The American Chamber of Commerce Journal Vol. XXX, No.5 (May 1954)

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Title: The American Chamber of Commerce Journal Vol. XXX, No.5 (May 1954)
Issue Date: Vol. XXX, No.5 (May 1954)
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extracted text: Published monthly by the American Chamber of Commerce of the Philippines 424 San Luis Street, Manila, Philippines — Telephone No. 3-23-24 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of-the American Chamber of Commerce of the Philippines Paul R. Parrette, President; W. M. Simmons, Vice-President; A. H. Henderson, Treasurer; F. C. Bennett, S. W. G. Lehman, John Oppenheimer, E. E. Selph, F. H. Spengler, and Paul H. Wood. Mrs. Virginia Gonder, Executive Vice-President; I. T. Salmo, Secretary Vol. XXX May, 1954 No. 5 Editorials— Contents Bell Act Provision "Suspension”........................................................................................................................................................................................... This Year’s "Nationalization” Bills...................................................................... ..................................... Turkey’s New Foreign Investment Law ..................................... The 5-day, 40-hour Work Week............................................................................................ ........................................................................ On Russia and Maps of the World................................................................ The Bomb and World Government ................................................................. .................................................................... “Capital”............................................................................................................................... ........................................................................................ Statement on the "Nationalization” Bills . . Committee on Foreign and Domestic Trade, American Chamber of Commerce of the Philippines.......................................................... Automotive Companies in the Philippines.................................................................... J. L. Mann/ng................................................... Brief Review of the Government’s Business Policies................................................................. President Ramon Magsaysay.................. Philippine Foreign Trade Statistics, 1953 Compared with 1952 ... Bureau of the Census and Statistics I. Twenty Principal Imports......................................................................................................................................................................................................... II. Twenty Principal Exports........................................................ .......................................... III. Foreign Trade by Nationality of Traders, 1953 ........................ .......................................................................................... 167 168 170 170 171 172 173 173 174 176 177 178 180 The Business View— The Government.................................................................................................................. Banking and Finance................................................................................................................................. Manila Stock Market................................................................................................................................. Credit............................................................................................................................................................... Electric Power Production................................................................................................................ Real Estate..................................................................................................................................................... Building Construction................................................................................. Port of Manila.......................................................................................................................... Ocean Shipping and Exports.................................................................................................................... Freight Car Loadings................................................................................................................................. Mining............................................................................................................................................................. Lumber............................................................................................................................................................ Manila Hemp .............................................................................................................................................. Sugar................................................................................................................................................................ Copra and Coconut Oil........................................................... ............................................................. Desiccated Coconut..................................................................................................................................... Tobacco.......................................................................................................................................................... Rice................................................................................................................................................................... Imports............................................................................................................................................................ Food Products............................................................................................................................................... Textiles . ........................................................................................................................................................... Legislation, Executive Orders, Court Decisions ............................................................................ Philippine Safety Council......................................................................................................................... Cost of Living Index (1935-1954) ................................................................................................................ The “Let Your Hair Down” Column............................................................................................................ From Official Sources....................................... 180 M. D. Arnold.................................................. 183 J. J. Ortigas...................................................... 183 P. Luthi ............................................................... 184 J. F. Cotton.................................................... 184 A. Varias............................................................ 185 J. J. Carlos....................................................... 185 W. S. Hurst....................................................... 186 B. B. Tunold.................................................... 186 J. B. Li bunao................................................... 186 H. A. Brimo...................................................... 186 P. de Ocampo.................................................... 188 R. Duncan.......................................................... 190 J. H. d’Authreau ......................................... 191 W. S. Rice, Jr.................................................. 192 H. R. Hick........................................................ 193 L. A. Pujalte................................................... 194 C. O. Houston, Jr......................................... 195 S. Schmelkes...................................................... 196 C. G. Herdman................................................ 198 A. Margollf.s.................................................... 199 R. Janda............................................................... 200 F. S. Tenny. .............................. 200 Bureau of the Census and Statistics......... 202 ................................................................................... 203 50 CENTAVOS THE COPY STANDARD-VACUUM’S pledge to the Philippines... All of us are needed to help our government build a stronger, more prosperous Philippines. The Standard-Vacuum Oil Company is dedicated to the task of assisting in the achievement of this vital aim through its contribution to a more abundant economy; helping to provide more agricultural production, maintenance of profitable industry and development of more economical transportation. To this end, we pledge ourselves to supply the finest fuels needed to run machines at lowest possible cost... highest quality lubricants and greases for the protection of costly capital equipment... and the world’s greatest petroleum engineering and experience. Above all, Standard-Vacuum pledges a full measure of service in the best interests of the government and people of the Philippines. Serving the Philippines9 petroleum needs for over 57 Editorials . . . to promote the general welfare” Manila dailies on May 1, published the following United Press May 1 dispatch from Washington concerning proposed new legislation with respect Bell Act to the Philippine-American Trade AgreeProvision ment: “Suspension” "Executive agencies were studying a State Department draft of the proposed Philippine trade legislation and—depending on their views—the measure might go to Congress by mid-May, it was learned today. “The draft transmitted to the Budget Bureau this week was un derstood to propose an 18-month extension of the period of free trade between the United States and the Philippines. “The 5% duties, scheduled to be imposed on July 4, and the ad ditional 5% the following year, would be waived. After this adjustment, duties would start at a rate of 15%. “It was learned that a copy of the draft has been transmitted to Philippine President Magsaysay and he now was giving it personal study. “Reliable informants reported that the proposed draft made no mention of the commodity-by-commodity review of the PhilippineAmerican Trade Agreement. Such a review had been urged by the Philippines... “The Budget Bureau has circulated the draft to interested Ad ministration agencies, including the Tariff Commission, the National Advisory Council, and the Departments of Commerce, Treasury, and Agriculture. “The views of these agencies will determine whether the Bill goes to Congress in its present form. The speed with which they reply will govern the timing of such a move.” An Associated Press dispatch, dated from Washington on May 2, stated that— “a U. S. State Department spokesman said the Department has sent the extension proposal to the interested government agencies. He said this included members of the Inter-Governmental Committee which consists of representatives of the State, Treasury, Commerce, Agri culture, and Labor Departments, the Tariff Commission, and the Foreign Operations Administration.” The formidable list of government agencies gives an idea of the gantlet the proposal must run. And if agreement is reached, the proposal still will have to be introduced and approved by the United States Congress,—and by the Congress of the Philippines. The Philippines Herald pointed out in an editorial that the State Department proposal does not provide for an “extension” of the eight-year free-trade period, which ends on July 3 of this year, but for a “suspension” of the cumulative tariff percentage levies of 5% a year. But even a “suspension” of eighteen months would probably still be a gain as it would not only afford that much more time for adjustment, but, especially> as much could happen during the next year-and-a-half which might affect the situation to the Philippine advantage. Actually, the proposal, in effect, constitutes an advance credit extension to the major Philippine export trades and industries and would be a distinct favor which should be recognized as such. According to press reports from New York on May 7, the powerful National Foreign Trade Council had thrown its influence behind efforts to postpone the imposition of tariffs on trade between the United States and the Philippines and had earlier recommended that the Philippine Trade (Bell) Act of 1946 be amended to delay the coming into force of duties for from one to five years, this suggestion being purposefully general as it represented the informal and disparate views of some of its 1,000 members. The Council is a private organization of American businessmen engaged or interested in foreign trade. A dispatch from Washington that same day reported that the Bureau of the Budget had “stamped its final approval on legislation to prolong free trade with the Philippines for another 18 months,” this action signifying approval by all interested executive agencies and clearing the way for prompt transmission of a draft Bill from the State Department to Congress. It was stated that under prodding from the State Department, the Bureau of the Budget had resorted to the tele phone in order to speed the process of final clearance. On May 13, the State Department transmitted to both Houses of Congress the draft of a bill the pertinent parts of which read: A Bill to provide for an extension on a reciprocal basis of the period of the free entry of Philippine articles in the United States: “Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, that the duty-free treatment provided for in Section 201 of the Philippine Trade Act of 1946 (60 Stat. 143), shall apply in lieu of the treatment specified in paragraphs (1) and (2) of sub-section (A) of Sec tion 202 of that Act, to Philippine articles entered, or withdrawn from warehouse in the United States for consumption during the period after July 3, 1954, but not after December 31, 1955, as the President may declare by proclamation to be a period during which United States articles, as defined in that Act, will be admitted into the Republic of the Philippines free of ordinary customs duty, as such duty is defined in that Act, provided that any such proclamation shall be without prejudice to the said paragraphs (1) and (2) being considered as having been in effect for the purpbse of applying the provisions of paragraph (3) of sub-section (A) of Section 202.” (Continued on page 175) 167 It is distinctly worthy of record that, as reported in the newspapers early in April, Speaker Jose B. Laurel, Jr. asked Representative RaThis Year’s “Nationaliza- mon M. Durano, Chairtion” Bills man of the Committee on Commerce and Industry, to “temporarily desist from reporting out any nationaliza tion bill,” allegedly because of “the adverse reaction abroad to the pending measures.” The Committee had been holding public hearings on a number of bills to “nationalize” various industries and trades, the word “nationalize” to be understood in this connection, not as meaning a taking over by the govern ment as in socialist countries, but as restricting these trades and industries to nationals of the country. Prior to the action of the Speaker, a labor nationaliza tion bill (House Bill No. 1711, “An Act for the Protection of Philippine Labor”) had already been passed by the House and is now pending in the Senate. The Manila Times of April 8 reported that the Speaker— “had directed the Durano committee to ‘go slow’ on the nationalization measures pending before it, citing the explosive implications of the bills from an international standpoint. He said he was neither for or against the bills, but was only cognizant of the advisability of suspending further action until the Philippines could officially adopt a policy on the matter. Laurel, Jr. said he intended to call a Nacionalista-Democratic caucus after the Holy Week recess in order to submit the nationa lization question. He also said he intended to get President Magsaysay’s reaction before allowing the House to resume consideration of the nationalization measures.” The Philippines Herald reported a few days later, April 10, that certain members of the House, apparently chiefly the authors of the various bills, were protesting against the suspension of committee action and were dis posed to resort to the necessary parliamentary tactics to take the bills out of the Committee for deliberation on the floor. This time Speaker Laurel was said to have “em phasized the significance of the bills” as they “vitally affected the economy of the country.” There has probably never been held a single session of the Philippine legislative body since the creation of the first Philippine Assembly in 1907, when a number of “na tionalization” bills were not introduced, but few of them ever passed, and if they did, they were vetoed by the chief executive. During the years when this chief executive was an American,—the Governor-General, the bills were passed with the full knowledge that the Governor-General would not and could not approve them, the game being merely to embarrass him and to compel him to draw upon himself the onus,—if onus there were, for blocking a law that secretly even its framers may not have wanted. There is reason to think that the old game has never actually stopped even when Filipino chief executives,—Quezon, Osmena, Roxas, Quirino were the heads of state, and now Magsaysay. A “nationalization” bill is easy to draft and appeals to easily aroused prejudices and is therefore one of the first resorts of such members of the legislative body who can not think of anything better to stir things up and draw attention to themselves; often, no doubt, this has been personally profitable to them. For these reasons, this type of bill has generally not been taken seriously, although it is unquestionable that they have had the very serious effect of discouraging foreign investment and retarding the economic development of the country. It can certainly not be adduced to the credit of the present Congress that perhaps never before have so many of these bills been introduced in a single session. Our count is 31 separate bills, for the House alone, 5 of which would nationalize the retail trade; 1, the wholesale trade; and 1 both the import and export trades. No less than 8 would nationalize the rice industry and trade; 5, the lumber industry; 2, the tobacco industry; 3, the retail trade in medicines, drugs, and chemicals; 1, the shoe in dustry; 1, the duck (and balut) industry; one bill singles out the copra export trade; and another single bill would nationalize the trade in rice, flour, corn, sugar, copra, tobacco, abaca, and lumber! Some 29 members of the House have affixed their names to such bills, either as introducing or as sponsoring them. It is gratifying to note that in the Senate only a few of these bills have been introduced, but one Senator in troduced three. At any rate it was high time for the Speaker of the House, as one of the most highly responsible men of the Congress, to call a halt to this sort of mislegislation. What has led to this rash of discriminatory, treaty violating, unconstitutional, and undemocratic pseudo legislation is a question that is possibly answered by the post-war hyper-nationalism that has not yet entirely spent itself; possibly also by the election to Congress, especially to the House, of a considerable number of men, of perhaps patriotic intention, but of little knowledge of the principles of law or experience in law-making. Speaker Laurel deserves the support of every re sponsible inhabitant of the country, citizen or alien; for let it be understood that though such “legislating”, or even the threat of it, does great harm to the alien, much the greater harm is done to the country and the Filipino people themselves. The chief harm is not done to the alien, but to the national economy, both as to its present state and its further development. There is no sense in prating about economic develop ment and plans for development, if at the same time the existing economy would be deliberately overturned and destroyed and for the reason that non-Filipinos are still taking a historically-determined, and a hard-won and honestly-won, part in it. No foreign government and foreign investor could view such a program with the least understanding, let alone, sympathy. Nothing could pos sibly be both more unjust and more unwise. It is, of course, understandable that the fact that a good part of the country’s industry and trade is conducted by aliens, is irksome to the nationalist. But there is no thing to prevent the nationals of the country from going into business, and, indeed, for many years now, they have been doing so on an increasing scale and making a success of it. This is good for everybody, alien businessman and national alike, as well as for the country as a whole,—so long as this natural process proceeds on a basis of honest and fair competition. There can be no valid objection to this type of “nationalization” of industry and trade, and it is, in fact, inevitable. But there will always be ob jection to discriminatory and confiscatory policies and “laws”, both on the part of the aliens in business here and their governments, and on the part of those Filipinos, them selves, who have an understanding of the law and of eco nomics and of those governmental principles and policies which make a nation prosperous and great. A Malacofiang press release of May 7 stated that the President had presided over a bi-partisan caucus at which agreement was reached "to proceed cautiously and systematically on nationalization in order not to risk abrupt and possibly disas trous dislocation of the national economy." “Attended by Nacionalista-Democratic Party and Liberal congressmen and members of the National Economic Council (which body includes Cabinet Secre taries), the caucus decided to restrict nationalization legislation during this session to a proposed bill which will limit retail trade to Filipinos. Under the bill.. .aliens already engaged in this occupation . .. will be permitted to continue in business ... until his death or voluntary retirement.. . and where such retailers are constituted as partnerships or corporations they may remain in the tiade for a period of 10 years ... The caucus, whose decisions will have to be concurred in by the Senate at a caucus of Upper House members to be called for the purpose, decided to devote the coming congressional recess to gathering of data and statistics that will form the basis tor long-range studies on nationalization for the future." 168 May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 169 Summer is here with scorch * ing heat . . . and I’ve been working doubly hard to help you beat the heat! . . . working to keep you and your family com fortable in spite of the abnormal heat . . . work ing to keep the food in your refrigerators and home freezers fresh and wholesome . . . keeping air conditioners, room coolers, and fans running full speed day and night. Yes, when the temperature soars there’s much more work for me to do in addition to my regu lar chores around the home . . . work that I’m glad to do so long as it’s helping you. Reddy Kilowatt Your Electric Servant MANILA ELECTRIC COMPANY 134 San Marcelino, Manila Tel. 3-24-21 If the reader will refer to the editorial in last month’s issue of this Journal entitled “The Philippines Ranked as to Investment ‘Climate’”, he will Turkey’s note that Turkey is rated at 77 on a New Foreign scale of 100, as compared with the Investment Law rating of 70 for the Philippines. No doubt one reason why Turkey was given the higher rating was the enactment early this year of Turkey’s “Foreign Investment Encouragement Law”, quoted in full recently by the American Chamber of Commerce of the Philippines in A.C.C. Bulletin No. 241, May 4, 1954. It is interesting to note that a copy of the law was furnished the Chamber by Mrs. Mildred Hughes, Executive Vice-President for the Far East of the American Council of Commerce and Industry, New York, who visited Manila last month,—which goes to show how closely this American business organization is following legislation of this kind in foreign countries. The Turkish law permits full repatriation of profits, interest, and dividends at the prevailing official exchange rate, and there is no minimum time limit on transfers of capital and capital gains. One article of the law provides that “any part of the profits of an approved enterprise may be reinvested and added to the United States capital base.” An “approved enterprise” is one which, by decision of a “Foreign Investment Encouragement Committee” and the approval of the Council of Ministers, will (a) “tend to promote the economic development of the country”, (b) “operate in a field of activity open to Turkish private enterprise”, and (c) “entail no monopoly or special pri vilege.” On the other hand, “All rights, immunities, and facilities granted to domestic capital and enterprise shall be available, on equal terms, to foreign capital and enter prise engaged in the same fields.” The “Foreign Investment Encouragement Committee” is composed of the General Manager of the Central Bank of the Turkish Republic as Chairman, and of the following members: the Director General of the Treasury, the Di rector General of Domestic Trade, the Director General of Industrial Affairs, the Chairman of the Board of Research and Planning of the Ministry of State Enterprises, and the Secretary General of the Union of Chambers of Com merce and Industry and Commodity Exchanges. An article on Turkey in the April 1 issue of World, America’s Magazine of World Events (New York), states: “Turkey may become a booming haven for American investors. To attract capital, the Turkish Government is now enacting a series of laws designed to satisfy the most exacting requirements of cautious foreign businessmen. Last month, Turkey denationalized her petroleum resources and made them available for development by foreign capital. In January, the Government had opened industry, agriculture, and commerce to overseas investors and authorized them to take home up to 100% of their net profits, dividends, and capital base. Thus a favorable investment climate is being created.” It is an interesting fact that Turkey’s population of 21,000,000 people only slightly exceeds the population of the Philippines, and that conditions there are in many respects similar. According to World, 75% of the people live on small farms or in villages. Of the national income in 1952, 58% came from agriculture, 13% from manufacturing, mining, and construction, 13.5% from transportation and communication, and the remaining 15.5% from miscel laneous sources. From 1948 to 1952, the per capita income rose from $128 to $175. Literacy is still low, health and medical facilities inadequate, but the Government has been taking steps to improve these conditions and there has been a considerable expansion of agriculture and industry and a comparable improvement in productivity and the standard of living. However, the expansion has created strains and the balance of trade has shown deficits during the past five years with imports tending to outrun export earnings. World summarizes the trade as follows: of the total imports, capital equipment made up 50% during the past five years, raw and semi-manufactured equipment 25%, and the rest consisted of consumer goods and foodstuffs; of the exports, 50% was made up of raw and semi-finished materials (tobacco, wheat, minerals); 45% of food and livestock; and the remainder of manufactured products. To date, Turkey’s best customers have been Germany, the United States, France, and Italy, in that order. In a table of the factors which make up the general “investment climate,” World rates Turkey as “excellent” in transferability and property security; as “good” in free dom to manage, future market, and operating profit; as “fair” in present market, degree of taxation, financial facilities, transportation, and labor relations; and as “poor” in industrial facilities. Comparison of the Philippine ratings given in the table published in last month’s Journal shows that the Philippines and Turkey rank the same as to present market, future market, operating profit, degree of taxation, and property security. In transferability, however, the Philip pines gets only half the rating of Turkey (4 points as against Turkey’s 8); in freedom to manage the Philippines gets 15 points as compared to Turkey’s 17; and in industrial facili ties, which include financial facilities, transportation, and labor relations, the Philippines gets 2 points as against Turkey’s 3. Now, instead of following the example—as some argue that the Philippines should, of various South and Central American countries, all of which, except Venezuela, rank well below the Philippines as to their investment climate ratings, why not follow the example set by such prospering countries as Canada, West Germany, the Netherlands, and Turkey? It is to be doubted that President Magsaysay would approve either one of the two Senate bills * providing for a 5-day, 40-hour working week, even The 5-day, if one or the other is passed by Congress, 40-hour Work as he has all along laid great stress on Week the need for work and increased pro *Senate Bill No. 27, introduced by Senators Magalona, Primicias, and Peralta, and Senate Bill No. 72, introduced by Senator Primicias. Both would amend Com monwealth Act No. 444, known as the “Eight-Hour Labor Law,” enacted in 1939. Senate Bill No. 72 provides for an automatic increase in wages'so that no worker will "suffer a reduction of his weekly or daily wage or compensation”; Senate Bill No. 27 provides for no such automatic increase, but for an offsetting increase in payment for over-time. Similar bills were introduced last year, but failed to pass. duction in the promotion of the economic development of the country and the welfare and happiness of the people. Only recently the President ordered that public works projects must be pushed to completion on a 3-shift, 24-hours-a-day basis. And while he authorized the observance in government offices of the usual short hours during the hot season, a full working day is observed in Malacanang itself because of the “exigencies of the service.” Certainly, the present time is not one for slacking. We have the Eight-Hour Labor Law, enacted in 1939 during the period of the Commonwealth, and this law, being strictly enforced and generally faithfully observed, fully meets the conditions of the present day. There is, of course, a trend in the more advanced industrialized countries, toward a shorter working week, but conditions here are very different and make the insti tution of a five-day working week most inadvisable. Provided a country’s production needs are adequately met and no special emergency, such as a war, exists, every consideration favors a gradual reduction in working hours and a lengthening of leisure time, in so far as this is made possible by improvement in the means of production, greater management and labor efficiency, etc. 170 There has already been a great improvement, his torically, in this respect. Everyone knows that during the Middle Ages in Europe, the hours of labor of apprentices and journeymen were practically unlimited. The advent of the factory system intensified this evil, especially after the invention of gas-light which made night-work possible. In 1815, Robert Owen, on humanitarian grounds, proposed a 10-1/2-hour working day for workers under 18, but pro gress in this direction was slow. Although as early as 1868, the United States Congress enacted an 8-hour labor law for federal government employees and government con tractors, the various States did not take similar action for many years. Even as late as 1912, the semi-official International Association for Labor Legislation proposed an 8-hour labor day only for certain of the more laborious and dangerous trades, and the official delegates at the 1913 conference arranged by this Association contented themselves with a suggested limitation of the working hours of women and children to 10 hours a day. We should not be too critical of this today for we should understand that what the industry and commerce of any country can do in gradually increasing wages and in decreasing working hours is strictly limited by existing conditions of capital availability, the means of production, the labor supply and its character, the effective consumer demand, etc. Industry and commerce can not be held solely responsible for the working hours necessary and the wages that can be paid when these are not what we would all desire. Hours and wages are inseparably tied in with the state of the general economy of a country for which the responsibility is general. The first World War (1914-1918) gave impetus to the shorter-hour movement because it led to a greater general recognition of the importance of labor and the need for husbanding it. Between the conclusion of that war and the year 1921, many of the industrial countries of the world adopted legislation laying down the 8-hour day and a 44or 48-hour week, and this became practically the standard, although in most Asiatic countries workers still toiled from 10 to 12 hours a day. It is an interesting fact that during the second World War (1939-1945) working hours in England in the munition plants, aircraft factories, and shipyards were again in creased, but it was found that in spite of the long hours, production began to decrease because of fatigue and illhealth among the workers and a mounting accident-rate. A government board reported that there was little gain and probably actual loss if working hours exceeded 60-65 a week for men and 55-60 hours for women. A new movement developed during the depression which followed the first World War and which became very serious in the United States beginning in 1929. This was a movement toward a further reduction in working hours as a remedy for unemployment because this would tend to spread the work. The National Industrial Re covery Act, governing interstate commerce, promoted the 40-hour week, and other federal legislation followed which would make it appear that what was at first adopted as an emergency measure is .beginning to be regarded as a permanent -“reform”. State legislation, however, has not kept pace with the United States Congress in this respect, although today, the 40-hour, 5-day working week has become fairly general. But that is in the United States, not the Philippines, where the general economic conditions are almost the very opposite of what they are in the United States. There is, to begin with, over-production there, while there is under production here. The United States is already very com pletely industrialized, while industrialization here is still in its opening stages. The United States possesses a tre mendous industrial plant, while here our large factories are still few. The United States has magnificent highway and railroad systems, while the Philippines still has to build them. The United States has billions of dollars of surplus capital to invest; the Philippines has to resort to outside capital. The United States has largely been built; we still have to build the Philippines. The time has not yet come when we in the Philippines can take things easy. We naturally take Sundays off, and other holidays, but to take another week-day off would cut out working-week by more than 16%, and our pro duction by what would amount to perhaps more. It is true we have unemployment here, but the solu tion to that problem is not to spread a minimum of work among more people, but to provide opportunity for more work by in every way promoting general economic deve lopment. In the introductory notes to both of the two Senate bills, it is emphasized by the authors that they are intended for the benefit of labor. The intention is no doubt honest enough, but laws of this nature do not work out this way. Arbitrary increase in the cost of labor is tantamount to a decrease in the supply of capital, and this, in turn, in tensifies the scarcity of capital goods necessary to produc tion. As costs rise, prices rise, and real wages fall; labor is not benefitted. The fact that wages in the United States are higher and working hours lower than in the Philippines and many other countries "is not an achievement of the government and of the laws of a country,” states a noted economist. "It is the outcome of the fact that the capital invested per head of the employees is much greater . . . and that consequently the mar ginal productivity of labor is much higher. This 'is not the merit of ‘social policies’; it is the result of the laissez faire methods of the past which abstained from sabotaging the evolution of capitalism. It is this laissez faire which the Asiatics must adopt if they want to im prove the lot of their people.”—Von Mises. A 40-hour working week here would mean no relief, but an affliction and a very grave handicap. No one, prob ably, will recognize this more clearly than President Magsaysay. On Russia and Maps of the World A suggestive article by Charles Kruszewski, entitled “The Pivot of History”, appears in the Foreign Affairs quarterly for April. It deals principally with the famous British geographer, Hal ford John Mackinder (1861-1947), and his theories about “geographical cau sation” in history and the “natural seats of power.” The article contains a reproduction of Mackinder’s famous “Fig. 5”, one of the maps he used in illustrating one of his first noted lectures. It shows the “pivot area” (Russia, Siberia),” surrounded by what he called the “great inner crescent” (Germany, Austria, Turkey, India, and China), and the “outer crescent” (Britain, South Africa, Australia, the United States, Canada, and Japan). Mackinder’s “Fig. 5”, entitled “The National Seats of Power” 171 States Kruszewski: “On his Mercator-projection Mackinder had boldly shifted the conventional European center and showed the Americas on the edge of each side of Africa, Europe, and Asia. In this manner he indicated that he saw the world ‘as a whole’. Enclosing this novel picture with an earth-girdling oval, he made his message dramatic by dividing the natural seats of power into three areas,—one, a ‘pivot’ area, wholly continental; a second, an ‘outer crescent’, wholly oceanic; and a third, an ‘inner crescent’, partly continental, partly oceanic. Mackinder had shattered the old, comfortable picture of the relations of the continents as well as complacent notions of the relations of sea power and land power. His own countrymen paid little heed, but German strategists pondered carefully what he had disclosed, and Hitler came close to bringing sea power to destruction by capturing land bases on which it rested. Today, statesmen, generals, seamen and airmen everywhere see the round world through Mackinder’s eyes. And they see the Soviet Union in control of what he described as its Heartland.” In the lecture referred to and in books he wrote later, Mackinder emphasized that— “in the world at large, Russia occupies the central strategical position... She can strike on all sides and be struck from all sides, save the north.” In 1943, states Kruszewski, he was asked whether he considered that his strategical concept of a Heartland had lost any of its significance under the conditions of modern warfare, but he reiterated his faith in the Heartland idea as more valid and useful then than it had been either 20 or 40 years before; also, he did not feel that air power had revolutionized military strategy. He lived long enough to see the war brought to a close by the explosion of atomic bombs, but not long enough to write about it. He foresaw, however, that the Soviet Union would emerge from the Second World War as the greatest land power on the globe. The article leaves the reader to speculate as to what Mackinder would think today with the further development of both aviation and of the atomic bomb. Also, what he would think of the fact that Russia is no longer safe from attack from the north,—from advanced bases in Greenland and Alaska and from points far north in Europe. As to Mackinder’s “Fig. 5” map of the world, it is very natural that men have been thinking of the world as stretch ing from east to west, or west to east; for one thing, be cause the world’s shipping, and now its aviation, has plied chiefly in those directions. It was long almost entirely over looked that there is a Northern Hemisphere as well as there are Eastern and Western hemispheres. Today, another projection of the earth’s land masses has become familiar as a part of the design of the seal and the flag of the United Nations. In this design, the great continents surround the North Pole, which is represented at the center. Russia, in this projection, does not appear to be so centrally situated as in Mackinder’s and similar maps. In fact, there would seem to be no “Heartland” at all, the center of the world being that geographical “pivot area”, the cold and desolate Arctic Ocean, over which, nevertheless, Russia could be most directly reached from a number of points and especially from points on the North American continent. It is true that Soviet-Russian territory, despite its enormous size, is relatively compact and that the Russians have the advantage of the use of interior lines. It is also true that, today, it is exerting enormous expansive pressure all about its periphery. However, the wide-flung spread of the other continents and of the countries both in the “inner crescent” and the “outer”, would be an advantage in both offensive and defensive operations. Russia-Siberia is not today, by grace of geography, so irresistible and so invulnerable as it appeared to be during Mackinder’s lifetime. The Bomb and World Government With the development of the H-bomb, an instrument of wholly unprecedented dimensions of destructiveness, against which such escape measures as dispersion and retreat underground are futile, the question arises whether this does not afford the first opportunity in history for the establishment of a world government able to enforce its laws. The formation of a world government has never before appeared to be feasible because unchallengable authority and power could not up to now be placed at its disposal. The present United Nations is no more a world govern ment than was the League of Nations; their chief powers were and remain those of moral suasion. Economic sanctions have been applied but were suc cessfully defied, in the case of the League, by Italy, Japan, and Germany, and the issues raised between them and other nations had finally to be referred to the age-old ar bitrament of war. More recently, economic sanctions have been defied by Russia and its satellites, including China. And the more important forceful intervention of the United Nations against the aggression in Korea, beginning now four years ago, only led to a small war with still undecisive results, mainly because by far the larger burden of the action was allowed to rest on the United States and the United States Government was unwilling to resort to the use of the atomic bomb. Today, the will to peace of the greater part of mankind is still defied by the Russian totalitarian state and those states under its evil domination in their continuing acts of subversion and aggression outside their own borders. But now, because of the development of the new weapons, unchallengable power has come into being, and while it is true that the United States does not hold an absolute monopoly in these weapons, it is generally accepted that it is far in the lead of any other nation in the world with respect to them. The United States is, however, morally restrained in resorting to their use for merely national advantage except in retaliation after itself suffering attack. Suppose, then, that the Government of the United States, so authorized by its people, turn over to the United Nations, as the existing nucleus for a world government, all its atomic weapons and the means for producing them, on condition that that organization, with the consent and sup port of the majority of mankind, will assert, obtain, and maintain a world monopoly in these weapons, at the same time ordering all aggression and subversion everywhere to cease, while being, from the beginning, instantly ready, if necessary, resolutely to employ to this end the required minimum of the overwhelming force which will have been placed at its command. With perhaps some limited slaughter, but possibly with none, —as the lifting of the mace of this supreme authority and dread power alone might suffice, we should then have established a world government which would be wholly democratic, yet possess the strength necessary to restrain and suppress the global out lawry and criminality which today menaces every man and every hope and which may, as things are, lead to the destruction of the world and the death of the human race. There is no way out except thus to form and empower a firm union of all law-abiding nations, which then shortly would come to embrace all peoples. 172 Statement on the 1’Nationalization” Bills By the Committee on Foreign and Domestic Trade Controls American Chamber of Commerce of the Philippines, Inc. THE American Chamber of Commerce of the Philippines, Inc. is in full sympathy with the aspira tions, as disclosed in numerous nationalization bills introduced into the present session of Congress, to increase the participation of Filipino citizens in the general trade of the country. But while the basic objectives of these bills reflect the natural desire of the Philippine people to do minate their own economy, the means to be employed, as well as the necessity for such measures, are open to serious question. In the first place, although no fully satisfactory sta tistics are available, those which have been produced show that the Filipinos engaged in retail and wholesale trade already outnumber foreigners by a vast majority. These thousands of businessmen did not require special discri minatory legislation to set them up in business. L. R. Aguinaldo, Ang Tibay, La Mallorca, Panibusco, H. G. Henares 8s Sons, Puyat 8s Sons, Rizal Cement Co., and many others are examples of Filipino enterprises which thrive under competitive conditions without special treat ment. Initiative, vision, and hard work are the indispen sable qualities possessed by the founders of these concerns which made their establishment and subsequent success possible. If these qualities are lacking, the best intentioned statutes are totally inadequate, and where these qualities are present no special legislation is needed. As a body representing American businessmen, we naturally look to the experience of the United States for the light it may throw on the effects which may be ex pected from the proposals under consideration. The United States did not grow to its position as the wealthiest nation in the world, nor did its great corporations attain their present size, ’ through nationalization measures. In the early stages of United States economic development, foreign capital was warmly welcomed and foreigners were invited to immigrate to America. Instead of surrounding such foreigners with restrictions, they were encouraged to engage in enterprises of their choice and many made notable con tributions to the growth of the country. The many thou sands of prosperous Filipinos in the United States attest to this policy. It is generally agreed that the Philippines should attract as much foreign capital as possible to accelerate the develop ment of its boundless natural resources. It should be ap parent that the nationalization bills of all descriptions which have been introduced into the present session of the Philippine Congress create a climate which would serve to repel rather than invite prospective foreign investors. In a day when the free world is rapidly growing smaller and when political and economic isolationism is largely dis credited, such restrictive legislation can hardly be regarded as anything but anachronistic. Such a complete displacement of aliens in commerce as is contemplated by these bills could not be accomplished without creating very serious dislocations in the economy of the country. Uprooting and destroying established commercial houses which have played an important part in the country’s business, is certain’to introduce chaotic conditions in the economic system for a long time to come. Moreover, the problem of what to do with the dispossessed can not be lightly ignored; nor can the very sizable capital expenditures required to compensate the dispossessed for business property and assets the use of which would be denied to them by nationalization. Surely there is a more orderly and, from a long-range point of view, more permanently effective way to enlarge the share of Filipino businessmen in the country’s trade. The thousands of Filipinos already engaged in trade show that the ability and will successfully to compete in com mercial pursuits are a part of the national heritage. En couragement and education can hasten and facilitate the entry of many more Filipinos into trade. This is a govern ment responsibility. Training centers can be set up to teach the fundamentals of business to aspiring entrepre neurs. Special credit facilities should be made available to the small businessman, and a corps of experts could be trained by the Government to travel throughout the Islands, to visit Filipino stores and to show the proprietors on the spot how to deal with the common problems with which they are all faced. These are only a few of the means which can be employed to build up a flourishing and growing body of Filipino businessmen which we feel would achieve sounder, more lasting results than the unnatural and arti ficial measures proposed in Congress. ‘•Capital” is still a word which is misunderstood by a great many people. One of the best definitions and explana tions of the term was incorporated in an “Capital” article, “The Meaning of Pan-Americanism” by Ezequiel Padilla, a professor of law and formerly Minister of Foreign Affairs of Mexico, which ap peared in the latest issue of the quarterly magazine, Foreign Affairs. It is quoted as follows, together with several intro ductory and concluding lines of great interest: “The root of Latin America’s great evils is poverty. And that does not spring from congenital incapacity or racial inferiority; it comes from lack of investments. “What are investments? What is enterprise? “They represent man’s ability to conquer nature. Without enter prise, without investments, without capital, nothing can be done; that is why the strength of a nation is reflected in its investments. “The capital which sets up a business is not formed, as primitive minds may imagine, by money in circulation, nor even by credits and financial arrangements. “Capital is the accumulation of the savings of generations. “When we say we need United States investments, spiteful minds think of a caricature labelled ‘Wall Street.’ They do not realize that the ‘reserves’ are the accumulated resources of intelligence, order, and willingness to sacrifice—the sayings cf the multitudes of people spread throughout the great North American continent. “This capital represents billions of hours of work transformed into forces which are a sacred heritage and the mainsprings of civilization. Such capital also represents struggles to realize the people’s claims to a better life and the conquests of inventive genius, all implicit in the technology which has put into man’s hands the power of lifting himself out of poverty and misery. “All this wealth, this store of achievement, this vast power of human deliverance, is epitomized in these magic words: Enterprise, Capital, Investment. “It is this accrual that the United States, motivated by idealism and by the new American spirit of helping other nations to help them selves, can use to enable the Latin American peoples to redeem them selves not only from the oppression of man but of nature,—from soul destroying poverty. . ♦The paragraphing is the Journal editor’s. In the original article the whole 173 Automotive Companies in the Philippines By J. L. Manning Manila Trading & Supply Company AUTOMOTIVE land transportation has played a vital role in the economic life and development of the Philippines for the past almost half a century. One of the most important links of the automotive land-transportation chain, from steel mill to manufacture, to railroad, to freighter, to assembly plant, to sales organ ization, to consumers, are the franchised automotive dealers. In the Philippines, the automotive dealers have played a most significant part in the economic development of the country as they historically expanded their functions far beyond those normally carried out by similarly franchised dealers elsewhere in the world. Specifically, the Philippine automotive dealer generally handles his own retail-credit financial paper (retail-credit sales self-insured), his own automotive assembly plant, large parts-inventories, and large and complete service and repair shops. Capital investment is considerably larger than the average found elsewhere in similar businesses, and payrolls in point of numbers run considerably larger than in the average automotive dealerships in the United States. A detailed history of each of the dealerships and the makes of vehicles will not be attempted here. However, a listing showing the pre-war and the post-war pictures will be of interest and useful. Bachrach Motor Co., Inc.: Founded by Emil Bachrach who entered the automotive business in 1907 and through the years at different times since then, handled such well-known makes as stutz cars, overland cars, ford cars, mitchell cars, briscoe cars, de vaux cars, minerva cars, scrips-booth cars, buick cars, r c h American midget cars, duran cars, STAR cars, WILLYS KNIGHT cars, Cadillac cars, Packard cars, Austin cars, and the nash cars. The Company has handled the chalmer trucks, star trucks, clydesdale trucks, ford trucks, federal trucks, and the white trucks. Of the above long list, the Bachrach Motor Co., Inc. continues to handle the Austin and nash cars, and federal and white trucks. Bataan Motor Corp: Established by the C. V. Starr interests; handled Studebaker cars and trucks from the end of the last war until 1950. E. C. McCullough & Co.: Originally a printing and stationery office; handled electrical supplies, Reming ton typewriters, U. S. tires; also dealt in tobacco and manu factured cigarettes. Acquired the ford agency in 1911-1912. Also distri buted “e. m. f.” and paige automobiles and alco trucks (American Locomotive Co.). The automobile department, including the ford agency, was sold to the Manila Trad ing & Supply Co. on January 1, 1918. Embassy Motors: Established in 1946 jointly by Elizalde & Co. and R. P. Runion. Exclusive distributors for the sale * of de soto cars and trucks. Estrella Auto Palace: Entered the automotive business in 1902 or 1903 and handled French vehicles up to 1914, such as the rennault, panhard, and brassier cars and the de dion bouton and delahaye trucks. After 1914, the Company imported the hupmobile, dodge, essex, and Hudson cars, and, more recently, it represented the Hudson cars and diamond t trucks. Fabar, Inc.: Founded by Manuel Barredo in 1949 as agents for Studebaker cars and trucks; has installed a small but complete assembly plant in 1951 to handle im portations of this automotive equipment on “Complete Knocked Down” (CKD) basis. Filipinas Auto Sales Corp.: Obtained the franchise for Luzon on dodge cars and trucks in 1953. Insular Motors, Inc.: Founded in 1934 by Mr. Frank Liddell in partnership with Eugene E. Wing, formerly of the International Bank and later Manager of the China Banking Corporation; acquired from the Pacific Com mercial Company, oldsmobile car sales, pontiac cars sales, oldsmobile truck sales, willys and mack trucks, and reo trucks. The organization was not reactivated after the war. International Harvester Company of Philippines: International Harvester Company purchased MacLeod & Company in the Philippines in 1904 and operated under that name in the shipping and fiber business. The Company began its motor truck and farm machinery sales in the Philippines in February, 1921, under Herman Forst. It expanded its truck and farm machinery sales under the name of International Harvester Company of Philippines in 1930. The General Manager at that time was L. L. Spellman who was followed by N. H. Duckworth. Annual motor truck sales have increased consistently since the 1930’s when the late President Que zon inaugurated his road-improvement program. Crawler tractors and other industrial equipment today also account for a large portion of the Company’s business. Liberty Motors, Inc.: Established in 1946 jointly by Elizalde & Co. and R. P. Runion. In 1948 it was taken over by the C. V. Starr interests. Exclusive distributor in the Philippines for willys products. Liddell & Co., Inc.: Established in 1946 by Frank Liddell who obtained the franchise from General Motors to handle Chevrolet cars and trucks and spare parts for Luzon, Masbate, and Marinduque; also to handle oldsmo bile cars and gmc diesel trucks and spare parts for the Philippines. Liddell Motors: Founded in 1949 by Frank Liddell as dealers for Liddell & Co., Inc. in the products of Chevro let, oldsmobile, gmc diesel and parts for Luzon, Mas bate, and Marinduque. Active sales operations stopped in 1950 when Northern Motors, Inc. was organized and took over the distribution. Liddell Motors, Inc.: Established in 1949 by Mrs. Irene Liddell and operated as dealers of Liddell & Co., Inc., up to 1950. Luneta Motors Company: Established in 1915 by Walter Hicks and later taken over by Macondray & Co., Inc. Pre-war, the Company handled maxwell cars and trucks (which later became Chrysler and Plymouth cars and trucks) and federal trucks. Post-war, it is the dis tributor for Packard and English ford cars, and reo and English Thames trucks. Macondray & Co., Inc.: Automobile Department established in 1928; pre-war the Company handled willys cars and de sotto cars and trucks; post-war, it handled Luneta Motor Company products until that Company was rehabilitated. Manila Motors: Established about 1925 by Alexan der Bachrach and Walter Hicks. Bought out Harry Everett to handle Studebaker cars and trucks; pre-war only. Manila Trading & Supply Co.: Obtained the franchise to handle products of the Ford Motor Com pany in 1917 and has continued as dealers up to the present time. The Company was formed by Julius S. Reese who remains its majority stockholder and President. Handled ford cars and trucks, fordson tractors, Cleveland cars, and Lincoln cars; later, with standard shift ford cars and trucks, mercury, zephyr, and Lincoln cars. 174 Between the period 1945 and 1947, several dealers in the products of the Ford Motor Company were appointed in the Philippines, as follows: 1. Bicol Trading, Inc.,—Iriga, Camarines Sur 2. East Visayan Motors, Inc.,—Cebu City 3. Davao Motor Sales,—Davao City 4. Mindanao Motor Corporation,—Cagayan de Oro City 5. Montilla Motor Company,—Bacolod City 6. Panay Motors, Inc.,—Iloilo City 7. Port Motors, Inc.,—Manila (Subsidiary of Manila Trading & Supply Co.) Mayon Motors, Inc.: Originally in business under the name and style of Krivenko Motors, Inc. The Com pany was established in 1946 and handled the sale of pontiac cars under the management of Messrs. Manney and Kri venko, and gmc trucks. Northern Motors, Inc.: A sister company of Southern Motors, Inc., organized in 1950 to handle distri bution of Chevrolet, oldsmobile, and gmc diesel trucks in Luzon. Pacific Commercial Company: This Com pany began doing automobile business through its sub sidiary, the American Hardware & Plumbing Company about the year 1915. The American Hardware fie Plumb ing Company at that time was a corporation, but was dissolved a few years later. After its dissolution the automobile business was done in the name of the Pacific Commercial Company and under the trade names Auto motive Sales Company and Pacific Motors. The Pacific Commercial Company handled all General Motors automobiles and trucks, consisting of Cadillac, la salle, BUICK, OAKLAND, OLDSMOBILE, POKTIAC and CHEVROLET automobiles and g.m.c. and Chevrolet trucks. It also brought in some opel automobiles manufactured in Germany by General Motors Corporation. The Pacific Commercial Company retired from the automobile business in 1941. Pacific Motors: Under Frank Liddell and E. E. Wing, this Company acquired from the Pacific Commercial Company in 1941 the importation and distribution of Chevrolet cars and trucks. After the war in 1945, it operated for a short time. Parsons Hardware Company: Some years ago, this Company acquired the hupmobile agency from the Estrella del Norte and also handled semi-diesel trucks and Packard trucks just prior to the war. It is not at present in the automotive business. Philippine Motors, Inc.: Established in 1951 for the sale of Chrysler and Plymouth cars and fargo trucks. Ramcar, Inc.: Established in 1919 as an electric repair shop and battery manufacturer. The Company now imports and assembles hillman minx cars and wayne All-Steel bus bodies. Ramcar, Inc. is owned and operated by Ramon Caro. Reliance Motors, Inc.: Established in 1946 for the sale and distribution of buick and Cadillac cars. Rizal Motors, Inc.: Acquired franchise of Plymouth and Chrysler cars and fargo trucks for Philippines in 1950. In 1953, the Company established an assembly plant of Chrysler products, a division of Rizal Motors, Inc. Southern Motors, Inc.: A sister company of Northern Motors, Inc., established in 1946 for the distribution of GMC products in the Visayan Islands and Mindanao, with branches in Cebu, Bacolod, Iloilo, and Davao. Teal Motors: For a period prior to the war this Company handled buick cars and reo cars and trucks; it was owned and operated by Ellis H. Teal. United Motors (P. I.), Inc.: Originally established in 1940 and re-established in 1946 for the sale of dodge cars and trucks. Yutivo Sons Hardware Co.: In 1940 this Company took over from the Pacific Commercial Company the dis tribution of GMC spare parts throughout the Philippines; also the sale of Chevrolet, pontiac, buick, Cadillac, and gmc trucks for the Visayas and Mindanao. After the war, it appointed Southern Motors, Inc. to handle the distribution of the foregoing lines. 't'he following table of the post-war importations into A the Philippines of automotive products, broken down into categories, by years, at dealer-cost, reveals the size of the industry: 'Estimates only; exact figures not available. Year 1946: Qty Value 3,132 $4,443,971.49 2,010 $3,139,828 87 Spare Parts $ 529,808.51 Totals 5,142 $8,113,608.87 1947: Qty 5,481 5,222 8,839,151.26 10,703 Value 8,598,515.91 1,673,148.39 19,110,815.56 1948: Qty 6,747 6,069 12,816 Value 12,195,788.71 11,438,275.50 3,151,679.18 26,785,743.39 1949: Qty 4,827 3,719 8,546 Value 8,647,990.97 7,049,781.52 3,344,692 39 19,042,464.88 1950: Qty Value 2,879 905 3,784 5,108,123.04 1,630,503.69 1,578,063.71 8,316,690.44 1951: Qty Value 1,824 3,235,756.00 * 504 908,208.00 * 998,914 32 * 2,328 5,142,878.32 * 1953: Qty 1,209 276 1,485 Value 2,144,766.00 * 497,352.00 * 662,280.19 * 3,304,398.19 * 1953: Qty 2,250 288 2,538 Value 3,991,500.00 * 518,976.00 * 1,231,841.15 * 5,742,317.15 * Bell Act . . . (Continued from page 167) In Manila, on May 12, President Magsaysay urged approval of bills introduced in the Senate (S. No. 203) and the House (H. No. 2516), amending Commonwealth Act No. 733 (re the Philippine Trade Act of 1946) as follows; “Be it enacted by the Senate and the House of Representatives of the Philip pines in Congress assembled: “Section 1. Section 1 of Commonwealth Act No. 733 is hereby amended to read as follows: ‘"Sec. 1. Acceptance of, and authority to formally execute, the Executive Agreement and its revision.—The Executive Agreement which the President of the Philippines and the President of the United States have agreed to enter into pur suant to Title IV of Public Law 371—79th Congress, approved April 30, 1946, entitled ‘‘An Act to Provide for the Trade Relations between the United States and the Philippines, and Other Purposes", as hereinbefore set forth, is hereby accepted and approved, and the President of the Philippines is authorized to formally exe cute the same on or after July 4, 1946. For the purpose of securing a revision of the foresaid Agreement, without prejudice to its termination should a mutually satisfactory revision not be obtained, and notwithstanding the provisions of Section 2 hereof enacting and continuing in effect as laws of the Philippines during the effectiveness of the said Agreement Sections 311 and 312 of the Philippine Trade Act of 1946, the duty-free treatment provided for in Article 1, paragraph 1, of the Agreement shall apply in lieu of the treatment provided for in Article 1, paragraph 2, sub-paragraph (A) and (B), to the United States articles, entered or withdrawn from warehouse in the Philippines for consumption, during such period after the 3rd day of July, 1954, but not after the 31st day of December, 1955, as the President may declare by proclamation to be a period during which Philippine articles, as defined in sub-paragraph (5) of paragraph 1 of the Protocol, other than those speci fied in items D to G. both inclusive, of the Schedule to Article II, will be admitted into the United States free of customs duty, as such duty is defined in the Agree ment, and during which the application of sub-paragraph (B) of Paragraph 2, Article 2, if it should be applied by the United States, will not substantially impair the national economy, provided that any such proclamation shall be without prejudice to sub-paragraphs (A) and (B) of Paragraph 2, Article 1, being considered as having been in effect for the purpose of applying the provisions of sub-paragraph (C) of Paragraph 2, Article 1, of the Agreement.'” 175 Brief Review of the Government’s Business Policies * By President Ramon Magsaysay I WISH to express my appreciation at having been given this opportunity to offer a brief review of the business policies of my Administration and to trace the steps which we have taken to implement those policies. First of all, let me repeat my assurance that business will get a fair deal under my Administration. No one will be forced out of business through unilateral action on the part of the Government. On the contrary, legitimate business will be given all the protection it deserves and all the encouragement it needs. Some confirmed pessimists have been saying that business conditions have deteriorated and that they will continue to get worse instead of better. These are counsels of fear. Necessarily, the achievement of our goals will take some time. It will mean a lot of hard work and patience. But we have set into motion a number of long-range projects which I am sure will alleviate the temporary difficulties under which business labors today. If there has been a business slow-down, we may attri bute this partly to the great world-wide shift from a war time to a peacetime economy from the consequences of which the Philippines has not been exempt. More significantly, the present business slow-down has been the consequence of our lack of economic planning in the past, a result of our failure to adjust to a program of austerity soon enough and quickly enough. The first thing that my Administration has sought to do, therefore, has been to correct this costly error. *t*o begin with, we have mapped out a new economic development program. This program will involve the expenditure of around P4,000,000,000 within a period of 5 years, or -at the rate of P800,000,000 a year. More than half of this cost will be borne by private enterprise; the rest will be shouldered by the Government. To help the Government defray its share of expenses, a Bill is now pending in Congress which seeks to float P600,000,000 in bonds. We want to make sure, however, that this program will be properly carried out and that the allotted funds will be effectively used. To this end, therefore, we have revitalized the National Economic Council which has been invested with broad powers in the implementation of the national economic program. One important function of the Council is the establish ment of a priority system in the enterprises to be developed and expanded. This system has to be set up due to the fact that our resources are limited, and we must distribute them in such manner that the maximum benefits can be obtained. This means that priority in the allocation of exchange will be given to the more essential business enter prises, and that the distribution of public works, such as the construction of roads, wharves, railroads, and electric plants, will .jibe with and complement the system of prior ities for economic development. I am sure this assurance will make all of you happy, since one of the most persistent complaints of businessmen is the unavoidable delay and confusion in the release of funds and the consequent loss of time in starting industrial operations. The priority system will correct all that. TTAND in hand with this program, we are reorganizing -n our tax-collection machinery. We need money not only for operation of our Government but also to finance our development projects. Tax collection methods in the •Speech read for the President by Executive Secretary Fred Ruiz Castro at the Sixth Annual Awards Dinner of the Business Writers Association on May 4. past have caused the loss of a tremendous amount of revenue which otherwise could have been utilized for the improve ment of existing services to taxpayers, or the creation of new ones. In this connection, I wish to assure you that at present the Government has no intention of raising the present tax rates. On the contrary, the Government means to en courage business by lessening the burden of taxation on those who feel that they cannot operate freely owing to high taxes and high production costs. Additionally, we hope to provide further encourage ment to business enterprises by exempting from the pay ment of taxes all new and necessary industries. To the hard-pressed industries needing financial as sistance from the Government in the form of tax exemptions or direct financial aid, I wish to give assurance that their needs will be studied thoroughly and that help will be extended to them in accordance with the Government’s capacity to meet their needs. We are not going to allow old industries to die because of neglect on our part and thus needlessly throw more people out of work. On the other hand, we cannot allow new industries to languish because of our failure to sense their most urgent needs. qr<His brings me to the subject of controls. The imposition J- of controls has been cited as the principal deterrent not only to the inflow of new capital into local industries but also to the entry of foreign capital here. These controls were never intended to be permanent. They have been instituted as a palliative, as a stop-gap measure designed to check the drain on our foreign-exchange reserves and thus to stabilize our international reserve position. We have to do this not only because we need to put our economy in a stable position but also to make possible the smooth implementation of our development program. I am happy that our businessmen have shared this broad view of controls. Ultimately, controls are designed to protect our newly established industries by restricting the inflow of imports. Prospective foreign investors, on the other hand, fear controls under the impression that they might not be able to remit their profits or transfer their capital. This fear is unfounded. Present regulations permit both the remit tance of profits and capital transfer, subject only to the condition that such will not jeopardize the national economy. I am sure that those foreign investors who are in terested in investing in the long-term future of the country, and who are not concerned merely with making a “quick killing,” will find these conditions sufficiently flexible to permit large-scale business operations. As I said, the imposition of controls is a strictly tem porary measure. They will be lifted just as soon as our international exchange position is made stable. tn our all-out effort to establish a sound economy, I have stressed strongly the rural aspect. This is because of my belief that the barrio is the fundamental starting point in any program which seeks to revitalize the economy and raise the living standards of the people. Better living standards mean an increase in the purchasing power, and an increase in purchasing power will mean better participa tion in the fruits of the land among the rural inhabitants who compose 75% of our population. As long as the bulk of our population remains below the optimum standards of living, there is nd hope that we can create the strong middle class which forms the strongest 176 Philippine Foreign Trade Statistics, 1953, Compared with 1952 Bureau of the Census and Statistics (F. O. B. Value) I, TWENTY Item 1953 1952 Value (Pesos) E Percent distribution Value (Pesos) Disl Percent 'ribution Total Trade. 1,695,908,258 100.00 1,557,036,275 100.00 Imports................. 894,678,748 52.76 852,223,856 54.73 Exports................ 801,229,510 47.24 704,812,419 45.27 Balance of Trade: Unfavorable... 93,449,238 147,411,437 1953 COMPARED PRINCIPAL IMPORTS: WITH 1952 1 1953 1952 Article and Country of Origin Value Value I (Pesos) (Pesos) 1. Cotton and Manufactures................... 119,422,950 106,808,206 United States............................................ Japan........................................................... Hongkong................................................... Great Britain............................................ China........................................................... France......................................................... Pakistan..................................................... Switzerland................................................ Germany.................................................... Belgium...................................................... Other countries....................................... 104,678,246 7,318,344 3,981,980 1,017,138 850,332 629,930 376,594 319,646 70,930 68,540 111,270 97,021,080 2,361,276 2,857,030 734,704 .' 1,983,324 670,762 471,746 33,886 84,386 590,012 2. Mineral Oils (Petroleum products).. 75,133,500 80,176,780 5. Machinery (Except Agricultural and Electrical)............................................ 59,221,632 54,309,902 United States............................................ 50,705,316 41,647,794 Great Britain........................................... 2,366,496 3,196,928 Germany.................................................... 1,718,188 1,607,496 Japan........................................................... 1,361,648 2,569,224 Hongkong.................................................. 724,886 154,968 Sweden....................................................... 595,948 373,038 Hawaii......................................................... 388,400 63,066 Netherlands.............................................. 344,132 39,610 Italy............................................................. 338,122 3,658,582 Canada....................................................... 133,624 87,726 Other countries........................................ 544,872 911,470 6. Rayon and Other Synthetic Tex tiles .................................................... 52,212.102 50,185,018 United States............................................ 50,315,588 49,704,534 Japan........................................................... 1,675,106 115,106 Hongkong.................................................. 71,892 85,886 Switzerland................................................ 58,282 147,384 Great Britain............................................ 28,446 12,306 France................................. .................... 25,354 46,776 Sweden........................................................ 11,824 3,344 Italy............................................................. 6,472 3,480 China........................................................... 6,086 21,238 Spain........................................................... 4,638 6,018 Other countries........................................ 8,414 38,946 7. Grains and Preparations...................... 46,164,462 73,917,028 Indonesia.................................................... Bahrein Island.......................................... Arabia......................................................... United States............................................ Malaya....................................................... Great Britain............................................ India............................................................ Switzerland................................................ Hongkong.................................................. 3. Iron and Steel and Manufactures .. 39,507,096 14,173,444 10,612,224 10,592,690 244,754 2,468 646 96 82 41,083,454 9,639,886 13,234,698 62,082 590 108,780 70,248,936 53,475,234 United States............................................ Canada....................................................... Hongkong.................................................. Germany.................................................... Denmark.................................................... China........................................................... Australia..................................................... Great Britain............................................ Malaya....................................................... Netherlands.............................................. Other countries........................................ 22,36.1,682 21,738,374 536,516 486,876 397,652 237,444 161,616 137,944 59,848 25,284 21,226 24,024,402 26,027,468 291,944 172,254 466,200 270,760 214,034 122,854 9,936 22,317,176 United States............................................ Japan........................................................... Belgium...................................................... Germany.................................................... Great Britain............................................ France......................................................... Netherlands.............................................. Hongkong.................................................. Luxemburg.............................................. Sweden. ................................................... Other countries........................................ 33,754,500 24,163,472 3,963,266 2,129,390 1,810,932 1,424,928 989,532 673,862 497,578 245,814 595J662 22,140,428 20,167,846 4,070,248 2,477,192 1,919,700 695,578 767,500 232,792 118,552 238,584 885,398 8. Dairy Products........................................... 45,736,126 35,067,502 4. Automobiles, Parts of, and Tires 63,130,162 57,705,544 United States............................................ Netherlands.............................................. Australia..................................................... Switzerland................................................ New Zealand............................................ Denmark.................................................... Canada....................................................... Sweden....................................................... China........................................................... Great Britain............................................ Other countries........................................ 37,724,782 4,696,506 1,679,346 839,942 463,658 122,372 91,826 40,852 33,104 24,784 18,954 29,786,570 1,796,124 2,018,028 984,330 132,910 93,820 149,512 20,654 28,280 27,004 30,270 United States............................................ Great Britain............................................ Japan........................................................... France......................................................... Spain........................................................... Germany.................................................... Hawaii........................................................ Guam.......................................................... Hongkong.................................................. Denmark.................................................... Other countries........................................ 62,611,856 260,434 85,990 72,254 26,510 19,158 18,262 6,832 6,700 6,190 15,976 56,644,622 172,656 132,526 487,722 16,580 23,944 3,300 4,216 219,978 9. Paper and Manufactures...................... United States............................................ Canada....................................................... Japan........................................................... Finland....................................................... Sweden....................................................... Spain................................. ‘........................ Germany.................................................... Norway....................................................... 36,875,962 39,270,020 32,770,496 1,164,514 453,942 442,238 276,300 229,772 226,850 219,600 35,231,334 1,517,828 405,628 616,692 324,140 119,488 10,120 bulwark of every democratic state. And such a middle class ultimately constitutes the firmest support for business in a free enterprise system. t have no wish to be over-confident, nor do I wish to minimize the known hazards that lie along our course. But I believe that the long-term prospect which face us is a happy one. To achieve our goals, however, will involve all our energy and patience, all our capacity for sustained applica tion, and all the faith and goodwill that we can summon. The task in our time, as I see it, is to lay the foundations of our future on as secure and solid a basis as we can make it. I trust that we have begun to do so. I thank you. Netherlands.............................................. 206,586 23,204 Hongkong................................................... 201,226 162,008 Other countries........................................ 684,438 859,578 10. Chemicals, Drugs, Dyes, and Me dicines .................................................. 36,866,702 29,683,866 United States............................................ 32,661,252 27,113,064 Great Britain............................................ 1,117,500 256,082 Switzerland................................................ 885,614 614,430 Germany..................................................... 493,854 167,258 Italy............................................................. 356,098 86,926 France......................................................... 328,678 232,810 Japan........................................................... 246,440 233,440 Netherlands............................................... 218,720 71,106 Canada....................................................... 137,590 315,608 Belgium....................................................... 105,004 44,268 Other countries........................................ 315,952 548,874 11. Electrical Machinery and Apparatus 30,343,788 26,100,402 United States............................................ 28,764,822 24,922,690 Japan........................................................... 351,822 274,-980 Netherlands.............................................. 321,338 244,484 Germany..................................................... 282,670 116,228 Great Britain............................................ 164,126 241,220 Hongkong................................................... 120,652 59,226 Sweden........................................................ 81,552 14,814 China........................................................... 80,654 78,744 Italy............................................................. 36,366 22,364 Canada....................................................... 33,988 88,620 Other countries................ 105,798 37,032 12. Tobacco and Manufactures............. 27,655,248 33,166,464 United States............................................ 27,524,156 33,035,010 Hongkong................................................... 128,916 130,226 China........................................................... 2,016 30 Great Britain............................................ 128 1,012 Japan........................................................... 24 40 Guam.......................................................... 4 — Malaya....................................................... 4 8 Other countries........................................ — 138 13. Fish and Fish Products..................... 19,909,194 15,706,704 United States............................................ 16,243,286 14,226,652 British Africa............................................ 1,295,608 14,076 Netherlands.............................................. 1,025,280 442,524 Portugal..................................................... 319,266 190,622 Hongkong................................................... 287,298 240,278 China........................................................... 277,356 175,946 Japan........................................................... 231,774 217,466 Canada....................................................... 60,462 137,780 Mexico........................................................ 49,564 11,834 Germany.................................................... 34,676 — Other countries........................................ 84,624 49,526 14. Fertilisers and Fertilizing Materials 19,224,974 26,621,942 16. Vehicles, other than Automobiles .. 16,360,294 13,473,146 United States............................................ 13,831,786 10,568,480 Belgium....................................................... 615,024 242,778 Japan........................................................... 515,140 1,855,390 Malaya........................................................ 510,884 336 Germany..................................................... 510,128 216,000 Great Britain............................................ 261,236 191,952 Netherlands.............................................. 37,134 154,712 Hongkcng................................................... 30,556 46,338 Denmark.................................................... 19,214 — Indonesia.............................................. 11,594 15,750 Other countries........................................ 17,598 181,410 17. Non-Ferrous Metals, Except Pre cious....................................................... 14,218,206 13,737,520 United States............................................ 10,700,226 9,715,692 Germany..................................................... 1,023,804 832,944 Japan........................................................... 734,078 1,422,814 Malaya....................................................... 339,986 197,714 Hongkong.................................................. 299,934 98,770 Canada....................................................... 287,742 408,598 Switzerland................................................ 198,252 93,288 China........................................................... 149,534 60,782 Great Britain............................................ 128,746 276,260 France......................................................... 64,850 58,314 Other countries........................................ 291,054 572,344 18. Leather and Manufactures......... 10,301,644 8,453,726 United States............................................ 9,352,646 7,879,604 India............................................................ 635,368 322,860 Australia..................................................... 245,626 171,558 Japan........................................................... 17,070 7,642 Spain........................................................... 13,428 7,516 Great Britain............................................ 12,642 39,076 Germany..................................................... 10,518 390 Hongkong................................................... 9,324 6,988 Malaya....................................................... 1,902 76 China........................................................... 926 4,598 Other countries........................................ 2,194 13,418 19. Cocoa, Coffee, and Tea....................... 8,773,000 6,331,452 United States............................................ 2,934,570 2,411,064 Ceylon......................................................... 1,481,626 1,496,470 Great Britain............................................ 1,387,160 696,372 Brazil........................................................... 829,770 472,426 Ecuador...................................................... 662,684 217,208 Hongkong................................................... 419,250 208,702 China........................................................... 285,838 415,840 Colombia.................................................... 261,086 59,120 Hawaii......................................................... 162,732 100,812 Argentina................................................... 86,266 — Other countries........................................ 262,018 253,438 20. Jute and Other Fibers........................ 8,507,856 13,349,464 United States............................................ 9,670,832 18,404,192 Netherlands............................................... 3,816,328 2,060,170 Germany.................................................... 2,064,544 1,307,274 Belgium....,.............................................. 1,178,440 357,634 Japan........................................................... 1,020,306 1,995,738 Canada.............................................................. 714,814 2,391,652 France................................................................ 383,796 61,744 Great Britain.................................................. 201,758 — Italy................................................................... 174,146 — Hongkong.................................................. 10 282 Other countries................................................. — 43,256 15. Miscellaneous Metal Manufactures 18,693,374 15,510,332 United States............................................ 17,771,396 14,121,648 Bahrein Island.......................................... 218,420 —* Germany.................................................... 184,328 146,204 Japan........................................................... 171,380 159,516 Canada....................................................... 87,816 53,578 China........................................................... 73,960 26,542 Hongkong.................................................. 67,270 49,828 Sweden....................................................... 51,826 67,394 Italy............................................................ 24,114 35,814 Netherlands.............................................. 12,536 — Other countries........................................ 30,528 849,808 India........................................................... 3,525,238 4,226,358 Pakistan..................................................... 1,841,992 1,186,554 Spain........................................................... 1,441,642 2,059,614 Japan........................................................... 949,550 1,233,906 United States............................................ 528,568 851,868 Malaya....................................................... 88,018 16,004 El Salvador............................................... 44,418 — Italy............................................................ 24,972 3,540,228 Canada....................................................... 21,478 24 Hongkong.................................................. 20,962 294 Other countries................. 21,018 234,614 Other Imports....................................... 115,678,636 99,173,604 Total Imports............................... 894,678,748 852,223,856 II, TWENTY PRINCIPAL EXPORTS; 1953 COMPARED WITH 1952 1953 1952 Article and Country Unit Value Value of destination Quantity (Pesos) Quantity (Pesos) 1. Copra..........kilo 599,686,187 232,440,418 660,115,548 178,441,530 included in British Bait Indie * in 1952. United States... 314,465,737 124,401,313 300,091,007 80,386,877 178 Netherlands.... 73,578,541 28,391,817 48,310,801 13,105,279 Denmark............. 35,822,962 13,551,843 25,244,400 6,531,932 Venezuela........... 30,374,434 11,603,283 16,086,520 4,115,313 Switzerland........ 27,649,424 10,788,193 64,261,570 17,890,807 Belgium............... 26,303,042 9,751,356 43,515,474 11,752,927 Colombia............ 22,369,748 8,486,898 28,942,542 7,525,208 Germany............. 19,112,157 6,851,340 9,357,360 2,628,814 Israel.................... 11,805,920 4,335,082 23,624,000 6,320,479 Norway................ 10,718,800 3,979,535 10,693,400 2,907,846 Other countries.. 27,485,422 10,299,758 89,988,474 25,276,048 2. Sugar...........kilo 785,826,780 193,781,671 856,199,824 187,751,939 United States... 784,961,087 193,563,734 844,472,250 184,269,562 Japan................... 838,000 206,740 11,696,680 3,461,469 Guam................... 21,224 9,485 — — Hawaii................. 6,377 1,680 3,339 998 Israel.................... 92 32 200 80 Egypt................... — — 27,272 19,800 France.................. — — 60 20 Great Britain .. . — — 23 10 3. Abaca Fibers, Unmanufac tured...bale 848,449 75,304,242 847,371 79,769,676 United States. .. 283,412 29,440,956 365,100 37,589,961 Japan.................... 240,313 19,279,888 196,555 16,740,513 Great Britain .. . 106,679 8,937,097 98,124 9,356,842 Germany............. 35,414 2,982,255 25,139 2,171,743 France.................. 37,608 2,612,319 34,269 2,609,997 Netherlands.... 31,274 2,384,550 18,515 1,493,977 Belgium............... 25,626 2,054,993 24,278 2,110,745 Norway................ 16,265 1,598,808 11,432 1,144,028 Denmark............. 14,699 1,203,835 14,296 1,315,480 Canada................ 8,875 911,231 6,800 720,476 Other countries.. 48,284 3,898,310 52,863 4,515,914 4. Base Metals and Concen trates...kilo 1,894,379,511 69,992,316 1,803,660,369 41,768,193 United States. .. 646,123,756 46,156,987 555,591,647 18,718„017 Japan............... 1,242,859,315 23,661,902 1 ,247,743,922 23,020,908 Canada................ 5,080,000 150,000 — — . Spain.................... 218,440 16,057 324,800 29,268 Taiwan......... 98,000 7,370 — — 5. Logs, Lumber and Timber.. bd.ft. 589,583,366 62,581,005 300,870,411 35,051,938 United States... 104,329,688 15,801,110 66,694,295 12,442,039 Japan................... 452,522,801 42,207,067 204,455,021 17,051,023 British Africa... 4,959,463 1,375,028 7,034,733 1,909,386 Taiwan................ 12,029,488 1,162,248 6,588,497 554,221 Hongkong........... 7,562,756 627,376 6,879,328 705,815 Korea................... 4,602,408 415,483 — — Hawaii................. 1,568,393 399,539 4,327,912 1,165,348 Netherlands.... 333,294 147,498 187,271 126,628 Ireland................. 496,566 113,046 206,094 43,039 Belgium............... 295,412 100,004 215,523 73,176 Other countries.. 883,097 232,606 4,281,737 981,263 6. Coconut Oil..............kilo 61,034,297 35,287,323 84,855,307 33,430,534 United States. .. 59,538,421 34,472,350 53,699,479 19,997,224 Switzerland........ 478,240 291,073 6,838,451 2,853,363 British Africa. .. 513,577 262,553 5,210,209 2,049,110 Colombia............ 493,286 252,076 1,656,760 832,694 Guajn................... 9,653 8,496 9,827 7,699 Hongkong .•......... 960 640 — — Thailand............. 160 135 — — Italy..................... — — 5,428,038 2,393,910 Belgium............... — — 4,320,083 1,825,335 Netherlands.... — — 3,987,712 1,661,022 Other countries.. — — 3,704,748 1,810,177 7. Desiccated Coconut, .kilo 49,543,285 31,461,831 38,467,151 19,091,765 United States... 49,318,657 31,315,955 38,016,644 18,866,367 Canada................ 170,723 108,660 421,513 210,427 Hawaii................. 38,011 26,240 28,421 14,419 Hongkong........... 9,545 5,586 — — Japan................... 6,349 5,390 370 339 Guam................... — — 203 213 8. Pineapple, Canned.. .kilo 81,271,868 24,386,731 80,538,041 23,539,190 United States... 81,268,118 24,385,531 80,526,866 23,532,748 Hongkong........... 3,750 1,200 11,175 6,442 9. Embroideries, Cotton, Silk, and Linen........ 18,496,123 14,317,938 United States... 18,495,428 14,305,959 Japan................... 689 3,633 Hawaii................. 6 16 Guam................... — 8,330 10. Tobacco and Manufactures . 9,539,199 9,468,983 Spain.................... 5,273,411 6,210,728 United States.. . 1,528,273 1,618,093 Belgium............... 717,025 340,522 Indo-China......... 662,677 — Netherlands.... 647,840 26,922 Hongkong........... 174,521 207,121 French Africa... 147,008 53,507 Hawaii................. 140,287 108,461 Morocco.............. 95,050 102,128 Japan................... 67,798 11,991 Other countries.. 85(309 789,510 11. Copra Meal or Cake.............kilo 69,023,229 8,457,183 76,700,436 10,926,534 United States. .. 60,119,043 7,426,595 73,472,041 10,478,176 Hawaii................. 2,869,225 378,514 2,212,395 320,358 Belgium............... 3,356,559 366,839 — — Denmark............. 1,526,256 156,850 1,016,000 128,000 Germany............. 1,117,600 124,600 — — Hongkong........... 34,546 3,785 — — 12. Gold and Con centrates. .kilo 116,020 4,832,715 1,741,360 8,950,093 United States. .. 38,841 2,543,179 1,691,657 5,313,397 Great Britain ... 77,179 2,289,536 49,703 3,636,696 13. Molasses... kilo 175,386,368 4,774,359 195,562,976 11,231,694 Japan................... 103,982,520 2,890,677 :112,977,810 7,021,716 Korea.......... 41,563,098 1,252,970 24,172,404 1,088,197 Great Britain ... 18,269,736 347,125 27,739,848 1,687,784 United States... 7,151,014 149,787 6,509,106 360,062 Hongkong........... 4,420,000 133,800 12,723,808 387,535 Thailand............. — — 11,440,000 686,400 14. Rope.............kilo 3,961,003 3,579,976 4,675,657 4,780,708 United States. .. 1,322,846 1,265,911 1,732,116 1,783,493 Malaya................ 1,138,604 890,575 1,142,516 1,082,322 Indonesia............. 544,874 579,312 822,191 956,878 Thailand............. 154,284 148,485 162,143 164,274 Porto Rico.......... 154,928 117,798 267,454 219,473 Venezuela........... 120,223 93,756 — — Japan................... 76,075 82,377 24,973 28,163 Hongkong........... 69,117 71,890 45,679 51,725 Peru...................... 65,192 58,561 142,595 139,155 Ceylon................. 43,229 37,591 16,554 18,148 Other countries.. 271,631 233,720 319,436 337,077 15. Chemicals......... 3,202,855 2,048,904 United States... 3,167,038 1,760,522 Thailand............. 35,117 54,409 Guam................... 700 150 Belgium............... — 137,751 Malaya................ 96,132 16. Cotton And Manufactures Ex cept Embroi deries .................. 1,569,667 3,042,011 United States... 3,024,422 1,530,470 Guam................... 14,901 20,598 2,282 96 Hawaii................. 188 348 Israel.................... 137 — Malaya................ 81 — Hongkong........... — 15,981 Great Britain... — 1,760 Taiwan................ — 300 Other countries.. — 114 179 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources APRIL 2 — President Ramon Magsaysay visits Tagkawayan, Quezon province, to look into the distribution of some 8,000 hectares of deforested land available to homesteaders there of which some 5,000 hectares are already occupied, and states he will send student surveyors of the Mapua Institute of Technology to assist in the subdivision of the area into parcels of from 6 to 8 hectares. April 3 — The President inspects and inaugurates the 2,000hectare Corpus national settlement project at barrio San Ramon, Uson, Masbate, where the 52 prisoners he released from jail some months ago are now settled; the men had been convicted of illegal cultivation in a reserved forest area. April 4 — The President lays the corner-stone of the National Press Club Building to be erected near the Jones Bridge on a 4,000 square-meter plot of land donated to the Club by the Quirino Adminis tration; he pledges his own support and states he expects the press to “continue doing its duty,—to report the facts, honestly, fearlessly, and accurately, never sparing evil and ever encouraging what is good and just.” April 5 — The fact-finding committee, headed by Atty. Ambrosio Dollete, which investigated the People’s Homesite and Housing Cor poration, reports to the President and recommends that a number of its officials be required to resign and that another be suspended and pro secuted for bribery; General Manager Vicente Fragante was already suspended on recommendation of the committee. April 6 — The President issues an executive order prohibiting the use of trawlers in San Miguel Bay in order to protect the municipal fisheries of the Camarines provinces and the livelihood of the people. The President issues an order that all government public work projects be pushed forward on a 3-shift, 24 hours-a-day basis. The President issues a proclamation establishing “daylight-saving time” for the Philippines from 12 o’clock midnight, April 11, to 12 o’clock midnight, June 30, “in order that officers, employees, and la borers of the Government may be afforded sunlight for work and re creation purposes after office hours, and to effect savings in the use of light both to the Government and the general public.” (Clocks are to be set ahead one hour.) The President delivers the commencement address at the Univer sity of the Philippines; he states that the University is the Government’s "crowning effort in the task of national education, in the function of molding the nation’s youth into sound, useful citizens.” Acting Director of Private Schools Daniel M. Salcedo recommends to Secretary of Education Pastor Endencia the closing of 12 private schools, most of them in the provinces, for failure to maintain the re quired standards, in line with the President’s instructions to take the necessary measures against “diploma mills.” April 7 — Malacanang announces that Col. Leoncio Tan has been reassigned to the Armed Forces and that Major Jose Lucban had been designated to replace him as Director of the National Bureau of In vestigation; Major Lucban has been serving as the legal counsel of the N.B.I. The President holds a breakfast conference with Vice-President Carlos P. Garcia, concurrently Secretary of Foreign Affairs, on the Japan reparations and other questions. The Inter-Departmental Committee on Land Tenure submits its second progress report to the President, and also recommendations that the lending policies of the Philippine National Bank and the Reha bilitation Finance Corporation be revised so as to effect a more equit able distribution of credit facilities to farmers; that P10,000,000 be appropriated to increase the capitalization of the Agricultural Credit and Cooperative Financing Administration; that the par value of shares in the capital stock of rural banks be reduced from P100 to P10 17. Shells and Ma nufactures .... 2,431,024 2,602,117 20. Scrap Metals... kilo 8,934,456 1,695,600 10,625,603 1,373,266 United States. . . 2,338,194 Germany....1... 46,747 Japan................... 44,168 Sweden................ 866 Mexico................. 851 Hawaii................. 190 Guam................... 8 Canada................ — Hongkong........... — 18. Beverages, Wines and Liquors... 2,162,395 2,555,780 41,030 400 225 4,200 482 766,036 United States. . . 1,874,456 945,666 1,073,403 674,389 Japan.................... 7,060,000 749,934 9,552,200 698,877 Other Exports (including Re exports)......... 11,980,573 35,776,899 Total Exports.. 801,229,510 704,812,419 III, FOREIGN TRADE, BY NATIONALITY OF TRADER: 1953 Korea................... 880,449 United States.. . 517,875 Guam................... 475,687 Japan.................... 180,000 Hawaii................. 90,900 British Borneo .. 5,580 Taiwan............ 7,325 Spain.................... 3,800 Thailand............. 529 Great Britain... 140 Other countries.. 110 19. Rattan and Manufactures. 1,799,960 6,750 238,087 233,743 194,750 77,708 150 14,848 1,527,436 Nationality Total......... Total Domestic Total Trade Imports Exports Exports Re-Exports 1,695,908,258 894,678,748 801,229,510 797,265,592 3,963,918 United Sta'tes.. . 1,402,420 Hawaii................. 114,128 Guam................... 57,711 Venezuela........... 47,267 Panama, Canal Zone................. 35,458 Other United States Insular Possessions . .. 34,253 Porto Rico......... 27,430 Panama, Republic of...................... 24,469 Canada................ 13,450 Dominican Rep ublic................. 8,979 • Other countries . 34,395 866,323 314,332 129,088 18,002 43,899 203 49,220 54,598 6,160 45,611 American............ Filipino............... Chinese............... British................. Spanish............... Indian (Hindu) . German............... Thai (Siamese).. Indo-Chinese.... ?taUa“.7. Australian.......... Japanese............. Indonesian......... French................. Dutch.................. Hungarian.......... Norwegian.......... Austrian.............. Ecuadorian......... Yugoslavian.... Irish (Free)........ Panaman............ Greek.................. Polish.................. Portuguese......... British Malayan. Mexican.............. Colombian.......... All other countries 4,729 149,983 20,900 35,575 51,362 50,274 51,362 3,216 5,373 400 716 400 2,139 35,575 50,274 6,930 2,500 5,373 900 180 to encourage farmers to invest in them; that the urgency of a bill au thorizing loans from postal savings banks to farmers be certified to Congress. The ACCFA was created with a supposed revolving capital of P100,000,000, but none of this amount has as yet been appropriated. Secretary of Finance Jaime Hernandez reports to the Cabinet that the P2,000,000 requested by the ACCFA for the purchase of rice-seed for Cotabato farmers and other forms of relief will soon be made avail able. Secretary of Agriculture and Natural Resources Salvador Araneta reports that some 400,000 rats are now being killed weekly in Cotabato mostly with the rat-poison “Pival”; another poison, “1080” is to be tried soon. April 8 — Announced that the President has requested Ambassador Carlos P. Romulo to send him a detailed report on the United States proposals for a Pacific Treaty Organization (PATO) and on the pro posed warning to Communist China. The President states he has al ready received, through the Department of Foreign Affairs, a com munication regarding Secretary of State John Foster Dulles’ invitation for a 6-nation warning against Chinese Communist intervention in Indo-China, but that a more detailed report is necessary. At the same time the President sets a conference for Sunday night (April 11) at Baguio with leaders of both houses of Congress, including chairmen and members of the foreign affairs and national defense committees. In the presence of some 200 college students who call on him prior to their departure for Mindanao, having volunteered to assist in the anti-rat campaign, the President signs an executive order creating the “Consultative Council of Students” and inducts the Chairman and 16 members into office; the Chairman is Rafael Salas, Malacanang tech nical assistant on youth and student affairs. The President states that the volunteering for this service is “concrete and tangible proof of the new vision that our youth of today possesses.” The newspapers report that Speaker Jose B. Laurel, Jr., last night asked Rep. R. M. Durano, Chairman of the House Committee on Com merce and Industry, to temporarily desist from reporting out any of various “nationalization” bills becausb of the adverse reaction aroused; the Committee has been holding hearings cn measures to nationalize the retail trade, the lumber, abaca, rice, coconut, copra, fishing and drug industries, and banking; a labor nationalization bill, already passed in the House, is now awaiting action in the Senate. April 9 — The President leads the nation in commemorating the 12th anniversary of the fall of Bataan in ceremonies at the Mount Samat Cemetery; more than a thousand survivors of the defenders of Bataan and Corregidor and their families arrived at Mount Samat on buses and some came across the Bay on LSTs. April 10 — The President issues Administrative Order No. 20 co ordinating the rat-extermination activities of all governmental agencies in Cotabato under the supervision of a task force of the Armed Forces in that province’; he also issues Executive Order No. 23 providing an award of Pl00,000 for the best method of eradicating rats by means of micro-organisms not dangerous to human beings. Later the President personally checks on the loading of supplies and equipment for the anti-jrat campaign in Mindanao at Pier 5, Manila. The President in a conference with Secretary of Labor Elueterio Adevoso expresses a desire to have the "Blue Sunday” labor law amended and instructs him to observe its working in outlying areas where the people do their marketing on Sundays. The special committee investigating anomalies in the People’s Homesite and Housing Corporation recommends modification or can cellation of the Corporation’s contract with Miguel Morelos & Sons involving the sale of some 14 hectares of land in Quezon City; it also recommends an inquiry into the advance payments for supplies bought from the Alto Pipe and Foundry, Inc. and from the Amon Trading Company. Announced at Malacanang in the evening that the President’s conference with congressional leaders in Baguio had been postponed in order to give the participants more time to study recent developments. The President points out— “that the nation's security requires, and that the policy of his Administration has declared, Philippine commitment to the principle of associating itself with the other free nations of the world in resisting communist aggression in Southeast Asia. The President expressed the readiness of the Philippines to discuss with other nations, in accordance with this principle, how best to present a unified front against further communist aggression, subject to agreement on details among all participants. Special significance is attached to the conflict in Indo-China because the area is considered the key to the defense of Southeast Asia and because of its proximity to the Philippines. The fact that the fighting now in progress is within several hours’ flying time to Manila, and that the communist forces are using powerful and modern military equipment, it was pointed out, makes it a matter of grave and immediate concern to Philippine defense officials." April 11 — The President confers with the general staff of the Armed Forces at Camp Murphy. "The President was given a fill-in on the progress of the Indo-China conflict, how it has grown into its present crisis and its inevitable effects on the whole of Southeast Asian countries including the Philippines, India, Indonesia, Burma, Thailand, and Malaya. The briefing session brought out that the precariousness of the situation would necessarily demand strengthening of the Philippines' defenses. The President pointed out that the pattern of action in Indo-China—a communistled and inspired rebellion in the guise of a so-called national liberation movement to mislead the unwary—was the seme pattern being pursued in the Philippines by the Huks. It was noted during the briefing that Communist China was carrying out its responsibility under the Sino-Soviet Pact of fomenting unrest in Southeast Asia. Observation was made to the effect that the Philippines has adhered to the principle of eradicating colonialism in Asia. It was pointed out, however, that the military action has caught up with the pace of developments in some Southeast Asian countries, thus requiring decisive measures on the part of the Philippines for the maintenance of the country’s security. . .” Despite the announcement yesterday that the conference would be postponed, the President in the late afternoon confers with adminis tration and congressional leaders he found in Baguio, though Senator Claro M. Recto is not present, on the matter of joining in a warning to Communist China as proposed by Secretary of State Dulles. April 12 — Malacanang issues the following statement: “To clarify and define discussions arising from the situation in Indo-China as it affects the Philippines, President Magsaysay has authorized issuance of the following official position as of this date: "(1) In a statement issued April 10, 1954, the President declared that his Ad ministration, being committed to the principle of collective security, was prepared to accept in principle the association of this Government with the Governments of other free nations in a common declaration opposing further Communist aggression in Southeast Asia, such association being subject to mutual agreement on details. “This statement has not been modified. However, talk of expanding the Armed Forces of the Philippines, or of committing any of its elements to the Indo-China theater, is without foundation. “(A) The Philippine Government has no official information at this time that the United States seeks to organize a Pacific treaty organization similar to the NATO. This has only been speculated upon by press dispatches from Washington, and discussion of Philippine participation in such a pact has been, therefore, wholly theoretical and conjectural.” Shocked by the brutal murder in Cavite of Mrs. Damiana Ongkiko, kidnapped for ransom some 37 days ago, the President directs Maj. Gen. Jesus Vargas to dispatch the 7th Batallion Combat Team to the province and also directs Secretary of Justice Pedro Tuason to send his best investigators there to work with the fiscals and the Constabulary. April 17 — The President appoints Under-Secretary of Foreign Affairs Leon Ma. Guerrero, Acting Secretary during the absence of Vice-President Garcia who leaves today for Geneva as head of a Philippine delegation to the conference to be held there on Korea and Indo-China. The President nominates Felino Neri, former Under-Secretary of Foreign Affairs, as envoy extraordinary and minister plenipotentiary at large to join Vice-President Garcia in Geneva; the appointment of Hilarion Corpus as a member of the delegation was withdrawn a few days ago. The President names as members of a Philippine panel to meet with the Japanese negotiators on the matter of reparations, Senator JoseP. Laurel, chairman; Acting Secretary of Foreign Affairs Guerrero, vice-chairman; Senators Francisco Delgado, Lorenzo Sumulong, Lo renzo Tafiada, and Quintin Paredes; Representatives Daniel Z. Romualdez, Godofredo Ramos, Carlos Hildado, and Diosdado Macapagal; National Economic Council Chairman Filemon Rodriguez, Dean Vi cente Sinco, Daniel Aguinaldo, and P. E. Domingo. The President announces that a sub-committee group from the Armed Forces is at work preparing the ground for talks between Phil ippine and American representatives on the implementation of the Philippine-American Mutual Defense Pact; the top-level Philippine committee, still to be organized, will include members of the Senate and the House. Formal reparation negotiations begin at Malacanang between the Philippines and Japan,—Vice-President Garcia delivering the opening speech; the Japanese delegation is headed by Ambassador Shozo Murata and Minister Katsumi Ohno; the former was Ambassador to the Philip pines during the Japanese occupation. April 18 — The President releases the following statement: “The Philippine Government agrees in principle with the United States' pro posal to issue a joint declaration against Communist aggression in Indo-China. Our first concern is, as it has always been, our national security. This concern today has become more grave with the deepening crisis in Indo-China. In the interest of our national security, it is our duty to strengthen ourselves in every way. But in the face of the Communist peril in Asia, it has also become our great duty to mul tiply our strength through joint action with our allies in the free world. It is partic ularly important to maintain our alliance with the United States, which is today the principal bulwark of the free world against Communist aggression and tyranny. In the Indo-China crisis, however, there is an element which is of great concern to the Philippines as an Asian country. This is the political element of independence of the peoples of Indo-China. I believe that the proposed declaration should contain an affirmation of the rights of all peoples to freedom and independence. Thus it would not only be a warning against further Communist aggression in Asia, but an assurance that the contemplated united action is aimed at the defense of the in dependence of the Indo-Chinese peoples against Communist imperialism or any other threat. The joint declaration, to have maximum effectiveness, should ap proach as closely as possible the guarantees of the Atlantic Charter. It should be the Asian equivalent of that historic document. I have instructed our delegation to Geneva to support any move toward establishing a NATO-type alliance provided the following conditions are met: first, that the right of Asian peoples to selfdetermination is respected; and second, that the Philippines be given a plain and unequivocal guarantee of United States help in case of attack under our Mutual Defense Pact.” April 19 — The President Orders the placing of all municipal police forces in Cavite province under Philippine Constabulary control. April 20 — The President and Congress leaders in conference agree to authorize the Rehabilitation Finance Corporation to buy the rights of the British bond-holders in the Manila Railroad Company, worth ?42,000,000, for ?26,000,000, the difference representing accumulated interest over some 37 years which the bond-holders have offered to waive; the bonds are a part of a ?53,000,000 issue of the Philippine Government when it acquired the Railroad Company from its British owners in 1917, the Government paying P8,000,000 in cash; negotia tions for the sale just authorized were conducted by the President through Central Bank Governor Miguel Cuademo and Minister Jose Romero in London. The President completes the membership of the National Economic Council with the appointment of the following as .acting members: Secretary of Finance Jaime Hernandez, Secretary of Commerce Oscar Ledesma, Secretary of Agriculture Salvador Araneta, Acting Secretary of Public Works Vicente Orosa, Acting Secretary of Labor Eleuterio 181 Adevoso, Budget Commissioner Dominador Aytona, Economic Coor dination Administrator Sotero Cabahug, Under-Secretary of Foreign Affairs Leon Ma. Guerrero, Andres Hizon, and Alfonso Calalang; Filemon C. Rodriguez was previously appointed Chairman and Central Bank Governor Cuaderno a member. April 21 — The newspapers report a decision, at a Senate Coalition meeting yesterday, to reject the Garcia-Ohno agreement on the amount and manner of payment of reparations as “inadequate”; one Senator denounced it as a “flagrant attempt to foci the Philippines” into ac cepting Japanese technical aid instead of reparation payments; the attack was led by Senators Claro M. Recto and Lorenzo Ta,nada; a defense of the agreement by Acting Secretary of Foreign Affairs Guerrero was unsuccessful. The agreement, signed by Vice-President and Secretary of Foreign Affairs Garcia on April 15, before he left for Geneva, is published. It declares, in part: “1. The amount Japan shall expend for the furnishing of the services of the Japanese people in production processing, salvage of sunken vessels, and other work as reparations to the Philippines shall be $400,000,000. 2. The above-mentioned services shall be finished in a period of 10 consecutive years, extending for another 10 years, depending upon the circumstances then prevailing, upon the request of either of the contracting parties. 3. The services mentioned in the above paragraphs shall be furnished for such purposes as conform to the economic and other projects of the Philippine Government and in such manner as to achieve maximum benefits for the Philippines. The projects shall be chiefly those exemplified in the attached list. However, as regards their specific details and breakdowns, both Governments shall immediately enter into consultations in order to reach an agreement. 4. The economic value which will accrue to the Philippines through the services furnished by Japan in the above-mentioned manner, shall be estimated by a joint JapanPhilippine reparations commission, and the total estimated economic value of the reparations shall not be less than $1,000,000,000. 5. There shall be prompt ratifica tion of the San Francisco. Peace Treaty of 1951 by the Philippines upon the conclusion of an overall reparations agreement. Attached list of proposed projects: (1) Salvage of sunken vessels, (2) Development of foreign resources, (3) Expansion of rice in dustry through establishment of irrigation system, scientific culture, and other agricultural installations, (4) Increased provision of artesian. wells, (5) Repair and construction of barrio roads, (6) Development of iron mines, copper mines, etc., (7) Increased installation of hydro-electric and thermal power-generating plants, (8) Improvements in the facilities of Manila harbor and Manila air terminal, (9) Double-tracking of railroad lines and improvement of trolley and bus-transporta tion system, (10) Medical services and construction of hospitals, (11) Renovation of churches and other religious establishments, (12) Renovation and construction of schools and other educational establishments.” April 21 — The President summons Japanese reparations Am bassador Murata to Malacanang to ask clarification of the Japanese offer of “services” and is informed by the latterthat this includes capital goods such as steam turbines, diesel engines, irrigation pumps and pipes, etc. The President states that he had not been furnished with a copy of the proposal but that he had been informed by Vice-President Garcia that capital goods were included among the forms of reparation expected from Japan. The President is quoted as saying: “That is the 'reason I approved Garcia’s preliminary and explanatory ar rangements in principle as a starting point for negotiations, as a basis for discus sion. But this morning I read that you would pay only in services, and if this term means only technical help and labor, we will not be able to agree.” Murata "took pains to emphasize that the Japanese would not send laborers to the Philippines to work on reparations projects... Toward the close of the conversation, the President asked Murata and Urabe to see Acting Foreign Secretary Leon Ma. Guerrero immediately and set down ‘in writing’ their clarification of the reparations proposal. The pair left to see Guerrero immediately.” The President receives Dudley Colton, general manager and vicepresident of Johns Manville, Inc., who tells him of the Company’s desire to set up an asbestos water-pipe factory; the President encourages him to go ahead stating that the “Government welcomes any foreign capital interested in manufacturing materials that will be of help to the country.” The President suspends Primo Villar, Chief of the Motor Vehicles Office, pending investigation of serious administrative charges against him. Ramon Diokno, former Nacionalista senator, appointed associate justice of the Supreme Court only two months ago, dies of a heart attack in Baguio, aged 68. The President issues a statement mourning his death and offers the family an army plane to bring the remains to Manila. April 22 — The President being informed by Acting Collector of Customs Jaime Velasquez that there is pending in the United States Congress legislation authorizing the sale of 8 United States vessels to two Philippine firms, the Compania Maritime and the Philippine Steam Navigation Company, approves the suggestion that Congress should be requested to authorize other Philippine ship operators to participate in a public auction of the vessels. The President at a Cabinet meeting instructs Acting Secretary of Public Works Orosa to push the construction of pump irrigation plants. The President approves the construction of a P3,000,000 4-story building to house the Government Service Insurance System on a lot on the comer of Arroceros and Concepcion streets, Manila. The President receives a delegation of recently discharged personnel of the Philippine Air Lines who inform him they are forming a corpora tion for the purpose of acquiring 1,024 hectares of agricultural land near Lake Nauhan, Oriental Mindoro, and he encouraging the plan stating the Government will give them all aid in their settling there. The President also receives a delegation from the Marikina Shoe Producers Association, Inc., who ask that he take steps to end the acute shortage of leather which threatens the doom of the shoe industry; the President asks Secretary of Finance Hernandez to see about in creasing the dollar allocation for shoe-making materials. After consultation with leaders of Congress, the President an nounces the composition of a panel to represent the Philippine Govern ment in the reparation talks with Japan composed of Senator Jose P. Laurel, Chairman, and the following members: Senators Francisco Delgado, Claro M. Recto, Gil J. Puyat, Lorenzo M. Tanada.a nd Lo renzo Sumulong, Representative Daniel Romualdez, Secretary Jaime Hernandez, Filemon Rodriguez, Miguel Cuaderno, Alfonso Calalang, Daniel Aguinaldo, Jose Paez, Antonio de las Alas, and Carlos Fernandez. April 23 — The President instructs Acting Secretary of Foreign Affairs Guerrero to advise the United States Embassy that the Philip pine Government is ready to appoint a panel to discuss the implementa tion of the Philippine-United States Defense Pact. The President received a report from Ambassador Carlos P. Romulo, his personal envoy to the United States, saying that he had transmitted to Secretary of State John F. Dulles the Philippine desire for bilateral talks on the Pact, as agreed upon in a conference between President Magsaysay and congressional leaders in Baguio some time ago. The President instructs Malacanang legal adviser Judge Salvador Esguerra to look into the legality of cancelling the Army’s 3-year contract with Demetrio Munoz for the purchase of “second-line” tires; the President also instructs him to find out the name of the Malacanang official who, according to Munoz’s alleged boast, had used his influence to help him obtain dollar allocation licenses from the Central Bank; the Bank was instructed to withhold action pending an investigation. The Barrera-Vargas report on the Crisol-Castro investigation clears Executive Secretary Fred Ruiz Castro from the charge of inter ference in an extortion case being prosecuted by the National Bureau of Investigation, stating also that Jose M. Crisol, former acting Director of the NBI, was motivated by a “commendable, uncompromising at titude against even the shadow of interference in what he honestly believed to be his sworn duty.” “It seems that the whole controversy arose from some kind of misunderstanding.” The President attends the “First National Jamboree” of the Boy Scouts of the Philippines at Balara, Quezon City, April 23-30, attended by some 6000 boys from all parts of the country and some 11 foreign countries; one group of 25 boys hiked to Manila all the way from Isabela, a distance of some 400 kilometers, in 15 days. April 24 — The President visits Porac, Pampanga, and announces his plan to establish a 2,000-hectare EDCOR project there. April 25 — The President receives the delegates of the League of Women Voters of the Philippines who end a 3-day convention in Manila today. Malacanang announces that the departure of the President’s special mission to Japan to assess its capacity to pay reparations, orig inally set for April 28, has been held up pending the outcome of con sultations between the group and the Philippine delegation to the Philippines-Japan reparations conference; the mission is composed of Secretary of Finance Hernandez, Francisco Ortigas, Jr., Col. Jaime Velasquez, Francisco Rodrigo, Vicente F. Barranco, and a represen tative of the Congressional Press Association. The Department of Foreign Affairs announces that Acting Foreign Secretary Guerrero informed Japanese Ambassador Murata last night that the Japanese delegation to the reparations conference would be informed in due time of the date and place of the second session of the conference, Murata having asked when the conference would be resumed. Secretary Guerrero indicated in his note that the conference would be resumed if it appeared to be “possible in the situa tion created” by the Japanese Envoy’s note of April 23 in which he stressed that the Japanese would be ready to continue the conference only “on the basis of the Garcia-Ohno memorandum”; the Philippine position was that the conference should consider the question of whether the Garcia-Ohno memorandum was merely a starting point for the negotiations, or its basis, as the Japanese averred. April 26—The President administers the oath of office to former Representative Felixberto Serrano as Philippine Chief Delegate to the United Nations with the rank of Ambassador. The President addresses the Philippine Medical Association on the occasion of its 47th annual meeting in the Far Eastern Uni versity Auditorium, speaking of his desire for the establishment of medical centers, built around groups of specialists, in various areas, and of settling young general practitioners in the small towns and barrios; he states that there should be at least one doctor to every 1,000 people, but that in the Philippines, while there is a government doctor in every town, these, theoretically, may have to look after as many as from 25,000 to 30,000 people, in consequence of which the majority of Filipinos live and die without ever having had the services of a phy sician. He also speaks of the factor of health in the low productivity of Philippine labor. The President receives a number of representatives of the Grand Lodge of Free and Accepted Masons of the Philippines, headed by Grand Master Mauro Baradi, who hands him a check of P15.000 for the President’s Liberty Wells Campaign Fund. Albino Sycip, Treasurer of the Liberty Wells Association, reports that the funds obtained now exceed P250.000. Acting Public Works Secretary Orosa states that some 250 artesian wells have already been dug since January 1. The President receives Ray Higgins, Chairman of the Philippine Red Cross Blood Bank, and asks him to convey his thanks and the 182 appreciation of the Filipino people to the officers and men of the U. S. Navy who have recently donated more than 1,500,000 cc. of blood, commercially worth some P763.500, the ships concerned being the Helena, Salisbury Sound, Pine Island, Essex, and Boxer. The total amounted to some 3,054 bottles-ful, and Higgins states the sailors could easily have given 10,000 bottles of fresh blood were there an available plasma plant. April 27 — The President unexpectedly visits the Central Bank and happening to find the Monetary Board holding a meeting, he warns against the danger of frightening away foreign capital necessary to the rehabilitation of the country and states the Board should do what it can to encourage the flow of foreign capital into the country and provide adequate protection to foreign investors to the limit of the law. April 28 — The Agricultural Credit and Cooperative Financing Administration announces that loaning operations were suspended yesterday pending the release of more funds; although over 61% of the ACCFA’s 1953 crops loans “have been paid up in palay deposits, the funds can not be used for new loans until the palay is sold and converted into cash; Farmers Cooperative Member Associations are reported to be disappointed and preparing to sell to the old middlemen and prices are dropping steadily. April 29 — The President issues instructions to the Philippine Committee which is to proceed to Japan to “survey and appraise present and prospective economic conditions in Japan 'with a view to assessing in the light of those conditions the amount which Japan can pay as war reparations to the Philippines, and also to provide our Government with a body of up-to-date facts regarding Japan to guide this Administration in the conduct of our trade relations with that country.” The President signs the instrument of ratification of the Interna tional Sugar Agreement of 1953, previously signed by the authorized representative of the Philippines in London on October 30, 1953. The Philippine Senate concurred in the ratification with the reservation— "that in case the Executive Agreement between the United States and the Philip pines whereby the latter is allowed to export to the tormer 850,000 long tons of sugar duty-free is abrogated, the Philippines will seek a revision of this Treaty to protect its own interests.” April 30 — The survey mission headed by Secretary of Finance Hernandez leaves for Tokyo in the morning; in the evening Ambassador Murata and the members of the Japanese reparation panel also leave for Tokyo. The President at a conference with officials of the National Rice and Com Corporation expresses concern over the price of rice and directs them to go after profiteers and bring down the price. The 8-day First National Jamboree of the Boy Scouts of the Philip pines ends. Some 6,000 of the 150,000 Boy Scouts of the Philippines attended together with some 200 Scouts from 12 foreign countries, all quartered at Balara, Quezon City. One group of 21 Boy Scouts from Santiago, Isabela, hiked all the way to Manila, 400 kilometers in 15 days, under the sponsorship of the Rev. John L. Pelossier of the La Salette school in-Santiago. The President receives officials and delegates of the foreign coun tries participating in the Second Asian Games to open tomorrow; they were headed by Antonio de las Alas, chairman of the organizing com mittee and Jorge B. Vargas, President of the Philippine Ameteur Athletic Federation and the Asian Games. Some 1500 officials and athletes, around 1,000 athletes, are quartered in various University of the Philip pines buildings at Diliman; from Japan (51 athletes), Nationalist China and India (33 athletes each), Pakistan (21), and other countries,— Korea, Malaya and Singapore, Hongkong, Thailand, Vietnam, Burma, Indonesia, Ceylon, Afghanistan, Israel; some 20 countries were to take part, but Cambodia, Nepal, and Iran sent words they could not come. The Asian Games Federation grew out of the First Far Eastern Athletic Championship held in Manila in 1913 on the initiative of the Philippines, China, and Japan; the Asian Games Federation was formally organized in New Delhi, in 1949, the First Asian Games being held there in 1951; the Third Games will be held in Tokyo in 1958. Domestic Securities......... 92,197 233,127 241,094 239,887 Other Assets...................... 20,390 47,959 46,383 53,363 P793.629 P902.483 P908.904 P904.840 Currency-Notes................. P555.576 P605.205 P611,333 P612.202 Coins.................. 74,384 84,498 84,385 84,376 Demand Deposits-Pesos. 117,682 163,998 163,507 156,290 Securities Stabilization Fund............................... 2,000 14,471 14,620 14,615 Due to International Monetary Fund........... 22,498 496 496 496 Due to International Bank for Reconstruc tion & Development.. 2,389 2,377 2,377 2,376 Other Liabilities............... 2,636 6,329 6,459 7,483 Deferred Credits............... — 1,212 1,759 2,364 Capital................................. 10,000 10,000 10,000 10,000 Undivided Profits............ 6,464 428 700 1,370 Surplus................. >............. — 13,268 13,268 13,268 P793.629 P902.483 P908.904 P904.840 The International Reserves as of March 31, 1954, were as follows: Central Bank International Reserves.................... $227,462,921.16 Japan Open Account (due from)............................. 13,462,523.32 Net FX Holdings Other Banks............................... 74,032,090.86 $314,957,535.34 This is an increase of approximately $4,800,000 as compared to February 26, 1954. Currency and coins issued totalled P696,577,876.99. Money is still tight in the market. Merchants con tinue to complain of increasing difficulty in effecting collec tions. Manila Stock Market By J. J. Ortigas Picornell, Ortigas & Co. March 20 to April 23 FOLLOWING the same pattern of past years, trading has been restricted due to the Easter holidays and the usual exodus to Baguio. The gold-mining share market has displayed an easier tendency, with most of the leading issues registering small losses. Among the base-metal issues, Consolidated Mining was easier, but the leading producers, Philippine Iron Mines, and Lepanto Consolidated, firmed somewhat. In the commercial and industrial section, trading was quiet and featureless. Central Azucarera de Tarlac was more in demand among the sugar group. Fixed in terest securities continued firm. Banking and Finance By M. D. Arnold Sub-Manager The National City Bank of New York OMPARATIVE statement of condition of the Central Bank.: International Reserve .. . Contribution to the Inter national Monetary Fund................................. Account to Secure Coin age .................................... Loans and Advances.... Trust Account-Securities Stabilization Fund.... 1953-54 Range High Low 107.42 82.78 0.255 0 0.0875 0 15 037 0.0975 0 06 2.10 1 0.0026 0 - — 2 0 0 0.031 0.046 0013 60 015 034 12 16 0 0 As of As of As of As of Dec. 31, Jan. 29, Feb. 26, Mar. 31, 0.32 0.22 1949 1954 1954 1954 0.105 0.43 0.042 0.325 (In thousands of pesos) P460.689 P451.133 P465.963 P454.926 0.1475 0.05 0.1075 0.06 30,000 30,000 30,000 30,000 2.29 1.42 113,306 106,940 106,940 106,940 0.31 0.15 77,047 33,324 18,524 19,724 0.27 0.015 0.17 0.008 MINING SHARES M. S. E. Mining Share Acoje Mining Co......... Atlas Cone. Mining Co............................... Baguio Gold Mining Balatoc Mining Co.. Batong Buhay Gold... Benguet Cons. Mining. Coco Grove, Inc......... Consolidated Mines, Inc.............................. General Base Metals.. Hixbar Gold Mining Co............................... Itogon Mining Co.... Lepanto Consjx......... Mindanao Mother Lode.......................... Paracale G u m a u a Cons........................... Philippine Iron Mines, Inc.xx........................ San Mauricio Mining Co.............................. Surigao Consj............ Suyoc Cons.................. x—Ex-Dividend xx—Ex-Stock Dividend High Low Close 92. 38 89 165 06 0975 2 0013 90 044 12 .07 .80 .16 .18 .015 81 15 92 05 165 Change Total Sales Off .76 0575 095 2 06 — 1 0013 80 2 095 00a 0013 85 03a Up .10 04 12 .065 .65 .15 .17 .015 042b 12 19a 042 43 07 1 74 .16 .175 .015 Off Off Up Off .002 .035 .005 .09 .015 1,207.883 20,000 62,000 353,250 95,000 183 Company 72.50 60.00 117.00 100 00 105.00 100.00 40.00 26.00 3i°:°o ?o:oo % 7.50 7.00 0.40 0.27 3.35 2.80 COMMERCIAL SHARES San Miguel Brewery, com............................ 33.50 33.00 33.00 San Miguel Brewery, i% pref.................... 100.00 98.00 100.00 TalisaySilay Milling. . — — 20.00a Univeral Insurance & Indemnity........... 13.50 13.50 13.50 Up 3.00 UpptSo° Off 1.00 Off 1.20 x—Ex-Dividend xxx—Ex-Rights T—Bond sales reported in units of P100 OVER THE COUNTER Hi th Low Close A. L. Ammen Transportation................. Demonstration Gold Mines..................... Far Eastern University............................. Johnson-Pickett Rope Co........................ Manila Jockey Club................................. Marinduque Iron....................................... Mine Operations, Inc................................ Motor Service Co....................................... Philippine Long Dist. Tel. 6% bonds (1946)...... •...................... Tabacalera, 6% bonds, 1962.................. Victorias Milling Co., Inc........................ 50 140 115 50 00 012 00 140 00 115 85 1 20 004 50 2 00 50 012 00 140 00 115 1 85 20 004 50 2 00 012 00 00 85 20 004 50 55 31 955 1,300 103 100 100 00 103 00 100 00 100 Up 1.75 Up .005 Up .50Off .50 Up 3.00 1,750 3,930 2,735,545 T 50 19,667 130 Total Sales 324 29,000 20 115-1/2 6,906 20,000 30,000 10,000 • 00 P10,700.00 00 P14,000.00 00 Ex-Div. 1,643 Credit By P. Luthi Treasurer, Menzi &• Co., Inc. however, qualifies the situation by stating that the major line is agricultural implements, and faster collection recently is attributed to the fact that in most provincial localities income from staple goods seems to have gone up in favor of farmers who have also had some benefit of long-term financing from certain institutions. A credit executive in a business dealing in the requirements of public utilities, admits that his company’s collections continue to be slow and attributes this to competition among transportation concerns in the province and to tightness of money. This credit executive indicates that down-payments on items handled on an installment basis vary from 30% to 40%, with the balance payable in 12 months as a general practice and exceptions given for payments to go beyond 12 months. Another credit executive reports no serious difficulties in collection, but admits having noted that collection is still slow and states that, as a precaution, extension of credit has been limited to regular customers and new customers of proved good-credit reputation. Another executive reports that for the past two or three months he has noted an increase in past-due accounts. Certain business quarters are showing continued in terest in a simplification of the collection system in the Philippines, but express some doubt that this can be easily done on an universal scale. It is pointed out that many people in the Philippines are not used to keeping bank deposits, partly due to the requirement of banks that a fairly sizable amount be deposited in opening a current account. It has been observed that in many provinces people depend only on the provincial agencies of a govern ment bank. Those in the more distant places are handicap ped in not having facilities for depositing their funds or for payment by postal money-order. Even with the use of postal money-orders, some doubt is expressed as to a wide use of this facility by provincial merchants in paying their obligations to Manila firms because of reported loss of postal money-orders in the mail and difficulties in obtaining reissuances. Nevertheless, the Association is continuing its drive among its members to help in the simplification of collect ing accounts, recommending that wider use be made of the mail service in sending checks and the gradual elimination of collectors. A SURVEY of the credit situation in the Philippines during the first three months of the current year, conducted by the Association of Credit Men, Inc. (P.I.) among its member firms, indicates that the demand for increased credit facilities by wholesalers, retailers, and consumers continues unabated. Of the reporting members, 67% reported lower cash sales and increased credit sales, 11% reported cash sales unchanged, and 22% reported a slight increase in cash sales as against credit sales. Generally, there was a continued pressure on credit managers to extend more favorable terms to customers, and credit men-are finding it necessary to devote more atten tion to the review of requests for extension of credit in order to avoid possible losses on bad accounts. Most credit executives feel that, in general, collections continue to be slow and might become even more difficult in the future. In the foodstuff and staple business, it has been noted that some prime necessities are being hoarded or that some manipulation is going on. The public has been observed to have a feeling of uneasiness regarding this condition. An exception to general slowness in collection is reported by one credit executive who states that his company had better collections in this and the preceding month than during the same period last year. This credit executive, Electric Power Production (Manila Electric Company System) By J. F. Cotton Treasurer, Manila Electric Company 1941 Average—16,316,000 KWH Kilow aft Hours 1954 1953 January.......................................................... 57,301,000 50,107,000 February....................................................... 52,447,000 45,501,000 March............................................................. 57,779,000 * 50,789,000 April............................................................... 54,407,000 ** 49,159,000 May................................................................ 52,042,000 June.............................................. ............. 51,304,000 July 53,877,000 August........................................................... 54,275,000 September..................................................... 53,636,000 October.......................................................... 55,943,000 November..................................................... 53,756,000 December...................................................... 57,968,000 Total...................................................... 628,357,000 •Reviled ••Partially estimated A pril output was considerably lower than March A because of one less day, the Easter holidays, and the special holiday on April 9. There was an increase of 5,248,000 KWHs or 10.6% above April, 1953. 184 In order to gauge the effect of daylight-saving time on the use of electricity, a comparison was made of the output for two 6-day periods. The first period was from Monday, March 29 through Saturday, April 3. The second period began on Monday, April 19, and ended Saturday April 24. There was virtually no difference in output for the two periods; the comparative figures being 12,018,300 KWH before the adoption of daylight-saving time and 12,020,000 KWH after. During the hour from 6 p. m. to 7 p. m. the average use dropped about 23%. There was also a drop of about 20% in the hour from 5 to 6 in the morning. How ever, after daylight-saving time the use from 8 p. m. until 1 a. m. was greater. The figures indicate that Manila people are now rising a little later in the morning and are going to bed later,—by daylight-saving time. By sun-time, local time, they seem to be “splitting the difference.” ” “ld * * • M “ D'by “ L,,,“ Spl"w"‘ REAL ESTATE SALES, 1954 Quezon Pasay Suburban Manila City City Towns Total January..........P4,757,076?l,306,427 P505.410 Pl,676,512 ?8,245,425 February........ 2,444,703 2,295,413 330,245 1,859,162 6,929,523 March............. 2,811,805 2,501,229 162,167 2,239,095 7,714,296 April............... 4,692,440 1,381,842 169,520 976,526 7,170,328 REAL ESTATE MORTGAGES, 1954 January..........P6,243,766 Pl,308,920 P517,867P3,629,703Pll.700,256 Real Estate By Antonio Varias Vice-President, C. M. Hoskins & Co., Inc., Realtors February.... March............. April................ 2,980,579 4,400,965 5,606,798 1,891,440 2,132,170 1,392,580 600,810 417,390 267,850 2,115,852 1,773,031 1,503,990 7,588,816 8,723,556 7,771,218 REAL ESTATE sales registered in the Greater Manila area during the month of April, 1954, numbered 551, with a total value of P7,170,328, as compared with 780, with a total value of P7,714,296, registered during the preceding month of March. Of the April sales, 159, with a total value of P4,692,440, represented deals within Manila, proper, and 392, with a total value of P2,477,888, were transactions registered in Quezon City, Pasay City, and in the suburban towns of Caloocan, Makati, Malabon-Navotas, Paranaque, Mandaluyong, and San Juan. A few of the bigger sales registered during the month were: Zobel St. A property with a lot of 1,202.7 sq.m, sold by Pio Barretto & Sons, Inc. to Leon V. Picache et al for P144.450. Otis St. A tract of 9,015 sq.m, sold by Chua Limco to the Domestic Invest ments Corp, for P135.23S. Cristobal St. A tract of 16,925.1 sq. m. sold by Juan Riu Planas to Lino Gutierrez .or P270.801. Orozco St. A 1-story concrete building with a lot of 1,327 sq.m, sold by Vicente Somes to Co Cuanco & Sons for the reported sum of Pl20,000. Sampaloc Sining St. A 2-story house with a lot of 450 sq. m. sold by Rosario Rosales to Gerardo Cabanela Ong for P30.000. St a. Cruz Gandara St. A parcel of 1,733.2 sq. m. sold by Gotauco Investments Corp, to Benito Go Bio for P200.053. Morga St. A property with vador Diaz for P47.000. a lot of 674.8 sq.m, sold by Paz Ongsiaco to SalPASAV C1T. Taft Ave. corner Pilapil St. A parcel of 1,100 sq.m, sold by Juan Riu Planas to Sisinio Medina Cue et al for P40.000. Lourdes St. A property with a lot of 212 sq.m, sold by Teresa Vda. de Ripol to Teresa Fuentebella for Pl8,000. Samson Road (Int.) A parcel of 5,745 sq.m, sold by Casimiro Domingo to Narciso Reyes, Inc. for P30.000. New Manila. A parcel of 3,905 sq.m, by Magdalena Estate, Inc. to the Phil ippine Amusements Enterprises, Inc. for P93.305. Diliman South "D” corner South Sth and 9th Sts. A property with a lot of 4,410 sq.m, sold by Tomas de Vera to Yao Mun Tele for P40.000. South 19th St. A property with a lot of 835 sq.m, sold by Alberto M. Flores to Lope Quinal for P37.000. San Francisco Del Monte Quezon St. A tract of 16,019 sq.m, sold by Carmen G. de Villareal to La Campana Food Products, Inc. for P56,066. Sfa. Mesa Heights Mayon St. A property with a lot of 601 sq.m, sold by Mariano Roxas to Venancia Yuaon for P80.000. Mandaluyon g Psychopathic Road. A property with a lot of 690 sq.m, sold by Augusto M. Aguila to Elpidio Valencia for P30.000. Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of March, the Office of the City Engineer approved building permits for construction work amounting to 5 * 3,869,670. For the same period in 1953, the volume of work authorized amounted to 5 * 5,172,855, in comparison with 5 * 3,465,780 in 1952 and 5 * 6,487, 320 in 1951. Some of the big projects that were started during the month under review were: A 3-story commercial building for Ambrosio Padilla on P. Ducos Street, Quiapo, costing 1 * 300,000; On Gandara Street, Binondo, for Yu Kim Teng, a 3-story build ing, estimated at P200.000; For Elizalde Rope Factory at 343 Tanduay Street, a 1-story steel bodega, costing P150.000; A commercial building for Guison Brothers, estimated at P100,000, located on Isaac Peral Street, Ermita. The biggest single contract to a Filipino company was recently awarded by the National Power Corporation for the construction of the power facilities of the Ambuklao Hydro-electric Plant at Bokod, Mountain Province, to the Philippine Engineers’ Syndicate, Inc., in the amount of 5 * 12,000,000. The Philippine Engineers’ Syndicate, Inc. is a corporation composed of several Filipino contractors, of which the writer is the President, who have group ed themselves together to undertake this project. It will be recalled that in 1949, Pier 9, South Harbor, Ma nila, was constructed by the Contractors’ Syndicate, No. 1, a corporation also formed by Filipino engineers, for the amount of P10,000,000, the work being finished two months ahead of the scheduled time; this project was under the supervision of the U.S. Army. The Ambuklao project calls for the construction, within 550 days, of an under ground power-house, where the controls for the entire plant will be situated. Another project that was let out recently by the Na tional Power Corporation involves the erection of steel towers and the stringing of electric wires from Ambuklao to Manila, a distance of 230 kilometers, at a cost of about Pl,500,000. The towers and wires and appurtenances will be supplied by the National Power Corporation. This project also calls for completion within 550 days. Prices of steel products, including nails, roofing sheets, and bars, remained firm during the period under 185 review. Cement, however, continued to be very scarce. The Cebu Portland Cement Company has paid orders for about 400,000 bags which until now have not been filled. To remedy the situation, the CEPOC has authorized the importation by private firms of Japanese or Belgian cement through PRISCO. Port of Manila By W. S. Hurst Administrative Officer, Luzon Brokerage Company DELIVERIES from the South Harbor piers for the month of April totalled approximately 85,000 tons. This showed an increse of 10,000 tons over March. Latest reports from the Delgado Bros, arrastre firm show that loss from pilferage is still on the decline. Pil ferage of cargo will probably never be completely stopped but it is hoped that it will be kept to the barest minimum. Col. Jaime Velasquez, who took over as Acting Com missioner of Customs recently, has left for Japan to join the Philippines reparations mission. Reports had it that he was leaving the Customs for good, but from later reports received he will return to the Customs Bureau upon his coming home from Japan. Which report is true will be soon known after his return. In the meantime, Mr. Edilberto David, a man with many years of experience in the Customs Bureau, will act in the place of Colonel Velasquez. The piers are still congested and deliveries are not being made as fast as we would like them to be, but we can see an easing up in this situation. It is anticipated that it won’t be long before things are back to normal. Ores, iron..................................... Ores, manganese........................ Pineapples, canned.................... Rattan, round............................. Rope. ............................................. Shell, shell waste....................... Skins, hides................................. Sugar, cent./raw....................... Sugar, muscovado..................... Tobacco ........................................ Vegetables................................... Veneer............................................ Transit cargo.............................. Merchandise, general................ 23,795 ” 103,473 3,900 ” — 2,557 ” 3,464 232 ” 177 336 ” 305 79 ” 62 17 ” 93 106,088 ” 83,645 810 ” — 2,691 ” 1,509 74 ” 77 26 ” 49 ” 35 1,119 " 593 Freight Car Loadings By Jose B. Libunao Traffic Manager, Manila Railroad Company LOADINGS of revenue freight during the month of March, 1954, totaled 7,917 cars. This was an in crease of 1,678, or 26.89% over the loadings during March, 1953, of 6,339 cars. The increase in the number of cars used is traceable to the greater sugar cane tonnage. There were more cane cars in use during March, 1954, than during the same month last year. Revenue Carloadings by Class March—Tonnage Group Commodities 1954 1953 Products of agriculture...................................... 103,331 73,435 Animal products................................................... 621 1,150 Products of mines................................................ 1,882 2,010 Products of forests.............................................. 14,885 15,778 Products of manufactures................................. 39,934 39,888 Merchandise less than by carload.................. 6,464 5,239 Ocean Shipping and Exports By B. B. Tunold Secretary-Manager Associated Steamship Lines Total...................................................... 167,117 137,500 TOTAL exports during the month of March this year showed an increase of 2,487 tons as compared with exports during March of last year; 147 vessels lifted 431,406 tons of exports during the month, as against 428,919 tons lifted by 129 vessels during the same month last year. Commodities which have registered sharp increases over last year’s figures are: coconut oil from 2,992 to 5,036 tons and tobacco from 1,509 to 2,691 tons. Exports during March, 1954, as compared with exports during March, 1953, were Commodity Alcohol.......................................... Beer................................................ Cigars and cigarettes............... Coconut, desiccated................. Coconut oil.................................. Concentrates containing cop per, gold, silver, lead, and zinc............................................ Concentrates, copper............... Copra............................................ Copra cake and meal................ Embroideries............................... Empty cylinders........................ Fruits, fresh, mangoes............. Furniture, rattan....................... Glycerine..................................... Gums, copal................................ Hemp............................................ Hemp rugs................................... Household goods and personal effects......... ........................... Logs............................................... Lumber^ sawn............................ Molasses....................................... Ores, chrome............................... follows: 1954 54 tons 916 ” 20 ” 2,859 ” 5,036 ” 539 ” 19,399 ” 51,966 ” 5,159 ” 203 ” 237 ” 61 ” 583 ” 300 ” 90 ” 67,839 bales 116 tons 377 ” 56,782,121 bft. 5,495,546 ” 23,653 tons 39,816 ” 1953 477 tons 13 ” 4,705 ” 2,992 ” The increase of 29,617 tons is to be attributed to the increased loadings of sugar cane which accounts for 29,974 tons; of manufactured articles, such as gasoline, by 3,016 tons; fuel oil, by 1,727 tons; soft drinks, by 2,064 tons; and merchandise in less than carload lots, by 1,225 tons, which, together with some 13 other items, registered a total ag gregate increase of 40,979 tons. On the other hand, because of competition and partly because of lack of proper equipment, there were decreases in centrifugal sugar, by 3,660 tons; in molasses, by 2,322 tons; in desiccated coconut, by 1,710 tons; and in some 23 other items, making a total aggregate decrease of 11,362 tons. The resulting over-all increase was 29,617 tons. On the whole, it may be stated that March tonnage increased due to heavier purchases of goods for the ex pected increased sales during the Holy Week retail-buying. It is believed that there will be further betterment during the coming month. Better prices are being offered for sugar, copra, and coconut oil. The slight recession in the United States is easing off, and improved business can be expected. 236 tons 34,938,404 bft. 5,294,018 ” 27,899 tons 42,134 ” Mining By Henry A. Brimo President Philippine Gold Producers Association, Inc. THERE is very little news to report from the gold producing industry for the past month. Gold prices have remained fairly steady during this period, hover ing between P102.80 and P104.00 for bullion and “closing” on a firm note. No doubt, gold buyers are closely watching, and being influenced by, progress of the proposed legisla186 May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 187 tion to provide the industry with a subsidy (at a price of Pill.72 per ounce, refined gold, for marginal mines, and P105.40 refined, for non-marginal companies). With Congress now on its last month, and with the Subsidy Bill already reported out by the House and awaiting discussion on second reading, it is expected that prices may rise slightly in proportion to its progress during the closing days. Even with the passage of the Subsidy Bill (House Bill No. 2294, sponsored by Congressmen Fernando V. Pajarillo, Luis Hora, Reynaldo P. Honrado, and Ramon P. Mitra), it is not likely that the local premium price would catch up with the subsidy price, but the possibility nevertheless exists that this might occur. From the view point of the Government, such an occurrence would mean that very little gold would be sold to the Central Bank, thus reducing the amount of the subsidy and the cost to the Government. The Subsidy Bill would provide the relief suggested by the ten-man Committee appointed by President Magsaysay and charged by him with the task of finding ways and means to give help to the hard-pressed gold producers. At present reading, this Bill aims to give uniform relief for all mines except the Atok-Big Wedge Mining Company, which might benefit more if it returned to production and if there were sufficient funds in the proposed Subsidy Ac count at the end of each year to pay this Company addi tional relief. This fixed-price subsidy, by the way, only partially conforms to the suggestion of the International Monetary Fund for a subsidy based on individual costs. However, the Presidential Committee looked into this question at length and recommended the uniform subsidy as a tem porary expedient for several good reasons, namely: (a) to avoid possible complications and confusion which might otherwise develop if the International Monetary Fund suggestion was imposed without prior serious study of local mining costs; (b) because the mining costs of the gold pro ducers are quite uniform anyway; and (c), more impor tantly, because it is the desire of this Committee to avoid a subsidy based on costs, as this might relegate incentives to increased efficiency to a forgotten limbo, and at a time when the marginal nature of almost every mine demands the utmost efforts toward increased efficiency. The two-price subsidy, moreover, would help to make the proposed piece of legislation conform more closely with the suggestion of the International Monetary Fund. The Presidential Committee expects that in the ensuing year, largely through the efforts of the Central Bank, and through the importation of two Canadian experts who have had experience with the Canadian subsidy system based on costs, serious study will be undertaken of gold producing mines here so that a more mature subsidy legislation can then be provided next year which would entirely satisfy the International Monetary Fund. Meanwhile, with only twenty congressional days remaining on the calendar, passage of House Bill No. 2294 is far from assured. It is presumed that there is nothing controversial in the Bill itself and that Congress well recog nizes that the gold producers must have this Bill or perish for the most part, but in view of the record number of bills clamoring for consideration, the restricted time left might find a casualty in the hopes of the gold producers. For this reason, it is stated that President Magsaysay holds the key to its final enactment, and that by certifying to its urgency, thus enabling Congress to act on it without the necessity of three readings in both Houses, its passage could be assured. Readers will recall that it was President Quirino’s certification a year ago that made possible the passage of Republic Act No. 909 (tax relief) on the last day of the session. PHILIPPINE MANUFACTURING COMPANY 188 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 Lumber By Pacifico de Ocampo Secre tary- Treas urer Philippine Lumber Producers’ Association, Inc. DURING the month under review, March, 1954, the Philippines exported 65,095,891 bd. ft. of logs and lumber, 9,013,458 bd. ft. more than the preceding month. The big increase was mainly due to an increase in the shipment of logs to Japan, from 45,633,265 bd. ft. in February, 1954, to 53,430,905 bd. ft. in March, 1954, an increase of 7,797,640 bd. ft. The exports to the United States increase by 1,741,174 bd. ft., from 4,432,793 bd. ft. in February, 1954, to 6,173,967 bd. ft. in March, 1954. Exports to all other countries decreased by 525,356 bd. ft., from 6,016,375 bd. ft. in February, 1954, to 5,491,019 bd. ft. in March, 1954. The following are the figures for the logs and lumber in bd. ft. inspected for export during March, 1954, as releas ed by the Bureau of Forestry. Shipper Destination Volume in Lumber Board Feet Logs Aboitiz & Co., Inc................... Japan 899,975 Aguinaldo Development U. S. A. 201,162 Corp............................................ . Japan 1,399,920 Agusan Timber Corp................ Japan 2,720,000 Alberto S. Llorente................ Japan 446,553 American Rubber Co............... . Japan 1,765,290 Anakan Lumber U. S. A. 200,000 Company................................ . Japan 2,720,000 Anacleto O. Reneses................ . Japan 465,719 Aras-asan Timber Co............... . Japan 260,128 Atlantic Gulf & Pacific Co.... . Hongkong 128 Basilan U. S. A. 813,729 513,581 Hawaii 117,625 Lumber Hongkong 106,057 Denmark 6,266 Company............................ . Japan 1,299,947 Bislig Bay Lumber Co., Inc... Japan 3,900,000 Brigido R. Valencia.................... Japan 1,542,280 Cantilan Lumber Co................... Japan 899,775 Cipriano Luna Lumber Enter prises ........................................... Japan 765,692 Continental Merchandizing Corp............................................. Japan 286,684 Dahican Lumber Co................... Formosa 138,637 Dy Pac fie Formosa 820,000 Co., Inc...................................... Japan 479,000 Edward L. Kincaid...................... U. S. A. 221,899 Extensive Enterprises Corp.... Japan 949,998 Findlay Millar Okinawa 500,000 500,000 Timber Co.................................. Japan 1,255,425 F. E. Zuellig, Inc......................... U. S. A. 45,006 General Enterprises, U. S. A. 91,155 Inc................................................ Japan 1,350,000 General Lumber Co., Inc.......... Formosa 996,258 G. S. Manalac Enterprises .... Japan 2,435,422 Hercules U. S. A. 183,423 Lumber Hawaii 67,577 Co., Inc................................... Japan 2,499,990 Iligan Lumber Co., Inc.............. Japan 450,000 Insular U. S. A. 867,661 Lumber Africa Belgium 556,984 70,753 Company............................... Canada Hawaii 64,217 77,483 Johnston Lumber Co., Inc........ Japan 849,779 Lanao Timber Mills, Inc........... Japan 1,189,159 Mariano R. Lacson..................... Japan 750,002 Martha Lumber U. S. A. 500,000 Mill, Inc..................................... Japan 1,250,000 Misamis Lumber Co., Inc......... Japan 1,399,990 Nasipit Lumber U. S. A. 750,235 870,000 Co., Inc....................................... Japan 5,800,000 Pacific Mahogany 8s Plywood Corp............................................. Japan 499,429 P. B. Dionisio............................... Japan 299,184 Quirino Macapagal...................... Japan 258,000 Ralph W. Dempsey.................... U. S. A. 249,062 Red Wood Company................. Japan 499,828 Sanchez Logging Co.................... Japan 1,083,618 Sta. Clara Lumber U. S. A. 19,998 Co., Inc....................................... Japan 1,953(337 ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office 174 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS il| STRUCTURAL STEEL SHOPS • WELDING | SHOPS • BLACKSMITH SHOPS • SHEET I METAL SHOPS • MARINE RAILWAY $ Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 189 Sta. Ines Logging Enterprises . Schnabel 8s Cueva...................... Standard Sawmill Co.................. Taggat Sawmill Co., Inc....................................... Tirador Lumber Co., Inc........... T. H. Valderrama 8s Sons......... Valderrama Lumber Mftrs. Co. Valeriano C. Bueno.......................................... Visayan Sawmill Co., Ltd......... West Basilan Timber, Inc......... Western Mindanao Lumber Co., Inc...................... Woodworks, Incor pora ted ....................................... Yearsley, Inc................................. Japan 1,000,000 Guam 1,500 Japan 2,000,000 U. S. A. 83,884 Hawaii 43,832 Formosa 659,919 Japan 1,109,687 U. S. A. 50,241 U. S. A. 200,012 Japan 494,477 Japan 1,700,998 Japan 500,000 U. S. A. 20,050 Japan 2,001,619 U. S. A. 223,652 Okinawa 500,000 Africa 108,000 Formosa 220,000 U. S. A. 5,000 SUMMARY OF EXPORTS DURING MARCH, 1954, ARRANGED BY COUNTRIES OF DESTINATION IN THE ORDER OF VO LUME OF SHIPMENT TO EACH COUNTRY Countries of Destination Lumber (Bd.Ft.) Logs (Bd.Ft.) Total (Bd.Ft.) Japan ............................................ — 53,430,905 53,430,905 United States............................ 3,624,995 2,484,755 2,834,814 6,109,750 Formosa........................................ — 2,834,814 Okinawa........................................ 1,000,000 500,000 1,500,000 Africa............................................ 664,984 — 664,984 Hawaii.......................................... 306,517 — 306,517 Hongkong..................................... 106,185 — 106,185 Belgium........................................ 70,753 — 70,753 Canada.......................................... 64,217 — 64,217 Denmark...................................... 6,266 — 6,266 Guam............................................ 1,500 — 1,500 Totals................................... 5,845,417 59,250,474 65,095,891 Trend of Exports to: This Month Month Ago Year Ago Lumber Logs Lumber Logs Lumber Logs (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) Japan.............. — 53,430,905 — 45,633,265 — 28,918,979 United States and Canada. 3,689,212 3,484,755 2,982,630 1,450,163 4,082,944 2,066,129 Other countries 2,156,205 3,334,814 1,755,946 4,260,429 1,425,977 1,825,131 Totals.......................................................................... 5,845,417 59,250,474 Resume of Exports to: Japan ............................................ United States and Canada . . All others..................................... Lumber Logs (Bd.Ft.) (Bd.Ft.) — 53,430,905 3,689,212 2,484,755 2,156,205 3,334,814 Total (Bd.Ft.) 53,430,905 6,173,967 5,491,019 Totals......... 5,845,417 59,250,474 4,738,576 51,343,857 5,508,921 32,810,239 Totals................................... 5,845,417 59,250,474 65,095,891 Arrivals of logs and lumber in Manila during the month under review, aggregating 13,155,326 bd. ft., in creased by 674,345 bd. ft., as compared to arrivals during the previous month of 12,480,981 bd. ft. COMPARATIVE STATEMENT OF EXPORTS MADE TO DIFFERENT REGIONS OF THE UNITED STATES DURING THE MONTHS OF FEBRUARY AND MARCH, 1954 Period Lumber in Board Feet Logs i n Board Feet Grand Total Western Eastern States States Gulf States All Others Total Western States Eastern States Gulf States All Others Total February, 1954................... 1,849,541 667,951 98,842 306,211 2,922,545 763,862 186,301 500,000 — 1,450,163 4,372,708 March, 1954........................ 2,132,813 2,033,607 244,562 214,013 3,624,995 1,384,743 — 600,000 500,012 2,484,755 6,109,750 Difference (Increase -H 283,172+ 365,656 + 145,720 + 92,198—• 702,450 + 620,881 + 186,301— 100,000 + 500,012 4■ 1,034,592— 1,737,042 + INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS MEMBER — PHILIPPINE LUMBER PRODUCERS’ ASSOCIATION, INC. ----*---SPECIALISTS IN KILN-DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Philippine Lumber Manufacturing Norton & Harrison Company Company Insular Saw Mill, Inc. 814 Echague 14-30 Soler St. 340 Canonigo, Paco Manila Manila Manila MANILA OFFICE: 603 FILIPINAS BUILDING 190 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 A generally stable condition prevailed in the local wholesale lumber market during the month under review, March, 1954, with prices remaining steady as of the pre ceding month at P170-P185 per 1000 bd. ft. for white lauan, P170-P185 for apitong, and P200-P215 for red lauan. Manila Hemp By Robin Duncan Third Vice-President, Conrad & Co., Inc. AT the beginning of the month, the New York market was stagnant, with manufacturers showing no in terest at all. Quotations on April 2 were: machinecleanedF, 20/; I, 19-1/2/; S2, 18-7/8/; Jl, 18-7/8/; G, 173/4/. These prices were nominal as practically no business was done. Toward the end of the month, the market weak ened, and hemp was offered at: machine-cleaned F, 19-3/4/; I, 19/; S2, 17-1/2/; Jl, 17-1/2/; G, 16-1/2/. There were indications that sellers would even shade these prices for business. The London market was active, with a quite startling demand for DAMC/S3 which continued throughout the month. Other Davao grades were in demand, but with the weakness in New York, prices declined, with the excep tion of DA/S3, about $20/25 per ton. Non-Davao hemp declined relatively less, as there was less of this type being offered, production in the Bicol having fallen off consider ably due to the present low prices. The demand from Japan was sporadic, and reports continued to flow in on the present financial stringency there, affecting all importers. Here in the Philippines, the question of whether the Philippine-Japan Trade Agree ment, which expires on May 20, will again be extended, is an unsettling factor, particularly in view of the present opinion of Congress on reparations. Prices in Japan declined in sympathy with other consuming markets, about $2 a bale. Little further has been heard on the subject of hemp for Korea: the amount allocated was apparently more than the economy of Korea could absorb, and it is clear that importers there would rather buy finished goods, such as rayon material, than raw materials such as hemp. The decline in prices throughout the Philippines has inevitably resulted in decreased production. As pointed out in our report for February, we are seriously concerned regarding future production unless prices improve, and there are no indications from consuming markets which would warrant an increase at present. We detail below the usual statistics: Balings—January/ March inclusive 1954 1953 1952 1951 19,50 Davao................................... 122,149 119,713 129,356 122,446 75,456 Albayz Camarines/ Sorsogon................................... 32,349 79,788 56,099 86,356 50,790 Leyte,'Samar...................... 33,026 34,788 50,625 49,803 31,598 All others............................... 21,731 26,194 20,469 27,627 20,402 Exports—January/March inclusive United States and CaTotal............................ 209,255 260,483 256,549 286,232 178,246 nada................................. 45,549 88,311 91,974 188,079 61,080 Continent of Europe.... 47,521 48,768 50,792 50,919 23,384 United Kingdom............. 37,086 29,571 37,095 41,707 17,240 Japan.................................... 55,838 67,712 26,307 33,990 31,688 Australia and New Zea land ................................... 1,800 1,200 350 — 625 South Africa...................... 2,340 2,550 3,450 2,820 780 India..................................... 1,310 1,700 1,430 2,290 1,775 Korea................................... — — — — 700 China.................................... 1,034 950 3,425 1,555 3,850 Others................................... 702 20 160 Total............................ 193,180 240,782 214,983 321,360 141,122 Complete . . . Integrated Facilities— ENGINEERS—CONTRACTORS MANUFACTURERS—DISTRIBUTORS Operating: STRUCTURAL STEEL FABRICATING SHOP MACHINE SHOPS FOR CONSTRUCTION & REPAIR FOUNDRY FOR CAST IRON, BRASS & BRONZE WOOD PRESERVING PLANT "KXOW-HOW” BACKED BY EXPERIENCE SINCE 1005 May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 191 Sugar By J. H. d’Authreau Acting Secretary-Treasurer Philippine Sugar Association THIS report covers the period April 1 to April 30. New York Market. Under pressure from Wash ington and the threat of being ruled off the ballot in the new election, the ILA called off its longshoremen’s strike on April 5. The new election to determine longshore men representation is now set for the last week in May. The market opened easy with 5,000 tons Philippines for end April arrival done at 6.20/. On April 5, 4,000 tons Philippines, due April 23, were sold at 6.23/. The market remained generally quiet until April 15 with small lots of Philippines, Cubas, and Portos for April and May arrival at equivalent to 6.20/23/, c.i.f., duty paid basis. It was thought that refiners would be obliged to come more openly into the market after the Easter holidays. A sale of 3,000 tons Philippines to operators was reported over the holidays at 6.27/ for discharge not before July 1. But upon the reopening, refiners continued aloof and the market remained dull and inactive for the rest of the month with limited business only in Philippines at 6.20/ for May/June ship ment. The market was further depressed by the appear ance of unsold afloat Philippines in hands of operators for May arrival which sold down to 6.15/. Refiners are evid ently well stocked and refined withdrawals slow. Forward positions on the exchange remained fairly steady throughout. Reported sales of actuals totalled 121,595 long tons, of which 30,000 tons were Philippines. Exchange operations for the period approximated 279,600 short tons. Deliveries of refined for the period March 21 to April 24 were 736,775 short tons, as compared with 661,377 for March and 528,980 for April, 1953. Total deliveries for the year to April 17 were 2,145,955 short tons, as compared with 2,295,460 short tons on the same date in 1953. On April 24 refiners stocks were 242,758 long tons as against 182,023 long tons on the same date last year. Opening and closing quotations on the No. 6 Contract were as follows: May * •' * 5.70(5 July 5.77(4 5.74 Sept. Nov. March, 1955 5.80(4 5.80^ 5.54(4 5.77 5.78 5.54 April 1. ” 30. Average spot price for April was 5.694286/. Average spot price January 1 to April 30 was 5.622317/. Local Market, (a) Domestic Sugar. The market continues dull and depressed, with little trade activity reported. Prices have declined about 30 centavos per picul in all districts, the last quotation from Bacolod being P13.80 ex Negros warehouse. Manila quotations for ex Manila warehouse as announced by the Bureau of Commerce were as follows: 97° 98° 99° April 7.... P14.30/P14.50 P16.00/P16.20 P17.10/P17.50 ” 14.... P14.10/P14.30 P16.00/P16.20 P17.10/P17.50 ” 21... P14.10/P14.30 P16.00/P16.20 P17.10/P17.50 ” 28... P14.10/P14.30 P16.00/P16.20 P17.10/P17.50 (b) Export Sugar. Due to heavy sales earlier in the season, the'market has been dull and inactive throughout the month, with the exception of the Easter holiday flurry at which time, based on operator interest in New York, some 9,000 tons changed hands at P15.50/55. The market has since declined to P15.15, at which there is no interest on the part of sellers whatsoever. Shipments for the month were much less than ex pected, partly due to some vessels loading over the end of the month. Total shipments actually reported by the Customs Houses were approximately 109,000 long tons, making a total of 509,422 long tons against the 1953-54 crop, as compared with 443,000 long tons up to the same date in 1953. Total shipments from January 1 to April 30 ★ Subscribe to the JOURNAL To Keep Your File Complete ★ 192 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 were approximately 407,964 long tons, as compared with 294,819 long tons at the same date in 1953. Total Philip pine arrivals in New York for the period January 1 to April 24 are recorded at 268,667 long tons, as compared with 219,215 long tons for the same period in 1953. World Market. Opening and closing quotations were as follows: 1955 1955 Spot May July Sept. Oct. March May STARTING MAY 20TH Pan American’s Rainbow Service DIRECT FROM MANILA April 1........... 3.33£ 3.34 * 5 3.33t 3.32£ 3.33^ 3.26 * 5 3.27 * 5 ” 30........... 3.38 — 3.39 3.35 3.35 3.27 3.29 which reveal little change from last month. The spot price has recovered to 3.35/. From Japan it is reported that because of the deteriorating foreign exchange situation, the Government will reduce sugar imports from the dollar areas during the fiscal year April 1, 1954, to March 31, 1955. The tentative import schedule of the MITI is reported as follows: Round Irip $ 987.90 1048.40 1058.40 (a) (b) Metric Tons Apr./Sept. Oct./March From Dollar areas (much on barter or link basis)............................................... 100,000 215,000 Open Account areas (Indonesia, Brazil, Philippines).............................................. 125,000 Taiwan (Formosa).................................... 175,000 Direct Consumption (presumably from Taiwan and Indonesia). :.................. 400,000 30,000 155,000 20,000 420,000 LOW TOURIST FARES ALL THE WAY! Rome Paris London Now you can fly The Rainbow — Pan American’s famous tourist service — all the way from Manila to Europe! Save $246 to Rome... save $262 to Paris and London over first-class round-trip fares. Fly in four-engine Clippers * to Hong Kong. From there giant Super-6 Clippers wing you swiftly on to Europe. You relax in soft reclining seats in an air-conditioned cabin... enjoy complimentary meals, courteous service. Rainbow service also across the Pacific to Hawaii and the U.S.A. F«r raMrvafions, call your travel agent or Phone 2-79-91 Manila Hotel Downtown Office (270 Plaza Cervantes) •Trade-Mark Registered Pkilippine Patent Ofice Cuban sales to the world free market as of March 31 are reported at 453,770 Spanish long tons, as against approxi mately 1,200,000 at the same date last year. Cuban Molasses. President Batista has authorized the production of high-test molasses equivalent to about 100,000 tons sugar to be obtained from surplus cane. It is now reported that this molasses will be sold to the United States for the manufacture of cattle feed and not as pre viously reported for conversion to alcohol. It is estimated by waiving of tapces, by reduced wages to labor, and reduced prices for cane, the molasses will be produced for the equi valent of about 1.25/ a pound for sugar. United States-Philippine Trade Act. Adminis tration supporters in Manila are reported at work preparing the necessary resolution for adoption by Congress requesting the United States Government to extend the Act in its present form for the 18 months period beyond July 3 next which will be devoted to study of its possible revision by joint commissions. International Sugar Agreement. The International Sugar Agreement of 1953 was ratified by the Senate of the Philippines on April 8, 1954, by Resolution No. 8. 1'953-54 Milling. Of the 25 Centrals that operated during the 1953-54 crop, 5 Centrals have already finished milling, and the latest reports received by the Philippine Sugar Association indicate that the total production of these 25 Mills to April 25 is 1,194,924 short tons. The average of juice purities to date is 84.27. Pan American P. 3. NOW—Fly The Rainbow Round-the-world for only $1384.20 Copra and Coconut Oil By William S. Rice, Jr. Copra Buyer, Philippine Manufacturing Company THE market was steady to strong the first three weeks of the month with considerable strength during the third week. Prices declined again in the fourth week. A large short position had developed among foreign dealers and local exporters during the long decline. Copra arrivals at Cebu and Manila fell below expectation due to holding by producers and small buyers and loss of produc tion during the Holy Week holidays. International develop ments centering around the Indo-China War tended to make some shorts nervous. After reaching a new low for May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 193 the year on April 1, the market began to react with gradually increasing momentum which culminated in a very sharp rise during the third week when these strengthening factors bore most heavily on the market. Prices declined during the last week as arrivals increased sharply, and the market closed on an easy tone. Copra Prices. During April, prices to the United States ranged upward from $157.50 to $187.50 per short ton c.i.f. West Coast, a recovery of $30.00 during the month, but the close was at $177.50, giving a net gain of $20.00 for the month. In Manila the local price for fresh copra, resecada basis, 30-day delivery, followed the export prices and advanced from P28 to a high of P34 and later closed at P31 per hundred kilos. Coconut Oil Prices. Coconut oil ranged from 11-1/2$/ to 13-3/4/ per pound f.o.b. tank cars, Pacific Coast, for May shipment. On two occasions the spot coconut oil market was quite strong, enabling crushers to raise their ideas for copra purchased against spot sales. Copra Cake and Meal Prices. The West Coast meal market steadied at about $60 to $63 per short ton f.o.b. dock West Coast. Copra Statistics Philippine Copra and Coconut Oil Exports (Zn long tons) Copra Exports February United States......................................................... 16,749 Europe.................................................................... 28,250 Other countries..................................................... 5,051 March 23,000 25,623 3,343 Total............................................................... 50,050 51,966 Coconut Oil Exports United States....................................................... Other countries..................................................... 4,978 5,036 Total............................................................... 4,978 5,036 Manila and Cebu Copra Arrivals 1951 monthly average.......................... 1952 monthly average........................... 1953 monthly average........................... January, 1954.......................................... February, 1954........................................ March, 1954.............................................. April, 1954................................................ April, 1953................................................ April, 1952................................................ April, 1951................................................ (Zn metric tons) Manila Manila Cebu and Cebu 14,344 19,667 34,011 14,604 15,102 29,706 12,052 15,979 28,031 13,038 15,490 28,528 11,674 14,218 25,892 10,356 14,170 24,526 10,300 13,926 24,226 8,305 13,380 21,685 12,411 9,587 21,998 10,183 17,789 27,972 Philippine and Indonesian Copra Exports (Zn metric tons) Philippine Copra Exports * Indonesian 1951 monthly average.......................... 74,586 1952 monthly average........................... 67,533 1953 monthly average........................... 57,821 January, 1954.......................................... 53,992 February, 1954........................................ 58,879 March, 1954.............................................. 60,919 Production and Future Prospects. Production continues to improve and exports during the first quarter of the year‘were much improved over the same period of 1953. This trend should become even more pronounced as the year continues. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from March 20 to April 20 during which time the copra market dropped greatly and reached the year’s low to. date. Raw nut ■ HliRIHlMIISnii ( IIII I'II 11 1 T IIH 449 Dasmarinas Manila AMERICAN RADIATOR & STANDARD SANITARY CORPORATION AMERICAN VALVE COMPANY AMES BALDWIN WYOMING COMPANY BADGER METER MANUFACTURING CO. BADGER FIRE EXTINGUISHER CO. BALL BROS. MASON JARS BOMMER SPRING HINGE COMPANY CAPEWELL MANUFACTURING CO. CARBORUNDUM COMPANY COLUMBUS COATED FABRICS CORP. COLUMBIAN VISE & MFG. CO. CORBIN LOCK COMPANY DICK BROTHERS MANUFACTURING CO. EKCO PRODUCTS CO. GREAT NECK SAW CO. JACOBS MANUFACTURING CO. KEENEY MANUFACTURING COMPANY MALLEABLE IRON FITTINGS CO. NORTH WAYNE TOOL COMPANY PABCO PRODUCTS, INC. “Pabco” Products R. E. DIETZ COMPANY RADIUS AKTIEBOLAGET SLOAN VALVE COMPANY SOLARINE COMPANY TEMPLETON KENLY JACK CO. UNION CARBIDE & CARBON CORP. National Carbon Division “Eveready” flashlights & batteries Linde Air Products Division “Union” Carbide “Oxweld” Welding Rods, Supplies and Generators “Prest-o-Weld” Welding and Gutting Apparatus UNITED STATES STEEL EXPORT CORP. ♦ STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING 194 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 Every three seconds... There is a customer being served by one of our fully staffed branch offices in some commercially important world city every three seconds. This globe-wide service plus our unparalleled resources and 141 years of banking experience are available to you at THE NATIONAL CITY BANK OF NEW YORK BRANCHES IN THE PHILIPPINES MANILA Main Branch: Juan Luna Street Port Area Branch: 13th Street PAMPANCA: Clark Field CEBU: Cebu City prices dropped correspondingly and for about ten days raw nut prices were about 5% below equivalent copra prices. Desiccated coconut factories have been operating at about 50% capacity, which accounts for the very weak raw coconut prices. There apparently is a large inventory of desiccated coconut in the United States plus the fact that April production means June arrival, which is the beginning of summer when purchases drop off as com paratively few candy and baking products are used during the summer. However, the drop in production in the Philippines is unusually great, and it is the writer’s opinion that general business conditions and stock-conscious buyers are more responsible than the seasonal trend. The following shipping statistics cover the month of March: Shippers Pounds Franklin Baker Company................................................... 1,130,800 Blue Bar Coconut Company.............................................. 930,135 Peter Paul Philippine Corporation.................................. 463,700 Red V Coconut Products, Ltd........................................... 2,120,400 Sun Ripe Coconut Products, Inc...................................... 653,000 Cooperative Coconut Products, Inc................................ 587,500 5,867,535 Tobacco By Luis A. Pujalte Wholesale Dealer & Exporter of Leaf Tobacco THE following communication, which I received from a friend in the tobacco business, effectively expresses a view with respect to the proposed re-establishment of the National Tobacco Corporation which I fully share: IN connection with the pending bill (H. No. 107) seeking the re-crea tion of the National Tobacco Corporation, statements made which are not based on facts must be checked, so as not to mislead those entrusted with the task of mapping out the economic policies of the country. In news items which appeared recently in the local press, it was stated that the price for the Cagayan Valley leaf tobacco is now down to P7.00 per quintal, and that the cause for this low price is the abolition in 1950 of the National Tobacco Corporation which was created in 1940 for the purpose of protecting the interest of the farmers and which, for this same reason, is being proposed to be re-created. It was further stated in the same news reports that during the lifetime of the former NATOCO, the price per quintal averaged P24.00. For the sake of accuracy, the prices paid per quintal to the farmers, according to reliable information, were as follows: 1939 ..................................................... P 9.20 I NATOCO was actively 1940 ..................................................... 8.80 | buying tobacco from 1941 .................................................... 4.50 ) the farmers 1942-45 War years 1946 .................................................... 17.64 \ 1947 .................................................... 21.99 | NATOCO was actively 1948 ..................................................... 26.62 2 buying tobacco from 1949 .................................................... 26.70 1 the farmers 1950 .................................................... 30.45 I 1951 .................................................... 19.33 ) NATOCO no 1952 .................................................... 14.56 ? longer in 1953 .................................................... 24.09 ) existence From the foregoing figures,, it can be seen that from 1940 to 1950 when the NATOCO was actively engaged in buying tobacco from the farmers, the average price was not P24.00 per quintal but only P19.35, and that in 1953, when it was no longer in existence, the prices climbed as high as P 24.09. These facts prove that prices do not depend upon the existence of a government corporation, unless an outright subsidy is contemplated, but are governed by the very old law of supply and demand. The prices of tobacco are especially sensitive to this law, inasmuch as 70% of the Cagayan-Isabela tobacco looks to the foreign market as its outlet, while the domestic demand for this type of tobacco is relatively constant, the sales of native (non-Virginia) cigarettes being comparatively small and unfluctuating. Replying to the remarks which appeared in the press that the prices paid to the farmers listed in the books of the buyers are probably incorrect, it is stated that buyers have no reason to hide the actual prices paid, and this claim in the newspapers is unjust and untrue. Before deciding on the re-creation of a government entity like the NATOCO, it is respectfully recommended that the records of the deMay, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 195 funct NATOCO be studied carefully and the causes be found why this corporation failed to accomplish the purpose for which it was es tablished and was consequently abolished. This, it is believed, is very necessary in order that any mistakes found would not be repeated in case of its reestablishment. Elonelon 1st class: 2nd class: Wagwac 1st class: 2nd class; 17.50-18.50 17.00—18.00 Rice By Charles O. Houston, Jr. Director, Graduate School, University of Manila Macan^^ Elonelon 1st class: 2nd class: 18.50- 20.00 x X 17.50- 18.50 Wee * of April 12—17 16.50-17.00 16.00-17.00 15.50-16.00 18.70-19.20 16.00—16.50 15.50-16.50 15.00-16.50 18.20-18.70 THIS month’s survey covers the period March 29 to April 17. Between those dates the rice market re mained generally firm with a hardening of the suppliers’ attitude toward the end of the period. The market was influenced to some extent by the exodus of Manila residents to Baguio and the provinces. Owing to limited arrivals in the face of a moderate demand, all varieties except bencer and elonelon second class registered increases ranging from 25/ to 50/ at the beginning of the period to 40/ to Pl.05 (all per sack of 56 kilos) at the end of the period. No change was noted in quotations for NARIC varieties throughout the period. The gradual hardening of prices seems due to the reluctant attitude of palay holders to trade, anticipating better bids from millers, brought about by the news that the NARIC would soon enter the market and begin buying palay at P8.60 per sack (44 kilos). As a result, palay ordinario, Cabanatuan, registered an abrupt increase, during the week of April 5-10, to as much as 80/ per sack (44 kilos). WaawM 1st class: Ordinario Ordinario Ordinario Prices (Sack, 56 kilos) Week of March 39—April 3 Macan 1st class: 2nd class: Elonelon 1st class: 2nd class: Wagwag 1st class: 2nd class: NARIC 18.00—18.50 17.50-18.00 19.00—20.00 18.00-18.50 (Palay: e^k^gg kilos) Week of March 29—April 3 Thia week Last week Month ago Year ago 6.90 6.90 7.10-7.20 8.45 PRICES (Rice: per ganta) Week of March 29—April 3 Year ago Month ago Week ago This week 1941 0.93 0.78 0.78 0.78 0.29 0.85 0.73 0.73 0.73 0.28 1.08 0.93 0.93 0.93 0.31 1.03 0.88 0.88 0.88 0.30 1.20 1.15 1.15 1.15 0.32 1.10 1.00 1.00 1.00 0.29 0.80 0.75 0.75 0.75 0.25 (Palay: per ganta) 0.55 0.48 0.48 Macan lit clan: 2nd class: Elonelon 1st class: 2nd class: 2nd class: l * Week before Month ago 15.70-16.50 15.50-16.20 15.50-16.50 15.20-16.00 15.00-16.00 15 00-16.00 17.00-18.00 » 16.50—17.50 2nd class: 18.50- 19.50 17.50- 18.00 x x Week of April 5—10 16.00-17.00 15'70—16.50 15'50-16.00 15.50- 16.50 15.20—16.00 15.00-15.50 Year ago 18.20—19.00 17.50-18.50 Unclassified 18.20-19.00 17.50-18.50 Macan 1st class: 2nd class: Elonelon 1st class: 2nd class: Wagwag 1st class: 2nd class: 0.12 0.43 Week of April 5--10 0.93 0.78 0.78 0.78 0.29 0.85 0.73 0.73 0.73 0.28 1.08 0.93 0.98 0.98 0.31 1.03 0.88 0.88 0.88 0.30 1.20 1.15 1.15 1.15 0.32 1.10 1.00 1.00 1.00 0.31 OI6 Gold , LEAD THE WAY CIGARETTES CIGARETTES REG. PHIL. PAT. OFF. OW6010)) fa With smokers everywhere changing to OLD GOLD cigarettes, 1953 was the biggest year in nearly 200 years of tobacco experience for OLD GOLD. For no other leading cigarette is less irritating or easier on the throat or contains less nicotine than OLD GOLD. P. Lorillard Company k Established 1760, U. S. A. j 196 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 A. SORIANO Y CIA. Soriuno Bldg. Plaza Cervantes Manila General Managers of: SAN MIGUEL BREWERY, INC. PHILIPPINE AIR LINES INDUSTRIAL TEXTILES MANUFACTURING CO. OF THE PHILIPPINES RHEEM OF THE PHILIPPINES BISLIG BAY LUMBER CO., INC. INTERNATIONAL ENGINEERING CORPORATION PHILIPPINE ELECTRICAL MANUFACTURING CO. ATLAS CONSOLIDATED MINING AND DEVELOPMENT CO., INC. General Agents For: OCCIDENTAL LIFE INSURANCE CO. OF CALIFORNIA COMMONWEALTH INSURANCE CO. THE HOME INSURANCE CO. UNION INSURANCE SOCIETY OF CANTON, LTD. GREAT AMERICAN INSURANCE CO. SULZER BROS., LTD. An up-to-tbe minute, complete reference library in two volumes— CLOTII--------- P6.35 post. P.46 PAPER----(Willi two new features "/leadline History of Our Times." "Economics of the World lie Live In.'") PAPER — P3.00 post. P43 WORLD ALMANAC and Book of Facts-1954 INFORMATION PLEASE ALMANAC—1954 PHILIPPINE EPIICMlOHMl 1104 C.astillejos, Manila 1,732,255 140,915 14,154 312,353 896 125,276 412,168 92,289 NARIC 0.80 0.75 0.75 0.75 0.25 (Palay: Per ganta) Unclassified 0.55 0.43 0.43 0.43 0.12 PRICES (Rice: per ganta) Week of April 12—17 Year ago Month ago Week ago This week 1941 Macan 1st class: 0.93 0.78 0.78 0.80 0.29 2nd class: 0.85 0.73 0.73 0.75 0.28 Elonelon 1st class: 1.08 0.93 0.93 0.93 0.31 2nd class: 1.03 0.88 0.88 0.88 0.30 Wagwag 1st class: 1.20 1.15 1.15 1.15 0.32 2nd class: 1.10 1.00 1.00 1.00 0.31 NARIC 0.90 0.75 0.75 0.75 0.25 (Palay: per ganta) Unclassified 0.55 0.43 0.43 0.43 0.12 These tables indicate that, toward the end of the period surveyed, a gradually rising tendency became evident. While holders of stocks awaited a rising market, the whole industry suffered the most severe shock in many months with the announcement that no further funds would be available from the ACCFA and that its loaning operations would be reduced, with a possible end in view. How severe this shock will prove to the industry will not become ap parent before the end of the month of May, but that it is liable to prove severe is indicated in the figures for May 3: (Rice: sack 56 kilos, ex-warehouse): Macan 1st class: 2nd class: Elonelon 1st class: 2nd class: Wagwag 1st class: 2nd class: o c 17.70-18.20 17.20-17.70 19.50-20.00 19.00-19.50 21.00-22.00 19.50-20.50 At production and shipping centers, a considerable rise also was noticeable: Cabanatuan: Pl7.00 (macan); P20.00 (wagwag); and 19.00 (raminad). In Iloilo: prices ranged from P14.50 to P18.00, and in Aparri, ordinario (in sacks of 60 kilos), stood at P14.50. At the end of trading, closing price for Macan, in Manila, stood only 50/ less than opening prices a year ago. Ordinario, which at the end of the period surveyed (April 17), stood at P7.70 (sack of 44 kilos), at the end of trading May 3, had reached P8.00. Unless the situation in the ACCFA is clarified quickly, prices can be expected to rise and the gains of the past quarter will have been lost. 1 Opening 2 Closing 3 Not available Imports By S. Schmelkes Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units: Commodities: Automotive (Total) Automobiles........ Auto Accessories. Auto Parts........... Bicycles................ Trucks.................. Truck Chassis .. . Truck Parts........ March, 1954 March, 1953 1,891,150 252,936 2,173 168,679 593,284 296,477 100,670 May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 197 Building Materials (Total)............................... Board, Fibre..................................................... Cement............................................................... Glass Window.................................................. Gypsum............................................................. Chemicals (Total)............................................... Caustic Soda..................................................... Explosives (Total)............................................... Firearms (Total).................................................. Ammunition....................................................... Hardware (Total)................................................ Household (Total).............................................. Machinery (Total).............................................. Metals (Total)....................................................... Petroleum Products (Total) Radios (Total)....................................................... Rubber Goods (Total)..................................... Beverages, Misc. Alcoholic............................... Foodstuffs, Total Kilos...................................... Foodstuffs, Fresh (Total)................................. Apples .................................................................. Oranges............................................................... Onions.................................................................. Potatoes.............................................................. Foodstuffs, Dry Packaged (Total)................ Foodstuffs, Canned (Total).............................. Sardines.............................................................. Milk, Evaporated............................................ Milk, Condensed............................................. Foodstuffs, Bulk (Total)................................... Rice ...................................................................... Wheat Flour..................................................... Foodstuffs, Preserved (Total)......................... 10,652,388 31,099 3,036,766 789,248 2,012,701 6,618,055 585,322 55,375 6,042 3,512 5,450,069 1,248,384 2,556,872 10,630,922 78,567,760 23,016 1,042,422 7,762,545 10,778 19,915 172,725 8,698,470 198,716 282 918 430 2,875,411 1,198,168 2,440,118 9,285,249 100,067,675 13,842 959,683 7,664 24,590,362 46,617 6,396 17,927 15 100 16,206 360,405 2,065 181,770 30,253 354,544 313,451 545 5,153 19,083,149 21,198 2,980 15,587 6 10 30,194 298,635 24,603 . 104,764 17,548 391,974 337,987 751 Bottling, Misc. (Total)...................................... 1,213,833 899,339 Cleansing and Laundry (Total)...................... 299,001 33,292 Entertainment Equipment (Total)............... 3,855 9,556 Livestock-bulbs-seeds (Total)......................... 29,949 16,019 Medical (Total).................................................... 531,991 657,473 Musical (Total).................................................... 28,211 24,723 Office Equipment (Total)................................. 101,626 54,423 Office Supplies (Total)....................................... 28,199 15,698 Paper (Total)....................................................... 5,242,078 3,570,553 Photographic (Total).......................................... 109,632 30,665 Raw Materials (Total)....................................... 916,171 1,332,695 Sporting Goods (Total)..................................... 15,776 20,417 Stationery (Total)............................................... 240,896 83,684 Tobacco (Total)................................................... 496,923 1,091,645 Chucheria (Total)................................................ 125,344 43,471 Clothing Apparel (Total)................................. 301,580 372,583 Cosmetics (Total)................................................ 53,055 36,972 Fabrics (Total)..................................................... 565,820 1,081,565 Jewelry (Total)..................................................... 98 14 Leather (Total).................................................... 200,037 254,675 Textiles (Total).................................................... 3,477,662 4,411,120 Twine (Total)....................................................... 106,722 48,802 Toys (Total)......................................................... 7,894 15,683 General Merchandise (Total).......................... 1,194,993 554,080 Non-Commercial Shipments (Total)............. 207,326 95,109 Advertising Materials, Etc. (Total)............... 7,651 22,169 INSURANCE FIRE- MARINE- CASUALTY FIDELITY and SURETY BONDS ATLAS ASSURANCE CO. LTD. TIIE EMPLOYERS’ LIABILITY CONTINENTAL INSURANCE CO. ASSURANCE CORPORATION Ltd. LAW UNION & ROCK INSURANCE CO., LTD. INSURANCE COMPANY OF NORTH AMERICA FILIPINAS COMPAMA DE SEGUROS E. E. ELSER, Inc. GENERAL AGENTS PASIG RIVER BODEGAS GENERAL BONDED WAREHOUSES ¥ SOUTHWESTERN SUGAR & MOLASSES CO. (FAR EAST), INC. MOLASSES BUYER 145 Muelle de Binondo Tel. 2-63-10 198 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 THE ROUTE OF THE BEARS Serving THE PHILIPPINES JAPAN HONGKONG U S. WEST COAST PORTS FAST - REGULAR - DEPENDABLE UNITED STATES LINES, INC. GENERAL AGENTS S33601 33602 33603 33604 PORT AREA MANILA ns, uno & co., inc. 75 WORTH ST., NEW YORK, N.Y. FOREMOST SUPPLIERS OF TEXTILE FABRICS THROUGHOUT THE WORLD for 86 years and FOREMOST SUPPLIERS OF TEXTILES TO THE PHILIPPINES FOR 51 YEARS. ♦ Food Products By C. G. Herdman Vice-President, Marsman & Company, Inc. DURING the month of April, arrivals of wheat flour were considerably larger than they have been during recent months, totalling well over 700,000 bags. April is one of the months of light consumption of flour, and it is estimated that the total consumption was not over 550,000. Arrivals for the month of May will also be heavier than recently and from all indications the Philippines will be slightly overstocked on flour in June. Flour importers are ordering forward as much flour in advance as possible, and May shipments, to arrive here before the end of June, will undoubtedly be very heavy if the bill now before Con gress to amend the present Exchange Act is passed in its present form. The bill referred to would provide for the ex tension of the exchange tax on practically all merchandise imported, at the old rate of 17%, and would become effec tive on July 1, 1954. Flour under the present Act is exempt from this tax. Flour arriving after July 1 thus would auto matically cost the baker at least 17% more than at present. *t*his new Exchange Act would also affect to the same A degree future importations of canned fish, which up to the present has been exempt from that tax. It is sincerely to be hoped that this bill will be amended before being enacted into law so that both wheat flour and canned fish will continue to be exempt from this very heavy tax. These two commodities together with canned milk, which remains free of the exchange tax, are the three imported commodities of prime importance to the people throughout the country. They form a very important part of the daily diet of all classes, and if this tax is imposed, living expenses, particularly of the lower wage group, will be materially increased. This tax cannot possibly be absorbed by dealers as both items are customarily handled on an extremely narrow margin of profit and any added taxes on these com modities must be passed on to the consumer. The Chamber of Commerce of the Philippines has addressed a memoran dum to the proper committees of the Congress urging that these two commodities be exempt from payment of the exchange tax in the proposed bill. We hope this recom mendation will be favorably considered and the bill so amended before final reading. *t<here have been quite considerable arrivals recently of A canned sardines from South Africa and fair quantities from Japan, as well as of canned California anchovies. The demand locally has been quite light, there being ample supplies of fresh fish available during this period. The prospective imposition of the exchange tax on canned fish, however, will probably result in considerable further im• FAUST STRIPED DENIMS • FLATTERY PRINTS • WALDORF PERCALES • SEINE TWINE & YARNS • AGUILA DENIMS • CARABELA CHAMBRAYS • COMMANDER BROADCLOTH • COTTON & RAYON POUND-GOODS ------------------------------MANILA OFFICE: 304 NUEVA STREET CORNER DASMARlftAS MANILA PHONE 3-99-71 Cable Address “NEHESCO” MOTOR SERVICE CO., 11. AUTOMOTIVE PARTS • ACCESSORIES GARAGE ft SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 199 portations during May and June, in spite of the light demand, so as to save on the tax. Stocks of canned meats of all varieties are ample, although arrivals during the last month have been less than normal. The quantities of fresh frozen meats from Aus tralia and South America arriving have been much larger than usual, extra allocations of exchange having been authorized for imported fresh meats to take the place of carabao meat generally sold in the local markets, the killing of carabao for food purposes having been banned by pre sidential decree. Importations of canned milk particularly of unsweet ened evaporated and non-fat solids have been in very good quantity but are still insufficient to fill local demand, and it would appear that there will be an actual shortage in this market by June or July unless additional exchange alloca tions are authorized permitting increased importation. Nearly all importers have already exhausted their exchange allocation for this very important commodity for the entire semester and will be unable to bring forward further sup plies. This can only result in an extreme shortage in the near future. Local fresh fruits and vegetables are in very good supply at present. Arrivals of imported fresh fruits have been comparatively light but ample for local demands. Imported canned fruits and vegetables are on the short side. Their importation under present rules is very re stricted and supplies will undoubtedly be even smaller in the future than at present. Textiles By A. Mahgollks Acting General Manager Neuss, Hesslein Co., Inc. APRIL has been a quiet trading month in textiles due to the market having closed during Holy Week, and buyers keeping away from Manila. Reports of a general cash shortage among the consumers in the provinces tend to discourage any improvement in trading conditions for the time being. The New York market has remained fairly steady in spot cotton and cotton goods, but there has been a notice able decline in prices of goods made from synthetic fibers, particularly goods in second hands. Several of the largest rayon producers in the United States have curtailed pro duction to offset this recession, but since the closing down of several mills for a week or so, prices have risen somewhat. Some cotton mills have also curtailed production, but to a much lesser extent, in order not to pile up inventories, but the outlook for cotton goods looms more promising with the expected, and overdue, improvement in domestic demand. Arrivals from the United States totalled 17,558 pack ages; 8,503 packages were cotton piece goods; 2,635, rayon MANILA MACHINERY & SUPPLY CO., INC. 233 David & 675 Daemariiias Sts. Tcls. 3-89-93—3-81-76 P. O. Box 607 MANILA “SERVICE STARTS WITH THE SALE” REPRESENTING (Partial List) • BRIGGS-STR VITON—GASOLINE ENGINES • A. P. GREEN REFRACTORY PRODUCTS • DELTA—WOODWORKING MACHINERY • MSA—MINE SAFETY EQUIPMENTS • JEFFREY—CONVEYING EQUIPMENTS • ENTERPRISE—DIESEL ENGINES • KERMATH—MARINE ENGINES • JOY—MINING MACHINERY • HERCULES—POWER UNITS • TAYLOR—THERMOMETERS • GALION—ROAD ROLLERS • WA LWORT11—VA LV ES • TOLEDO—SCALES • DEMING—PUMPS MECHANICAL SUPPLIES — MACHINE TOOLS where impressions must be extra-vivid, clear-cut . . . I THE ANSWER IS — has always been — | Letterpress! HALL, PICORNELL, ORTKJAS & CO. INVESTMENT BROKERS, DEALERS & UNDERWRITERS MEMBERS 201 AYALA BLDG. MANILA STOCK EXCHANGE MANILA AND letterpress where fine letterpress printing has been a tradition for 55 years — McCullough PRINTING CO. (A DIVISION OF PHILIPPINE EDUCATION CO.) 1104 Castillejos, Manila Telephone 3-22-51 200 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 ★ Lizin sTEvmum; COMPANY, IK. Manila ★ Caterpillar Registered | Trademark DOES ITS SHARE! DIESEL ENGINES • TRACTORS MOTOR GRADERS ■ EARTHMOVING EQUIPMENT Staunchly dependable, yellow - painted CATERPILLAR Machines do a full share ... in agriculture, logging, mining, road-building! All over the Islands, CATERPILLAR Machines set standards of achievement ... so as to hasten progress, make possible prosperity and give tangible substance to the inspiration of new leadership. KOPPEL (PHILIPPINES), INC. Philippine Representatives for Pressed Steel Car Co., Inc. BOSTON & 23rd Sts., PORT AREA, MANILA Tel.3-37-53 Branches: BACOLOD • ILOILO • CEBU • DAVAO • ZAMBOANGA DADIANGAS, COTABATO • CAGAYAN DE ORO CITY Dealers at: San Fernando, Pamp., Cabanatuan City, Tuguegarao, Cag. piece goods; 2013, cotton remnants; 1036, rayon remnants; and 2458, yarns. Arrivals from other countries total 3732 packages, of which 2126 came from Japan, consisting of 1371, rayon piece goods; 637, cotton piece goods; and 138, miscellaneous. From Europe, 1201 packages were received, mostly threads and yarns; from China, 308 packages, mostly cotton piece goods and knitted goods; and from India, 97 packages of hessian cloth and bags. 't'he total arrivals from all sources are considerably A less than last month. The volume of forward bookings has also decreased considerably over the last few weeks due to the non-availability of import licenses, and unless some additional allocations are granted before the new licensing period, beginning next July, we face decreased arrivals for the next few months. speculation has been current regarding the future functioning of the import-license allocations. There are rumors that the future issue of import quotas will be entrusted to another Government agency or a new Control Office, but it seems likely that no changes will take effect for the next allocation period from July to December. Legislation, Executive Orders, and Court Decisions By Robert J and a Ross, Selph, Carrascoso & Janda THERE have been no Supreme Court decisions of particular interest to the business community during the month. The Court of First Instance of Manila in the case of Lim Hu vs. Central Bank, et al., (Civil Case No. 21509), however, handed down a decision holding that the Central Bank was without authority under the Central Bank Act to prohibit or license the importation of goods into the Philippines by importers who did not request the Bank to grant them foreign exchange with which to pay for these purchases. The decision, while probably correct legally, would leave a hole in the screen of controls the Central Bank has placed over the entire Philippine eco nomy. It is doubtful that the administrative authorities concerned with imports will accept the decision as a basis for action until it has been affirmed, modified, or reversed by the Supreme Court which will probably not be for a year or so, by which time the Philippine Congress may well have legislated on the subject. No important legislation has been actually enacted by Congress during the past month and most important bills are still in the committee stage in one or both Houses. Philippine Safety Council By Frank S. Tenny Founder & Executive Director THE Philippine Safety Council’s “Award of Merit” for the year 1953 was voted to 6 industrial firms recently. These awards, given since 1947, are generally May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 201 based on Excellence in Safety Matters and Contribution to the National Safety Movement. Specific citations follow: Philippine Manufacturing Company: For effec tive company-wide safety program resulting in low accident rate. San Miguel Brewery: For emphatic safety activities in nation-wide branches and prompt response to safety recommendations. Pangasinan Transportation Company: For the sixth consecutive year; operating its bus fleet with an average of but one accident per 1,000,000 kilometers travel ed, in spite of prevailing traffic conditions. Philippine Match Company: For excellent com pany safety and fire-prevention program. E. R. Squibb & Sons: For outstanding safety and fire-prevention facilities built into its new modern plant. Manila Electric Company: For effective driver training program, resulting in several drivers winning 5year, 4-year, and 3-year safety badges. Other Merit Awards were given to Mayor Arsenio H. Lacson, Col. Agustin G. Gabriel, Dr. Basilio J. Valdes, and the Manila Rotary Club, and Subic Bay Post No. 4, American Legion. The Council announces with the greatest pleasure that an “Award of Merit” has been awarded to Mr. A. V. H. Hartendorp, Editor and Manager of the American Chamber of Commerce Journal, for his cooperation in publicizing the progress of the national safety movement for several years. The annual election of officers and directors of the Council was held recently. Those chosen are: President: Manuel M. Aycardo, Jr., Engineer of Soriano y Cia; Vice President: George H. Evans of the Manila Machinery and Supply Co.; Secretary: Mateo C. Cornelio of the Luzon Brokerage Co.;Treasurer: Hyman Levine of the Bachrach Motor Co.; Executive Director: Frank S. Tenny. In ad dition to the foregoing, members of the Board of Directors are City Engineer Alejo Aquino, Henry A. Brimo, William A. Chittick, Aurelio B. Aquino, James F. Dunwiddie, and Steven S. Rivers. Recent developments at the Motor Vehicles Office are expected to make the Council’s work much more effective, and to be of great assistance to the national safety move ment. Further, the Manila Mayor’s Traffic Committee is at work and the National Traffic Commission is expected to be reactivated soon. The Fire Prevention Board is about to publish and distribute a regular bulletin on fire-protection methods to industrial firms and government offices. Agitation for the creation of a position as National Fire Marshal has again been heard. If this is done, Manila Fire Chief Cipriano Cruz is the most likely choice. The Council has vigorously urged its industrial mem bers to compete in the Manila Rotary Club’s Industrial Safety Contest. The new Secretary of Labor, Eleuterio Adevoso, has come out strongly in favor of accident-pre vention efforts in industrial plants. Next month’s column will reveal the Council’s pro gram and projects for the coming year. AGENTS TELEPHONES BROKERS 3-34-20 CHARTERERS 3-34-29 American Steamship Agencies, Inc. Manila and Tokyo Cable Address: 212 Myers Bldg. “AMERSHIP” Port Area Manila COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. HEMP AND COPRA EXPORTERS STEAMSHIP AGENTS ¥ Singer Building Port Area, Manila, P. I. ¥ BRANCHES. Davao • Tacloban • Cebu • Tabaco NEW AND... -T0SEE r —TO TOUCH —TO OPERATE Modern in design, the MARCHANT is the only American calculator with dials for checking key board entries. Its low-luster finish eliminates reflections causing eye fatigue. With key action twice as light as before, its keys and controls respond to the slightest touch. The MARCHANT is unmatched in accuracy control, simplicity, speed, and silence. MARCHANT CALCULATOR ERLANGER & GALINGER, INC. 123 T. Pinpin off Escolta Tel. 3-21-61 202 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 FOR BETTER SERVICE— Call 3-29-05 ALLIED BIIOKKIMGE CORPORATION Marsmau Building Port Area Individual attention and competent supervision given to your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING CHRYSLER AIRTEMI' PAIWO AIR MRITIOn SALES aid SERVICE W.LtHIWK&COJK. 31 Romero Salas, Manila Tel. 5-30-33 COST OF LIVING PRICE INDEX FOR WAGE EARNERS’ FAMILIES IN MANILA, BY YEAR AND MONTH, 1935-1954 (1941 = 100) Bureau of the Census and Statistics Year and Month All (100) 1935 ................... 1936 ................... 1937 ................... 1938 ................... 1939 ................... 1940 ................... 1941 ................... 1945 ................... 1946 ................... 1947 ................... 1948 ................... 1949 ................... Food (63.43) House Rent (11.96) Cloth ing (2.04) Fuel, Light Misceland Water laneoua (7.73) (14.84) ing Power 89.7 87.4 88.8 92.1 93.2 97.3 100.0 691.5 521.7 387.2 364.2 343.7 89.7 88.3 88.3 92.1 94.8 98.9 100.0 834.3 649.4 415.4 386.1 357.9 96.4 96.6 96.4 96.8 97.7 98.9 100.0 236.4 236.4 453.9 453.9 453.9 89.7 88.4 88.2 92.2 94.8 99.0 100.0 1448.4 649.7 256.8 208.4 198.4 85.1 77.5 85.2 88.8 84.3 89.9 100.0 379.1 348.2 310.0 288.9 272.9 90.2 87.7 89.5 92.5 92.9 96.7 100.0 650.9 383.3 272.2 259.1 251.1 1.1148 1.1442 1.1261 1.0858 1.0730 1.0277 1.0000 0.1446 0.1917 0.2583 0.2746 0.2910 1950............. 332.9 333.7 453.9 270.7 252.0 282.8 0.3004 January.............. February............ March................. April.................... May..................... June..................... July...................... August................ September......... October............... November.......... December........... 332.3 335.3 336.6 329.1 317.4 319.3 326.3 327.3 334.2 345.5 346.7 344.9 336.8 340.2 341.4 328.6 308.6 310.9 322.4 325.9 335.0 351.1 353.2 350.5 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 238.0 233.3 236.7 237.7 244.7 243.5 252.6 258.7 317.4 337.3 322.8 325.2 253.1 257.8 257.8 252.9 249.7 249.7 249.7 251.1 252.5 249.7 249.7 249.7 269.1 273.0 276.6 283.1 290.4 293.5 290.4 280.2 279.4 285.4 286.6 285.7 0.3009 0.2982 0.2971 0.3039 0.3151 0.3132 0.3065 0.3055 0.2992 0.2894 0.2884 0.2899 1951............. 352.6 361.5 453.9 365.3 248.0 285.7 0.2836 January.............. February............ March................. May..................... June..................... July...................... August................ September......... October............... November.......... December........... 347.9 351.7 346.4 355.3 359.2 360.5 359.0 357.8 356.1 351.0 344.1 341.9 355.0 359.8 349.3 362.6 367.0 372.2 370.1 371.4 369.0 361.1 351.1 348.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 453.9 331.5 342.8 379.4 398.6 410.4 399.5 382.0 354.0 356.4 350.4 343.8 335.2 249.7 249.7 248.8 247.5 247.5 247.5 247.5 247.5 247.5 247.5 247.5 247.5 285.6 289.0 293.6 294.6 300.6 288.5 290.2 280.0 279.0 279.0 275.8 272.1 0.2874 0.2843 0.2887 0.2815 0.2784 0.2774 0.2786 0.2795 0.2808 0.2845 0.2906 0.2925 1952............. 339.4 347.4 453.9 295.9 244.1 268.4 0.2946 January......... .. 342.8 350.9 453.9 330.8 247.5 269.7 0.2917 February. . . . .. 341.2 349.8 453.9 311.2 243.4 268.5 0.2931 March............. .. 337.9 345.1 453.9 301.1 243.4 268.1 0.2959 April............... .. 335.9 342.7 453.9 300.7 243.4 264.6 0.2977 May................ .. 335.1 341.8 453.9 293.2 243.4 264.4 0.2984 June................ .. 338.1 346.3 453.9 290.2 243.4 265.5 0.2958 July................. .. 340.4 349.5 453.9 286.6 243.4 268.1 0.2938 August........... .. 340.7 349.4 453.9 289.1 243.4 269.9 0.2935 September. . . .. 341.1 350.0 453.9 287.7 243.4 270.7 0.2932 October.......... .. 337.6 344.6 453.9 289.3 243.4 269.4 0.2962 November.. . .. 340.5 349.3 453.9 286.2 243.4 269.8 0.2937 December... . .. 340.9 348.9 453.9 284.4 247.5 272.3 0.2933 NOTE: Miscellaneoua was reviled from 1950 to May 1953 and clothing from February 1953 to May 1953. 1953.... ... 318.2 314.3 453.9 280.1 243.7 269.5 0.3143 January.... ... 337.3 343.2 453.9 283.7 247.4 272.4 0.2965 February. ... . . 323.0 321.1 453.9 281.5 243.4 273.0 0.3096 March........... ... 318.6 314.3 453.9 281.5 243.4 272.4 0.3139 April............. ... 317.6 312.8 453.9 281.1 243.4 272.2 0.3149 May.............. .. 314.3 307.8 453.9 280.9 243.4 271.1 0.3182 June.............. ... 313.1 306.0 453.9 277.8 243.4 271.1 0.3194 July............... ... 316.0 311.0 453.0 277.8 243.4 269.5 0.3165 August......... ... 316.1 311.9 453.9 277.8 243.4 266.4 0.3164 September. . ... 315.8 311.6 453.9 277.8 243.4 265.6 0.3167 October........ ... 315.3 310.6 453.9 279.0 243.4 266.4 0.3172 November. . .. 315.2 310.1 453.9 280.9 243.4 267.0 0.3173 December.. ... 315.5 310.7 453.9 280.9 243.4 267.0 0.3170 1954............. January.... ... 311.7 304.7 453.9 279.3 243.4 267.0 0.3208 February ....... 301.5 290.0 453.9 278.3 232.1 267.0 0.3317 March........... .. 301.1 289.5 453.9 274.9 232.1 267.0 0.3321 April.............. .. 302 9 292.5 453.9 272.2 232.1 . 266.8 0.3301 May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 203 “LET YOUR HAIR DOWN” WE often receive letters of commendation from readers, but not so often do they come from members of the Cham ber Board of Directors, this being natural enough as some, at least, of the members of the Board themselves play a part in making the Journal what it is; in other words, to an extent at least, they would be praising themselves. Here, however, addressed to the editor, is a letter from Mr. Paul Wood, head of the International Harvester Company of Philippines and a mem ber of the Board: “I wish to offer you my congratulations on the excellent April issue of the Journal. Your comments on 'The Randall Report and Trade Agreement Revision’ are certainly to the point. I found a great deal of interest in several other articles and expect that you will receive congratulations on this issue from others besides me.” editor was much gratified by a A reference to him and to the Journal in connection with the comment of columnist Ramon Cristobal, of the Philippines Herald, on an article of his published in several of the Manila dailies on the atomic bomb as strengthening the possibilities of forming a world government. Mr. Cristobal referred to him as one “who has studied Philippine affairs with a scholarly objectivity these many decades”, and as “today editor of the American Chamber of Com merce Journal, an honored position which was one held by another friend of the Filipinos, Walter Robb, Sr., who is now in retirement in Cali fornia.” “It makes me truly happy to think,” said the editor, “that despite the criticism I must raise at times, this able Filipino newspaperman re cognizes me as a friend of the Filipino people,—which, indeed, I am, and that he considers the editorship of the Journal ‘an honored position’. The position,” continued the editor with a grimace, “could so easily be described as one for a ‘foreign ca pitalist hireling’ that it makes me shudder, although it would be ca lumny. But that this has never been said, surely, is a credit to the Chamber as well as to my predecessor, Mr. Robb, and myself.” qpHE following letter, by way of comment on the article, “Philippine Languages”, in the March issue of the Journal, was received from Mr. Leopoldo A. De la Cruz (as the letter is a long one, it is quoted only in part): "I enjoyed reading your March, 1954, issue of the Journal, as I always do. We have a regular copy of your Journal in our library in Mapa High School, Manila, where I am a faculty member.. . The article, ‘Philippine Languages’, took me aback. .. as you missed something important. The article stated:'.. .in western Visayan dialect, Ilongo or Hiligaynon, for the most part is spoken by the people in that contiguous island area including Panay...’ Let me UNDERWOOD SUNDSTRAND for faster, easier-to-check accounting at less cost! THE UNIVERSAL ACCOUNTING MACHINE THAT SPEEDS THE WORLD'S BUSINESS FBEE demonstrationno obligation! Exclusive Distributors In The Philippines SMITH, BELL & CO., LTD. OFFICE EQUIPMENT DEPARTMENT Showroom: Singson Bldg., Plaza Moraga, Manila Tel. 2-51-51 tell you there is a portion of Panay Island, the northwestern coastal towns from the tip of Malay to Altavas, hinterward, where the dialect spoken is called Aklan.. . or Afcean dialect. Yes, even Dr. Ernest Frei, in his speech delivered before the Philippine Bi bliographic Society, August 19, 1953 (pub lished in the Philippine Library Jour nal, 1954, Vol. Ill, Nos. 1-2, January-Feb ruary), never mentioned this [Aklan dia lect. .. But this dialect is spoken by almost 250,000 inhabitants of the Aklan towns... It is very different from Hiligaynon...” Aklan, of course, is a recognized dialect of the Visayan, and failure to mention it was possibly an over sight on the part of the author of the article. However, if the figure given by Mr. De la Cruz is accepted (250,000 Aklan-speaking people), this HERE'S WHY Underwood Sundstrand eliminates time-consum ing, separate payroll post ings! Underwood Sundstrand eliminates costly copying errors! Underwood Sundstrand gives you an easy-to-check, faster, more accurate ac counting system! Underwood Sundstrand cuts your overhead . . . pays for itself in valuable time and money savings! 204 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 compares to 4,840,000 speaking CebuVisayan (spoken in the central Visayas and northern and eastern Min danao) ; 2,436,000 speaking Hiligaynon (spoken in most of Panay, western Negros, and the Romblon group); and 1,226,000 speaking Waraywaray (spoken in Samar and eastern Leyte). It is to be pointed out that the article was not so much a “scientific” article as it was the result of a study of Philippine languages with a view to determining what languages are best used for “information opera tions”, newspaper advertising, radio broadcasting, etc.,—hence its suit ability for publication in a periodical such as the Journal. An Unbeatable Combination... W©^THIINCTON'S PORTABLE AIR COMPRESSORS Famous Worthington Blue Brute Air Compressors, teamed with the world's most modern line of tools, give you an unbeatable combin ation. No matter what the job—drilling, de molition, ditching, tamping — Worthington's matched compressors and tools will set production records for you—and keep your operation costs amazingly low. Consult us regarding the size and type of Worthington air compressors and tools you need. Exclusive Philippine Distributors THE EDWARD J. NELL CO. Anda corner Arzoblspo & Sta. Lucia, Intramuros, Manila P. O. Box 612 Tel. 3-21-21 Anent this same article, a letter was received from Father Rudolf Rahmann, S.V.D., Dean of the Graduate School, University of San Carlos, Cebu City. Father Rahmann wrote: “In the March issue cf the American Chamber of Commerce Journal (XXX, 3) you published an article on ‘Philippine Languages’. I am sure that Father Fritz Bomemann, the editor of Anthropos would like very much to have a copy of the article. Could you kindly send him one? Father Bomemann’s address is: Anthropos Insti tute, Posieux (Fribourg), Switzerland. Thank ing you in advance and wishing you happy Easter, I remain, dear Mr. Hartendorp, Devotedly yours, etc.” Of course, we immediately sent Father Bomemann, editor of Anthropos, one of the most famous anthropological and ethnological jour nals in the world, several copies of the March Journal. Pouring the month, the editor reU ceived a letter from an old friend, and a friend of many of our Chamber members and Journal readers, Stan ton Youngberg, in the old days Director of the Bureau of Agricul ture. He wrote as follows: “‘Father’ Heath—whom you no doubt remember as having been associated with Meralco for many years—recently showed me a copy of the February, 1954, number of the Journal, which some Manila friend of his had sent to him. “I was tremendously interested in the articles on the barrios and especially in your splendid editorial on that subject, and with which I fully agree. It is eminently sound and constructive. In my early years in the Islands, in the fight against rinderpest, I necessarily had to spend a great deal of time in the barrios and in many out-of-the-way municipalities. I can truthfully say that life was not too unpleasant in those places and the people never had the attitude of a downtrodden segment of the population. There were always fiestas, marriages, and baptisms; and a baile could always be pro moted without too much difficulty. Every one concerned succeeded splendidly in throw ing dull care away. "I read point 22 of the McMillan-Rivera Report with interest and a suppressed chuckle. You and I know whose hackles will rise if any attempt is ever made to implement that recommendation. Not that I disagree; but it hasn’t a chance of getting to first base. •DUMP YOUR TRAVEL WORRIES OVERBOARD! for carefree travel at its best... consult “Your travel agent in the Orient" • TRAVEL COUNSELORS • BOOKING AGENTS/or qM airliner 217 Dasmarlnas, Manila • Tel. 2-69-56 May, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 205 [Point 22, referred to by Dr. Youngberg, reads: “Consider techniques of controlling population growth.”] “Mrs. Youngberg and I are living on our farm 15 miles from the State House in Co lumbus, Ohio. We are not in good health and it is fortunate that we have a very good couple to operate the farm. We often speak of the good old days in the Islands with a great deal of nostalgia. We lived there for so many years that it seems more like home than does Ohio. We do not say that out loud around here, for the people would think that we are trying to ‘high-hat’ them. “‘Father’ Heath and Selden O’Brien and family live in Cclumbus and we visit back and forth quite frequently. Those visits are very enjoyable as we all speak the same language. We are glad that we live in a place where there are at least a few Philip pine ‘Old Timers’. “I am taking the liberty of enclosing a copy of one of the Ohio State publications which contains an article concerning ‘su servidor’. My election to be the recipient of this Honorary Degree was the most com plete and unexpected surprise of my life. At times I still have to pinch myself to realize that it really happened. In my wildest dreams I had never imagined for myself any honor of that kind. It is needless to say that the Youngberg family is very happy and proud, but our pride is kept within due bounds and our humility has not suffered. “Congratulations on your work in making the Journal a splendid publication. Keep up the good work. “With kindest personal regards and best wishes for your continued success, I am, very sincerely, etc.” The publication Dr. Youngberg refers to contains a picture showing him as receiving the honorary degree of Doctor of Science from Ohio State University last December, and gives the following facts about him in con nection therewith: “Dr. Youngberg, who was honored with the degree of doctor of science, has had a long and unusual career, marked with internment by the Japanese during World War II, suc cess in eradicating a devastating animal disease from the Philippine Islands, and work in resettling Central European political refugees in the Islands. "A native of Lake Park, Minn., Dr. Young berg now resides near Greve City, O. In 1907, he began more than a quarter of a century of service to the Philippine Islands, then under the guardianship of the United States, when he was appointed a veterinarian in the Philippine Civil Service. “After serving first as supervising and then as chief veterinarian of the Islands, he <^> ALLIS-CHALMERS Basic Machinery for the World’s Principal Industries MOTORS for Every Type of Application GENEROUS design, extra-strong parts, precision workmanship and skillful application engineering of ALLIS-CHALMERS motors mean dependable power and lower motor costs. ALLIS-CHALMERS builds an extensive line of motors from 1 bp up. They include squirrel cage, wound rotor, direct current, and synchronous motors in various designs— standard protected, splash-proof, totally enclosed fan-cooled, and explosion-proof. Also vertical and flange-mounted motors, gear motors and other types for special applications. ★TEXROPE is an ALLIS-CIIALMERS Trademark. Exclusive Distributors: THE EARNSHAWS DOCKS & HONOLULU IRON WORKS .Main Office: Cor. TACOMA & 2nd STS., PORT AREA, MANILA • TEL. 3-35-41 Branch Offices at: BACOLOD CITY • CEBU CITY P. 0. BOX 282 GUNOURir M or Inter WOOD AND BAMBOO ROLLING SHADES LER COMFORT with COLORFUL DECORATIO CADWALLADER PACIFIC COMPANY MANILA • CEBU • ILOILO • BACOLOD • DAVAO, i EXCTT1HG £ COLORS. 206 AMERICAN CHAMBER OF COMMERCE JOURNAL May, 1954 became director of the Philippine Bureau of Agriculture and later of the Bureau of Animal Husbandry until his retirement, in 1934, from Philippine service. “He returned to Ohio for five years, but went back to the Philippines in 1939 in con nection with resettling Central European political refugees in the Islands. While negotiating with the Philippine government for their admission, the Japanese invaded the Islands and Dr. Youngberg and his wife, the former Hazel Coberly, an Ohio State graduate of 1908, were interned for more than three years by the Japanese.” Dr. Youngberg’s surprise at re ceiving the honorary degree from Ohio State University is a credit to his humility, but he certainly earned it and it is good to think that he finally was given this recognition even if this was in the United States and not in the Philippines where he earned the distinction—as many an other American Old Timer did whose work has not been similarly rewarded. It appears rarely to occur to our Philippine academic authorities to thus honor anyone not a politician. 't'he following letter was received by the editor from Col. Frank Hodsoil, of Warner, Barnes & Co., Ltd., concerning the short editorial in last month’s issue of the Journal on the transfer of the Hubbell Monu ment: “With reference to the mention in your Journal’s April issue of the transfer to the grounds of the American Embassy of the Hubbell monument, my colleagues and I would very much like to obtain further in formation about- the Hubbell family. “We know that Peele, Hubbell 8s Com pany was taken over as a going concern by Warner, Blodgett 8s Company in 1887, be cause we have copies of the two firms’ Fort nightly Circulars, which commenced with one issued by Peele, Hubbell 8s Company on August 31, 1848. The name was changed to Warner, Blodgett 8s Company on March 22, 1887, and to Warner, Barnes 8s Company on July 20, 1896. “Because the first of the Peele, Hubbell 86 Company Circulars is dated in August, 1848, it was thought the company was formed at that time, although we have no documen tary evidence to substantiate that belief. In view of the contents of Chapter XI of ‘Commercial Progress in the Philippine Islands’ (reprinted by your Chamber in April, 1925), I feel quite certain that George W. Hubbell and his father, Capt. Ezekiel Hubbell, were both connected with Peele, Hubbell 8s Company. However, as the former died 17 years before the issuance of the first P. H. Circular in our possession and as his father would have been about 80 years old when the Circular was published, it seems reasonable to suppose that Peele, Hubbell 8s Company was in existence for some considerable time before 1848. “It might be possible to obtain information from old official records in Bridgeport, Con necticut, which would throw some light on the Hubbell family’s business activities, or lead to other sources of information regarding the members of two generations who came to this country. If you can inform me as to an effectual way of instituting such a search, I shall be very glad to see what can be done when I am next in New York, which will probably be during the coming two months. Yours sincerely, etc.” The editor replied as follows: “Thank you for your letter of April 28. A few days before I received it, Mr. John L. Manning called me up on the telephone to volunteer the information,—with respect to queries included in the same editorial which you saw, that as a former officer of the Elks Club some years ago, he had been approached by Mrs. Janet Walker about the matter of transferring the Hubbell monument and that, if he remembered right, she had shown him some correspondence with the trustees of the Hubbell Estate in Connecticut. Since Mr. Walker is out of the country and not due back here until August, I called up Mrs. Allen K. Hackett, who is a friend of Mrs. Walker’s and lives in her house, to ask whe ther she knew anything about those papers. Mrs. Hackett told me that she had a vague recollection that Mrs. Walker turned them over to Colonel Meader, formerly with the American Embassy here. I then called up Mr. Ralph R. Busick, who has taken Colonel Meader’s place, and he has started a search of the files with, as yet, no success. Of course, I shall see Mrs. Walker about the matter as soon as she returns and pass on to you what I may learn. However, if you are going to New York, it would probably not be difficult for any lawyer there to look up for you the trustees mentioned and you could then get into direct touch with theta. Very sincerely yours, etc.” EVERETT STEAMSHIP CORPORATION Owners-Brokers-Agents Manila 155 Juan Luna St., Tel. 2-79-31 General Agencies AMERICAN MAIL LINE To and From Portland Vancouver Japan Straits Seattle Tacoma Philippines Indonesia PACIFIC TRANSPORT LINES To and From California * JapaQ-Phllippinee BARBER-FERN-VILLE LINES To U.S. Atlantic Via Straits * Suez * Mediterranean FERN-VILLE FAR EAST LINES To and From North Atlantic Porta Gulf Porta-Philippinea Via Panama MESSAGERIES MARITIMES Europe and Mediterranean Porta EVERETT ORIENT LINE Between Philippines, China, Japan Korea, Straita, and India Porta EVERETT STAR LINE Between Japan, China. Straita, India, and Peraian Gulf Porta PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Ialanda UNITED STATES SALVAGE ASSOCIATION UNITAS OSLO THAI AIRWAYS To and From Bangkok, Singora, Singapore Hongkong, Taipch, Okinawa, and Japan One man s contribution to rural development. a true story by Governor Lazatin of Pampanga "Stories about neighbors and friends are always the most inter esting. Here's one about a man who is one of our Province’s most suc cessful and useful businessmen, Emeterio S. Morales. You’d like him. Terry is a sportsman who loves hunting and fishing. He has a wonderful family—eight children— and he was born right here in Pam panga forty-eight years ago. "He’s enthusiastic about orchards, and comes by his hobby honestly. You see,' he’s our International Harvester Dealer. Here in Pam panga the principal crops are sugar cane and" palay, and Terry has a lot to do with our farming industry. His sales and service of farm equip ment. trucks and busses help make our farms more productive, and aid in keeping a steady flow of produce and people to market areas. "Now Harvester has been here in the Philippines lor 50 years, and it’s a company with a prime interest in our farming problems. So Mo rales, through his company s ex perience—and his own—knows that the proper use of good farm ma chinery, and the efficient transport of farm products can mean the dif ference between a bare existence and prosperity for our Pampanga farmers. "In 1955 Morales went to work for International Harvester as a sales man. He soon found his life work —lor two years later, with Harvesler Company's help, he had his own dealership. It has meant a lot to Emeterio S. Morales, too, for his per centage of sales from 1949 to 1953 increased 185 per cent! "Were proud of our local busi nessmen. and we re especially proud of Emeterio S. Morales. He has en riched his community far more than he may know—through bis knowl edge of transportation, of farming and larm machinery so necessary io our prosperity in the province of Pampanga. ” Hon. Rafael Lazatin, Governor of Pampanya E. S. Morales Company, September 6, 191(9. This modest beginning was the INTERNATIONAL HARV ESTER dealership after the war destroyed the original building. This prosperous looking, modern build ing, erected by E. S. Morales in 1952, has a floor area of over 1(00 square meters devoted to INTERN ATION AL HARVESTER sales and service. E. S. Morales. INTERNATIONAL HARVESTER dealer, one of San Fer nando, Pampanga's most helpful and useful businessmen. The MOTOR that Industry Needs Round-frame motor with standard flange end shield Foot-mounted motor with standard face-type end shield Splashproof motor TRICLAD R E G. U.S. PAT. 0 F F. 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