The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XXVIII (Issue No.1) January 1952
Year: 1952
Language: English
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines Fourth Floor, El Hogar Filipino Building — Telephone No. 2-95-70 A. V. H. Harteridorp 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-Pfesident; F. J. Moore, Treasurer; R. J. Baker, J. H. Carpenter, Earl Carroll, J. T. Hicks, H. C. Stevenson, and Paul H. Wood. Mrs. Virginia Gonder, Executive Vice-President; I. T. Sa Imo, Secretary Vol. XXVIII January, 1952 No. 1 Contents Editorials— What about Intramuros?......................................... The President at the STANVAC Inauguration. Economic Nationalism vs. Economic Internationalism. Can a Government try to do too much?.............. Should the Exchange Tax Law be Amended?. . Statement on Go'd....................................................... Shipping Conferences and Ocean Freight Rates. The Business View— The Government... . Banking and Finance....... Manila Stock Market................................ Credit............................ .......................... Electric Power Production (Annual figurcsl............... Real Estate (Annual figures)................................. Building Construction............................... Ocean Shipping and Exports....................... Lumber........................... Desiccated Coconut. Manila Hemp............................................................ Sugar...................................................... Tobacco............................. Imports............................ Food Products......... Textiles Legislation, Executive Orders, Court Decisions......... Philippine Safety Council..................................................... Cost of Living Price Index, 1948, 1951.. The “Let Your Hair Down” Column........................................ 3 4 6 6 J. A. Parrish................................................ 8 International Monetary Fund............... 10 Associated Steamship Lines....................... 11 Official Source...................................................... 13 G. R. Hutchison............................................... 13 A. C. Hall........................................................... 14 C. W. Muilenburg.......................................... 15 J. F. Cotton........................................................ 15 A. Varias............................................................. 15 J. J. Carlos......................................................... 16 B. B. Tunold...................................................... 16 P. de Ocampo...................................................... 17 H. R. Hick........................................................... 19 F. Guettinger.................................. 19 S. Jamieson......................................................... 20 L. A. Pujalte...................................... 22 S. SCHMELKES............................ 22 C. G. Herdman............................................ 23 W. V. Saussotte............................................... 25 E. E. Selph.......................................................... 27 F. S. Tenny................................................. 29 Bureau of the Census and Statistics............. 28 32 50 CENTAVOS THE COPY MAKES AND MODELS OF U. S. CARS AVERAGED OVER KMS. PER LITER In Grueling 1951 Test Run Los Angeles To Grand Canyon Thanks to Careful Driving-Good Car Care /JA^ Mobilgas Power-fasfaffcfoer of STANDARD-VACUUM OIL COMPANY 7 Editorials “ ... to promote the general welfare” During the past few years, the rebuilding of Manila has proceeded at a good pace in the industrial and com mercial as well as the residential districts What about and the suburbs. It is only within the Intramuros? walls of the Old City that almost no re building has been done. The ancient walls still stand for the greater part, but except for a few build ings partly restored or newly erected, the walls inclose only a wide vacant plain, a waste space, with the rubble of the razed buildings covered by a wilderness of tall grass. Gone but for a few low ruins are the old churches and monasteries, the government buildings, the Spanish houses with their overhanging second stories. The narrow,' pic turesque old streets are hardly any longer even to be traced. Mere trails, muddy or dusty, according to the season, tunnel the grass. Families of poverty-stricken squatters, inhabiting holes in the remaining masonry, without water, without light, live an almost savage existence. The area has become a hide-out for pickpockets and thieves and more dangerous criminals. All this within a five minutes’ walk from the center of the business district on one side and an even shorter distance from the Port Area. The explanation of this is that the Government, through various of its agencies, principally the National Planning Commission, formerly called the National Urban Planning Commission, has adopted certain rather nebulous plans for the rebuilding of the Walled City which are also so impracticable that building in the area has been rendered virtually impossible. The objective aimed at,—to restore the old city rather than to built it anew, is worthy enough and makes a strong appeal to historical and esthetic sentiments, but the general plans adopted violate the basic economic prin ciples which govern real-estate development. Potentially, if not at the moment, the land values in the Walled City area, lying where it does so near the center of the metropolis, are too high to justify economically the erection of the old-style buildings which the Commission is insisting upon. The old Spanish buildings were almost exclusively low, two-story edifices, with the ground-floor walls built several feet thick of ’dobe (tuffa) stone, and with the upper story, surrounded with an outjutting veranda, built of hardwood. Often this story had an outer and an inner wooden wall, both supplied with windows, generally of shell. In the middle of the house there was an open court yard. The roofs were of tile. These houses were admirably designed for the time and for the building materials then available. They with stood earthquakes and typhoons, they were not easily entered by trespassers, they were cool, often they were beautiful. They served well both as dwelling houses and as buildings, at that time, for government and business offices, shops, warehouses, etc. And built within the cen turies-old walls of the city, with its gates and the moat and the outer defense works, the people lived in safety from outside attack. But long before World War II and the destruction it brought to Manila, even before the Americans first arrived here in 1898, the city had burst out beyond these walls and had spread along the Bay front and across the Pasig River and inland toward Santa Mesa and San Juan. Today, people would not want to build their residences in the old city; they want to live in the outlying residential districts which lie somewhat above the low level of the central part of Manila and where the air is better. They do not think it necessary any longer (despite the Huks) to live within high city walls, guarded night and day by soldiery. Even the Church and the various religious orders are not contemplating to rebuild the churches and convents and schools which once constituted a major part of beau tiful old Intramuros. Schools and convents are being erected in the suburbs, and, as for building or rebuilding churches in the old city, where would the parishioners come from? Unless the whole of the area were to become a great park, dotted here and there by a few government and other 3 public buildings, built in the old style, as desired by the Commission, what is to be done? And where would the money come from to support such an extravagant use of land, some 1.2 square kilometers,* within a few minutes’ walk of both the Port and the business center of the city? Present land values, as compared to the values just before the war, run approximately as follows: Down-town (Binondo), before the war, around 1*400 a square meter; today, between 1’600 and 1’700 a square meter. On and about the Escolta, before the war, from 1’500 to 1’700 a square meter; ^today, around 1’1,000. Ermita, before the war, from 1’25 to 1’40 a square meter; today, from P50 to 1’80. Intramuros, before the war, from 1’25 to 1’40 a square meter; today, from P40 to 1’60 a square meter. It will be seen that the price of land in Intramuros has not gone up very much, but that is because of the present restrictions and the general uncertainty as to what is to be done with the area. If the land were thrown open to ordinary building enterprise, under the ordinary build ing regulations of the city, land values would rise very quickly and it would not be long before extensive con struction would be begun, probably mainly office buildings and some industrial and commercial establishments. It should be clear to everyone’s understanding that the old Spanish style of architecture is entirely unsuited to modern functional requirements and that the revenues to be obtained from such primitive structures would be entirely inadequate to meet their cost, not of construc tion but of maintenance on land of high value which, no doubt, would be taxed accordingly. Erecting more or less modern buildings of many stories but faking some sort of exterior old-Intramuros look, would also be most undesirable, both architecturally and esthetically, and, even so, the old narrow streets, which were such a distinctive feature of old Intramuros, could never serve a modern built-up area. It seems unescapable that we must resign ourselves to the loss of Intramuros as an old Spanish city. In many respects, that loss,—of Manila’s ancient structures and shrines and historic land-marks, was the most grievous loss of all the losses brought upon the country by the war. Never can we be callous to that loss. But we should recog nize that even if there had been no war and Intramuros had not been destroyed in the terrible violence, of 1945, old Intramuros was in process of passing. Even before the war it had become to a large extent a crowded and unhealthful tenement district. Fine old residences had become ill-smelling warrens of the poor; old convents and schools were being turned into warehouses; stately old government buildings were housing second- and thirdclass bureaus and fire and police stations. It is certain that the war only hastened the inevitable. Some compromise must be reached and that com promise might well be such as has been reached, often, no doubt, without thought or plan, in many ancient cities of Europe. In cities there, far older than medieval Manila, building has through the centuries taken its natural course, but ancient land-marks have been preserved,—certain buildings, now generally museums, certain picturesque city gates, and stretches of wall which have become parks and public promenades. There is no restoring the old Walled City, artificially. As a distinctive unit, as a relic and museum piece of the middle ages, it is gone. But we can and must save what still stands. The Cathedral, the San Agustin Convent (oldest building in Manila), a part of Fort Santiago, a number of gates, and most of the walls can and must be repaired and preserved. In place of what is irrevocably gone, let modern Manila flow back inside the walls, ac cording to the city’s needs. The old and the new would ♦Population in 1939, 21,352; population in 1948, 987. stand in a not unpleasing contrast. We could still pace the tops of the old walls, study the lines of the old bastions and ravelins, step into the old stone casemates and peer through the old embrasures, entering into the minds of long-dead Spanish cannoneers; a few of the ruins might be preserved as they are, like Guadalupe at Makati, in them selves monuments to the history of Manila’s more recent past, the terrible days of the last stand of the Japanese invaders and the irresistible might of the American forces. The President at the STANVAC Inauguration The erection of the fine new, P3,000,000 StandardVacuum Oil Company building on Isaac Peral Street, which was inaugurated on Decem ber 28, was striking evidence of the faith of American business in the future of the Philippines. The same can be said of several other constructions, including the new P3,000,000 factory of Colgate Palmolive Philippines, Inc., in Makati, and the Pl,000,000 laboratory of Sharp & Dohme (Philippines), Inc., on Isaac Peral, both inaugurated in November. Still other large buildings are being planned or are already in process, of construction by other American owned business enterprises. The new Manila edifice is said to be one of the finest Standard-Vacuum Oil Company buildings in the world. The two stories provide 42,000 square feet of floor space, and the building is so constructed that a third story can be added if this becomes necessary. The building is air-con ditioned throughout. The inauguration of the Standard Vacuum building was attended by the President of the Philippines and several hundred of Manila’s leading officials and business men. Mr. J. A. Parrish, the general manager, delivered a brief address in which he spoke of the faith of his Company in the Philippines and also took the opportunity to impart some interesting facts and figures,—for instance that the Company employs, throughout the Philippines, some 1,400 persons, 96% of whom are Filipinos, and that the total payroll for this year will run to P3,500,000. The Com pany’s products, furthermore, are retailed in virtually every town of any size in the country by some 1,700 dealers. These employees and dealers, together with their dependents, number no Jess than 15,000 persons who thus derive their livelihood from the activities of the Company. Mr. Parrish then spoke of the wage and salary scales, the vacation and sick leave with pay granted to the em ployees, and the pensions paid them after their retirement for the remainder of their lives. But perhaps the most impressive of his statements was that the Company’s tax payments under all headings in 1950 amounted to P28,014,000 and that for 1951 they will amount to P37,800,000. This indicates to what an extent our large business firms have, in effect, become tax-collecting agencies for the Government, for, of course, taxes paid are a part of the cost which must be collected from the consumers. President Quirino, in his remarks, extemporaneously delivered, stated that he was gratified by the spirit in which the new building had been constructed, giving ex pression to the Company’s faith and confidence in the stability of the Government, the industry of the people, and the honest efforts the nation is making toward contri buting to world advancement. During the course of his remarks, he made one state ment that somewhat startled his hearers,—that it “may perhaps be against our own (Philippine) interests” for a company like the STANVAC to “stay here indefinitely”. He went on to explain that the presence of such an im porting company might tend to discourage the exploitation of the Philippines’ own oil deposits, which, he said, were 4 January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 5 ' “I help grow better cane... I increase security for the nation; I am a Farmall Tractor!” Mechanized farming with McCormick International Farm Equipment Modern transportation with International Motor Trucks Industrial power with International Power Units Cultivating sugar cane in Negros the Philippines Over 40 years 1 To help build a stronger Philippines, International Harvester provides . . . INTERNATIONALWjljl HARVESTER INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES ■ MAIN OFFICE; MANILA “extensive”. Nevertheless, he declared, he would still welcome and encourage the expansion of such companies because, in any case, “it would take a long time to develop our oil deposits”. The President also referred to the “Parity” amend ment to the Philippine Constitution which provides that the development of the country’s national resources as well as the operation of public utilities shall be open to American citizens and business enterprises until the year 1974. He said that he had asked Mr. Parrish just before the ceremonies whether his Company would not be able to take advantage of that amendment, but that Mr. Parrish had said that the “period was too short”. “Perhaps that is right,” said the President. He added: “But if we were ready to approve the Parity Law, it was because we wanted Americans to come as soon as possible and enjoy a common enterprise to develop this country. . .” We do not know upon what information the President relied in making the statement that Philippine oil deposits are “extensive”, and we doubt that authoritative data on this important point is as yet in existence. Exploratory work is still going on and no considerable oil flow has as yet been discovered to our knowledge. A STANVAC subsidiary organization has shared in this work of explora tion in the past and there is every reason to believe that the presence of STANVAC in the Philippines, and the development of the distribution aspect of the oil industry here would tend to encourage rather than to discourage efforts to obtain oil locally. This would greatly reduce the cost of transportation and there are other markets for the oil now being imported here. The real discouragement to American oil develop ment is, as Mr. Parrish told the President, the fact that the privileges extended by the Parity Amendment will expire within little more than twenty years. There are, furthermore, other discouraging factors operative in the Philippines which were described in some detail,—as it happens by Mr. Parrish himself, in an article in the De cember issue of this Journal entitled “Deterrents to Foreign Investment”. If only there could be an effective implementation of the views of the President as he further expressed them in his remarks on this occasion,—that association with those willing to cooperate with us in the development of the country should be welcomed, that equal protection of the law must be assured, that past prejudices must be revised, that a more positive outlook must be adopted! The distinguished American businessman and Chair man of the United States Council, International Chamber of Commerce, George A. Economic Sloan, was recently quoted Nationalism versus as stating the following on Economic Internationalism the subject of economic nationalism: “Countries that practice economic nationalism, where attempted self-sufficiency reduces trade with other nations to a minimum, are directly inviting inefficient, unhealthy production and a low standard of living. Yet economic nationalism is often invoked as the only method of safeguarding enfeebled economies from international bankruptcy. Such invocations place the cart visibly before the horse. Thus it is reassuring to note the extent to which the principle of international cooperation has been translated into practical measures in the operation of the Organization for European Economic Cooperation (OEEC), the European Payments Union (EPU), and the North Atlantic Treaty Organization (NATO). “Finally, and this is most intimately related to the activities of OEEC and EPU, there is the Economic Cooperation Administration (ECA) progiam. ECA, as administered at first by my distinguished colleague, Paul Hoffman, and more recently by his successor, William Foster, has been of tremendous aid in postwar reconstruction. But recon struction in most of the war-ravaged countries is now coming to an end. Construction is a more appropriate term in describing the big job ahead. “ We must be prepared to give new life and new meaning to the doctrines of economic internationalism which will assure the support of fair-minded people everywhere... “Our unrelenting work for a free and expanding world economy will provide a better life for millions of peoples. Individuals want jobs, happy environments in which to live, and an opportunity to develop. Business leadership with realistic understanding and cooperation from government is needed for the attainment of these goals. To this end we must work with other businessmen; we must work with govern ments; we must work with labor and agriculture; we must work with educators. “The way in which businessmen accept the challenge may well determine the fate of civilization and freedom for decades to come.” Can a government try to do too much? In suggesting a cure for Great Britain’s recurrent balance of payment difficulties, Can a Government the authoritative Monthly Letter try to do on Economic Conditions and too much? Government Finance, published by the National City Bank of New York, the basis of the suggested cure is taken to be the diagnosis that— “Like most other countries today, she [Britain! is trying to do too much. At the same time that the Government is superimposing rear mament upon an economy already operating at full employment, it is pouring out money for housing, and fostering high civilian consump tion by food subsidies and other expenditures of the welfare state. The result is an inflationary boom, with its accompanying rise of wages and prices, which is reacting in the classical manner on the balance of payments by encouraging imports and discouraging exports.” The Letter referred to is that for the month of November, put out shortly after the elections in Britain, and a manifesto of the Conservative Party (which won the elections) is quoted as saying in part: “We do not believe in an egalitarian society centrally planned nor in an economy dominated [either] by state monopolies or private combines”. In the same manifesto, the Party promised to “do everything possible to stimulate production at home and to expand exports”. There may, therefore, be an improvement in the British position before long. The National City Bank Letter stated: “In seeking the cure. . . a first step is to analyze the nature of the disease. The very suddenness of the plunge into the red, coming just at a time when the dollar gap appeared to be closing and sterling area monetary reserves were recovering, calls particularly for explanation. As usual, several factors entered in. Among these factors, the Letter points out were (1) the outbreak of the Korean war and the consequent speed ing up of rearmament and the bulge in raw material prices forced up the volume and cost of British imports, and the volume of exports failed to keep pace; (2) bad timing of stock-piling purchases,—too late and at top prices (another example that government planners are by no means as infallible as they are sometimes represented to be); (3) the loss of Iranian oil increased the need to spend dollars; (4) the crisis and the accompanying apprehensions tended to accelerate the dollar drain. . . “However,” states the Letter,“with due allowance for these special and in some cases possibly tem porary factors, it would seem that other and more fundamental fac tors must be sought. One of the lessons of economic history is that chronic balance of payments difficulties can almost invariably be traced back to inflation. With internal purchasing power ex panded too rapidly, the natural effect is to attract more imports, while at the time increasing the demand in the home market for goods that might otherwise be exported. Indications are that Britain is another example.” (.Italics ours) The remedy, concludes the Letter, is clear: “It is government and private retrenchment. . . Produce more, consume less.” All the foregoing is interesting as an aid to under standing Britain’s position, but it is of greater importance to ourselves as an aid to understanding our own position. The Philippines, too, has for a long time suffered from inflation and from the Government trying to do too much. 6 January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 7 ESS It’s true! Theft of your firm’s cash could easily cripple your business — might even force you to close up. This has already happened to many companies. Don’t let it happen to you. You’re taking terrible risks, if you try to hide your money. A thief can’t be fooled that easily. And if you put your cash in an obsolete safe, you’re an easy victim for any determined burglar with his heavy tools. Safest way to guard against burglary is to keep your funds in the built-in Money Chest inside a Mosier Safe. Tough, armored-steel Mosier money chests are able to withstand concentrated attack with modern burglars’ tools, and give you the utmost in protection against theft. Mosier Safes Are Insulated Against Fire A flash fire, too, could bring disaster to your firm if it burned or even charred your vital business papers. An oldstyle safe — one that does not carry the label of Under writers’ Laboratories, Inc. — might act as an incinerator for your accounts receivable, inventory records and other valuable documents. And an actual survey reveals that 4 out of 10 companies whose records are destroyed by fire, never reopen. Modern Mosier Safes are specially insul ated and constructed to withstand intense heat, impact and explosion, and are so certified by Underwriters’ Labora tories, Inc. Look for the UL label on your safe. Without it, your safe probably isn’t safe. How a Mosier Safe Gives Double 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. ^Mosier Safe e>. 320 Fifth Avenue, New York 1, U.S.A. Cobles: - OMOPlATf NEWYORK" WORLD'S LARGEST BUILDER OF SAFES AND VAULTS . . . FOUNDED IN 1848 For sale by: ELIZALDE TRADING CORPORATION 380 Tanduay St. Tel. 3-86-71 Should the Exchange Tax Law be Amended? By J. A. Parrish General Manager, Standard Vacuum Oil Company President, American Chamber of Commerce of the Philippines ALTHOUGH it is thoroughly understood that the Philip pine exchange tax law applies to the nationals of all countries alike, American nationals and American capital are mentioned specifically in this article because, for the time being at least, it is from the United States only, and generally through American businessmen, that outside funds can be depended upon to assist in the devel opment of the natural resources and the build-up of in dustry in this country. Now that elections are over and the Third Session of the Second Philippine Congress is about to open, one hears and sees in the press considerable speculation as to the attitude which the new senators and congressmen may take toward taxes in general and more particularly toward the tax which is being collected on the sale of dollar exchange. Our current exchange tax law was passed by the Se cond Congress as Republic Act No. 601 and was approved by the President on March 28, 1951. For convenience pertinent sections of the law are quoted verbatim or para phrased hereunder: Section 1. Except as herein otherwise provided, there shall be assessed, collected and paid a special excise tax of seventeen per cen tum (17%) on the value in Philippine pesos of foreign exchange sold and/or authorized to be sold by the Central Bank of the Philippines or any of its agents during the period of two years counting from the date of the approval of this Act. Sec. 2. Exchange purchased in connection with the importation of certain food staples, drugs, textbooks, newsprint, etc., is exempt from the exchange tax. Sec. 3. Exchange purchased in connection with the importation of articles or containers utilized in the packaging of local products for consignment abroad is exempt from the exchange tax. Sec. 4. Exchange tax is not applicable to exchange sold for the following purposes: 1. Payment in respect of reinsurance. 2. Payment in respect of marine and aviation insurance. 3. Payment of expenses for drydocking and repairing abroad vessels of Philippine registry and for repairing abroad airplanes of Philippine registry. 4. Exchange purchased for payment of living expenses of stu dents jstudying abroad not exceeding three hundred dollars per month and for tuition and other school fees. 5. Payment of premiums by Veterans on life insurance policies under the Government of the United States. 6. Payment of premiums and other amounts due by policyholders on life insurance policies issued before December 9, 1949. 7. Payment of machinery and or raw materials to be used by new and necessary industries as determined in accordance with Republic Act Numbered Thirty-Five. Those who felt the greatest concern over the exchange tax measure at the time it was being promoted in the Con gress will recall that the greatest influence for its passage appeared to be the general understanding that it was recom mended by the Bell Economic Survey Mission. In part that understanding was correct. There are very important differences, however, between the Bell Mission suggestions in this regard and the provisions of the exchange tax bill as finally approved. For convenience, the specific recommendation, with regard to the exchange tax, made by that group of Bell Mission experts who were assigned the responsibility for studying and reporting on the commercial and exchange policy of the Philippine Government is quoted hereunder. The quoted section is found under the heading of “Recom mendations” on page 88 of one issue, and on page 66 of another, of the Report to the President of the United States by the Economic Survey Mission to the Philippines, pro duced in Washington, D.C., October 9, 1950. (Italics ours) “2. To reduce the present excessive demand for imports, which is in part due to the high level of national income and home prices relative to those of the United States, a special emergency import levy of 25 per cent should be imposed on all imports except a limited number of the most essential goods. This special levy would be for a period not to exceed two years and would be coordinated with a new trade agreement to be negotiated with the United States. If such a special levy is not possible because of legal limitations, it would be desirable to secure some reduction in the demand for imports by heavy excise taxes on luxury imports, or through a tax on ex change remittances, although such a measure could lead to serious speculation.” From the language used in this section, the conclusion can undoubtedly be drawn that revenue was not the pri mary objective which the Bell Mission experts had in mincl here, but rather that it was their purpose to prescribe a means for reducing imports, which were draining the country’s dollar reserves faster than dollar receipts could be accumulated from exports and other sources. The proposal which manifestly took priority among those made by the Bell Mission was “a special emergency levy of 25%” on all imports except a limited number of the most essential goods. The alternative to the above recommendation is contained in the following sentence and is so clearly expressed as to permit of no misunder standing that a tax on the sale of exchange was mentioned only as a last resort. “If such a special levy is not possible because of legal limitation, it would be desirable to secure some reduction in the demand for imports by a heavy excise tax on luxury imports, or through a tax on exchange remittance, although such a measure could lead to serious speculation.” In view of the order of preference given to the different Bell Mission suggestions, one might ask why we have the exchange tax at all, instead of an import levy or an excise tax on all imported goods, graduated in accordance with the essentiality of each category of goods brought in. One heard at the time that a levy on imports of Amer ican goods would run counter to the principle of free trade between the Philippines and the United States, as provided for in the Philippine Trade Act of 1946. Such reasoning could not have been taken too seriously, for the reason that the principle of free trade had already been abridged by the levy of a 1 % tax on the value of imports in the old Import Control Board. The present Import Control Com mission, with certain exceptions, collects a tax of 2% on the value of imports. Nor can it be claimed that this 2% tax is to cover the expenses of the I.C.C. because amounts being collected exceed by far the cost of maintaining the Commission and are turned over to the general fund of the Government. If the collection of a tax of 2% on imports from the United States can be looked upon as coming within the provisions of the 1946 Trade Agreement, then no maximum in the rate at which such a tax could be fixed can be said to exist. Consequently the rate of tax collected when import licenses are issued could be fixed at 17%, 25%, or at any other level which might be necessary to reduce imports and sufficient to increase revenue by a specified amount and for any purpose. Furthermore, under such a tax arrangement the desirable regulation of imports could be achieved by graduating the rate of tax in accord ance with the relative essentiality of the product for which import license was sought. It will be recalled by those who stood to make the greatest contribution under the provision of the exchange tax bill that the representatives of a certain United States government agency, who were in Manila at the time, in formed congressmen here that a tax on the sale of exchange was what the United States Government wanted. When the exchange tax proposal came up for com mittee consideration, representatives of American business were amazed to find that in certain of its features the bill went far beyond the purpose of diminishing imports, and that if the bill were passed as drafted the tax would also apply to repatriation of capital, to remittance of profits and dividends, and to the transfer of proceeds of liquida tion of American business and savings by American na tionals resident in the country. One of the explanations offered for the application of the tax to remittances made for other purposes than to cover imports, was that diffusion of the tax would take away from it the character of an import levy on goods from the United States. Apparently the same personnel in the same United States government agency assured Filipino congressmen that this extension in the application of the exchange tax was also what the United States Congress wanted. Subsequent to the passage and approval of the ex change tax law, several American congressmen have visited the Philippines and have discussed with local businessmen the economic prospects of the country, including incentives to the investment of outside capital here. These interviews have not confirmed that in the United States capital an exchange tax was preferred over other import deterrents suggested in the Bell Report, and by no stretch of the ima gination could these congressmen be accused of advocating the inclusion of profits from American-financed business, repatriation of American capital, and remittances which would normally be made by American employees in the scope of the exchange tax law. In all probability it did not occur to the authors of the exchange tax bill that in operation the law would set up a severe penalty against business and investments financed from the United States and against American nationals employed in the Philippines. The thesis is un doubtedly accepted that foreign capital invested in the Philippines is entitled to be repatriated without restriction. It also seems entirely reasonable that the profits derived from business which is financed by citizens of other coun tries should be freely convertible to the currency of the mother country. American citizens normally return to the United States when their business is discontinued, or when they no longer have employment in the country, to live out their final years in the land of their origin. It is only normal and reasonable that, after settling their local obligations, these citizens would convert to the currency of their home country any resources they had remaining, whether represented by savings, assets, or proceeds of liquidation. Because of the circumstances mentioned above, the exchange tax quite obviously places American business and American employees in the Philippines at a dis advantage to the extent of 17% of the net proceeds of their operations, investment, or employment, compared with resident citizens and major groups of other nationals who reside in the country but whose profits and earnings do not normally require to be converted. Aside from the cut which the exchange tax takes out of the net earnings of the individual American citizen when remitted, the adverse impact of the tax on American capital attraction is plain to be seen. Investment climate for foreign capital can not be considered favorable in any country where a substantial tax is laid on the repatriation of principal or on the remit tance of profits derived from the employment of such capital. On many occasions I have made the observation that one of the principal deterrents to the flow of American capital toward the Philippines was the very stiff tax of 17% which the investor would have to stand when he undertook to remit profits or repatriate his original principal. In variably the response has been that one of the objectives of the exchange tax law was to discourage the departure from the country of capital of any kind, on the theory that capital which is already here, as well as that which might yet come in, should continue to be employed in this country for the benefit of our economy. Obviously it would be a splendid thing if we could attract outside financial assistance on that basis, but it is probably neither a reasonable nor a sound condition to the investment of foreign funds in any country that the investor must live there in order to expend locally the pro ceeds of his investment or that he must forever reinvest such proceeds in the same country. More often than not, investors are handling money that belongs to groups of people, and the common practice is to spread investment over different countries as well as over different industries in the same country. While investors assume that their capital will contribute to wider employment and to the increase of wealth in the country to which it goes, they are ’ by no means prepared to risk their funds for that purpose alone. Part of their objective is to bring about an increase in their capital, in the form of dividends which they have every right to expect to convert freely back to the currency from which the original investment was made. One other possible explanation for the spread provided for in the application of the exchange tax was the fear that if confined to imports alone, the levy would not return the amount of revenue needed to qualify for E.C.A. aid and for other purposes. To the contrary, so surprisingly suc cessful has been the operation of the exchange tax law that it now probably occupies first place as a single source of revenue to the Government. The Central Bank and the tax authorities will undoubtedly concede that collec tions under the exchange tax have exceeded original ex pectations and it may be true that the amount collected from imports alone is equal to the total amount originally expected to be realized from this source. Over the first six months, following the approval of the law, collections from the exchange tax amounted to P86,000,000. For that period the average works out at roughly P 14,300,000 per month. Evidence of very satisfactory improvement in overall government revenue is found in an article by the Hon. Mi guel Cuaderno, Governor of the Central Bank, published in the last issue of the Journal of the Philippine Chamber of Commerce from which the following quotation is taken: “The tax measures approved at the last session of Congress have not only been an important factor in arresting the resurging tide of inflation, but have also greatly improved the financial position of the Government. . . The net income of the National Government for the current year will probably be around P536.8 million. . . This estimated income of P536.8 million should be sufficient to cover disbursements authorized in the budget for ordinary, extraordinary, and fixed expen ditures of P441.9 million, as well as a good portion of the funds needed for the E. C. A. counterpart funds, for public works, and for the pay ment of short term obligations of the Government.” From Governor Cuaderno’s statements and with the prospect that tax collections from all sources will be still greater in 1952, it would appear that government finances could very well stand a relaxation in collections under the exchange tax, and that purchases of exchange to cover repatriation of capital, remittance of profits from foreign investment, and the transfer of proceeds of liquidation when foreigners are retiring from the country could be excluded from tax obligation. None of these transfers could be looked upon as flight of capital from the country. SUMMARY 1. A reduction of imports was the purpose behind the suggestion of the Bell Mission that an import tax, or an excise tax, or an exchange tax be levied on imports. 2. Two other tax measures to achieve this purpose were suggested by the Bell Mission in preference to an exchange tax. 9 3. It does not appear to have been the intention of the Bell Mission that an exchange tax, if adopted, be ap plied to remittable profits from business financed from abroad, or to remittable proceeds from general investments by foreigners, or to remittances which would normally be made by foreign citizens employed in the Philippines. 4. No evidence is available that the United States Congress expressed a preference for an exchange tax over other measures suggested in the Bell Report for curtail ment of imports. 5. It has not been confirmed that the United States Congress advocated or expressed views favoring the appli cation of an exchange tax to profits or dividends from business investments or to remittances normally made by citizens of other countries employed in the Philippines. 6. Remittances for purposes expressed in “3” above should be readily distinguishable from remittances which represent flight of capital from the country. 7. The exchange tax operates to set up a penalty against American-owned business, investments from Amer ican sources, and American citizens employed in the Philip pines. 8. Collections under the exchange tax have exceeded the goal which the authors had in mind and therefore the improved condition of the government finances would permit of an amendment to the exchange tax law as indicated. Statement on Gold* By the International Monetary Fund THE -Executive Board of the International Monetary Fund published the following statement on Sep tember 28: “In June, 1947, the Fund issued a statement recommending to its members that they take effective action to prevent external transactions in gold at premium prices, because such transactions tend to undermine exchange stability and to impair monetary reserves. From time to time the Fund has reviewed its recommendations and the effectiveness of the action taken by its members. “Despite the improvement in the payments positions of many members, sound gold and exchange policy of members continues to require that, to the maximum extent practicable, gold should be held in official reserves rather than go into private hoards. It is only as gold is held in official reserves that it can be used by the monetary author ities to maintain exchange rates and meet balance of payments needs. “However, the Fund’s continuous study of the situation in gold producing and consuming countries shows that their positions vary so widely as to make it impracticable to expect all members to take uni form measures in order to achieve the objectives of the premium gold statement. Accordingly, while the Fund reaffirms its belief in the economic principles involved and urges the members to support them, the Fund leaves to its members the practical operating decisions in volved in their ■ implementation, subject to the provisions of Article IV, Section 2 and other relevant articles of the Articles of Agreement of the International Monetary Fund. “The Fund will continue to collect full information about gold transactions, will watch carefully developments in this field, and will be prepared in consultation with members to consider problems relating to exchange stability and any other problems which may arise." In communicating this statement to the press, Mr. Rooth, the Managing Director, recalled the background of the original statement on premium gold transactions. In June, 1947, the initial par values of Fund members had only been recently agreed and were not yet tested under postwar conditions. Total dollar receipts from exports to the United States were running at a rate of about $5,500,000,000 a year. Monetary reserves outside the United States were declining rapidly. The payments difficulties that led to the Marshall plan were already visible. In these cir cumstances the Fund’s statement helped to focus the at tention of members on the dangers of an unrestricted flow of gold into hoards and was useful in limiting the supply of gold to premium markets. As world economic conditions improved in late 1949 and 1950, the flow of gold into hoards tended in fact to subside. Since the outbreak of the Korean war, however, it has again become larger. Mr. Rooth pointed out that, in studying premium sales of gold and the drain on reserves caused by the absorp tion of gold into private hoards, the Fund has found that, to reduce materially the volume of gold transactions at premium prices, many members would have to institute •From the International Financial News Survey, October S, 1951. much more rigorous controls than they now have. More over, the positions of different countries vary so widely that it would be impracticable to expect all members to take uniform measures to make the 1947 gold statement effective. The new statement, therefore, affirms the Fund’s belief that to the maximum extent practicable gold should be held in official reserves rather than go into private hoards. The Fund urges its members to support this view. It is left to members, however, to decide the practical operating measures that they will take. Each member will be the judge of just how and to what extent it will implement this statement. With the new statement, members are not bound to any particular procedure for handling their external trans actions in gold. They are not limited to the sale of any specific amount of gold or to any particular proportion of their newly-mined production. Probably gold will now be sold by some countries that did not engage in such operations before. Other countries may continue to sell the same amounts that they did before. And some coun tries may even reduce the amounts they had previously been selling. Mr. Rooth concluded with two observations on the Fund’s experience with the gold statement of 1947: First, controls as such can have only a limited effect unless they are reinforced by appropriate economic policies. In a period of acute difficulty, the imposition of strong controls to prevent premium gold transactions can be justified. But as time goes on and means of evasion and avoidance are devised, the controls gradually lose their effectiveness. When this happens, the controls cannot be made to work by asking countries to impose more and more onerous restrictions. Second, the only dependable way for getting rid of premium gold markets and private hoarding of gold is to create the economic conditions under which the private demand for gold will become negligible. In some countries, where gold is hoarded as a matter of tradition, the develop ment of strong banks and sound financial institutions will encourage people to hold more of their savings in banks or securities or invest them in productive enterprises. In every country, the best way to reduce the demand for gold for private hoards is to follow budget and credit policies that will give people confidence in their currency. Nobody' can have a good reason for hoarding gold or paying a pre mium for gold in a country in which the currency will re main stable in internal and external value. 10 The U.S. Treasury announced on September 28 that it concurred in the Fund’s statement, which accords with its own policy, and that it plans to continue in effect its existing gold practices and procedures. At a press conference in London after the Fund’s An nual Meeting, Mr. Gaitskell, the Chancellor of the Ex chequer, stated that the British Government supported the view that gold producing countries should sell their gold exclusively to central banks and, therefore, at the respective parities of their currencies; but he implied that if there were any deviations from this rule they should be allowed on a non-discriminatory basis. Sources: International Monetary Fund. Press Release No. 170, Washington, D. C., September 28, 1951; U.S. Treasury Department, Press Release, Washington, D. C., September 28, 1951: The Economist, London, England, September 29, 1951. Shipping Conferences and Ocean Freight Rates By the Associated Steamship Lines ALTHOUGH the recent relatively,moderate increase in the so-called “general cargo” ocean freight rate (this type of cargo constitutes only around 10% of the total cargo carried) has aroused some adverse comment and has even led to the suggestion that control of the ocean freight rates be placed under some Philippine Government agency, the Associated Steamship Lines welcomes the public interest which is being shown. The Association has nothing to conceal and if its nature and objectives become better known to the public, this could only redound to the mutual advantage. Everyone understands how important foreign trade is in the national economy of the Philippines, and, there fore, the importance of the shipping which carries this trade. And, certainly, no one could believe that the ship ping companies would take any action damaging to the trade on which its own existence depends. What, by the way, is not so well understood is that the cost of ocean transportation with respect to many classes of cargo, represents only a very small proportion of the ultimate retail price to consumers. The public will have to look elsewhere for the cause of high prices. From the United States Pacific coast, the ocean transportation cost of a can of evaporated milk, for instance, figures out to only around 1/4 of one centavo for a tall can and 1/8 of one centavo for a small can! The Associated Steamship Lines is a voluntary, non profit group of steamship companies engaged in the carrying trade between the Philippines and other countries, not including the countries of Europe, which has been operating since 1922, a few years after the close of the First World War. The Association has been referred to as a “shipping conference”, a type of operation which began to evolve after the transition of shipping from sail to steam. Such conferences now exist in all the leading maritime countries. It should be understood that it was the advent of the steamship which for the first time made fast and regular service possible between the ports of the world, since steam ships were not so dependent on wind and weather as were the sailing ships. Sailing ships were generally individually owned, sailed only when they had taken on full cargoes, which might take weeks or months, and the duration of their voyages could never be foretold with any accuracy. With the regular service between ports provided by steamships, the speed alone of these ships greatly increased the amount of cargo carried within a stated period, and with the natural increase in the number of ships and the increase in the sailings from and to the various ports, a very destructive period of cut-throat competition set in among shipowners. If this had continued, all the weaker steamship companies would have been driven off the seas and the organization of a few great monopolies would automatically have been brought about. Shipping conferences are sometimes accused of seeking to control and monopolize a trade, but actually the very opposite is the truth. Shipping companies were driven into these conferences to survive as such and prevent the formation of gigantic monopolies. Without the agreements brought about in the conferences, adequate and satisfac tory service on the various shipping routes of the world by the various companies would not be possible. Shipping conferences attempt to stabilize freight rates,—that is one of their objectives, and these rates must be adjusted from time to time, but this is not done arbi trarily but only after extended consultations between the shipping companies and at least all the more important shippers. Conferences can not simply levy what rates they like, not only because rates that are too high would destroy their own cargo-carrying business as the shippers would not be able to compete in the world markets, but because there are always shipping companies which are not members of such organizations as well as numerous tramp ship operators who offer competition. Furthermore, except in the matter of rates, the member shipping com panies are still in competition among each other with respect to quality of service. an outstanding fact is that the shipping business is ^■largely international. Every shipping company not engaged in merely a coast-wise trade, comes within the territorial jurisdiction of at least two nations, often many more as its ships ply between the ports of various countries. It is for this reason that governments, while they exercise their general regulatory powers over all shipping under their own jurisdiction and over foreign shipping when under their jurisdiction, they do not attempt to exercise direct control over ocean freight rates. Suppose, for instance, that one government, in the interests of its merchants, fixed the maximum rate on a certain commodity at $20 a ton, and the government of another country, in the interests of its merchant marine, prescribed a minimum rate of $25. For a shipowner to accept cargo under those conflicting orders would manifestly be impossible. Treaties of friendship, commerce, and navi gation entered into between nations generally provide that no attempt will be made by either government to fix ocean freight rates. The foregoing should make it clear why the interna tional shipping business has been permitted to work out what is largely a system of self-regulation through the conference system. Yet simple as all this seems, the system has sometimes been under attack,—as in the Philippines only recently. Even the sea-wise British Government, as early as 1906, 11 appointed a commission to investigate “shipping rings”. After three years of investigation, the commission con cluded : “1. Developments in ocean transportation have made it neces sary that shipowners be afforded such protection as that granted by the system of shipping conferences and deferred rebates. “2. The system of shipping conferences and deferred rebates has developed until it is now a controlling factor on all sea routes where trade and general merchandise are the chief interests. “3. Not only shipowners but a large proportion of the shippers regard shipping conferences making use of the system of deferred re bates as a necessary means by which the advantages supplied under an organized service can be maintained. “4. Steamship lines require a guarantee of a continuity of custom and a means of protection against competitors offering spasmodic service in order to provide service covering a large range of ports with sailings at regular and fixed dates and with ships especially adapted for particular trades." In the United States also, in 1912, the U. S. Congress authorized an investigation of steamship conferences in the foreign and domestic trade of the country. It, too, lasted a number of years and its work resulted in the enact ment of the U. S. Shipping Act of 1916. This law forbade the use of the deferred rebate, but established the legality of the conference system. The congressional committee reported, in part, as follows with respect to the system: "It is the view of the committee that open competition can not be assured for any length of time by ordering existing agreements termi nated. The entire history of steamship agreements shows that in ocean commerce there is no happy medium between war and peace when several lines engage in the same trade. Most of the numerous agreements and conference arrangements discussed in the foregoing report were the outcome of rate wars, and represent a truce between the contending lines. To terminate existing agreements would necessarily bring about one of two results: The lines would either engage in rate wars which would mean the elimination of the weak and the survival of the strong, or, to avoid a costly struggle, they would consolidate through common ownership. Neither result can be prevented by legislation, and either would mean a monopoly fully as effective, and it is believed more so, than can exist by virtue of an agreement. Moreover, steamship agree ments and conferences are not confined to the lines engaging in the foreign trade of the United States. They are as universally used in the foreign trade of other countries as in our own. The merchants of these countries now enjoy the foregoing advantages of cooperative arrange ments, -and to restore open and cut-throat competition among the lines serving the United States would place American exporters at a disadvantage in many markets as compared with their foreign compe titors.” Why did the British commission report that shippers regarded the shipping conference as necessary, and the American committee speak of it as advantageous to mer chants? Again the facts are easy to understand. In the selling of commodities between countries on a competitive basis, the seller is at a great disadvantage if he is unable to pre determine his cost of delivery and, likewise, the costs of his competitors locally as well as abroad. It is for this reason that established rates have been welcome by shippers. And, if rates must be increased, the shipping conferences, in order to protect the merchants in their advance com mitments always arrange that the increases in rates will not become effective until after a certain period, which, in the case of the Associated Steamship Lines in Manila, is 90 days from their promulgation. However, in the case of decreases, the shipper is given the advantage of the reduction immediately. Conference rules require member companies to main tain a regular number of sailings in each year. The lines participating are on the berth with scheduled calls, and this allows shippers the opportunity to make their ship ments at spaced intervals which are advertised well in advance. This regularity, which only the conference system makes practically possible, is a" very great advantage to those who ship commodities in parcel lots because of the nature of the cargo or because the consignees can not accept full ship loads at one time. Additionally, regular shippers are protected through out the year because the conference-line ships call during the off-season when the movement of the major commo dities may be slack or dormant. Chartering a ship is difficult at such times and small shippers could not even consider this unless it happens that they can have the assistance of larger shippers in providing the necessary amount of cargo. With the various lines working together in a conference, shippers have still another advantage because the con ference set-up enables them to receive prompt action on any matter pertaining to their shipping problems. There are always numerous such matters that require discussion, such as loading requirements, calling at small, non-regular ports, proper handling of shipments, etc. A conference also always works closely with the customs and other water-front organizations in order to maintain and improve the efficiency of the ports. Chartering ships for special voyages may sometimes be advantageous for bulk cargo, such as ore or lumber, going to one port, but the disadvantages of chartering for the great majority of shippers are obvious. And it should not be thought that charter rates are always lower than conference rates, as this is by no means so. Since the outbreak of the Korean War, for instance, tramp rates have risen rapidly, while the various confer ences are generally far behind in effecting an upward revision of their rates, even though these are usually not more than 10% or 15% at a time and, as for the Associated Steamship Lines in Manila, with the customary 90 days notice to shippers. Only a few months ago, tramp-ship operators were not interested in cargoes at conference rates but pre ferred ballasting their ships to areas from which more remunerative freights were obtainable. In a subsequent article it is planned to inform shippers and the public as to the present rates and how they com pare with the rates from other nearby ports. It is wholly untrue that the Philippines is being discriminated against in this matter, as we shall show. “ A S the authority of government increases, the scope of individual initiative shrinks. People find that their welfare depends ’^'"less on their own productive efforts and activities, and more on the decisions of bureaucrats. As their freedom of action diminishes, their sense of responsibility weakens. Their hopes center more and more on the possibility of getting something for nothing. The idea of receiving payment for services rendered tends to give way to the idea of simply receiving payment.”— From the November Guaranty Survey. 12 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources DECEMBER 1—President Elpidio Quirino receives United States Vice-President Alben Barkley, who arrived in Manila with his wife for a one-day informal visit. Later in the day, the President entertains Vice-President and Mrs. Barkley at luncheon, and in a short speech Mr. Barkley congratulates the President on the conduct of the last elections and on the progress being made in economic, agricultural and industrial development. The Department of Foreign Affairs announces that the President has approved the creation of a Division of Economic Affairs within the Department which is to be headed by Caesar Z. Lanuza. Dec. A—Mt. Hibok-Hibok, on Camiguin Island, just north of Misamis Oriental, Mindanao, erupts without warning at 7:15 in the morning and later telegraphic reports tell of the devastation of some nine or ten square kilometers by lava and ashes and the death of several hundred people. The President directs that immediate aid be extended by various government departments, the army, and the Red Cross. The Cabinet decides that the Government will reiterate the request for the repeal of the United States excise tax on coconut oil. It is also decided to make P600.000, to be taken from the surplus funds of the Philippine Charity Sweepstakes Office, available for the rehabilitation of the Philippine General Hospital, the action being taken on an appeal of Director A. B. M. Sison. Dec. 5—Malacahan releases messages from Brig.-Gen. Ernest Moore of the U. S. Army (Clark Field) and from Rear Admiral Richard Cruzen, U. S. Navy (at Sangley Point, Cavite), offering help in pro viding and sending supplies to Camiguin, with return messages of thanks from the President. Dec. 6—Explosions of the Hibok-Hibok crater continue and it is reported that 5 barrios have been completely destroyed and 16 others rendered uninhabitable. The President meets with members of the Radio Control Board who call on him in connection with the government program of distributing receiving sets to outlying barrios in the provinces, and they report that dissidents in various places are stealing the sets. The President inquires concerning the supervision of radio broadcasts, warning against the infiltration of the broadcasting stations by sub versives. The President issues Administrative Order No. 170 creating the Priority Assistance Committee, to be composed of a representative each from the Central Bank, the Department of Foreign Affairs, and the Philippine Council for United States Aid, to coordinate the pre paration of all requests for priority assistance on orders for commpdities in short supply in the United States. Dec. 7—The President orders immediate release of P10.000 for the local purchase of relief supplies by government relief workers on Camiguin. He issues Executive Order No. 486 ordering the collection and compiling of historical and cultural data by town, city, and pro vincial officials in an effort to replace records lost in the destruction of Manila. Chairman Alfredo Montelibano of the Import Control Board calls on the President in regard to the implementation of the law pro viding that 50% of imports be reserved for Filipino importers. Dec. 8—Messages of sympathy begin to be received at Malacanan from foreign governments in connection with the Camiguin disaster, including messages, during the next few days, from the Spanish, Indian, Italian, Indonesian, Korean, Chinese (Nationalist), Australian. Dec. 10—Malacanan releases the text of a telegram received from President Harry S. Truman, under date of December 9, as follows: “My dear Mr. President: In these days when the liberties of all free men are faced with the most serious challenge in history, the American people have been immeasurably heartened in watching the Filipino people practice the ways of democ racy. The recent elections have been a convincing demonstration that, given the opportunity, all men would choose to run their own affairs in their own way in the light of their experience and traditions. Your determination that the Filipino people should have this opportunity and your support of the Secretary, Magsaysay, in implementing this policy should win the admiration of free men everywhere. This growth of democracy in the Philippines is aaditional indication of the great and honorable traditions of Philippine-American friendship." (Continued on page 30) Banking and Finance By G, R. Hutchison Manager, Port Area Branch National City Bank of New York COMPARATIVE statement of condition of the Bank: P494.090 30,000 107,570 44,171 233,844 As of Dec. 31 1949 As of Sept. 28 1951 As of Oct. 31 1951 ASSETS (In thousands of Pesos) International Reserve. . . P460.689 P522.467 P510.391 Contribution to Interna tional Monetary Fund. 30,000 30,000 30,000 Account to Secure Coin113,306 107,570 107,570 Loans and Advances.. . . 77,047 25,168 47,171 Domestic Securities......... 92,197 231,193 230,846 Trust Account — Secur ities Stabilization Fund ............................... 6,848 6,848 Other Assets...................... 20,390 82,812 91,410 6,848 98,861 LIABILITIES Central As of Nov. 29 1951 P793.629 Pl,006,058 Pl,024,236 Pl,015,384 Currency — Notes............ P555.576 Coins............ 74,384 Demand Deposits—Pesos 117,682 P579.305 93,460 231,225 P580.017 93,310 244,705 P573.249 93,257 238,199 “AS government extends its authority over economic affairs, public decisions on specific questions become enormously im portant to individuals and groups. The persons who make or affect those decisions are exposed to great temptations, whether in the form of money, votes, political preferment, threats, personal obligations or attachments, or any other form of pressure. Inside knowledge of coming decisions may enable officials to enrich themselves by speculation or by selling such information to others. ‘All power tends to corrupt; absolute power corrupts absolutely.’ Those words were written more than half a century ago, but they have taken on new significance with recent tendencies in government.”—From the November Guaranty Survey. 13 Securities Stabilization Fund................................. 2,000 Due to International Monetary Fund........... 22,498 Due to International Bank for Reconstruc tion and Development 2,389 Other Liabilities................ 2,636 Capital ............................... 10,000 Undivided Profits............. 6,464 Surplus................................. — 6,848 496 2,383 67,747 10,000 10,905 3,689 6,848 6,848 496 496 2,383 70,833 10,000 11,955 3,689 2,383 74,217 10,000 13,046 3,689 much effect marketwise owing to continued tightness of money. The price of gold in the free market is about un changed and has fluctuated between P112/115 per fine ounce during the past month. In the commercial and industrial section of the market, apart from some improvement in Luzon sugar central shares, the rest of the list shows little change. Fixed interest securities traded in moderate volume around previous levels. P793.629 1*1,006,058 Pl,024,236Pl.015,384 't’here was a further reduction of P16,301,000 in the J- international reserve during November as compared to the previous month. As shown above, present reserves are only P33,401,000 higher than the figure of P460,689,000 reflected on December 31, 1949, which was less than one month after the beginning of exchange control. A recent press report lists the reserves including foreign exchange holdings of other banks at about $300,000,000 which is about $100,000,000 lower than April of this year and about $40,000,000 higher than the December, 1949, figure. Heavy liquidation of import bills has been a drain on the reserves during the past several months. The movement of the sugar crop should begin to ease this trend shortly, although the damage to the crop by a destructive typhoon in the Visayas will considerably reduce the dollar-return originally anticipated. Despite the scarcity of cash, collections continue satis factory, although merchants are asking for generally longer terms of payment. It is anticipated that a sizeable volume of outstanding import licenses which expired December 31, 1951, and are covered by bank credits will not be ex tended. This should help ease the general credit position. Also, the Monetary Board of the Central Bank has taken steps to reduce the extension of credit by banks by re stricting their letters of credit outstandings to not more than 70% of their net foreign exchange holdings plus cash in vault, excess reserves, and securities other than those being utilized as part of available reserves. The Central Bank has recently released new notes of P5, P50, and P100 denominations. It had previously released new Pl and P2 notes. All of these notes were engraved and printed by Thomas De La Rue & Co. Ltd., London. The Economic Research Development of the Central Bank reports total investments in all enterprises for the first 9 months of 1951 at P56,700,000, as compared to an investment of P63,100,000 for the entire year 1950. Capital supplied by Filipinos amounted to P29,700,000, with Chinese investing P22,800,000 and Americans only Pl,600,000. 1951 High 126.-" 49 0 Low 88.11 325 0 16 MINING SHARES 0 0 0 14 2 80 0 0036 5 0 0 0 28 0 17 0 055 0 0 0 017 0 11 120 0 315 0 365 035 13 0 0 028 21 0 08 2 00 0 002 0 0 0 16 0 075 0 0 0 0 59 024 295 002 0 06 50 00 0 17 0 22 02 05 1951 Range High 143.-'" 00 100 00 171 00 50 00 320 27 00 50 36 5 50 Loo 105.t 00 75 00 152 00 100 30 00 320 27 315 0 12 0 i; 105 50 00 00 27 3 0 25 085 0 085 100 00 Manila Stock Market By A. C. Hall Hall, Picomell, Ortigas & Co. November 17 to December 14 THE mining share average has advanced into new high ground, but this is somewhat misleading as a guide to overall market action. The net improvement in the indicator is the result of substantial advances in base-metal equities more than offsetting an easier trend in gold shares. Market sentiment has been decidedly bullish toward the former, but negative as regards the latter group, and some switching from the golds to base metals has been in evidence during the period. General factors affecting the market show little change during the month. Year-end dividend declarations were generally up to best expectations, but this has not had 23 27 00 50 20 27 0 0625 0 012 1 46 40 100 00 105 50 16 00 7 00 1 26 50 94 00 00 00 SO M. S. E. Mining Share Acoje Mining Com pany .......................... Antamok Goldfields. . At ok Big Wedge Mining Co. *........... Baguio Gold Mining Co.............................. Balatoc Mining ComBatong Butiay Gold Benguet Consolidated Coco Grove, Inc........ Consolidated Mines, Inc.*......................... Hixbar Gold Mining Co.............................. Itogon Mining ComI. X.nL Mining com pany .......................... Lepanto Consolidated* Masbate Consolidated Mindanao Mother Lode.......................... Misamis Chromite Panicale Gumaus Philippine Iron Mines, Inc.............................. San Mauricio Mining Co.............................. Surigao Consolidated * Suyoc Consolidated .. United Paracale Min*—Ex-dividend Change Total Sales Up 5.82 11.848,093 325 085 29 07 Up Off .02 .0175 25 23 348,000 1375 135 135 2 60 2 30 30 Off .30 9,200 0035 70 0725 029 28 165 96 048 33 005 10 120 4 0032 65 065 021 26 155 86 045 31 002 00 100 28 365 027 .125 0032 Off 70 065 .0003 Off .015 027 Up .0065 4,725,000 27 Up .015 474,000 155 Off 0525a 90 ' 045 Up Off 31 Off .005 005 Off Off .009 .01 00 120 24 355 027 COMMERCIAL SHARES High 00 Close 138 00 137 00 138 00 100 00 00 100 164 Bank of the Phil. Islands .................. Central ^Azucarera de Central Azucarera de la Cariota................ 165 Central Azucarera de Pilar.......................... ' Central Azucarera de Tarlac....................... China Banking Corp.* Filipinas Cia. de SeManila Broadcasting Co.............................. Manila Wine Met chants, Inc. *........ Marsman Is Co. Inc., Mayon Metal, Class "B”........................... Mayon Metal 7% pref. Class “A”................ Meralco 6-1/2%........ Metropolitan Insur ance Co.....................’ Pasudeco..................... PhHippme .Guaranty Philippine Oil Dev elopment Co., Inc.. Philippine Racing Club Inc................... San Miguel Brewery, San Miguel Brewery. 7% pref................... San Miguel Brewery, 8% pref................... Universal Insurance & Indemnity *............ Williams Equipment Co., com................... *—Ex dividend OVER-THE-COUNTER 100 00 50 00 27 50 23 30 00 27 50 00 00 164 00 46 00 10 00 00 .50 — 330 27 50 27 50 23 Up 20.00 Up .02 Off Off .001 .015 530,000 501,450 290,000 623,500 273,000 131,000 695 272,000 118,500 30,000 195,000 Change Total Sales 120 94 Off Up Up 33b Up 5 50a 25b 11 100 00 27 50 .00 45 Off Off 0625 03 1 36 1 36 39 50 5.00 2.498 .50 .06 .01 552 87.250 95.00 15.00 95 00 00b 00 Up 1.50 94 27 50 1,000 055 Up 36 39 50 9S 00 50 15 00 8.00a Off .06 1,000 Off Up .50 .50 20,928 100 Company Cia. Gral. de Tabacos de Filipinas 6% bonds ........................................... Eastern Development Co..................... East Mindanao Mining Company .... Jai Alai Corp........................................... Manufactures Textiles Industrials de Filipinas, Inc................................. Philippine-American Drug Co............. TayBan Gold, Class "A’'...................... United Philippine Artists..................... Victorias Milling Co. Inc..................... .006 .0075 6.50 Lo> Close Total Sales P1000.00 .006 .0075 6.50 Pl000 00 .006 .0075 6 50 10 165 175 175 14 Credit By C. W. Muilenburg Manager, Credit & Collection Department International Harvester Company of Philippines November.................................................. 42,628,000* 39,268,000 December.................................................. 45,700,000** 41 099,000 Total.................................................. 497,265,000** 458,576,000 Association of credit men, inc. (p.i.)The Association held its regular monthly directors’ meet ing December 18, 1951, and reviewed and adopted proposals for various changes and revisions in process report sheets and reciprocal report forms. It is to be hoped that these revised forms will prove to be of considerable assistance to all members, in that the changes should pro vide more complete and pertinent and helpful information without imposing hardship on members who provide the information. These forms are being printed and will be submitted to all members for approval before they are put into use. The change results from deletions of items no longer applicable and inclusion of others which now seem advisable and other changes to simplify and clarify the reciprocal report itself. The membership of the Association was increased in December by two new members, Warner, Barnes 8c Co., Ltd. becoming an active member as of December 1, 1951, and Atlantic Gulf and Pacific Co. as of December 15,1951. The directors are interested in increasing still further active membership in the Association by admitting reputable and qualified firms. An important function of the Association of Credit Men, which is not generally known to outsiders, is to pro vide protection to members not only in the matter of com mercial credits and directly related matters, but to perform such kindred lines of work with the idea of bringing about mutual improvement and greater security and certainty in business customs and usages of trade. The Articles of Incorporation and the By-Laws and the Code of Com mercial Ethics as adopted by the Association (substantial parts of which have previously been printed in this Journal) clearly point out the purposes of the Association and the methods by which it is operated. The Association has continuously advised its members of specific instances of unfair and unethical dealings and transactions and has attempted to provide advice sufficiently early to all members to protect them against unethical practices. Some of these general practices are dishonest and some illegal.' In this activity the Association has not only protected its members, saved them unnecessary expense, but has served to im prove the standard of practices in the community. The Association is quietly but actively undertaking such steps as it can to improve justice and fair dealing among all people doing business in the Philippines since it is upon this justice and fair dealing that the entire structure of credit is so dependent. ’•Partially estimated. several electric production-records were established ‘■’in December; the highest monthly output; the highest daily output of 1,611,900 kwh on December 21; and a new peak of 114,400 kw also on the 21st. December output was 4,601,000 kwh above December 1950, an increase of 11.2%. This is the highest rate of increase in over a year. Output for 1951 was 38,689,000 kwh above the year 1950, an increase of 8.4%. This compares with an increase in 1950 over 1949 of 38,135,000 kwh, 9.1%. In 1952 it is expected that additional industrial loads will slightly accelerate the rate of increased output. Real Estate By Antonio Varias Vice-President, C. M. Hoskins &> Co., Inc., Realtors Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company REAL estate sales in the Greater Manila area regis tered during the month of December numbered 549, with a total value of P7,871,967, as compared with 457, with a total value of P5,008,804, registered during the preceding month of November. Of the December sales, 168, with a total value of P2,622,303, represented deals within Manila proper, while 381, with a total value of P5,249,864, 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 28,888 square meters on Baranca, Mandaluyong, sold by Ortigas, Madrigal y Cia. to Philippine Industrial Textile Manufac turing Co. for P202.216; Several lots in Calaanan, Caloocan, sold by Toribio Teodoro to Toribio Teodoro & Sons, for the reported sum of P184.308; A property with a lot of 2,782.4 square meters on Taft Avenue, Malate, sold by Vicente Ang to Jesus G. Barrera for P140.000; A whole block situated in North Balut Subdivision, Tondo, sold by the B & I Realty Company to Eduardo Co Seteng 8b Sons for Pl 18,637; A parcel of 3,858 square meters on Otis and Sanciangco streets, Paco, sold by Felipe Juico to the Bulkley Dunton Paper Company for Pl 10,000; and A 2-story building with a lot of 601 square meters at 912-916 Lope de Vega, corner O’Donnell streets, Sta. Cruz, sold by Gabriela de Leon to Beatriz de Tanjuako for P110.000. Real estate mortgages registered in the Greater Manila area during the month numbered 463, with a total value of P9,201,607, as compared with 458, with a total value of P9,255,414, registered during the month of November. Of the December total, 189, with a total value of P3,186,761, represented deals within Manila proper, and 274, with a total value of P6,014,846, were deals within the cities of Quezon and Pasay, and in the suburban towns mentioned above. 1941 Average—16,316,000 KWH REAL ESTATE SALES (From January to December, 1951) KILOWATT HOURS 1951 1950 January...................................................... 40,713.000 37,661,000 February.................................................... 37,066,000 33,828.000 March......................................................... 40,117,000 38,107,000 April............................................................ 39,197,000 35,378,000 May........................................................... 40,405,000 37,611,000 June...................................................... 40,712,000 37,529,000 July............................................................. 42,041,000 38,774,000 August........................................................ 42,817,000 39,872,000 September................................................. 41,852,000 38,791,000 October...................................................... 44,017,000 40,657,000 Manila Quezon City Pasay City Suburbs January.. February March... April.... May........ June........ July......... Sept........ October.. November December 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 2,622,303 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 3,682,829 P743.346 709,598 645,878 487.954 819,779 578.954 497,387 149,318 119,942 652,482 125,130 96,966 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 1,470,069 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 7.871.967 15 16 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 REAL ESTATE MORTGAGES (From January to December, 1951) January.. February. March.. . April.... May........ June.... July......... August... Sept........ October.. November December 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 3,186,761 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 3,587,704 P272.300 869,100 245.760 188,750 372,032 869,144 .351,750 757,300 289.760 682,930 875,858 317,400 Pl,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 2,109,742 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 9,201,607 A commercial building for Northern Motors Inc. estimated at P270.000. On San Fernando, San Nicolas, a 4 story reinforced concrete store and office for Carlos Lim Kalaw, costing P250.000. A Gymnasium for the Far Eastern University, estimated at P200.000. For Francisco Villaroman, a 2-story reinforced concrete residence on Misericordia Street, costing Pl20,000. On Laon-Laan, Sampaloc, for Roberto Laperal, a 2 apart ment building, estimated at Pl00,000. Prices of essential items during the period under review continued to be firm. In general, demand for materials was small, and importers are hesitant about placing new orders for stock for fear of an eventual sliding down of prices. Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of November, the Office of the City Engineer approved building permits for con struction work amounting to P4,819,360. For the same period last year, the volume of work authorized amounted to P3,080,145 in comparison with P3,338,685 in 1949 and P3,984,235 in 1948. Among the big projects that were started during the month under review and which account for the increase in costs over those of the past years were: A 3-story building for the College of Medicine, University of Santo Tomas, in Sampaloc, costing P700.000. On Isla de Romero, (for the Feati Institute of Technology, a 4-story structure estimated at P600.000. A hotel building on Dewey Boulevard for Litton & Company, costing P350.000. Ocean Shipping and Exports By B. B. Tunold Secretary-Manager Associated Steamship Lines TOTAL exports for the month of November of this year showed a small decrease as compared to exports during November last year. This decrease can probably be attributed to a reduc tion in lumber, copra, and desiccated coconut exports. 91 vessels lifted 222,335 tons of exports during the month, as compared to 234,092 tons lifted by 99 vessels during the same month last year. Commodities which have registered sharp increases over last year’s figures for the same month, are: beer from 113 to 430 tons; lead ores from nil to 180 tons; iron ores from 33,705 to 72,785 tons; and sugar cent./raw from 4,687 to 15,370 tons. 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 January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 17 Exports for November, 1951, as compared with ex ports during November 1950 were as follows: November 1951 1950 Alcohol....................................... 83 tons — Beer............................................. 430 ” 113 tons Cigars and cigarettes.......... 23 ” 15 ” Coconut, desiccated............... 6,620 ” 10,476 ” Coconut oil............................... 5,350 ” 7,581 ” Concentrates, gold.................. 387 ” 459 ” Concentrates, zinc.................. 118 ” Copra.......................................... 55,999 ’’ 80,047 ” Copra cake meal.................... 6,419 ” 6,756 ” Embroideries............................ 319 ” 244 ” Empty cylinders..................... 459 ” 543 ” Fish, salted............................... 50 ” 10 ” Furniture, rattan.................. 1,138 ” 704 ” Gums, copal............................. 74 ” 61 ” Gums, elemi............................. 33 ” — Hemp.......................................... 67,847 bales 79,075 bales Household goods............... 161 tons 287 tons Kapok......................................... 42 ” 185 ” Logs............................................. 6,398,047 bft. 4,700,018 bft. Lumber, sawn........................ 4,097,860 ” 12,130,307 ” Molasses..................................... 6,675 tons , 3,648 tons Plywood and plywood products....................................... 26 ” 7 Ores, chrome............................ 15,980 ” 27,150 Ores, lead................................... 180 ” — Ores, iron.................................. 72,785 ” 33,705 Ores, manganese..................... 1.470 ” 5,678 Rattan, palasan...................... 109 " 219 Rope............................................ 171 " 562 Shell, shell waste.................... 84 ” 54 Skins, hides............................... 43 ” 166 Sugar, cent, raw..................... 15,370 ” 4,687 Sugar, refined........................... 197 ” — T obacco...................................... 638 ” 813 Vegetable oil............................ 39 ” 33 Transit cargo............................ 71 ” 982 Merchandise, general............ 414 ” 924 Lumber By Pacifico de Ocampo Secretary - Treasurer Philippine Lumber Producers’ Association, Inc. THE overall export of Philippine logs and lumber during November, amounting to 22,097,071 bd. ft., shows a decrease of 3,335,998 bd. ft. from the October export of 25,433,069 bd. ft. Exports to Japan decreased by 2,533,494 bd. ft., while exports to the United States and Canada decreased by 781,659 bd. ft. Decline in the Japanese demand may be attributed in part to the effect of the poor quality of logs shipped to that country by unscrupulous exporters who are not produ cers. In some cases, misunderstanding as to Philippine and Japanese standards of quality has resulted in the stockpiling in Japan of undesirable species. Lumber producers find it extremely difficult if not impossible to participate in SCAP bidding due to the shorttime notice given the schedules. Participants in the bidding are often dealers who obtain their shipments from un reliable producers. Figures released by the Bureau of Forestry as to the lumber and logs inspected for export abroad during Nov ember, 1951, follow: Volume in Board Feet Shipper Destination Lumber Logs Agusan Timber Corporation Japan 986,000 Anakan Lumber Japan 1,013,419 Company U.S.A. 51,004 824,972 Bislig Bay U.S.A. 207,666 Lumber Company Japan 1,497,678 Basilan Lumber S. Africa 499,310 Company, Inc. Japan 1,859,541 B. R. Valencia & Co., Inc. Japan 567,516 C. Luna Enterprises Japan 549,930 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 18 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 Dahican Lumber Company, Inc. U. S. A. 252,356 Dee C. Chuan & Sons, Inc. Hongkong 72,160 General Enterprises Hawaii 1,700 Getz Bros. 8s S. Africa 61,155 Company England 1,200,014 Gulf Lumber Company, Inc. Japan 491,300 Iligan Lumber Company, Inc. Japan 500,000 Insular S. Africa 665,843 Lumber U. S. A. 460,207 Company, Inc. Canada 22,537 Johnston Lumber Company, Inc. Japan 924,999 Macario Apostol Japan 211,624 Martha Lumber Company, U. S. A. 500,000 Mindoro Planing Mill U. S. A. 20,000 Misamis Lumber Company, Inc. Japan 1,593,534 Nasipit Lumber Company, Inc. U. S. A. 543,764 North Camarines Lumber Co., Inc. Okinawa 1,200,000 North Star Lumber Com pany Japan 1,029,230 Pan Asiatic Commercial Co. Japan 715,297 Schuable & Cuerva Guam , 1.369 Sta. Cecilia Sawmills, Inc. Hawaii 72,946 Sta. Clara U. S. A. 1,200,015 Lumber Company, Inc. Japan 1,149,826 Valderama Lumber Manu facturers U. S. A. 45,124 West. Mindanao Lumber Company Japan 800,116 Woodcraft Hongkong 234,606 Works. Ltd._______________ S. Africa__________ 70,313_____________ Totals. . . ........................... 3,982,750 18,114,321 Lumber Logs Total RESUME of Exports to: (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) Japan........................................ — 13,890,010 13,890,010 United States and Canada. 1,602,658 2,524,987 4,127,645 Other countries..................... 2,380,092 1,699,324 4,079,416 TOTALS............................. 3,982,750 18,114,321 22,097,071 SUMMARY OF EXPORTS DURING NOVEMBER ARRANGED BY COUNTRIES OF DESTINATION INTHEORDER OF VOLUME OF SHIPMENT TO EACH COUNTRY Logs (Bd.Ft.) Lumber (Bd.Ft.) Total (Bd.Ft.) Japan............................................ 13,890,010 — 13,890,010 United States.............................. 2,524,987 1,580,121 4,105,108 South Africa................... ........... 499,310 797,311 1,296,621 England........................... ........... 1,200,014 — 1,200,014 Okinawa.......................... — 1,200,000 1,200,000 Hongkong....................... ............. — 306,766 306,766 Hawaii............................. — 74,646 74,646 Canada............................ — 22,537 22,537 •Guam............................... ........... — 1,369 1,369 Totals...................... ........... 18,114,321 3,982,750 22,097,071 In the local market, wholesale prices, which were quoted at P145 per 1000 bd. ft. for white lauan, P150 for apitong, and P165-P170 for red lauan at the opening week COMPARATIVE STATEMENT OF EXPORTS MADE TO DIFFERENT REGIONS OF THE UNITED STATES DURING THE MONTHS OF OCTOBER AND NOVEMBER, 1951. Period | Lumber in Bd. Ft. Logs in Board Feet States Eastern Gulf States All . Others Total Western States Eastern States Gulf States All Others Total Total1 2,543,096 729,884 385,749 710,523 57,530 68,811 64,736 3,051,111 70,903 1,580,121 1 388,816 399,998 ,299,996 1,788,814 2,524,987 4,839,925 4,105,108 November................................................... *324,991 500,000 1 400,000 Difference (Increase+; Decrease —1 .................. 1,813,212— 324,773 + 11,281 + 6,167+1,470,990— 1,063,825— 500,000 + 899,998 + 400,000+ 736.173 + 734,817— Access to the Markets of the World NATIONAL CITY BANK offers quick access lo world markets through 48 overseas branches of its own — more overseas branches than those of all other -American banks together. long established correspondent important banks throughout the In addition it has relationships with world. THE NATIONAL CITY BANK OF VEW YORK Jirit in World-Wide (banking Branches in the Philippines MANILA Main Branch: Juan Luna Street Port Area Branch: 13th Street PAMPANGA: CLARK FIELD CEBU: CEBU CITY January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 19 of November, gradually receded during the month, closing at P140, P145, and P160-P165, respectively. This gra dual price recession was partly attributed to lack of buying support from dealers, who purchased only in limited quan tities in order to fill immediate requirements with the approach of the inventory period, and to the intermittent presence of price-weakening factors, particularly, the in clement weather. However, the log-bid of the Japan Logis tic Command of SCAP, offering to buy 441,000 bd. ft. of dungon, yakal, bitaog, lamog, makaasim and/or saplungan logs, veneer or peeler log No. 2, and 1,900,000 bd. ft. of lumbayao, tangile, almon, bagtikan, and/or mayapis logs, veneer or peeler log No. 2, which was set on December 26, 1951, may boost local prices of lumber during the months to come. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from November 15 to December 15, during which the industry was working at approximately 55% capacity. The copra market was depressed and nuts were plentiful for desiccators and at almost the lowest prices for the year. Large inventories in the United States as well as the slow movement of the market contributed much to the dull production and little relief is in sight for the remainder of the year and possibly the first quarter of 1952. The following are the shipments for the month of Peter Paul Philippine Corporation................... 1,059,100 Red V Coconut Products, Ltd........................... 1,601,200 Sun Ripe Coconut Products, Inc...................... 864,000 Standard Coconut Corporation.......................... 112,800 Cooperative Coconut Products, Inc................. 245,100 Tabacalera.................................................................. Coconut Products (Phil.) Inc............................. Total........................................................... 8,357,760 'Zamboanga Factory Production..................... 196,400 lbs. Lusacan ” ” ..................... 1,002,160 " 1,198,560 lbs. Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines PRESSINGS in November declined to 58,696 bales and were 6,762 bales under the production of the previous month. Davao accounted for 36,666 bales, or approximately 63% of the total. The 1951 production up to the end of November amounted to 914,762 bales, as against 680,879 bales for the same period last year. The following are the comparative figures for pressings for the first 11 months of 1947 through 1951: — January-November Inclusive Balings 1951 Davao...................... 455,354 Albay, Camarines and Sorsogon.... 221,184 Leyte and Samar... 149,951 All other Non Davao.................... 88,273 Total bales............... 914,762 1950 1949 346,300 199,258 154,009 102,952 111,567 94,475 69,003 66,529 680,879 463,214 1948 1947 185,820 329,981 151,750 222,630 100,108 94,037 102,902 84,853 540,580 731,501 Exports in November amounted to 55,927 bales and were divided as follows: November, 1951: Shippers Pounds Franklin Baker Company.................................... 3,277,000 Blue Bar Coconut Company.............................. 1,198,560* 20 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 PACIFIC MERCHMDISIM [ II I! I'll IHT IIH 449 Dasmarinas Manila EXCLUSIVELY REPRESENTING.... CORBIN LOCK COMPANY AMERICAN RADIATOR & STANDARD SANITARY CORPORATION UNION CARBIDE & CARBON CORP. National Carbon Division “Eveready” flashlights & batteries Linde Air Products Division “Union” Carbide PABCO PRODUCTS, INC. “Pabco” Products AMES BALDWIN WYOMING COMPANY BALL BROS. MASON JARS MALLEABLE IRON FITTINGS CO. FAIRBURY WINDMILL CO. CAPEWELL MANUFACTURING CO. SLOAN VALVE COMPANY BOMMER SPRING HINGE COMPANY COLUMBUS COATED PRODUCTS CO. KEENEY MANUFACTURING COMPANY BADGER METER MANUFACTURING CO. DICK BROTHERS MANUFACTURING CO. CARBORUNDUM COMPANY BADGER FIRE EXTINGUISHER CO. STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING United States and Canada......... United Kingdom and Conti nental Europe............................. Japan................................................. Australia and New Zealand.. . . South Africa................................... Various other countries.............. 19,290 bales 34 23,749 ” 42.5 8,297 ” 15. 2,400 ” 4.5 1,427 ” 2.5 764 ” 1.5 Total....................................... 55,927 bales 100 % The following are the comparative figures for exports for the first 11 months of 1947 through 1951: Exports — January-November Inclusive 1951 United States and Canada.................. 520,665 Continental Europe 150,040 United Kingdom.. 160,654 Japan......................... 120,503 South Africa........... 15,577 China......................... 6,929 India.......................... 5,406 Korea......................... — Australia and New Zealand ............. 4,300 .All other countries. — 1950 1949 1948 1947 358,722 179,805 247,434 485,910 113,947 75,752 86,217 96,147 108,184 63,395 34,485 57,270 93,769 89,483 123,912 9,244 7,980 6,275 3,827 3,657 12,787 13,586 11,650 5,286 7,880 3,325 2,073 5,800 3,100 — — — 1,826 1,914 42 4,528 947 80 3,353 2,060 Total bales.............. 984,074 675,005 412,722 545,538 692,387 The weakness of the previous months continued throughout the period under review—November 16 to December 15. Prices quoted in the United States at the close of the period were on the average 2 cents lower than opening quotations. Demand was generally poor as con sumers displayed very little buying interest due to the rope business going through an almost depression-like period. In the Philippines prices of Davao grades declined P2 per picul while Non-Davao grades registered declines of from P4 to ?5, thus further narrowing the difference between the two grades. Sugar By S. Jamieson Secretary-Treasurer Philippine Sugar Association THIS review covers the period from December 1 to December 31, 1951, inclusive. New York Market. We mentioned in our previous review that the hearings on the 1952 United States consumption quota had begun in Washington on November 29. It was indicated, upon the conclusion of the hearings, that the quota would be announced on or about December 21. As was expected, there was a quiet market during December pending the announcement. Sellers were reluctant to trade, since it was felt that Wash ington was well aware of the need for something being done to stimulate prices for the protection of the domestic sugar industry and would act accordingly. The quota was actually announced after the close of business on December 20 and was set at 7,700,000 short tons raw value—lower than the trade generally had expected—and the accom panying statement left no room for doubt that it was set low purposely for higher prices. Christmas and New Year holidays have intervened to retard the market’s reaction, but indications are that it will now move steadily toward a higher level. The market opened for the month on December 3 with spot at 5.85/ and a sale of a small lot of Porto Ricos, January arrival, at 5.80/. During the next few days several lots of Philippines were sold for December, January ship ment and late December and early January arrival, all at 5.80/, and spot advanced to 5.83/. A large quantity of Porto Ricos was on offer for January , February shipment at the average spot price for January/February but found no takers. On the 12th, 16,000 tons Porto Ricos and Cubas, January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 21 December, January arrival, were sold at 5.75/. On the 13th, 40,000 bags Porto Ricos, December shipment, were sold at the same price, and spot was also 5.75/. For the next few days the market was quiet and unchanged, with a further 24,000 bags Porto Ricos, early January arrival, sold at 5.75/. On the 19th, a distressed lot of 2,500 tons Philippines, due end December, was sold at 5.70/, and set the spot price at the same figure. On the 20th, prior to the announcement of the United States consumption quota above referred to, 2,600 tons Cubas, late January arrival, were sold at 5.80/, and spot advanced to 5.75/. Next day, the market was firmer with spot advancing to 5.80/ and sales of 9,000 tons Philippines, late January arrival, at 5.80/ and 50,000 bags Porto Ricos at the average spot price for January February. When the market re opened on the 26th after the Christmas holidays, it was steadier, with spot at 5.85/. On the 27th, 6,000 tons Philip pines, first half January arrival, were sold at 5.85/, and 4,000 tons Cubas, in the same position, at the equivalent of 5.90/. On the 28th, the last market day of the year, spot was 5.87/, and 6,000 tons Philippines, late January arrival, were on offer at 5.90/, with buyers indicating 5.85/. We give below quotations on the New York Sugar Exchange for Contract No. 6 as of December 28, which were, incidentally, also the peak quotations for the month: March........................................ 5 42c May........................................... 5 52 July............................................ 5 63 September................................ 5 70 November.............................. 5.73 World market Contract No. 4 quotations closed on December 28 as follows: January, 1952....................... 4 90£ March..................................... 4.79 May......................................... 4.78 July.......................................... 4 79 September............................. 4.79 October.................................. 4.79 The world market spot price on December 28 was 4.77/ as compared with 4.80/ on November 30. Cuban sales in the world market during the month included the fol lowing : To Holland—a cargo (quantity not'stated) at 4.87c f.a.s. Operators—quantity not given, at 4.90-4.95c f.a.s. Spain—3,400 tons at 4.95fi f.a.s. Local Market, (a) Domestic Sugar. The market for ordinary centrifugal sugar was quiet and prices dropped during the month, the closing quotations being from Pl3.75 to P 14.20 per picul, ex mill warehouse. There was a good demand for washed sugar and prices advanced, the closing quotations being from P16.75 to Pl7.75 per picul, ex mill warehouse. (b) Export Sugar. The controversial question of sugar exports to Japan continued to dominate and upset the market during the month. On December 12 the Export Control Committee rejected the application of Mr. Filadelfo Rojas for permission to ship 30,000 tons there, and it was hoped that this would close the matter. The appli cant, however, continued to press his case. On December 29, President Quirino held a conference in Malacanan, at which were present the members of the Export Control Committee, the President of the Philippine Sugar Associa tion, the President of the National Federation of Sugar cane Planters, former Speaker Jose Yulo, and Mr. Vicente G. Bunuan, Sugar Administrator. Following the meeting, Malacanan issued an announcement granting permission to persons or firms who desire to export sugar to countries outside of the United States to do so, provided the sugar comes from “C” sugar, this decision being applicable only to the 1951-52 crop. Certain points will require clarifica tion before the effect of this announcement can be definitely determined. Trading in the local market in export sugar for ship ment to the United States was light, but with the improve ment in the New York market following the announcement of the 1952 United States consumption quota, there was more interest, and at the close there were buyers at from P13 to P13.15 per picul ex mill warehouse for prompt delivery. General. 1952 United States Consumption Quota. —The distribution of the quota of 7,700,000 short tons is as follows: Domestic beet sugar................................... 1,800,000 Mainland cane sugar................................. 500,000 Hawaii............................................................ 1,052,000 Puerto Rico.................................................. 910,000 Virgin Islands............................................... 6,000 Philippines..................................................... 974,000* Cuba................................................................ 2,424,571 Other foreign countries (Full duty).. . 33,429 7,700,000 short ton9 •This represents the Philippine statutory quota of 952,000 short tons, com mercial basis, converted into a 96° equivalent. 1951/52 Philippine Crop. The typhoon which swept through the Visayan sugar districts on December 9-10 did & CO., INC. j. m. menzi bldg. reina rcgente cor. solcr • manila tel. 2-79-27 22 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 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 MARY BACHRACH BLDG., Tel. AMERICAN PRESIDENT LINES — IfolA 25th Street, Port Area 3-32-81 considerable damage to the sugarcane crops and properties in all districts. In some districts the damage was worse than in others and it is estimated that the overall crop loss will be about 10%. A revised estimate is in course of preparation. Before the typhoon the total crop was esti mated at 1,189,756.88 short tons. It is reported that the Philippine National Bank has increased its crop loan basis from P7.80 to P9.50 per picul in order to assist planters in repairing the damage sustained to their properties. Tobacco By Luis A. Pujalte Secretary-Treasurer Manila Tobacco Association, Inc. LATEST reports from the different tobacco produc ing regions are that transplanting from seed-beds to the fields has been delayed. In Isabela and Cagayan the delay is from two to four weeks. In Cebu and other Visayan islands transplanting was done in time but typhoon "Amy” damaged most of the transplanted seedlings. For tunately, enough seedlings were still available at the seed beds and new seed-beds were planted so that, though delayed, fields will be fully planted. The dangers of delayed transplanting are that insufficient moisture may stunt the plants and the yield would be shorter and of strong gummy leaf. Then also, should the rains and storms come earlier than usual, rains would wash the leaves prior to harvest which would mean a bad crop—easily susceptible to worms and mold. 't’he specific taxes on cigarettes collected by the Bureau of Internal Revenue during the first 3 quarters of 1951 are as follows: (All Factories in Manila and its Suburbs Caloocan, Malabon, Pasay City, and Quezon City) Month Native Cigarettes Local Virginiatype Cigarettes Total January.............. ............ P 698,620.625 P 6,115,132.00 P 6,813,752.63 February............ ........... 709,035.19 2,318,506.40 3,027,541.59 March................. ........... 731,088.25 2,457,980.20 3,189,068.45 April.................... ........... 693,202,375 2,791,110.70 3,484,313.08 May..................... 800,801.1875 3,734,025.40 4,534,826.59 June..................... ........... 671,114.625 3,850,866.95 4,521,981.56 July...................... . . . 736,114.75 4,325,060.40 5,061,175.15 August................ ........... 664,218.50 3,766,792.40 4,431,010.90 September......... ........... 697,337.75 3,902,057.90 4,599,395.65 Total........... P6,401,533.25 P33,261,532.35 P39,663,065.60 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..................................................... November, 1951 1,832,089 183,054 530 277,410 1,397 58,916 378,758 179,319 5,632,866 23,667 1,428,087 830,742 16,759,864 1,495,718 November, 1950 534,276 100,575 715 216,201 2,507 69,248 34,556 10,903,143 8,575,101 295,304 75,582 6,495,319 263,862 January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 23 Bottling, Misc. (Total)....................... Cleansing and Laundry (Total)......... Entertainment Equipment (Total) . Livestock—bulbs—seeds (Total) Medical (Total).......................... Musical (Total).............................. Office Equipment (Total)......... Office Supplies (Total)........... Paper (Total)....................... Photographic (Total)......... Raw Materials (To£al).. Sporting Goods (Total) Stationery (Total)......................... Tobacco (Total)......... Explosives (Total). . . 173,367 52,914 Firearms (Total)............................................ . . 2,659 812 Ammunition............. 840 812 Hardware (Total)......... 5,477,612 5,576,279 Household (Total)........................................ 854,419 698,631 Machinery (Total)..................................... 2,186,169 751,962 Metals (Total)................................................ 6,432,056 6,962,215 Petroleum Products (Total)........... 75,759,845 61,364,449 Radios (Total)................................... 23,707 19,990 Rubber Goods (Total)................................. 1,015,946 408,824 Beverages, Misc. Alcoholic.................... 8,369 4,189 Foodstuffs (Total Kilos).................... 29,308,603 21,039,216 Foodstuffs, Fresh (Total). . . 187,339 107,026 Apples...................................................... 40,869 25,354 Oranges..................... 10,780 3,696 Onions........................................................... 62,237 31,163 Potatoes..................................................... 22,648 12,131 Foodstuffs, Dry Packaged (Total). 18,490 16,815 Foodstuffs, Canned (Total)........................ 303,675 272,336 Sardines................................................... 136,801 94,895 Milk, Evaporated......... 36,793 89,228 Milk, Condensed....................................... 26,485 23,242 Foodstuffs, Bulk (Total) .......................... 395,472 410,990 Rice............................................................... 78,046 5 Wheat Flour............................. 297,806 371,530 Foodstuffs, Preserved (Total).... 185 1,002 1,779,992 165,280 14,071 9,385 512,444 17,367 45,181 88,526 5,542,557 61,177 757,427 20,195 313,630 469,467 474,322 1,171,189 2,567 8,418 275,938 31,460 44,593 46,205 4,007,060 11,062 297,268 119,964 170,295 81,666 Chucheria (Total)...................... Clothing and Apparel (Total).. Cosmetics (Total)........ Fabrics (Total).................... Jewelry (Total)........... Leather (Total). . Textiles (Total)..................... Twine (Total)............................... Toys (Total)............................................... General Merchandise (Total).......................... Non-Commercial Shipments (Total)............. Advertising Materials, Etc. (Total)............... 91,546 117,209 80,752 793,320 997 72,564 4,228,479 113,395 92,785 501,288 69,002 18,888 47,202 264,627 113,399 1,600,360 180,380 1,562,882 34,615 38,523 425,803 45,175 21,339 Food Products By C. G. Herdman Director, Trading Division Marsman & Company, Inc. THE most important development recently in trading circles is the announcement that the Import Control Commission is to be reorganized, all three commis sioners having presented their resignation. It is also ru mored that in the forthcoming session of the Congress bills will be presented abolishing the import controls as at present administered and placing all such controls under the Central Bank which would limit imports by control of exchange. The import control commissioners who are now resign ing are to be complimented very highly on the task they have performed. Working under great difficulty with an inadequate budget and untrained personnel, they built up a very good organization which during the last few months has been working very efficiently. It is sincerely to be hoped that the new Commission will be allotted a greater budget, permitting it to employ additional trained person nel with adequate salary so that applications for import licenses can be processed expeditiously and efficiently. One of the greatest difficulties experienced by im porters in general for the past two years under the import 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 4 GALINGER, INC. 123 T. Pinpin, Manila • Magallanes St., Cebu City DEPENDABIE 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. KOPPEL—. (PHILIPPINES) BOSTON & !3RD STREETS | N C ■ PORT AREA ’ TEL- 3‘37'53 Branchei: L Bacolod * Iloilo * Cebu • Davao * Cotabato * Zamboanga J 24 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 ★ LUZOS STEVEIKIR lUJ COMPANY, INC. Manila ★ SERVICE WITH SATISFACTION > CUSTOMS BROKERS k WAREHOUSEMEN / TRUCKING / PACKING & CRATING / FREIGHT FORWARDING f SHIP HUSBANDING / CARGO SUPERINTENDENCE C ARMORED CAR SERVICE r AIR CARGO AGENTS / TRAVEL AGENTS / FIELD WAREHOUSING LUZON BROKERAGE COMPANY Derham Bldg. Cables: Telephone: Port Area LUBROCOIN 3-34-31 controls, has been the frequent changes in governing bodies and the personnel. It is to be hoped that the present re organization will not result in another change of policy or in methods of processing. 't'here was very little change in conditions in the local A market as regards foodstuffs during the month of December. Flour has arrived in ample quantity and there are even larger quantities to arrive during January. Stocks actually in the Philippines are more than enough to take care of nearby requirements, and with the flour arriving in January, should be ample to take care of all demands to the end of February at least. Although stocks of flour in sight are sufficient for nearby months, it is very possible it may be difficult later to secure wheat flour in quantity until new-crop wheat becomes available, say next August or September. Re ports are that the Canadian wheat crop suffered very considerable weather damage and that stocks of Canadian wheats suitable for milling high-grade bread-flours are very low. Sales of wheat and wheat flour under the I. W. A. in the United States have been extremely heavy. During the present crop year, that is, since August 1 up to the end of December, 83% of the total United States quota of export wheat and flour under I. W. A. has been exhausted. This leaves only 17% of the total quota still available to cover the 7 months to come before the beginning of another crop-year. It will not be at all surprising if this 17% is exhausted by the end of January, and all flour purchases subsequent to that date would be subject to availability of supplies and would be purchsed outside of I. W. A., which means that the cost would be approximately $1.50 greater per 100 lbs. based on present quotations. Canadian millers are hopeful that they will still be able to take care of extensive quantities of flour under I. W. A. up to the limit of their obligation, but the continued reports of the heavy Canadian wheat damage, apparently from reliable sources, have created considerable doubt regarding this point in the minds of flour importers. r\N evaporated milk there are indications that overstocks existing here for several months past are fast disappearing. Prices are firming up gradually and it ap pears probable that by the end of January importers will be able to sell their stocks of evaporated milk at cost or possibly with a slight profit instead of being forced to take a loss of P4 or P5 per case as during the last 4 months. They are still faced with heavy stocks of powdered milk. During December this situation was aggravated by the action of the Social Welfare Commission which had a sur plus of powdered milk in drums and exchanged this with INSURANCE FIRE - MARINE - CASUALTY ATLAS ASSURANCE CO. LTD. THE EMPLOYERS’ LIABILITY CONTINENTAL INSURANCE CO. ASSURANCE CORPORATION Ltd. LAW UNION & ROCK INSURANCE CO., LTD. INSURANCE COMPANY OF NORTH AMERICA E. E. ELSER, Inc. GENERAL AGENTS Tel. 2-77-58—404 Ayala Bldg., Manila — Cable “ELSINC” January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 25 various merchants for canned meats and other foodstuffs essential in its work. Unfortunately this exchange of goods was done on such a basis that merchants acquiring milk powder from the S. W. C. were able to sell to consumers at prices far below the cost of regularly imported milk and far below the cost of replacement from the United States, and this caused milk importers to take still further losses. It is understood that the S. W. C. discontinued this dump ing of milk on the Manila market when it was advised of the effect of its action. information from California is that the sardine catch -Hn the south during the month of December was ex tremely disappointing. The pack for the present season will be only a small fraction of the average. With the low stocks available, prices are steadily increasing. Supplies available will probably be exhausted early in the year. Stocks still on hand in the Philippines are far in excess of immediate requirements except in the 5-oz. pack, but it appears probable that during the second quarter of the year and until new-pack fish can be secured, which will not be before August, there will be an acute shortage of canned fish in the Philippines. Stocks of canned meats, particularly of Vienna sausage and potted meats, are more than ample. Canned fruits and vegetables, however, are far from sufficient to satisfy demand. There is very little probability of this condition improving at least until the second semester of the year. Fresh fruits and vegetables, both imported and locally produced, are also in very short supply. Textiles By W. V. Saussotte General Manager Neuss, Hesslein Co., Inc. THE new Import Control Commission, under the chairmanship of Ceferino de los Santos, assumed office on January 2. The other members are Augusto F. Espiritu, of the Central Bank, and Demetrio S. Santos, formerly Executive Officer of the preceding Com mission whose chairman was Alfredo Montelibano. De metrio Santos is temporarily occupying the position of Executive Officer in the new ICC. It is the consensus that the former ICC Chairman Al fredo Montelibano and Francisco Ortigas, Jr. and Alfonso Calalang, members, discharged their administrative duties in a highly commendable manner. Chairman Ceferino de los Santos of the new ICC has stated that the new Com mission will continue the good work of its predecessors. On January 6 Chairman de los Santos announced that the Central Bank certified $180,000,000 to be avail able for imports of controlled essentials and controlled nonmacleod am nnii'in of iiiilii'I'iik Hemp Exporters Steamship Agents 207 Myers Building Port Area, Manila EDISON NICK.EL-I HON-ALKALINE STORAGE BATTERIES For Industrial Trucks,—Mining Locomotives PRIMARY CELLS for Communication—Navigation Aid Service, Bailway Signal Write for Application Data and Price to W. A. CHITTICK & CO., INC. Philippine Distributor 31 Ilornero Salas, Ennita, Manila AT FLYING DEALERS TIDE WATER ASSOCIATED OIL COMPANY MANILA • CEBU • DAVAO • ILOILO • LEYTE 26 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 BUILD WITH JACKBILT BLOCKS Your Answer to Gives you: Fire Safety Low Upkeep WeatherTightness low cost housing Lifelong Durability Low Insurance Rates Vermin I’roofness Sole Distributors NORTON & HARRISON COMPANY 814 ECHAGUE, MANILA Tel: 3-34-11 Tel: 3-34-12 NEUSS, HESSLEIN & CO., INC. 75 WORTH ST., NEW YORK, N.Y. FOREMOST SUPPLIERS OF TEXTILE FABRICS THROUGHOUT THE WORLD for 86 years a nd FOREMOST SUPPLIERS OF TEXTILES TO THE PHILIPPINES FOR 51 YEARS. ♦ essentials for the first 6 months of 1952. This is $32,000,000 less than the Central Bank allocation for the last 6 months of 1951. While the Central Bank has not explained the reason for the reduced appropriation, it is believed that it may be attributed to a report that $45,000,000 remained unallocated by the former ICC from its appropriation for the last 6 months of 1951. The New Import Control Commission also announced that government agencies, old importers, add producers are now allowed to apply for advance import licenses for the first 6 months of this year. Producers, it is reported, will be given advance licenses equal to 100% of their total importations and consumption of raw materials for local production during the first 6 months of 1951. Old importers will be allowed 20% of their imports of critical items under the category of controlled essentials and in the instance of other items under controlled essen tials not specified as critical and controlled non-essentials, old importers will be allowed 10% of their imports during 1949. Applications for import licenses from new importers will be received at a later date to be announced by the ICC in the near future. Since no textile commodities ap pear on the list of critical items, the advance licenses will be for 10% of 1949 imports both in the instance of rayons and denims which are controlled essentials (but not critical) and all other cotton textiles which are con trolled non-essentials. These percentage allowances compare with 20% in the instance of controlled essentials and 10% in the instance of controlled non-essentials which were allowed by the ICC during the last 6 months of 1951. TNu.'iNo December arrivals from the United States total sled 26,778 packages, representing an increase of about 6,000 packages in comparison with November’s arrivals. The arrivals from the United States included 13,477 pack ages of cotton piece goods, 2,684 packages of rayon piece goods, 4,338 packages of cotton remnants, and 870 pack ages of rayon remnants. Included also were 2,716 packages of thread. Arrivals of all textile items, including made-up goods, from countries other than the United States totalled 3,009 packages. Included were 886 packages from China, 455 from Japan, 853 from Europe consisting mainly of cotton sewing thread, and 815 packages from India consisting entirely of Hessian cloth and/or jute bags. Total arrivals from all countries during the month of December amounted to 29,787. This is the largest total number of packages to arrive in a single month for at least 3 years and is about 9,000 packages more than the average annual monthly arrivals of 22,600 packages during 1949. The heavy December arrivals are mainly against the old PRISCO licenses covering decontrolled cottons. As a consequence, the bulk of the goods against PRISCO licenses has now arrived and while January arrivals are expected to be heavy, there will probably be a noticeable drop in arrivals beginning February. • FAUST SUITINGS • FLATTERY PRINTS • WALDORF PERCALES • SEINE TWINE & YARNS • AGUILA DENIMS • CARABELA CHAMBRAYS • COMMANDER BROADCLOTH • COTTON & RAYON POUND-GOODS HALL, PIWELL, ORTIGAS & (0. INVESTMENT BROKERS, DEALERS & UNDERWRITERS ------------------------- MANILA OFFICE:---------------------------209 ROSARIO ST. MANILA PHONE 2-97-31 Cubic Address “NEHESCO” MEMBERS MANILA STOCK EXCHANGE 201 AYALA BLDG. MANILA January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 27 't'here were no material changes in prices during DecA ember both in the local market and in New York. The seasonal Christmas trade, while substantial, was not ac companied by any increase in local prices due to abnormally heavy stocks. Legislation, Executive Orders, and Court Decisions By E. E. Selph Ross, Selph, Carrascoso & Janda ON December 14, 1951, the Philippine Supreme Court rendered a decision (Tan vs. de la Fuente, G.R. No. L-3925) defining “wholesale” and “retail”. The plaintiff was a merchant engaged in the importation and sale of dry goods. The question involved was whether his sales were at retail and subject to the municipal license fee on retail sales. The Court said: “The test to determine whether a particular sale of goods or mer chandise is wholesale or retail is the use made or to be made by the purchaser of such goods or merchandise. If it be for resale at profit, the goods being unaltered when resold, the quantity of the goods sold being large not to be used by the purchaser or in excess of the require ments of his business and the merchant selling the goods being habi tually engaged in the sale of such goods in large quantities to his cus tomers, then it may be deemed wholesale. Otherwise, it is retail.” The conclusion to be drawn from this ruling seems to be that if the textiles were bought for resale without being altered or processed, it was “wholesale”, but if the textiles were to be made up by the purchaser into suits, or otherwise altered or processed, before being sold, then the original transaction was a sale to a consumer and there fore “retail”. tn another case (Espuelas vs. the People of the PhilipJ-pines, G.R. No. L-2990, December 17, 1951) the Court ruled that the freedom of speech secured by the Constitution does not confer an absolute right to speak or publish without responsibility whatever one may choose; that while it is the right of each citizen to criticize his Government, such criticism must be specific and con structive, reasoned and tempered, and not a contemptuous condemnation of the entire .government set-up. In the case of Abeto vs. the People of the Philippines, G.R. No. L-3935, December 21, 1951, the defendant advertised the reservation of sugar and informed a pros pective customer the sugar would arrive within a month, and required a deposit. The customer made the deposit required for 300 sacks of sugar. The shipment failed to arrive. The depositor demanded return of his money. He was given a check which was not paid. After dishonor of the check the defendant paid a small amount in cash and gave a promissory note for the balance. The defendant was convicted of estafa. The Supreme Court acquitted, stating: “It is clear that an advance payment is subject to the disposal of the vendor. If the transaction fails, the obligation to return the advance payment ensues but this obligation is of a civil and not of a criminal nature. The transaction is rather of the character of a token, pledge, or earnest money, contemplated in Article 1454 of the old Civil Code, which only gives rise to civil liability.” AGENTS BROKERS CHARTERERS TELEPHONES 3-34-20 3-34-29 American Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama 203 Myers Bldg. Port Area Manila Cable Address: “AMERSHIP” IMPORTERS EXPORTERS Keep Your Costs Down — Use Pasig River Bodegas GENERAL BONDED WATERFRONT WAREHOUSES Accessible by WATER or LAND Low Storage and Insurance Rates Lighterage Service 145 M. de Binondo Tel. 2-63-10 COLDS . INFLUENZA . HEADACHE DENGUE FEVER • CHILLS QUI-BROLAX ANTI-COLD‘ANTI DENGUE TABLETS Destroys the cold Infect ion in (he system in a few hours. Relieves headache and lever and tones up the system generally. Acts as a mild laxative, opens the bowels and cleanses the intestinal tract. Made In The Philippines Bv BOIE-WATSOVIL LABORATORIES 28 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 ]<IO or more per minute. 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COST OF LIVING PRICE INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1948 TO 1951* (1941 = 100) Bureau of the Census and Statistics Manila 1948 All 1 (100) Fond 1 «°“'e 1 Cloth- Fuel, Light and Water (7.73) Miscel laneous (14.84) ing Power of a Peso (63.43)1(^9^1 ing (2.04) January........ . 390.7 427.6 453.9 224. 5 304.6 249.9• .2560 February.... . 369.8 394.0 453.9 223.18 301.1 254.4 .2708 March........... . 349.4 361.0 453.9 214.15 308.1 255.91 .2862 April.............. . 354.6 374.1 453.9 209.4 289.7 254.8 .2820 May.............. . 349.8 360.2 453.9 214.12 289.7 271.6 .2859 June.............. 354.3 370.4 453.9 205.12 283.2 262.9' .2823 July............... . 356.4 374.2 453.9 201.13 281.6 262.4 .2806 August......... . 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September. . . 370.6 397.2 453.9 199.12 279.6 260.6 .2698 October........ . 374.9 404.0 453.9 204.8 283.2 257.9> .2668 November... . 368.7 394.4 453.9 202.0 281.6 258.7 .2712 December... . 365.9 389.9 453.9 202.1a 282.4 258.9' .2732 1949 January........ . 363.8 386.8 453.9 202.1) 279.0 258.9i .2750 .February.... . 343.8 355.5 453.9 203.1) 277.5 258.9' .2909 March........... 345.3 358.2 453.9 202. () 276.3 258.5 . 2896 April............. . 348.7 362.6 453.9 197.( 287.5 257.1 .2868 May.............. . 348.8 362.8 453.9 197.;2 287.5 257.1 .2867 June........ 349.0 362.9 453.9 203.9 287.5 257.2 .2865 July............... . 351.7 374.0 453.9 194.;> 265.8 240.5 .2844 August......... . 337.5 351.2 453.9 196.-J 266.6 241.2 .2963 September. . 333.6 345.1 453.9 190.3 264.8 243.1 .2998 October .... 332.9 343.3 453.9 199.9 264.8 245.0 .3004 November... 339 6 356.1 453 9 191.1I 258 4 239.8 .2945 December . . 329 6 335 9 453 9 202. <) 259.5 256.2 .3035 1950 January .... 332.3 336.8 453.9 238. C1 253.1 269.3 .3010 February.,. . 336.9 340.2 453.9 233.3 257.8 284.1 .2969 March........... 339.0 341.4 453.9 236.7 257.8 292.6 .2950 April.............. 331.8 328.6 453.9 237.7 252.9 301.2 .3015 May............... . 320.2 308.6 453.9 244.7 249.7 309.1 .3123 June.............. . 323.1 310.9 453.9 243.5 249.7 319.1 .3095 July................ 332.0 322.4 453 9 252.6 249.7 328.7 .3012 August.......... 334.4 325.9 453.9 258.7 251.1 328.4 .2990 September . . . 341.3 335.0 453.9 317.4 252.5 327.5 .2930 October......... 352.8 351.1 453.9 337.3 249.7 334.5 .2835 November ... . 354.1 353.2 453.9 322.8 249.7 335.9 .2825 December. . . . 352.2 350.5 453.9 325.2 249.7 334.8 .2839 1951 January......... 355.2 355.0 453.9 331.5 249. 7 334.6 .2816 February.... 358.4 359.8 453.9 342.8 249.7 334.4 .2790 March........... 352.4 349.3 453.9 379.4 248.8 334.3 .2838 April............... 361.2 362.6 453.9 398.6 247.5 334.7 .2769 May............... 365.0 367.0 453.9 410.4 247.5 339.5 .2740 June............... 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........... 365.1 371.4 453.9 354.0 247.5 329.1 .2739 September.. . 363.0 369.0 453.9 356.4 247.5 325.4 .2755 October......... 358.1 361.1 453.9 350.4 247.5 326.7 .2793 November . . .. 351.1 351.1 453.9 343.8 247.5 323.3 .2848 December . . . 349.0 348.9 453.9 335.2 247.5 319.4 .2865 • Average number of persona in a family = *.9 n • For explanatory note, see the August Journal. MOTOR SERVICE CO., 11. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 1101 CASTILLEJOS, QUIAPO, MANILA • TEL. 3-21-70 January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 29 Philippine Safety Council By Frank S. Tenny Founder and Executive Director Activities connected with summarizing safety matters for 1951 and instituting the 1952 “national safety movement” are mak ing Council officials wish for more hours in the day. It is gratifying, however, that safety has taken hold as it has done, and this gives en couragement with which to face current tasks. The change in the Manila police administration may foreshadow im provements in the traffic situation as well as in public safety matters generally. The Council is keeping a close liaison in this matter and has offered its assistance to the new Mayor and Chief of Police. Considerable approbation has been received in connection with the mes sage intended for the NALATROA convention which was widely pub lished and editorialized last month. Responsibility of transportation op erators for the driving practices of their drivers was stressed. Consider able editorial comment was recently noted which demanded re-testing of for-hire drivers before the issuance of new licenses. It seems inevitable that public opinion will soon cause a drastic change in the policy con nected with the licensing of both drivers and vehicles. The Council has submitted appropriate recom mendations to proper authority four years consecutively. New Council members include Woodworks, Inc., and Allied Inves tigation Bureau, Inc. This brings the number of local company mem bers to 61. During the month of January a special campaign will be undertaken to increase the number of insurance company members, which now stands at 13. Additional interest has been evinced in the new payroll delivery plan, which is receiving the support of business firms and insurance companies alike. Accident experience over the holi days was somewhat disappointing, with many persons being killed or injured in avoidable “accidents”, against which public warnings had been issued. Illegal and negligent handling of explosives contributed to the mishaps, as well as reckless driving, firing of weapons, brawls, and altar-candle fires. The bright side was however reported by Council clients who reported no unusual incidents over the holidays. Taxicab experience, in particular, was very good. This appears to prove that accidents can be prevented, provid ing proper attention and preparation is given in advance. Current Council projects are about the same as those reported in the No, we don't use a “crystal ball” to foresee the future needs for electricity in the area we serve. Part of our every-day job is planning for the future needs of the communities we serve in order to assure a ready, adequate, dependable supply of power—wherever and whenever needed. The new Rockwell Generating Station is one of the visible re sults of the “planning ahead”... building MORE POWER for your future needs . . . helping Manila and its environs grow and expand . . . having enough power on hand for all homes, industries and stores to progress and prosper. There’s MORE POWER for you—now and in the future. Journal last month. A noticeable slowness in obtaining answers from government agencies has held back some of these plans. A new member’s service now being created is a “Dri ver’s Accident Reporting Kit”, a group of simple forms and instruc tions designed to reduce the confusion frequently resulting from incomplete or incorrect reporting procedures. Free safety inspections have been offered to the Philippine Navy. Re cent communications from the In ternational Association of Chiefs of Police promise an even closer liaison with that professional body. “I see MORE POWER in your FUTURE!” This Journal is one of the best media for advertising addressed to business and plant managers MANILA ELECTRIC COMPANY 134 San Marcelino Manila 30 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 The Government... {Continued from page 13) Dec. 11—The President tells the Cabinet he will fly to Cagayan de Oro on the 13th and proceed from there to Camiguin to inspect the evacuation and relief work there and to look into the possibility of a permanent eva cuation and the resettlement of the people on public lands in Mindanao. Hundreds have already been ferried to the mainland by planes and ships including a Japanese ship, the S.S. Anes Maru. Camiguin Island is some 100 square miles in area and the population numbered around 50,000. Dec. 12—President Quirino releases his reply to President Truman: “Dear Mr. President: The Filipino people join me in tendering their deepest appreciation for your mes sage of December 9 on the growth of democracy in Complete Line of Quality MYERS WATER SYSTEMS to Meet Every User's Needs terns to suit any and all conditions —with much that is new and ad vanced to offer you. Come in, see the new “HN” Series Ejecto that provides greater capacities at higher pressures . . . Vortical Type Ejecto for Deep Welli Newl "HN" Ejecto Cottage Waler Syrtem Self-Oiling Bulldozer for Shallow Welli Reciprocating Type for Shallow Welli THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Cor. Tacoma & 2nd St. Port Area, Manila Telephone: 3-35-41 the Philippines. Your telegram strengthens our con fidence to sustain, as we are determined to do, our democratic institutions in order to survive the peril that threatens freedom everywhere. Please be assured that we shall cherish your solicitous interest in this regard as a true measure of the friendship and material loyalty that will always bind our two peoples." Reported that the typhoon "Amy” was the worst to hit Cebu in 60 years, taking at least a score of lives and destroying 70% of the houses built of light materials and un roofing 30% of even the strong-material houses. Samar is reported also to have been hard-hit, with 95% of the population of Guiuan homeless. The President issues a proclamation proclaiming the existence of a public calamity in Camiguin as a result of the volcanic eruptions there, and in the provinces of Samar, Leyte, Cebu, Iloilo, Antique, Capiz, Negros Occidental and Here’s the place to get that really modern water system to fit your needs. Whether you prefer or re quire an Ejecto or Reciprocating type, we have it—the finest ever built . j . quality throughout . . . the right size for your farm and household needs. Myers Water SysCOMPLETE SERVICE, Tool Serial Ejecto for Shallow or Deep Welle and other features that give you much more for your money. See the many other quality Myers Water Systems—and get a new idea here of what complete service can mean to you. Branch office at: Bacolod, Occ. Negros Oriental, Bohol, Romblon, and Masbate because of the typhoon “Amy”; the procla mation declares Act No. 4164, which severely penalizes hoarding and profiteering, in full effect. The President addresses the opening plenary session of the Educators’ Congress, held in celebration of the 50th anniversary of the public school system. Dec. 13—The President postpones his flight to Mindanao until the weather clears but orders the immediate release of P10.000 worth of building materials for the construc tion of temporary shelters on Camiguin to house the thousands of people driven from their homes. Further reports are received of the damage done by the typhoon to crops, dwellings, and public buildings. Announced that at yesterday’s Cabinet meeting, the President instructed Secretary of Public Works Sotero Baluyot to start the restoration work on the former prison cell of Jose Rizal in Fort Santiago immediately, ordering the release of P30.000 for the pur pose. Rizal Day, the 30th, will be observed in nation-wide programs which will stress that Rizal was the Philippines’ highest embodiment of love of country. Dec. 14—The President calls a special meeting of the Cabinet to read the reports of Secretary of Health Dr. Juan Salcedo and Social Welfare Commissioner Asuncion Perez on the extent of the destruction and loss of lives as a result of the Hibok-Hibok eruption and the two typhoons," Wanda” and "Amy”, Secretary Salcedo stating that some P393,000 will be needed for the immediate relief of the sufferers; some 8,000 people have now been evacuated from Camiguin to Bohol and Cebu. The President states he will leave for the south on Monday, the 17th. A report by Sugar Administrator Vicente G. Bunuan on the matter of the authority given Filadelfo Rojas to sell 30,000 tons of sugar to Japan, which has been protested against by the sugar industry, is referred to the Secretary of Justice for an opinion. The President spends almost 2 hours at the side of Speaker Eugenio Perez whose operation for the removal of kidney-stones was suspended because of his heart condition. Dec. 15—The Council of State at a meet ing takes steps to make available approxi mately Pl,000,000 to meet the needs of disaster victims. The Price Stabilization Corporation (PRISCO) has set aside P250,000 worth of foodstuffs and other supplies to be sold at cost to the sufferers. On Ca miguin some 266 bodies have been officially recorded as recovered, with some 800 more missing and presumed dead. Some 26,000 have been driven from their homes. Ty phoon" Amy” reported so far to have caused the deaths of over 600 people in the Visayas. Dec. 17—The President observes Cami guin from the air, then flies to Cagayan, from where he takes the presidential yacht Apo to Camiguin island. He is accompanied by a number of officials, including Secretary of National Defense Ramon Magsaysay, Secretary of Public Works Baluyot, Ad ministrator of Economic Coordination Sal vador Araneta, Social Welfare Administrator Asuncion A. Perez, Philcusa Chairman Jose Yulo, and several members of his own family. Dec. 18—The President and his party inspect the Maria Cristina Falls hydro electric and fertilizer plants which are about 30% completed. He then proceeds to Dansalan and later reboards the Apo and heads for Tubod from where he will visit Capatagan to inspect the EDCOR project there, after which he will return to Ozamis City. Dec. 19—The President visits the Koronadal and Ala Valley settlement projects, makes a brief stop at Davao City, then proceeds to Del Monte, where he spends the night. January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 31 Dec. 21—The President reviews some 5,000 troops, representing all services, at Camp Murphy, on the occasion of the com memoration of the Armed Forces’ 15th anniversary. The President orders the immediate sus pension of three more Negros Occidental municipal mayors, two chiefs of police, and a number of policemen who are charged with the torture and subsequent murder of Moises Padilla. A total of 27 men have so far been so charged, including the suspended Governor Rafael Lacson. The Department of Foreign Affairs calls attention to a previous press release to the effect that the Department is ascertaining the character and extent of Philippine pre war public and private claims against the German Government and German nationals for possible presentation to an international body which may be set up in the future; claims arising out of, during, or after the war are not included. Dec. 22—Executive Secretary Marciano Roque hands Social Welfare Administrator Asuncion Perez a Pl50,000 check for aid to the Hibok-Hibok and typhoon sufferers, released from the funds of the Charity Sweep stakes. Announced that Malacanan has rejected the recommendation of the Manila Electric Company that the Valuation Committee be sent to the United States at the Company’s expense, in connection with the preparation of a report on the rates being charged for electric service. Under-Secretary of Justice Ceferino de los Reyes states that the most expeditious procedure would be to require the Company to bring the books, now in the possession of Gilbert Associates, Inc., to Manila. The Valuation Committee was created by order of the Public Service Com mission to ascertain the value of the prop erties of the Company; the members are Pedro V. Aguilar of the General Auditing Office, Pedro S. Talavera of the Public Service Commission, and H. B. Reyes, VicePresident of MERALCO. Dec. 28—The President approves the arrangement, negotiated by the Central Bank with the U.S. Reconstruction Finance Corporation, for a 10-year extension of the $60,000,000 loan of the Corporation to the Philippine Government in 1947, authorized by Congress in 1946. Under the present terms the loan is payable in 20 equal instal ments, paid semi-annually; the first instal ment amounting to P3,000,000 plus interest of 2% is due on January 1, 1952. The Cabinet approves the extension of an invitation to the ECAFE to transfer its regional office from Bangkok, Siam, to Manila. The ECAFE will hold its next plenary session in Rangoon, Burma, on January 28, 1952, and will then consider the proposal. The Sth session of the ECAFE will be held in Rangoon from January 11 to February 9, and a Philippine delegation, headed by Secretary of Commerce Cornelio Balmaceda, will attend it. Dec. 29—The President visits Speaker Perez for over an hour before the latter boards a Philippine Air Lines plane to the United States where he will undergo surgical treatment at Johns Hopkins hospital. Bal timore. Announced that in a conference with the President, attended by sugar millers and planters, it was agreed that “C” sugar (excess production of the regular quota of individual planters or millers over and above their total United States export quota and do mestic quota) may be exported to countries other than the United States on license of the Sugar Quota Administration. A resolution adopted by the Occidental Negros Lawyers Civic Club is received at Malacanan approving “the stay of a task force of the Philippine Army in this province until complete restoration of democratic processes shall have been effectively attained." A gift shipment of 70,000 dolls is received from the Friends of the Philippines Society in Japan, according to an announcement of the Department of Foreign Affairs; the dolls were made by Japanese school children and will be distributed by Malacanan to school children and charity organizations here. Dec. 31—The President receives Mayor elect Arsenio H. Lacson who, as the first elective mayor of Manila, takes office to morrow, and it is announced that the Pres This interior picture shows a portion of the B. F. Goodrich Recapping Plant at Grace Park. Its present capacity is more than 100 tires a day. Fifty-two Filipino supervisors and skilled craftsmen are employed—all trained in factory methods. Recapping has saved the Philippines many thousands of dollars by prolonging the life of truck and passenger car tires ... thereby reducing new unit importations. Tire costs may be cut in half by planned tire conservation and expert recapping. The. men at the B. F.. Goodrich Recap Plant have the equipment, the training, the 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. RECAP PLANT 205 Rizal Ave. Ext., Grace Park, Caloocan, Tel.: 2-72-23 BF Goodrich Goodrich International Rubber Co. 13th and Atlanta Sts. Port Area MANILA TEL 3-37-21 ident has designated Col. Dionisio Ojeda, former commanding officer of the 10th Bat talion Combat Team in Korea, as chief of police of Manila. The President receives donations in the amount of over P56.000 worth of relief goods (rice, milk, food, clothing, and medicine) for the sufferers from the Hibok-Hibok erup tion and the typhoon “Amy”. The relief project was sponsored by the Philippine Chinese General Chamber of Commerce and other Chinese associations. The Pres ident expresses his gratification. The President extends the traditional executive clemency to 24 prisoners who are granted conditional pardon, on recommenda tion of the Board of Pardons and Parole. MORE THAN 100 TIRES A DAY 32 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 “LET YOUR HAIR DOWN’’ CHRISTMAS and New Year cards were received by the Journal and the editor from a large number of Chamber member-firms and individual friends, here and in the United States, including Am bassador and Mrs. Myron D. Cowen, the Hornbostels, Mary Ann Seman, now in the United States, former secretary-stenographer to Mrs. WilliTODAY'S 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 tiltcr. Call 5-42-71, or If rite P. O. Box 285, Manila, For Free Estimates CADWALLADER PACIFIC COMPANY 337 Perez Street, Manila Borromeo Street, Cebu City mont, Mr. and Mrs. Salvador P. Lopez, Mr. and Mrs. Alf Welhaven, “with renewed thanks for your ex cellent Journal”, and many others too numerous to mention. Also there were calendars and calendar-pads, automatic pencils, and, best of all, a few boxes of cigars and bottles of whisky. Herbert and Janet Walker brought the editor a .small bottle of what is a rarety, here at least, the drink called mead, with which he had only a literary acquaintance up to about one minute after he received the bottle. Mead is a fermented drink made of honey and is mentioned in all the great classics of Europe from Homer on. It is still made commercially in England. The liquor sent to the editor was made by the Walkers themselves some years ago and tasted (it’s all gone by this time) like a fine dry sherry. This sur prised him, he said, as he had always imagined mead was a thickish, foamy drink, probably too sweet. Ah, well, live and learn! And how pleasantly! “That’s the kind of object lesson I still gladly take,” he added. One wouldn’t think, perhaps, that the Journal is of any special interest to churchmen, but we had a letter recently from a clergyman in the Mountain Province who renewed his own subscription and that of a gentle man in New York City, the Assistant Treasurer of the National Council of the Episcopal Church, who, he informed us, “has written me a number of times expressing his ap preciation of the Journal and for the information concerning conditions in the Philippines which it gives him”. We much regret that Mr. Luis J. Reyes resigned as editor of the Jour nal's “Lumber” column, effective this month. Mr. Reyes, presently Philippine representative of Penrod, Jurden & Clark Company, formerly of the Bureau of Forestry and the author of a standard work on Philip pine woods, has conducted a most informative column for around two and a half years, and we are sure that all Journal readers will miss his presence in the “Business View” pages. However, Mr. Reyes him self recommended and introduced to the editor, as his possible suc cessor, Attorney Pacifico de Ocampo, Secretary-Treasurer of the Philip pine Lumber Producers Association, Inc., and Mr. de Ocampo, expres sing his willingness to undertake the task, the editor, with relief and gratitude, all but fell on his neck. One happy circumstance in the new arrangement is that the office of the Lumber Producers Association is right in the same building that the Chamber offices are in,—in fact, one floor, and directly, below. That will make for easy contacts. We published a note about Mr. Kenneth B. Day’s resignation as President of the Philippine Refining Co., Inc., and his dropping of his January, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 33 Journal “Copra and Coconut Oil” column as he plans to spend much of his time in the United States after this, though he remains with the Company as Chairman of the Board of Directors. He will be mis sed too,—the editor says that, al though he has no direct personal interest in copra or coconut oil, he always enjoyed reading over Mr. Day’s “copy” for the fine New Eng land English. In this case, the Journal, very happily, has Mr. H. Dean Hellis to fall back on, newly elected Vice-President of the Philip pine Refining Company. Mr. Hellis has in times past conducted the column in Mr. Day’s absence, so he will not be a new hand at the work. During the past month, however, circumstances combined to make it difficult for Mr. Hellis to take over the column for this issue of the Journal. He has promised to make up for this in the next issue. Down’ column, and a hard job it is, but getting it sometimes, as in a letter such as this, to have it end with a post-script like this, look at this, at the end, scribbled in on the last available quarter-inch of space, see for yourself, blankety-blankblank-blank. . .” We saw in good plain handwrit ing, and with every word under lined :— "No part available for the HairDown column.” “There ought to be a law,” groaned the editor. “There is a law, in fact, but it does not go far enough. The law says that the receiver of a letter STEEL FABRICATORS CONTRACTORS is the owner and that the writer has no right to demand its return. Yes, the receiver or owner may keep it, or tear it up, or sell it for the auto graph, but publishing it is another matter, especially if it were con struable as slanderous or libelous or likely to expose the writer to public contempt or hatred. Publishing a letter may also be adjudged to be a violation of privacy, at least, so I understand the blankety-blank legal ‘dope’ on the matter. So when a correspondent definitely warns against the publication of his letter, he has the receiver, even if he is an editor, by the short hairs. . .” Readers will find the “Mining” column missing also and this is because Mr. N. N. Lim had not sent in his “copy” and was still out of town when this issue of the Journal went to press. “ t>l an KETY-blank-blank-blank! ” We ■L^were startled and looked at the editor. He was waving a letter in his hand and his face was red up to the roots of his. . . well, up and over and down the nape of his neck. “What burns me up,” he shouted, “what with looking for good stuff for the ‘HairENGINEERS MANUFACTURERS MERCHANDISERS RIVER & HARBOR WORK SHIPS’ REPAIRS Operating: MACHINE SHOPS FOR CONSTRUCTION AND REPAIR FOUNDRY FOR CAST IRON, DRASS & BRONZE STRUCTURAL STEEL FABRICATING SHOP MARINE REPAIR SHOPS WELDING SHOP WOOD PRESERVING PLANT I I ADVERTISE in the JOURNAL ¥ It goes straight to the desks of leading government and business execu tives every month ATLANTIC, GULF & PACIFIC CO. OF MANILA (PHILIPPINE CONTRACTORS SINCE 1905) EXECUTIVE OFFICES • ENGINEERING DIV. STRUCTURAL 4 MACHINE SHOPS Barrio Punta, Sla. Ana, Manila Tela: 6-75-31 • 6-75-32 • 6-75-33 MERCHANDISE SALES DIVISION Robert Dollar Bldg., Muelle de San Francisco 4 23rd St., Port Area, Manila Tel. 3-36-61 (Connecting all Depts.) 34 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1952 “Very short hairs, in your case,” said we. “How did you ever come to call that Journal column the ‘Hair-Down’ column?” “Go ahead, enjoy your own pitiful and pathetic so-called sense of humor, but here is a letter worth printing, with nothing dangerous in it to writer or recipient. . . or rather,” the editor went on with a grim, almost a ferocious look, “here was a letter that was worth printing,”—and vi ciously he tore it up. With teeth clenched, he hissed: “That at least I can do!” The editor has been quite perked up of late about the way his small book, “A few poems and essays”, published last month, has been re ceived. Only a few formal reviews of it have so far appeared in the press, but these were favorable. Most of the local critics have not as yet spoken,—perhaps, joshed the editor, they are somewhat in doubt that the poems are poems because they can understand them! Then he told us about a Manila banker who had told him he would try to read the book, though he generally did not read poetry because he could not under stand it; the editor then said he would give him a peso for every line in his book that he could not under stand. Up to now the banker has not presented any claim. “Why don’t you make that a general offer?” we suggested. “It might help the sales.” “I would be perfectly willing to,” .answered the editor, “except for the fact that there would be such great difficulty in checking the claims for bona fides and veracity. You know the trouble the United States-Philippines War Damage Commission had in respect to that. Where would I get the necessary personnel? No, you see, I could trust the banker; besides, he wouldn’t take any money from me; I don’t think he would.” “You’re on top of the world, this morning,” we said. “Guess you haven’t seen this.” We fished a small clipping out of our drawer and read the following to him aloud: “ 'And the venerable A.V.H. Hartendorp, now practically a relic, perhaps a precious one, already has a collection of essays and verse. . “You’re spoofing me,” said the editor, red-faced. “That’s the deliberate statement of one Amando D. Manalo, in a short column in This Week (Manila Chro nicle) of December 16, on the subject of books available or soon to be available suitable as gifts. . .” “Relic!” groaned the editor. “Venerable,” we said, laughing heartily. “Perhaps,—but only perhaps, a precious one,” we added, slowly draw ing the line out, making each golden word count, as the editor winced at each syllable. “And here’s something else, far ther down in the column: ‘Hartendorp’s book is beautifully printed,’ we accented the ‘printed’.” “Never mind that,” said the edi tor. “He didn’t mean it the way you read it. . . But relic. . . even a venerable relic, no, no . . . it must be that he just does not know me ... He must be one of the younger post war fellows. . . probably has seen me only from a distance or mistook some old codger for me.. Yeh, that must be it.” C. F. SHARP & COMPANY, INC. 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