The American Chamber of Commerce Journal Vol. XXVIII, No.2 (February 1952)

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XXVIII, No.2 (February 1952)
Issue Date: Vol. XXVIII, No.2 (February 1952)
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extracted text: Published monthly in Manila by the American Chamber of Commerce of the Philippines 424 San Luis Street — Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as secopd 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. L. Manning, President; J. H. Carpenter, Vice-President; D. O. Gunn, Treasurer; F. C. Bennett, J. T. Hicks, J. A. Parrish, E. E. Selph, Harry C. Stevenson, and Paul H. Wood. Mrs. Virginia Gonder, Executive Vice-President; I. T. Salmo ., Secretary Vol. XXVIII February, 1952 No. 2 Contents Editorials— Ambassador Spruance.......................................................................................................................................................................................................................... George VI. Elizabeth II....................................................................................................................................................................................................................... The Proposed Rural Credit Banks..................................... '............................................................................................................................................................. The New Chamber Officers and Board Members....................................................................................................................................................................... Annual Report of the President, American Chamber of Commerce of the Philip pines......................................................................................................................................... Ocean Freight Rate Determination........................................................................................................... The Tall Axe-Man (Poem)........................................................................................................................... J. A. Parrish............................................................ Associated Steamship Lines................................... R. P. T. Coffin......................................................... 39 40 40 44 46 49 51 The Business View— The Government..................................................................................................................................... Banking and Finance......................................................................................................... Manila Stock Market............................................................................................................................ Credit.......................................................................................................................................................... Electric Power Production................................................................................................................... Real Estate............................................................................................................................................... Ocean Shipping and Exports (Annual figures)......... Lumber (Annual figures)................................................................................................................... Mining (Annual figures).................................................................................................................... Desiccated Coconut (Annual figures)......................................................................................... Copra and Coconut Oil (Annual figures).................................................................................. Sugar........................................................................................................................................................... Manila Hemp (Annual figures).................................................................. Tobacco (Annual figures).................................................................................................................... Imports................................................................................................................................... Food Products......................................................................................................................................... Textiles (Annual figures)..................................................... .............................................................. Legislation, Executive Orders, Court Decisions............................................................... Cost of Living Price Index (1948-1952)................................................................................................... Philippine Safety Council............................................................................................................................. American Association of the Philippines................................................................................................. The “Let Your Hair Down” Column....................................................................................................... Official Sources........................................................... G. R. Hutchison...................................................... A. C. Hall.................................................................. C. W. Muilenburg................................................... J. F. Cotton.............................................................. A. Varias.................................................................... B. B. Tunold............................................................. P. de Ocampo............................................................. N. N. Lim .................................................................. H. R. Hick................................................................. H. D. Hellis.............................................................. S. Jamieson............. .................................................. F. Guettinger......................................................... L. A. PujALTE.................................................................. S. SCHMELKES.................................................................. C. G. Herdman....................................................... W. V. Saussotte...................................................... E. E. Selph................................................................ Bureau of the Census and Statistics.................... F. S. Tenny................................................................ 53 54 55 56 56 56 57 57 58 60 60 63 65 66 66 67 68 70 72 73 73 75 50 CENTAVOS THE COPY X Mobilgas Il Mnhiloiis Service Stations STANDARD-VACUUM OIL COMPANY PHILIPPINES Editorials “ ... to promote the general welfare” In the appointment of Admiral Raymond Ames Spruance, retired, as Ambassador to Ambassador the Philippines, Spruance the United States Government gives new emphasis to its long established policy in sending men here who may be counted among the greatest Americans. In this the United States honors itself as well as the Philippines, but also honors such men, because Philippine-American relations have been of high import ance for over fifty years and are increasingly so. Admiral Spruance, born in Baltimore, Maryland, July 3, 1886, is now sixty-six years old, was a "battleship admiral” as distin guished from an “air admiral”, and is of five-star rank, standing at the very top of his service with such men as Nimitz, Mitscher, and Hal sey. He was always brilliant and at one time was the youngest fourstar officer in the Navy. He is known for his skill in various bran ches of engineering as well as a master of tactics. Gilbert Cant, in his book, "The Great Pacific Vic tory”, published in 1945, gave this pen-portrait of him: “Spruance is the same height as Nimitz (5 feet inches), but 20 pounds lighter. Nearing 60, he still does not wear glasses; his brown hair is suffused with gray, but still dark. The face is strong and cold; the chiseled nose is long and slightly hooked; the mouth is thin and straight; the jaw line is truculent; the piercing eyes are bluish gray. Somehow, they give the impression of a man determined to be fair, of OjfiC'il Pbmtrofb, U. S. Naij This photograph of the new United States Ambassador to the Philippines, ADMIRAL RAYMOND AMES SPRUANCE (U. S. Navy, retired) was taken some years ago when the Admiral was still on active navy duty. one who would neither seek nor show favor. It is a countenance that would look well on a Supreme Court justice. . . Aside from walking, swimming is his only recreation; symphonic music and reading are his only relaxation ...” In another paragraph, Cant said of him: "... he is an incredibly effi cient piece of machinery in human form,” and he went on to say: “One of the sternest tests of a man’s capacity for command is his ability to delegate authority to competent subordi nates. Spruance has this ability in a high degree. If an officer assigned to him does not measure up to his standards of compe tence, the officer is quickly transferred. Con sequently, Spruance is surrounded with men in whom he has confidence. He is not known ever to have lost an hour’s sleep, even on the eve of battle, through inability to delegate tasks to the proper subordinates.” As a ranking officer of the forces which defeated the Japanese in the great naval battle off Midway Island in the central Pacific, June 4 to 6, which resulted in the defeat of the enemy fleet and heavy enemy losses, Spruance won the U. S. Distin guished Service Medal. That same month he was made Chief-of-Staff of Admiral Chester Nimitz, Com mander-in-chief of the Pacific Fleet. Other of his exploits during World War II included the invasion of the Marshall Islands in January-February, 1944; the capture of Saipan, Guam, and Tinian and the first Battle of the Philippine Seas, in June, 1944, and the capture of Iwo Jima (February-March, 1945) and of Oki nawa (April-May-June, 1945). Following the War he was appointed President of the 39 Naval College and he held this position until his retirement in June, 1948. As a fighting man, Admiral Spruance played a lead ing part in winning the “Great Pacific Victory” during the years from 1942 to 1945. Now, in 1952, he is called out of retirement to play a part in conserving the fruits of that victory, through the protection and encouragement of the democratic forces in this part of the world,—in which task, we may add, the maintenance and promotion of American business interests established here must continue to be a factor of the highest importance. Death takes the humble as it takes the great, and there is always loss and grief. But when the great die, greater numbers of people and greater George VI interests are affected and the sense of Elizabeth II loss and sorrow is the more widespread. The death of George VI, King of Great Britain, Ireland, and of the British Dominions be yond the Seas, is an event of world consequence and is felt everywhere. While it is true that in a limited or constitutional monarchy, such as the British Commonwealth, the King reigns but does not rule, George VI was a brave and good man who, during the fifteen years of his reign, which in cluded some of the most perilous years in British history, is generally regarded as having exercised a profoundly steadying and strengthening influence both in the Govern ment and over his people. He is succeeded by his elder daughter who will be known as Elizabeth II, she being a namesake of the great Queen Elizabeth who ascended the throne in 1533, also, as the present Queen, at the age of twenty-five. The first Elizabeth was a shrewd and hard-eyed mo narch whose reign was tempestuous but who made Eng land great. She was never married and died the last of her line. Elizabeth II is a modern-minded young woman, train ed for her exalted position by wise counsellors. She was married in 1947 and now has two children. She is prob ably the loveliest Queen the .British people ever had. Because of the constitutional developments over the centuries, if for no other reason, Elizabeth II Will never have the direct personal authority which the first Eliza beth exercised; yet she may still wield perhaps an even stronger influence because she will be so much better known to so many more millions of people the world over, besides her own, than ever knew or felt the power of the Elizabeth who gave her name to her period in history. May the young Queen’s character and charm be aus picious of her reign and the happiness and prosperity of her people. The Journal has just received a thick folder from the Central Bank which is referred to in a letter of transmittal from Mr. R. Marino Corpus, Director The Proposed °f the Department of Loans and Credits, Rural Credit as the “Rural Credit Bank Kit”. Banks This kit contains a proposal for the establishment of rural banks, signed by Governor Miguel Cuaderno, together with a draft of a bill to be submitted to the Congress, and a complete set of samples of documents whith would be necessary for the organization of these banks, such as articles of incorpora tion, by-laws, common and preferred stock certificates, basic rules and regulations for management, and various sample forms covering applications for loans, inspector’s reports, real estate and chattel mortgages, mortgage can cellations, deeds of assignment, pledge contracts, and even samples of deposit and loan ledger sheets, “ticklers”, cash vouchers, receipts, deposit and withdrawal slips, signature cards, loan summaries, and, lastly, a sample monthly bul letin, entitled The Rural Banker. Nothing seems to have been overlooked. The degree of attention given to detail in the prepara tion of these sample forms is indicated by the fact that they are all of a size easily mimeographed. In a preface it is stated: “Awareness of lack of printing-plant facilities in many localities, dictated the choice of size of these sample forms, which is the legal-size. This size paper can be put out by any mimeograph machine . . . Fur thermore, cognizance of the lack of steel filing cabinets in many local ities makes the choice of the legal-size paper, as the maximum size for these sample forms, ideal for filing purposes. They can be easily kept in legal-size envelopes (15$ * each) or in legal-size Manila folders (10fi each), which are readily available at any stationer’s.” These sample documents and forms are all as short and simple as possible, and it is stated with reference to this: “Appreciation of the ‘psychological misgivings’ about lengthy and bulky legal forms, arising out of ancient fears due to sad experience with them, has led to the decision to reduce legal forms, such as the mortgage instruments, to size (i. e., legal-size). This means incorpo rating only the basic provisions.” We make mention of these externalia because they are interesting but chiefly because they are evidence of the very practical approach the Central Bank is taking in proposing, under the Bank’s auspices, a bill which, if enact ed, will be entitled the “Rural Credit Extension Act”. Certainly, it is high time for an approach of this na ture to what has been a pressing problem for many years, during which the Government took various measures which have all come to almost nothing. The explanatory note to the proposed bill summarizes a history of these measures which were initiated as far back as 1907. The Agricultural Bank of the Philippine Islands was established in 1908, but it met with only limit ed success and was merged with the Philippine National Bank in 1916. A cooperative credit system had meanwhile been established which was shifted from one government agency to another,—the Bureau of Agriculture, the Bu reau of Commerce, the National Trading Corporation, and finally to the National Cooperatives Administration in 1941,—the year war broke out in the Pacific. “The records showed 571 associations organized in 43 provinces. Today, in the records of the Cooperatives Administration Office (suc cessor to the NCA), appear 144 of these associations which are being kept alive only as account records of unpaid debts. Actually, in terms of operation, none of these associations are active today.” Today, according to the explanatory note accom panying the bill, agricultural credit is dispensed principally by the Philippine National Bank and the Rehabilitation Finance Corporation, but the bulk of the Bank’s loans are for commercial purposes and the Finance Corporation loans are mainly ten-year rehabilitation loans and not crop loans, which are what our small farmers need. The Bell Survey Report, published in October, 1950, under the second of its seven basic recommendations, which dealt generally with the improvement of agricultural production, urged “that rural banks be established to pro vide production credit for small farmers”. In that part of the Bell Report dealing with “Fiscal, Investment, and Credit Policy”, it was stated: “Some of the Manila banks have given consideration to the open ing of branches in all of the larger cities. Their decision not to open branches where facilities do not now exist may be accepted as an indi cation that such branches would not be profitable at this time or that other obstacles appear too great. The country is still predominantly one in which business is done by currency rather than check and it may not be possible to attract deposits sufficient to permit a bank to pay its way. But even if the preference for doing business through banks rather than with currency should grow slowly, it will be a veryjlong time before the necessary banking facilities in small communities will be profitable. Nor is the loan business that might be done in rural 40 0 D company s.n.r.l opportune Ml El««trl° trso.nt. r .ntlr*1’ Botoe"1 Md kr»tloa »in' onrt »>•» 1M8. op«r*tl° th. !»•« 12 55,000 op.r.tio” tn® f . Th. perform t.ctor UKhtU Mt.a wf**' Br.t.a 20,000 KW al Electiic Hydrogen Cooled Turbine-generators in stalled at the Rockwell Plant at the Manila Electric Company. Switcngear for these units was also supplied by General Electric. Day and night these G-E generators hum ... creating power for Manila. General Electric is proud to assist in the industrial development of the Philippines. Through the manufacture of electrical apparatus such as the turbine-genera t jr described here, G-E is underscoring its reputation as the world’s foremost name in electrical equipment. Your General Electric representative will be glad to help you with every electrical need or problem. GENERAL ELECTRIC (P.i.).INC. PORT AREA MANILA communities of a type attractive to urban banks accustomed to lend predominantly on the basis of security in the form of land and real property. “Even if the operation of branch banks supervised by head offices in Manila can not be made profitable, it may be that with sufficient encouragement small independent banks with modest capital provided locally would be able to operate at low cost and pay their way. If rural banks are established to provide agricultural credit, it might be possible to provide credit for moderate sums to small farmers and to other local business enterprises through the same facilities. The bank ing authorities in the Philippines should give consideration to the steps that should be taken to develop adequate credit facilities in smaller communities to meet the special needs of local enterprise.” In still another place, under the heading, “Agricul ture, Fisheries, and Forestry”, the Bell Report referred to the Chinese middlemen who have for many years in effect served as the only rural bankers the people had, outside of the landlords and the usurers. “Commonly, he [the tenant farmer] gets advances from his land lord .. . This is a very old arrangement but suffers from many abuses, one being its use by the landlord to tie the tenant to the land by the overburden of debt. The alternative for the tenant and the only source of credit usually available to the homesteader or other small farmer is the Chinese merchant. The Chinese merchant then becomes the marketing agency for the crops of the farmer who is indebted to him, or for the farmer’s share of such crops. That is when the real interest is exacted, in the price paid for the crop. Most small farmers never experience a time when they are out of debt. “While the credit-marketing system through Chinese merchants is expensive, it should not be too summarily condemned. The Philip pine rural economy would collapse in most communities if the Chinese merchant were suddenly removed from the scene. This is true not only because of the credit he extends, but because most farmers are not equipped to stbre enough rice or com for their own use. If they attempted to keep and store even part of the crop, a great proportion of the rice and corn would spoil on account of high moisture content or the ravages of insects. The small farmers therefore sell their crops to the Chinese merchants and then later buy back again the grain they require for their current consumption. The Chinese rural merchants perform a service which is not now obtainable elsewhere. “The only solution to this problem is to provide credit for small farmers on tolerable terms. Such a credit system could be established in the form of small rural banks located at strategic points within easy access of the more important agricultural regions. Responsible own ers or tenants would be eligible to borrow for periods related to the needs of crop production. With a farm extension service, the farmer would be made aware of the availability of such credit, and his natural' fears in'dealing with powerful and distant government agencies could be overcome. “The rural banks should have associated with them a farm man agement service which would provide advice on farm management and the proper use of credit for production and marketing .. .” It will be recalled that the establishment .of rural banks was also strongly urged by the Advisory Committee on Large Landed Estates Problems, composed of Manila realtors, which had been invited by Dr. Salvador Araneta, then Administrator of Economic Coordination, to submit its recommendations. Mr. C. M. Hoskins, Chairman of the Committee, wrote in regard to this recommendation {Journal, June, 1951): “Hand in hand with landed estates redistribution, the Committee calls for better enforcement of tenancy laws and better rural-credit facilities. It advocates converting the rural money-lenders into rural bankers by giving them rediscount facilities sufficient to make rural banks highly profitable. The Committee criticizes past attempts to extend credit to farmers as being centralized in Manila or entrusted to municipal employees without sufficient training. It believes that rural banking facilities should be operated at the grass-roots level by capital ists who know local values and local credit reputations. Manila inter vention should be largely in the rediscounting of the loans made by the rural banks.” The Journal's columns are not the place for a detailed and expert study of the proposed bill, but its inclusive, yet concise, and very clear provisions certainly tend to per suade the reader that this bill would supply the solution to the long-standing problem. Section 2 of the bill declares it to be the policy of Con gress: “To promote and expand the rural economy in an orderly and effective manner by providing the people of the rural communities with the means of facilitating and improving their productive activities. Toward this end, the Government shall encourage and assist in the establishment of a system of rural credit banks which will place within easy reach and access of the people credit facilities on tolerable terms. The Department of Agriculture and Natural Resources and other ap propriate agencies or instrumentalities of the Government shall, in cooperation with the Rural Credit Bank, provide advice on farm man agement and proper use of credit for production and marketing.” Section 3 provides that the Monetary Board of the Central Bank shall have the power to authorize, guide, and assist in the establishment of rural credit banks in places and localities which, in its judgment, offer no adequate credit facilities to small farmers, and to supervise their operation. Section 4 provides that at least 60% of the capital stock of any rural credit bank shall be held by Philippine citizens and that all the members of the board of directors shall be Philippine citizens. Section 5 provides that loans and advances extended shall be primarily for the purpose of meeting the normal credit needs of any small farmer or farm family owning or cultivating, in the aggregate, not more than 24 hectares of land devoted to agricultural production and that pre ference shall be given to the applications of farmers whose .cash requirements are small; the Monetary Board shall prescribe the terms and conditions. Section 6, however, provides that with a view to insuring a balanced rural economic growth, the banks may, within the limits and conditions fixed by the Monetary Board, devote a portion of their funds to meeting the normal credit needs of rural enterprises or industries other than agricultural. Section 7 provides that to provide supplemental capi tal to any rural credit bank until it has accumulated enough capital of its own, or to stimulate private investment, the Rehabilitation Finance Corporation may, upon certifica tion of the Monetary Board of the existence of such need, subscribe to the capital stock from time to time in an amount equal to, but not exceeding, the total capital in vestment of the private share holders. Shares of stock issued to the RFC, however, may at any time be paid off at par and retired in whole or in part if, in the opinion of the Monetary Board, the bank has accumulated enough capital strength to permit such retirement. RFC shares may also be paid off and retired if an offer is received from private sources, acceptable to the Monetary Board, to replace the RFC investment. Stock held by the RFC, under the terms of this section, shall be made preferred only as to assets upon liquidation and shall share in the dividend distribution without preference. Section 8 provides that the RFC is, in its turn, au thorized to obtain from the Counterpart Fund, established under Republic Act No. 604 * , such amounts as it may re quire for the purpose of subscribing to the preferred shares of the rural credit banks. Section 9 provides that if there are no public invest ments such as those permitted to the RFC, only one class of stock shall be issued by any rural credit bank, and the powers of the Monetary Board shall extend to prescribing the amount, value, and class of stock issued by any such bank. Section 10 defines more precisely the power which would be granted to the Monetary Board of the Central Bank to supervise the operation of the rural credit banks, which shall consist— “in placing limits to the maximum credit allowed any individual bor rower; in prescribing the interest rate; in determining the loan period and loan procedures; in indicating the manner in which technical assist ance shall be extended the rural credit bank; in imposing a uniform accounting system and manner of keeping the accounts and records .. .; in undertaking regular credit examination . . ; in instituting periodic surveys of loan and lending procedures, audits, test checks of cash and other transactions .. .; in conducting training courses for personnel... ; and, in general, in regulating the business operation of the rural credit bank.” •An Act appropriating: PSO.OOO.OOO to constitute a Counterpart Fund for any assistance which may be received by the Government of the Philippines from the Government of the United States through the Economic Cooperation Administra tion of the United States. 42 February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 43 □ver 40 years i the Philippines INTERNATIONAL flNTERHATIONAl TRUCKS INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES “My loads supply vital needs H my goal is security for the nation I am an International Truck! Haulina food from Baguio To help build a stronger Philippines, International Harvester provides mechanized Farming with McCormick International Farm Equipment; modern transportation with International Motor Trucks; industrial power with International Power Units. Section 11 provides that with the written permission of the Monetary Board, any rural credit bank may (a) accept savings and time deposits; (b) open current or checking accounts; (c) act as correspondent for other finan cial institutions; (d) act as collection agent; and (e) re discount agricultural paper with the Philippine National Bank or the Rehabilitation Finance Corporation or other banks and their branches and agencies. “The Central Bank shall specify the nature of agricultural paper deemed acceptable for rediscount.” A number of the following sections would bestow certain special privileges on the rural credit banks. Section 12 provides that all such rural banks, with assets not ex ceeding P200.000, shall be exempt from all taxes of what ever nature as well as charges and fees required in filing articles of incorporation or filing suit, complaint, or any action with any court. Section 13 provides that the funds and property or any share of stock in any rural credit bank shall be exempt from attachment or execution during its legal existence. Section 14 provides that the technical assistance extended to the rural credit banks by the Mone tary Board shall be without cost to theip. Section 15 pro vides that any justice of the peace, in his capacity as no tary-ex-officio, shall render free of charge to any person applying for an agricultural or crop loan not exceeding F500, either in administering the oath or in acknowledging instruments relative to such loans. Section 16 provides that any register of deeds, also, shall make proper entry in the books and records of his office, free of charge, of any instrument relative to a loan of not over P500. Section 17 provides that the rural credit banks would be exempt from the obligation of contributing to the maintenance of the Department of Supervision and Examination (of Banks). Section 18 provides for the bonding of all officers and employees of the rural credit banks who would have the handling of funds or securities amounting to Pl,000 in value or more; the amount of the bond would be deter mined by the Monetary Board. Section 20 provides for a penalty of a fine of not more than P2.000 and imprisonment of not more than one year for certain enumerated wrongful acts committed either by officers, employees, or agents of the rural banks or by ap plicants for loans and borrowers. These acts include, for the bank personnel, not only embezzlement or misappro priation of funds, but the unauthorized making', issuing, or assignment of instruments, making false entries in any bank report or statement, disclosing confidential informa tion, accepting gifts, fees, or commissions, over-valuing any security, and appearing as guarantor, indorser, or surety for any loan granted by the bank. It will be noted how this proposed bill incorporates many of the suggestions contained in the Bell Report and perhaps also some of those advanced by the committee of Manila real estate men. While most of the Orient is plagued by problems of over-population and under-production, and of absentee land-ownership and usury, the Philippines is in a rela tively better position because the country as a whole is not over-populated and absentee land-ownership is con fined to only a few of the provinces. In the Philippines, landed estates redistribution, while important, is not the chief problem. The chief problem is, as it has been for years, that of a proper extension of rural credit facilities. There is the money, too, if only its use can be properly directed. Well set-up, well managed, well supervised rural credit banks, largely locally financed, would provide what would seem to be an answer. We extend our best wishes to this “Suggested plan for rural credit extension, under the auspices of the Central Bank of the Philippines.” At the 1952 annual meeting of the American Chamber of Commerce of the Philippines, held on the Chamber premises on January 25, and The New Chamber very well attended, the election Officers and of members of the Board of Di Board Members rectors resulted in the reelection of Messrs. J. H. Carpenter, J. T. Hicks, J. A. Parrish, Harry C. Stevenson, and Paul H. Wood, and the election of four new members, Messrs. F. C. Bennett, D. O. Gunn, J. L. Manning, and E. E. Selph. At the organization meeting of the Board, held on January 28, Mr. J. L. Manning was elected President, Mr. J. H. Carpenter, Vice-President, Mr. D. O. Gunn, Treas urer, and Mrs. Virginia Gonder, Executive Vice-President; Mr. Isabelo T. Salmo was re-elected Secretary. The following are the business connections of the officers of the Chamber and of the other members of the Board: Mr. J. L. Manning, Vice-President and Treasurer, Manila Trading and Supply Company. Mr. J. H. Carpenter, Vice-President and General Manager, Col gate-Palmolive Philippines, Inc. Mr. D. O. Gunn, President and General Manager, H. E. Heacock Company. Mr. F. C. Bennett, Vice-President and Sales Manager, Atlantic, Gulf & Pacific Company of Manila. Mr. J. T. Hicks, General Manager, Liggett & Myers Tobacco Company, Philippine Branch. Mr. J. A. Parrish, General Manager, Standard-Vacuum Oil Com pany, Philippines. Mr. E. E. Selph, Member of the firm, Ross, Selph, Carrascoso & Janda. Mr. Harry C. Stevenson, Owners’ Representative for the Orient, Pacific Far East Lines, Inc. Mr. Paul H. Wood, Vice-President and General Manager, Inter national Har-'ester Company of Philippines. faith, let us dare to do our duly as we understand it.”—LINCOLN 44 February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 45 Will your funds and cash receipts fall prey to a clever thief or a determined burglar with his heavy tools? Don’t think it can’t happen to you. It can, if you make the dangerous mistake of trying to hide your money, or of putting it in an obsolete safe, or a safe designed for fire protection alone. Many firms have suffered staggering losses — even have been forced to close — because they underestimated the intelligence and skill of modern thieves. Hiding places can be found. Safes can be forced open. But there’s one way you can be sure of positive protection for your cash. Keep your money in. a Mosier burglary-resistant Money Chest inside a Mosier fireresistant Safe. Every Mosier Money Chest is made of armored steel, and is as burglar-resistive as modern scientific design can make it. Fire Could Put You Out of Business! An actual survey shows that of firms whose accounts receivable, inventory records and other vital business papers are destroyed by fire, 43% never reopen. In many such cases, these valuable records were kept in old heavy-walled safes that acted as incinerators. But modern Mosier Safes are thoroughly insulated and constructed to resist fire, explosion and impact, as certified by the Underwriters’ Laboratories, Inc. Look for the Underwriters’ Label on your safe. 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. > Mosier Safe d 320 Fifth Avenue, New York 1, U.S.A. Cob/er.- "OMOPtATE NEWVORK" WORLD S LARGEST BUILDER OF SAFES AND VAULTS . . . FOUNDED IN 1948 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. For sale by: ELIZALDE TRADING CORPORATION 380 Tanduay St. Tel. 3-86-71 Annual Report of the President American Chamber of Commerce of the Philippines, Inc. WITH the exception of one member, Mr. Earl Carroll, your present board of directors is composed of members who were elected at the annual meeting of the Chamber held on January 26, 1951. In the voting for directors at that meeting, Mr. Carroll polled the 10th largest number of votes and consequently, following the resignation of Mr. T. M. Knight in February, was taken into the board at the regular meeting held on March 14. At the organization meeting of the board held on January 29, 1951, the following directors were selected as officers of the Chamber for the ensuing year. President.............................. Vice President.................... Treasurer............................... Secretary............................... Executive Vice President. J. A. Parrish C. R. Leaber F. J. Moore Isabelo T. Salmo Marie Willimont The first meeting after the new board became organized was a special meeting called to hear from Mr. Merle D. Thompson, then a member of the board of the Philippine American Chamber of Commerce who was visiting in the Philippines as one of the principals in the Insular Lumber Company. Mr. Thompson’s message to us was along the line of promoting better cooperation between the Philippine American Chamber of Commerce in New York and the American Chamber in Manila, to the end that being advised of our problems here more com pletely and promptly, the New York organization might be of greater assistance to us. We believe that meeting inspired new and expanded thinking among your board members with regard to the benefits of a closer tie in with the Chamber functioning inNew York and Washington. standing of problems presenting themselves to American business and nationals. Trade groups in the United States, such as the National Foreign Trade Council, the Philippine American Chamber of Com merce in New York, and the Commerce and Industry Association of New York, have been in constant correspondence with our Chamber and when necessary and expedient, have assisted from that end in the solution of difficulties being experienced by American business here. The office staff of the American Chamber of Commerce has been able to obtain almost immediately the decisions, regulations, revisions, and resolutions of the Import Control Commission. These have been mi meographed and sent promptly to all members of the Chamber as well as to the trade correspondents in the United States and to interested chambers of commerce there. It is in this manner that the entire mem bership of the Chamber has been kept informed of action taken by the Import Control Commission which affected their business. The following are some of the principal activities of the Foreign and Domestic Trade Committee during the year with respect to import control. Further organization of the Chamber for the year 1951 produced the following committees with their respective chairmen. These men have given unstintingly of their time and attention to the affairs of the Chamber for the year which closes today. Legislative Committee............................................... Tax Committee............................................................. Industrial Relations Committee........................... House Committee........................................................ Civic Affairs Committee..................... Membership Committee........................................... Foreign and Domestic Trade Committee. . . . Paul H. Wood Kenneth B. Day R. J. Baker j. T. Hicka H. C. Stevenson Earl Carroll J. H. Carpenter Finances—The attached statement reflects the improvement which has been made in the finances of the Chamber during the past year. Membership—Additions and withdrawals in membership and totals at the end of 1951 are given in the following figures: Membership January 1, 1951.................................... Added in 1951....................................... Withdrawn in 1951............. ...... Non Associate Resident Total 71 4 200 35 ? ft £ December 10, 1951.............................. 144 39 4 186 The decrease in associate memberships has been due largely to the change from associate to active status of some members and departures for the United States or elsewhere of other associates. The increase in active members has been due to the above-men tioned change from associate to active status and new applications for membership. A review during the year of the active memberships revealed that, with a very few exceptions, all of the eligible organizations, acceptable to the Membership Committee, were members of the Chamber. Meetings—During the year your board held 12 regular and 3 special meetings in the conduct of the Chamber’s business. Foreign and Domestic Trade Committee—By far the most active committee during the year has been the Foreign and Domestic Trade Committee headed by Mr. J. H. Carpenter. The second year of import control in the Philippines gave little encouragement to economic conditions which had already become chaotic and unpredictable. Difficulties confronting business in general, and particularly business based on imports, increased throughout the year. The extension of the original import control law to carry on through 1951, plus the change in members of the Import Control Com mission, the transfer of authority concerning certain commodities from the old Import Control Board to PRISCO and then back to a new Import Control Commission, brought added confusion to business. Complaints and appeals for assistance from local business houses, as well as from exporters and suppliers from abroad, have been endless. These appeals have been channeled through the Trade Committee of the Chamber, carefully studied, and where feasible, they have been taken up with the appropriate agency. In the cases where import problems were common to all nationalities alike, join representation to the Import Control Commission has been made by the Phlippine, Chinese, British, and American chambers. Conferences have been held at various times at the American Embassy between representatives of the American Chamber of Com merce and officials of the Embassy in an effort to reach a better under A meeting was called by the Commission on April 18, 1951, at the Import Control offices for a discussion of the responsibilities transferred from the Import Control to PRISCO. About one hundred business representatives were present. Chairman Alfredo Montelibano gave a graphic report of conditions obtaining in the I.C.A. when he and his new board took over from the outgoing board. Representatives from the American Chamber of Commerce had previously prepared a list of five questions to present to Chairman Montelibano. This list and the answers were circularized immediately to all members of our Cham ber and will, therefore, not be commented upon in this report. About the middle of the year it was suggested by the I.C.C. that the offices of the chambers of commerce be utilized in the processing of applications for licenses. For good reasons this proposal was opposed by the representatives of the American Chamber of Commerce present. The Import Control Commission also asked for donations of office equipment from members of chambers of commerce and the loan of personnel for use of the I.C.C., because funds granted by the Govern ment to staff and equip an office were said to be insufficient to handle the tremendous work of the Import Control Administration. On April 28, 1951, Chairman Montelibano called representatives of all chambers of commerce to a meeting at the offices of the Import Control Commission for a discussion of the working schedules and the value of import items for quota and non-quota goods that remained with the Import Control Administration, in order to present a more realistic reapportionment by item. A copy of the working papers of the Department of Economic Research of the Central Bank was given to all present at this meeting. Trade representatives agreed that the I.C.A. should use the list as prepared so that it might start functioning immediately—to be followed by a reclassification of the list for the second quarter. Changes of items would be allowed only within the group classification of that item. Commissioner Ceferino de los Santos then presented a report on the working operations of the I.C.A and the new procedures to be followed. On July 16, 1951, another meeting was called at the offices of the Import Control Commission at which the following subjects were discussed: 1. Release of all licenses then in the hands of PRISCO, with a review of some items the volume of which exceeded immediate requirements. 2. New regulations to be released. 3. Allocations to be given by categories and not by specific items: Essential Non-essential c. Decontrolled 4. Preference to be given to Filipino and American importers. 5. The intention of the Commission to allocate 10% of the total quota in each category to new Filipino importers. b. The Rules and Regulations of the Import Control Commission implementing Republic Act No. 650 were released to chamber members on July 18, 1951. Copies were printed by the Manila Times and dis tributed in unlimited numbers by the Chamber to all who desired them. The Trade Committee of the American Chamber held a meeting on July 26, 1951, with representatives of the importers’ group to discuss these Rules and Regulations. All points were approved with the ex ception of the following: 1. Preparation of 10 copies of applications. 2. Submission of a summary of letters of credit, or other methods. 3. Summary of sales tax acknowledged by auditors. 4. Submission of financial statements to the Import Control Commission. In August, 1951, the Import Control Commission issued Resolution No. 24 directing that import licenses be issued on a c 8e f basis only. This resolution was followed by such a flood of protests, not only in the Philippines but also from United States suppliers, that it was re voked and a new one issued which again permitted license to be issued on a c.i.f. basis. On September 22, 1951, another meeting was held in the offices of the Import Control Commission to discuss the implementation of the Import Control Law and especially Section No. 13. 46 February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 47 U.S. Royal Fleetmaster Royal Super-Ribbed U.S. Royal Lu " Traction U.S. U.S. Mid-Century Royal Master insist on — And Engineered do. Every tread block. <that a„d. performance, That is why V«“ mlVge with Royal tirss to J1** whatever your tire maximum ur personal motor car, SERVING THROUGH SCIENCE COMPANY Tel. 3-30-36 UNITED STATES 166, 16th St.. Port Area Distributors: KER & COMPANY. LTD., Cebu. Iloilo. Bacolod PHIL. AGRICULTURAL EXPORT CO. (PAECO). Legaspi RUBBER Manila Manila Dealers: REYES AUTO SUPPLY. 687-689 Evangelista SQUARE AUTO SUPPLY, 723-25-27-29 Reina Regente Another meeting was held in the Import Control offices on Sept ember 28, 1951, at which the following points were discussed: Definition of a Filipino merchant. Imports to be listed under two categories: a. Perishables b. Non-perishables Time limits on deterioration. Numerous protests were received both here and from abroad requesting the Chamber to assist in protecting shipments of goods arriving in the Philippines after the deadline of December 31, 1950. Immediate action taken resulted in an approved extension of time for entry into the Philippines after December 31, 1950, but not later than June 30, 1951. Because heavy demand in the United States for essential goods delayed the arrival of these shipments in the Philippines, another similar request was made to the Import Control Commission for further extension. This was granted on April 24, 1951, and the deadline ex tended to September 30, 1951. Again a letter written by your President to the Import Control Commission for further extension after Decem ber 31, 1951, resulted in Resolution No. 75 (Minutes of I.C.C. at its meeting of October 15, 1951) which stated: “Extension is granted to March 31, 1952, on shipments covered by licenses duly issued by the ICA from July 1 to December 31, 1950, provided the commodities covered belong to the critical categories, such as machinery, steel products, alumi. The Chamber is still endeavoring to have this extension cover all categories instead of essentials only. Trade organizations and cham bers of commerce in the United States have been so informed. In Resolution No. 74, dated October 15, 1951, the Import Control Commission requested chambers of commerce to be responsible for the filing of applications of import licenses by members and authorized all chambers to deliver licenses grarfted and collect the corresponding 2% license fees. An accounting for such license fees was to be made by the chambers within 48 hours after collection. The Commission further ordered that chambers of commerce be bonded in the amount of P50.000 in order to comply with the handling of license fees as given in Resolu tion No. 74. Before attempting to take over this responsible and additional work, the Chamber made a canvass of its members on the question. The result was that only six members of the Chamber wished to take advantage of this proposed service. All other members preferred to handle their own license applications. Consequently, no further action was taken on this matter. It is our information that other chambers have not adopted this suggestion. On November 2,1951, and at the request of Chairman Montelibano, a memorandum was sent to the Import Control Commission, listing suggestions for the implementation of section 13 of Republic Act No. 650. These recommendations had been worked out by members of your Chamber at a meeting held prior to November 2. Also at this November 2 meeting the qualifications of bonafide Filipino merchants were discussed. The explanation given by the I.C.C. Chairman was that an investigation of a potential buyer as to eligibility should be made by the importer, and that old established customers were exempt. Also, under Section 3, the Chairman explained that if more than 50% of the expected shipment to the importer had been previously allocated to a bonafide Filipino merchant, the importer could immediately notify the Bureau of Commerce to that effect. Legislative Committee—The work of this committee is reflected in the accomplishments of your board for the year under the headings of taxes, the minimum wage law, and import control. I wish, however, to record here the view of the Chairman of the Legislative Committee, Mr. Paul Wood, that any position which the American Chamber might feel like taking on proposed legislation could be more effectively ex pressed through the Philippine Association, which by constitution is international in character. For obvious reasons, I agree with Mr. Wood but I do not believe that the Chamber should content itself with or limit its effort to action which the Philippine Association might see fit to take with regard to a question of primary interest to members of the American Chamber. Tax Committee—Your Tax Committee has been vigilant through out the year but has made no effort to intrude on the sovereign au thority of the country to determine sources and rates of taxation. Mem bers of your board attended public hearings when a graduated corpora tion tax was under consideration and opposed the proposal because they felt that it discriminated against the owner of an interest in a large enterprise. No opposition was expressed against an increase in rate of corporation tax but your board felt then and still believe that a large corporation should pay no higher rate of tax on behalf of its individual owners than any one of them would pay on the same amount of income he might receive from a totally-owned enterprise. The out come, as you know, was a substantial moderation of the original pro posal, to the end that only one level of graduation was contained in the bill as approved. Your board also made representations in appropriate congressional circles with regard to the inclusion of profits, dividends, earnings, and other invisible transfers in the provisions of the exchange tax law. Unfortunately, our efforts in that instance met with no success. A r6sum6 of the views held by your board in this regard are reiterated in an article by your President in the January issue of the Chamber Journal. Your board investigated the possibility of having U.S. dollars made available through American agencies operating in the Philippines for meeting in the United States tax obligations on the part of Amer ican citizens resident here. This effort also met with no success. The onerous burden of double taxation for which American citizens resident in the Philippines are liable has been kept before appropriate officials of the Embassy and representatives of the U. S. Treasury De partment and has been aired with American congressmen and press representatives visiting Manila. There appears some hope that even tually we may be relieved of this inequity. Industrial Relations Committee—The past year saw relatively little labor agitation among employers who are members of the American Chamber of Commerce. One reason for this was that wages and other benefits granted by these employers had already been pushed well above the market in any community where they operate. Another explanation is that early in the year the Government began to take a closer interest in the subversive activities of some of the unions and actually caused several union representatives to be detained. With improvement in the position of the military against communists, agitation by the more radical unions showed a definite tendency to subside. Last year witnessed the approval and implementation of Republic Act No. 602, commonly known as the Minimum Wage Law. The Chamber sent representatives to public hearings on the bill but took no position with regard to it for the reason that wages being paid by ‘most of the members were already above the rates prescribed in the law. The Chamber did interest itself, however, in the question of value to be given to services and facilities which were extended to employees without cost. The Industrial Relations Committee studied Republic Act No. 602 thoroughly and on July 10 sent a memorandum to all members requesting them to submit questions regarding provisions of the law which might affect their relations with employees and with the Government. Replies were received from several members and their problems were discussed with the Wage Administration service, and answered satisfactorily we hope. House Committee—Activities of the House Committee during the year were routine. An examination of the operations of the Coffee Shop reveals that a loss of P445 was sustained on that service for the year. Sales for the year amounted to P13.300 with cost of sales run ning to P13.745. It also appears that taxes and license fees amounting to Pl, 110, chargeable to the above volume of businesses excessive. The circumstances are being examined. Civic Affairs Committee—The Chairman of your Civic Affairs Committee for 1951 simultaneously served as an active member of the Council for the Prevention of Juvenile Delinquency, which has for its primary responsibility the operation and management of the organiza tion known as Boys’ Town. He was also a member of the board of directors of the Community Chest for Greater Manila. Together with representatives from the Rotary Club and from the American Embassy, the Chairman of the Civic Affairs Committee answered for the American community on the board of directors of the Community Chest. Meetings of that agency were held once and some times twice a month when problems coincident with the administra tion of that organization and the 21 charity agencies subordinate to it were discussed. One of the primary responsibilities of the Chairman of this committee has been to provide leadership for the American community in the Red Cross, Anti-Tuberculosis Society, and the Community Chest drives in their fund-raising campaigns. The question has arisen in your board more than once as to whether direct and active representation by the American Chamber in local civic affairs was a proper activity for a trade body to participate in. It is still the board’s opinion that the American community of the Philippines should do all that is appropriate and feasible to maintain good public relations in the country and it is often true that more can be accomplished along this line by taking a sympathetic interest in civic affairs and by assisting in the management of charities and in their campaigns for funds than could be realized in any other way. Former Ambassador Myron Cowen placed particular emphasis on this oppor tunity, as he regarded it, for American business and American citizens in the Philippines to so conduct themselves that no justifiable course could ever develop here for such demonstrations as have taken place in other parts of the world against a country which was once looked upon as a benefactor and a friend. Your President is convinced that there is substance in this thinking and advises all Chamber members to consider carefully the unfavorable reaction that would almost cer tainly follow any abandonment of the policy which the Chamber has followed in this respect up to the present. The Journal—I am pleased to express the personal view that the Journal of the American Chamber of Commerce has continued to grow in prestige throughout the year, due to the quality, appropriateness, and usefulness of the material with which its pages have been filled. For two years now, it has been my responsibility to act as liaison be tween the board and the editor of the Journal, A.V.H. Hartendorp. Over that period it has been the board’s policy to maintain at a high level the material which went into the Journal. We believe the Journal should limit itself to the publication of editorials and other articles which deal with interests of Chamber members on a broad basis only. 48 We feel that extreme caution should be exercised in expressing criticism of laws and government policies or the manner in which controls are administered. The Journal now enjoys excellent acceptability among congressmen and government officials and it would be a grave mistake to sacrifice this prestige for the sake of expressing critical views with regard to anything which was not of major importance to the entire American business community. The Journal is the mouthpiece of American business in the Philip pines and, to a considerable extent, of the whole American resident community. It is not our mission to reform the Government or the people of the country. But we do want to live and conduct our business here in peace and safety, and in a friendly atmosphere, and as long as discrimination is riot practiced against us, we can afford to exercise tolerance toward programs, policies, and procedures which are not exactly to our liking. Finally, I wish to express my appreciation to other members of the board, to Mr. Hartendorp, and to Mrs. Willimont and Mrs. Gonder for the willing and energetic manner in which their responsibilities have been carried out during the year. Any member of the board could have performed the duties of the President as well as I have, and I as sume the position was given to me out of deference to my seniority and consideration for the years I have served on the board. The activ ities of the Chamber have been of intense interest to me and when I accepted the honor of the presidency, I also accepted the responsibi lities that went with it. I had been in that position but a short time, however, when I realized that the work involved and the time necessary to be given to it was more than I had expected. I'presume it will always be that way. At this point, I wish to record again my view that the presidency of the Chamber should not be given to the same man for more than one year at a time. We have plenty of capable men in the organization and the presidency should be rotated among them. Before I conclude, I wish to refer to some comment that has been made, by a few members of the Chamber at least, to the effect that the board of directors is usually composed of representatives of large firms and for that reason the interests of the small firms are neglected. My experience and observation, as a member of your board for the past few years, is that the facts are precisely to the contrary. In the past year at least, I do not recall that any member of the board presented to the Chamber a single problem of particular concern to his line of business, in connection with which assistance on behalf of his firm was sought from the Chamber. When questions have arisen which have a broad base of interest to the membership, non-director members have been urged to lend their advice and assistance in the Chamber’s efforts to have such questions resolved. I still feel that the board should be composed of men of the widest possible experience in business and acquaintanceship among government and business leaders, if the overall purpose of the Chamber is to be served. As I see it, there is no escape from measures which will be taken in this country to substitute citizen nationals for aliens in the conduct of business of every nature. Our responsibility is to look ahead and take advantage of every opportunity that may be given us to shape our business into the national pattern which is forming before us. J. A. PARRISH President Ocean Freight Rate Determination By the Associated Steamship Lines THE determination of fair and reasonable ocean freight rates for the thousands of different commodities which enter into world trade and which are carried across the seas over longer and shorter distances to the hundreds of ports of the different countries of the world by ships of varying tonnages under different national flags, is probably one of the most complex functions which any world industry is called upon to perform. Shipping everywhere is affected not only by constantly changing economic conditions'in every part of the world,— which determine the production of raw and manufactured products and national surpluses and needs, which, in their turn, affect the volume of foreign trade and hence the ship ping tonnages required on the different trade routes, but also by national and international political developments and military situations which are difficult to gauge. So many factors, national and international, enter into the operation of shipping, and into the freight-rate struc ture upon which the earnings of the industry depend, that no purely national authority anywhere has ever been suc cessful in regulating the industry very closely, especially with respect to the rates, as, for example, national coast wise shipping or national railways may be regulated. The industry is not above the law; it is, very properly, under broad government regulation in most countries; but by force of the conditions under which it operates, it has been left largely to regulate itself and to establish its own rate-structure. The industry has accomplished this with conspicuous success through the so-called conference system. Under this system, which dates from 1875, voluntary associations are formed for every important foreign trade route among the various steamship companies engaged in these trades. The primary purpose is to assign the neces sary shipping to each route and to establish and to adjust from time to time the freight rates to be charged by the member companies, thus to avoid the cut-throat compe tition between the various steamship lines which could end only in the bankruptcy of the weaker companies, the disap pearance of the merchant marines of the smaller and poorer nations, and the establishment of gigantic international monopolies. No central authority exists under the conference system, but the numerous problems which the different conferences must solve demands cooperation among them. The conferences also work in close consultation with ship pers and associations of shippers. Changes in rates are invariably preceded by negotiations between the con ferences and their principal clients. Their interests are mutual because the success of the shipping industry is dependent on the development of a trade, and not on its ruination by excessive freight charges. Furthermore, while on all the more important trade routes a majority of the shipping companies are conference members, there are always a sufficient number of non member companies and tramp ship operators to give the conference members competition and to prevent arbitrary rate fixing at too high a level. It is an interesting and significant fact that in recent years, with the development of aviation, the air lines of the world, which have to meet problems similar to those of the shipping industry, have also adopted the conference system. While the determination of fair and reasonable ocean freight rates constitutes a very complex function, the general factors involved are quite obvious to the under standing. Assuming that there is no shortage of shipping (as there generally is in war-time due to losses resulting espe cially from submarine activity and the sowing of mines), and that there are enough ships to carry the existing volume of trade, the basic factor in determining fair rates is the cost of the service,—the cost of the ships and the cost of operating them plus a reasonable profit on the investment. In this connection, and in comparing past and present rates, it must be taken into consideration that to build a ship today costs at least three times as much as before 49 the war. Ships, nowadays, are also often built to conform to the specific requirements of a certain trade, which entails additional cost. As the life of a ship is commonly estimated at twenty years, sufficient depreciation must be written off during this period to insure replacement or the return of the capital before the profits can be calculated. And even so, there always are the hazards of the sea,—storm and reef and fire, which may wreck or sink a ship long before the period of her natural life is over. Fixed charges against ship operation include besides depreciation, interest, insurance, taxes, cost of shore estab lishments and staffs, and, in some cases, company piers and terminals. The direct cost of operation includes the cost of fuel, water, food, supplies, the crew’s wages, mainte nance and repair, etc. The distances plied of course affect these costs,—the longer the haul, the greater the costs are for any voyage. All these items together come to probably three or four times what they were before the war. Then there is the cost of handling cargo,—including receiving and delivery, checking, watching, coopering, sorting, loading and discharging, etc. Port charges and dues, lighthouse and other governmental charges, canal tolls, etc., all enter into the freight rates, and these costs and charges have gone up, too. The cost of carrying the various categories of cargo varies greatly and hence the differences in the re spective rates. Freight rates are usually quoted in terms of short or long tons (2,000 and 2,240 pounds respectively) or of units of 40 cubic feet, and either the weight or the measurement tonnage rate is applied according to which makes for the higher rate. Some commodities are carried at comparatively low rates, others only at high rates. Explosives rate about the highest. Most “dangerous and hazardous” cargo, such as various acids and other chemicals, rate about halfway. In most of the categories of cargo defined, however, the rates from New York to Manila now run from around $30 to $60 a ton. Obviously, the rates for a voyage one way can not be either much higher or much lower than the rates charged on cargo going the other way. Nor can the rates charged on one trade route differ greatly from the comparable rates charged on other routes, for, otherwise, the shipping would tend to be drawn into the trades which pay the higher rates with an abandonment of the routes where the rates are too low. There is a natural balance, determined in the long run by demand and supply of' both shipping and the cargo that must be transported. This again makes it plain why rate-making is a world, and not a local, problem. The principal factors which enter into the determina tion of the rates for the various categories of cargo have been listed as being based on the character of the cargo, its volume and availability, its susceptibility to damage and to pilferage,’the value of the commodity (goods of high er value add to the carrier’s responsibility), the nature of the packing, the relation of the weight of the goods to the cubic measurement, how the goods must be stowed,— "Some commodities are desirable as weight or stiffening cargo; some are useful to top off with, others are useful in blocking off or pro tecting fragile goods; some commodities are of great bulk but little weight and are difficult to stow; some commodities can be quickly handled, others cause delay; some commodities require special stowage because of odor, danger of contamination, as, for example, flour may not be stowed in the same compartment with apples (or onions) be cause of the danger of flour becoming tainted through the absorption of odors. All of these characteristics must be taken into consideration in establishing a rate.” As to the point of the weight of the goods in relation to the cubic measurement, it should be understood that every ship has a cargo capacity limited to both a certain weight and a certain volume. To operate a ship to the greatest advantage, a balance of “weight” cargo and “mea surement” cargo must be attained so that the ship will be loaded to her full dead-weight capacity as well as her full cubic capacity. This often calls for a very skillful selection and stowage of different categories of cargo. Other factors which enter into the determination of the freight rate is the heaviness of the “lift” required and the length of packages or pieces, which sometimes is ex treme. Especially heavy cargo may call for the use of floating derricks or other special harbor equipment as well as for special heavy rigging on the ship. Special rates are charged for items, such as certain pieces of machinery, which weigh in excess of 8,960 pounds each, and for pack ages or pieces over 35 feet in length. These are the New York limits. Here the heavy-lift charge starts at 4,001 pounds; however, there is no excess charge for logs which may weigh from 3 to 7 tons each. The extreme-length charge starts at 40 feet. These are examples of special accommodation to the requirements of the trade of this country. More general factors which enter into rate-making are (1) competition with goods from other sources,—con ferences endeavor to place their clients on a competitive transportation basis with the exporters of similar commo dities from other countries to common destination: (2) competition from other carriers,—conferences must con sider the potential competition from other carriers operat ing either as non-conference carriers or as tramps; they endeavor to maintain rates at reasonable levels so that shippers will not seek other carriers. Conference lines generally maintain,, for each category v* of commodity, a so-called non-contract rate and a contract rate. The contract rate in the trade out of New York to Pacific countries is on the average around $4 a ton lower than the non-contract rate; the contract rate on cargo going the other way is around $3 a ton lower. The contract rate system is in general use in most of the world’s shipping conferences,—in fact, as everyone knows, granting such discounts for steady business is an almost universal practice. The newspapers, for instance, give their regular ad vertisers who sign a contract to use a certain amount of space during the year, a discount generally of 10%. The casual advertiser is charged the full “card-rate.” This is justifiable because a definite number of column inches of advertising space contracted for ahead of time makes it possible for the publisher to plan ahead; it gives him a “back-log” of revenue he can always count on in the event that casual advertising falls off. It is the same in the shipping industry,—if steamships are to make regular calls throughout the year, the shipping company must have a more or less regular and dependable flow of cargo to carry. Shipping companies are willing to share the benefits derived from this with the shippers who make them possible by giving them somewhat lower freight rates. Contract rates are granted to all shippers who sign contracts agreeing to forward all their shipments on the vessels of the companies which are members of the con ference. Such contracts are signed sometimes for a limited period, such as a certain season, or they may continue inde finitely. They may be legally terminated by either party at any time by giving due notice, generally 30 days. If the conference members are for any reason unable to sup ply cargo space with reasonable promptness, the shipper is free to secure space on non-conference vessels,—that is one of the provisions of the usual contract, and he does not break the contract by so doing. If, however, a shipper breaks the contract by shipping his cargo on other ships when conference ships are available, he naturally and auto matically ceases to benefit from the agreement. In our previous article we pointed out that the cost of ocean transportation with respect to many classes of commodities represents only a very small proportion of the ultimate retail price to the consumers, and that this 50 figure, in the case, taken as an example, of a can of evapor ated milk is only 1/4 of one centavo (1/8 of one centavo for a small can). The ocean freight rate is a more important factor in the retail prices of some other classes of cargo, such as fresh fruits and vegetables, for instance, which require careful stowage under refrigeration. As to the rates charged for the various categories, further details would serve only to illustrate the application of the prin ciples as to rate-determination which we have outlined. One way of roughly checking on the justification of increases in ocean freight rates, in addition to comparison of past and present costs and prices generally, is to compare the increases in these rates to the increases in the prices of the commodities shipped. Take copra. The average price in the Philippines of copra exported to the United States during the year 1939 was $34 a long ton; the average price in 1950 was $196, an in crease of 476%. Now compare the ocean freight rates on copra. On September 1, 1939, the rate on copra shipped to the United States Pacific Coast was $6.50 a long ton; at the present time the rate is $23, which is an increase of 253%,—only a little more than half as large an increase as the increase in the price. We tabulate these figures and comparable figures for some of the other Philippine exports as follows: Manila is longer. The United States conferences favor the Philippines rather than otherwise. Taking the ocean freight rates charged for cargo ship ments to the United States from Hongkong, Malaya, In donesia, and Japan, we find that these rates, for many commodities, are considerably higher than those charged in the Philippines. Rates on copra and allied products, for instance, average from 12% to 40% higher; rates on hemp from 18% to 44% higher; rates for canned pineapple from 12% to 90% higher. This, of course, is in part due to the somewhat longer haul in some of these cases, and the smal ler volume of available cargo, but these considerably higher rates also clearly indicate again that the Philippines is not being discriminated against,—rather the contrary. close with some interesting and meaningful figures v of the cargo exported from the Philippines during the past few years. This cargo was loaded at some twenty different Philippine ports by the ships of some forty-odd steamship companies of nearly twenty different national ities and by the ships of sundry other non-conference com panies. Commodity Coconut Oil, L. T................. Manila Hemp, Bale................. Sawn Lumber, 1000 bft.......... Raw Sugar, Price Freight Rate 1939 1950 % 1939 1950 34.00 $196.00 476 $ 6.SO $ 23.00 55.76 334.00 500 12.00 31.00 % To 253 Pacific Coast 158 Atlantic Coast 142 Pacific Coast 106 Atlantic Coast 112 Pacific Coast 142 Atlantic Coast Year 1948 ........ 1949 ........ 1950 ........ First Half 1951 ........ Number of Sailings Total Tons Of Export Cargo Carried Tons Carried By Chartered And Non Confer1011 1122 1122 1,823,881 2,239,399 2,753,573 Tons Carried By U. S. Army Ships 130,846 41,953 628 2,022,947 966,000 It would be interesting to look at a similar table for some of our principal imports, but loss of practically all records in Manila in the destruction of war makes it diffi cult to obtain the necessary figures. Such a table of price increases and freight rate increases as to imports would show the same underlying fact, we may be sure. Percentage wise, freight rates have increased less than prices. Finally, we touch briefly on the ocean freight rates charged in Manila and those charged in other nearby coun tries, but we wish to point out, first, that the United States conference lines charge the same rates from the United States Atlantic and Gulf ports to Manila as they charge from those ports to Yokohama, Kobe, Osaka, and Hong kong, although, for all of these Asiatic ports, the haul to We see from these figures how the Philippine export trade has grown and how the export tonnage for the first half of 1951 almost equalled the total for the whole of the preceding year; we see the increasing number of sailings •required to carry this growing volume of trade; and we see that though the great bulk of this cargo was carried on conference company ships, the tonnage carried by sundry chartered and non-conference ships has been increasing from year to year. The table does not support the charge that the conference lines either exercise or threaten to ex ercise a “monopoly.” However, the importance of the conference line carriers in the export trade of the Philip pines is clearly brought out. Their importance in the incoming trade is of like magnitude. Very certain it is that the Philippines’ trade could hardly even begin to be carried by ships which must be specially chartered or by the casual ly moving tramp ships. The Philippines needs the sched uled, regular, dependable service provided by the three or four hundred fine ships of the conference lines. The Tall Axe-Man By Robert P. Tristam Coffin AN eagle headed to the west Went to put the sun to rest. A tall man leaned his tired weight On his axe-helve like a Fate. His brows grown thick above his eyes Gave them the glow of prophecies. He faced the West, a land but now First blossoming behind the plow. Behind him Troy and Tyre lay And heaped-up skulls of Nineveh. Behind him tinsel-bearded kings And bulls with empires for their wings. On either side of him there stood A man to build the New World good. From the past two men sufficed, Cincinnatus and the Christ. Cincinnatus to cleave the soil And crown the men who sweat and toil. Cincinnatus to build a state Out of corn ears growing great. The Christ to show that God above Is just a neighbor you can love. Christ to show that pain is holy, That beauty’s feet are bare and lowly. The woodman’s rails were split that day. What rails tomorrow, who could say? Rails of races trampling races, With their heels on brothers’ faces. Rust of pride and blight of power Cankering this New World flower. And when the rails were split at last And the palm boughs waving past, What end is it the Gospel tells?— A road up to a place of skulls? Lincoln bowed. The sunset’s red Showed like blood around his head. 51 52 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES ESTABLISHED 1920 PURPOSES. The promotion and development of American trade, commerce, and industry in the Philippines and the Far East; The provision of means for the convenient exchange of ideas in this promo tion and development; The cultivation of friendly relations between Americans and Filipinos and other peoples of the Far East; The enrolment of all American citizens residing in the Philippines with a view to bringing about closer association in the achievement of the purposes set forth. MEMBERSHIP. Active membership is limited to (1) commercial, industrial, and other organizations, partnerships, and corporations organized under the laws of the Philippines or of the United States of America which are controlled by Amer ican citizens, the responsibilities and privileges of this class of membership being exercised by individual representatives of the member-entities who must rank among their senior members but need not be American citizens; (2) individual Americans residing in the Philippines, other parts of the Far East, or the United States. Associate membership is limited to individual American citizens who may be either Residents (residing within 100 kilometers of Manila), or Non-resi dents (residing in the Philippines outside this radius or elsewhere in the Far East or in the United States). OFFICERS AND DIRECTORS, 1952 J. L. Manning, President F. C. Bennett J. H. Carpenter, Vice-President J. T. Hicks, Member D. O. Gunn, Treasurer J. A. Parrish, Member ---------------------------------------------------------------- E. E. Selph, Member Mrs. Virginia Gonder, Executive Vice-President Harry C. Stevenson I. T. Salmo, Secretary Paul H. Wood, Member American business houses and individual Amer icans, not already members, are cordially invited to join the Chamber and to assist in the promotion of its purposes. PAST PRESIDENTS ♦H. L. Heath *C. M. Cotterman E. E. Elser *R. E. Murphy G. H. Fairchild *P. A. Meyer ‘H. M. Cavender *S. F. Gaches W. H. Renno’ds F. H. Stevens P. H. Wood J. M. Parrish 'Deceased The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources JANUARY 1—President Elpidio Quirino swears into office Gen. Carlos P. Romulo as Ambassador to Washington, Judge Oscar Castelo as Secretary of Justice, and Aurelio Montinola as Secretary of Finance. Later in the day he administers oaths of office to Manila Mayor Arsenio H. Lacson and the members of the City Council, and to Col. Dionisio Ojeda as Chief of Police. The President renews the suspension of Governor Rafael Lacson and several municipal mayors of Negros Occidental, who were originally suspended on December 21 and who, as claiming reelection, had taken their respective oaths of office. He redesignates Provincial Treasurer Leon C. Miraflores as acting Governor. Jan. 2 — The President administers the oath of office to former Secretary of Finance Pio Pedrosa as ad interim'Chairman of the Board of the Manila Railroad Company, and to outgoing Under Secretary of Justice Ceferino de los Santos as acting Chairman, and Demetrio Santos and Augusto Espiritu as acting members, of the Import Control Com mission. Later the President flies to Vigan for the induction of his brother, Eliseo Quirino, as Governor of Ilocos Sur. Jan. 4 —The President issues Executive Order No. 488 creating the Philippine Maritime Committee and defining its powers and func tions. The Committee will be composed of a representative of the Department of Commerce and Industry as Chairman, and of represen tatives of the departments of Foreign Affairs, Finance, Agriculture and Natural Resources, and Justice, and of the Office of Economic Coordination and the Central Bank, as members. The powers and functions of the Committee will be— “to serve as advisory body on maritime matters and allied activities; to study and recommend the necessary legislation for the creation of the Philippine Maritime Commission; to investigate and report on all understandings, conferences, and other arrangements of and among shipping lines trading in Philippine ports and/or carry ing Philippine cargoes and to recommend appropriate steps for the effective enforce ment of Philippine laws applicable thereto; to investigate any and all discrimina tory or excessive rates, charges, classifications, and practices prejudicial to Philip pine interests and/or the interests of local importers, exporters, and shippers of cargoes originating from, or destined for, the Philippines and to recommend appro priate measures by which such discriminatory or excessive rates, charges, classifica tions, and practices may be corrected; to serve as liaison between the Government and any entity or organization that may be established by shippers or any other private parties for the purpose of carrying on the business either as carriers or ship pers of merchandise in the domestic and foreign commerce of the Philippines; to make surveys of the bottom requirements of the Philippine export trade and to make appropriate arrangements with shipping companies to cover any deficiency; to assist Philippine producers and/or shippers in making arrangements for the ship ment of their products or export." Secretary of National Defense Ramon Magsaysay reports to the President that unless additional funds are released the department will have to discontinue buying loose firearms and ammunition as of previous releases of P3,200,000 and the latest release of P500.000, only P36.000 remains. Jan. 5— The President sends a message to Speaker Eugenio Perez, at Johns Hopkins Hospital, in Baltimore, Maryland, who has been successfully operated upon for kidney stones. The President receives the first large group of tourists to arrive since Liberation' (on the S. S. President Cleveland) and evinces a strong interest in the promotion of Philippine tourism. Jan. 6 — With the President as the guest of honor, the Central Luzon Agricultural College is inaugurated and Arcadio G. Matela in stalled as the first President. The new state institution was the former Central Luzon Agricultural School, established in 1907. Jan. 7 — The President receives Australian Army Minister Josiah Francis and Frank Sinclair, Secretary of the Australian Army, Malacanan announcing that the call was a purely social one. The Philippine Council for United States Aid (PHILCUSA) an nounces that ECA and Philippine counterpart funds have been made available to expand the work of the Bureau of Soil Conservation; of the 52 provinces, the soils of only 29 have so far been surveyed and classified. Jan. 8 — Francis Cardinal Spellman arrives in the Philippines from a 10-day visit to the Korea front lines, to be the house-guest of the President for two days. The Cardinal will also visit Calcutta, New Delhi, Beirut, and Rome on his return to the United States. The President appoints Lucas V. Madamba, of the Department of Foreign Affairs, as ad interim Assistant Executive Secretary, replacing Nicanor Ro'xas who resigned to run for Congress in the last elections. At a Cabinet meeting, the President directs that circulars be sent to all local governments prohibiting the summary dismissal of civil service employees. He expresses his desire that work on the shipyards at Marjveles and the steel mill of the National Shipyards and Steel Corporation be speeded up as well as the irrigation projects in Zambales and Iloilo. He states also that he would like to see the Maria Cristina hydro-electric and fertilizer plants in Lanao ready for inauguration by the end of this year; reported that the President was able to secure priority for the machinery and equipment of the Lanao projects. Acting Executive Secretary Marciano Roque issues a statement saying that no special privileges have been given to anyone in connec tion with the export of “C” sugar to countries other than the United States and lists the names of some 28 individuals and firms which have applied for permit to export such sugar. Jan. 9 — The President in Proclamations Nos. 301 and 302 makes public the ratification of two treaties with Spain,—the Cultural Treaty and the Treaty on Academic Degrees and the exercise of professions; ratifications were exchanged in Manila on January 5. The President confers with Jose Yulo, Chairman of PHILCUSA, Salvador Araneta, Economic Coordination Administrator, and mem bers of the board of directors of the LASEDECO on immediate con struction of Mindanao highways and a more vigorous execution of the program of land settlement. A Philippine delegation headed by Secretary of Commerce Cornelio Balmaceda leaves for Rangoon, Burma, to attend the 8th ECAFE session there. Jan. 10 — The President designates Dr. Marciano Roque as acting Executive Secretary to take the place vacated by former Secretary Teodoro Evangelista. Announced that the President has made a formal request for the utilization of part of the $10,000,000 grant of the United States Govern ment for military purposes, for the creation of 6 additional combat teams. The President receives a delegation from the World Council of Christian Churches which requests that the remaining 124 displaced refugees still at Guian, Samar, be permitted to remain there for an in definite period because of difficulty in finding countries willing to receive them. PHILCUSA announces that under the joint ECA-Philippines road building project in Mindanao, an outlay of P17.000.000 has been set aside for a Davao-Agusan road, the Zamboanga-Pagadian road, “TT’VER since I received the invitation to speak, some weeks ago, I have been trying to think of some really worth-while service fjthat I have performed in the industrial field; but after going back over my career and my experiences, I have come to the conclusion that the greatest—and perhaps the only significant—contribution that I have been able to make to American business in my lifetime is this: That I have believed in it with all my heart and soul. I have believed in the basic rightness of our business system, in the principles upon which it is founded, and in the high general level of integrity which it demands of all those who achieve lasting success in its service. And tonight—after more than fifty years of personal experience in enterprise— I can say to you in all honesty that never has there been a time or an occasion when American business has failed to justify my abiding faith in it... I know of no case where a present-day businessman, in order to gain the legitimate objectives of a lawful enterprise, is obliged to compromise his conscience, or to pursue a course which he believes to be socially, morally, or economically wrong. And that is why no other career that I know of, affords a greater sense of inner satisfaction to those who embrace it suc cessfully.”—BENJAMIN F. FAIRLESS, President, United States Steel Corporation, in an address upon receiving the Annual Gold Medal of Merit Award of the Alumni Society, Wharton School of Finance and Commerce, University of Pennsylvania, November 12, 1951. 53 the Cotabato-Mabungan road, and the Malabang-Maranding road, and that these roads will open another 400,000 hectares of arable public lands to settlement. Jan. 11 — The Department of Foreign Affairs informs President Quirino that President Harry S. Truman has sent to the U. S. Senate the nomination of Admiral Raymond Ames Spruance as U. S. Ambas sador to the Philippines. Bom in Baltimore, Maryland, July 3, 1886, Admiral Spruance has had a long and distinguished career. "In 1941 Spruance was assigned to command a division of cruisers in the Paci fic under Admiral Nimitz. During the Japanese attack on Midway Island in 1942, Spruance was lauded by Nimitz for doing a ‘remarkable job’ in routing the enemy. This Midway victory resulted in Spruance’s promotion to Vice-Admiral... He was named Chief of Staff to Nimitz but later was made Commander of the Central Pacific Area. Spruance thus became responsible for the planning and execu tion of the attack on the Gilbert Islands in 1943 . . Other exploits include the inva sion of the Marshalls in January, 1944, the capture of Saipan, Guam, and Tinian, in the Marianas, which included the Battle of the Philippine Seas in June, 1944, and the capture of Iwo Jima and Okinawa. Following the war, Spruance became President of the Naval War College ... He was transferred to the retired list of the Navy on July 1, 1948.”—US IS. Jan. 12 — The President designates Pablo Lorenzo, presently one of the Governors of the Reconstruction Finance Corporation and a director of the National Rice and Corn Corporation, as his “mobilizer” to follow up and check on the execution of the various development projects of the Government. Under-Secretary of Foreign Affairs Felino Neri announces that a Japanese Reparations Delegation to the Philippines is scheduled to arrive in Manila on January 25 for the purpose of conducting explora tory conversations with representatives of the Philippine Government on the reparations provisions of the Japanese Peace Treaty; the Chair man is Mr. Juichi Tsushima, adviser, Ministry of Foreign Affairs. The National Planning Commission recommends the allocation of funds for the implementation of Republic Act No. 33 establishing the Capital Site of the Philippines in Quezon City; also the allocation of funds for the implementation of Republic Act No. 597 providing for the reconstruction of Fort Santiago and other historical places in Intra mur os. Jan. 13. — The Monetary Board, in its annual report submitted to the President, strongly urges the intensification of the tax-collection measures and the continuation of the import and exchange controls. Jan. 14 — The 3-day convention of provincial governors and city mayors opens in Manila, with the President presiding over the first session. Later sessions are addressed by various department sec retaries, today by Secretary of Finance Montinola and Secretary of Justice Castelo. The governors and mayors urge that greater auto nomy be granted to the local governments and that they be given a larger share of the internal revenue collections. To a request that more justices of the peace be appointed, Secretary Castelo replies that his Department is powerless in this matter because the positions are created by law. Joaquin M. Elizalde, former Philippine Ambassador to the United States, arrives in the Philippines and is met at the airport by former Secretary Romulo and Under Secretary Neri; he reports to the Pres ident two hours later. Jan. 15 — The President inducts Mr. Elizalde as Secretary of Foreign Affairs in the presence of the diplomatic corps. The President designates the period February 15—Mprch 14 for the 5th annual fund campaign of the Philippine National Red Cross. Vice-President Fernando Lopez, concurrently Secretary of Agri culture and Natural Resources, addresses the governors and city ma yors and is followed by Secretary of Public Works and Communica tions Sotero Baluyot, Under Secretary of Education Cecilio Putong, and Secretary of Labor Jose Figueras. The Vice-President spoke of the Government’s economic mobilization program and the ECA aid. The governors and mayors ask for closer supervision of road and bridge construction, more telegraph stations, and a reduction in post age rates. Several governors and mayors protest that too large a bur den is being placed on parent-teachers associations in maintaining the primary schools; others state their revenues are not large enough to meet the requirements of the minimum wage law. The Cabinet approves the request of the National Research Coun cil that the Administration recommend to Congress the appropriation of P500.000 as the Government’s contributio to the holding of the 8th Pacific Science Congress in 1953, the Philippines being the host country. Jan. 16 — The President inducts Primitivo Lovina into office as Mayor of Pasay City. Secretary of National Defense Ramon Magsaysay states before the conference of governors and mayors that the country’s peace and order problem must be solved within the year “before the international crisis worsens”. He states that force alone is not enough and urges that the local executives combat three evils which contribute to unrest among the people,—usurious demands on the tenants by landlords, failure to carry out the 70-30% crop-sharing law, and unscrupulous labor leadership. Secretary of Commerce Balmaceda states that the alien control of the retail trade continues despite laws seeking to nationalize the trade because of lack of organization among the Fili pino merchants and that this should be corrected; he also urges further development of household industries. Pablo Lorenzo, Chairman of the Board of the National Rice and Corn Corporation, states that the present rice production falls short by 4,000,000 cavans to meet the local need. The Liberal Party majority in the governors and mayors conven tion elects Gov. Eliseo Quirino, of Ilocos Sur, Chairman of the League of Governors and City Mayors; Gov. Sergio Osmena, of Cebu, ViceChairman; Gov. Lucas Paredes, of Abra, Secretary; and Mayor Primi tive Lovina, of Pasay City, Treasurer. The Nacionalista minority withdraws and elects Gov. Juan Rodriguez, of Pangasinan, Chairman of the Governors and Mayors Freedom League; Gov. Manuel Calleja, of Albay, Vice-Chairman; Gov. Federico Castillo, of Oriental Mindoro, Secretary; Gov. Wenceslao Pascual, of Rizal, Treasurer; and Gov. Fernando Silvosa, of Surigao, Sergeant-at-arms. Feb. 17 — The President, at a meeting of the governors and ma yors at his private house in Novaliches, tells them that in so far as he is concerned they may organize themselves as they like, but that all local executives are “supposed to execute the laws and the policies of the Administration, the Administration, and only one Administration”. He describes their organization of separate leagues as a "partisan stunt” and states that he is not asking them to abandon their parties, but hopes they will be guided by his “three C’s”—concentration, coopera tion, and coordination. The meeting is described in the press as a cordial one. Feb. 18— The President designates Judge Mariano Nable as Chair man of the Board of Tax Appeals, and Judge Jose Querubin and Gui llermo Gomez as members. The President receives Jose P. Marcelo who invites him to attend the inauguration, to be held in March, of his ?3,000,000 rubber-tire plant in Malabon. The Cabinet accepts the proposal of the World Council of Chur ches to take care of the remaining 260 of the original 4,500 stateless refugees brought here from China three years ago, but directs that they must be taken back to camp in Guian, Samar. Since the devas tating typhoons last November, the refugees scattered and the Council proposed that they be taken care of in Dumaguete. The Cabinet also takes measures to provide Pl 50,000 to be used in fighting plagues of locusts in Mindanao and of rats in Cotabato, Camarines Sur, and Min doro. Jan. 19—Following an altercation with Coordinating Admin istrator Araneta last night concerning the implementation of the Cabinet decision on the disposition of “C” sugar to countries other than the United States, which resulted in Araneta’s resignation, the Presi dent formally accepts it in a dispatch from the yacht Apo, now en route to Cebu. The President designated Pablo Lorenzo to take over the office of the Economic Coordination Administration. According to a progress report on ECA aid submitted to the Coun cil of State by Jose Yulo, Chairman of the Philippine Council for United States Aid, dollar-commitments amounting to $47,000,000 will be cov ered by selected and fully considered development projects before the dead-line on June 30. Exclusive of the interim aid of $15,000,000, around $32,000,000 has been authorized for expenditure in the Philip pines under the program until that time. Of 43 projects submitted, 28 have been approved and 9 of these are in process of implementation. Of the allocations, $7,550,000 cover projects in agriculture, forestry, and fisheries; $1,480,000 in public health, vocational education, and public welfare; $4,830,000 in transportation, communications, and public works; $788,000 in manufacturing, mining, and other industries (mostly surveys); and $5,710,000 for general commodities. Jan. 22 — The President, after visiting Cebu and Catbalogan, Samar, tells the people at Tacloban, Leyte, that he is not in favor of creating new taxes. (Continued on page 74) Banking and Finance By G. R. Hutchison Manager, Port Area Branch National City Bank of New York 'OMPARATIVE statement of condition of the Central V>Bank: As of As of As of As of Dec. 31 Oct. 31 Nov. 29 Dec. 28 ASSETS 1949 1951 1951 1951 (In thousands of Pesos) International Reserve.. .. 1’460,689 P510.391 1 * 494,090 P492.456 Contribution to Interna tional Monetary Fund. 30,000 30,000 30,000 30,000 Account to Secure Coin age ..................................... 113,306 107,570 107,570 107,570 Loans and Advances........ 77,047 47,171 44,171 42,323 Domestic Securities.......... 92,197 230,846 233,844 241,700 Trust Account—Securi ties Stabilization Fund. 6,848 6,848 6,848 Other Assets...................... 20,390 91,410 98,861 33,063 P793.629 Pl,024,236 Pl,015,384 P953.960 54 LIABILITIES Currency—Notes.............. P555.576 P580.017 P573.249 P592.127 Coins............... 74,384 93,310 93,257 93,128 Demand Deposits—Pesos 117,682 244,705 238,199 226,463 Securities Stabilization Fund................................. 2,000 6,848 6,848 6,848 Due to International Monetary Fund.................. 22,498 496 496 496 Due to International Bank for Reconstruction and Development.................. 2,389 2,383 2,383 2,383 Other Liabilities............... 2,636 70,833 74,217 5,055 Capital ............................... 10,000 10,000 10,000 10,000 Undivided Profits............ 6,464 11,955 13,046 13,770 Surplus................................. — 3,689 3,689 3,689 P793.629 Pl,024,236 Pl,015,384 P953.959 between Pl 15 and Pl20 per fine ounce, with the current quotation at Pl 18. In the commercial and industrial section of the market San Miguel common shows a further advance on reinvest ment-demand from the recent dividend. Banks and in surance shares were quietly firm, but sugars display an easier trend. Fixed interest securities were firmer on renewed insti tutional demand following the year end. 1951-52 Range High ' — 131 ' MINING SHARES 53 npHERE was little change in the international reserve at A the end of December, 1951, as compared to the previous month, despite heavy import - bill arrivals and liqui dations during the month. As reflected above, the reserve at the end of this year was only P31,767,000 higher than at December 31, 1949. As compared to December 31, 1950, the present reserve is loweY by P77,526,000. Currency in circulation increased from P666,506,000 as of November 29, 1951, to P685,255,000 at the end of De cember of this year. The large decrease in “Other Assets” and “Other Liabilities” was due to a settlement in the Japan Open Account, P67,000,000 being due from Japan and P70,000,000 due to Japan. Money continues extremely tight and requests for extensions of bills are numerous. Collections, however, are still generally'satisfactory. For the first time in about two years, silver coins are beginning to trickle back into circulation, a sure sign of the scarcity of money. ■piGUREs obtained from the Bureau of Census and Statistics show that there was an unfavorable balance of trade of P34,831,000 during October, 1951. Imports totalled P96,732,000 against exports of P61,901,000. npHE Central Bank has announced a plan, embodied in A a proposed bill to be submitted to the present Congress, to establish a Rural Credit System to provide credit facil ities to small farmers and tenants. It provides for the Government through the RFC to furnish capital to sup plement funds invested by private enterprise. Rural banks established with assets of less than P200.000 would be free of taxes, and operations would be closely superyised by the Central Bank without charge. 0 37 0 0 0 0 2 0 80 0036 5 0 0 0 0 0 0 0 0 17 06 96 05 43 11 300 00 0 32 0 0 0 365 035 13 Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas S’ Co. December 14 to January 25 THE market was quiet and easier during the last two weeks of December, but following the New Year and cessation of tax-selling, a strong demand for chrome and iron shares developed, and very sharp price increases were registered in these issues. While profit-taking has subsequently reduced extreme gains, closing prices show a large mark-up as compared with opening levels. The strength may be attributed to the improving profit outlook for shares in this group. Gold mining shares, on the other hand, have continued out of favor, and, with one exception, all listed issues show losses over the period. Local investors have continued to switch out of this group to the promising base-metal equi ties. At the moment, non-resident purchases are providing the main support for gold shares. The price of gold in the free market shows a small advance. Since our last review, prices have fluctuated ow High Low Close Change Total Sales 11 M. S. E. Mining Share Average..........................131.50 116.97 126.59 Up 16 Acoje Mining Com pany" ........................... 028 Antamok Goldfields....... 21 Atok Big Wedge............. na Baguio Gold Mining Balatoc Mining Company ---- Buhay Gold 16 Acoje ^dinii 6.49 30,811,305 0 0 0 08 2 0 0 0 0 00 ________ 002 Batong 10 Benguet Consolidated. 026 Coco Grove, Inc......... on----------------- - 16 0 ■ 0 0 0 0 0 «-oco urove, inc............. Consolidated Mines, Inc. Hixbar Gold Mining Co.. ............................... 075 Itogon Mining Company 031 I.X.L. Mining Company. 59 Lepanto Consolidated.. . 024 Masbate Consolidated. . 25 • ------ • • 06 50 00 0 17 0 0 0 22 02 05 1951-52 Range High Low 143.00 105.00 00 149 00 00 100 00 50 00 30 325 27 0 5 27 0 00 00 27 80 0 18 0 12 315 0 0 105 25 12 0 12 0 50 100 085 085 00 23 27 00 20 50 27 0 0925 0 100 106 30 50 00 00 102 00 7 00 6 50 .37 .06 .255 .27 .055 .225 .35 Up .055 Off .235 Off 06 015 005 .13 2.40 .125 2.30 .13 Off 2.40 Up .0028 4.70 .06 .025 .225 .13 .045 .85 .04 .25 005 10 335,000 7,500 .0035 Up 1.60a Off .065 .036 Up ,22a Off .15a Off .0525a .90 .04 Off .275 Off 05 005 005 035 Mindanao Mother Lode. Paracale Gumaus Con solidated ....................... Philippine Iron Mines, Inc..................................300.00 130.00 244.00 Up 124.00 San Mauricio Mining Co................................... Surigao Consolidated.. .. Suyoc Consolidated .. . . United Paracale Mining Co................................... .10b .32 .335 .027 .25 .315 .025 .27 — .315 Off .025 .027 — .12 .105 COMMERCIAL SHARES High Low 528,000 Close Change Total Sales 00 Up LOO 63 25.,00a 150.00 149.00 150 00 Off 38 105.00 105.00 105 Bank of the Philippine Bogo-Medellin Milling Co................................... Central Azucarera de la Cariota......................... Central Azucarera de Pilar............................... Central Azucarera de Tarlac................................... 50.00 50.00 50 China Banking Corp. ... 325.00 325.00 325 Filipinas Cia. de Seguros. Manila Broadcasting Co. Manila Wine Merchants, Inc.................................. Marsman & Co., Inc., Marsman & Co., Inc., Mayon Metal, Class “B” Mayon Metal, Class "A” Meralco 6-1/2%............. Metropolitan Insurance Co................................... Pasudeco.......................... Philippine Guaranty Co.. Philippine Gil Develop ment Co., Inc............. Philippine Racing Club. San Miguel Brewery, San Miguel Brewery, 7% San Miguei Brewery, 8% pref. * .............................. Williams Equipment Co., .33 .30 .30 .30 43.00 00 Off 5.00 26 00 — 00 Up 5.00 00b — 30 Off .03 5 70a 150 25 08 36 42 94.00 106.00 103.00 Up Up Up 00 Up 97 00b Up 106 00 Up 6 00b 290 318 ,000 3,500 T 1,050 .025 2,285,334 1,000 1.50 3.75 3.50 12,555 1,261 162 *—Ex-Dividends T—Bond sales reported in units of Pl00 O VER-THE-CO UNTER Company Demonstration Gold Mines...................................... Eastern Development Co.......................................... Johnson Pickett Rope Factory............................... Manila Jockey Club, Inc.......................... • ........ Philippine American Drug Co................................. Philippine Bank of Commerce...................... .......... Philippine Electrical Manufacturing Co............ Philippine Long Distance Telephone Co., Re funding mortgage 8s collateral trust 6% Bond, Series A, due January 1, 1966........................... National Fastener Corp, of the Philippines, com. . National Fastener Corp, of the Philippines, pref. . Victorias Milling Co., Inc......................................... High 02 006 00 35 00 00 00 Low Close Total Sales P0.02 0.006 115.00 2.35 165.00 100.00 95.00 P0.02 0.006 115.00 2.35 165.00 100.00 95.00 98.00 97.00 97.00 P27.55O 100.00 100.00 100.00 250 100.00 100.00 100.00 250 175.00 175.00 175.00 311 55 56 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 Credit By C. W. Muilenburg Manager, Credit & * Collection Department International Harvester Company of Philippines A RESUME on terms, balances, bad-debt losses, etc., has recently been completed by the Association of Credit Men, Inc. (P.I.) from data received from various members of the Association reflecting the credit situation as of December 31, 1951. The most interesting deduction obtained from a review of this resume is that the standard credit terms of a large majority of the members of the Association continue to be 30 days. However, there was a larger percentage of current accounts on standard terms at the end of 1951, than at year-end 1950. At the end of 1951 the majority of all accounts were past due from one to two months, whereas at year-end 1950 the majority of all accounts were more than two months past due. This is interesting in view of the increasing collection difficulties many members had in 1951 and is an indication that co'nscientious efforts on collections have proved successful in spite of discourag ing collection trends noted by some firms. The resume shows a wide fluctuation in accounts writ ten off as bad debts during the four quarters of 1951, but this variation is due more to the fact that different firms use different dates for writing off old accounts and the variation therefore does not indicate any seasonal baddebt - losses experience. The percentages of accounts written off in 1951' were lower than those in 1950. The percentages of sales on a cash basis increased moderately but not substantially in 1951 over 1950. The Association of Credit Men received two new ap plications for membership during January, 1952, and in a regular monthly directors’ meeting held on January 29, Parsons Hardware Company and Philippine Oxygen & Acetylene Company were duly admitted to active member ship. The Association now has 70 active firm members. The membership committee of the Association is still soliciting responsible and qualified firms for member ship. The Association continues to provide ledger inter change services, caution notices, court listings, and other routine services to its membership. Through active cooperation between the Association and one of its members, assistance of the National Bureau of Investigation was obtained early in January and the NBI is actively following now a specific instance of an ir regular trade-practice in connection with collections for advertising allegedly requested and for which bills of collec tion have been presented. It is to be hoped that some . progress will be made which will result in wiping out or at least markedly limiting this irregular practice which has been fairly widespread at different times. DAVE HARVEY Painting and Contracting No job too BIG No job too SMALL 920 M. H. DEL P1LAH MANILA TEL. 5-1 LIT Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company 1941 Average—16,316,000 KWH Kilowatt Hours January........................................................... February........................................................ March............................................................. April................................................................ May................................................................. June................................................................. July.................................................................. August............................................................ September... ................................................. October........................................................... November...................................................... December....................................................... Total................................................... ••Partially estimated 1952 45,240,000 ** 1951 40,713,000 37,066,000 40,117,000 39,197,000 40,405,000 40,712,000 42,041,000 42,817,000 41,852,000 44,017,000 42,628,000 45,655,000 * 497,221,000 * /"vutput in January was 4,527,000 kwh or 11.9% above '“'January, 1951. The slight decrease from December is normal. Considerable increases in industrial load are expected in the next few months. Real Estate By Antonio Varias Vice-President, C. M. Hoskins & Co., Inc., Realtors REAL estate sales in the Greater Manila area regis tered during the month of January numbered 688, with a total value of P9,161,834, as compared with 549, with a total value of P7,871,967, registered during the preceding month of December. Of the January sales, 205, with a total value of P6,085, 610, represented deals within Manila, proper, while 483, with a total value of P3,076,224, 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: Several properties in Ermita and a property in Pandacan sold by Harry D. Kneedler to International Construction Corporation for P720.000; A tract of 15,000 square meters on Isaac Peral Street, Paco, sold by Compania General de Tabacos to the Roman Catholic Archbishop for P675.000; A property with a lot of 811.6 square meters at Ongpin, corner T. Alonzo, streets, Sta. Cruz, sold by Rosario Caballero Monserratt to Ambrosio Padilla for the reported sum of P405.800; A property with a lot of 3,622.5 square meters on Pennsylvania Street, Malate, sold by Oriental Club to Katubusan Theater Corpora tion for P170.000; A parcel of 1,000 square meters on Governor Forbes Street, Sampaloc, fronting the University of Santo Tomas compound, sold by Luis Atienza Bijis to the Manila Electric Company for Pl 10,000; A property with a lot of 668.3 square meters on Legarda Street, Sampaloc, sold by Rita Legarda, Inc. to Damiana G. Vda. de Nanad for P100.000; A property with a lot of 4,025 square meters on 8th Street, New Manila, sold by Magdalena Estate, Inc. to Fernando Jacinto for P92,165; A tract of 23,454 square meters in Quezon City sold by Philippine National Bank to the Good Shepherd Convent for P83.017; and A property with a lot of 5,027 square meters on Herran Street, Sta. Ana, sold by Isabela Cultural Corporation to Marcial Lichauco for P82.500. ■p FAL estate mortgages registered in the Greater Manila ■'■'■area during the month numbered 425, with a total value of P 14,630,066, as compared with 463, with a total value of P9,201,607, registered during the month of December. Of the January total, 193, with a total value of P6,184,617 represented deals within Manila, proper, while 232, with a total value of ?8,445,449, were deals within the cities of Quezon and Pasay, and in the suburban towns mentioned above. REAL ESTATE SALES, 1952 Manila Quezon City Pasay City Suburbs Total January P6,085,610 Pl,592,939 P 197,596 Pl,285,689 P9,161,834 REAL ESTATE MORTGAGES, 1952 January P6,184,617 P4,245,805 P 265,740 P3,933,904 P14,630,066 Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of December, the Office of the City Engineer approved building permits for con struction work amounting to P2,876,860. For the same period last year, the volume of work authorized amounted to P3,770,410, or a difference in the amount of P893.550. Among the big projects that were started during month under review were: The demolition of the well-known Kneedler Building at the corner of Rizal Avenue and Carriedo Street to give way to a new 6-story struc ture which will cost P 700,000. Dr. Fernando Gonzaga is the new owner. A steel warehouse of F. E. Zuellig, Inc., at Tanque, Pandacan, estimated at P250.000. A 3-story commercial building for Lorenzo Lerma at 2251 Rizal Avenue, costing P200.000. ' The fourth and fifth story addition to the Rosaria Apartment on Dakota Street for Dr. Manuel Tuason, estimated at P100.000. The decline in volume is probably, as usual, due to the holidays and the fact that corporations are closing their books at the end of the year. Prices of essential items continued to be steady and firm. However, due to lack of demand, it can be safely stated that prices will ease down during the next 30 days, and dealers will have to sell their stock to take care of accounts and other obligations which will come due for payment. Ocean Shipping and Exports By B. B. Tunold Secretary-Manager Associated Steamship Lines TOTAL exports for the year 1951 showed 40% over exports for the year 1950. 1273 vessels lifted 3,802,297 tons of exports during 1951, as compared to 2,753,573 tons lifted by 1122 vessels in 1950. Commodities which registered a sharp increase over the year 1950 are: alcohol from 249 to 897 tons; logs from 47,268,733 to 170,468,914 bd. ft; molasses from 53,450 to 127,362 tons; and iron ores from 448,496 to 928,285 tons. Exports for the year for 1950, were as follows Alcohol.......................................... Beer................................................ Buntal fiber................................ Cigars and cigarettes............... Coconut, desiccated................. Coconut oil................................. Concentrates, copper............... Concentrates, gold.................... Concentrates, lead.................... Concentrates, zinc .................. 1951 as compared with exports 1951 1950 897 Tons 249 Tons 2,307 ” 1,241 ” 23 ” 177 ” 126 ” 102 ” 75,761 ” 130,815 ” 77,117 ” 69,392 ” 53,404 ” 40,596 ” 4,725 ” 5,194 ” 111 ” 183 ” — Copper.......................................... Copra............................................ Copra cake/meal....................... Embroideries............................... Empty cylinders........................ Fish................................................ Foods, canned............................ Fruits, fresh................................ Furniture, rattan...................... Glycerine...................................... Gums, copal................................ Gums, elemi................................ Hemp............................................ Hemp, knotted.......................... Household goods....................... Junk metal.................................. Kapok........................................... Kapok seeds............................... Logs................................................ Lumber......................................... Molasses....................................... Plywood and plywood pro ducts .......................................... Ores, chrome............................... Ores, lead..................................... Ores, iron..................................... Ores, manganese........................ Pineapples, canned................... Rattan (palasan)...................... Rope.............................................. Rubber:........................................ Shell, shell waste...................... Shell buttons.............................. Skins, hides................................. Soap............................................... Sugar cent/raw.......................... Sugar, refined ........................... Sugar, muscovado..................... Tobacco........................................ Vegetable..................................... Transit cargo.............................. Merchandise, general.............. 105 ” — 758,186 691,722 65,114 64,353 3,662 2,430 7,241 4,744 189 180 51 30 1,237 845 10,542 10,962 1,906 1,728 1,060 885 165 56 1,023,566 Bales 745,182 Bales 172 Tons 216 Tons 3,983 6,016 46,301 29,368 162 187 100 200 170,468,914 bft. 47,268,733 bft. 23,557,157 79,645,749 127,362 Tons 53,450 Tons 367 639 287,008 236,257 339 532 926,285 448,496 22,710 33,022 54,984 62,532 3,356 2,400 5,460 3,974 1,027 2,085 658 597 90 64 1,240 1,247 33 31 623,142 435,612 649 5 498 — 8,895 4,033 385 554 10,014 7,169 16,305 31,713 Lumber By Pacifico de Ocampo Secre tary-Treasurer Philippine Lumber Producers’ Association, Inc. THE month of December registered a marked decrease of 4,649,885 bd. ft. in the export trade of Philippine logs and lumber as compared with the November export of 22,097,071 bd. ft. While export to United States and Canada increased by 1,062,360 bd. ft., export to Japan and to all other countries decreased by 5,016,432 bd. ft. and 695,813 bd. ft., respectively. There has been a steady decline in export since Oc tober up to the end of December, due mainly to decrease in shipment to Japan. Total log and lumber exports during the year 1951, as compiled by the Bureau of Forestry, are as follows: EXPORTS OF LOGS AND LUMBER FOR 1951 Logs in Lumber in Total in Month Bd. ft. Bd. ft. Bd. ft. January......................................... 13,871,189 5,017,045 18,888,234 February....................................... 17,204,796 5,323,874 22,528,670 March............................................ 18,507,870 6,134,308 24,642,178 April.............................................. 18,186,490 4,249,118 22,435,608 May............................................... 26,965,718 6,245,829 33,211,547 June............................................... 22,427,689 4,138,323 26,566,012 July................................................ 16,357,694 5,932,839 22,290,533 August........................................... 18,967,820 3,888,472 22,856,292 September.................................... 18,842,037 4,185,564 23,027,601 October......................................... 21,015,981 4,417,088 25,433,069 November.................................... 18,114,321 3,982,750 22,097,071 December..................................... 13,932,380 3,514,806 17,447,186 Totals................................... 224,393,985 57,030,016 281,424,001 Trade difficulties between Philippine exporters and Japanese importers continue to exist, and the presence of several million bd. ft. of poor quality logs in several cities 57 of Japan has considerably slowed down consumer demands in the latter country. Misunderstanding between the two countries as regards “grade”, “definition” and “nomencla ture” of Philippine woods has resulted in stockpiling of undesirable species. Director Florencio Tamesis of the Bureau of Forestry has recommended measures to remedy the situation through an increase in “grade” and a clear definition thereof, as well as rigid inspection of logs intend ed for export. The further decline in log export to Japan is partly attributed to the effect of the discontinuance of England and Australia to buy Japanese-made plywood manufac tured from Philippine logs, as these countries have estab lished their own plywood factories fed by imported peeler logs. It was also thought that Japanese log importers have exhausted their dollar- and exchange-quota allocations for the year. Increase in freight rates to the United States by $2 per thousand bd. ft., to become effective by February 1, 1952, may, unless suspended or modified, affect log and lumber export to that country. It is believed that any increase in price of Philippine woods to absorb the increas ed freight rate would place them on a non-competitive basis with woods coming from other regions of the world. As released by the Bureau of Forestry, logs and lumber inspected for export abroad during December, 1951, follow: SHIPPER DESTINATION LUMBER LOCS Agusan U. S. A. 299,992 Timber Corporation........ Japan 1,900,000 Anakan Lumber U. S. A. 129,999 1,424,988 Company................................. Japan 1,002,027 Basilan Lumber U. S. A. 469,550 Company................................. Hongkong 259,729 Bislig Bay U. S. A. 209,371 Lumber Company................. Japan 1,115,936 Cipriano Luna Enterprises.... Japan 3,786,636 Dahican Lumber Co., Inc.... U. S. A. 188,467 Dee Cho Lumber Company.. . Guam 47,003 In Eire 41,746 su U. S. A. 481,033 lar Canada 15,720 Lumber Hawaii 132,172 Company .................. S. Africa 471,746 Marsman Development U. S. A. 286,999 Company ............................... Hongkong 100,000 Martha Lumber U. S. A. 500,000 Mill............................................ Japan 1,068,979 Mindoro Planing Mill............ U. S. A. 20,000 Nasipit Lumber Co., Inc.. . U. S. A. 205,885 North Camarines Lum ler Co. Taiwan 787,468 Oriental Sawmill........................ Hongkong 24,009 Reynaldo Lumber Company. U. S. A. 40,154 Sta. Cecilia Sawmills, Inc.... Hawaii 29,606 Sta. Clara U. S. A. 400,010 Lumber Co., Inc.................. S. Africa 6,002 Soriano, L.................................... Valderrama Lumber Manufac U. S. A. 43,550 turing Co................................. Western Mindanao Lumber U. S. A. 73,963 Co............................................... U. S. A. 400,324 Woodcraft Hongkong 470,119 Works, Ltd.............................. Taiwan 414,103 Wood Mosaic............................. England 599,900 Totals................................... 3,514,806 13,932,380 RESUME of Exports to: Japan......................................... United States and Canada.. Other Countries.................... Lumber (Bd. Ft.) 1,932,674 1,582,132 Logs (Bd. Ft.) 8,873,578 3,257,331 1,801,471 Total (Bd. Ft.) 8,873,578 5,190,005 3,383,603 Totals.................................... 3,514,806 13,932,380 17,447,186 SUMMARY OF EXPORTS DURING DECEMBER ARRANGED BY COUNTRIES OF DESTINATION IN THE ORDER OF VOL UME OF SHIPMENT TO EACH COUNTRY Logs (Bd. Ft.) Lumber (Bd. Ft.) Total (Bd. Fft.) Japan.................................. ......... 8,873,578 — 8,873,578 United States.................. ......... 3,257,331 1,916,954 5,174,285 Taiwan............................... ......... 1,201,571 — 1,201,571 Hongkong.......................... ......... — 853,857 853,857 England.................. 599.900 — 599,900 South Africa.................... — 477,748 477,748 Hawaii................................ — 161,778 161,778 Guam. . 47,003 47,003 Eire..................................... — 41,746 41,746 Canada............................... ......... — 15,720 15,720 Totals................................... 3,514,806 13,932,380 17,447,186 As was anticipated, the local wholesale market for lumber.continued to rule weak during December, 1951, as dealers remained inactive, resulting in further reduction in lumber prices. Thus, during the opening week of the month under review, white lauan was quoted at P135140 per 1000 bd. ft., apitong at P145,. and red lauan at P160-165, gradually decreasing week by week, and closed at P120-130 for white lauan, P140-145 for apitong, and Pl60 for red lauan. Mining By 'Nestorio N. Lim Mining Engineer, Secretary-Treasurer Chamber of Mines of the Philippines 'T'HE gold mining industry, after its complete destruction during - * • the last war, has been encountering a long series of impediments in its rehabilitation. To start with, there was no capital to rebuild the plants and reopen the mines. No new machinery was available. Spare parts for reconditioned power plants and mills were scarce. There was a shortage of common labor, and also of experienced labor and of technical men. There was an attempt to increase the production tax. Execution of the import control regulations interfered with the smooth operation of the mines. There was the 17% dollar exchange tax, the 2% ICC fee, the 7% compensating tax, and the 28% income tax on corporations. Gold buyers in the free market were examined every now and then for allegedly supplying silver to the communists, which made the market scary. The mines were blamed for providing explo sives to unscrupulous fishermen. The allocation of serialization DO Number F-O-W4, by the United States Government, to the gold mines in the Philippines, means that the gold mines will only get 50% of their 1950 consumption of supplies, chemicals, machinery, equipment and spare parts for their operation in 1952. If this last ruling of the U. S. State Department is not eased, the gold mines will surely close within the next 6 months. The prosperity of the Philippines during the last two pre-war decades was partly due to gold and silver production which steadily increased from P2,424,606 in 1920 to P78.458.708 in 1940. By 1941 the mining industry could haze been the premier industry of the Phil ippines had not the war broken out. But the war practically demolished all the gold mines’ surface plants, with the exception of two which sustained only minor damage. In the early part of 1942, the Japanese dismantled some of the goldCOMPARATIVE STATEMENT OF EXPORTS MADE TO DIFFERENT REGIONS OF THE UNITED STATES DURING THE MONTHS OF NOVEMBER AND DECEMBER, 1951 Period Western States Lumber in Bd. Ft. Total Western States Loes in Bd. Ft. Total Grand Total Eastern States Gulf States All Others Eastern States Gulf States All Others November........ 729,884 710,523 63,811 70,903 1,580,121 324,991 500,000 1 ,299,996 400,000 2,524,987 4,105,108 December......... 1,186,858 390,407 226,551 113,138 1,916,954 925,000 343,542 1 ,088,465 900,324 3,257,331 5,174,285 Difference (Increaae+ Decrease)—. . 456,974 + 320,116- 162,740+ 42,235 + 336,833 + 600,009 + 156,458— 211,531— 500,324 + 732,344 + 1,069,177+ 58 mine power-plant and mill machinery and moved this and other equip ment to base-metal mines—iron, chromite, copper, and manganese. The gold-mines remained outposts of Japanese soldiers, for which rea son they were heavy bombed in the early part of 1945. During the war period, there was no regular gold and silver pro duction, but considerable panning and high-grading of rich gold ore did go on. It is roughly estimated that over P5,000,000 was produced in this manner. Immediately after the liberation, some gold mining companies began to rehabilitate their mines and in 1947 the Surigao Consolidated Mining Company went into production. It was followed by the AtokBig Wedge Mining Company, Inc. in 1948, and the Mindanao Mother Lode Mines, Inc., and Benguet and Balatoc Mining Companies in 1949. At the close of 1951, of the 41 mines that were in gold and silver production before the war, there were 10 major gold-lode producers and 2 placer operations active,.with an estimated production of P45,000,000 at the end of the year. The gold and sil zer mining industry therefore again plays a major part in the Philippine economy. It employs directly over 15,000 workers with dependents numbering around 60,000. Others who indirectly ser/e the mines, such as lumber men, farmers, traders, transportation operators, bakers, barbers, tailors, machinery and hardware dealers, will run to another 60,000, so that there are at least 135,000 who de rive their living from the industry. Added to this number are some 25,000 stockholders, who boost the figure easily to 160,000, dependent on the gold and silver mining group alone. Gold and silver mining in the Philippines dated back to the times before the Spanish rule in the Islands. The Chinese merchants bought gold from the natives or exchanged it for the porcelain ware which is today the prized possession of some people. During Spanish times, there was considerable mining activity in the Mountain Prov ince, Mindoro, Paracale, Masbate, and Mindanao. Both lode and placer mines were operated. The Americans began prospecting as early as 1902, but production in small quantity did not begin until 1909. Mainly because of transportation difficulties, gold mining did not pros per greatly until after 1920. Mining operations were greatly intensi fied by the gold boom in 1933 and 1936. The trend of production rose steadily from 1930 on,.as seen by the following figures: gold concentrate. However, the base metals are sold to the smelters and the dollar proceeds go to the Central Bank which in turn pays the producers in pesos. The cost of shipping concentrate to the United States has increased considerably from the P8 pre-war rate to P18 lately. The cost of trans porting concentrates from the mine to the pier varies, depending on the distance; the average cost is 20 centavos per ton-kilometer. 'T'he Minimum Wage Law which went into effect in August, 1951, - * - has increased the wage of miners to a minimum of P3 per day, and will increase it further to ?4 after a year. Taxes have also gone up rapidly since the liberation. The gold production tax is on a sliding scale and now average over 8% of the gross production of the mine. The taxes paid to the Government by gold and silver mines are as fol lows: (See next page) GOLD AND SILVER PRODUCTION * Names December, 1951 Quantity Value in Pesos Au. 3,434 oz. P240.371 Atok-Big Wedge Mining Co., Inc. Ag. 1,895 ” 2,691 M.O. 13,251 S.T. 243,062 Au. 8,943 oz. 625,998 Balatoc Mining Company Ag. 11 6,246 ” 11,242 M.O. 41,566 S.T. 637,240 Year 1930. 1931. 1932. 1933. 1934. 1935. 1936. 1937. 1938. 1939. Total Value of Gold and Silver duction ? 7,409,598 7,524,867 10,200,167 16,190,785 23,823,365 31,979,030 44,317,556 51,211,544 64,060,166 74,000,914 1940 .......... 1941 (10 mo.) 1946. 1947. 1948. 1949. 1950. 1951. Total Value of Gold and Silver Production P78,458,704 64,638,836 23,375,068 33,709,084 45,000,000 (Est.) Essentially, there are no straight gold or silver mines in the Phil ippines. The gold ores always carry silver values in the ratio of from .8 up to 5 oz. of silver to 1 oz. of gold, with an average ratio of 1.5:1. Gold veins are found in fractures in andesite, diorite, or as a replace ment deposits. Contact deposit is -not unknown. The veins vary in width from one inch to over 100 feet. Veins have been followed for over a mile long and over 1,300 feet deep. Early gold production was mostly from rich surface-ores, but later, in 1932, when thq gold mines expanded their operations, operators began to mine lower-grade ore. Pre-war gold and silver ore averaged from P14 to P50 per ton, while one mine in the last months of 1941 averaged over P100 per ton in gold and silver. One big low-grade mine of 5,000 tons daily mill capacity, had gold and silver values of only from P5.50 to P6.20 per ton and was making a fair profit when the war broke out. If its mill and power plant had been saved from destruction, it could have operated profitably during the last three years because of the good price of gold in the free market during that time. The square-set stoping method is used in most of the mines be cause of the heavy ground. However, whenever possible, other meth ods are followed, such as the cut-and-fill, top-slice, shrinkage, um brella-stull, and stull in narrow veins. In the low-grade mines, the open cut and glory-hole mining is practiced. Pre-war mining costs ran as low as P2 a ton, as compared to the present P8 to P12. "Carly 'gold-ore treatment was by cyanidation and amalgamation, -•-'from which a bullion was produced. Later, complex ores were mined and milling operation became a problem. Bulk and selective flotation processes are now used to treat these complex ores, producing both concentrates and bullion. Gold concentrate is sent to the smelters in the United States. Most bulk concentrates carry, besides gold and silver, also copper, lead, and zinc. Three gold mines in Baguio are now producing only gold bullion, while the rest of the gold mines produce gold concentrates and bullion. Milling costs at present are from P4 to P15 per ton, compared to pre-war costs of from Pl.20 to P8. "Present government regulations require that 25% of the refined -•■gold production must go to the Central Bank at P70 per ounce, while the rest is sold locally at a free market price of from P108 to P112.50. The price gradually rose and spurted up to P168 per ounce for a short period in April, 1951. The gold bullion is refined either in England or in the United States, then it is shipped back to the Philippines to be sold in the local free market less 25% of the refined gold which is retained in the Amer ican banks for the account of the Central Bank. The same is true for Benguet Consolidated Mining Company............................. Au. 7,783 oz 544,831 Ag. 5,436 9,784 M.O. 34,477 S.T. 554,615 Lepanto Consolidated Mining Company............................. Au. 3,413 OZ. 238,931 M.O. 32,218 S.T. 238,931 Mindanao Mother Lode Mines, Inc........................... Au. 3,833 oz. 265,229 Ag. 4,162 6,541 M.O. 9,600 S.T. 271,770 Surigao Consolidated Min ing Company.................. Au. 3,857 oz. 269,961 Ag. 3,963 7,134 M.O. 11,368 S.T. 277,095 Looc Lead Silver Mines... None None Tambis Gold Dredging Co., Inc................................ None Surigao Placer Syndicate. . . Au. 254 oz. 17,790 Cu. Yd. 43,000 17,790 Nor-Min Ventures................ Au. 216 oz. 24,980 Ag. 49 83 Cu. Yd. 20,370 25,063 ♦ Compiled in the Bureau of Mines BASE’METALS EXPORTATION * December 1951 Quantity V lue in Names M.T. Pesos Seleo Manganese.................................................. None None Otto Sales Corporation..................................... 600 1 * 36,000 Surigao Consolidated Mining Company, Inc. 46 35,505 Hixbar Gold Mining Company..................... 164 213,073 Far East Metals and Ores.............................. None None Consolidated Mines, Inc................................... 30,390 790,140 Lepanto Consolidated Mining Company.. . . 1,125 1,712,009 Mindanao Mother Lode Mines, Inc............ 18 17,557 Philippine Iron Mines, Inc............................. 38,621 713,466 Samar Mining Company, Inc........................ 14,126 258,506 Marinduque Iron Mines................................... None None Acoje Mines.......................................................... 7,000 330,523 Misamis Chromite.............................................. None None L izon Stevedoring (chromite)........................ 1,000 25,000 Looc Lead Silver Mines................................... None None Surigao Consolidated Mining Company, Inc........................................................................ 50 38,456 Luzon Stevedoring (manganese).................... 1,500 75,000 General Base Metals......................................... None None Palawan Manganese Mine............................... None None Amalgamated Minerals, Inc............................ None None ’Compiled in the Bureau of Mines 59 Real Estate Tax...................................................................................................... Taxes on buildings, machinery, and other improvements.......................... Production Tax........................................................................................................ Dollar Exchange...................................................................................................... ICC Fee.................................................................................................................... Compensating Tax.................................................................................................. Income Tax.............................................................................................................. 7/8% 1-1/4% 8% 17% 2% 7% 28% Withholding tax on real estate and dividends—Cedula B-Tax—Pl per P5.000 value of improvements. Generally, all mining supplies, machinery, and equipment are imported from the United States. Only a few items are imported from European countries and from Japan. Because of the difficulty of gettinj these mine-needs from the United States at the present time, the mining companies are making all efforts to buy their requirements anywhere they are obtainable. Mine labor was never been a problem before the war. Mine work ers were relatively better paid than those employed in other in dustries. The Philippine gold miners were achieving high records in shaft-sinking and tunnel-driving. When the gold mines resumed operations after liberation, there was a shortage of labor until the Army and Navy completed their var ious projects in the Islands; then there was unemployment problem and men flocked to the mines. Unions were organized, higher wages were demanded, and there were strikes in one mines after another. However, it is pleasing to note that practically all the labor trou bles in the mines are now settled. The workers are happy and work hard to increase their earnings. They have free houses, light, water, fire-wood, free clinics and hospitalization, free schools and gymnasiums for their children, and sick and vacation leave with pay, besides occa sional bonuses for efficiency. Present indications for development of the mines are encouraging, given substantial ore reserves. The average value of ore per ton has dropped, but increased production has offset this. There are ex pansion programs in progress in most of the operating gold mines today. New mines still remain to be opened. While two companies have stopped exploration recently, this does not mean that the prospects they explored are hopeless. They only lack funds for further explora tion. There are a few small gold mines with excellent prospects. One is only 23 km. east of Manila and the other two are located in Mindanao. Low-Trade deposits of big tonnages have been found. This low-grade ore runs from P5 to P12 per ton with gold at P70 per ounce. The pros pects have been partially developed but because of lack of capital they remain dormant. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from December 15 to January 15, during which time the desiccated coco nut industry has been about 85% idle. The usual or customary shut-down after Christmas for the' regular annual repair and maintenance is largely responsible for this condition. However, a dull United States market continues and it appears that it will prevail for at least the first quarter of the new year. It is the writer’s belief, that the industry will continue at about 50% capacity until early April. Rumors of production quotas have been heard which would limit the production or shipment of desiccated coco nut to the actual marketing possibilities each year. Off hand, such a quota system would seem to be the cure for the present ills of over-expansion and over-production; but it would have to be carefully studied in view of poten tial competition from other desiccated coconut producers throughout the world. All in all, it appears that the desiccated coconut industry has reached a point where serious consid eration must be given to the future. The early post-war period saw hurried rehabilitation of old businesses and hasty new ventures started; that impetus continued, with over-expansion as the result. Now it seems that more cal culated plans should be considered in order to restore the industry to normal. The Philippine Government has become gravely in terested in the industry; formerly a top dollar-producer, it is slipping to a much lower position and it is the Govern ment’s intent to restore it, if possible, to former levels. It will be interesting to see what results this interest will bring about. The shipping statistics for the month of December and for the entire year of 1951 follow: Shippers December Pounds Total for 1951 Pounds Franklin Baker Company.............. 3,738,700 31,606,070 Blue Bar Coconut Company........ 1,322,790 * 13,676,885 Peter Paul Philippine Corpora tion ..................................................... 1,456,900 18,717,600 Red V Coconut Products, Ltd........ 2,333,200 16,485,700 Sun Ripe Coconut Products, Ltd...................................................... 1,055,300 8,534,485 Standard Coconut Corporation... — 1,206,140 Cooperative Coconut Products, Inc....................................................... 451,500 2,940,000 Coconut Products (Phil.) Inc.......... > — 941,800 Tabacalera............................................ — 155,900 Totals............................................ 10,358,390 Lbs. 94,264,580 Lbs * Zamboanga factory production.......... Lusacan factory production................ 191,400 lbs. 1,131,390 " 1,322,790 lbs. Copra and Coconut Oil By H. Dean Hellis Vice-President, Philippine Refining Company, Inc. November 16, 1951 to January 15, 1952 BEFORE proceeding into the matter of what has hap pened in the copra and coconut oil markets since November 15, allow us to apologize to the readers of this column for our failure to write the usual monthly article in time for the last issue of the Journal. We believe this was the first time in many years, if ever, that such an omission has occurred, and every effort, therefore, will be made not to allow it to happen again in the future. For the sake of continuity, this article will endeavor to cover briefly the two months’ spread since last report ing, rather than only the usual one month. tf the period from October 16 to November 15 was a dis couraging one, certainly the situation thereafter and until the present has been most depressing in that prices have continued to fall rather sharply all the way down. And to make matters even a good deal worse, it does not appear that the bottom has yet been reached. At long last, after a period of acute shortages of fats and oils throughout the world in general following the last war, statistics would seem to show that on balance there are now adequate supplies on a per capita basis approxi mately equal to the pre-war per capita consumption, even when taking into consideration the growth in population everywhere throughout the world since World War II began. In addition to this, Philippine copra and coconut oil continue to lose ground in the market in the United States due largely to the continued growth of the soapless deter gent industry there, an industry which has replaced soap far beyond the expectations of all concerned during the last five or six years. As an indication of just how far this has gone, we give below the annual amounts of coconut oil used by the soap industry in the United States, as re ported by the Soap Institute (U. S. A.) as follows: 1947............................................................. 511,000,000 pounds 1948 ............................................................. 417,000,000 ” 1949 ............................................................. 282,000,000 ” 1950 ............................................................. 257,000,000 ” 1951 ............................................................. 210,000,000 ” (estim As contrasted to this, the annual per capita consumption of soapless detergents in the United States has increased from 1 pound in 1945, 2 pounds in 1946, 3 pounds in 1947, 4 pounds in 1948, 5 pounds in 1949, to as much as 8 pounds in 1950. The corresponding consumption figure for the year 1951 is not yet available, but it is reasonable to as sume that it will exceed that for 1950. Thus we see the law of supply and demand continuing, 60 February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 61 as it always has done and always will, to regulate prices throughout the world’s markets. It is true that there are still some problems and barriers which are no doubt pre venting levels from reaching what otherwise might be called normal or stabilized prices based upon present actual supply and demand,—and, of course, we refer to such matters as the world being divided into soft and hard cur rency areas, which do not allow for as much of a free mar ket as would otherwise be the case, the three-cents per pound excise tax on Philippine coconut oil in the United States, the continued unsettled political situation in various parts of the world, etc. It is hard to say just what current prices might be for both copra and coconut oil were it not for these troublesome conditions, some of which are tend ing to keep levels somewhat higher, and others lower, than would otherwise be the case. A fter an analysis of exports of Philippine copra and '‘—coconut oil, particularly those to the United States, one might say that volume-wise the Philippines did not do too badly in 1951. What the average outsider does not realize, however, is the fact that the exports to the United States do not reflect consumer demand.' Much of the 1951 exports went into further stock-piling by the United States Government, but a lot more of it is still unsold in the hands of speculative dealers in the United States, as well as else where abroad. As far as actual prices go during the two months’ period under review, the market opened at around $170 c.i.f. on the Pacific Coast, and closed on the easy side with sales at $155 c.i.f. The European market for copra like wise declined from $205 or slightly lower c.i.f. at opening to sales at $190 c.i.f. at close. Coconut oil declined from 12 cents f.o.b. tank cars on the Pacific Coast to 10-1/2 cents f.o.b., and on the Atlantic Coast the margin of decline was about the same. Meanwhile, local copra prices here in the Philippines dropped from approximately P30 to P28 per 100 kilos. Copra cake and meal prices, however, remained re latively high at around $85 to $87 per short ton c.i.f. Pa cific Coast, though there are now some slight indications that the demand is weakening. quppLiEs of copra throughout the Philippines have ^continued very good, and there is every indication that 1952 may well be another heavy crop year, always barring, of course, the unexpected and unforeseen. Typhoon “Amy”, which struck the Visayas severely during the middle of December, did very little overall crop damage. It is true that considerable loss and destruction of trees were experienced in the actual path of the typhoon, but its path was so narrow that it is now thought that the percentage of loss to the total Philippine crop is almost negligible, particularly if we are justified in taking into consideration that there are always a certain number of new trees coming into bearing at all times in other areas. “Amy”, however, did do extensive damage to shipping and warehousing facilities, particularly in Cebu, and con sequently business was temporarily disrupted until the debris was cleared away and warehouses repaired. *t'he November and December exports of copra, coco -nut oil, and copra cake/meal from the Philippines were as follows: Copra To United States Pacific Coast To United States Atlantic Coast To United States Gulf Ports. . . To Canada-Pacific Coast.......... To Europe..................................... To Japan........................................ To West Indies, Central and South America......................... 55,999 long tons 53,744 long tons November 22,397 long tons 9,582 ” ” 2,500 ” 1,750 ” ” 17,770 ” ” December 29,794 long tons 2,943 ” ” 3,987 ” ” 3,250 ” ” 13,573 ” ” 197 ” ” 2.000 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 62 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 Coconut Oil To United States Atlantic 5,350 long tons 7,598 long tons Coast.......................................... 2,975 long tons 2,057 long tons To Europe................................... 1,989 ” ’’ 4,699 ” To South Africa........................ 386 ” ” — To India....................................... — 842 ” ” Copra Cake/Meal To United States Pacific Coast.......................................... To United States Atlantic 5,188 long tons 4,035 long tons Coast.......................................... 301 ” ” 302 ” ” To Honolulu............................... 430 ” ” — To Europe................................... 500 ” ” — 6,419 long tons 4,337 long tons To Japan......................................................................... 26,556 To Morroco................................................................... 631 To Mozambique........................................................... — To Netherlands............................................................. 94,115 To Norway.................................................................... 12,000 To Peru........................................................................... 1,000 To South Africa........................................................... 3,972 To Singapore.................................................................. — To Spain......................................................................... 1,329 To Sweden...................................................................... 17,000 To Switzerland.............................................................. 1,900 To Syria........................................................................... 3,400 To Venezuela................................................................. 11,800 To Other places in Europe........................................ 2,950 Total Other....................................................... 383,588 Grand Total...................................................... 760,036 288 14,381 3,956 1,263 448 776 35,411 77,117 A recapitulation of all copra and coconut oil exports from the Philippines and distribution by countries for the calendar year 1951, in terms of long tons, appears as fol lows: Copra Coconut Oil To United States Pacific Coast............................. 280,929 — To United States Atlantic Coast.......................... ' 53,349 41,706 To United States Gulf Ports................................. 42,170 — Total United States 376,448 41,706 To Algeria...................................................................... To Belgium.................................................................... To Canada..................................................................... To Columbia................................................................. To Denmark.................................................................. To Formosa.................4................................................ To France....................................................................... To Germany.................................................................. To India................................ To Italy............................................................ To Israel. . ................................................................. To Jamaica. 920 62,902 26,300 28,629 20,100 16,724 5,130 37,230 7,000 2,000 After converting coconut oil exports in terms of copra at 63% yield, the combined exports of both copra and coconut oil to the United States during 1950 and 1951 were 539,675 and 442,648 long tons respectively; and the corresponding combined exports to all countries in the world were 802,155 and 882,444 long tons respectively. The percentage of total exports of both copra and coconut oil shipped to the United States to the total ex ports to all countries was 67.3% in 1950, and only 50.2% in 1951. This, therefore, only confirms further what we have said earlier in this review concerning the decreased demand in the United States for these products. co, all in all, we are presently faced as we enter 1952 ^with anticipated good crop conditions in the Philip pines on the one hand, while on the other, with a dis couraging outlook as to demand from abroad. All of this, of course, could only add up to fairly low prices under normal conditions, but conditions, as we all know, have not been, nor are they now, normal, and therefore we should not like to make any long-range predictions as to market LOVSTED PRODUCTS AT YOUR TIGER BRONZE BUSHINGS & CASTINGS MO-LO RING STOCK & CASTINGS ROYAL STEEL CASTINGS LOVSTED BABBITTS, SOLDERS & LADLES ROYAL BLUE IRON CASTINGS MANGANESE CASTINGS DIAMOND ROLLER CHAIN & SPROCKETS DIAMOND FLEXIBLE COUPLINGS NORTH COAST DRY KILNS SERVICE PAL-WELD COMPOUND SUGAR MILL & LUMBER MILL PARTS ROTTLER BORING BARS SHAFER PILLOW BLOCKS TOOTS-E WHISTLES & SIGNAL SYSTEMS TOOLSTEEL GEARS, PINIONS, ETC. RAIL & TRACK MATERIALS CANE CARS & CAR PARTS LOCOMOTIVE PARTS SPRINGS—COIL & LEAF On Any of Your Other Requirements, Please Write Us. C. M. LOVSTED & CO. (Manila) LTD 101, 13th St., Corner Boston, Port Area, Manila—Telephone 3-32-40 Represented by SMITH, BELL & CO., LTD. in Cebu—Iloilo—Bacolod—Davao—Legaspi February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 63 and price probabilities during the coming year. Too many things can and probably will happen to change the picture as it presently appears to us at this particular writ ing. Sugar By S. Jamieson Secre tary-Treasurer Philippine Sugar Association THIS review covers the period from January 2 to Jan uary 31, 1952. New York Market. With the new milling season started in Cuba and Porto Rico and the Philippine season already in full swing, the New York market in Jan uary came under the seasonal selling pressure from sugar producers there whose storage capacity and financial needs oblige them to ship and sell for arrival during the early months of the year. The sugar demand, although both visible and invisible inventories were conceded to be low, was not sufficient to absorb the pressure, and the general trend of prices for these early arrivals was downward. Operators’ interest in Philippine sugar for May, June, July, and August shipment, for which sales were made at a premium over the spot price, perhaps indicates a feeling that, once the pressure is over, the market will respond to the bullish factors of the overall situation and bring sugar prices into closer relationship with the consumers’ price index later in the season. Trading in Philippine sugar was quite active during the month. On January 2, the first trading day of the year, the market opened firm with spot at 5.95/ and sales of prompt Cubas and 8,000 tons Philippines for January arrival and January/'February shipment at the same price. Next day there were sales of 3,700 tons Cubas, January arrival, at 5.92/ and 2,000 tons Philippines, January ship ment, at P.D.A * Sales on the 4th covered 2,100 tons prompt Cubas at 5.95/, 6,000 tons Philippines, January/ February shipment, at P.D.A., and 5,000 tons, May/ June shipment, at 6.10/. On the 8th, in an easier market, spot fell to 5.90/, and 5,000 tons Philippines, end January arrival, and 2,000 tons, early February arrival, were sold at 5.92/ and 5.90/, respectively. On the 9th, 5,000 tons Philippines, June/July shipment, were sold at 6.15/. On the 10th, spot fell to 5.85/ and a cargo of prompt Cubas was sold at the same price. For the next ten days the mar ket was under selling pressure, mainly from Cuban and Porto Rican holders. 4,500 tons Cubas, early February arrival, and 20,000 bags Porto Ricos, early February ship ment, were sold on the 11th at 5.82/ and 5.80/, respective ly, and spot fell to 5.82/. Operators, however, retained their interest in Philippines for distant shipment, buying 6,000 tons, July/August, at 6.15/. On the 15th, 14,000 tons Philippines, January/February shipment, were sold at P.D.A. On the 16th spot was 5.78/ and a cargo of prompt Cubas was sold at 5.77/. On the 17th spot was 5.75/ and sales included 40,000 bags Porto Ricos, Feb ruary arrival, and a cargo of prompt Cubas at 5.75/ and 5.73/, .respectively. On the 18th spot fell to 5.70/, and buyers were not interested in offers at that price. A steve doring strike in Porto Rico gave a steadier tone to the market. On the 21st 6,000 tons Philippines, April/May shipment, and 2,000 tons, May/June shipment, were sold at 6.00/ and 6.10/, respectively, but the next day 1,700 tons Philippines in a distressed position were sold at 5.70/1 On the 23rd there were sales of 4,000 tons Philippines, late March arrival, at 5.80/ and two cargoes of Cubas for prompt arrival at 5.73/. On the 25th 2,500 tons Phil*Price on Day of Arrival—actually, the average of the prices during a 10-day 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. 310 Canonigo, Paco Manila MANILA OFFICE-. 401 FILIPINAS BUILDING 64 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 PACIFIC MFIM HAMIISIU; C 0 It P (I RAT I (I A 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 ippines, February/March shipment, and 9,000 tons, March arrival, were sold at 5.72/. Spot rose to 5.72/ on the 28th and to 5.75/ on the 29th, on which date 2,000 tons Phil ippines, May/June shipment, were sold at 6.05/. On the 30th spot was up to 5.77/ and 3,000 tons Philippines, June/ July shipment, and 1,000 tons, May/June shipment, were sold at 6.10/ and 6.02/, respectively, and a cargo of prompt Cubas was taken at 5.77/. On the 31st, with the Porto Rican stevedoring strike still unsettled, the market closed firm. Refiners were buyers for February arrival at 5.80/ but found no sellers; 4,000 tons Philippines, February/ March shipment, were sold at P.D.A.; and spot was 5.80/. Operators were interested in Philippines for June/ July shipment at 6.10/. We give below quotations on the New York Sugar Exchange for Contract No. 6 as of January 31, and, for comparison, the peak quotations during the month: Closing Peak quotations quotations March............................................................. 5.30^ 5.45,4—January 2 May................................................................. 5.38 5.52 — ” July.................................................................. 5.58 5.65 — ” September...................................................... 5.69 5.70 — ” November...................................................... 5.70 —.— World market Contract No. January 31 as follows: 4 quotations closed on March.................................................. ........... 4 43j * May................................................................. 4.45 July.................................................................. 4.48 September...................................................... 4.48 October........................................................... 4.48 The world market spot price on January 31 was 4.45/ compared to 4.77/ on December 28. There were heavy purchases of Cuban sugar in the world market, particularly by the United Kingdom and the Continent. It is esti mated that total sales of 1952 Cuban sugar to the world market amounted to about 850,000 tons at the end of January. Local Market, (a) Domestic Sugar. Large quan tities of centrifugal sugar were bought during the month for refining for soft-drink manufacturers’ requirements at prices ranging from P13.75 to P14.25 per picul, ex mill warehouse. Dealers are buyers of centrifugals at from P13.75 to P 14.00 per picul and would probably pay up tb P14.20 for large parcels. Washed sugar is quoted at P16.00 to P16.50 for the ordinary grades and P17.00 to Pl7.50 for the higher grades. (b) Export Sugar. The controversial question of sugar exports to countries other than the United States has reached the Court and is also being debated in the House and the Senate which are now in session. There was moderate trading during the month in prompt sugars for shipment to the United States at prices ranging from P13.10 to P13.50 per picul, ex-mill warehouse. At the close there were buyers at from P13.20 to P13.30 per picul for prompt delivery and at P 13.50 for deliveries during April, May, and June. There was not much prompt sugar offering and sellers were holding off com mitments for later delivery in the hope that prices would improve. k. - General. Sugar Freight Rate. Effective from Jan uary 19 to June 30, 1952, the freight rate on raw sugar from the Philippines to United States Atlantic and Gulf ports was reduced from $22 to $20 per long ton, N.W.D. Including the stevedoring differential, the effective rate is $20.42. The 1951-52 milling is now in full swing. The effects of the December typhoon are still being felt in low juicepurities in the Visayan districts. The 1951-52 Cuban Crop. It is reported that for quota purposes the Cuban crop has been officially set at 5,900,000 Spanish long tons (6,701,346 short tons), allo cated as follows: February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 65 Short Tons United States Free Quota.............................................................. 2,125,366 United States Reserve Quota....................................................... 795,075 Cuban Consumption Quota........................................................... 321,892 World Free Quota............................................................................. 2,044,478 Special Reserve................................................................................... 1,414,535 6,701,346 United States Sugar Consumption. The Weekly Statistical Sugar Trade Journal reports 1951 consump tion at 6,360,724 long tons, refined and/or consumption value, compared to 6,783,676 tons in 1950, a decrease of 6.235%. The per capita consumption was 91.45 lbs. com pared to 99.64 lbs. The Journal also gives the raw sugar average quota tion at New York for 1951 as 6.081/, including duty, basis 96°, compared to 5.927/ for 1950. Manila Hemp By Fred Guettinger Vice-President and General Manager Macleod and Company of Philippines TOTAL pressings of hand- and machine-stripped abacS for 1951 were 978,766 bales, the highest in the postwar period. Adding to this figure the produc tion of decorticated fiber, a total output of Philippine abaca of 997,593 bales is obtained. Compared with the pressings of the previous year, 1951 shows an increase of 225,833 bales or 30% in hand- and machine-stripped fiber and an increase of 6,506 bales or over 50% in decorticated fiber. Davao pressings were 502,412 bales, or an increase from 1950 of 113,261 bales which represent 50% of the increase in the total pressings. The output in the prov inces of Albay, Camarines, and Sorsogon increased 62,235 bales to 229,795 bales; Leyte and Samar show a total profound wherever fine ears travel HIM or FBOTeCTlO" VEEDOL MOTOR ••the film of protection’" TIDE WATER ASSOCIATED OIL COMPANY MANILA . CEBU • DAVAO • ILOILO • LEGASPI duction of 154,163 bales against 120,683 bales in 1950, and the pressings in all other districts increased 16,857 bales to 92,396 bales. The annual baling report prepared by the Fiber In spection Service shows that in 1951 a total of 18,845 bales of maguey was pressed, up 9,742 bales or 106% from 1950. Other fibers pressed in the Philippines in 1951 amounted to 165 bales of ramie, or 7 bales more than in the previous year, and 3,989 bales of canton against 80 bales in 1950. December abaci pressings were 64,004 bales, up 5,308 bales from November but down, 8,050 bales from De cember, 1950. Davao December pressings at 47,058 bales were the highest of any month in the postwar years. The following are the comparative figures for balings for the years 1947 through 1951: IBmttk of Atnertra NATIONAL JavYngs ASSOCIATION Condensed Statement oj Condition December 3i, 1951 RESOURCES Cash in Vault and in Banks.................................. $1,182,633,703.44 United States Government Obligations . . . 1,692,549,460.18 State, County, and Municipal Bonds .... 421,386,501.11 Other Bonds and Securities.............................. 325,574,683.40 Loans and Discounts........................................ 3,632,685,349.60 Bank Premises, Fixtures, etc................................ 52,547,710.61 Customers'Liability on Letters of Credit, etc. . 186,609,731.42 Accrued Interest and Other Resources . . . 37,309,787.41 TOTAL RESOURCES $7,931,296,927.17 LIABILITIES Capital $150,000,000.00 Surplus .............................. Undivided Profits and Reserves 87,385,858.36 TOTAL CAPITAL FUNDS . . . . . 175,000,000.00 Reserve for Possible Loan Losses nciTcjDemand • • W,736,755,052.55) DEPOSITS ^Say.ngs&T!me 3079/111 742.67 f Liability for Letters of Credit, etc. Reserve for Interest, Taxes, etc. . $412,385,858.36 46,608,383.91 6,815,866,795.22 196,257,346.04 60,178,543.64 TOTAL LIABILITIES $7,531,296,927.17 Main Offices in the two Reserve Cities of California SAN FRANCISCO • LOS ANGELES Branches throughout California Overseas branches: London, Manila, Tokyo, Yokohama, Kobe, Bangkok, Guam BANK OP AMERICA (international) ( A wbeUy-osursedsubsidiary ) Home Office—New York, N. Y. Overseas Branch at Duesseldorf, Germany Member Federal Depuu lojurmece CerptraUm Member Federal Reserve System 66 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 Baling:s—January-December Inclusive 1951 1950 1949 1948 1947 Davao........................ 502,412 389,151 224,737 206,768 352,822 Albay, Camarines and Sorsogon.. . . 229,795 167,560 111,234 156,815 234,718 Leyte and Samar.. 154,163 120,683 104,198 105,383 104,185 All other non-Davao......................... 92,396 75,539 73,551 108,498 95,040 Total bales.......... 978,766 752,933 513,720 577,464 786,765 Total bales............. 1,051,666 748,749 452,831 587,624 750,854 China....................... 7,529 13,587 1-5,536 12,857 7,221 India........................ 5,656 8,130 3,325 2,531 7,635 Korea...................... 3,100 Australia and New Zealand............... 4,450 1,826 1,914 42 5,236 All other countries. — 947 80 3,353 2,060 Exports in 1951 at 1,051,666 bales exceeded pressings by 72,900 bales. Approximately 53% of the total exports went to the United States and Canada, 16% to the United Kingdom, 15% to Continental Europe, 12% to Japan, and the remaining 4% to various other countries. The following are the comparative figures for exports for the years 1947 through 1951: During the period under review—December 16, 1951, to January 15,1952,—prices in the United States registered further declines of from 1/2 to 1 cent in a quiet market. London was quiet but steady with buyers showing more interest after new dollar allocations were made. The Philippine provincial markets were steady throughout the period. Exports—January-December Inclusive 1951 1950 1949 1948 1947 United States and Canada............... 554,726 403,513 201,139 267,227 531,119 Continental Eu rope...................... 163,373 121,894 94,830 104,059 113,129 United Kingdom.. 170,028 84,662 41,650 60,395 66,730 Japan........................ 130,127 103,890 90,230 133,403 9,244 South Africa......... 15,777 7,200 4,127 3,757 8,480 Tobacco By Luis A. Pujalte Seer e tary - Treas urer Manila Tobacco Association, Inc. WITH all the transplanting completed throughout the different tobacco regions in the Philippines, seedlings are growing satisfactorily, and, given oc casional showers during March, the growth should be normal. The acreages planted in Isabela and Cagayan have been greatly reduced this year and a reduction of around 35% is expected in the crop. Other regions are expected to yield about the same as last year. The approximate figures for last year’s crop and for the crop expected this year, by regions, 1951 Isabela and Cagayan (Valle)... 36,000,000 lbs. La Union.........................i I 12,000,000 ” Pangasinan (Igorote). > ... <(8% Virginia type) Ilocos................................ 1 / Visayas and Mindanao (Vfsayas)........................................... 8,000,000 lbs. are as follows: 1952 (expected) 22,000,000 lbs. 12,000,000 ” (20 to 30% Virginia type) 8,000,000 lbs. Totals........................................ 56,000,000 lbs. 42,000,000 lbs. Should the expected quantities be harvested, prices are not expected to change as there will be sufficient to bacco for export and local consumption. 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: & CO., INC. j. m. mcnzi bldg. rcina regcnte cor. solcr • manila tel. 2-79-27 Automotive (Total)............................................. Automobiles...................................................... Auto Accessories......... .......................... Auto Parts......................................................... Bicycles............................................................... Trucks................................................................. Truck Chassis................................................... Truck Parts....................................................... Building Materials (Total)............................... Board, Fibre...................................................... Cement................................................................ Glass, Window.................................................. Gypsum.............................................................. Chemicals (Total)................................................ Caustic Soda..................................................... Explosives (Total)............................................... Firearms (Total)................................................ Ammunition...................................................... Hardware (Total)................................................ Household (Total)............................................... Machinery (Total).............................................. Metals (Total)...................................................... December, 1951 December, 1950 2,926,920 232,801 1,860 363,271 99 32,243 519,395 103,144 3,506,546 389,247 191,627 14,081,179 885,721 9,270 9,270 4,461,954 1,406,755 2,334,086 8,487,562 1,123,361 317,499 694 194,008 6,051 96,117 43,816 3,344,459 82,278 59,739 828,690 9,010,488 701,958 3,246 1,907 7,334,247 1,301,246 1,345,826 9,073,325 February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 67 Petroleum Products (Total)............................. Radios (Total)....................................................... Rubber Goods (Total)........................................ 79,879,226 13,168 1,600,525 51,908,616 10,802 899,319 Beverages, Misc. Alcoholic............................... 6,045 9,381 Foodstuffs (Total Kilos).................................... 27,506,266 25,287,270 Foodstuffs, Fresh (Total).................................. 150,320 181,247 Apples.................................................................. 28,036 46,763 Oranges................................................................ 12,608 8,670 Onions.................................................................. 39,132 48,539 Potatoes............................. ............................. 22,156 27,392 Foodstuffs, Dry Packaged (Total)-. .1............. 70,724 34,323 Foodstuffs, Canned (Total)............................... 246,887 329,538 Sardines.............................................................. 103,314 50,510 Milk, Evaporated............................................ 1,200 156,740 Milk, Condensed............................................. 14,149 41,999 Foodstuffs, Bulk (Total)................................... 542,681 350,727 Rice...................................................................... — 250 Wheat Flour...................................................... 490,500 288,105 Foodstuffs, Preserved (Total).......................... 1,179 892 Bottling, Misc. (Total)...................................... 882,898 899,396 Cleansing and Laundry (Total)...................... 70,647 1,395,650 Entertainment Equipment (Total)................ 21,996 3,362 Livestock-bulbs-seeds (Total).......................... 13,172 4,517 Medical (Total)..................................................... 409,562 421,536 Musical (Total).................................................... 26,284 21,220 Office Equipment (Total).................................. ' 25,609 67,469 Office Supplies (Total)........................................ 79,335 63,557 Paper (Total)......................................................... 7,610,556 5,322,485 Photographic (Total).......................................... 30,666 36,288 Raw Materials (Total)....................................... 801,764 7,311,914 Sporting Goods (Total)...................................... 27,063 96,032 Stationery (Total)................................................ 288,244 154,815 Tobacco (Total)................................................... 792,120 431,776 Chucheria (Total)............................................... 79,902 80,444 Clothing and Apparel (Total).......................... 605,895 315,514 Cosmetics (Total).. . ........................................ 33,917 90,452 Fabrics (Total)..................................................... 594,181 725,431 Jewelry (Total)..................................................... — 630 Leather (Total)..................................................... 134,335 189,367 Textiles (Total).................................................... 3,729,443 2,313,282 Twine (Total)....................................................... 46,660 47,158 Toys (Total).......................................................... 113,490 28,834 General Merchandise (Total).......................... 742,305 349,804 Non-Commercial Shipments (Total)............. 72,001 62,752 Advertising Materials, Etc. (Total)............... 38,471 15,046 Food Products By C. G. Herdman Director, Trading Division Marsman Company, Inc. MARKET conditions in foodstuffs in the Philippines remain practically unchanged from the previous month. Flour arrivals continue to be ample in quantity, and there is no prospect of a nearby shortage. Almost as soon as control of flour distribution by PRISCO was discontinued, market prices started to drop. Up until just recently, flour could only be secured by bakers at the government ceiling price. During the past few weeks flour has been selling freely in Manila to bakeries at prices from P.30 to P.40 per bag below the ceiling; in some instances, even lower. Evaporated milk stocks in the country are still ample but the serious overstock previously existing has practically disappeared. Since the middle of December wholesale prices on evaporated milk have risen from P4 to P5 a case, but it is still selling at from Pl to Pl.50 per case less than the landed cost on all except three brands. There is reason to believe that before the end of February evapo rated milk prices will be up to the point where importers will be able to realize at least the cost on their stocks and probably a fair profit, and unless further quantities are ordered forward in the near future, there is reason to be lieve a shortage could develop before the end of March. The market continues to be heavily overstocked on powdered milk. Stocks of condensed milk are normal or possibly slightly less than normal. There is no sign that any shortage should be anticipated. qjlaketkis YOUR HEADQUARTERS L FOR EVERY OFFICE L^supply need cash registers Offer a wide range of models for the progressive retail and service business. 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Box 620 68 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 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 BUILD WIMCKBILT BLOCKS Your Answer to Gives you: Fire Safety Low Upkeep Weather Tightness low cost housing Lifelong Durability Low Insurance Rates Verinin Proofness Sole Distributors NORTON & HARRISON COMPANY 814 ECHAGUE, MANILA Tel: 3-34-11 Tel: 3-34-12 On canned fish, the market continues to be heavily loaded on nearly all packs. The California sardine pack ing season has just ended and the pack was only a fraction of normal. Practically no stocks remain available on the Coast for purchase and the new packing season will not open until August. It is very probable that present stocks in the Philippines will be cleared out about April and that there will be an absolute shortage of canned fish here from then on until the end of August or later. The market continues overstocked on canned meats of most varieties, but is quite short on fresh frozen meats, hams and bacon, etc. Canned fruits and vegetables are in extremely short supply. This remark applies also to fresh fruits and vegetables. The Import Control Commission was reorganized during the month of January. As yet, however, there have been no announcements of any substantial change in the established procedure. Established importers were advised they could make applications for import licenses, being permitted to import from 10% to 20%, during the present semester, of their historical record on controlled essentials and from 5% to 10% on controlled non-essentials, with the advice that they might possibly be allotted an additional quota during the second quarter of the year should the I.C.C. have in hand any substantial amount remaining of the dollar exchange allotment given it by the Central Bank. It appears rather doubtful, however, that there will be any such surplus. Textiles By W. V. Saussotte General Manager Neuss, Hesslein Co., Inc. IN last month’s issue of the Journal, we referred to a report that old importers would be allowed 20% of their 1949 imports of critical items under the category of controlled essentials, and, in the instance of other items in the controlled essential category, as well as controlled non-essentials, 10% of 1949 imports. According to an official announcement made by the I.C.C. on January 10, the allocations in respect of textile licenses for old import ers for the first 6 months of 1952 are as follows: (1) In the controlled essentials category, certain textiles will be licensed on the basis of 20% of 1949 imports and others on the basis of 10%. Those falling within the 20% limitation include raw cotton, mercerized cotton yarns, cotton twine, bleached cotton goods for local embroidery for eventual re-export, cotton denims, cotton ducks, cotton threads, colored yarn woven goods, jute sacks, sewing thread, and twine. In the 10% category are woolen yams, rayon piece goods, and remnants and rayon threads and yarn. (2) All other cotton piece goods and remnants, as well as domestics which include blankets, towels and table cloths, and ready-to-wear wearing apparel, remain in the controlled non-essential category and will be licensed on the basis of 5% of 1949 imports. Although importers were invited to submit applica tions during the middle of January, no new 1952 licenses for textiles have been issued as of February 1. No announcements have been made by the I.C.C. in respect of allocations for new importers for 1952. As a matter of fact, the bulk of applications submitted by new importers during the last quarter of 1951 still remain un processed by the I.C.C. With reference to local garment manufacturers who are entitled to licenses as producers, the basic allocation for the first 6 months of 1952 will be 50% of their require ments for one semester. February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 69 As regards priorities, the I.C.C. announced on January 10 that licenses will be issued in the following sequence: (1) Government applications (2) Producers’ applications (3) Old importers (4) New importers t ocal market prices remained virtually unchanged ^during January in comparison with December. Prices for rayon piece goods in a few categories, including printed French crepes, actually dropped a few points, but this was offset by slight increases in a few of the cotton piece goods items. Prices in the United States, both as regards raw cotton and grey cloth constructions, remained virtually unchanged. tauring December, arrivals from the United States ■^'totalled 14,025 packages, representing a decrease of about 12,500 packages in comparison with December’s arrivals. The arrivals from the United States included 5,516 pack ages of cotton piece goods, 2,421 packages of rayon piece goods, 2,297 packages of cotton remnants, and 820 pack ages of rayon remnants. Included also were 594 packages of thread, 901 packages of cotton twinej and 696 packages of yarn. The December arrivals include the last of the imports against the PRISCO licenses which were issued • during the middle of 1951. As over 95% of the imports against these licenses have now arrived and as during the last 6 months of 1951 the I.C.C. issued licenses on the basis of 20% of 1949 imports for rayons and 10% of 1949 im ports for cottons,, it is expected that February’s arrivals will drop below 10,000 packages. January’s arrivals of 14,025 packages from the United States represents the smallest arrival since July of last year and is considerably below the annual monthly arrivals of 22,600 packages for 1949. The heavy arrivals during the last 4 months of 1951 are still largely carried in inventory, but due to the certainty that arrivals will be greatly below normal con sumption-requirements for the next 6 months, importers are not sacrificing their goods but instead are holding on to them in view of the prospects for improved local prices within the next two or three months. The following comparison of arrivals for December and January is of interest: December, 1951 January, 1952 Cotton piece goods. Cotton remnants.. Rayon piece goods. Rayon remnants. . . 5,516 13,477 2,421 4,338 2,297 2,684 820 870 The great reduction in cotton goods arrivals and the relatively unchanged status in rayon arrivals is obvious. This is directly attributable to the policy of the I.C.C. in implementing Republic Act 650, whereby the I.C.C. licensed rayons during the last 6 months of 1951 to the extent of 20% of 1949 imports but to the extent of only 10% as re gards cottons, despite the fact that the normal consump tion habits of the country call for about 1 square yard of rayon for each 4-1/2 square yards of cotton. However, as PRISCO issued almost no licenses for rayon goods but confined its licensing to cotton goods only, and as imports have now been completed against the PRISCO licenses, the future will undoubtedly witness a still greater im balance in respect of cotton and rayon goods arrivals in relation to the normal requirements of the consuming public. Arrivals of all textile items, including made-up-goods from countries other than the United States totalled 1,487 packages. Included were 170 packages from China, 326 from Japan, and 187 from Europe. December’s arrivals from Europe were 853 packages, and the marked decline is also attributable to the fact that arrivals have now been completed against the old PRISCO licenses. BOIE'S’ QUI-BRO-LAX Quinine Bromide 004: Phenolphthalein 0.04: Quinine Sulfate 0.006; 01. Res. Cups. 0001: Caffeine OtMG; Senna Lvs. Pdw. 0.03: Exeip. q s. ANTI-COLD • ANTI DENGUE TABLETS Made In The Philippines QUI-BRO-LAX Destroys the cokl infection in the system in a few hours. QUI-BRO-LAX Relieves headache and fever and tones up the system generally. QUI-BRO-LAX Acts as a mild laxative, opens the bowels and cleanses the intestinal tract of the cold mucus Sold at all Leading Drug Stores throughout the Philippines BOIE-WATSONAL LABORATORIES lUSS, HESSLE1N & CO., If. 75 WORTH ST., NEW YORK, N.Y. FOREMOST SUPPLIERS OF TEXTILE FABRICS THROUGHOUT THE WORLD for 86 years and FOREMOST SUPPLIERS OF TEXTILES TO THE PHILIPPINES FOR 51 YEARS. ♦ • FAUST SUITINGS • FLATTERY PRINTS • WALDORF PERCALES • SEINE TWINE & YARNS • AGUILA DENIMS • CARABELA CHAMBRAYS • COMMANDER BROADCLOTH • COTTON & RAYON POUND-GOODS ------------------------------MANILA OFFICE:------------------------------209 ROSARIO ST. MANILA PHONE 2-69-17 Cable Address “NEIIESCO” 70 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 ★ LUZON STEVEDORING COMPANY, ING. Manila ★ f " Doing a Fine Job! Throughout the islands today, “CATERPILLAR” products arc doing u fine job—helping in the rc-habilitation of the Philippines. These yellow machines arc in many different kinds of services. But wherever they arc called upon to serve, you can count on them to do their jobs staunchly and dependably. KOPPEL (PHILIPPINES), INC. PHILIPPINE REPRESENTATIVES: PRESSED STEEL CAR CO., INC. BOSTON & 23rd STREETS, PORT AREA •• TEL. 3-37-53 Branch * .: BACOLOD. ILOILO .CEBU .DAVAO «C0TABAT0 'ZAMBOANGA _________ —_________ / A RRIVALS for the year of 1951 are included in the fol- ** -lowing table, together with the corresponding figures for 1949: From all countries.................................. From the United States only.............. Number of Packages 1949 1950 1951 272,142 151,278 200,620 232,036 109,174 169,913 NOTE: Word has been received that Mr. L. W. Wirth, the former editor of this column and former manager here of Neuss, Hesslein Co., Inc. from 1945 to 1950 and assistant manager from 1933 to the outbreak of the war, was elected Vice-President of the Comany in New York early this month. Legislation, Executive Orders, and Court Decisions By E. E. Selph Ross, Selph, Carrascoso & Janda THE Philippine Congress is now in session. Many bills have already been introduced. We will mention a few which may be of interest to the business com munity. These are not yet laws but are pending action in Congress. House Bill 2183 authorizes the Import Control Com mission to spend in its administration P2,000,000 instead of the amount authorized in Act 650 which the outgoing ICC said was wholly inadequate. House Bill 2196 provides for the repeal of the Pres ident’s emergency powers granted by Commonwealth Act 600 as amended by Commonwealth Act 620, Common wealth Act 670, and Commonwealth Act 671. House Bill 2200 seeks to create the office of Labor Commissioner in Honolulu and San Francisco. House Bill 2203 seeks to empower municipal and city boards to issue script of one, five, ten, twenty, and fifty centavos up to amount appropriated for redemption there of, which shall be not later than two years from date of issue. House Bill 2207 proposes creation of Mindanao Dev elopment Authority with powers and objectives similar to the TVA in the United States, and to float a Pl 00,000,000 bond issue for its operation. House Bill 2213 proposes to penalize qualified voters who fail to register or having registered fail without justifi able cause to vote at any election. There is such a law in Australia and there has been discussion in the United States on this subject. House Bill 2215 seeks to exempt piece work, or con tract work from the provisions of the Minimum Wage Law. House Bill 2230 seeks to nationalize the retail drug business and provides that no new licenses to engage in retail drug business shall be issued to aliens or to firms more than 40% of the capital of which is controlled by aliens, and no existing licenses issued to such aliens or firms shall be renewable after three years from the appro val of the Act. It contains a clause that nothing in the Act shall be cgpstrued to alter, modify, or in any manner affect the provisions of the Trade Agreement between the United States and the Republic of the Philippines signed July 4, 1946. House Bill 2233 proposes to amend the Public Service Law so as to legalize the delegation by the Commission to attorneys or division chiefs to hear and investigate cases filed with the Commission and submit the evidence so received to the Commission for decision. House Bill 2242 seeks to liberalize the Corporation Law by removing the restrictions now in effect preventing a mining corporation from being interested in any other mining corporation and to remove the 15% limit on indi viduals and corporations holding stock in other corporations engaged in mining. February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 71 Senate Bill 307 introduced by Senator Tanada seeks to revise the law regarding organization and registration of labor unions. It eliminates the power cf the Secretary of Labor to cancel such registration and confers this power on the Court of First Instance with appeal to the Court of Appeals and Supreme Court as in ordinary civil actions. One feature is the prohibiting of encouraging or discourag ing membership in any labor organization but provides that nothing in the Act shall preclude an employer from making an agreement with, a legal labor organization to require as a condition of employment, membership in such labor union. It provides that certain acts shall be con sidered felonies and punished for the first offense by fine of not more than P10,000 and imprisonment of not more than one year or both in the discretion of the Court, and for the second and succeeding offenses, a fine of not less than P10,000, nor more than P20.000 and imprisonment of not less than 1 year but not exceeding 2 years. The felonies listed are briefly as follows: (a) prevent or hamper a worker from taking advantage of this Act; (b) dismiss or threaten to dismiss for joining or attempts to join a union conforming to the Act; (c) dominate or interfere in formation or administration of a labor organization or contribute financial support to it; (d) discriminate, or make conditions to encourage or discourage labor organization membership, but agreement making membership a condition of employment is permitted; (e) discourage or discriminate against worker for charges or testi - timony under the Act; (f) refuse to bargain collectively with a labor organization which has conformed to Act and represents its members. House Bill 395 * provides for nationalization of labor. It makes unlawful the operation of any “business, occupa tion, trade, or profession of any kind whatsoever unless at least sixty per centum of the permanent personnel, including officers, employees and/or laborers working for such person, association, or corporation are Filipino citi zens.” It requires the submission annually to the Depart ment of Labor, or oftener if required by the Department, of a roster of all employees and laborers showing the names, citizenship, status, nature of the work, salaries or wages, and working hours. A person or firm seeking to employ an alien must obtain a certificate from the Secretary of Justice that his admission is in accordance with the immigration laws, and a certificate from the Secretary of Labor that his employ ment will not result in excess of the limit fixed, and this certificate shall only be issued after thorough investigation by the Secretary of Labor as to the need and advisability of the alien’s employment. This certificate will cost P50. There is an exemption where there are not more than 20 employees or laborers and in case of religious, charitable, educational, artistic, scientific, entertainment, or govern mental purposes. The penalty is imprisonment for not less than 1 nor more than 5 years or a fine of not less than Pl,000 nor more than P10,000, or both. In addition the license of the employer to engage in the business, occupation,♦trade, or profession shall be withdrawn. 395 with the following amendment,: . dt b i dh b d COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. HEMP AND COPRA EXPORTERS STEAMSHIP AGENTS * 206 Myers Building Port Area, Manila, P. I. BRANCHES. Davao • Tacloban • Cebu • Tabaco SMITH-CORONA PORTABLE One glance at the new SMITH-CORONA. . . and you're convinced that it's the most beautiful and sturdy portable typewriter you’ve ever laid eyes on! Not just a “new model”. . . it’s a revolutionary all new typewriter. . . with a total of nineteen new features plus fifteen SMITH-CORONA “exclu sives”! Its smart, new Color-speed Keyboard is full standard office machine size. . . has rimless keys colored a restful non-glare green and “comfort shape” to cup your finger tips. ERLANGER & GALINGER, INC. 123 T. Pinpin, Manila • Magallanes St., Cebu City 72 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 FOR BETTER SERVICE— Call 3-29-05 ALLIED ItRIIKKIiHJK CORPOR1TIO1I Marstnan Building Pori Area Individual allention and competent supervision given to your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING odern Equipment American President Lines’ fast, dependable Cargoliners have heavy lift gear for extra heavy cargo. . . Cargocaire dehumidifying systems to protect cargoes subject to damage by moisture. . . radar. . . fire alarm systems throughout all compartments. . . deep tank healing systems to maintain bulk liquid cargoes at correct temperatures. . . pilfer-proof specie chambers and precious cargo lockers. Finest equipment is just one of many reasons why. . . COST OF LIVING PRICE INDEX OF WAGE EARNER’S FAMILY1 IN MANILA BY MONTH, 1948 TO 1952 * (1941 = 100) Bureau of the Census and Statistics Manila 1948 All (100) (63.43) (11 * 96) Cloth ing (2.04) Fuel, Light and Water (7.73) Miscel(14.84)’ Bra? January.......... 390.7 427.6 453.5I 224. 5 304.6 249.9: .2560 February........ 369.8 394.0 453.51 223.18 301.1 254.4 .2708 March............. 349.4 361.0 453.51 214.6 308.1 255.9i .2862 April................ 354.6 374.1 453.9 209.4 289.7 254.8 .2820 May................. 349.8 360.2 453.5) 214. 2 289.7 271.6i .2859 June................. 354.3 370.4 453.9 205. 2 283.2 262.9I .2823 July................. 356.4 374.2 453.5> 201..3 281.6 262.4 .2806 August............ 363.6 385.7 453.9 199.8 281.6 261.7 .2751 September. . . 370.6 397.2 453.5) 199. 2 279.6 260.6i .2698 October.......... 374.9 404.0 453.9 204. 8 283.2 257.91 .2668 November.... 368.7 394.4 453.9 202.0 281.6 258.7’ .2712 December.... 365.9 389.9 453.9 202.0 282.4 258.9I .2732 1949 January........... 363.8 386.8 453.5) 202J0 279.0 258.9 .2750 February ........ 343.8 355.5 453.5) 203.0 277.5 258.9 .2909 March............. 345.3 358.2 453. S) 202.10 276.3 258.5i .2896 ■April................ 348.7 362.6 453.51 197.6 287.5 257.1 .2868 May................. 348.8 362.8 453.9 197.12 287.5 257.1 .2867 June................. 349.0 362.9 - 453.5> 203.9 287.5 257.2! .2865 July................. 351.7 374.0 453.9 194. 2 265.8 240.5i .2844 August...... 337.5 351.2 453.9 196. 3 266.6 241.2I .2963 September. . . 333.6 345.1 453.9 190.3 264.8 243.1 .2998 October......... 332.9 343.3 453.91 199.9 264.8 245.01 .3004 November... . 339 6 356.1 453.91 191. 1 258 4 239.81 .2945 December . .. 329 6 335.9 453.91 202.19 259.5 256.2! .3035 1950 January......... 332.3 336.8 453.91 238.10 253.1 269.31 .3010 February ... 336.9 340.2 453.9 233.:J 257.8 284.1 .2969 March ........... 339.0 341.4 453.91 236/7 257.8 292.6i .2950 April................ 331.8 328.6 453.9 237.7 252.9 301.2 .3015 May.................. 320.2 308.6 453. S) 244.7 249.7 309.1 .3123 June................. 323.1 310.9 453.5) 243 . J 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.!Z 251.1 328.4 . 2990 September . .. 341.3 335.0 453.9 317.'1 252.5 327.5> .2930 October........... 352.8 351.1 453.9 337.3 249.7 334.5> .2835 November.... 354.1 353.2 453.5) 322.8 249.7 335.9i .2825 December. . . . 352.2 350.5 453.9 325.!2 249.7 334.81 .2839 1951 January... . 355.2 355.0 453.9 331.! 249.7 334.6i .2816 February.... 358.4 359.8 453.9 342.1J 249.7 334.4 . 2790 March........... 352.4 349.3 453.9 379.'4 248.8 334.3 . 2838 April............... 361.2 362.6 453.9 398.15 247.5 334.7 .2769 May................ 365.0 367.0 453.9 410.'4 247.5 339.5. .2740 June................ 367.8 372.0 453.91 399.5 247.5 337.7 .2719 July................ 366 3 370.1 453.91 382.10 247.5 339.0i .2730 August........... 365.1 371.4 453.91 354 J0 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 . .. 349.0 348.9 453.5) 335. 2 247.5 319.4 . 2865 1952 January........... 355.1 357.8 453.9 323.1D 247.5 324.6 .2816 1 Average number of persons in a family = 4.9 members. *For explanatory note, see the August Journal. It Pays You Well To Ship A.P.L. MARY BACHRACII BLDG. AMERICAN PRESIDENT LINES Your Amcricflii Hotel Abroad 25th Street, Port Area Tel. 3-32-81 MOTOR SERVICE CO, ISC. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area Tel. 3-36-21 February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 73 Philippine Safety Council By Frank S. Tenny Founder and Executive Director CONSIDERABLE progress was made in the “national safety movement” last month. Plans were finalized for the formation of the P.S.C.’s first provincial chapter in Pangasinan. Headquarters will be in Dagupan City under acting Coordinator Felipe N. Cuison, the city police chief. This will bring the movement closer to several present and potential Council members in that area. Future plans envision the establishment of chapters in Iloilo and Davao. An inquiry along these lines has been received from civic organizations in Caloocan, Rizal. A plan calculated to awaken an interest in safety among jeepney and bus drivers has begun in conjunction with Caltex, Philippines. 150,000 leaf lets depicting both safe and unsafe driving practices are being distributed in a 6-week campaign. Response the first week was already very satis factory. Another project soon to be started is a “Dim-Your-Lights” cam paign. In cooperation with the Ma nila Trading and Supply Co., drivers will be invited to have their light lowering switches repaired at no charge. New Council members are the Manila Taxicabs and Garages Asso ciation, representing 9 companies ope rating over 1,100 units. The Asso ciated Insurance and Surety Co., Inc. also joined last month. A meet ing of all P.S.C. insurance company members was held during January to discuss ways of bringing the safety and insurance groups even more closely together. At this time, 14 insurance companies belong to the Council. Other recent activities include a driver-training program at the Phil ippine Air Force, oath-taking cere monies at various firms in connection with the popular Rotary Club traffic booklet and Drivers’ Pledge, and progress on the plan to equip a “rescue-squad truck” for presenta tion to-the City of Manila. Consid erable work in fire-prevention and security matters is also going on. American Association of the Philippines EWALD E. SELPH, President of the American Association of the Philippines during its first and second years, was reelected to the Presidency by the Board of Di rectors at the first board meeting of 1952 held last month. Joseph A. Thomas, 1951 President, was un animously chosen as Vice President in view of his record of performance during his term. Frank S. Tenny, for three terms the A.A.P. Vice-President, was elected as the Recording Secretary, while Harry C. Stevenson, former Secretary, is the Treasurer. Shortly after the elections, appoint ments to the chairmanships of stand ing committee were made, with the following results: Social Welfare — Mrs. Esther K. Gibbs. Patriotic Events and Veterans— Frank S. Tenny Historical—Joseph A. Thomas Medical Advisory—Mrs. Margaret Stevenson Fil-American Matters—Paul R. Verzosa Procedure—Ewald E. Selph Finance—M. D. Arnold Social Events and Ladies—Miss He len Boyle Membership—Frank C. Bennett Public Relations—Frank S. Tenny Community Center—Roy G. Davis Two sub-committees were created to handle special assignments, the Steel Fabricators * Contractors • ENGINEERS • MANUFACTURERS • MERCHANDISERS Specializing in FABRICATION AND ERECTION OF BRIDGES, TANKS AND BUILDINGS RIVER AND HARBOR WORK SHIPS REPAIR Operating: MACHINE SHOPS FOR CONSTRUCTION AND REPAIR FOUNDRY FOR CAST IRON. BRASS & BRONZE STRUCTURAL STEEL FABRICATING SHOP MARINE REPAIR SHOPS WELDING SHOP WOOD PRESERVING PLANT Distributors for: Allen-Bradley Company American Blower Corporalion Armco International Corporatio Armstrong Machine Works °n Chain Belt Company of Milwaukee Cherry-Burrell Corporation Clayton Manufacturing Company Cuffing Hoist Company Dempster Brothers. Inc. Dodge Manufacturing Corporatio E. D. Bullard Co. " Fairbanks, Morse and Co., Inc. firth Sterling Steel Company Cardner-Denver Company C-Br. Manufacturing Company Giant Manufacturing John Austin. I..c Pa"y Johnson Service Company ATLANTIC, GULF & PACIFIC CO. OF MANILA (PHILIPPINE CONTRACTORS SINCE 190S) EXECUTIVE OFFICES • ENGINEERING DIV. STRUCTURAL & MACHINE SHOPS Barrio Punta, Sta. Ana, Manila Tels. 6-75-31 • 6-75-32 • 6-75-33 MERCHANDISE SALES DIVISION Roberc Dollar Bldg. Muelle de San Francisco & 23rd St., Port Area. Manila Tel. 3-36-61 (Collecting all Depts.) 74 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 Employment under Theo. L. Hall, and the American Community News letter group, as part of the Public Relations Committee. The Corpo rate Secretary is Miss Natividad Y. Ortiz. all 1951 members and new ap■^■plicants are advised that 1952 dues are now payable and should be remit ted to P. O. Box 1495, in Manila. The family-type membership is but PIO per year, and covers both the husband and wife. Individual mem berships are P5. Although previous membership fig ures of the Association have been Call 5-42-71, or Write P. O. Box 285, Manila, For Free Estimates CADWALLADER PACIFIC COMPANY 337 Perez Street, Manila Borroineo Street, Cebu City satisfactorily high, it is hoped that this year an even wider coverage of the Community may be achieved, including military, business, and gov ernment personnel. All American citizens are eligible to join. The Government (Continued from page 54) Jan. 23 — The President, aboard the Apo, directs Chief of Staff, Maj.-Gen. Calixto Duque, to start the immediate organization of additional combat teams totaling 6,000 men to intensify the campaign against the Huks, the expenditure of $5,000,000 of the TODAY’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. $10,000,000 United States aid to Philippine defense, having been approved for this pur pose. The President also instructs General Duque to take measures against the banditry which he discovered was rampant in Leyte. Jan. 24. — Stopping at Masbate, the Pres ident having learned that dynamite fishing is badly depleting the fishing resources in eastern Visayas, instructs provincial officials there to send all persons caught fishing with dynamite to jail. Counterpart project No. 13 is reported to have been signed providing for the impor tation of some 450 .purebred boars from Australia for breeding purposes Jan. 25—The President returns to Manila. Jan. 27 — The President entertains Li beral Party senators and representatives at luncheon and takes up a number of proposed Administration bills with them. Jan. 28 — The third session of the second Congress opens, and the President, in his State of the Nation address, appeals anew for national unity. Acting Senate President Quintin Paredes presided over the Senate and Speaker Protempore Domingo Veloso over the House. The Philippine and Japanese reparation delegations hold their first meeting, the Philippine delegation presenting the demands that the Japanese Government recognize the claims of the Philippine Government in the amount of P16,159,247,959, “which is based on damages officially recorded by the Philippine Government”, that the Japanese Government settle the claims of the Philip pine Government within a period of from 10 to not more than 15 years, and that the Japanese Government make partial or interim reparations immediately available to the Phil ippine Government even before the conclu sion of a reparation agreement and the rati fication of the Peace Treaty by the Philip pine Government. The Japanese Delegation asked for time to consider the demands. Jan. 29 — The President receives Minister Juichi Tsushima, head of the Japanese repa rations delegation, who calls to pay his re spects. Earlier in the day the President received Gen. Shigenori Kuroda, former Commander-in-Chief of the Japanese forces in the Philippines, who was recently granted executive clemency after serving 4 years of a life sentence for war-time crimes; General Kuroda leaves on the S.S. President Wilson. The Cabinet approves the sending of a Manila Gas Corporation engineer to the United States for training at the expense of the Corporation; the Government purchased the controlling stock shortly after Liberation through the National Development Com pany. PHILCUSA announces that plans for an intensified program of ECA aid to the Philippine cattle industry is under considera tion. Jan. 30 — Announced that the President has named the following Presidential Com mittee on Reparations to advise him in the formulation of policies: Secretary Elizalde, Chairman, and Secretary of Finance Aurelio Montinola, Senators Eulogio Rodriguez, Vi cente Madrigal, Emiliano Tria Tirona, and Manuel Briones, Secretary Cornelio Balmaceda, Secretary Pablo Lorenzo, Representatative Diosdado Macapagal, Governor Mi guel Cuaderno, Messrs. Ramon Fernandez, Ramon Roces, Vicente Sinco, Antonio de las Alas, Jose P. Marcelo, and Judge Gui llermo Guevara. The President gives a luncheon in honor of former Secretary of Foreign Affairs Carlos February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 75 “LET YOUR HAIR DOWN” SHORTLY after this issue of the Journal will reach its readers, the American Chamber of Com merce and the Journal offices will be moved from the El Hogar Building in down-town Manila to No. 424 San Luis Street, right off the Luneta. The Chamber will occupy the entire lower floor of the new three-story Zulueta Building there. The premises will be lighter and cooler than the present quarters and will be easier to reach, the streets being wide and P. Romulo, who leaves today as Ambassador to the United States. The President issues Proclamation No. 304 fixing the values of certain foreign currencies for purposes of assessment and collection of customs duties. The Government concurs in the appoint ment by the Government of India of Mirza Rashid Ali Baig as Minister to the Philip pines. Minister Baig -was until recently De puty Secretary of the Indian Government and succeeds P. * R. S. Mani who has been acting as Charge d’Affaires of the Indian Legation in Manila. The Philippines will shortly announce the appointment of a new permanent chief of its diplomatic mission in New Delhi. Jan. 31—The President vests the Philip pine panel headed by Foreign Secretary Elizalde with full powers to negotiate and conclude an agreemtejit with the representa tives of the Japanese Government for the settlement of the Philippine reparation claims. The Philippine negotiating body is composed of Secretary Elizalde as Chairman, and of Under Secretary Neri, Central Bank Governor Miguel Cuaderno, Minister Jose P. Melencio, Chief of the Philippine Mission in Tokyo, and Prof. Vicente G. Sinco, minor ity party representative in the group. The President inducts Dean Conrado Benitez and Daniel Gomez as members of the Labor-Management Advisory Board, to take the places of Gonzalo Puyat and Daniel Aguinaldo who resigned recently. The other three management representatives on the Board are Angel Elizalde, Rafael Roces, and Jose P. Marcelo; labor is repre sented by Eulogio Lerum, Aurelio Intertas, Hugo Retaga, Desiderio Dalisay, and Eduardo Jana. Labor Secretary Jose Figueras is Chairman of the Board. The President urges a rriore strict enforcement of the 8hour labor law and a study of ways and means to strengthen the nation’s labor laws. Announced at Malacanan that the National Planning Commission has approved the proposed construction of a bus terminal for the city at the old Bilibid Prison com pound on Azcarraga Street. there being plenty of parking space for cars. The traffic congestion and the difficulty of parking in the down town area provided probably the principal reasons why the 1951 Board of Directors decided upon the move as one of its last official actions. The coffee shop will be continued in the new place and there will also be a For LONGER MILEAGE Use B. F. Goodrich Tires for Your Car The broad, flat tread hugs the ground and spreads the weight of the car over a wider surface. An extra thickness under the tread gives extra protection against road shocks and blow-outs. For longer, safer mileage, buy B. F. Goodrich convenient library and reading room for members, furnished with com fortable chairs, fans, etc. We will have two telephone trunk-lines instead of only one, as in the past. Whether a formal opening will be held, we do not know, but members are cordially invited to come and look the place over. The Executive Vice-President, Mrs. Gonder, emphasizes that the wives of members will also always be welcome; there will be a convenient primping room, we think. The editor will have a small private office of his own, the first quiet place, he says, he will be occupying since the start of the war as a place to work. This Journal is one of the best media for advertising addressed to business and plant managers Goodrich International Rubber Co. 13th and Atlanta Sts. Port Area MANILA TEL. 3-37-21 76 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 nr«HE editor received the following letter from Mr. Fred Guettinger, editor of the Journal Hemp Column, as a covering letter for his “copy” in this month’s issue: “Enclosed please find my ‘Manila Hemp’ report for the period December 16, 1951, to January 15, 1952. “I have long felt that other hemp export ers who are members of the Chamber should have a go at the Hemp Column, and when I recently made the suggestion to J. Deane Con rad and Merle Robie, both expressed their willingness to undertake the task. “Accordingly, Merle Robie will write the column for the 1952 issues of the Journal, beginning with the March issue, and Deane Conrad will do it during the following year. “If both these eminent fiber men will write the column as long as I did, it will be in 1956 before it will be my turn again. "I sincerely trust that the new arrange ment will be satisfactory to you. Sincerely, etc.” Again this letter is an excellent illustration of the sense of respon sibility of the Journal's column edi tors and of the great personal in terest they take in the work. Of course, Messrs. Robie and Conrad will be most acceptable as contrib utors to “The Business View” pages of the Journal. Mr. Conrad is Pres ident and General Manager of Conrad & Co., Inc., and Mr. Robie is General Manager of the Columbian Rope Company of Philippines, Inc. Any successor to Mr. Guettinger as a Journal column editor, however, will be put to it to perform the work as ably and accurately and regularly as he did it. His column in this issue of the Journal is particularly interest ing as it contains the annual figures not only for Manila hemp, but for maguey, ramie, and canton. Mr. Guettinger, who succeeded Mr. H. Robertson as editor of the column, has handled it since January, 1950, and the Journal and its readers are greatly beholden to him. For High Efficiency and Low Operating Costs Type S double suction, single stage pump driven- by Allis-Chalmers motor. MOTOR Allis-Chalmers Type S pumps are ruggedly built for high efficiency performance and low operating costs. They are versatile pumps used for almost any general pumping service. Sizes from 30 gpm and 10 feet of head to 7000 gpm and 475 feet of head. Suitable for motor, engine or turbine drive. A-C supplies you with complete unit made by same manufacturer—one purchase, one responsibility, one guarantee of satisfaction. TEXROPE* V-BELT *Texrope is an ALLIS-CHALMERS Trademark Exclusive Distributors: THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Cor. Tacoma & 2nd Sts. Port Area, Manila Telephone: 3-35-41 P. O. Box 282 Branch Office at Bacolod, Oce. Negros yyT-E saw a copy of an interesting letter recently addressed to Mr. Alfredo Montelibano, Chairman of the Import Control Commission, concerning Executive Order No. 471, issued upon the recommendation of the Commission, which totally bans the importation of certain foodstuffs, —smoked ham, canned ham, bacon, canned bacon, canned pork, sausage items, poultry, and eggs. The letter was signed by representatives of Armour and Company, Macondray 8b Co., Inc., Connell Bros. Company, Acme Commercial Company, and P. Austria & Company. The letter states that the writers had not previously “voiced concern” over this order as they wished to give the subject thorough study and sub mit an accurate report. The first point made is that the writers believe that there is ample room, and a necessity, in the Phil ippine market, for both imported and domestic production of the items named. Secondly, they are of the opinion that the present freight rates, the import license fees of 2%, the ex change tax of 17%, and customs duties where they apply should serve as more than ample protection for domestic producers and that further restriction by banning “unduly pe nalizes local consumers with short ages and higher costs of living and only provides opportunity for a few local producers to reap excess pro fits”. These are basic points, and the third point is also: “Contrary to recent newspaper reports, local processors, to the best of our knowl edge, are not equipped to supply in any com mercial quantities, the items of canned ham and canned bacon. Nor do they have any methods of processing that will preserve smoked ham or bacon for any appreciable length of time; consequently, many sections of the Philippines can not obtain these items unless they are conveniently close to the source of manufacture or have refrigeration facilities.” February, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 77 The fourth point brings out the fact that even if the methods of pro cessing referred to could be followed here, there would not be enough of the fresh products which could be so treated. “Philippine post-war raising of cattle, hogs, poultry, and other meat-producing animals, eggs, etc., is not sufficient to take care of the minimum needs for the health of the people. Nor can an increase develop overnight. In the schedule attached, we give you a report of past production and future estimates obtained from the files of the National Economic Council . . . From 1951 to 1954 inclusive, these products re gister an annual average increase of about 6-2/3%. . . The Bell Report brings out quite clearly that marked improvement in animal and poultry raising depends upon the Philippines’ ability to produce more and cheaper animal feeds. This clearly indicates that considerable time must elapse before adequate and reasonably-priced meat and poultry supplies from local sources can be available to the people.” The writers, computed, fifthly, that annual minimum meat requirements for the Philippines as around 1,638,000,000 pounds or 744,500,000 kilos, and compare this with the 1951 Phil ippine production which amounted to only 233,283,000 kilos, or less than one-third of the required quan tity. The stated minimum is based on the population figure of 20,000, 000, of whom 90% are over the in fant class, and a stated minimum daily amount of animal protein to be obtained from 4 ounces of meat or meat products, including poultry and eggs. The writers point out that the only other source of protein is fish, but state that official figures show that our fisheries 'produce around 240,000,000 kilos, which still leaves the Philippines short by a full third of the amount needed to main tain reasonable standards of public health. The sixth point is made that the need of more meat in the diet is par tially recognized by the decontrol of canned corned-beef and Vienna sau sage, but it is asked, “Why should the people’s diet be restricted to these two meat items?” The letter goes on to state that frozen beef and veal have been placed in the “Controlled Essential” cate gory of imports, but points out that there is a world-wide scarcity of these meats, with consequent diffi culty of procurement and high costs, and concludes that it is necessary, therefore, to rely upon the importa tion of pork, poultry, and eggs as supplementary sources. The seventh and eighth points deal with malnutrition as still pre valent, and with the vitamins and minerals in meats, and it is then stated: "If we refer again to the attached sched ule, we find that the present ability of local production to provide normal requirements to maintain health is far from adequate, if not outright ridiculous. Using 1951 figures we can compute that on an average the fol lowing quantities are available as expressed in simple figures— “For each person—1 egg every 2 weeks . . . and 1 chicken every 4 months. . . . And each group of 16,000 people have the unique pri vilege of dividing up 1 turkey per year . . . Yet the above items are totally banned.” The letter concludes: “We do not consider it sound economic principle to foster by legislation, major pro cessing of products unless the supply of raw materials is plentiful and reasonable in cost. To add processing costs to products which 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 lor you—now and in the future. MANILA ELECTRIC COMPANY 134 Sun Marcelino Manila are in ready demand in their raw state, doe not increase the supply and only adds thar much more to the average person’s cost of living. As soon as meats are available in satisfactory quantities at reasonable prices, we feel sure processing plants will develop automatically. Encouragement of the rais ing of feed for animals and of an increase in the number of animals and fowls grown should be the Government’s primary concern at this time.” So now we know why, in Manila, a humble order of ham and eggs sandwich, even in the cheaper res taurants costs Pl.20 and an order of ham and eggs or bacon and eggs in the better restaurants from P2.00 to P5.50! “I see MORE POWER in your FUTURE!” 78 AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1952 AGENTS BROKERS CHARTERERS TELEPHONES 3-34-20 3-34-29 American Steamship Agencies, Inc. Manila, Shanghai, Tokyo, Yokohama Cable Address: 203 Myers Bldg. “AMERSHIP” Ajea npHE editor received a letter, writA ten in San Francisco and dated January 11, from the Chamber’s former Executive Vice-President; she signed it “Marie Willimont ‘Ex’ ”,—only meant as a joke, we are sure. Certainly, she is the same old Marie Willimont! “So far a wonderful trip! (No ink, hence pencil.) Smooth, except from Wake to Honolulu, when we were certainly tossed all over the sky. Got up to 20,000 feet once to get over the bumpy clouds. I’ve never had such super-service. Leaving Manila I was wafted through the air port with no customs inspection or even any look-see by the Bu reau of Internal Revenue for my money. The food on the plane was excellent and, leaving Honolulu at 6:30 p. m., for our dinner we had as much champagne as we could stand. Called on Riley Allen in Honolulu (he wishes to be remembered to you), with the resulting news, clipping inclosed, which he personally wrote. Of course, most of the detailed comments are his,— very few were mine. I also had a nice interview with Govvernor Long at the Palace; he’s the same as ever. “I am also enclosing a few other clippings which I thought might be of interest to you. How is the appointment of Admiral Spruance taken in business circles? “It is terrible weather here, cold and a damp rain ever since we got in yesterday morning at 6:15. (We ask here whether a rain is not always at least slightly damp?] “Got my two chests through Customs with no trouble whatsoever,—they arrived on the Wilson; no inspection or opening again. “I telephoned the children in Denver last night and they are fine. Pat has taken a house for all five of us which we shall move into Monday morning,—all furnished, four bedrooms; $80 a month. Isn’t that a break? We leave San Francisco tomorrow morning and get home Sunday night. “I have thought of you all a lot and do certainly miss you. Hope everything is running smoothly at the office. Do let me know the results of the Chamber election on the 25th. I talked to Nate Most over the telephone. ‘ ‘ Sorry this is' so short, but time is speed ing and I want to get a note off the Stan. Stay well! My best to all the office force. “Sincerely, etc.” Mrs. Willimont gave her address as 1428 South University Street, Denver, Colorado. “HpALKiNG about bottles,” said the editor, “I have a three-year old grandson who still likes his bottle,— milk-bottle, of course, and when, by accident, he broke the last one in the house, this was mentioned at the supper table a day or so later and his mother said that she had had to give him a Coco-Cola bottle. His auntie said, “No, it is a Pepsi-Cola bottle”. The three-year-old himself spoke up then and said laconically, “Tru-ade”. “I was- interested enough”, said the editor, “to go to the kitchen to check, and, sure enough, the little boy had outobserved both mother and aunt. What discrimination for one so young!” C. F. SHARP & COMPANY, INC. 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