONAL Motor Trucks INTERNATIONAL Industrial Power INTERNATIONAL^ INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES^ BRANCHES AND DEALERS HARVESTER MAIN OFFICE: MANILA THROUGHOUT THE PHILIPPINES have entered the field subsequent to that date. With respect to the former, the regulation in common practice is 10% of the annual profit plus an additional amount equivalent to 30% per annum of the book value of the fixed assets as of December 31, 1949. It appears that no fixed pattern has been decided •upon for the conversion of peso profits to dollars on behalf of new enterprises. The Central Bank entertains requests for. such conversion on a case basis, and it is probable that the degree of essentiality inherent in the operation would be given considerable weight in each case. Exchange Tax—With the exception of dollars bought to cover the importation of certain basic foodstuffs, drugs, and other articles which rate high in essentiality, and with certain other exceptions which are not of great magnitude, a tax of 17% is collected on all authorized transactions where pesos are converted to U. S. dollars. This means that if any profit is realized from an operation or an investment, it will cost the investor 17% to return the net proceeds to the dollar source of the investment, after all normal tax obligations have been provided for. This tax also applies to remittances of savings by Americans, employed in the Philippines, remittances in support of dependents, except children in school, and remittances representing liquida­ tion or dividends which may be received from individual investments in local industry. Immigration Law—Beginning with January 1, 1952, the number of American citizens who may enter the Philip­ pines on a non-preference quota basis will be limited to 50 in any one calendar year. This regulation places Amer­ ican citizens on the same basis, for immigration purposes, as the nationals of any other country. Fifty entries per year will by no means take care of the normal turnover among Americans already employed in the Islands. If this restriction is maintained, an operator could not depend on being able to bring into the country the technicians, specialists, and trained administrative personnel which might be essential to the successful carrying out of his project. The other classifications under which Americans may enter the country are (1) visitors and (2) pre-arranged em­ ployment. Visitors’ visas are effective for a period of six months and an extension of six months may be obtained. Persons entering the country on visitor’s visa may not be employed here. Under the pre-arranged employment classification, the applicant must show that a person qualified to perform the work for which he is entering the country is not available locally. Unless the next Philippine Congress, which begins its sessions in late January, 1952, elects to further amend the immigration law in its application to American citizens, the only hope left to employers of American personnel in the Philippines is that the law with regard to pre-arranged employment will be administered in accordance with the real requirement for specially trained personnel in the country. It could hardly be expected that capital of any consequence would be committed to the development of industry or the natural resources here if the investors are to be denied the privilege of employing such technicians and other specially trained personnel as the nature of their operations dictate. Corporation Law—Article XIII, Section 1, of the Constitution of the Philippines reads as follows: "All agricultural, timber, and mineral lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, and other natural resources of the Philippines belong to the State, and their disposition, exploitation, development, or utiliza­ tion shall be limited to citizens of the Philippines, or to corporations or associations at least sixty per centum of the capital of which is owned by such citizens, subject to any existing right, grant, lease, or concession at the time of the inauguration of the Government established under this Constitution. Natural resources, with the exception of public agricultural land, shall not be alienated, and no license, concession, or lease for the exploitation, development, or utilization of any of the natural resources shall be granted for a period exceeding twenty-five years, renewable for another twenty five years, except as to water rights for irrigation, water supply, fisheries, or industrial uses other than the development of water power, in which case beneficial use may be the measure and the limit of the grant.” On behalf of citizens of the United States or corpora­ tions or associations owned or controlled by citizens of the United States, the Constitution of the Philippines was amended on September 18, 1946, by the adoption of the following “parity” provision: “The disposition, exploitation, development, and utilization of all agricultural, timber, and mineral lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces and sources of potential energy, and other natural resources of the Philippines and the operation of public utilities, shall, if open to any person, be open to citizens of the United States and to all forms of business enter­ prise owned or controlled directly or indirectly by citizens of the United States in the same manner as to and under the same conditions im­ posed upcn citizens of the Philippines or corporations or associations owned or controlled by citizens of the Philippines.” This amendment would appear to remove any handi­ cap to the investment of American capital in the develop­ ment of the natural resources of the country, and this might indeed be so, were it not for the fact that the period of effectiveness of the amendment, like that of the Philip­ pine Trade Act of 1946 and the Executive Agreement of July 4, 1946, which gave rise to it, terminates on July 4, 1974. A limitation of little more than 20 years in the pri­ vileges extended to American citizens and American-owned or controlled corporations by the parity amendment, for the purpose of developing natural resources and the opera­ tion of public utilities, renders impracticable undertakings of such long range character as these usually are. Otherwise than cited above, it may be stated that American citizens are considered as aliens to the Philippines and in consequence enjoy no more rights than are granted by law to citizens of other countries. Republic Act No. 76, approved October 21, 1946, states: “Existing laws or the provisions of existing laws granting privileges, rights or exemptions to citizens of the United States of America or to corporations or associations organized under the laws of any of the states of the United States of America, which are not enjoyed by citizens or nationals of any other foreign state or by corporations or associations organized under the laws of such state, are hereby repealed unless they affect rights already vested under the provisions of the Constitution or unless extended by any treaty, agreement or convention between the Republic of the Philippines and the United States of America.” Labor Unrest—The difficulties which have been ex­ perienced in the labor field since the Liberation by Amer­ ican-owned or -controlled enterprises have left a deep impression on the management of these firms and on Amer­ icans in general who are seeking investment-opportunity for their capital. It can not be questioned that wages, salaries, and other benefits paid by American employers are consistently at the top of the going scale in any area where these firms are located. Notwithstanding this fact, by far the major portion of postwar labor disputes and dis­ turbances have been directed against these same employers. Two factors which are operative in the occurrence and settlement of the more important labor disturbances, prob­ ably contain much of the answer for what has happened. Probably the more effective of these is the practice which has been followed in some of the more important cases wherein the labor leader, who also acted as legal counsel for his union in each instance, collected compensation for his services on the basis of a substantial percentage of the award which the case produced. Since this practice obviously contains the seed of its own stimulation and produces its own incentive, it can be expected to flourish until outlawed by more responsible labor leadership in the country. The other factor is the view held in some influential quarters that wages, salaries and other benefits should be based on ability of the employer to pay. While ability 410 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources NOVEMBER 1—President Elpidio Quirino issues Executive Order No. 482 putting into effect more stringent prohibitions with reference to the export and re-export of scrap metals, machinery, raw rubber, certain food products, textiles, and pharmaceuticals; issues an Administrative Order to expedite relief to the victims of operations taken against the dissidents; and authorizes new registrations of voters in a number of municipal districts in Lanao where the regular registra­ tions had been unlawfully conducted. Nov. 2—The President flies to Baguio where he holds a conference with ECA officials who assure him there will be no reduction in ECA aid in the Philippines. The President authorizes the Philippine Air Lines to issue a free round-trip ticket for 11-months old Elvira Difun­ torum and the attendants who will take the child to a hospital in the United States for the removal of a number of pins which the child swallowed; one of the pins is lodged in the lung and the necessary in­ struments are not available in Manila. A specialist, a U. S. Army doctor, flown to Manila from Tokyo, advised the step. Nov. 3—The President makes a brief tour of La Union, including a visit to a new maternity hospital at Agoo, named after his mother, the late Gregoria Rivera Quirino, and returns to Baguio the same day. Nov. 5—The President, back in Manila, addresses a huge rally held at the Rizal Memorial Football Stadium under the auspices of a number of civic organizations (Lions Club, Jaycees, Namfrel, and League of Women Voters) and enumerates the steps taken by him to insure free and honest elections. (Continued on next page) to pay may be an excellent basis for determination of tax obligation, its application to the payment of salaries and wages serves only to victimize employees where manage­ ment is inefficient or where irregular bookkeeping is re­ sorted to. The penalty which such a scheme inflicts on efficient and industrious management, where proper records are kept, is plain to be seen. The product 'of all incentives to labor disputes in American-owned or -controlled firms is that the wages and salaries now paid by these employers represent mountain peaks against the average level of remuneration in the communities in which they are located. Political Stability—With respect to this topic, we are all greatly encouraged, not necessarily by the results themselves, but by the manner in which political changes have taken place in the country over the past year. The fact can not be dismissed, however, that some of the most influential and able political leaders of the country have publicly advocated reorientation of Philippine poli­ tical, economic, and cultural ties away from the United States and the West and in favor of a closer alliance in these respects with countries of Southeast Asia. Regard­ less of what real import the views may contain, they are spread over the columns of the American press and are taken as danger signals to further investment in the Philip­ pines. Law and Order—Although we all feel that great strides have been made in recent months in the improve­ ment of law and order in the country, it can not be ques­ tioned that generally over the past five years, conditions have not obtained throughout much of the country under which people of any nationality could reside safely, move about freely, and carry on normal business and social intercourse. It is well understood that these conditions are not peculiar to the Philippines, but it must be accepted that risk to life and property has existed and that invest­ ment of foreign capital in provincial areas could not be expected under those circumstances. It is not the purpose of this article to question the necessity for controls, regulations, and taxes which the Philippine Government has set up, nor to criticize the manner in which they have been administered. This is an effort to line up certain factors which are known to be deterrents to the entry of foreign capital and to look at them from the position of the potential investor. It is not the intention of this article to present an unfavorable picture; but an honest recognition of what the facts are, or what they have been, can not be avoided if they are to be dealt with in a realistic manner. We are concerned here with the promotion of conditions in the country which will attract outside capital. The goal is the creation of additional wealth which can be distributed for the benefit of all. Capital in large amounts is always required for the type of undertakings we have in mind for the Philippines. If sufficient capital to do the job is not available locally or does not offer itself, then the only re­ course is to bring about conditions which will induce capital from abroad to come in. The mixture of what has been done to favor the entry of American capital, together with the deterring effects of controls, regulations, exchange tax, and severe restriction on immigration, does not constitute true inducement,—as has been amply demonstrated. The atmosphere would be cleared considerably if the Government would adopt and support a well-defined policy with regard to new American investment in the Islands. Other countries have accomplished this without in any way compromising their sovereignty, and it could be done here also. “AS for the Philippines, there is overwhelming American support for the proposition that the security of the Philippines and ^*of ourselves are inseparable and that the signature of the United States-Philippine Mutual Defense Pact registered a basic fact and a fundamental policy of our two peoples. There is agreement that we should support the internal security .and the ad­ ministrative, economic, and social development of the Philippines by military, economic, and technical assistance on a realistic basis of self-help and mutual aid. Americans know that we must be scrupulously careful not to intrude in any way upon the sovereignty and independence of the Philippine nation and that our assistance must be offered on a friendly and sympathetic basis jointly agreed between us and the Philippine Government. We are encouraged by the vigorous and forward-looking steps taken by the Philippine Government in the past year to improve the security and the economy of the Islands.”—Dean Rusk, U.S. Assistant Secretary of State. 411 Nov. 6.—The President holds a breakfast conference with Ambas­ sador J. M. Elizalde who is believed to have reported on his recent mission to Japan. The President authorizes the holding of a new registration in a precinct in Iriga, Camarines Sur, because of an earlier misunderstanding as to where the regular registration was to take place. The President is informed by Secretary of National Defense Ra­ mon Magsaysay that some 4,500 Manila ROTC cadets from among around 20,000 who volunteered, have been selected and briefed during the past week and are ready to be sent to various places in the Visayas and Mindanao to assist in carrying out the Administration’s provisions for free and honest -elections. The President issues a proclamation placing the Municipal Golf Links in Intramuros under the administration of the Philippine Ama­ teur Athletic Federation. He also directs Secretary of Public Works Sotero Baluyot to clean the war-razed area within Intramuros of the tall wild grass which is serving as a hide-out for criminals. The Cabinet, on recommendation of the Department of Finance, approves the request of the ECA that ECA financed fertilizer be exempt­ ed from the payment of the compensating tax. Announced that the Philippine Council for United States Aid has approved the purchase of 60 irrigation pumps, costing around $668,000 for distribution among the various provinces. Budget Commissioner Pio Joven discloses a plan to increase the minimum government salaries as follows: first grade eligible, Pl,920 a year; second grade eligible, Pl,440 a year; senior stenographer, Pl,920 a year; and senior typist, Pl,560 a year; to affect this increase would require an additional P5,000,000 annually. Nov. 7—The President directs Defense Secretary Magsaysay to advertise immediately for bids for the construction of the P18.800.000 hospital for Filipino war veterans following ceremonies in Malacanan which accompanied the signing and the formal turn-over by Brig. Gen. R. B. Lovett, U. S. Veterans Administration Manager, of the revised plans for what will be the largest hospital in Itfie Far East, comprising some 27 separate buildings to be erecte'd in the hills of Balongbato, Diliman, Quezon City. Malacafian releases a joint statement issued by the Department of Finance, the Central Bank, and the General Auditing Office, placing the total accumulated deficit of the Philippine Government, as of June 30, 1951, at P349,815,869.45. The President receives J. H. Carpenter, Vice-President and General Manager of the Colgate Palmolive Philippines, Inc., who inform him that the P3,000,000 factory of the Company in Makati, Rizal, is now in operation. The President expresses his elation upon learning of the successful operation in Chicago for the removal of the pin in the lung of Baby Difuntorum. Nov. 8—The President confers at length with Under-Secretary of Foreign Affairs Felino Neri on the matter of the Philippine bid for a seat on the United Nations Security Council. The President orders the placing of the police of 21 municipalities in Leyte under Constabulary control, as recommended by Governor Mamerto Ribo and endorsed by Secretary Magsaysay. The President issues Proclamation No. 290 declaring November 22 a special public holiday for National Thanksgiving. The President issues Executive Order No. 483 classifying and .fixing the maintenance responsibility for the roads of the country. He also issues an executive order prescribing the rules and regulations for im­ plementing Republic Act No. 610 which provides for gratuities and pensions for officers and men in the Armed Forces who are disabled and for the heirs of those who are killed in active service. Nov. 9—Secretary Magsaysay reports to the President that 4,500 ROTC cadets have departed for the Visayas in four LST’s. The President gives a state dinner in honor of Ambassador and Mrs. Myron M. Cowen. Earlier in the day, at Camp Murphy, the Ambassador was awarded the rank of Commander in the Philippine Legion of Honor. The Department of Foreign Affairs announces that 10,000 Japanese dolls were recently presented for distribution in the Philippines to Philippine Ambassador Jose P. Melencio, in Tokyo, by the Friends of the Philippines Society. In the presentation ceremonies, the President of the organization deplored the atrocities committed in the Philip­ pines by the Japanese armed forces and stated that Japan should make sincere efforts to reestablish cordial relatibns. Nov.- 12—The President delivers a final pre-election speech over the radio on the eve of the elections, ending with the statement: "The answer that you will give tomorrow will show the new mettle of the Filipino people.” During the day, the President placed the police forces of Cebu City and of the town of Navotas, Rizal, under the Constabulary, on recommendation of Secretary Magsaysay. The President later en­ planed for Vigan, locos Sur, where he will vote. Nov. 13—After casting his vote in Vigan, the President enplanes for Baguio. He receives a telegram from Secretary Magsaysay stating that the elections, so far, were being conducted in an orderly manner. Announced at Malacanan that the President suspended Governor Perfecto Faypon, of Ilocos Sur, effective at 6 o’clock in the evening. It is explained that the Integrity Board had recommended the suspension on October 25, but that the President had waited until after the election before taking action as the Governor was running for reelection to the governorship for which position the President’s brother, Eliseo Qui­ rino, also was a candidate. Announced that the President has designated Ambassador Elizalde as acting Secretary of Foreign Affairs during the absence of Secretary Carlos P. Romulo. (Despite pre-election violence which included the killing of 41 people, the wounding of 24, and the kidnapping of 68, the elections were carried out in an orderly manner, with only four persons reported killed, including two ROTC cadets; five other persons were wounded. For the mayoralty of Manila, opposition candidate Rep. Arsenio H. Lacson, won easily over the incumbent Mayor Manuel de la Fuente, and early returns from the provinces generally indicated an overwhelm­ ing Nationalist Party victory.) Nov. 14—Ambassador and Mrs. Cowen enplane for the United States. Minister Julian F. Harrington is charge d’affaires. Nov. 15—The President in Baguio still expresses confidence in the final victory of the Liberal Party, but postpones his usual 15thof-the-month radio chat to the 16th. He begins receiving telegrams from all over the country congratulating him on his 61st birthday anniversary (on the 16th). Members of the Integrity Board submit separate letters of resignation. Nov. 16—The President, in his monthly radio chat, states in part: “I am especially glad to have my radio chat for this month fall on my birthday. • I know of no happier occasion to share our common gratification over the freedom and orderly conduct of our last election. Indeed, there is no greater and more mean­ ingful event to report at this moment. I look upon it as the one memorable gift from our people that I want to cherish this day. Once again, and in a fashion that no one anywhere can question, we have given a most impressive affirmation of the vigdr and validity of our democracy. That is the important thing,—besides which winning an election or losing one is a mere incident. . Secretary Magsaysay states in Baguio, when congratulated by newsmen for his work: "You congratulate the President. I just carried out his order to see to it that the elections would be orderly, honest, and clean. The full credit belongs to him.” The President, when asked by newsmen to comment on rumors that Secretary Magsaysay would be relieved, states that the Secretary has done “a wonderful job”. “So what would be the reason for remov­ ing him?” The President declined to comment on the resignation en tnasse of the members of the Integrity Board following his suspension of Governor Faypon. The Cabinet decides to suspend all further shipments of sugar to countries other than the United States; of the 50,000 tons previously approved for such shipment, only the amount actually sold will be allowed to be shipped. The Cabinet also instructs the Secretary of Justice to prepare the drafts of proposed leases of both the Pines Hotel and the Manila Hotel and to open the matter to private bidding. Nov. 17—The President directs Secretary of Commerce and In­ dustry Cornelio Balmaceda to proceed with plans for a World Fair and Exposition to be held in Manila in 1953 and to invite the various nations in the world to participate. The Government is also working to have one of the sessions of the United Nations Economic and Social Council held here that year. Balmaceda informed the President that there is a good chance that the Regional Office of the ECAFE will be trans­ ferred from Bangkok to Manila as Thailand officials have expressed no objection to the move. The President confers with Speaker Eugenio Perez on a proposed new tenancy law and on amendments to the Land Law to facilitate more rapid settlement on government lands. With reference to the torture and murder today of Moises Pa­ dilla, defeated Nacionalista candidate for mayor of Magallon, Occi­ dental Negros, by special police of the Governor, the President states that Secretary Magsaysay is personally investigating the incident and that he can act on the spot. Reported later that additional troops have been sent to Negros by airlift from Manila and Iloilp and Cebu. Armed “special police” in the province number some 3,000. Nov. 18—The President inspects the new P2,000,000 Pines Hotel, four stories, 119 rooms, each with its private bath, and expresses a desire to have the building completed by December. Nov. 19—The President tells the press that he will act with firmness in the Negros situation, but that he must first have full knowledge of the facts. Nov. 21—The President, still in Baguio, receives a large group of Liberal Party members of Congress who take up with him the advisa­ bility of holding a special session and also the program for the coming regular session. The President tells the press: “I like the spirit in which they came here, particularly their determination to rise from where they have gone down and to do more than they have done before.” At a luncheon for the congressmen the President also entertains Minority Floor Leader Joseph Martin, Jr. and Congressman Leonard W. Hall, who, on a brief visit to the Philippines, called on him to pay their respects. Nov. 22—Announced at Baguio that the President suspended Governor Lacson of Negros before midnight yesterday, at the same time designating Provincial Treasurer Leon C. Miraflores as acting governor; Lacsbn is charged with "oppression and misconduct in office”. Col. Jesus Vargas reports later that the order was not served until 2 p.m. today and imputes the delay to the Bureau of Telecommunications. 412 The President states in a Thanksgiving Day message that we have just cause to thank the Lord for various accomplishments during the past very fruitful year,—measures adopted to insure economic security as well as internal and external security, the subduance of disturbing elements, ECA aid, the minimum wage law, a free and peaceful election, etc. At the direction of the President, the Social Welfare Administra­ tion, the Philippine National Red Cross, and the Bureau of Health mobilize to extend aid to many people rendered homeless by the typhoon “Wanda”, especially in Masbate, Mindoro, and Samar. Nov. 23—Members of the Cabinet submit their courtesy resigna­ tions en masse to give him “complete freedom to reorganize the Ca­ binet”. In the afternoon, back in Manila, the President confers with Secre­ tary of Foreign Affairs Carlos P. Romulo who returned from Paris and Rome yesterday. Nov. 24—The President, after prevailing over the members of the Integrity Board to withdraw their resignations, assigns to the Board the administrative investigation of Governor Lacson. The Board, which is not a court but a fact-finding body created by the President, is composed of former Justice Luis P. Torres, former Justice Mariano H. de Joya, Solicitor General Pompeyo Diaz, and Mrs. Pilar Hidalgo Lim. Announced that under the initiative of the Department of Foreign Affairs, the Arts Council of the Philippines was recently formed, a non-profit, non-stock, non-partisan, non-sectarihn corporation, com­ posed of six panels for the different arts,—music, literature, fine arts, opera, drama, and dance, which will aim at carrying the arts to the people, raising artistic standards, and improving the social and economic status of artists. The President, at the opening of the new Pl,000,000 laboratory of Sharp and Dohme (Phil.), Inc., on Isaac Peral Street, Manila, lauds the spirit behind its establishment and states: “Gentlemen, you are welcome to our country. Any company such as this will always be welcome here. We need your cooperation. . .” Nov. 26—The President receives visiting executives of the ColgatePalmolive Peet Company and of the Grant Advertising, Inc., Messrs. William L. Sims II, E. A. Spica, and Will C. Grant, who are here to attend the inauguration this week of the new ?3,000,000 Colgate-Pal­ molive Philippines, Inc. plant at Makati, Rizal. They were accom­ panied by J. H. Carpenter, Vice-President and General Manager of the Philippines branch and by J. B. Lasley, manager of the Grant Ad­ vertising branch here. The President attends the opening of the “Republic Exposition of 1951” in the new P4,000,000 Republic Super Mart on Rizal Avenue. (Continued on page 435) Banking and Finance By G. R. Hutchison Manager, Port Area Branch National City Bank of New York COMPNRATWTE. statement of condition of the Cen­ tral Bank: As of Dec. 31 As of Aug. 31 As of Sept. 28 As of Oct. 31 ASSETS 1949 1951 1951 1951 (In thousands of pesos) International Reserve. Contribution to. In­ P460.689 P 542,313 P 522,467 P 510,391 ternational Mone­ tary Fund................ 30,000 30,000 30,000 30,000 Account to Secure Coinage...................... 113,306 107,570 107,570 107,570 Loans and Advances.. 77,047 39,608 25,168 47,171 Domestic Securities.:. Trust Account — Se­ 92,197 231,206 231,193 230,846 curities Stabiliza­ tion Fund................ 6,848 6,848 6,848 Other Assets................ 20,390 77,054 82,812 91,410 P793.629 Pl,034,599 Pl,006,058 Pl,024,236 LIABILITIES Currency — Notes. . . P555.576 P 588,994 P 579,305 P 580,017 Coins.... 74,384 93,515 93,460 93,310 Demand Deposits — Pesos.......................... Securities Stabiliza­ 117,682 254,564 231,225 244,705 tion Fund................. 2,000 6,848 6,848 6,848 Due to International Monetary Fund. . . 22,498 496 496 496 Due to International Bank for Recon­ struction and Deve­ lopment..................... 2,389 2,383 2,383 2,383 Other Liabilities......... 2,636 64,322 67,747 70,833 Capital........................... 10,000 10,000 10,000 10,000 Undivided Profits.... 6,464 9,788 10,905 11,955 Surplus.......................... — 3,689 3,689 3,689 P793.629 Pl,034,599 Pl,006,058 Pl,024,236 Continued heavy liquidation of import bills resulted in a further drop of P12,076,000 in the international reserve during October as compared to the previous month. Com­ pared with December 31, 1950, the reserve has dropped from P569,982,000 to the present figure of P510,391,000. The movement of the sugar crop should shortly ease this downward trend in the reserve. Loans and advances increased ?22,000,000 to P47,171,000 at the end of October. There was little change in currency circulation as compared to the September state­ ment of the Central Bank. Despite a scarcity of cash, collections remain satis­ factory; However, there is a general tendency for mer­ chants to ask for longer terms of payment. The general credit situation should ease if, as anticipated, a sizeable volume of outstanding import licenses, expiring December 31, 1951, and covered by bank credits, are not extended. tt was announced recently that the operations of 13 ■^government corporations under the Office of Eco­ nomic Coordination yielded an overall profit of P6,400,000 during the fiscal year ended June 30, 1951. This compares with an overall loss of Pl,300,000 during the previous fiscal year. November 1, President Quirino signed an Executive '^'Order broadening and tightening the export or re­ export of a number of commodities. An absolute ban was imposed on the export or re-export of scrap metals and ingots; meat, fish, poultry, beans, vegetables, and other farm products; pharmaceuticals, textiles, raw rubber, imported machinery, and locally produced glycerine. The order provided, however, that the export and re-export of metals would be allowed in exceptionally meritorious cases and if the Export Control Committee was satisfied that the overall economic and military requirements of the country would not be prejudiced. Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas 8* Co. October 22 to November 16 WITH the exception of Lepanto Consolidated which has continued to move ahead under investment buying, the rest of the mining share market has tended to consolidate last month’s advance, with today’s prices, on balance, fractionally below the previous close. In the face of continued tightness of money, the market action can be considered satisfactory. With the heavy seasonal movement of sugar approaching, an easier cash situation can be anticipated, and this should lead to an improvement in security prices in the absence of unforeseen developments. Fluctuations in the price of fine gold in the local free market have been negligible during the period of this review, and have ranged from P112toP114 per fine ounce. 413 San Miguel Brewery common stock continues to be the feature of trading in the commercial and industrial section of the market. Sugars were mixed, insurance issues unchanged, and banks easier. Bonds and other fixed interest securities were fractionally easier. 1951 Range High Joi 115. 75 88 32 16 MINING SHARES 0925 39 028 21 14 08 80 2 00 0036 002 5 30 10 0215 275 075 055 031 84 05 43 59 024 295 11 06 315 17 355 035 13 22 02 05 M. S. E. Mining Share Ave.......................... Acoje Mining ComAntamok Goldfields. . Atok Big Wedge Min­ ing Co..................... Baguio Gold Mining Co............................ Balatoc Mining ComBatong Buhay Gold Benguet Consolidated Coco Grove, Inc........ Consolidated Mines, Inc........................... Hixbar Gold Mining Co............................ Itogon Mining Com-. I.X.l/ Mining ComLepanto Consolidated. Masbate Consolidated Mindanao Mother Lode...................... Paracale G u m a u s San Mauricio Mining Co............................ Surigao Consolidated. Suyoc Consolidated .. United Paracale Min­ ing Co..................... High Low Change Total Sales dp 100 75 00 171 00 152 00 00 100 00 45 00 30 00 .305 .0925 265 2 60 0215 27 17 0525 84 048 34 11 27 355 028 13 27 07 23 1325 2 50 Off 27 0875a Up .035 .0125 483,000 921,500 25 Up .01 450,000 2 60 Up .10 5,600 320 27 00 320 00 27 00 00 36 5 50 80 18 315 25 08S 085 105 00 75 50 0034 50 08 .0035 1.70 .08 Up Off .05 .015 850,000 24,030 205,000 25 15 315 11 245 33 028 .125 COMMERCIAL SHARES High 0215 Up .001 255 Off .005 20 7 27 50 50 50 00 00 50 0525 46 1 30 40 26 50 100 00 94 00 105 50 102 00 16 00 15 00 7 00 6 50 J Bank of the Philippine Central Azucarera de Central Azucarera de la Cariota ............. Central Azucarera del Pilar ..................... Central Azucarera de Tarlac..................... * China Banking Corp.. Filipinas Cia. de SeManila Broadcasting Co............................ Manila Wine Mer­ chants, Inc............. Marsman tk Co., Inc. Marsman Ik Co., Inc. Mayon Metal............. Mayon Metal 7 % Meralco' 6-1 /2 % . 100.00 Metropolitan Insur­ ance Co................... Pampanga Bus Com­ pany ....................... Pasudeco................... Philippine Air Lines Philippine Guaranty Philippine Oil Dev. Philippine Racing Club Inc................. San Miguel Brewery— San Miguel Brewery— 7% pref.................. San Miguel Brewery— 8% pref.................. Universal Insurance & Indemnity.............. Williams Equipment Co.—com................. 7 T—Bond sales reported in 168.00 27.00 Low lf5 Up 0525 Off - Up Off .005 487,000 047 315 25 35 028 .125 Close 138.00 138 90 00b 164.00 164 5.50 • 5.50 . i: .i: 00 00b 00b 27 00 27b 5 50 12 .26 26 13a 100.00 100.1 12a 00 150 00b 26 7 75a 00a 00a 27.50 27.50 27 50 Off Up Off Up on .027 .027 46a 00 96 00 104 00 15 00 00 36.50 40 00 95.00 95 103.00 104 15.00 Over-The-Counter Benguet Exploration...................... Cia. Gral. de Tabacos de Pilipinas 6% bonds..................................... Hawaiian-Philippines....................... Iloilo Warehousing Corp................. Jai Alai Corp, of the Philippines.. Nielson Ik Co., Inc.......................... Palidan Suyoc.................................. Philippine Electrical Manufacturing Co................................................ Philippine Iron Mines, Inc........... Victorias Miling Co., Inc.............. 100.00 100.00 175.00 00 15 00 00 100.00 100.00 175.00 .0025 .07 .002 .02 .005 .03 .002 .005 443,500 20.000 97,000 307,209 48,000 280,000 Change Total Sales Off Off LOO 240 418 Up 6.00 Up Off Off Off 45 85 225 .04 . .00 T 6,000 .000 350 37,550 Up 3.00 Up 1.00 Close P 0.02 100.00 100.00 175.00 31,343 582 165 250 200 12 266 15 Credit By C. W. Muilenburg Manager, Credit &• Collection Department International Harvester Company of Philippines THE Association of Credit Men, Inc. (P.I.) has con­ ducted three quarterly surveys on terms during the calendar year 1951. The result of these surveys indicates that the average standard-terms account has continued to be on a 30-day basis with no noticeable or important changes during the year. Balances in trade ac­ counts have had limited fluctuation. At the beginning of the year, 73.9% of accounts of firms extending credit and reporting to the Association of Credit Men, Inc. were on a 30-day basis, whereas during the last survey this percentage figure was increased to 79.8%. The percentage of cash sales in 1951 has increased slowly but consistently during each quarter and considerably more business in the Philip­ pines has been done on a cash basis in 1951 over 1950. Local producers have been making increased demands for . credit. Several local producers report collections have slowed noticeably in the past few weeks, with collections in Manila slower than in the provinces. Many of these producers now have ample stock and report a virtual end of “scare” or “stock-pile” buying. Customers are now purchasing only wanted or needed commodities. Credit Association: The Ledger Interchange Bureau has received an increasing number of names for ledger-exchange clearances in the past few months. There has been a marked up-swing in these requests from a sufficient variety of firms to suggest an overall upward trend in requests for credit-information, this indicating an increased demand for credit accommoda­ tions. A committee of the Association of Credit Men, Inc. (P.I.) is at present studying revisions and changes in ledger­ interchange forms with the idea of providing more detailed and more pertinent information on account-names cleared. These revisions, when effected, should improve the Asso­ ciation’s services to its members. Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company 1941 Average—16,316,000 KWH 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 42,041,000 38,774,000 42,817,000 39,872,000 41,852,000 38,791,000 44,017,000* 40,657,000 42,616,000** 39,268,000 41,099,000 458,576,000 Total..................................................................................... ••Partially estimated The decrease in output in November was due to the shorter month and three holidays. On Sundays and holidays output is about 15% lower than on ordinary week-days due to the closing of commercial and industrial establishments. 414 November, 1951, output was 3,348,000 kwh, or 8.5% above November, 1950. A new daily record of 1,593,100 kwh was set on November 28, while a new peak load of 111,500 kw was registered on November 19. A supplementary agreement was signed with the National Power Corporation on November 20 providing additional capacity of 8,500 kw from that Company’s Calirava Hydro-Station. Heavy rains in November filled th'? Caliraya and Lumot reservoirs. Building Construction By Juan J. Carlos President, United Construction Co. &• Contractors' Syndicate No. 2 DURING the month of October, the Office of the City Engineer approved building permits for construction work amounting to P4,465,040. For the same period last year, the volume of work authorized amounted to P3,380,110, in comparison with 035,115 in 1949 and P5,282,950 in 1948. Among the big projects that were started during the month under review were: Yu Chu 8b Co. bodega at Cristobal, Paco, estimated at P300.000. A two-story annex to the Northern Motors, Inc. at Marquez de Comillas, corner Isaac Peral, costing P270.000. A four-story office building at 322 Asuncion, San Nicolas, for Carlos L. Kalaw, estimated at P250.000. La Consolacion College at 260 San Rafael, additional classrooms, costing P250.000.00. Addition to the La Concordia College Hall, 2487 Herran, Sta. Ana, estimated at P180.000. F. E. Zuellig Inc. warehouse at Tanque, Paco, estimated at P200,000. Prices of essential building items were firm and business in general was dull due to the rainy season. The price of galvanized-iron sheets, which is the barometer of prices, was steady at P8.80 per sheet. This is almost equal to the replacement cost. Plans for the much awaited Veterans’ Hospital project were finally released by the Philippine Department of National Defense and builders and suppliers are now busy preparing estimates for the work. As approved by the U. S. Veterans Administration, the hospital will be situated on a 54 hectare lot in Quezon City.- There will be 27 buildings in all. The work called for in the invitation to bids includes not only the construction of the edifices but also the con­ struction of roads and the supply and installation of all the equipment and machinery necessary for the functioning of a hospital complete, including laundry equipment, boilers, refrigerating units, a fire-alarm system, ranges, refrigerators, generating plants, and even streetlight posts. The complete project is roughly estimated to cost P30,000,000, which will make it the biggest single project ever undertaken in the Philippines. According to information received, the Contractors” Syndicate No. 2 is the only local company preparing to bid for the construction work. 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 November numbered 457, with a total value of P5,008,804, as compared with 640, with a total value of P5,316,966, registered during the preceding month of October. Of the November sales, 122 with a total value of P2,146,210, represented deals within Manila proper, while 335, with a total value of P2,862,594, were sales within the cities of Quezon and Pasay, and in the suburban towns of Caloocan, Makati, Malabon, Mandaluyong, Paranaque, and San Juan. Among the bigger sales registered during the month were: A tract of 8,333.90 square meters at Cabildo, Maestranza, and Almacenes streets, Intramuros, sold by Philippine Building Corpora­ tion to Eugenio Lopez for the reported sum of P307.125: The transfer at a consideration of P240.000 of several lots in Man­ daluyong by Maria Suarez to the corporate name, Suarez Estate, Inc.; A property with a lot of 228.4 square meters at Sto. Cristo and Aceyteros streets, San Nicolas, by Priscilla Estate to Victorio C. Dionisio for P140.000; Several lots in Baclaran sold by the Intestate of Jesus Cuesta to Jose Guevara for P95.000; A property with a lot of 399.8 square meters at Benavides and Magdalena streets, Tondo, sold by Leopoldo Brias to Fernando Chua for P75.000; A property with a lot of 811.4 square meters on Marquez de Co­ millas Street, Ermita, sold by Ambrosio Parino to the International Harvester Company for P67.897; and A property with a lot of 1911 square meters in Baclaran, sold by Elizalde and Company to Rosario Bondoc for P48.650. Real estate mortgages registered in the Greater Manila area during the month numbered 458, with a total value of P9,255,414, as compared with 618, with a total value of Pl0,694,471, registered during the month of October. Of the September total, 171, with a total value of P4,724,705, represented deals within Manila proper, and 287, with a total value of P4,530,709, were deals within the cities of Quezon and Pasay, and in the suburban towns mentioned above. REAL ESTATE SALES (From January to November, 1951) Manila Quezon City Pasay City Suburbs January.. February March.. . April.... May... ‘. June........ July......... August... Sept........ October.. November January.. February. March.. . April.... May........ June........ July......... August... Sept........ October.. November P4,466,475 3,549,050 4,562,104 5,272,052 2,586,055 2,793,341 2,839,423 1,890,113 3,879,750 2,021,905 2,146,210 Pl,267,690 3,775,341 1,698,970 1,178,036 1,394,514 1,435,895 1,066,942 1,986,826 946,647 1,325,274 1,438,478 P743.346 709,598 645,878 487.954 819,779 578.954 497,387 149,318 119,942 652,482 125,130 Pl,453,264 1,411,773 1,814,525 1,738,654 1,505,885 1,793,395 1,697,312 1,295,144 872,029 1,317,305 1,298,986 Total P7,939,775 8,445,762 8,721,477 8,676,696 6,306,233 6,601,585 6,101,064 5,321,401 5,818,368 5,316,966 5,008,804 REAL ESTATE MORTGAGES {From January to November, 1951) P2,105,600 5,636,640 3,817,877 3,140,154 3,753,891 4,215,944 3,233,375 9,413,329 6,110,125 3,868,876 4,724,705 P 490,457 1,106,948 1,373,880 902,932 1,150,614 5,184,350 1,188,026 1,926,098 2,860,320 3,342,480 1,606,980 P272.300 869,100 245.760 188.750 372,032 869,144 351.750 757,300 289.760 682,930 875,858 P1.051,546 1,722,790 1,970,627 1,057,926 1,231,810 1,531,450 1,925,497 3,171,420 2,653,960 2,800,185 2,047,871 P3,919,903 8,334,848 7,408,114 5,289,762 6,508,347 11,800,888 6,696,648 15,268,147 11,914,165 10,694,471 9,255,414 Port of Manila By L. E. Burgett Operations Manager, Luzon Brokerage Company INCOMING cargo for the month of November followed generally the trend of previous months insofar as volume was concerned. Without complete statistics at hand, your correspodent would estimate there was an increase in total volume over the month of October. Noteworthy among imports was the large number of agricultural and mining machinery shipments. Heavy rains hampered operations considerably, both in unloading cargo from ships’ holds and in delivery from the piers to the consignees’ bodegas. Handling of pier cargo has not improved as yet, but the arrival of new modern arrastre equipment from the United States, it is hoped, will result in faster, smoother operation. 415 With a view toward acquainting the business man and general public with certain reforms now in progress in the Customs House, your writer has contacted Mr. Melecio Fabros, Collector of Customs, upon whose shoulders rests the responsibility of the entire Customs organization. Mr. Fabros appears to be keenly aware that general public opinion of Customs operation is not the highest; however, he is earnestly setting about the task of improving the service both for the Government in the collecting of legitimate revenue, and for the importers in providing a faster, easier coursing of documents. Presently, the Customs personnel numbers about the same as pre-war although the volume of trade has increased many times. Provisions are being incorporated in the next Bureau budget recom­ mendations, for increased personnel in some specific depart­ ments. This would aid greatly the general expediting of documents. In the meantime, available employees from other divisions are being shifted temporarily to the Cash and Marine Divisions, where they are most needed. Closer scrutiny of all persons entering the Customs Zone is now being undertaken and only authorized persons are allowed within the pier premises. These measures, if properly supervised, should greatly reduce pier pilferage and help ease the congested condition now prevalent. Since licensed customs brokers handle most of the incoming shipments, their employees are also being screened by Customs on the basis of experience and training as well as educational and moral background. These are factors which contribute to conscientious compliance with Cus­ toms regulations and to speedy and accurate presentation of documents. Mr. Fabros is interested in elevating the standard of service of the customs brokerage representatives as well as the Bureau of Customs, thereby performing a better, faster, more efficient service for the importer as well as the general public. Let us hope that the New Year will bring a general easing of operation of the entire Customs and pier service. Ocean Shipping and Exports By B. B.‘ Tunold Secretary-Manager Associated Steamship Lines TOTAL exports for the month of October of this year showed a small increase over exports during October last year. 115 vessels lifted 332,377 tons of exports during the month, as compared to 290,487 tons lifted by 102 vessels during the same month last year. Commodities which have registered sharp increases over last year’s figures for the same month, are: iron ore from 41,531 to 108,809 tons; kapok seeds from nil to 100 tons, and tobacco from 412 to 831 tons. Exports for October, 1951, as compared with exports during October, 1950, were as follows: October Commodity 1951 1950 Alcohol................................. 67 tons 35 tons Beer, mineral waters........ 42 ” — ” Coconut, desiccated......... 8,965 ” 12,678 ” Coconut oil......................... 8,217 ” 6,858 ” Concentrates, copper....... 8,786 ” 8,956 ” Concentrates, gold............ 427 ” 459 ” Concentrates, lead............ Ill ” — Concentrates, zinc............ 65 ” — Copra.................................... 85,072 ” 75,400 tons Copra cake/meal............... 6,790 ” 6,000 ” Embroideries...................... 362 ” 255 ” Empty cylinders............... 498 ” 362 ” Fish, salted......................... 10 ’ 10 ” Furniture, rattan............... 990 ” 1,526 ” Glycerine............................. 263 ’’ 226 ” Gums, copal........................ 48 ” 77 ” Gums, elemi....................... 33 ” — Hemp.................................... 62,473 bales 82,113 bales Household goods............... 285 tons 468 tons Junk metals........................ 5,004 ” 7,439 ” Kapok................................... 20 ” — Kapok seeds........................ 100 ” — Logs....................................... 19,231,522 bft. 10,165,002 bft. Lumber, sawn.................... 3,400,595 ” 20,560,518 ” Molasses.............................. 5,440 tons 4,203 tons Ores, chrome...................... 24,716 ’’ 23,451 ” Ores, iron............................. 108,809 ” 41,531 ” Rattan, Palasan................ 215 ” 504 ” ' Rope..................................... 365 ” 648 ” Rubber................................. 135 ” 139 ” Shell, shell waste............... 62 ” 146 ” Skins, hides......................... 75 ” 80 ” Sugar cent/raw.................. 9,500 ” 13,662 ” Sugar, refined..................... 449 ” — Tobacco............................... 831 ” 412 ’’ Vegetable oil...................... 22 ” 26 ” Transit cargo...................... 105 ” 10 ” Merchandise, general... . 513 ” 1,381 ” Mining By Nestorio N. Lim, M. E. Secretary, Chamber of Mines of the Philippines THE early history of Philippine mining shows that base metals, like copper, iron, and lead were mined in many places in the Islands. However, due to inac­ cessibility and the low price of the metals in those days, mining was intermittent. The Lepanto Consolidated Mining Company copper mine at Mankayan, Mountain Province, was worked by the early Chinese, then the Spaniards, and later the Americans, but only the high-grade surface ore was taken. Today it is the biggest producer of copper in the Far East. Mining of high-grade iron ore in Bulacan dates back to early Spanish days. It is still being mined today. Manganese was worked to a small extent sporadically. During the First World War, the Philippines was actively mining different base metals, but operation soon ceased after the Armistice was signed and the price of metals became unprofitable. Small production was reported from 1922 to 1930. In the gold booms of 1933 and 1936, manganese, chromite, and iron deposits were also discovered by prospectors, some of which were later explored and devel­ oped by capitalists. In 1934, the base-metal production was only .27% of the total mineral production, but by 1938, it had risen to 11%. In the years 1940 and 1941, the base-metal mineral output reached its peak when the Japanese demand for iron, chromite, manganese, and copper were large. The United States imported chromite, M.T. BASE METAL PRODUCTION OF THE PHILIPPINES M.T. VALUE Refractory. MINERALS VALUE VALUE M.T. VALUE 9:207 C3.110.S03 P 6,722,511 M.T. 416 December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 417 manganese, and copper, lead, and zinc concentrates from the Philippines during those years. The total value of the yearly production of base metals since the production was started in 1933, compared to gold and silver, was as follows: Percent of Total Year Gold and Silver Base Metals Production 1933 ................................................ 1*16,190,785 P 43,095 0.27% 1934 ............................... 23,823,365 101,834 0.43% 1935 ................................................ 31,979,030 1,310,867 4.30% 1936 ................................................ 44,317,556 3,178,667 6.70% 1937 ................................................ 51,211,544 5,282,734 9.40% 1938 ................................................ 64,066,165 7,989,951 11.00% 1939 ................................................ 74,000,914 8,979,107 10 80% 1940 ................................................ 78,458,704 13,148,506 14.30% 1940(10 Mo.).............................. 64,638,835 13,863,329 17.7 % 1946 ................................................ 22,427 929,315 97.6 % 1947 ................................................ 4,623,150 6,722,511 59.2 % 1948 ................................................ 14,515,942 8,450,700 36 8 % 1949 ............................................... 23,375,068 17,038,748 42.1 % 1950 ................................................ 33,709,084 23,194,614 40.8 % 1951 ................................................ The rapid rate of increase in the production of base metals after World War II was due to big demand and the high price of these minerals both in Japan and the United States. The base metal mines have now been rehabilitated, and production is on the up-grade. It can still be increased if more capital will come in and peace and order improves. The most important base metals which are mined today, according to value of production, are copper, iron, chromite, manganese, lead, and zinc. Only high-grade ores of these metals are so far being mined. Low-grade ore of copper, lead, and zinc remains untouched and unex­ plored. Small one-man mines of high-grade copper ore are many and await enterprising young men to go into the production. Small manganese deposits from a few tons to 200 tons, found in many remote places in the Philip­ pines, remain unworked today. There are known iron and chromite deposits which are still untouched on account of their inaccessibility and the poor peace and order condi­ tions in the areas. The Bureau of Mines is continuously finding new de­ posits of base metals as the survey of minerals advances further into the interior. The country is virtually unex­ plored with respect to these metals. The present practice in the mining of base metals is generally by surface methods. However, in copper mines, underground methods are used. All metallurgical chromite ores and about 25% of manganese ores, are mined by underground methods. As the surface mining gets deeper and more difficult, mining companies are switching to underground mining. Surface mining is by the open pit and the benching method, while in underground mining, the square set, cut-and-fill, shrinkage, block-caving, and top-slice mining methods are used. Enormous tonnages of iron, manganese, and chromite have been collected by gathering floats and boulders only. Transportation of ore had been by banca, sled, truck, and rail, but as deposits near the shore lines are becoming exhausted, transportation is getting to be a major problem in the base metal mines. Several big interior iron and chromite deposits are known, but on account of their distance to shipping points and the big initial capital required to build roads, they remain idle. If the Government would only build roads to these potential sources of wealth for the country, it would lighten the initial capitalization efforts that now are necessary and private capital might then be tempted to explore them. Prewar operators of base metals are now expanding their operations to meet the increasing demand for these Vear CITY BANK CEBU: CEBU CITY PAMPANGA: CLARK FIELD THE NATIONAL OF NEW YORK Jirft in World-Wide dSanking Branches in the Philippines MANILA Main Branch: Juan Luna Street Port Area Branch: 13th Street Christmas (greetings Sincere Qood 418 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 raw materials. They are putting up beneficiation plants to treat the low-grade ore that can now be worked at a profit because of the good prices offered. The development of the base-metal mining industry in the Philippines is receiving attention today because of the attractive market, because the initial capital needed is not so big as in the case of the precious-metal mines, and because the average-grade ore can be shipped without the necessity for intricate processes of mill operation. With Government cooperation in whatever is needed to foster the industry and with the gradual improvement of the peace and order situation, it is believed that the base­ metal mining industry in the Philippines could be in the limelight for many years to come. Lumber By Luis J. Reyes Philippine Representative, Penrod, Jurden &> Clark Co. AS compared with the month of September, exports for October registered an increase of over 2,000,000 board feet due mainly to a greater volume of exports to Japan. On the other hand shipments to the United States dropped by some 1,300,000 board feet, which confirms the poor condition of the hardwood market in that country. Japan continues to be the biggest importer of Philip­ pine logs because of the existence in that country of around 120 plywood mills, the products of which are used not only in Japan, but are exported to America, England, and Aus­ tralia, successfully competing with Philippine-made ply­ woods. It is said that these mills are very busy and that they employ skilled male and female workers who receive a relatively lower wage than is paid in the Philippines. This explains why Japanese plywood manufacturers can undersell Philippine producers even when they buy the logs from our country. Of significance is the export of 1,700,476 board feet to England. This country even before the war was a regular importer of Philippine lumber and would have continued importing our wood had its finances not suffered so much during the war. Also to be noted is an increase in the volume of logs and lumber sent to South Africa. As released by the Bureau of Forestry, the lumber and log export figures for the month of October are as follows: Shipper Aguaan Timber Corp. Anakan Lumber LUMBER Deatina t ion Volume Value LOGS Volume Value Co., Inc. Atlantic Gulf de Pacific Co. Barreto & Sons Lumber Japan U. S. A. Japan Canada 326,998 P 69,397.96 Bislig Bay Lumber Co. Bueno V. C. C. Luna Lumber Enterprises Dahican Lumber Indonesia U. S. A. U. S. A. S. Africa Hongkong U. S. A. Japan Japan 1,000 795,265 338,953 201,456 300.00 149,450.36 27,746.66 42,825.20 1,853,229 872,943 1,399,995 49,997 52,494 715,871 1,000,696 599,046 1,216,483 2,618,745 Co. Dee Cho Lumber Co. Findlay Millar Lumber Getz Bros & Gonzalo Puyat Sc . Sons Gulf Lumber Co. Insular Lumber Co., Inc. U. S. A. Guam T.M. Japan S. Africa England Japan Japan U. S. A. S. Africa Hawaii 536,843 18,057 50,110 525,653 383,832 110,342 16,382 129,089.08 4,533.75 10,130.04 136,411.59 99,950.92 33,754.25 4,719.12 P209.575.24 180,107.97 159,135.24 11,749.44 27,850.00 68,635.46 113,325.54 64,443.64 128,462.96 257,985.80 599,967 66,000.00 200,000 21,606.28 479,904 59,195.02 896,125 92,949.56 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 Autocar Kcnwortli Corbitt .Mack Dart Oshkosh Diamond T' I’etcrhilt Euclid Keo Federal Sterling FWI) Walter Hendrickson Ward La France International White C. M. LOVSTED & CO., (MANILA) LTD. 101, 13tli St., Corner Boston, Port Area, Manila—Tel. 3-32-10 Represented by Smith, Bell & Co., Ltd. in Cebu — Iloilo — Bacolod—Duvao—Legaspi December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 419 Johnston Lumber Co. Japan Mafialac EnterMarsman —. elopment Co. Nasipit Lumber North Camarines Lumber Co. North Star Lumber Co. Pama Inc. Pai Asiatic Com­ mercial Co. Reynaldo Lumber Co. Sincere Lumber Co. Sta. Cecilia SawLumber Co. Japan U. S. A. U. S. A. Japan U. S. Japan Japan A. Japan U. S. Japan A. Indonesia Hawaii U. S. A. Japan Tirador. J. J. Japan Western Mindanao Lumber Co. England Woodcraft Works, Ltd. Hongkong 239,059 312,972 49,017 65,848 103,440 70,905 20,000 205,956 62,470.76 59,568.42 15,349.26 14,961.16 21,515.52 16,045.94 37,020.00 27,394.44 TOTALS 300,326 672,972 833,679 907,983 352,108 597,844 595,023 200,000 1.400.07S 1,100,000 1,500,476 28,831.28 69,989.08 69,481.57 94.430.23 36.619.24 50,521.70 59,502.30 25,295.36 174,016.92 101,678.22 330,104.72 ,372.088 1» 1,002,634.43 21,015,981 P2,501,382.77 LUMBER LOCS Destination Volume Value Volume Value Canada.................. 16,382 ? 4,719.12 49,997 P 11,749.44 England................ 1,700,476 351,711.00 Guam, T. M.. .. 18,057 4,533.75 Hawaii.................. 201,247 86,820.19 Hongkong............. 544,909 55,141.10 Indonesia............. 103,440 21,515.52 52,494 27,850.00 Japan.................... 16,423,504 1,722,818.00 South Africa... . 433,942 110,080.96 1,000,696 113,252.54 United States. . . 3,054,111 719,823.79 1,788,814 274,028.79 Totals.................... 4,372,088 Pl,002,634.43 21,015,981 P2,501,382.77 In the local markets wholesale prices remained sta­ tionary at Pl60 for red lauan, Pl50 for apitong, and P145 for white lauan, with some sales reported at P165. It is hoped that prices wall improve with the advent of the dry season and the possible cessation of hostilities in Korea in the near future. Everybody is agreed that reconstruc­ tion in Korea will need big quantities of timber of which Philippines will be an important supplier. Copra and Coconut Oil By Kenneth B. Day Philippine Refining Company, Inc. October 16—November 15 WHAT a discouraging period this turned out to be! In mid-October markets were firm and with upward tendencies. The seasonal production slide was ex­ pected soon, previous years’ experience indicated firm Nov­ ember price levels, and the international picture looked jittery. But what actually happened was the reverse. After a strong start, both copra and coconut oil started to slide at a gradually accelerating rate, and at the end of the period prices were off fully 15%. The main reasons for this were (1) continued bad business and consequent lack of demand in the United States, (2) the absence of support in European markets, (3) unexpectedly high production, and (4) a somewhat more promising international picture. The most important of these was lack of sustained European demand, which, recently, has always sustained the market when signs of American weakness set in. Europe’s buying enthusiasm was tempered by large offerings from soft-currency areas, resulting not only in business but in daily declining quota­ tions. In a nutshell the copra situation was about as follows: Starting with $200 c.i.f. on the Pacific Coast, prices grad­ ually eased off to a low of $170. Business was done all 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 420 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 the way down, sellers who were generally long at the start liquidating their stocks and buying in at lower levels. The European market declined from $230 c.i.f. to $205 or slightly lower, with some trading in limited quantities all the way down. Coconut oil prices, which really form the cart before the horse, reflected the same spread. On the West Coast, tank cars declined from 14/ per lb., f.o.b., to 12/ with only scattering trading. A parcel or two of Philippine bulk oil was sold on the East Coast at 14-1/2/ but thereafter buyers retreated and at the close were showing no interest even at 12-3/4/. Apart from the fact that consumers were well supplied, the East Coast markets suffered from large quan­ tities of unsold oil in storage and reports of substantial shipments afloat, which if they remained unsold, might easily become distressed oil available at bargain prices. Meanwhile Manila resecada prices declined from P35 to P30 with arrivals holding up splendidly. Cebu prices were generally slightly above Manila levels, but Cebu quality was better. Copra meal and expeller cake continued to advance • in view of light supplies and rocketed from $75 per short1 ton c.i.f. West Coast to as high as $85, Philippine sellers following the market and keeping well sold up. These prices made it difficult for Danish buyers to complete their fourth quarter allocations except by exceeding the $90 c.i.f. they paid in early October. Some of the Coast mills which have been handicapped by low ceilings obtained substantial relief in November, which has tended recently to slow up the advancing price parade. /^\ctober shipments of copra and oil made a new high '“'for the year, over 85,000 tons of copra having been exported—slightly more than half of it to Europe—and over 8,200 tons of oil—slightly less than half of it to the United States. In terms of copra these shipments repre­ sented over 98,000 tons. The published statistics follow: Shipments—October, 1951 Copra United States Pacific................................... 28,738 long tons United States Atlantic. . .......................... 1,400 ” ” United States Gulf........................................ 1,505 ” ” Canada/Pacific Coast................................... 1,500 ” ” Japan................................................................... 541 ” Europe.................... 43,088 ” Haifa................................................................... 2,000 ” ’’ Central and South American Ports........ 6,300 ” ’’ Total........................................................... 85,672 long tons Coconut Oil United States Atlantic................................. 4,060 long tons Europe................................................................ 3,353 ” South Africa..................................................... 383 ” ” India.................................................................... 421 ” ” Total........................................................... 8,217 long tons Copra Meal and Cake Honolulu............................................................ 45 long tons Pacific Coast..................................................... 4,445 ” ” Europe................................................................ 2,300 ” ” Total........................................................... 6,790 long tons 't'he question of increased freight rates next year has A hit a snag and is not yet resolved, but some increase is surely forthcoming. Meanwhile European freights were in many cases being shaved by payment in sterling ac­ quired at unofficial rates in free markets by shippers who have access to these markets. vvtith the excise-tax elimination killed in the U.S. ™ House of Representatives, plans are being made to tackle the problem in the Senate Committee early in Jan­ uary by requesting the deletion of Section 22 of HR-5505 thus retaining the tax in its present form. This, we un­ MORE POWER TO THE PHILIPPINES Throughout the world, General Electric has in­ stalled more than 4,500, 000 KVA of water­ wheel-driven gen­ erators! General Electric is proud to have supplied more electrical power to the Philippines through such generators as those shown here. Three G. E. generators with a total KVA of 30,000 installed at Caliraya for the National Power Corporation. The fourth G. E. unit is not shown in this picture. GENERAL ELECTRIC [P.I.], INC. PORT AREA MANILA December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 421 derstand, will be preliminary to a specific bill to be intro­ duced later to do away with the tax altogether. A s the period closed, markets were seemingly resting, with •**less selling interest and buyers looking perhaps a trifle more closely at offerings. The markets have gone down fast and look relatively low. They might be approaching the bottom for this particular turn of the wheel especially because supplies are bound to decrease soon. But funda­ mental conditions in consuming markets have not changed yet, and the present lifelessness can well carry through until the year end. Sellers however will probably be dis­ inclined to go short at present levels. after a good many years of doing this kind of thing, ■^■this article is the last the present writer will contri­ bute to this column. He wishes to thank his readers, if there are such, for their patience, and to the Journal for giving space to his often dry but always conscientious efforts.* ‘Mr.’ Kenneth B. Day retired as President of the Philippine Refining Co., Inc. on December 3. being succeeded by Mr. G. W. E. Barraclough, the former Vice-Pre­ sident. Mr. H. Dean Hellis is the new Vice-President. Mr- Day was elected Chair­ man of the Board of Directors and will continue to serve the firm, both here and in the United States, in an advisory capacity. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from October 15 to November 15, during which the industry was working at approximately 50% capacity and sales in the United States were reported low. There seems to be little improvement in sight for the remainder of the year 1951. The following are the shipments for the month of October: Shippers Pounds Franklin Baker Co................................ 3,038,000 Blue Bar Coconut Company........ 1,404,270* Peter Paul Philippine Corp........... 1,468,000 Red V Coconut Products.............. 2,511,600 Sun-Ripe Coconut Corp.................. 784,310 Standard Coconut Products.......... — Cooperative Coconut Products. . . 433,900 Tabacalera.............................................. — Total for October................... 9,640,080 lbs 'Zamboanga Factory production. Total Blue Bar production.................................... 247.400 lbs. 1.1S6.870 " 1,404,270 lbs. Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines PRESSINGS in October at 65,458 bales were the lowest this year, a decrease of 10,107 bales from the previous month and 10,795 bales from October last year. Davao pressings were 39,187 bales, down 1,103 bales from Sept­ ember and up 201 bales from the corresponding month last year. Production for the 10-month period ended Octo­ ber 31 amounted to 856,066 bales, exceeding by 225,472 bales the production of the corresponding period last year. Indi­ cations at this writing are that November production will probably be slightly under 60,000 bales and to reach the previously estimated output of 1,000,000 bales for this year, December pressings would have to be in the neigh­ borhood of 85,000 bales. Despite the fact that a seasonal BE GOOD TO YOUR OFFICE! We have the right equipment and supplies that are tailor-made to Fit your needs. DROP IN AND LOOK OUR STOCK OVER —OR SEND FOR A REPRESENTATIVE. Distributors in. the Philippines of Aigner Co. Index Tabs, Fold­ ers, Index & Guide Cards Ajax Automatic Time Stamps Arrow Stapling Machines & Staples B & P Blank Books & LooseLeaf Devices Bates Standard Office Aids Boston Pencil Sharpeners Chemco Manifold Onion Skin & Cover Papers Cole Steel Filing Cabinets, Card Boxes & Supplies Dennison Paper Tags, Labels, Crepe Paper, etc. Diamond Inks, Paste, Glue, Mucilage, etc. Dixon Pencils, Wax Crayons, Erasers, Penholders, Lumber Crayons, Tailor’s Crayons Eversharp Pens, Desk Sets, Pencils, Leads Force (Wm. A.) Rubber Stamps & Supplies, Printing & Stenciling Outfits, Daters & Numberers Heyer Duplicators •& Supplies Ideal Stencil Cutting Machines & Supplies LePage’s Paste, Clue, Mu­ cilage, Liquid Solder & Liquid Plastic Ohmer Cash Registers Old Town Office Machine Rib­ bons & Carbon Papers Peco “Protectall” Safes Stewart Co. Rubber Stamp Outfits & Supplies Triner Scales —and many other brands known the world over for quality. 422 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 increase in the production is expected to take place in December, it is highly doubtful that the pressings in the last month of the year will be sufficient to bring the total for 1951 to 1,000,000 bales. The following are the comparative figures for balings for the first 10 months of 1947 through 1951: Balings—January-October Inclusive 1951 1950 1949 1948 1947 Davao................................... 418,688 313,883 179,930 170,693 308,015 Albay, Camarines and Sorsogon.......................... 212,975 147,638 98,243 147,881 210,501 Leyte and Samar............. 143,051 104,459 88,029 93,835 82,808 All other non-Davao.. . . 81,352 64,614 62,598 98,032 77,436 Total bales........................ 856,066 630,594 428,800 510,441 678,760 Exports in October were 70,659 bales, whereof 35,514 bales went to the United States and Canada; 21,653 bales to the United Kingdom and European continent; 10,907 bales to Japan, and the remaining 2,585 bales to various other countries. Total exports for the 10-month period were 928,147 bales, exceeding the pressings by 72,081 bales. The following are the comparative figures for exports for the first 10 months of 1947 through 1951: Expor ts—J a nuary-Oc tober Inclusive 1951 1950 1949 1948 1947 United States and Canada......................... 501 375 323,319 164,510 230,381 456,180 Continental Europe. 137,119 109,074 79,544 91.782 98,791 United Kingdom... 149,826 70,124 31,485 54,870 54,110 Japan........................... 112,206 58,245 87,993 115,301 9,244 South Africa............. 14,150 5,550 3,627 3,157 6,800 China........................... 6,289 11.767 11,809 10,085 4,406 India............................. 5,282 6,730 3,100 1,823 5,150 Korea........................... — 3,100 — — — Australia and New Zealand.......................... 1,900 1,826 1,601 42 4,148 Al! other countries. — 747 80 2,853 1,900 Total bales................. 928,147 590,482 383,749 510,294 640,729 Terminal markets during the period under review— October 16 to November 15—generally ruled quiet and closed weak. In the United States forward sales were difficult to make as manufacturers felt prices will decline further. Nominal quotations at closing were DA I 27-1/2/, DA/JI 27-1/4/, DA G 25-3/4/per lb. landed in New York; down 1/2/ from October 15. The London market opened the period on a firm tone but when shippers began to offer more freely toward end of October, buyers retired and the market closed dull with complete absence of buying interest. Business with Japan was small at reduced prices. In the Philippines prices for Davao grades declined P2.00 per picul while non-Davao grades declined from P2.50 to P4.50, thus narrowing slightly the gap that has existed between these two grades for the past several weeks. With continued weakness in the foreign markets and pro­ duction in the Bicol provinces picking up before long, reaching the usual seasonal peak in February and March, a severe decline in Bicol prices would appear to be in­ evitable. Sugar By S. Jamieson Secretary-Treasurer Philippine Sugar Association THIS review covers the period from November 1 to November 30, inclusive. New York Market. The market for November was quiet. On November 2 the U. S. Department of Agri­ culture liberalized the shipment of Porto Rican over-quota sugar to the world market and the export license restric­ tions on the export of quota refined sugar from the United 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 1 74 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 423 States. The latter was not regarded as particularly im­ portant marketwise; and with the steady decline of prices in the world market, the former, which, if it had come sooner, might have bolstered prices, evidently came too late to help. The price trend during the month was down­ ward. Cuban holders seemed anxious to sell their 1951 excess-quota sugar for early January, 1952, arrival at a discount on the spot price. Hearings on the 1952 United States consumption quota began in Washington on Nov­ ember 29. The United States distribution of raws for the 12 months November, 1950/October, 1951, was 7,797,500 short tons, and the Secretary of Agriculture was directed to use this figure, in conjunction with various other specified factors, as the basis for his determination of the 1952 quota. It is thought that the market will mark time until the 1952 quota is announced. The market opened steady. On November 2, 3,200 tons Cuba, November shipment, were sold at 6/, which was also the spot price. On the 7th, 1,000 tons Philippines, December arrival, and 3,000 tons Cubas, November arrival, were sold at the same price. On the 9th, the tone was firmer and fairly large quantities of Porto Ricos, November ship­ ment, were sold at 6.05/. On the 13th, spot advanced to 6.05/, and next day some prompt Porto Ricos were taken at 6.05/ and 25,000 tons Cubas, early January arrival, at 5.95/. On the 16th, the market was easier; there were sales of parcels of Porto Ricos and Hawaiians, December arrival, at from 5.97/ to 6/ and 15,000 tons Cubas, early January arrival, at 5.85/. On the 19th, spot fell to 5.95/, and the following day 8,200 tons Cubas, early January arrival, were sold at 5.85/. On the 21st, spot was 5.93/, and there were sales of small lots of Porto Ricos and Cubas, December arrival, at from 5.91/ to 5.93/. On the 23rd, spot was 5.90/, and small lots of prompt Porto Ricos were sold at the same price. On the 29th there were sales of 4,000 tons Philippines, January arrival, at 5.80/, and a parcel of Porto Ricos in the same position was sold at the average price for January/February. The market closed with buyers indicating 5.80/ for January arrival. We give below quotations on the New York Sugar Exchange for Contract No. 6 as of November 30, and, for comparison, the peak quotations during the month: Closing Peak quotations quotations. March................................... 5 33i 5 40(5— November 5 May...................................... 5 37 5.43 — ” ’ " July....................................... 5 45 5 48 — September........................... 5.48 5 52 — World market Contract No. November 30 as follows: 4 quotations closed on January, 1952............... 4 87f March.............................. 4 84 May.......... 4 83 July................................... 4.83 September....................... 4 84 October .. 4 84 The world market spot price on November 30 was 4.80/, as compared with 5.15/ on October 31. The premium which sugar has commanded for many months in the world market may now be said to have disappeared. Cuban sales in the world market during the month included the following: To Holland—9,500' tons, * November December shipment, at 4.75(5 f.a.s. Germany—68,000 tons, December/January February shipment, at from 4.70(5 to 4.75p f.o.b. Cuba France—a cargo (quantity not stated) at 4.70(5 United Kingdom—50,000 tons, January/April shipment, at 5(5 f.a.s. and lower Belgium—10,000 tons, January shipment, at 4,80(5 f.o.b. Havana Japan—5,000 tons refined at $6.30 f.a.s. Cuba. Local Market, (a) Domestic Sugar. During the first half of the month dealers bought moderate quantities PACIFIC MERCHMDIM (01! P 0 R1T 10 JI 4-19 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 424 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 of new-crop domestic sugar at P13.75 per picul for centri­ fugal, and P15.50 to P16.50 for washed, ex mill ware­ house. The market then became firmer and closed with dealers offering P14.50 for centrifugal and P16.50 to P17.50 for washed. (b) Export Sugar. While producers continued vigo­ rously to protest the authorization of shipments of export sugar to countries other than the United States, the situa­ tion at the end of.the month was still obscure. Throughout the month the parties interested in such shipments, evidently confident that permits would be granted, producers’ protests notwithstanding, offered a premium for prompt deliveries, their prices being from P13.30 to P13.35 per picul, ex mill warehouse, Silay basis, as against Pl2.95 to P13.15 offered for shipment to the United States. It is rumored that approximately 15,000 tons have been contracted by those buyers, and that the small premium paid by them for the sugar is only a fraction of the profit that would be made if their proposed deal were consummated. Producers are said to be considering the filing of a test case in court to determine the legality of sugar being taken from the United States quota sugar for shipment to other countries. General. World Production. Willett & Gray’s pre­ liminary estimate of the 1951/52 sugar crops of the world is 36,404,175 long tons, as compared with 36,196,841 long tons for 1950/51. Formosa. The estimate of the 1951/52 Formosan crop has been reduced from 700,000 tons to 550,000 tops, of which approximately 100,000 tons will be used locally and 300,000 tons probably taken by Japan. Porto Rico. In spite of the increase of 170,000 tons in its United States quota, commencing in 1953, Porto Rico is considering restricting the 1952, 53 crop, as present indications are that there will be a carry-over of about 380,000 tons at the end of 1952. Tobacco By Luis A. Pujalte Secretary-Treasurer Manila Tobacco Association, Inc. I AM placing aside the article I had prepared for this month’s issue as I have just finished reading the Western Tobacco Journal of November 6, 1951, and found a very interesting article on Philippine tobacco, which I quote: “REPORT ON TOBACCO SITUATION IN THE PHILIPPINES BY GEORGE VAN DYNE Marketing Specialist “VyT’ashington, d.c.—Tobacco has always been of great importance to the economy of the Philippines The pattern of the country’s tobacco industry since the outbreak of World War II has changed tremendously with exports on a greatly reduced level and imports increasing greatly. “Exports of unmanufactured tobacco were only 8.1 million pounds in 1950 as compared with the prewar (1935-39) annual average of 37 3 million pounds. Exports of cigars were at an all-time low of 2.1 million pieces in 1950 as compared with the prewar annual average of 202 million pieces. “Exports of cigarettes practically disappeared in 1950, totalling only 14,000 pieces, while exports of smoking tobacco completely disap­ peared. In the prewar period, exports of cigarettes averaged 37.3 million pieces and smoking tobacco 6.2 million pounds. This loss of overseas trade is attributed principally to the closing of European markets during the war, the shift in consumer preference from cigars and dark cigarettes to bright cigarettes, and the shortage of foreign exchange. “Important changes also occurred during the post-World War II period in the Philippines import trade, affecting both unmanufactured and manufactured tobacco. Imports of the former jumped from 96,000 pounds in 1940 to 793,000 pounds in 1949 and to the record level of 28.8 million pounds in 1950. “Cigarettes, the country’s Number One imported manufactured tobacco product, declined most significantly from 11.1 billion pieces in 1948 to 8.3 billion pieces in 1949 and 2.3 billion pieces in 1950. These KEEP YOUR ENGINE HUMMING MERRILY.. CALTEX RRAf THE PREMIUM MOTOR OIL With CALTEX RPM The Pre­ mium Motor Oil, sludge and carbon vanish, your engine runs smoothly with new surg­ ing power giving you greater savings in oil and gas. . . fewer costly repairs. CALTEX RPM The Premium Motor Oil does a double job of cleansing and lubricating to put new life in old motors, perk up new ones. Ask today for CALTEX RPM The Premium Motor Oil —the best motor oil your money can buy! . . CLEANS AS IT LUBRICATES .' December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 425 changes were greatly influenced by Government controls, rumors of restrictions, and clandestine trade. As of June 1, 1951, stocks of imported cigarettes and leaf tobacco were very low. “The substantial increase in the country’s manufacture of cigaret­ tes is of special significance. Total output from licensed factories in the Manila area rose from an annual prewar (1935-39) average of 3.1 billion pieces to attain a record level of about 7.6 billion pieces in 1950. This was due primarily to import restrictions imposed by the Govern­ ment to foster domestic manufacture. “The emphasis now being placed by Government and trade on expanded production of leaf tobacco is also important. Total produc­ tion of all types of leaf tobacco during the 1950-51 season is estimated at 62 million pounds compared with an annual average of 74.8 million pounds in the prewar period, but well informed circles believe that the 1953-54 crop will reach the prewar level and that the bulk of this in­ crease will be in Virginia type flue-cured tobacco, production of which for the 1950-51 crop is estimated at 1 million pounds. “Prices, c.i.f., Manila for domestic Virginia-type leaf from the 194950 crop ranged from the equivalent of 5 U.S. cents to 40 U.S. cents per pound. Prices for best Isabela and Cagayan filler leaf from the 1949-50 crop averaged 43 and 36 U. S. cents per pound, respectively. “Leaf tobacco was first introduced in the Philippine Islands from Mexico during the last quarter of the sixteenth century. It was first grown successfully in the Cagayan Valley in Northern Luzon. Originally the only tobacco cultivated commercially was dark cigar-filler, which was utilized in the manufacture of cigars and cigarettes. “During the 100-year regime of the tobacco monopoly, which was abolished in 1882, sun-cured and air-cured wrapper, in addition to filler tobacco, was produced successfully. During United States Governmental administration good results were obtained in the culti­ vation of new cigar types, especially from seed originating in the United States and the Netherlands East Indies, and of cigarette varieties from the United States, Turkey, and Russia. “During World War II, the Japanese in the Philippines fluc-cured small quantities of Virginia typed tobacco which was grown from seed produced in Japan and Formosa. The best ever produced commercially in the Philippines was grown during the 1949-50 season. “Attempts to grow Burley tobacco have not as yet been very successful, but small quantities of this and Oriental cigarette varieties are grown, and the tempo of experiments and production is being ac­ celerated.” Imports By S. ScHMELKES Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units: Commodities Automotive (Total)............................... Automobiles......................................... Auto Accessories................................ Auto Parts............................................ Bicycles................................................. Trucks.................................................... Truck Chassis..................................... Truck Parts......................................... Building Materials (Total)................. Board, Fibre........................................ Cement.................................................. Glass, Window................................... Gypsum................................................. Chemicals (Total).................................. Caustic Soda....................................... Explosives (Total)................................. Firearms (Total).................................... Ammunition......................................... Hardware (Total)................................... Household (Total)................................. Machinery (Total)............................... Metals (Total)........................................ Petroleum Products (Total)............... Radios (Total)........................................ Rubber Goods (Total)......................... October. 1951 2,428,912 371,241 3,857 482,292 7,369 537,547 153,487 7,726,969 6,842 3,351,457 641,311 22,680 9,267,735 791,199 5,601 4,300 5,262,492 1,167,422 2,767,112 5,310,486 73,347,303 32,306 1,207,024 October. 1950 8.04,210 153,352 318 217,293 14,689 9,970 147,071 27,301 3,836,010 43,171 30,746 275,634 1,124,920 6,744,421 296,404 2.972 2,180 4,468,063 854,845 1,106,453 8,727,174 78,532,485 30,364 655,810 Beverages, Misc. Alcoholic................. Foodstuffs (Total Kilos)...................... Foodstuffs, Fresh (Total)................... Apples.................................................... Oranges.................................................. Onions.................................................... Potatoes................................................. Foodstuffs, Dry Packaged (Total).. ...WITH ALL THE BIST FEATURES. AND BEAUTY 0fALLOTH^JI^amiDrNTOONl' Where top efficiency is required in the daily ope­ ration of a business office, R. 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FAST, EFFORTLESS TYPING • BETTER LOOKING WORK SIMPLE PAPER ADJUSTMENT • EASY TO CLEAN 6,245 7.261 35,451,483 17,099,957 135,966 187,564 26,006 32,935 21,331 25,084 23,388 54,663 11,275 17,298 20,363 21,268 Available in 11", IV, 18", 22" and 26" Carriages. 800 nASAIARISAS PHONE: 3-88-71 426 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 IMPORTERS EXPORTERS Keep Your Costs Down — Use Pasig River Bodegas GENERAL BONDED WATERFRONT WAREHOUSES Accessible by WATER or LAND Low Storage and Insurance Rates Foodstuffs, Canned (Total)............... 332,016 361,638 Sardines........................................ 48,779 77,289 Milk, Evaporated........................ 86,285 198,493 Milk, Condensed............................... 34,852 5,562 Foodstuffs, Bulk (Total) . . 661,514 58,656 Rice................................ 81,000 Wheat Flour..................................... 538,844 29,344 Foodstuffs, Preserved (Total) . . . 2,158 160 Bottling, Misc. (Total)...................... 1,612,683 705,481 Cleansing and Laundry (Total) 209,078 710,900 Entertainment Equipment (Total).. 2,684 7,395 I-ivestock-bulbs-seeds (Total). . . 5,466 4,083 Medical (Total)...................................... 621,011 391,825 Musical (Total)............................... 42,517 Office Equipment (Total)................... 66,151 57,509 Office Supplies (Total)........................ 138,635 27,699 Paper (Total)............. 7,370,462 2,933,009 Photographic (Total). . 70,605 29,430 Raw Materials (Total)........................ 105,303 596,268 Sporting Goods (Total). . . 30,344 36,946 Stationery (Total)............................... 551,555 187,406 Tobacco (Total)............................... 703,606 578,577 Lighterage Service 145 M. de Binondo Tel. 2-63-10 ■ Chucheria (Total).................... 104,552 55,537 Clothing and Apparel (Total). 138,007 338,243 Cosmetics (Total).......... 98,306 155,659 Fabrics (Total).. 1,301,407 577,639 Jewelry (Total)........ 257 146 Leather (Total) .. . 148,826 213,874 Textiles (Total). . . 4,352,350 2,32 7,769 Twine (Total)........... 48,339 28,885 Toys (Total)............................................ 48,404 43,933 General Merchandise (Total)............ 765,849 265,847 Non-Commercial Shipments (Total). 95,005 45,073 Advertising Materials, Etc. (Total). 8,035 27,766 shipments of textiles have been arriving in Manila BHLDWITHJACKBILTBLOCKS Your Answer tn low cost housing ‘-’in greatly increased Quantities during the last few months, interrupting a slump in textile arrivals since early 1950. These arrivals, while quite heavy, still leave the 1951 importation of textiles, 26,198 tons up to November, far lower than 1949, totalling 45,172 tons, but somewhat higher than 1950 shipments totalling 22,317 tons. A great number of new importers are among the con­ signees of the current arrivals. Cotton and rayon piece goods and remnants were the major items imported. Figures below are in metric tons and include all textiles except ready-made clothing: Gives you: Fire Safety Low Upkeep WeatherTiglitness Lifelong Durability Low Insurance Rates Vermin Proofness 1949— 1st quarter............................. 14,244 2nd ” 8,459 3rd ” 8,389 4th ” 14,080 1950— 1st quarter............................. 6,098 2nd ” 4,503 3rd ” 5,512 4th ” 6,204 * 1951— 1st quarter......................... 4,022 2nd ” ............................. 5,013 3rd ” ............................. 8,588 October.................................... 4,352 November............................... 4,223 Sole Distributors NORTON & HARRISON COMPANY 814 ECHAGUE, MANILA Tel: 3-34-11 Tel: 3-34-12 Food Products By C. G. Herdman Director, Trading Division Marsman & Company, Inc. A SURVEY just completed indicates that stocks of eva­ porated milk in the hands of various importers in the Philippines total in excess of 500,000 cases, sufficient to supply the demands of this market until approxi­ mately the end of March, even though further importation during the last 60 days has been very light. The market December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 427 remains badly overstocked and importers holding stocks of the lesser-known brands continue to sell at prices ranging from PIO to P12 a case, which means that such importers are taking a loss of approximately P5 a case on their sale. Arrivals of wheat flour in the recent past have been considerably in excess of consumption. During the last week of October and the month of November, the Import Control Commission, according to information obtained, issued licenses for aproximately 1,700,000 bags which will be arriving during December and early January. Flour stocks at present are ample and flour now on order to arrive should be sufficient to take care of the requirements of the Philippines until the latter part of February. It is under­ stood that the I.C.C. will release about December 15 fur­ ther licenses for another 700,000 bags of flour for January shipment, which would insure ample stocks here up until the latter part of March. Reports from California indicate that the fish pack in California this year will be well below normal. In the Philip­ pines there are very ample stocks on hand of the 15-oz. tall pack in natural sauce and this is selling well below the cost of replacement. Stocks of the 15-oz. oval pack in tomato sauce and the 5-oz. pack sardines are below normal. Unless there is a decided improvement in volume in the California pack during the remainder of the season, it would appear probable that there will be a scarcity of can­ ned fish in the Philippines during the first half of 1952. Ample stocks of canned meat are still on hand in the Philippines. There is, however, a decided shortage of canned fruits and vegetables, also of fresh fuits and vege­ tables both imported and locally grown, and the prices are quite high. With the continued restriction of imports of these items, a constant shortage is to be anticipated. Food-products dealers in general and particularly retailers are complaining of poor business in spite of the approaching holiday season. Sales at this time of the year generaly show a material increase. Poor sales are un­ doubtedly due to decreased buying power coupled with the poor assortment of merchandise available for purchase and the correspondingly high prices being asked for all types of fancy groceries. Textiles By W. V. Saussotte General Manager Neuss, Hesslein Co., Inc. DURING the second week in November the U. S. Department of Agriculture published a forecast for next year’s cotton .crop. October’s estimate was that next year’s crop would be approximately the same as this NEUSS, HESSLEIN & CO, INC. 75 WORTH ST., NEW YORK, N.Y. FOREMOST SUPPLIERS OF TEXTILE FABRICS THROUGHOUT THE WORLD for 86 years and FOREMOST SUPPLIERS OF TEXTILES TO THE PHILIPPINES FOR 51 YEARS. ♦ -------------------------- MANILA OFFICE:--------------------------209 ROSARIO ST. MANILA PHONE 2-97-31 Cable Address “N El I ESCO” • FAUST SUITINGS • CARABELA • FLATTERY PRINTS CHAMBRAYS • WALDORF PERCALES • COMMANDER • SEINE TWINE BROADCLOTH & YARNS • COTTON & RAYON • AGUILA DENIMS POUND-GOODS DAVE IIABVEY Painting and Contracting No job loo BIG No job loo SMALL 920 M. II. DEL PILAR TEL. 5-14-17 ^04*4 JtecMi Is Our Business! ¥ ... And it is the most important part of our business. Whenever you present a prescription at our counter, your health is in our hands. To usz that little slip of paper is a sacred trust. Filling that written order precisely is our prime* responsibility. With it we are pledged to serve you ... to provide you with the highest calibre of professional service. BOTICA BOIE, Inc. PRESCRIPTION DEPARTMENT ON THE ESCOLTA, MANILA CEBU ILOILO LEGASPI DAVAO 428 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 ★ irzin stevedoring COMPANY, IM. Manila ★ DEPENDABLE IN WAR OR PEACE CATERPILLAR “Caterpillar” diesel engines, tractors, motor graders, and earthmoving equipment played a great role during the last war. Their out­ standing records stem from a rugged simpli­ city of design that leaves little chance of things going wrong. During peace-time, they are equally dependable because back of them stands a factory of high reputation for highquality products. r—KOPPEL—i (PHILIPPINES) BOSTON a 23RD STREETS | N C ■ PORT AREA * TEL. 3-37-53 Branehti: i Bacolod * Iloilo * Cebu * Davao * Cotabato * Zamboanga J year’s crop of 17,266,000 bales. The November forecast, however, indicated that next year’s crop will be approxi­ mately 1,200,000 bales less than the October forecast. As a consequence, the raw cotton market in the United States advanced to the full extent allowed by the Office of Price Stabilization, for four or five days in succession. Prices came within about 1/ of the ceiling of $.4539 per pound. The result was that New York prices on finished cotton goods advanced on an average of about 10%. Some con­ structions advanced only a few points, but others, such as denims, advanced as much as 15%. In response, local prices of some constructions have advanced slightly in comparison with prices which prevailed during September and October. However, the local increase has not been in full sympathy with the increased prices for cotton goods in the United States because arrivals during November continued to be heavy, although they were some 20% less than October’s arrivals. The general level of local cotton-goods prices continues firm. The increase in raw cotton and finished cotton goods in the United States was expected to cause a sympathetic rise in finished rayon goods, but this development has not occurred. Prices for finished rayon goods in the United States remain as they have been during the last three months. Local prices, however, have dropped off slightly, but currently show signs of improvement in anticipation of the seasonal Christmas demand. During November there have been no important announcements by the Import Control Commission affect­ ing textiles. The rules and regulations for the implementa­ tion of Section 13 of Republic Act 650 which were expected to be announced during November, have not yet been published. During November, arrivals from the United States totalled 20,797 packages, a decrease of about 3700 packages in comparison with October arrivals. The arrivals from the United States included 9852 packages of cotton piece goods, 1966 packages of rayon piece goods, representing a decrease of about 3900 packages as regards cottons and an increase of about 400 packages as regards rayons in com­ parison with October arrivals. Included also were 1320 packages of cotton seine twine and wrapping twine and 1477 packages of cotton knitting yarns. Cotton pound goods totalled 3938 packages, while rayon pound goods totalled 250 packages. Arrivals of both types of pound goods were notably less than arrivals during October. Arrivals of all textile items, including made-up goods from countries other than the United States totalled 1201 packages, or about 1600 packages less than October. In­ cluded were 266 packages from China, 261 from Japan, and 674 packages from Europe consisting almost entirely of cotton sewing-thread. Arrivals of Hessian cloth and/or Hessian bags were negligible. Total arrivals from all coun­ tries during the month of November amounted to 21,998 packages, compared with 27,396 packages for October. November’s arrivals are approximately equal to the average annual monthly arrivals of 22,600 packages during 1949. AGENTS BROKERS CHARTERERS TELEPHONES 3-34-20 3-34-29 American Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama Cable Addresst “AMERSHIP” 203 Myers Bldg. Port Area Manila December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 429 Legislation, Executive Orders, and Court Decisions By E. E. Selph Ross, Selph, Carrascoso & Janda Iln a recent decision of the Philippine Supreme Court (Santamaria v. Hongkong Bank Corporation, August 31, 1951) the principle involved was the responsibility of a bank accepting as security for a loan, certificates of stock indorsed in blank or street certificates, without in­ quiring as to the identity of the real owner or the authority of the holder to hypothecate them. The Court held that the bank, which took certain certificates of this character to secure a loan made to a broker who had possession of the certificates as security for the purchase price of other shares under order by the owner of the certificates, was not obliged to make inquiry as to who the owner was or what authority the broker had to dispose of the shares. The owner demanded from the bank the return of the certificates but the bank claimed possession by reason of the pledge by the broker and eventually sold the shares and credited the selling price on the loan of the broker. The Court held that the owner, by reason of her negligence in failing to take any precautions when delivering the certi­ ficates to the broker, was estopped, insofar as the bank was concerned, from disputing the authority of the broker to dispose of the shares. The Court said: “. . . The Bank was not obligated to look beyond the certifi­ cate to ascertain the ownership of the stock at the time it re ceived the same from R. J. Campos & Co., Inc., for it was given to the Bank pursuant to their letter of hypothecation. Even if said certificate had been in the name of the plaintiff, but indorsed in blank, the Bank would still have been justified in believing that R. J. Campos & Co. Inc. had title thereto for the reason that it is a well-known prac­ tice that a certificate of stock, indorsed in blank, is deemed quasi nego­ tiable, and as such the transferee thereof is justified in believing that it belongs to the holder and transferer (Heyman v. Hamilton National Bank, 266 S.W. 1043; Fletcher, Cyclopedia of Corporations, Vol. 12, pp. 521-524, 525-527; McNeil v. Tenth National Bank, 7 Am. Rep. 341).” (Italics supplied) There is a dissenting opinion in which the principle is advanced that inasmuch as the broker was found guilty of estafa for having disposed of the certificate without authority, that the pledge w^s null and void; that despite the fact that the owner claimed on the bank the next day after the pledge was made, the bank having had a new certi­ ficate issued in the name of its nominee and having retained it until it lost practically all value in the market, that the bank should reimburse the owner in the amount of the market value thereof at the time the certificate was delivered to the bank. y A recent decision of the Court of First Instance awarding a considerable amount for overtime and Sunday and holiday work by employees hired on a monthly basis, indicates that employers should review and probably revise their position in that respect. o We also wish to call attention to the fact that the special quota for entry of United States citizens prescribed in the Bell Act and the executive agreement made pursuant thereto, will expire on December 31, 1951. The entry of United States citizens for permanent residence will then be limited by the quota of 50 per year as pre­ scribed by Act 503 of the Philippine Congress. For DRUGS and TOILETRIES Shop at YUCUANSEH DRUG < <>.. INC. “Your favorite Druggists” 436 Dasmariffas, Manila Free delivery, Call Tel. 2-71-19 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 430 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 FOR BETTER SERVICE— Call 3-29-05 ALLIED BROKERAGE CORPORATION Marsman Building Port Area Individual alienlion and competent supervision given lo your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING Cargoliners have heavy lift gear for extra ljeavy cargo. . . Cargocaire dehumidifying systems to protect cargoes subject to damage by moisture. . . radar. . . fire alarm systems throughout all compartments. . . deep tank heating systems to maintain bulk liquid cargoes at correct temperatures. . . pilfer-proof specie chambers and precious cargo lockers. Finest equipment is just one of many reasons why. . . 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 Average number of persons in 1948 All 1 (100) (63.43) | (1L96) Cloth­ ing (2.04) Fuel, Light and Water (7.73) Miscel(14^84) Purchas­ ing Power January........ . 390.7 427.6 453. S1 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.i6 308.1 255.91 .2862 April............. . 354.6 374.1 453.9 209.4 289.7 254.81 .2820 May.............. . 349.8 360.2 453.9> 214. 2 289.7 271.6> .2859 June.............. 354.3 370.4 453.9 205.2 283.2 262.9• .2823 July............... . 356.4 374.2 453.9> 201.3 281.6 262.4 .2806 August......... . 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September. . . 370.6 397.2 453.9) 199. 2 279.6 260.6i .2698 October........ . 374.9 404.0 453.9 204.8 283.2 257.91 .2668 November... . 368.7 394.4 453.9 202. 0 281.6 258.7’ .2712 December... . 365.9 389.9 453.91 202. 0 282.4 258.9 .2732 1949 January........ . 363.8 386.8 453.9 202.i0 279.0 258.9 .2750 February.... . 343.8 355.5 453.9 203 J0 277.5 258.9 .2909 March........... . 345.3 358.2 453.9 202. 0 276.3 258.5i .2896 April............. . 348.7 362.6 453.9 197.6 287.5 257.1 .2868 May........ . 348.8 362.8 453.91 197. 2 287.5 257.1 .2867 June.............. . 349.0 362.9 453.91 203. 9 287.5 257.2I .2865 July............... . 351.7 374.0 453.91 194. 2 265.8 240.5 .2844 August......... . 337.5 351.2 453.9I 196.3 266.6 241.2! .2963 September. . . 333.6 345.1 453.91 190.3 264.8 243.1. .2998 October .... . 332.9 343.3 453.9 199.!9 264.8 245.0 .3004 November... . 339 6 356.1 453.9 191. 1 258 4 239.8 .2945 December . . . 329.6 335.9 453.9 202.9 259.5 256.2 .3035 1950 January .'... 332.3 336.8 453.9 238.0 253.1 269.31 .3010 February.. . . 336.9 340.2 453.9 233.3 257.8 284.1 .2969 March........... 339.0 341.4 453.9 236.7 257.8 292.6i .2950 April.............. 331.8 328.6 453.9 237.'7 252.9 301.2I .3015 May................ 320.2 308.6 453.9 244.'7 249.7 309.1 .3123 June.............. . 323.1 310.9 453. S) 243.!5 249.7 319.1 .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......... 352.8 351.1 453.9 337.3 249.7 334.5i .2835 November ... . 354.1 353.2 453.9 322.13 249.7 335.9I .2825 December. . . . 352.2 350.5 453.9 325.!2 249.7 334.81 .2839 1951 January......... 355.2 355.0 453.9 331.! 249.7 334.6i .2816 February.... 358.4 359.8 453.9 342.11 249.7 334.4 . 2790 March........... 352.4 349.3 453.9 379.4 248.8 334.31 .2838 April............... 361.2 362.6 453.9 398 J5 247.5 334.7 .2769 May............... 365.0 367.0 453.9 410.4 247.5 339.5i .2740 June............... 367.8 372.0 453.9 399.!5 247.5 337.7’ .2719 July............... 366 3 370.1 453.9 382.0 247.5 339.0 .2730 August........... 365.1 371.4 453.9 354. () 247.5 329.1 .2739 September. . . 363.0 369.0 453.9 356.4 247.5 325.4 .2755 October .... . 358.1 361.1 453.91 350.4 247.5 326.7 .2793 November. . . 351.1 351.1 453.91 343.8 247.5 323.3 .2848 = 4.9 members. *For explanatory note, see the August Journal. It Pays You Well To Ship A.P.L. MARY BACIIRACII BLDG. Tel. 3-32-81 AMERICAN PRESIDENT LINES Your American Hotel Abroad 25th Street, Port Area MOTOR SERVICE CO, It. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area Tel. 3-36-21 December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 431 The “LET YOUR HAIR DOWN’’ ==------ —= Column A day or so after Ambassador and Mrs. Cowen left the Philip­ pines, the Ambassador’s former secre­ tary called up Mrs. Willimont (who then was still with us) about sending the Journal to him at his Washing­ ton address. She said that the Am­ bassador had said that the Journal was one Manila publication he wanted to continue to read. Here is an exchange of amenities between Col. John F. Daye, Secre­ tary of the Philippine American Chamber of Commerce in New York, and the Journal editor. The editor recently wrote the Colonel as follows: “Dear Colonel Daye, “We have just received your $5 check for a renewal of your subscription to the Journal, but Mrs. Willimont told me that she thinks we should not charge such a good and helpful friend as you are for sending the Journal to you, and I entirely agree with her. As a matter of fact, we realized only recently that we should have sent the New York Chamber more complimentary copies than we have been doing and Mr. Parrish has asked us to put all the directors of your Chamber on our complimentary list,—which we have now done. It was an oversight that this was not done long ago. We are returning your check to you as a small token of our appreciation of your many courtesies to us...” Colonel Daye sent the following acknowledgment: “Receipt is acknowledged of your letter of September 27, returning our check in the amount of $5 covering our subscription to the Journal. Thank you for this action and for sending to us and our Directors complimentary copies of the Journal. Your publication is of great value to us as we frequently find in it just what we are looking for, and we know of no other source where we can find such accurate information on all matters pertaining to trade with the Philip­ pines. You are doing a splendid job...” Our sending the Journal to the various directors of the New York Chamber, led to at least one complica­ tion. The Manager of a Manila bank called us on the telephone recently and said that he had received a letter from one of these men, an officer of the head bank in New York, to the effect that he was now getting three copies each month of the Journal and that he did not need that many. A check-up showed that besides the copy we were now sending PHOTOSTATS o[ anything written! COPYCAT Call for Messenger Pick-up and Delivery Service Tel. 2-67-50 or 2-70-79 2nd Floor EL IIOGAR FILIPINO BLDG. No. 19 Juan Luna, Manila 432 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 him personally, the bank in New York was a paying subscriber and the Manila branch was sending him another paid-for copy each month. Mr. Herbert K. May, Treasury Attache, American Embassy, Manila, wrote the editor: *' This is to thank .you belatedly for your kindness in putting me on the mailing list to receive monthly the American Chamber of Commerce Journal. The Journal is, of course, very helpful to me in the perform­ ance of my official responsibilities. “As I told you when I had the pleasure of speaking with you in my office a few weeks ago, I hope you will feel perfectly free to call upon me if I can help you or the Chamber of Commerce in any way at all.” An appreciative and appreciated letter from Mildred Hughes, Ex­ ecutive Vice-President of the Far East-America Council of Commerce and Industry, Inc., 30 Rockefeller Plaza, New York, was just received by the editor: “We are enclosing our check in the amount of $5.00 covering the subscription rate to the American Chamber of Commerce Journal. “We recently had several issues of the Journal forwarded to us by Council mem­ bers in Manila. We have read the Journal with interest and appreciation.” We note that the resume of the minutes of the November meeting of the Association of Credit Men, Inc. (P.I.) contained the following reference to the Journal: " The President pointed out that the usual monthly article on credit in the American Chamber of Commerce Journal has not appeared during the last couple of months and undertook to look into the resumption of this article.” That, friends, shows how the reg­ ular Journal column articles are missed by businessmen when, for any reason, they do not appear as usual. The reason in this case is that there were certain comings and goings during the last few months among the men who usually write for the column, and no “copy” was sent us. We are informed that Mr. C. W. Muilenburg, of the International Har­ vester Company, will take the column over again from Mr. W. J. Nichols, of the General Electric Company, who handled it last. TODAYS modern, smart home owner demands two qualities above all from any home furnishing or accessory: it must render perfect service. . . and it must add charm and beauty to her home. That's why in most modern homes today, Lifetime graces more windows than any other Venetian blind. Glamorous, smooth-operat­ ing Lifetime Venetians can be installed in either wood. . . regular , metal and wood. . . or in the finest all-metal Venetian available today. In any color or size—with co­ lored cords and tapes to match or contrast. With cornice for window ele­ gance—plus exclusive LEVOLOR self-adjust­ ing tilter. C7 □ VENETIAN a I Cull 5-42-74, or Write P. O. Box 285, Manila, For Free Estimates CADWALLADER PACIFIC COMPANY 337 Perez Street, Manila Borromeo Street, Cebu City “rpELL us, what makes a trade balance balance? Who or what ba­ lances it?” “Eh?” “Yes, and if there is such a balance, how can we speak of it as being either favorable or unfavorable?” “Well...” “The teacher says that a favorable balance of trade results when we export more than we import. I don’t understand that. It seems to me if we send out more than comes in, we lose. That should be called an un­ favorable balance, if it can be called a balance at all.” “You’re right there. That would not be a balance at all and would be unfavorable. No country could keep that up very long. Fortunately, in practice, that can happen but rarely; probably only during war­ time looting. Didn’t your teacher tell you about the ‘invisible items’ that must be added to one or both sides to show that a real equilibrium always exist?” “Yes, but I didn’t understand it.” “It’s not hard to understand. If we send out more in export com­ modities than we receive in import commodities, then, since we always receive a price for our exports, the difference is made up in credits, in money, in capital which we receive. If, on the other hand, we import more than we export in commodities and merchandise, then we must send out the money in payment.” “Who orders that? Who manages it? Couldn’t mistakes be made so we end up badly out of balance?” “No, it is a largely automatic, self-adjusting thing. It all comes down from the fact that international trade is really international barter, international exchange. We exchange what we have surplusses of for what other countries have surplusses of. December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 433 All countries profit thereby. The international trade of any country involves thousands and hundreds of thousands of separate transactions, large and small, but each trader sells and buys and buys and sells, and no one can, for very long, buy what he can not pay for or sell what he can net get pay for. In the long run, no man or country, or the world as a whole, can consume more than is produced, spend more than is earned. You put so much into anything, and you can’t take any more than that out. There is nothing in this world that comes from nothing. A country can not buy for any length of time, and not sell; nor sell if it does not buy. Trade is always a two-way affair; there must be mutual ad­ vantage, mutual satisfaction. “Now as to the so-called ‘favor­ able’ and ‘unfavorable’ trade, the ‘visible’ trade, that is. Those ex­ pressions are misleading. Honest trade is always favorable to both parties. But underdeveloped coun­ tries generally export more than they import in the way of commodi­ ties and merchandise, and this is considered ‘favorable’ because they do not need more commodity imports so much as more credits, more capital to further their economic develop­ ment. Such countries especially should not spend all they earn in buying consumption goods but should encourage saving and investment.’’ “Yau said that our foreign trade is balanced automatically. But what about government import and export controls? Do not such controls upset the balance?” “Let me answer Yes and No to that. The government can arbitrarily curtail either imports or exports or both, or certain groups of items of one or the other or both, but what­ ever the government does, the over­ all balance can not be upset, for this is beyond the government’s control. There must always be a balance, as I have explained. The government can curtail certain im­ ports, so as to bring in more credits instead, but there are limits to this, for if other countries can not send us their goods in exchange for our goods, and have to credit us instead, sending us money and capital, they may not be able to do this or may not wish to do this, and they will buy else­ where. So a severe curtailment of imports in the long run will mean a curtailment of exports. “The effects of such interference are sometimes quite unexpected and startling, as when exporters find it difficult to get ships to carry their cargoes because fewer ships carrying imports are arriving. Naturally, ship­ owners want to carry cargoes both ways and not send their ships empty just to pick up a cargo at some dis­ tant point. That has been happening in the Philippines recently. “It’s always interesting to watch the operation of cause and effect in such cases, action and reaction. Re­ member that your physics taught you that action and reaction are always equal. We press down here, and something pops up there, and if we put our hand on one pan of the scale, somebody else puts his hand on the other. It’s a wonderful thing!” A Merry Christmas And A Happy New Year To All Our Customers And Friends LINK-BELT also— BEARINGS Ball, roller and babbitted bearings are available from the outstanding LinkBelt line. Unique design plus precision manufacture, combine to give them de­ pendable, economical, job-proved service. Complete line of mounted and unmount­ ed bearings to meet all requirements. OTHER LINK-BELT PRODUCTS INCLUDE: Shaft Couplings and Col­ lars... Clutches... Speed Reducers and Increasers... Variable Speed Chan­ gers ... Conveyors of various types, etc. Let us figure your needs. Exclusive Representatives for Link-Belt Co., U.S.A. THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Telephone: 3-35-41 1’. O. Box 282 /t*he editor recently had occasion to write Mr. N. N. Lim, who edits the Journal “Mining” column, the following letter: “Dear Mr. Lim, “Mr. Llaguno told me just now that you had asked him whether I am short-sighted because on a number of occasions I have failed to respond to your greeting on the street. I am obliged to you for thinking that is the explanation; in fact, I am some­ what short-sighted, although an abstraction I am liable to may also have some part in my failing to recognize people though I may be looking straight at them. Certainly, I hope that you never thought even for a moment that I could deliberately ignore a kind greeting from anyone, let alone a man like yourself. Your inquiry, nevertheless, Chains and Sprockets 'Die line includes chains of all types —Silent, Roller, Malleable Iron, Promal, Steel and other alloys—in scores of standard sizes with a wide range of attach­ ment styles, in­ cluding sprockets for every mechan­ ical power trans­ mission and con­ veying service. Branch Office at Bacolod, Oec. Negros 434 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 gives me a feeling of distinct uneasiness. How many people have I thus passed and possibly offended, although nothing could be further from my intention? “Next time such a thing happens, Mr. Lim, just please give me a friendly sock in the jaw. Very sincerely yours, etc.” “That goes for everybody,” said the editor, handing us a copy of his letter. We read it. “How do you know,” we asked,' “that you will not arrive here, the next time you have been out, bruised black and blue?” “That’s a chance I’ve got to take,” he answered. “Why don’t you,” we said, “just suggest that your friends yell at you or grab you by the arm, or something like that?” “Nope,” he said, “if I am seen walking of extra the B. F. Goodrich Recap Plant the equipment the training, the B. F. GOODRICH RECAP 205 Rizal Ave. Ext. PLANT Grace Park, Caloocan The Tel.: 2-72-23 men at have knowledge and the materials to do treading jobs of superior quality that will produce new highs in performance and new lows in cost per mile of tire operation. Goodrich International Rubber Co. 13th and Atlanta Sts. Port Area MANILA TEL.: 3-37-21 around in a daze, I want to be waked up. . . and if, possibly, I am dete­ riorating to such an extent that I am forgetting the faces of my friends, I’d take it as a great kindness to be reminded of them in the way I have mentioned. I feel I’ve got it coming to me.” “Yeh,” said we, “that’s what we are afraid of, and, goodness, what would we do if you were laid up? What would we do without you?” “Don’t sneer, dear,” he said. “I am no Mrs. Willimont. Anyway, I don’t think I have so many friends anymore... And if any­ one socked me too hard, I could always sock back, couldn’t I?” “You think of everything,” we said. Safety " ticket your_______ to thousand^----Here, Eugenio Galvez, at our Manila Recap Plunt lakes you through some more processes of expert B. F. Good­ rich recapping. When u lire is inserted in a mold, the center of the tread around its entire circumference must match per­ fectly in alignment with the center of tWte matrix. Otherwise a “lopsided” tire will result. Clamps must be lightened uniformly, a little bit at a lime, all lhe way around. Curing is accomplished by heat from outside and pressure inside. Steam from the boiler moves through the chamber of the mold and heats the matrices. The new tread rubber is forced against the hot matrix by air pressure in the curing tu.be inside the tire. Temperature and air pressure arc con­ trolled within rigid limits to meet factory specifications of the lire manu­ facturer. Philippine Safety Council By Frank S. Tenny Founder and Executive Director CURRENT activities of the Council are most intensive and lean toward attention to public safety matters. Some of the projects now under­ way include (1) actual plans for the first “National Safety Week” in the Philippines, (2) presentation of the report by the P.S.C. Ship Safety Survey Committee, particularly re­ garding safety factors of interisland shipping, (3) aggressive action in con­ nection with overcrowding of stand­ ing-room in local theaters, (4) research into the “right-of-way” rules now in effect, with recommendations for remedial legislation where needed, (5) attempts to have set aside some E.C.A. funds for purposes of public safety, and (6) conducting an in­ tensive radio-newspaper publicity campaign in connection with preven­ tion of Christmas and New Year’s accidents. The Council’s new payroll-delivery service is proving successful and has attracted new clients. The safety­ security factors in connection with the recent inauguration of the Col­ gate-Palmolive Philippines plant in Makati were coordinated by the Council. Inspection trips on safety matters have recently been made to Nasugbu (San Pedro Sugar Central), Camarines Norte (Philippine Iron Mines) and Dagupan (PANTRANCO). The Executive Director deli­ vered five lectures as guest instructor at the N.B.I. Police Academy and participated in the graduation cere­ mony. A speech calling attention to the deplorable driving habits of many bus drivers was prepared for delivery to the NALATROA Con­ vention, and called upon the opera­ tors themselves to correct the situa­ tion. A safety inspection trip was made to the U. S. Military Port of Manila by invitation of the Port Commander and included several members of the Council’s technical staff. In general, conditions were found to be good. Letters have been written to local civic, political, and charitable organ­ izations advising them of the hazards presented by placing banners and posters on utility poles. It is hoped to curtail this practice, which has resulted in several bad accidents. Many more activities are underway, setting a new high in Council activity. Somewhat slowly, but surely, the attention of the public is veering toward both public and industrial safety matters. December, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 435 The Government. . . (Continued from page 413) Nov. 27—The Council of State approves (1) acceleration of govern­ ment housing projects in Manila and some of the provinces, (2) acce­ leration of the Maria Cristina hydro-electric power and fertilizer plant projects due for completion end of 1952, (3) further promotion of in­ dustrial and agricultural development and scientific research, (4) revi­ sion of the Tenancy Law, (5) facilitation of public land distribution, and (6) implementation of the law transferring the capital of the Philippmes to Quezon City. Nov. 28—The "President issues Proclamation No. 293 declaring December 10 “Human Rights Day" to commemorate the adoption of the Universal Declaration of Human Rights by the General Assembly of the League of Nations on December 10, 1948. Nov. 29.—The President at a ceremony held in the Rizal Memorial Stadium personally decorates and bestows awards among members of the 10th Battalion Combat Team who distinguished themselves on Korean battlefields. The President issues Proclamation No. 294 declaring the period from November 29 to December 5 “Land Transportation Week”. At a speech delivered before the convention of the National Land Trans­ portation Operators Association, the President urges a more systematic distribution of land transportation facilities, the improvement of the service, and doing away with cut-throat competition. Nov. 30—The President confers with Ambassador Elizalde who leaves on December 1 for Paris as head of the Philippine delegation to the United Nations General Assembly; also with Rep. Diosdado Maca­ pagal who is going to Paris together with Ambassador Elizalde. The President visits a number of cemeteries and shrines in con nection with the observance of National Heroes Day. The Department of Foreign Affairs announces that to promote and strengthen the friendly relations between the Philippines and India, the two governments have agreed to establish diplomatic relations at legation level. Pending the appointment of a Minister, Mr. P. R. S. Mani, presently Consul General of India in Manila, will be charge d’af­ faires ad interim of the Indian Legation, effective December 1. Mr. Jose Moreno, now Acting Consul General of the Philippines at Cal­ cutta. has been designated charge d’affaires ad interim of the Philip­ pine Legation to be established in New Delhi. traveling?? LBC Travel Agency Offers Passport and Visa Clearances Air and Ship ! Reservations j Bank Clearances and , many other services i I AT NO EXTRA COST I LUZON BROKERAGE —COMPANY—I TRAVEL AGENCY • Office 113-115 Dasniarinas ( Telephone 3-34-31 VTTTTTTTT A HAPPY, PROSPEROUS As another new year dawns, Reddy Kilowatt and all of us at MERALCO thank you for the opportunity of serving you during the past year. Our most important job for ’52, as in the past, is to continue working to bring you the kind of good, dependable, low-cost service you can take for granted—and make it even better than before. May 1952 bring happiness to you and yours and peace throughout the world. 436 AMERICAN CHAMBER OF COMMERCE JOURNAL This journal . is one of the best media for advertising addressed to business and plant Managers Editorials . . . (Continued from page 406) that the Pratra recently in line with the above mentioned policy of nationalism has deter­ mined to allocate the import quota of wheat flour exclusively among the new importers, to the complete exclusion of the old im­ porters, under the claim that it has absolute discretion to do so subject only to the restric­ tions that may be imposed by the Chief Excutive. "We are not oblivious of this policy of our Government which is indeed very plausible and should be encouraged to give a break to our countrymen so that they may have greater share in our local trade, business, and commerce in line with the spirit of na­ tionalism underlying our Constitution, but plausible ana patriotic though it may be, such quota policy, should, however, be adopted gradually so as not to cause injustice and discrimination to alien firms or business­ men of long standing in the Philippines and who have been long engaged in this partic­ ular trade thereby contributing with their money and efforts to the economic develop­ ment of our country. In fact, this is the policy that our Congress has set in an un­ mistakable manner in Republic Act No. 426. This is also the policy that our President has expressed in the letter he sent the Pratra relative to the determination of import allocations of wheat flour.* When the Pratra decided to ignore entirely the rights of the old importers, simply because they are aliens, in complete disregard of this policy of our Government, these importers have the right to recur to the sanctuary of justice for redress, for they too are entitled to certain rights under our Constitution. “ ‘Aliens within the state of their residence enjoy certain rights and privileges like those enjoyed by its citizens, such as free access to the courts and the equal protection of the laws. Nor may aliens be deprived of life, liberty, or property without due process of law. Citizens may, of course, be preferred to non-citizens without violating constitu­ tional guaranties. They are excluded from the enjoyment of political rights, such as the right to vote and to hold public office. Other restrictions may be imposed for rea­ sons of public policy and in the exercise of police power (Padilla’s Civil Code, pp. 95-96)’ ’’ • A good Christmas present— "A few poems | and essays” by A. V. JI. Harlendorp At the leading book stores, I C. F. SHARP & COMPANY, INC. STEAMSHIP AGENTS —OPERATORS-SHIP BROKERS GENERAL ORIENTAL AGENTS for WATERMAN STEAMSHIP CORPORATION Mobile. Alabama IVARAN LINES (Far East Service) Oslo PACIFIC ORIENT EXPRESS LINE Oslo - Gothenburg General Agents for GENERAL STEAMSHIP CORPORATION, LTD. San Francisco SIMPSON, SPENCE * YOUNG New York - London Head Office: 5TH FL., INSULAR LIFE BLDG. MANILA, PHILIPPINES TELEPHONES: 2-69-50 2-69-56 2-69-59 Branch Offices: SAN FRANCISCO—SHANGHAI SINGAPORE—PENANG YOKOHAMA—KOBE WKYO—NAGOYA OSAKA—FUSAN (KOREA) Cable Address: "SUG ARCRAFT" all offices EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines BARBER-FERN-VILLE LINES Service to U.S. Atlantic Via Straits, Suez, Mediterranean FERN-VILLE FAR EAST LINES To and From North Atlantic Ports Gulf Ports—Philippines EVERETT ORIENT LINE Serving the Orient Philippines to China, Japan, Korea, Straits and India Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarifias St., Manila Tel. 2-98-46 (Priv. Exch. All Lines) Editorials Index for 1951 Volume XXVII Articles “Achievement” Week................................................................................. 211 Alien Right to Justice................................................................................ 406 Americans, Honors to............................ 110 American Power and American Prestige............................................... 212 Anti-American Pattern in Local Violence, No................................. 108 Britain, The Marshall Plan and........................................................... 3 British Labor Government and The Welfare State, The............ 368 Capital in Production and Trade.......................................................... 36 Capital, “Reactionary” Use of................................................................ 4 Chamber Officers and Board, The New.............................................. 38 Costs to Consumers, Passing on Increased........................................ 36 Cowen re Lawlessness, Chamber letter to Ambassador............... 108 Cowen, Reply of Ambassador.................................................................. 108 Cowen’s Resignation, Ambassador......................................................... 367 “De-Control” Dilemma, The................................................................... 180 Defense Treaties, The Mutual................................................................ 292 Democratic Way, The................................................................................ 329 “East”-"West” Conferences, Success and Failure of.................... 143 Elections, The................................................................................................ 403 Employee Relations, Company- ........................................................... 406 Exchange Remittance Tax, Ilbe 25%.................................................. 6 Filipino Businessmen, Addresses at Baguio Convention of......... 211 Filipino Business Men’s Convention in Baguio, The.................... 142 Foreign Trade, Restrictive Practices in.............................................. 327 Free-Trade Zone in Manila, Ortigas Report on............................... 294 Huk-Communist Propaganda................................................................... 140 Import Control, The E.C.A. Agreement and................................... 181 Import Control, The Growing Damage and Evil of..................... 140 Import Control from the Inside............................................................. 6 Insurance, “Nationalizing"........................................................................ 291 Iran Oil Dispute, The......................... 179 Japan, Reparations from................................................................ 71 Korea, Truman, MacArthur, and.......................................................... 139 Landed Estates Problems, Report of Advisory Committee on.. 181 Los Angeles..................................................................................................... 251 “Mad”, Why the People are.................................................................. 404 Manila Hemp, Foreign Competition with.......................................... 72 Moral Appeals versus Law-Enforcement............................................ 108 Murder, Government by........................................................................... 370 National Foreign Trade Council Statement on the Philippines, The 6 Police Power, Democracy and the........................................................ 370 Poverty, The Causes of Asia’s............................................................... 75 Production and Progress........................................................................... 329 Propaganda, Skill in Argument versus................................................ 252 Quirino’s State of the National Address, President....................... 35 Return to Orthodoxy................................................................................. 406 Roads, Exports, and Foreign Exchange.............................................. 74 School System, 50th Anniversary of the............................................ 404 Sukarno Visit, The...................................................................................... 35 Tax Legislation, The New Foreign Exchange and Corporate In­ come.............................................................................,.............................. 107 Tax, Philippine Tax on United States................................... 251 Taxing the “Rich” and the “Poor”, Mr. Dalupan on................. 38 Urban Land and Housing Problems, Advisory Committee Report on................................................................................................................... 211 Vivaldi, Lay Sermon on............................................................................ 214 Wage Legislation, Minimum.................................................................... 4 Y.M.C.A., American Help to Philippine.............................................. 109 Abaca Plantations, The Truth about the Central America............................... American Association, Brief History of. American and the Japanese “Con­ quests” of the Philippines, The........... Chamber of Commerce of the Philip­ pines, Annual Report of American. . . Chamber of Commerce Annual Report, Philippine-American.............................. Colgate-Palmolive Philippines, Inc........ Commercial Treaties, Status Report Cowen on American Community Policy, Ambassador................................................ Cowen on Philippine Assurance against Aggression, Ambassador........................ Defense Treaty between the Philippines and the United States, Text of the. . Deterrents to Foreign Investment.......... . E. C. A. Aid Described............................ E. C. A. Program, American Note to the Philippines re Broadening of............... Economic Review of the Year (1950). . Economic and Technical Agreement between the United States and the Philippines................................................ Excise Tax on Coconut Oil, The U.S.. . Foreign Policy, Philippine........................ Foreign Trade Statistics, 1950 compared with 1949, Philippine............................. Foreign Trade Statistics, First half of 1951 compared with First Half of 1950............................................................... Free Enterprise, Government and......... Freedom (Poem)........................................... Japan, Correspondence re Reparations from............................................................... Japan, Recommendations re.................... Land Reform................................................. Landed Estates, Government Acquisi­ tion of Large............................................. Landed Estates, More about Govern­ ment Acquisition of Large.................. Landed Estates, Still more about Gov­ ernment Acquisition of Large........... Landed Estates Committee Report, Highlights of.............................................. Law, What are we Fighting For, the. . . Manila Five Years Ago............................ Monetary and Credit Developments . Oil Production and Trade........................ Planning, National Economic................. Realtors’ Code of Ethics.......................... Samuel Fraser. F. S. Tenny. . . A. V. H. Hartendorp. P. H. Wood. E. F. Koch............. J. H. Carpenter. . Chamber of Com­ merce of the United States. . . . J. A. Parrish S. Araneta. . B. Ronquillo. 76 113 257 40 78 111 43 298 152 298 408 216 216 9 144 372 9 Bureau of the Census and Statistics.. . 146-150 Bureau of the Census and Statistics. .334-340 J. A. Parrish. W. C. Bryant. American Chamber of Commerce of Japan........................ W. L. Thorp.............. Z. Castrilio. C. M. Hoskins........... R. M. Wilkin............. A. V. H. Hartendorp M. Cuaderno............. J. A. Parrish............. L. S. Virata............... National Associa­ tion of Real Estate Boards of the United States. . . . 295 218 110 80 372 44 112 151 45 437 438 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1951 Articles Security Treaty, Draft of Proposed Tri­ partite .............................. ........................ Tariff instead of Controls, A Protective Telephone Company, The Philippine Long Distance........................................... Torquay, Code of Standard Trade Prac­ tices Recommended at........................... Urban Land and Housing Distribution, Report of Advisory Committee on . . Veterans of 1898, The............................... C. M. Hoskins........... Manila Daily Bul­ letin............................ U. S. Information 257 42 297 Service....................... 10 F. Calero.................... 217 A. V. H. Hartendorp 143 The Business View The Government (Office of the President of the Philippines), Official Source, pp. 11, 46, 81, 114, 152, 183, 223, 262, 299, 340, 375, 411. Banking and Finance, C. R. Hutchison, pp. 12, 48, 81; C. A. Benson, pp. 115, 153, 184, 225, 263; C. R. Hutchison, pp. 301, 341, 376, 413. Manila Stock Exchange, R. Ewing, pp. 13, 48; Manila Stock Market, A. C. Hall, pp. 82, 115, 154, 185, 225, 263, 301, 342, 377, 413. Credit, C. W. Muilenburg, pp. 13, 49, 82; W. J. Nichols, pp. 116, 155, 186, 263; C. W. Muilenburg, p. 414. Electric Power Production, J. F. Cotton, pp. 14, 50, 83, 116, 156, 186, 226, 264, 302, 343, 377, 414. Real Estate, A. Varias, pp. 14, 49, 83, 116, 155, 186, 226, 264, 302, 343, 378, 415. Building Construction, J. J. Carlos, pp. 186, 227, 265, 302, 344, 415. Port of Manila, R. L. Moore, pp. 14, 50, 83, 117, 157, 187, 227, 265; E. W. Schedler, p. 303; L. E. Burgett, p. 415. Ocean Shipping and Exports, F. M. Gispert, pp. 14, 50, 84; J. G. Llamas, pp. 117, 158, 188; B. B. Tunold, pp. 227, 265, 303, 345, 379, 416. Mining, N. N. Lim, pp. 15, 51, 85, 118, 159, 188, 228, 266, 304, 345, 379, 416. Lumber, L. J. Reyes, pp. 16, 52, 84, 117, 158, 228, 267, 304, 346, 379, 418. Copra and Coconut Oil, H. D. Hellis, pp. 18, 52, 86, 119; K. B. Day and D. C. Keller, pp. 160, 189, 231, 268, 305, 347; K. B. Day, pp..38O, 419. Desiccated Coconut, H. H. Curran, p. 17; H. R. Hick, pp. 54, 87, 121; H. H. Curran, pp. 161, 190, 233, 270; H. R. Hick, pp. 306, 349, 381, 421. Manila Hemp, F. Guettinger, pp. 19, 56, 88, 122, 162, 192, 233, 270, 306, 351, 384, 422. Sugar, G. G. Gordon, p. 20; S. Jamieson, pp. 54, 89, 121, 163, 191, 234, 271, 307, 349, 385, 422. Tobacco, L. A. Pujalte, pp. 22, 57, 90, 123, 164, 193, 236, 274, 309, 352, 387, 424. Imports, S. Schmelkes, pp. 22, 58, 91, 124, 165, 194, 236, 274, 309, 353, 387, 425. Automobiles and Trucks, J. L. Manning, pp. 60, 125. Drugs, G. Rottner, p. 94. Food Products, C. G. Herdman, pp. 23, 61, 92, 126; G. L. MaGee, pp. 166, 195, 238, 275, 310; C. G. Herdman, pp. 354, 388, 426. Textiles, W. V. Saussotte, pp. 24, 60, 93, 127, 167, 196, 239, 277, 312, 355, 339, 427. Legislation, Executive Order, Court Decisions, E. E. Selph, p. 26; R. Janda, pp. 62, 96, 129, 169, 199, 240, 278, 314, 356, 391; E. E. Selph, p. 429. Philippine Safety Council, F. S. Tenny, pp. 27, 63, 99, 130, 170, 242, 280, 315, 356, 434. Other Chambers of Commerce, Convention of Chinese Businessmen, Yang Sepeng, p. 97. U. S. Government Agencies, U. S. Veterans Administration, U. S. In - formation Service, p. 202; U. S. Economic Cooperation Ad­ ministration, p. 316. Cost of Living Price Index, 1946-1951, Bureau of the Census and Statistics, pp. 28, 64, 100, 131, 171, 204, 243, 281, 318, 356, 393, 430. The “Let Your Hair Down" Column, pp. 29, 65, 101, 132, 172, 205, 244, 283, 319, 358, 394, 431. 11th $ Atlanta Sts., Port Area, Manila That’s Tagalog for the universal greeting that speaks of peace and goodwill to all men. In this spirit of Christmas which transcends the barriers of languages, we send to you and yours our sincere wishes of the Season I RHONDA FLEMING «, «„ from the report of a well-known research organization "I've proved the Big Plus - so can YOU—1* "CHESTERFIELD IS THE ONLY CIGARETTE of all / ’ brands tested in which members of our taste / V panel found no unpleasant after-taste." r I | / I A/woys BuyCHESTERHEED added to the world’s most famous ABCs — Always Milder Buffer Tasting j/ gaoler Smoking "No Unpleasant After-taste" THE BIGGEST PLUS IN CIGARETTE HISTORY *o tl TERFIELD • “ -r w.5-»,aVff. G CBEs • over Station DZPI 'c7 VHES. station DZPI