The American Chamber of Commerce Journal Vol. XXX, No.10 October 1954

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal Vol. XXX, No.10 October 1954
Issue Date: Vol. XXX, No.10 October 1954
Year: 1954
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extracted text: Published monthly by the American Chamber of Commerce of the Philippines Elks Club Building, 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 and E. E. Selph, Vice-Presidents; A. H. Henderson, Treasurer; F. C. Bennett, S. W. G, Lehman, John Oppenheimer, F. H. Spengler; and Paul H. Wood. Stanley N. Fisher, Executive Vice-President; I. T. Salmo, Secretary Vol. XXX October, 1954 No. 10 Editorials— Contents Easy Solution to the "Rice Problem”......................................................................................................................................................................................... The Cadang-cadang Disease of the Coconut......................................................................................................................................................................... Total Banning of Certain Imports................................................................................................................................................................................................ Civil Defense and the Business Community................................................................................................. Frank S. Tenny.............................................. Legal .Obligations of Commercial and Industrial Establishments to Provide Medical and Dental Care (Table)................................................................................................................................................... Tabulated by Dwight Dill, M.D............. Income Tax Statistics, 1953 (Tables).............................................................................................................. Bureau of Internal Revenue......................... 371 372 372 375 376 376 The Business View— The Government............................................................................................................................................ Banking and Finance............................................................. .................................................. Manila Stock Market................................................................................................................................... Credit................................................................................................................................................................ Electric Power Production......................................................................................................................... Real Estate..................................................................................................................................................... Building Construction............................................................................................................. Port of Manila.................................................................... .......................................................................... Arrastre Service of Manila...................................................................................................... Ocean Shipping and Exports ........................................................... .................................... (Statement on Freight Rates on Lumber) Freight Car Loadings.................................................................................................................................. Mining............................................................................................................................................................. Lumber........................................................................................................................................ (Memorandum on the Proposed Revision of the Bell Act) Copra gpd Coconut Oil.............................................................................................................................. Desiccated Coconut.................................................................................................................. Sugar................................................................................................................................................................. Manila Hemp................................................................................................................................................. T obacco........................................................................................................................................ Rice.............................................................................................................................................. Imports............................................................................................................................................................ Food Products............................................................................................................................ Textiles........................................................................................................................................ Legislation, Executive Orders, Court Decisions.................................................................................. Philippine Safety Council.......................................................................................................................... Cost of Living Price Index (1935-1953)........................................................................................................ The “Let Your Hair Down” Column............................................................................................................. From Official Sources..................................... M. D. Arnold.................................................. J. J. Ortigas.................................................... D. Burn............................................................. J. F. Cotton..................................................... A. Varias........................................................... J. J. Carlos............................................. W. S. Hurst...................................................... F. Delgado....................................................... E. H. Bosch...................................................... 377 379 380 380 381 381 382 382 382 382 J. B. Li bun ao................................................... 383 H. A. Brimo...................................................... 384 P. de Ocampo.................................................... 384 W. S. Rice, Jr.................................................. 388 H. R. Hick........................................................ 389 J. H. d’Authreau........................................... 390 R. Duncan........................................................ 392 R. P. Satrustegui.......................................... 392 C. O. Houston, Jr........................................... 394 S. ScHMELKES.................................................... 397 C. G. Herdman............................................... 398 A. Margollfs.................................................. 398 E. E. Selph....................................................... 399 F. S. Tenny...................................................... 400 Bureau of the Census and Statistics........... 402 ................................................................................ 403 50 CENTAVOS THE COPY Lumber mill cuts costs 37% by using a higher-priced oil! *—Sta. Clara Lumber Co. Isabela, Basilan City Using a cheaper lubricating oil does not necessarily mean that you will save money. Too often cheaper products lack the longer-lasting qua lily and effectiveness of better oils. The important thing is to use the right oil for the right purpose. For instance, take the case of Sta. Clara Lumber Company at Isabela, Basilan City. By changing to Gargoyle Cylinder Oil 600-W from an oil that was priced approximately 26% lower, for the cylin der lubrication of their 225 HP, 92 rpm, steam engine, the Sta. Clara Lumber Mill was able to decrease the cylinder feed from 1 gallon per 8-hour day to half a gallon. In short, the higher priced oil lasted twice as long. On computation, they discovered the change to Gargoyle Cylinder Oil 600-W, meant a savings of 37% for that operation. STANDARD-VACUUM • This actual case history points up how much you may profit by using Correct Lubrication, Standard-Vacuum's top quality products and the world’s greatest lubrication knowl edge and engineering service. Start cutting your overhead —call in your Standard-Vacuum representative. Editorials “ ... to promote the general welfare” Our thinking on economic questions (in the United States as well as in the Philippines) has become so vitiated by the long years of governmental Easy Solution to interference with economic processes, “Rice Problem” the imposition of bureaucratic con trols, the creation of government corporations with monopolistic powers, etc., that for anyone to propose the easy solution to the Philippines' rice problem of simply ending government interference with the production, distribution, and sale of rice, and leaving these functions to the rice growers, the importers, the dealers, and the consumers themselves, as is normal under a free enterprise economy, may come as something of a shock. Early in 1936, President Quezon, worried by the rising price of rice, created by executive order the Rice Commission “for the purpose of studying and making recommendations on ways and means to solve the present crisis and to insure a permanent supply of rice at reasonable prices”. The price of rice had gone up from around P4.00 a cavan in 1934 to around P7.00. The price had risen mainly because of unseasonable droughts and floods, pests, rural unrest, etc., but the Commission recommended, toward arriving at a solution, the organization of a national rice and com corporation as a subsidiary of the National Development Company. The corporation was duly organized in April, 1936. Since that time, the difficulties and troubles of the rice industry have never ceased. Changes in the organization of the NARIC have been made a number of times. During the Japanese occupation, it passed through several transformations and was used by the invaders to rob the people of their rice. After the Liberation, in 1945, it was reactivated; in 1947 it was made an independent government corporation; in 1950, it was merged with the PRISCO (Price Stabilization Corporation); in 1951, it was reactivated as an independent government corporation; and in 1954 it was reorganized by President Magsaysay. The NARIC as first established was designed to aid in the rehabilitation and stabilization of the rice and corn industry— “through the maintenance of stable prices..., the prevention of specu lation in the marketing thereof and the exploitation of the consumers, the financing of the producers of the raw product as well as of other activities of the industry needing such assistance, and the study and execution of such measures as may be necessary and convenient to protect the interests of both and producers and consumers.” However, as Mr. C. H. Houston stated in his column on “Rice” in this Journal (August issue), the NARIC activities— “have been largely confined to importing foreign stocks and it apparently believes that this method is the only way of attaining its objectives and fulfilling its purposes.” From the first, the history of this organization has been marked by inefficiency, wastage, corruption, scandal, and huge losses. And rice prices have continued to rise. Today the price stands at around P20.00-P22.00 a cavan. Through his reorganization of the NARIC and through other measures, President Magsaysay is making heroic efforts to bring down the price of rice to the consumers, and he has recently ordered the Corporation to import rice to that end,—through private importers, but, still, for the Government’s account, with Government money. The President is also attempting to assist the rice producers through the Agricultural Credit and Cooperative Financing Administration (ACCFA) and many other governmental agencies. But, as Mr. Houston stated in the July issue of this Journal: “It would seem necessary to bring some order out of the rather chaotic picture presented by the multiplicity of agencies charged with attention to this and other economic problems. This observer would suggest six steps: “(1) Amalgamation of all entities charged with attention to the rice industry in one body; “(2) Necessarily, the abolition of the NARIC, and the assumption of its duties by the ACCFA, Which would then be incorporated within the body provided in (1); “(3) The establishment of, say, 10 regional distributing centers,— N.E. Luzon, N.W. Luzon, Central Luzon, Manila, Bicol region, E. Visayas, W. Visayas, and one each in Zamboanga (or Lanao), Cotabato, and Misamis (these latter to be broken down as need arises); “(4) The creation of a division within the Bureau of Commerce whose purpose would be the gathering of as accurate statistics as possible about the rice industry which would enable it to evaluate and ultimately predict futures, Ayith full legal authority to collect such statistics; “(5) The creation of standards of pricing for basic regions or areas within the country; “(6) The implementation of the recommendations of the Bureau of Plant Industry for the development of the rice industry.” In the last month’s Journal, Mr. Houston added one other recommendation: “(7) The acceleration even beyond the goals already established of the pump irrigation program of PHILCUSA.” The writer of this editorial would go somewhat further than Mr. Houston. He would suggest that in addition to the continuation of all the measures being carried out to assist the producers through government encouragement of cooperative organizations, warehousing, loans and credits, the irrigation program, fertilizer supply, agricultural extension work, pest control, etc., the local trade in rice and the importation of rice be thrown open to private dis tributors and importers using their own credit and capital, free of any kind of price control, and, in the matter of imports, free of both the exchange tax and customs duties, at least for some period of time. This simple and direct return to the procedures of free enterprise is the sovereign cure for the frustrations the Government has suffered since the first organization of the NARIC. Competition will take care of the price. Attention is called to a short but comprehensive article on the cadang-cadang disease of the coconut palm by G. C. Kent, visiting professor of plant The Cadang-cadang pathology from Cornell University, Disease of the in the Philippine Agriculturist Coconut (Vol. 37, Nos. 5-6) published by the College of Agriculture and Central Experiment Station, University of the Philippines. Professor Kent summarizes the earlier writings on the subject (Calica, Bigornia, Celino, De Leon, Fajardo, Han sen, Ocfemia, and Reinking) and adds some observations of his own, but the cause of this serious disease, not known elsewhere in the world, first reported in Nabua, Camarines Sur, as early as 1914, and now serious in all provinces of the area, still remains a great mystery. Cadang-cadang is a local term signifying yellowing, growth failure, but is now generally used for this particular disease which appears to consist of a loss of chlorophyll and a subsequent starvation of the plant. No coconut trees have eVer been known to recover from the disease. Considerable evidence has accumulated to indicate that the disease is not caused by a fungus, by a bacterium, or by insect-feeding, and the two current theories attribute it, in the one, to a virus, and in the other to nutrient deficiency. Professor Kent states that experiments on possible control measures are underway and a search for resistant coconut varieties has also been begun. Histological studies have not yet been undertaken and are badly needed. It has been estimated that in the Bicol area out of a total of some 16,780,000 trees, 1,788,000 were destroyed by cadang-cadang in 1951, 4,569,000 in 1952, and 5,527,000 in 1953. The seriousness of the threat of the disease is in pro portion to the importance of the coconut industry to the country. Copra is still by far our most important export product, the value amounting to P232,000,000 in 1953 (as against the next most important product, sugar, the value of which was P 193,000,000 that same year). Add to this the value of our coconut oil exports, ^35,000,000; desiccated coconut, P31,000,000, and copra meal and cake, P8,500,000-. These are only the export values and do not include the values of the local consumption. Fortunately, it appears that strenuous measures will now be undertaken to combat cadang-cadang. The Govern ment recently formed the Philippine Coconut Administra tion and one of its primary functions will be to conduct research studies in this disease. When the formation of this Administration was being discussed, the coconut in dustry consented to a proposed assessment of Pl.00 per ton of copra as its contribution toward financing its work, and it is believed that the copra exporters, the coconut oil mills, and the desiccated coconut factories all are ready to give considerable support to any really serious efforts to eliminate the threat. There recently was offered to businessmen, with a view to inviting their comment, a long list of items the importation of which it has been Total Banning of proposed the Government totally Certain Imports “ban”. The list was compiled in the Department of Commerce and Industry as an appendix to another long list with which importers are already familiar,—“The Statistical Clas sification of Commodities”, implementing Circular No. 44 of the Central Bank, which classifies many thousands of articles of import either as “highly essential” or “essential”, whether to producers or to consumers, and as “non-essen tial”, leaving certain items which are designated as “unclassified.” It is fortunate indeed that Secretary Oscar Ledesma thus has given businessmen an opportunity to comment not only on the inclusion of many of the items in the list, but also on the whole banning procedure, before the Govern ment actually takes such radical action. For, first of all, there is the fundamental objection to any total banning of given items of import. The ban, or prohibition, is always among the most arbitrary resorts of autocracy, and positively has no place in any wise regulation of trade. And objectionable as it is in spirit, it is even more so as a method of practical application. The adoption of the “all-or-none” principle is hardly ever advisable in any connection as it eliminates all possibility of prompt modification to meet conditions as they develop. In the case of a banning of imports, it is fatally easy to include any number of items in a list drawn up a priori, but if mistakes are made, as they are bound to be made, it might be some time before this became ap parent; more time would be lost in obtaining the lifting of the ban, and still more time in making good the shortage, however damaging it would be. Such shortages would seriously block various productive enterprises and would also result in fatal consumption wants. This is not to exaggerate the matter in the slightest; rather it is an understatement. Numerous items, actually included in the list as released, would definitely result in a blocking of important industries in the country, and also in considerable deprivation affecting not merely the com fort but the health and the very lives of the people. The importation of a great many items involves highly technical considerations which are all too likely to be over looked by administrative authorities. Take such a seemingly simple type of article as wooden tool-handles, included in the banned list. Surely, with our great forest-stands we can make our own pick-handles, for example! The fact is that the old limitation on this item has plagued the mining industry especially for some time because no Philippine wood has the qualities of ash or hickory, the wood of choice. Handles of inferior wood cause not only much loss in production-time, but are physically dangerous to the man who is forced to use them.1 Take such a well-known product as tallow, included in the list. This is a major ingredient in the manufacture of soaps, a flourishing industry here. Tallow is not produced locally in any quantity, and coconut-oil can not entirely take its place. Take caustic soda. This is a most important chemical, used in numerous Philippine industries. It is being produced here, but the local production satisfies only some 12% of the consumption demand and the present plants, operating at maximum capacity, could not produce more than from 20% to 25% of the requirement. Hydrochloric or muriatic acid: It is true that commercial hydro chloric acid is produced in the Philippines, but the C.P. (chemically pure) acid is not produced locally and is an absolute essential in mill laboratories and assay offices. The critical demand for this as well as many other pure chemicals is probably so small that local manufacture on an economic basis can not be expected for a long time to come. 'The brief comments offered here on various of the items proposed to be banned are based on a study conducted by the Chamber’s Committee on Foreign and Do mestic Trade Controls of which Mr. Paul H. Wood is the Counselor and Messrs. L. B. Nestle and Newland Baldwin are respectively the Chairman and Vice Chair372 October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 373 “Some 9acti of V LIGHT is a form of radiant energy which is capable of producing the sensation of sight. It travels in wave like form thru space and thru certain transparent objects at the speed of 300,000 kilometers per second. A measure of light is the Footcandle which is defined as a unit of illu mination produced by one candle . on a surface all points of w'hich are al ca distance of one foot from the candle. In general there arc two kinds of light—natural light and artificial By REDDY KILOWATT light. Natural light is produced by natural phenomena such as sunlight, skylight, moonlight, etc., while artificial light is the result of man’s research and inge nuity, and is produced by such sources as the flame, the incandescent filament and fluorescent powders. The fluorescent lamp is our main artificial light source today. Advanced scientific processes make It possible to produce different kinds of fluorescent lamps for practically every application. In selecting fluorescent lamps, decide first whether you want a warm or cool atmosphere. The next point to consider is the relative importance of color rendition and light efficiency. Some proper applications of fluorescent light are as follows: 1. Daylight fluorescent—generally used in industry for color matching pur poses (paints and dyes). 2. Cool white fluorescent—generally recommended for office, store and the home. 3. Warm while fluorescent—commercially used for meat display places or where a warm atmosphere is desired. 4. Colored fluorescent—for decorative and special effects. WATCH This Space For Additional Information MOIU ELECTRIC COMPANY At no cost to You, our lighting specialists will be glad to assist you with your lighting problems. 134 San Marcelino Tel. 3-24-21 “Alcohols, n.e.s.” One might, indeed, suppose that in view of our large sugar industry and our many distilleries, the importation of “al cohols” might well be banned; but under this classification the Philip pines is bringing in benzyl alcohol and veratryl alcohol which are not obtainable locally and are needed in the manufacture of certain impor tant pharmaceuticals. The importation of varnish and "Others, prepared n.e.s. paint” would be banned under the list, although, last year, Miguel Cuaderno, Governor of the Central Bank, in recommending certain products for free entry under the "Selective Free Trade” plan, proposed that paints and varnishes be allowed to come in duty-free. Paints are manufac tured in the Philippines, but the plants now in existence and about to be established could not fill more than approximately 40% of the de mand, and there are certain special paints of the greatest importance for the protection of machinery and various types of construction which are not produced here at all, among them marine and industrial var nishes, latex and poly-vinyl-acetate paints, and paints for the proper coating of galvanized iron. At the same time, “Other oils from seeds, nuts, and kernels, n.e.s.” are on the proposed banned list, but among them are highly essential specialty drying-oils needed by Philippine paint producers. And “Copper powder used for pigments” is on the list, presumably because the Philippines produces copper; but this product is a concentrated ore, not copper in a pure form at all. To produce pure metallic copper, and copper-powder from that, is a long and expensive process, not likely to be undertaken in the Philippines for a long time. The importation of various types of paper,—writing paper, bond, envelope, and tablet paper, stencil paper, carbon paper, pasteboard and cardboard (except corrugated carton, boxes, and chipboard), “Others (paper bags and other containers of paper, n.e.s.)”, all would be banned under the list, but only the most ordinary grades of paper are manufactured m the Philippines and only certain grades of chip board. The designations are much too general and cover too many grades which can not be produced locally. Most of the paper manu factured here is made from bagasse and turns brittle and falls apart after a few years ; it simply can not be used for any purpose of permanent record. Many local manufacturers require types of paper boxes and bags which can not be made locally. As for carbon paper, there is only one factory in the Philippines making it and the quantity and quality is far telow the country’s requirements. "Ink, printing and mimeograph” would be banned under the list. While some inks are compounded locally, there are a great number of printing inks which are not be made here, including inks used for the aniline printing process, for printing on textiles, tin sheets, etc., and it is furthermore highly doubtful that the local manufacturers could supply the full market requirements even of the types of ink they make. "Reinforced steel bars and merchant bars”. There are a few small local rolling mills, but can they manufacture such types as deformed bars, corrugated bars, twisted bars, square plain bars, square deformed bars, etc., all needed for various kinds of construction? It is certain that these manufacturers can not turn out the grades of these products to meet government standards. Take the item, only one of a large number of pharmaceuticals’ recommended to be banned, “Serums, toxins, antitoxins, and toxide for human use”. It is true that the Government maintains the Alabang Serum and Vaccine Institute, but the output meets only a small fraction of the demand. Suppose the country is suddenly afflicted by some epidemic,—of typhus, diptheria, dysentery. The health authorities would be helpless; thousands of people would die. A great many food products appear in the list, including various meats and sausages, fresh fruits, fruit juices, jams, vegetables, tomato catsup, and coffee. Many of these items are not and can not be produced in the Philippines and are highly essential to the public wellbeing and health. Coffee is produced here but requires mixing with imported coffee. Locally made “tomato” catsup is a very inferior product, most of it made not from tomatoes but from bananas I 2 Under the "n.e.s.” (not elsewhere specified) stipulation all newly discovered and produced pharmaceuticals would be banned. As for the proposed ban on “Textbooks for college”, is it necessary here to say anything? Could any other proposal than this reflect more seriously on the state of culture in the country? It is hard, indeed, to take the list seriously. But the list, long as it is, actually names only a fraction of the total items which would be banned under it. The reader will have noted the abbreviation, “n.e.s.” in some of the cate gories briefly referred to in this editorial. These letters stand for the words, “Not elsewhere specified”, and this and such general expressions as “other manufactures of copper” and “other manufactures of other base metals” almost infinitely expand the banned list and leave it prac tically impossible to determine which types of articles would not be banned. A cursory comparison of the basic Central Bank list and the list of articles proposed to be banned, shows that no type of product classified as “highly essential” in the first list would be banned; but in the “essential producer” category 9 out of 571 items would be banned3; in the “es sential consumer” category 8 out of 1074; in the “nonessential consumer” category, 42 out of 366; and in the “unclassified” list, no less than 433 out of 477. And it should be understood that the basic Central Bank list already includes in the “non-essential” and “unclassified” categories many items which have proved to be “essential” and even “highly essential”. It is plain enough that the list was prepared on the basis of recommendations received from various individuals and entities and it also can be assumed that it was pre pared more as a means to gather information than as a list of items which it has already been decided actually to ban. But if such a ban were to go into effect, something very close to industrial chaos would develop, for while some local manufacturers might be, briefly, benefited, other manufacturers would be driven out of production and employees would be laid-off, living costs would rise, and the wellbeing, comfort, and health of the people would suffer. And no matter how the list might be modified or reduced on the strength of the general criticism that can now be offered, it would still remain a most dangerous measure inasmuch as many of the end-effects could not possibly be fully foreseen now. 3These 9 types of products in the "essential producer” category are: (1) Poultry feed concentrates (bran, pollar, sharps, and other by-products from the preparation of cereals and cereal products; (2) Rubber sheeting and soling; (3) Tire manufac turing and repair materials; (4) Cotton yam (except weaving yarn) bleached, dyed or mercerized; (5) Twines, cotton for sewing sails and sacks; (6) Wicks, lamps, and candles; (7) Steel bars and rods-reinforced steel bars and merchant bars; (8) Plows, cultivators, and harrows (animal drawn); (9) Stoppers, crown corks, bottle caps, capsules, and other packing accessories of base metal-crown cork caps. <In the "essential consumer” category, the 8 types of products banned are: (1) Other medicinal and pharmaceutical products, n.e.s.; (2) Writing paper; (3) Carbon and other copying papers (typewriter carbons); (4) Cotton thread, bleached, dyed or mercerized; (5) Hand tools, n.e.s. (blow lamps, hand sprayers, anvils, vises and clamps, portable forges, and grinding wheels, augers, drills, braces, gimlets, and reamers—boloes); (6) College and high school textbooks; (17) Writing ink; (8) Typewriter ribbons (((TiHERE are voices in our country who daily sound alarms that our civilization is on the way out. Concentrated on the difficulties of our times, they see an early and dour end for us. But let me tell you that civilization does not decline and fall while people still possess dynamic creative faculties and devotion to religious faith and to liberty. The American people still possess those qualities. We are not at the bedside of a nation in death’s agony. “Eighty years is a long time for a man to live. And, as the shadows lengthen over my years, my confidence, my hopes and dreams for my countrymen are still undimmed. This confidence is that, with advancing knowledge, toil will grow less exact ing; fear, hatred, and pain and tears may subside; the regenerating sun of creative ability and religious devotion will refresh each morning the strength and the progress of my country.”—HERBERT HOOVER, in a speech delivered on his 80th birthday anniversary. 374 Civil Defense and the Business Community Frank S. Tenny Executive Director, Philippine Safety Council MUCH has recently been said, in the press, at meetings, and over the radio about “civil defense”. The com parative newness of this activity, and its intensive ness, have caused some persons to interpret it as a “war scare”; unnecessarily alarming of the populace. The probable cause is that some civil defense speakers have dwelt on such subjects as the atom bomb, the hydrogen bomb, et al, possibly for publicity value. Another con tributory cause is that a co-equal phase of the entire cam paign has been seldom mentioned, that of Disaster Ororganization to cope with emergencies like typhoons, earth quakes, fires, and floods. In fact, it is this latter phase in which the Philippine Safety Council is primarily interested. A most natural question for members of the American Chamber of Commerce of the Philippines is, “Where does my firm come in?” Some obvious questions immediately present themselves, like, “Will martial law be declared?”, “Will my facilities be confiscated or taken over?”,- “What degree of control will I retain over my business?”, “What can I do now which is not overly expensive or impracticable?”, “Should I build bomb shelters and hold drills?”, “What items of supply should I stock up?” and “Just what is expected of my firm in the way of contributing supplies, vehicles, personnel, etc. in case of emergency?”. All of the foregoing questions cannot of course be answered in advance. The nature of the emergency will determine the degree of government control, if any, to be applied. Undoubtedly certain Executive Orders (some now being prepared) will become effective in time of emergency. Example: Price Control. The geography of the emergency will be important, with possibly different situations prevailing in different locations. One thing, however, ‘is absolutely certain,—the better prepared we are for emer gency, the less we will be inconvenienced when it comes. Now as to industrial, utility, transportation, commu nication, and commercial firms participation: Your firm will probably have two problems to consider: (1) Protection of your own property and personnel, and (2) Your pro-rata contribution to the defense or emergency effort. The first thing, therefore, is to make these two elements jibe in a fair and practical manner. Taking the first factor, protection, it can be said that plans are now being made for the most efficient methods to be applied, both generally and specifically. There is no intention to ram a group of regulations down the throats of businessmen. In fact, questionnaires are now in the mail asking for businessmen in various categories to serve on planning committees. In this way, your ideas will be taken into consideration at ground-level. Bear in mind, the entire Civil Defense and Disaster Organization program is largely a civilian effort, not a government monopoly. Factor two: your contribution to the emergency control, is another matter. Vehicles which you will not need, certain technical personnel, possibly even some equipment or buildings may have to be used in the common interest. Even so, you are again being invited to participate in the planning, and committees are now being formed. If you do not participate at this point, you will have small ground for complaint later. Current planning is now going on at two levels, na tional and local. The 'national is largely concerned with overall plans, creation of local chapters, development of nationwide interest and support, and administrative fac tors. Implementation comes mainly on the local level. An organization chart has been prepared showing the best method of operating city and provincial civil-defense groups in a coordinated manner. It is stressed that everything is still in the preliminary stage and that non-governmental elements will soon be invited to participate. The Philippine Safety Council has been assigned several responsibilities, among them the formation of civilian businessman committees in the (1) Industrial and Com mercial Firms Protection, (2) Communications, (3) Trans portation, and (4) Utilities sections. You will, by the time of publication of this article, have received information and questionnaires. No doubt many businessmen will be able to contribute valuable experience and suggestions, and to assist in keeping the plans on a sane and practical basis. In conclusion, we ask you to again recall that this entire effort is for peace as well as for war. The preparation of plans to cope with disasters, is certainly as important as that for defense in a war we hope will never come. The cooperation of business leaders is earnestly solicited. The American Chamber of Commerce JOURNAL A highly functional publication,— every part of which is specifically designed to assist the businessman and, more generally, to promote the economic interests of the Philippines 375 Legal Obligations of Commercial and Industrial Establishments to Provide Medical and De/ital Care Tabulated By Dwjght Dill, M.D. Health Service Corporation Legal Requirements 30 30-100 1. Care for job-incurred accidents and disease: (Reference: Republic Act No. 772) (a) Medical services and supplies x x (b) Surgical services and supplies x x (c) Dental services and supplies x x (d) Hospitalization and treatment x x (e) Completion of Workmen’s Com pensation Forms x x 2. Emergency medical and dental care (Ref erence: Republic Act No. 1054) x x (a) Stock of emer gency medicines x x (b) Stock of emergency dental medicines x x (c) Nurse — x (d) Medical consultant — x (e) Dental consultant — x (f) Dispensary — — (g) Retained physician — — (h) Retained dentist — — (i) Permanent physician — — (j) Permanent dentist — — (k) Infirmary or emer gency hospital — — (l) Dental, clinic — — 3. Yearly medical (phy sical) examination of all employees and la borers — X Number of Employees Less than 300 5. Detailed monthly re ports of medical and dental services.......... 6. Detailed annual re ports of medical and dental services THIRD CONGRESS OF THE REPUBLIC | OF THE PHILIPPINES > S. No. 89 First Session 1 (REPUBLIC ACT NO. 1054) AN ACT TO REVISE AND CONSOLIDATE THE PROVISIONS OF ACT NUMBERED THREE THOUSAND NINE HUNDRED SIXTY-ONE, AS AMENDED, RELATIVE TO FREE EMERGENCY MEDICAL TREATMENT, AND REPUBLIC ACT NUMBERED TWO HUNDRED THIRTYNINE, RELATIVE TO FREE EMERGENCY DENTAL TREATMENT, FOR EMPLOYEES AND LABORERS OF COMMERCIAL, INDUSTRIAL AND AGRICULTURAL ESTABLISHMENTS. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION I. EXTRACT (a) If the number of employees and laborers, is not less than thirty nor more than two hundred, the owner, lessee, or operator shall keep a stock of emergency medicines under the charge of a nurse for the use of his employees and laborers, and shall furnish free emergency medical and dental attendance to them, except when, within a radius of one kilometer from the commercial, industrial, or agricul tural establishment there is a public dispensary furnishing medicine free of charge to poor applicants or a pharmacy where the employer can buy the same for the purposes of this Act, the keeping in stock of emergency medicines shall not be neces sary to do so, in the discretion of the Secretary of Labor or his authorized representatives:|Provided, however, that this exemption shall not apply in cases where the number of employees and laborers exceeds one hundred but is not greater than two hundred. 4. Yearly dental exami nations of all employ ees and laborers (b) When the number of employees and laborers exceeds two hundred but is not greater than three hundred, the owner, lessee, or operator in addition to keeping a stock of emergency medicines under the charge of a nurse shall employ the services of a permanent or retained physician and a permanent or retained dentist for the benefit of employees and laborers, provide a room of strong materials, properly ventilated, and adequate enough to meet cases of emergency. (c) When the number of employees exceeds three hundred, the owner, lessee, or operator in addition to keeping a stock of medicines and employing in full the services of a physician and a dentist for the purposes specificdin the preceding two subsections, shall maintain a dental clinic and an infirmary or emergency hospital of sufficient capacity of one bed for each hundred employees, except where this shall be unnecessary because of the existence of a dental clinic and of a hospital in the place, at a distance not greater than two kilometers from the commercial, industrial, or agricultural establishment. In such cases, the owner, lessee, or operator may enter into an agreement with said dental clinic and hospital to reserve the necessary number of beds for the purposes specified in this subsection: Provided, that the number of beds may be increased to three for each two hundred laborers and em ployees according to the nature of the establishment, at the discretion of the Secre tary of Labor. SECTION 8. This Act shall take effect three months after its approval. Approved: June 12, 1954. X X X X X X X X Income Tax Statistics, 1953 1953 CORPORATION INCOME TAX ASSESSMENTS BY KIND OF BUSINESS Bureau of Internal Revenue Kind of Number of Total Tax Business Returns Due Gas-oil distributing companies............... 3 P 7,515,970.00 Insurance companies......................... 74 1,397,727.00 Manufacturing companies....................... 214 12,416,225.67 General merchandise companies............ 513 8,302,588.00 Real estate companies................................ 69 1,584,295.00 Banking-Findnce institutions... 53 6,687,562.00 Mining companies....................................... 38 5,232,589.00 Amusement companies.............................. 65 397,183.36 Public utility companies.......................... 62 282,854.00 Land, sea, air transportation com panies ........................................................ 109 1,696,645.00 Educational institutions.................... 107 272,334.75 Agencies........................................................ 21 62,673.00 Agricultural companies.... 106 1,639,190.00 Apartments, hotels.... 10 21,841.00 Bakeries, groceries..................................... 18 7,984.00 Brokerage companies............. 22 129,683.00 Construction companies. 29 186,867.00 Drug stores............................................ 14 120,324.00 Accounting and law firms........................ 2 323.00 Hospitals-maternity clinics...................... 11 49,164.00 Lumber mills............................................... Sugar and rice mills................................... Publication companies.............................. Rentals.......................................................... Others............................................................ Unspecified.................................................... Total...................................................... 82 1,976,980.00 46 3,945,955.00 38 1,077,440.00 93 2,285,148.00 353 10,832,919.00 48 4,814,969.00 2,263 _?72,937,433.78 1953 INDIVIDUAL INCOME TAX ASSESSMENTS BY NATIONALITY Bureau of Internal Revenue Nationalities Number of Returns Tax Due Filipino.......................................................... 43,684 P15,927,769.64 Chinese.......................................................... 11,167 4,577,972.15 American....................................................... 2,077 6,189,788.25 Spanish.......................................................... 729 .1,787,900.00 British............................................................ 389 1,243,917.65 French........................................................... 44 164,224.00 Swiss............................................................... 161 664,168.19 Indian............................................................ 284 67,471.00 Italian............................................................ 51 29,159.57 Others............................................................ 978 2,570,982.71 Total...................................................... 59,564 P33,223,353.16 376 The Business View A monthly review of facts, trends, The Government From Official Sources SEPTEMBER 1 — President Ramon Magsaysay receives Am bassador Raymond A. Spruance who lodges a formal protest against the “leakage” here of the American draft of the proposed Southeast Asia Treaty; the President expresses his regrets and states he will order an investigation. The President receives Sir Frank S. Gibbs as the first British Am bassador to the Philippines; Gibbs, recently named Ambassador, has been the British Minister here since 1951; in his statement to the Pres ident he recalls that British official relations with the Philippines have, except during the last war, “subsisted continuously and harmoniously since the first opening of a British consulate in Manila in 1844.” The President presides over a meeting of the Cabinet at which the leakage of the SEATO Treaty draft is discussed and Vice-President and concurrently Secretary of Foreign Affairs Carlos P. Garcia esks the Cabinet to help in preventing a repetition of such an incident. The Cabinet denies the petition of the Chinese Chamber of Commerce that overstaying Chinese be given refuge here under the asylum law and approves the President’s directive to Vice-President Garcia that he make strong representations to the Taipeh Government to admit them to Formosa, the President stating that the Philippine Government would assume the transportation expense. The President emphasizes at the meeting that he wants quick action in the matter of importing needed rice by private dealers using their own, and not NARIC funds. Secretary of Agriculture and Natural Resources Salvador Araneta reports to the Cabinet on the conflict on petroleum exploration con cessions between the Philippine Oil Development Company and the Standard-Vacuum Oil Company in the provinces of Cagayan, Isabela, and Mountain Province; the President refers the question to Secretary of Justice Pedro Tuason for legal opinion. Economic Coordinator Alfredo Montelibano reports that the contract to barter iron scrap on Corregidor for water-pipe has been awarded to C. A. Roxas 8s Co., Inc. and the President approves the contract. Vice-President Garcia’s recom mendation that a resolution be adopted to ask the Japanese Government to order a rebidding for the salvage of sunken vessels in the Philippines, is also approved. Approved, too, is a recommendation of Secretary of Defense Sotero Cabahug to purchase 25,000 aluminum water canteens from a local manufacturer. The President issues an administrative order organizing the Secre tariat of the coming SEATO Conference, with Under-Secretary of Foreign Affairs Raul S. Manglapus named as Secretary-General of the Secretariat; Press Secretary J. V. Cruz is designated Conference In formation and Publicity Officer; Juan Dionisio, of the Foreign Service Administration, is designated Administrative Officer. The President orders the liquidation of the assets and liabilities of the Land Settlement and Development Corporation (LASEDECO) and the transfer of its asset, to the newly-created National Resettle ment and Rehabilitation Administration (NARRA). Sept. 2— The President signs H. B. No. 2381, “An Act Appro priating Funds for Public Works and Amending Rep. Act No. 920”; the Act appropriates the sum of P245,438,912.62, of which P91.399,917.62 will come from the General Funds, P3,025,000 from the Port Works Special Fund, and P151,014,000 from the issuing of bonds. The President receives a group of labor leaders who present a reso lution asking, among other things, the representation of labor on the boards of directors of government corporations; the President states that he favors this as a matter of policy and will make such appoint ments as soon as vacancies occur. The President receives Francis Florence, Vice-President and Gen eral Manager of the Manila office of the National Lead Company (Na tional Lead Co. (Phil.), Inc.) who invites him to the inauguration of the Company’s new Pl,000,000 “Dutch Boy” paint plant on Isaac Peral Street, Manila, on September 10. The President receives a report from Lt. Col. Guillermo Santos stating that 118 of a possible 200 tenants have already been screened and would soon be settled on the 850 hectares of land in San Pedro Tunasan recently purchased by the Government; although the land is rolling, it is fertile and suitable to upland-rice cultivation; NARRA has released Pl0,000 for the construction of roads there. Sept. 3 — The President and the Cabinet approve the importation of 100,000 tons of rice, 50,000 of which is for immediate delivery and the rest to be imported when and if NARIC recommends this; Economic Coordinator Montelibano reports that two rice importers have already signed contracts to bring in a total of 10,000 tons; the rice will be sold to the public at 60 centavos a ganta. In view of soaring rice prices in Negros Occidental, the President si&ns a proclamation declaring the existence of a public calamity there and Act No. 4164 in full effect; he orders the Constabulary in the province to seize any stocks of rice or palay in excess of 100 cavans, this to be delivered to PRISCO and sold to the public, the owners to be reimbursed at the legal price from the proceeds. The President issues a proclamation exempting certain items from the payment of the foreign exchange tax in accordance with Rep. Act forecasts, by Manila businessmen No. 1197, approved August 28. The President inspects samples of a 3-inch and a 6-inch irriga tion pump manufactured by NASSCO, completed on August 31 in honor of his birthday anniversary. Sept. 4 — The President receives U.S. Secretary of State John Foster Dulles and Prince Wan Waithayakon, Foreign Minister of Thai, who call on him separately to pay their respects. Later the President witnesses the opening at Malacanang of the United States-Philippine Council, established on June 23, 1954, in accordance with the provisions of the Mutual Defense Treaty of August 30, 1951. In the course of the meeting, Secretary Dulles states, “I wish to state in the most em phatic terms that the United States will honor fully its commitments under the Mutual Defense Treaty. If the Philippines were attacked, the United States would act immediately.” The sense of his remarks will be incorporated in a note to the Philippine Government. According to a Malacanang press release, “Agreement was reached on measures to effect close coordination in United States and Philippine efforts.” The release also states: "In response to a Philippine request that the United States place its off-shore pro curement orders in the Philippines, Secretary Dulles said that the appropriate agencies of the United States Government would be willing to consider specific requests for the placement of procurement orders for such goods and services as can be economically obtained in the Philippines." The President and Mrs. Magsaysay give a luncheon in honor of Secretary of State and Mrs. Dulles. In a toast to Dulles the President calls him “the most courageous fighter for peace” and states, “Mr. Secretary, 20,000,000 Filipinbs are behind you in your efforts to preserve the dignity and freedom of mankind.” In his response, the Secretary says of the President “You have gained a stature in the world which is recognized everywhere.” Sept. 6 — The Manila (SEATO) Conference of 1954 opens in the session hall of the Philippine Senate, with the delegations of eight nations in attendance headed as follows: Australia, Minister of External Affairs R. G. Casey; France, Minister of State Guy la Chambre; New Zealand, Minister of External Affairs T. Clifton Webb; Pakistan, Minis ter of Foreign Affairs and Commonwealth Relations Muhammad Zafrulla Khan; the Philippines, Vice-President and Secretary of Foreign Affairs Carlos P. Garcia; Thailand, Prince Wan Waithayakon; United Kingdom of Britain and Northern Ireland, Lord Reading; United States of America, Secretary of State John Foster Dulles. President Ramon Magsaysay delivers the opening address, after which VicePresident Garcia is elected Chairman of the Conference and delivers a short speech. The various chief delegates then deliver their opening remarks, Senator Francisco Delgado, Chairman of the Committee of Foreign Relations, setting forth the views of the Philippine delegation. Sept. 7 — The SEATO Conference continues at both morning and afternoon sessions. Sept. 8 — The SEATO Conference delegates finally approve the texts of the Pacific Charter, the South East Asia Collective Defense Treaty, added to which is a brief statement entitled “Understanding of the United States of America”, and a Protocol to the Treaty designat ing the States and the Territory to which the provisions of Articles III and IV are applicable. (For the full texts, see the September issue of this Journal.) After the signing the respective chief delegates deliver their closing remarks. The President receives Ministers Webb of New Zealand, Zafrulla Khan of Pakistan, and la Chambre of France who call at Ma lacanang separately to pay their respects; all three invited him to visit their countries. In the evening the President and Mrs. Magsaysay give a state dinner in honor of the heads of the various delegations to the SEATO Conference. Following a meeting of the Cabinet it is announced that P30.000,000 has been made available for the Government to buy palay direct from tenants and small farmers; NARIC, ACCFA, PRISCO, and the Department of Agriculture have all been instructed to cooperate and . coordinate their efforts in the direct purchase of rice from the small producers; also that the rice importers who already signed contracts for the importation of 50,000 tons of rice should immediately open letters of credit with the Philippine National Bank which has agreed to accept the guarantee of NARIC. The guarantee is that it will “pay the importers of rice for whatever stocks are unsold 90 days after arrival.” The President at the Cabinet meeting directs Secretary of Justice Tuason to rush action on all cases already investigated by the different probing teams and to supervise personally the prosecution in these cases, including the Caledonia Pile case, the Guam labor employment case, the FIMCO case, the Philippine Homesite and Housing Corpora tion case, the LASEDECO case, etc. Secretary of Education Gregorio Hernandez, Jr., at the Cabinet meeting and with the approval of the President, constitutes a com mittee to conduct an intramural survey of the University of the Philip pines; the committee is composed of Regent Vicente Lontok as Chair man, the members being Regents Arturo Garcia and Modesto Farolan, and Deans Vicente G. Sinco and L. B. Uichanco; the committee is charged with finding means to gear certain activities of the University more effectively to the rural, economic, and industrial program of the Government. 377 The President sends former Speaker Jose Yulo in Paris a message expressing his condolence on the death there on September 6 of Mrs. Yulo from heart-failure. He sends former President Sergio Osmena a message congratulating him on his 76th birthday anniversary. Sept. 9 — Malacanang releases the text of U. S. Secretary of State Dulles’ letter to Vice-President and Foreign Affairs Secretary Garcia embodying his pledge made at the Council of Ministers held under the Mutual Defense Treaty between the Philippines and the United States on September 4. (For the text see the September issue of this Journal). Malacanang announces that “decisive steps have been taken in the past several days to strengthen the security of the Philippines and of the entire area of Southeast Asia and the Southwest Pacific.” The President separately receives four of the chief delegates to the Conference who call on him to say goodbye,—Australian Minister of External Affairs Casey, Lord Reading of England, Prince Wan of Thailand, and New Zealand Minister of External Affairs Webb. Sept. 10 — The President creates a rice purchasing committee to plan a country-wide program of direct rice-buying from small pro ducers; named Chairman is Secretary Araneta and the members are NARIC Manager Juan Chioco, ACCFA Manager Osmundo Mon donedo, PRISCO manager Ismael Mathay, Director of Public Schools Venancio Trinidad, and Chief, Philippine Constabulary, Florencio Selga. The President states the Government plans to buy the palay at from P9 to P10 a cavan, depending on the region, the variety; the quality, etc. The President directs Secretary Araneta to take charge of the arrangements for the forestry conference to be held in Manila on Sept ember 30-October 1; the President called the conference “to put a stop to the wanton destruction of forest resources which has been going on through illegal kaingin making and destructive logging-practice.” The President orders the Army and Customs investigators to go to the core of the alleged smuggling into the country of some 20 tons of assorted merchandise frcm Japan on a Philippine Navy ship, “irre spective of whom may get hurt.” Sept. 11 — The President issues a statement declaring that the rumors of war circulating in the provinces are “completely false and malicious”; he states that if any crisis should arise, “the people will hear of it quickly from official sources. . . The truth is. . . there is less danger of war today than there has been for many months.” The President declines to accept the resignation of NARIC Man ager Chioco, but is reported to have the resignations of three members of the Board (Felix de la Costa, Conrado Estrella, and Sergio OrtizLuis) under advisement. The President issues an executive order instituting a special pre sidential award to be known as “The Golden Heart Presidential Award”, which may be presented to any individual or organization, here or abroad, that has rendered meritorious services or contributed note worthy monetary or other material aid to the efforts of the Government to improve the-condition of the Philippine masses, especially in the rural areas. Sept. 13 — At ceremonies at Fort McKinley, the President pins the “Golden Heart” medal on Ambassador Carlos P. Romulo for his outstanding and meritorious services rendered to the country as the President’s special envoy to the United States. The President accepts the resignations of de la Costa and OrtizLuis as members of the NARIC Board. The President receives the delegates and observers attending the World Health Organization regional conference being held in Manila (September 10 to 16). The President directs Lt. Gen. Jesus Vargas, Armed Forces Chief of Staff, to expedite the investigation of the alleged smuggling of goods into the country from Japan through the use of naval vessels. The President issues a proclamation declaring a "Literacy Year” during the period from September 15, 1954, to September 15, 1S55, and creating a committee to take charge of a national campaign to promote literacy in the country. Sept. 14 — The President is informed by Minister Felino Neri on the report of the Hernandez Mission to Japan on the reparations question, Neri expressing the view that it is a “very competent and con cise study”; the President sets September 17 as the date for a meeting of administration and congressional leaders to take up the matter. The President appoints Col. Jacinto Gavino, ACCFA Manager Mondonedo, and Maximo Calalang to the NARIC Board; having declined the resignation of Board President and General Manager Chioco and also that of Conrado Estrella, the NARIC Board now is composed of Chioco, Estrella, Mondonedo, Calalang, and Gavino. The President directs Secretary of National Defense Sotero Cabahug to order increased army and navy surveillance in Mindanao waters to put an end to the illegal entry of Indonesians into Mindanao; some 6,000 have come in during the past few years, most of them from Las Palmas and Maruray islands, which are nearer to Mindanao than to other Indonesian territory. Senator Manuel Briones calls on the President to urge him to give the recently reconstructed University of the Philippines building on Padre Faura Street to the National Library and not to some other government entity. (It was originally planned to assign the building to the Library, but it has been reported that the Department of Foreign Affairs wants to occupy it.) The President had luncheon with the executives of Caltex (Philip pines) headed by Robert J. Monical, Vice-President and Managing Director. Ambassador Romulo, accompanied by his wife, boards a plane for the United States on an undisclosed mission for the President. Sept. 15 — The Cabinet, with the President presiding, decides to bring up the problems confronting the Philippines incident to the illegal entry of Chinese and Indonesians before the current United Nations conference on stateless persons. The Cabinet reaffirms the policy of extending every assistance to the United States armed forces in the expansion of bases and installations here, leasing the necessary lands for a period of 99 years, renewable for another 99 years, but not granting title. The Cabinet also approves another extension of the barter trade agreement with Japan from September 17, when the present term expires, to January 31, 1955. The Cabinet finally approves the plans drawn up by Secretary of Public Works Orosa for the improve ment of the Cebu city water-supply to cost P220.000. The President in a conference with NARIC officials decides to use the services of provincial and municipal treasurers for the distribu tion of the 60-centavo a ganta rice. NARIC General Manager Chioco informs the President that letters of credit for the importation of 50,000 tons of rice from Pakistan have already been arranged for and that the first shipment of 20,000 tons is expected to arrive before the end of this month and 30,000 tons more by October 10. The President, by administrative order, formalizes the creation of the Rice Purchasing Committee which will plan and supervise the buying of palay by the Government from small farmers and tenants during the 1954-55 harvest; the Committee is headed by Secretary of Agriculture Salvador Araneta; NARIC, ACCFA, and PRISCO have been instructed to assist the Committee. Sept. 16 — The President receives Representative James B. Utt, of the Ways and Means Committee of the U.S. House of Representa tives, who is here to study economic conditions in connection with the Bell Trade Act revision. The President swears into office Manuel Nieto as the Philippine Minister to Argentina and Mexico. Sept. 17 — The President issues an order creating the Philippine Information Agency to disseminate accurate information concerning Philippine political, economic, social, and cultural conditions and activities; the Philippine Embassy in Washington, D.C., will serve as regional office for North and South America and the Embassy in London for Europe and Africa; the central office in Manila will serve as regional office for Asia, the Southwest Pacific, and the Middle East; the Agency is placed under the Office of the President, with Executive Secretary Fred Ruiz Castro as Chairman and Secretary of Commerce and Industry Ledesma, Under-Secretary of Foreign Affairs Manglapus, Under secretary of National Defense Jose M. Crisol, Col. Nicanor Jimenez, and Foreign Affairs Officer Narciso Reyes, as members; the latter is also designated Executive Secretary of the Board and Director of the Agency. On behalf of the President, Executive Secretary Ruiz Castro re ceives the delegates to the World Health Organization Conference which closed yesterday; in a message the President expresses gratitude to the WHO, the United Nations Children’s Emergency Fund, the UN technical assistance, and the Foreign Operations Administration, all of which are “playing an important role in helping my Government in its herculean task.” Sept. 20 — Economic Coordinator Montelibano and General Manager Chioco of NARIC release a summary of rice importations already ordered,—6 orders to 3 different companies for a total of 20,000 tons of kangi rice and 30,000 tons of joshie rice from Pakistan and 3 orders through 3 other companies for a total of 10,000 tons of rice from Siam. The prices of the kangi rice are P.51 and P.52 a ganta; for the joshie rice P.49; and for the Siamese rice, 45% broken, P.43, and, 40% broken, P.50. Sept. 21 — The President has a breakfast conference with Represen tative Utt, Ambassador Raymond A. Spruance, and several others; the Congressman is scheduled to leave the Philippines for Washington this evening. The President visits Fort Wm. McKinley and, on inspecting the kitchens for some 3,000 20-year old trainees undergoing 10 months’ training, compliments the mess officers for the excellent food being provided on a meal allowance of Pl a day per man. The President receives the final report of the committee headed by Commodore Jose Francisco, which investigated the business transac tions of the Villanueva Shipping Company and hands the report over to Secretary of Justice Tuason for immediate action; the report re commends that charges be brought against the directors of the firm, most of them Chinese, for various violations of law and that the two marine surveyors concerned be subjected to an administrative investiga tion by the Bureau of Customs with a view as to whether or not their licenses should be cancelled or suspended; the report also holds that an official of the Rehabilitation Finance Corporation is implicated. Sept. 22 — The President, during a meeting of the Cabinet, signs the appointment of Ambassador Felixberto Serrano as Deputy Chair man of the Philippine Mission to the United Nations; Ambassador Carlos P. Romulo is Chairman. The Cabinet endorses the President’s plan to disperse the cattle on the stock farms of the Bureau of Animal Industry among the farmers; the President has made P500.000 available for the importation of breeding cattle from India and other neighboring countries. The Cabinet approves a recommendation of Secretary of Justice Tuason that the Philippine National Bank refund to the Farm Im plements and Machinery Corporation an over-payment of Pl,593,700, 378 and that the Corporation be granted a license to export Philippine products to Japan under the Barter Agreement in the amount of $1,767,469 in exchange for cotton piece goods, in full settlement of the claims which FIMCO and its customers may have against the Bank and the NARIC. Malacanang releases list of 86 candidates adjudged to have passed the Certified Public Accountant Examination taken by 1,163 candidates last December, all of whom were at first adjudged to have failed: another 85 candidates were adjudged to have passed in at least two subjects and are given the privilege of re-examination in the subjects in which they failed. Sept. 23 — The President, in ceremonies in Malacanang, confers the Golden Heart Presidential Award on United States Minister William S. B. Lacy, Counselor and Deputy Chief of Mission, American Em bassy. Earlier in the day, at Camp Murphy, Secretary of Defense Cabahug bestowed the decoration of the Philippine Legion of Honor (Commander) on Lacy. The Minister has been transferred to Washing ton and will leave the Philippines tomorrow. Charles R. Burrows will take his place at the American Embassy. The President appoints and inducts Dr. Jesus Perfinan as Acting Assistant Director of Private Schools. He also inducts as members of the board of the newly created Philippine Information Agency, Exe cutive Secretary Castro, Secretary of Commerce and Industry Le desma, Col. Nicanor Jimenez, Carlos Nivera, nad Narciso G. Reyes. The President receives Griffith May, of Seattle, Washington, now on a tour of the Far East; May informs the President that the products of various Philippine home industries were well received at Washington State’s Third International Fair held this year; a Fourth Fair will be held from March 11 to March 25 next year. The President calls at the residence of Senate President Eulogio Rodriguez to express his condolence to the Senate President over the death of Mrs. Rodriguez early this morning. Sept. 24 — The President issues an executive order promulgating rules and regulations covering the assignment of military personnel to civilian offices and officials. The President visits the Bureau of Internal Revenue and inquires into the progress of the pending tax cases; he also visits the Bureau of Customs. The President makes a surprise inspection of various towns in Cavite Province, including the 7th BCT headquarters in Tagaytay City. Sept. 25 — The President confers with Minister Neri who reports to him on the conference held yesterday by the committee of the Council of Leaders (the new non-partisan National Planning Council created July 14), on the Japanese reparations question. Neri states that "the meeting of the Recto committee had reached complete accord on all points in which the solution to the reparations problem hinges by ap proaching the matter with open mind and from a realistic point of vie\v, guided by the findings of the Hernandez Mission." Regarding the statement of Takashi Suzuki, of the Japanese Mission in the Philip pines, to the Associated Press yesterday that S400.000.000 is the absolute maximum Japan could pay the Philippines in reparations, Neri states that “it was unfortunate because it was said at a time when we were making progress toward clarifying our position. .. as to whether the two Governments should decide to resume negotiations.” The President requests Secretary of Justice Tuason to direct the Solicitor-General to deputize 12 internal revenue attorneys to handle the civil actions instituted by the Government to collect unpaid taxes. The President receives Col. Salvador Villa, General Manager of the Manila Railroad Company, who reports that 8 new diesel-electric locomotives will be purchased by the Company and will be in operation by March of next year; bids have been received from American, Japa nese, German, and English manufacturers and "the American bid seems the most acceptable.” Villa also reports that 3 new locomotives for the Philippine Railway in Panay will be put in operation in December; the MRR warehouses in the North Harbor area for storage of copra, sugar, fertilizer, and other import and export commodities, will be completed in December; air-conditioned coaches for the Bicol run bought from Japan will arrive before the end of the year; sixty 30-ton box cars, presently being rehabilitated, will be ready for use in Novem ber and an additional one hundred 30-ton all-steel box cars from the United States will be in operation in January. The President receives Raymond Moyer and Clinton Morrison, Regional Director and Deputy Regional Director, respectively, of the U. S. Foreign Operations Administration, who call to pay their respects prior to their return to Washington after attending a 5-day regional FOA conference here; they are accompanied to Malacafiang by Col. Harry A. Brenn, Chief of the Manila Office. Sept. 26 — The President gives permission to Vice-President and concurrently Foreign Secretary Garcia and Secretary of Defense Ca bahug and also to a number of officers of the Armed Forces, headed by Chief of Staff General Vargas to appear before the Senate Committee on National Defense with the stipulation that the Committee be asked to hold the meeting behind closed doors; the newspapers have reported that members of the Senate Committee are dissatisfied with the pre sentation of the Philippines’ case at the meeting of the Council of Minis ters under the Mutual Defense Treaty held in Manila on September 4. The President issues an executive order creating a committee to investigate the administrative charges against three Manila City Coun cilors for dishonesty in a matter of establishing market sites; the com mittee is headed by Dr. Gaudencio Garcia. Malacanang releases a list of voluntary contributions to the Pres ident’s “Liberty Wells” Fund, a total of P31,165.35, of which P15,646.55 was received by the Liberty Wells Association and the remainder at Malacanang. The President attends the funeral services of Mrs. Juana Rodriguez, wife of Senate President Rodriguez. Sept. 27 — The President receives the Manila Board Councillors, headed by Board President Francis Yuseco, who propose that he sus pend all Manila officials involved in the charges and counter-charges recently filed with Malacanang by Mayor Arsenio H. Lacson and mem bers of the Board; the President states he will consult the investigating committee on the matter. The President issues a proclamation declaring the period from October 24 to 31 this year, and every week beginning with the fourth Sunday of every October thereafter, as Barrio Farmers’ Week. Sept. 28 — The President issues an executive order creating an Asian Good Neighbor Relations Commission and an administrative order designating Dr. Mariano de los Santos Chairman, Messrs. Mo desto Farolan, Nicolas Zafra, Joaquin Roces, Eugenio Puyat, and Felino Neri and Miss Helen Benitez, Mrs. Tarhata Kiram-Salvador, and Mrs. Claudio Tee Han Kee as members. The President, after a conference with Senator Claro M. Recto and Minister Neri, postpones a scheduled meeting of the Council of Leaders on the reparations question, set for October 1, pending a further report from Neri; the latter subsequently announces he will meet later in the day with Japanese Minister Katsumi Ohno. The President creates a committee composed of Secretary Monte libano and a representative each from the Bureau of Public Works and the National Power Corporation, to coordinate the studies and surveys which may be undertaken by various government entities in connection with the development of electric power generation, flood control, irriga tion, and water supply. The Presdent releases P200.000 for the readjustment of the salaries of superintendents of schools throught the country. The President issues a proclamation reserving as the Sablayan Penal Colony and Farm an area of the public domain in Sablayan, Occidental Mindoro; the action follows recent outbreaks of violence in the New Bilibid Prison, at Muntinlupa, believed to be due at least in part to the acute over-crowding there. The President after an inspection of the San Lazaro Hospital premises decides to have the new P2,500,000 hospital construction there face Tayuman Street instead of Rizal Avenue; also, not to demo lish the old pavilions, but to release Pl00,000 for their rehabilita tion. Banking and Finance By M. D. Arnold Sub-Manager The National City Bank of New York ✓COMPARATIVE statement of condition of the Central Bank: As of As of As of As of Dec. 31, Jun. 30, Jul. 30. Aug. 31. 1949 1954 1954 1954 ASSETS (In thousands of pesos') International Reserve.. . . P460.689 P465.943 P457.288 P474.267 Contribution to the Inter national Monetary Fund................................. 30,000 30,000 30,000 30,000 Account to Secure Coin age .................................... 113,306 106,940 106,940 106,940 Loans and Advances.. . 77,047 1,584 714 5,217 Trust Account—Securi ties Stabilization Fund. — — — — Domestic Securities......... 92,197 240,066 227,970 226,445 Other Assets...................... 20,390 49,982 54,626 54,173 P793.629 P894.515 P877.538 P897.042 LIABILITIES Currency—Notes.............. P555.576 P587.486 P584.708 P599.715 Coins............. 74,384 84,700 84,802 84,928 Demand Deposits—Pesos 117,682 170,775 154,802 157,339 Securities Stabilization Fund................................. 2,000 14,667 14,864 14,862 Due to International Mo netary Fund.................. 22,498 496 496 496 Due to International Bank for Reconstruction and Development................. 2,389 2,377 2,377 2,377 Other Liabilities................ 2,636 5,060 6,136 7,094 Deferred Credits.............. 478 894 1,326 Capital................................. 10,000 10,000 10,000 10,000 Undivided Profits............. 6,464 5,208 5,509 5,637 Surplus................................. — 13,268 13,268 13,268 P793.629 P894.515 P877.538 P897.042 379 Contingent Account Forward Exchange Sale.. P 6,460 — — — The International Reserves as of August 31, 1954, 370.00 360.00 12.00 ------10^00 were as follows: Central Bank International Reserves................ $237,133,529.73 Japan Open Account (due from)........................ 14,957,739.44 Net FX Holdings other Banks............................ 59,007,194.99 2.50 $311,098,464.16 This is an increase of approximately $2,250,000 as compared to July 31, 1954. Currency and coins issued totalled P684,643,271.10. Money is still tight in Manila and the provinces. The drought in certain rice-growing regions has only recently been allayed by delayed rains, and what was predicted a few months ago as a rice crop estimated to be in excess of normal consumption requirements, now is reported short by 50,000 to 200,000 tons which will have to be imported. The unemployment picture is darker, with no im mediate relief in sight. Manila Stock Market By J. J. Ortigas Picornell, Ortigas & Co. August 21 to September 24 DURING the past month the mining-share market had a mild sag, but this was followed by a recovery led by Lepanto Consolidated,—which was the principal feature attracting good quality buying on the basis of the Company’s improved outlook. Consolidated Mines was also well bought during the last few days of the period under review on the announcement that the Board of Directors of the Company had passed a resolution to be submitted to the share-holders asking their approval of the proposal to increase the authorized capital stock to F20,000,000 and subsequently Co declare a 100% stock dividend. Philippine Iron Mines, after being traded lower, closed firmer. The price of gold in the free market is approximately at Pl 10.60 per fine ounce. In the commercial and industrial section, Philippine Long Distance Telephone Company common shares con tinued in demand, registering a further advance of Pl.25; San Miguel, on the other hand, was a minimum fluctuation lower. Fixed-interest securities in general continued firm. 1953-54 Range Hi eh Low MINING SHARES 7.50 0.40 3 60 0.06 0 06 20.50 5.00 16 75 0 98 35.50 .50 0 86 99.50 107 50 102 00 14.00 13.00 Company 0 255 0.12 0.0875 0.037 0.0975 0.06 2.10 0.60 0.0026 0.0011 4.60 2.60 0.046 0.034 0.305 0.115 0.22 0.09 0.105 0.03 0.49 0.325 0.1475 0.05 0.23 0.06 2.29 1.42 0.31 0.14 0.27 0.17 M.S.E. Mining Share Acoje Mining Co.... Atlas Cons. Mining. & Dev. Co.................... BaguioGold Mining Co. Balatoc Mining Co... Batong Buhay Gold.. Benguet Cons.............. Consolidated Mines, Inc. General Base Metals. Hixbar Gold Mining Itogon Mining Co..,. . . Lepanto Cons. x.. ,. . . Mindanao Mother Lode.......................... Paratale Gumaus Philippine Iron Mines, Inc..................... San Mauricio Mining Surigao Cons............... x—Ex-Dividend High Low Close Change Total Sales 95 95 14 91 53 94 12 74 1325 08 085 15 044 09 034 49 13 23 64 14 18 065 0725 2 95 041 09 03 44 20 50 14 175 2 07 Off 0725 Off 80b 0015a 95 ' 044 13a 09 03 485 10 20 1 Off Up OffOff Up Off OffOffOffOff .22 12,116,058 .0075 342,205 .0075 1,128,786 .01 120,000 .20 11,410 .003 2,971,900 .01 70,000 .006 165,000 .045 1,014,038 .035 215,000 .03 55,000 .02 110,780 .01 10,000 .005 438,000 196.00 135.00 20.00 11.00 72.50 60.00 130.00 100.00 105.00 90.00 45.00 26.00 COMMERCIAL SHARES Bank of the Philippine Islands....................... Bogo-Medellin Millingx Central Azucarera de Central Azucarera de la Cariota................ Central Azucarera de Pilar.......................... Central Azucarera de — — 195.00b — — 13.0Gb 72.00 72.00 72.00 130.00 130.00 130.00 90.00 90.00 90.00 41.00 39.00 39.00 Up 6.00 Off 10.00 Off 3.00 71 183 420 China Banking Corp... Cia. de Celulosa de Filipinas..................... Pilipinas Cia. de Seguros......................... Industrial Textiles Mfg. Co. P.I........... Insular Life Ass. Co. .. Manila Broadcasting Co............................... Manila Wine MerMarsman & Co., pref.. Mayon Metal, class “B"........................... Meralco, 6-1/2% .... Pasudeco .................... Philippine Air Lines, Inc.............................. Philippine Long Dist. Tel. Co., com. x . . Philippine Oil Dev. Co. Inc. xx...................... Philippine Racing Club, R & 'b' 4% Bonds— 1959........................... San Miguel Brewery, 3.60 10.00 16.7' — 350 12.00 00b 12 00 22 00b 2 7 50 00b Off 1 00 37b 3 30b 30a — 103 27.00 — 10.00 27 05b 00a 00 50 .041 .032 033 00b 00 34 50 34.00 34 San Miguel Brewery, San Miguel Brewery, 8 % pref................... Univ. Ins. & IndemWi'lliams ' Equipment', x—Ex-Dividend xx—Ex-Rights T—Bond Sales reported in units of P100 Bcnguct Exploration .............. Capsay Mining Co.................... Demonstration Gold................... Jai Alai Corp, of the Phil.......... Mine Operations......................... Philippine American Drug Co. Philippine Electrical Mfg. Co... Realty Investment-,......... Victorias Milling Co........... Off 2 00 Off Off 100 625 33,036 .006 .50 T 40 20,457 00 101 50 101 50 Off .50 772 106 50 106.50 106 OVER-THE-COUNTER High L 50 13 00b 10 00b 132 Total Sales P 0.03 0.04 0.00! 7.00 0.00*1 75.00 70.00 7.00 95.00 Credit By Duncan Burn Manager, Eastern Inspection Bureau and Manager, Association of Credit Men, Inc. (P.I.) THE Association of Credit Men, Inc. (P.I.) completed on September 22, 1954, a resume on the collection situation as of mid-September. Thirty-seven member firms contributed specific comments and the consolidation of data proved most interesting to members. Twenty Association members reported the collection situation at mid-September as tighter than in mid-June, 1954; 11 reported the situation virtually unchanged; and 5 found the collection situation somewhat easier. The members reporting the collection situation as either easier or un changed, explained that this condition was due in part to greater effort exerted in collecting and in more careful selecting of credit risks. It is interesting to note, however, that 3 members found the collection situation somewhat easier through no efforts of their own. In explaining the conditions responsible for a tight situation at mid-September, 10 members believed that the second-half income-tax payments, registrations, and other normal factors were largely responsible. Fourteen members considered the Nationalization Act as contributing to the tighter situation, and 2 members believed the Na tionalization Act had no bearing on this. Only 3 members stated that the Wholesalers’ Tax contributed to the tight situation; 7 members believed this tax had no bearing. Thirteen members reported that the tight situation could be attributed to unusual conditions, including a variety of factors, several mentioning unusual weather. Various members provided amplification to the basic survey and made comments to the effect that money is usually tight at this time of the year but that the situation is worse than usual now because of the Nationalization 380 Act and the Wholesalers’ Tax. Lower prices of export products, particularly copra, were mentioned by one as aggravating the situation. Other members made specific comments of points affecting specific lines. Toward the end of September some merchants reported a slight improvement in collections on the retail and whole sale level, but bank credit was still tight and money con tinued tight. The Demonetization Act has not had the good results expected and some credit men report that hoarders have exchanged large bills for bills of smaller denominations and thereby removed more money from circulation. At month-end collections for the most part had not eased noticeably, and several credit men reported collections still badly off with post-dated checks and checks without funds still much in evidence and some firms refer ring an increasing number of collection items to lawyers. Some trade sources anticipate a slight improvement during the next two months in anticipation of Christmas trade and seasonal improvements. The Association of Credit Men admitted two new members at the monthly meeting in September, bringing the total active membership to an all-time high of 86. Electric Power Production (Manila Electric Company System) By J. F. Cotton Vice-President, Manila Electric Company 1941 Average—16,316,000 KWH January.......................................................... February........................................................ March............................................................. April................................................................ May................................................................. June................................................................ July..................... ........................................... August............................................................ September..................................................... October.......................................................... towns of Caloocan, Makati, Malabon-Navotas, Mandaluyong, Paranaque, and San Juan. A few of the bigger sales registered during the month were: £r™A“Mabini St. A property with a lot of 1,191 sq.m, sold by A. tTni}%“son W GOO”0"0'’ °f 1'7°°’7 m’ S°‘d Remigi° Ta" A"’ SA'snw?. ■100 ”■ ”■h' L°"d"c- °“m“ sswms: ”ld by ”■ ”• “,d b” E”‘"“ ^•d< ”ld» “•!dik” “ “»u-“d •» - “ld output was 6,044,000 kwh., or 11.2% over As usual at this time of year, less daylight hours cause increased use of electricity and new records are set. In September the following records were set: Highest hourly output, 150,700 kw, on the 29th; highest daily output, 2,180,000 kw, on the 23rd; highest average daily output, 1,989,000 kwh; highest monthly net output at Rockwell Station, 40,494,000 kwh, equal to 67.8% of the system’s total net output. Real estate mortgages registered in the Greater Manila area during the month numbered 646, with a total value of ?9,363,680, as compared with 597, with a total value of ?9,567,697, registered during the preceding month of August. Of the September mortgages, 238, with a total value of P3,876,293, represented transactions within Manila proper, while 408, with a total value of P5,487,387, were mortgages in the place first above mentioned. REAL ESTATE SALES, 1954 Quezon City Pasay Suburban City Towns Total Real Estate By Antonio Varias Vice-President, C. M. Hoskins fir* Co., Inc., Realtors REAL ESTATE sales registered in the Greater Manila area during the month of September, 1954, num bered 596, with a total value of P5,905,380, as com pared with 571, with a total value of P6,280,822 registered during the preceding month of August. Of the September sales, 196, with a total value of P2,255,463, represented deals within Manila proper, and 400, with a total value of P3,649,917, were transactions registered in Quezon City, Pasay City, and in the suburban January.......... February.... March............. April............... May................ June................ July................. August........... September. . . P4,757,076 Pl,306,427 P505.410 Pl,676,512 P8,245,425 2,444,703 2,811,805 4,692,440 2,412,941 2,584,689 3,383,397 1,948,002 2,255,463 2,295,413 2,501,229 1,381,842 1,587,327 4,280,526 1,122,490 1,458,729 1,184,084 330,245 162,167 169,520 246,905 175,518 320,251 490,560 250,258 1,859,162 2,239,095 976,526 1,644,658 2,165,846 2,000,503 2,383,531 2,215,575 6,929,523 7,714,296 7,170,328 5,891,831 9,206,579 6,326,641 6,280,822 5,905,380 REAL ESTATE MORTGAGES, 1954 January..........P6,243,766 Pl,308,920 P517,867P3,629,703Pll,700,256 February.... 2,980,579 1,891,440 600,810 2,115,852 7,588,816 March............. 4,400,965 2,132,170 417,390 1,773,031 8,723,556 April................ 5,606,798 1,392,580 267,850 1,503,990 7,771,218 May................ 4,148,835 1,991,400 334,300 1,710,865 8,185,400 June................ 6,593,711 1,486,785 607,600 2,119,166 8,807,262 July................. 7,768,526 1,237,031 284,370 1,367,730 10,657,657 August........... 5,170,526 1,853,524 829,613 1,714,034 9,567,697 September... 3,876,293 1,746,971 495,000 3,245,416 9,363,680 381 Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of August, the Office of the City Engineer approved building permits for construction work amounting to P2,138,790. For the same period in 1953, the volume of work authorized amounted to P2,980,460, in comparison with ?2,838,540 in 1952 and P3,109,275 in 1951. Some of the big projects that were started during the month under review were: A 3-story mausoleum in the Chinese Cemetery for the family of Yu Ting, costing P 240,000; On Pampanga Street, Rizal Avenue Extension, a commercial building for Florencio Reyes & Co., estimated at P125.000; A school building on Nagtahan, San Miguel, for the Grace Christ High School, costing P80.000; A commercial building for Siy Cheng on Santo Cristo Street, Binondo, estimated at P80.000. During the period under review large shipments of Portland cement continued to arrive from Japan and Bel gium, resulting in an oversupply of the material in the local market. Ready stocks of imported cements are being offered for sale at P3.30 against Rizal Cement; locally produced, at P3.50 plus P.10 for delivery. Unlike other materials, cement can not be stored for any great length of time, and it is feared that a big part of the supply will harden. There is a lull in the market due to the rainy season and, in a way, to the talk of war. Importers who can not hold their stock for a long time are quoting reinforcing steel bars at P300 to P310 a ton. Galvanized-iron roofing sheets are offered at P5.80 per sheet of gauge 26, 8 feet long. Port of Manila By W. S. Hurst Executive. Officer, Luzon Brokerage Company SEPTEMBER saw a new high for deliveries from the South Harbor piers, with over 95,000 tons of general cargo being received and delivered to importers. This showed a 15,000-ton increase over deliveries for the month of August. No congestion was experienced at any time. Fire of undetermined origin hit that part of the Customs Building where goods are stored preparatory to their being auctioned off to the public. There have been many rumors that the fire was intentional, to cpver losses, but nothing concrete has been established. To date it remains just another fire of unknown origin. President Magsaysay recently made two surprise visits to the Bureau of Customs to personally look into matters pertaining to this Bureau. We feel that this in terest on his part will further help to increase the efficiency of the Bureau. The recent onion importation case is still being in vestigated, but no final result has been disclosed. Outside of the above mentioned items, everything is quiet and normal along the waterfront. Arrastre Service, Manila (Port Terminal Services) By Francisco Delgado General Manager, Delgado Brothers, Inc. OVER 99,000 tons of general cargo were delivered over the piers for the month of September, topping the previous month by approximately 9,000 tons. These figures do not include some 28,000 tons delivered at shipside. Notwithstanding the heavy tonnage handled during the month under review, there was no marked interrup tion in the smooth flow of shipment through the Port. Pilferage, too, was under control and is being kept to the lowest possible minimum. Additional new Clark forklifts of the latest models arrived recently to bolster the cargo-handling equipment at the piers. Highly mechanized port operation is making up for deficiency in tonnage-space by speedy and increased cargo outturn. In anticipation of influx of heavy tonnage during the coming Christmas and New Year season and to forestall the possibility of congestion, the Arrastre authorities have signified willingness to offer deliveries free of over-time charges during Sundays and holidays. Port and shipping officials are adopting remedial measures in such matters as proper vessel berthing, expeditious processing of entry permits, advance submission of vessels’ hatch lists for pre planning of shed stowage, advance information covering following day’s delivery for effective cargo location, pre paration of necessary men and equipment for expeditious deliveries, etc. Although the Port of Manila is not properly equipped with an adequate passenger pier, Port officials are exerting all efforts to make the reception of tourists and incoming passengers as pleasant as possible. TONNAGE HANDLED IN THE PORT OF MANILA Month Dockside Shipside Bulk January, 1954.... 103,878 23,192.18 44,402 February................ 82,853 26,547.24 41,105 March..................... 100,161 17,124.15 101,596 April........................ 110,764 26,425.19 86,971 May......................... 115,203 33,824.17 97,825 June......................... 105,589 18,578.15 69,818 July.......................... 79,671 28,374.26 96,407 August.................... 81,199 21,621.17 69,418 September.............. 99,744 28,828.01 69,417 Ocean Shipping and Exports By E. H. Bosch Secretary-Manager Associated Steamship Lines TOTAL exports during the month of August this year showed a decrease of 52,099 tons over exports during August of last year. The reduction is due mainly to a decrease in centrifugal and raw sugar exports. One hundred forty-four vessels lifted 445,006 tons of exports during the month, as against 498,105 tons lifted by 155 vessels during the same month last year. Exports during August, 1954, as compared with exports during August, 1953, were as follows: Commodity 1954 1953 Beer............................................... 202 tons 89 tons Cigars and cigarettes............... 29 ” 21 ” Coconut, desiccated.................. 5,674 ” 6,177 ” Coconut oil................................. 6,495 ” 4,931 ” Concentrates containing cop per, gold, silver, lead, and zinc............................................ 395 ” 537 ” Copra............................................ 81,317 ” 55,519 ” Copra cake/meal........................ 5,660 ” 4,824 ” Embroideries.............................. 409 ” 428 ” Empty cylinders........................ 162 ” 188 ” Fish, salted................................. 17 ” Fruits, fresh, mangoes............. 15 ” 11 " Furniture, rattan...................... 396 ” 572 ” Glycerine..................................... 300 ” — Gums, copal................................ 177 ” 91 ” Hemp............................................ 52,576 bales 72,635 bales Hemp, knotted.......................... 122 tons — Household goods and personal effects....................................... 473 ” 395 tons Kapok........................................... 11 ” — Logs............................................... 45,077,025 bdft. 53,288,364 bdft. Lumber, sawn............................ 4,934,484 ” •4,498,125 ” Molasses...................................... 10,730 tons 15,161 tons Nuts, peanuts............................. 45 ’’ — 382 Ores, chrome............................... Ores, iron..................................... Ores, manganese........................ Pineapples, canned................... Plywood and plywood pro ducts ......................................... Rattan, round (palasan)......... Rope.............................................. Shells, shell waste..................... Skins, hides................................. Sugar, cent./raw........................ Sugar, refined............................. Tanning extract (cutch).......... Tobacco........................................ Vegetable oil............................... Transit cargo.............................. Merchandise, general............... 43,352 ” 134,115 ” 2,520 ” 3,324 ” 44,631 121,216 2,928 10,980 85 ” 228 ” 251 295 ” 521 101 ” 61 16 ” 84 45,003 ” 95,253 449 ” — 105 ’’ — 968 ” 1,697 24 ” 20 692 ” 386 744 ’’ 954 THE contention of the Philippine Lumber Producers Association repeatedly printed in the newspapers and local periodicals* that the loss of the United States market to Philippine lumber products is due mainly to high freight rates between the Philippines and the United States is absolutely without foundation, and in spite of the steamship lines (Associated Steamship Lines) having asked the Philip pine Lumber Producers Association, Mr. De las Alas, and various other members of that Association to prove their case, they have been unable and unwilling to do so. They have continued, however, to preach this doctrine. The simple fact of the matter is that, as far as Philippine lumber products taken together are concerned, there has been no loss of markets in the United States. As a comparison, the total log and lumber export from the Philippines in the first half of 1953 was 36,509,669 bd.ft. In the first half of 1954 it was 36,752,625 bd.ft. It is true that the exports of lumber have dropped about 900,000 bd.ft. but the exports of logs from the Philippines have made up for this. It is also true that this market has not expanded very much but this cannot be blamed on the freight rate but more, we feel, on the lack of imagination on the part of the lumber producers who create their own competition in the United States by shipping their logs to Japan where much of it is manufactured into lumber. With a combination of favorable production factors within Japan, this lumber is able to compete in the United States with the Philippine producers' own lumber despite ap proximately a $7 advantage in freight rate in favor of Philippine producers. It is obvious that the answer to the ills of the lumber producers is within their own ranks, but in none of the articles or press releases have they suggested any measures to be taken by their own Association to correct their measures. One basic correction that should be madd is to reduce the amount of logs going to Japan to that required by Japan’s domestic use. The lumber producers decry this solution, stating that it will be ruinous to the lumber industry. Why, they have not said, but merely brushed this off with the statement that they have come to this conclusion but do not have time to explain it. It is obvious that most of the lumber producers have the fallacious idea that by reducing freight rates they will then be able to compete against lumber in the United States made from their own logs shipped from the Philippines to Japan, but do not seem to see that such a reduction in freight rates to the United States would very likely create another reduction in freight rate on logs from the Philippines to Japan, so that the Japanese can compete further with the Philippine producers’ new competitive price in the United States. The only one being hurt by this process is the steam ship owner who, for some reason or other, the lumber producers seem to think can go on forever at a loss. The final test of whether or not the steamship lines can reduce the freight rates can be posed in the following question: If the lumber rates could be reduced and lumber carried at a profit from the Philippines to the United States and as a result of this reduc tion, as the lumber people try to tell us, shipments of lumber to the United States will increase a great deal because of the advantageous competitive position this would put them in, would it not behoove the steamship lines to make this reduction? The steamship owner can see this, but since lumber is being carried at a loss at present, any reduction would make a greater loss, and to increase the amount being shipped would not change this loss to a gain but would only multiply the loss. The lumber produced in Japan, which is competing with Philippine lumber in the United States markets, is made from Philippine logs. These logs must pay a freight rate of about $19 per 1000 bd.ft. to be shipped from here to Japan. Since this freight does not include ste vedoring, the buyer in Japan must pay about $1.25 per 1000 bd.ft. to discharge these logs. This is to say nothing of the transportation from the ship’s side after discharge to the lumber mill. This is an additional amount, although we do not have the figure. Taking into account wast age in sawing logs into lumber, which has been estimated at, conser vatively, 20%, this makes the freight on the basis of lumber from these logs $25.30 per 1000 bd.ft. just to get it to Japan. The freight from Japan to the West Coast is variously quoted at from $20 to $22. Taking the lower of these figures, the total combined freight on the lumber from the Philippines to Japan and Japan to the West Coast of the United States comes to $45.30. As opposed to this, the freight direct •See this Journal for July, 1954, “Lumber” column. on lumber from the Philippines to the West Coast of the United States is $38.50. In spite of this obvious comparison, the lumber producers claim that they are being discriminated against in the matter of freight rates. Instead of this, they are being given an advantage of $6.80 per 1000 bd.ft. over their Japanese competitors. What happens to this $38.50 which the lumber people think is too high? The cost of discharging lumber at Los Angeles and sorting it to the satisfaction of the United States lumber importers and all expenses up to the time of delivery and end of vessel’s responsibility, comes to $26.70. Add to this the incidental small expenses incurred in the Philip pines, not including stevedoring (stevedoring in the Philippines is done by the shipper) which add up to about 50 cents per 1000 bd.ft., we get a net to the vessel of $11.30 per 1000 bd.ft. When it is considered that lumber averages about 2 tons weight per 1000 bd.ft., this is a revenue of $5.65 per weight-ton which must cover the operation of an expensive, modern cargo liner from the Philippines to the West Coast of the United States, a voyage requiring a minimum of 17 to 18 days on the average, plus loading and discharge time and steaming time around the Philip pines. If a ship should fill up with nothing else but lumber at this net freight, the total revenue for the ship for a 30-day trip which in cludes loading, transit time, and discharge, would be $18,645. This is based on about 3,300,000 bd.ft. which would be the capacity of an average cargo liner. The expenses for this 30-day trip, however, would be, at the very minimum, $45,000, meaning a loss of over $26,000. This figure is based on $1500 a day operating cost, which is the very minimum on a foreign flag vessel. American vessels range from $2200 to $2250 a day, and even Philippine flag vessels are about $2000 a day, which would increase the loss enormously. One asks then why are lower freight rates being charged from Japan to the United States—lower, in fact, than the cost of discharging. The reason for this is that, as sometimes happens, when a trade route has too many ships, some lines feel that they might be able to steal a march on others by quoting less than agreed Conference rates. As a result of this, other lines must compete, and a downward spiral is begun, known as a freight war. This is not only so in ocean freight rates, but occurs in almost any trade at one time or another. Steamship lines in this case carry lumber from Japan to the United States at a loss merely in order to keep their position in the trade. Not all lines will do this, however, and from Japan to the United States there are several lines which will not carry lumber because it is a losing business. The freight rates on lumber, even now, have increased somewhat from their lowest point, and indications are that they will continue to increase until a level is reached at which a normal operating profit can be made. It is very significant that no line has tried to cut rates on lumber from the Philippines to the West Coast of the United States and the only reason for this is that those who may have had the inclination have seen the losses they would suffer by doing so in Japan. It is often pointed out that since the start of the Korean War there has been an increase of $9 per 1000 bd.ft. on freight charges for lumber to the United States. No mention is ever made, however, of the reduc tion of $8 made in October of 1949. The record of rate changes in lumber to the Pacific Coast since 1947 are as shown below: Date April May May 2. October 1 April 2 February May 1; Lumber to Pacific Coast — .00 00 50 50 50 50 50 50 $35 36 41 33 42 42 37 1947. 1947 1948 1949 1951 1952 1952 1953 It will be noted that the present freight rates are only $4 higher than at the lowest point since the war. This present freight rate represents an increase of only 37% over the freight rate operative in 1941, which increase is probably one of the smallest in any commodity over those 13 years, rendered all the more surprising when it is taken into consideration that the cost of building ships is up 200% since before the war and cost of fuel, stores, and operating has increased in approximately the same amount. The price of lumber on the other hand has increased 230% over that period! Therefore, when all is considered, it is clear that the Lumber Producers Association’s accusation that the Steamship Lines are charging ex orbitantly for their services, is completely without foundation. Freight Car Loadings By Josb B. Libunao Traffic Manager, Manila Railroad Company LOADINGS of revenue freight during the month of August, 1954, totaled 2,424 cars. This was an increase of 125, or 5.44%, over the loadings during August, 1954, of 2,299 cars. A slight increase in carloadings of cement, copra, iron and steel products, of about 293 cars was offset by decreased carloadings of lumber, logs, and merchandise in less than carload lots of about 391 cars, resulting in an aggregate decline in tonnage for the month. 383 Revenue Carloadings by Class Group Commodities August—Tonnage 1954 1953 Products of agriculture...................................... 6,292 4,946 Animal products.................................................. 344 870 Products of mines............................................... 1,462 1,210 Products of forests.............................................. 8,802 14,549 Products of manufactures................................. 24,813 17,277 Merchandise less than by carloads................ 8,004 12,031 Total............................................................... 49,717 50,883 There were 42 items treated in this review, with 23 items registering increases of 11,048 tons, while 19 items registered decreases of 12,214 tons, resulting in an aggregate decrease of 1,166 tons. The principal items which accounted for the increase were: cement, 5,831 tons; copra, 1,644 tons, iron and steel products, 629 tons, and centrifugal sugar, 563 tons, or a total aggregate increase of 8,667 tons. On the other hand, the important items suffering decreases were: lumber, 4,933 tons; merchandise less than by carload, 4,027 tons; and logs, 828 tons, or a total aggregate decrease of 9,788 tons. The resulting aggregate decrease of these items was 1,111 tons. The decreased carloadings for the month of August, 1954, will continue probably in the coming month as the unfavorable business in the United States, although de finitely arrested, will react favorably only after some time. Our retail trade has also slackened not only due to weak transactions but also due to the adverse effects of the recent retail nationalization law which has already caused the quitting from business of some alien firms. However, in spite of these unfavorable factors, the intelligent and energetic efforts of the new management assures the Railroad of continued favorable business, slight declines notwithstanding. Mining By Henry A. Brimo Presiden t Philippine Gold Producers Association, Inc. SOME interesting statistics concerning gold production for past years are available. These figures show that total world production (excluding Russia) for the past four years has been virtually unchanged. In 1950, the total production reached $845,000,000, and in the following year it declined to $827,000,000. The 1952 and 1953 totals were $851,000,000 and $850,000,000, respectively. Compared to the 1941 pre-war record of $1,265,600,000, the total 1953 world output was only 67% as large. This decline should not surprise anyone familiar with the gold situation, considering that the gold price has been fixed at $35 per ounce for the past twenty years in the face of con tinually rising costs. What may be considered surprising is that world production has remained at a standstill for the past four years notwithstanding the many measures adopted by every gold producing country (excepting only the United States) to help their respective producers. Such aid includes tax relief, outright subsidies, multiple ex change, devaluation, sales in internal premium markets, etc. It is quite apparent, therefore, that no aid, short of a higher price for gold, can stimulate increased production. Just how badly world production would have fared had such relief measures not been granted can be gleaned from the record of American producers whose 1953 output of $69,600,000 was only 33% as large as their 1941 record of $209,200,000. Philippine gold mines, since 1941, have fared worse than the producers of any other nation with the sole ex ception of the United States. In 1953, our gold mines yielded a total of 480,000 ounces of gold bullion, a rate equal to 40,000 per month. This output is a fraction less than 40% of the 1941 production rate of slightly over 100,000 ounces monthly. This extraordinary poor showing, despite govern ment help, is due to many causes, but principally to the vast destruction suffered by the industry during the late war. Several mines and mills which suffered considerably through deterioration and bombing have not resumed operations and may never get back into production; others have found conditions so difficult as to limit their rehabilitation and current operation to well below their pre-war operating capacities. Other reasons exist to account for our poorer showing, as compared to world production, including a more than average increase in operating costs, a general impoverishment of known ore-reserves, and the lack of new mines or new gold fields. We may mention as an exception, in passing, the fact that the Samar Mining Company expects to begin production of its wholly owned gold mine at Masara, Davao, sometime next year. This would open a completely new territory for gold operations in the Philip pines, the first such in many years. It is noteworthy that the International Monetary Fund, in recent announcements, has specifically mentioned two formidable obstacles being encountered by gold pro ducers, namely, high operating costs and labor unrest. Canada, particularly, whose producers suffered a sharp 9% decline in gold output in the past year, blamed labor diffi culties for the temporary closing of several of its mines in 1953. It is apparent, however, that labor problems will continue to plague the industry. In a world of rising prices and wages, the gold-producing industry, faced with a pegged income, and already straining its financial resources merely to stay in production, certainly is in no position to meet further demands for higher wages. This is particularly true in the Philippines. 't’he long awaited subsidy authorized by Republic Act No. 1164 has still not materialized. Just when it will begin is problematic but it should not be long. Gold prices, meanwhile, have remained very steady throughout the past month and currently the price is at approximately Pl 10.40 per ounce bullion. Lumber By Pacifico de Ocampo Secretary-Treasurer Philippine Lumber Producers’ Association, Inc. DURING the month under review, August, 1954, the Philippines exported 38,663,011 bd. ft. of logs and lumber, 21,014,288 bd. ft. less than the preceding month. The big decrease was due to the drop in shipments of logs to Japan, from 40,324,261 bd. ft. in July, 1954, to 22,293,508 bd. ft. in August, 1954, or a decrease of 18,030,753 bd. ft. The exports to the United States and Canada decreased by 1,893,134 bd. ft., from 6,871,272 bd. ft. in July, 1954, to 4,978,138 bd. ft. in August, 1954. Ex ports to all other countries also decreased by 1,090,401 bd. ft., from 12,481,766 bd. ft. in July, 1954, to 11,391,365 bd. ft. in August, 1954. The following are logs and lumber in bd. ft. inspected for export during August, 1954, as released by the Bureau of Forestry: Shipper Destination Volume in Bd. Ft. Lumber Logs Aguinaldo Development U. S. A. 25,400 248,820 Corp..................................... .... Japan 1,075,062 Agusan Timber Corp........... .... Japan 2,000,000 American Asiatic Co............ .... U. S. A. 9,040 Anakan Lumber U. S. A. 50,000 156,922 Company............................ .... Japan 500,000 Atkins Kroll 8s Co., Inc.. . . 2,066,200 Basilan Lumber U. S. A. 560,425 315,871 Company, Hawaii 73,281 Inc..................................... .... Hongkong 137,400 384 October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 385 Bislig Bay Lumber Co., Inc....... Calapan Lumber Co., Inc........... Cantflan Lumber Co..................... Cipriano Luna Lumber Corp.... Constantino Villanueva............... Davao Stevedore Terminal Co................................................... Dee C. Chuan St Sons, Inc......... Dy Pac & Company, Inc.................................................. E. A. Luna Lumber Trading Co. Findlay Millar Timber Company................................. F. E. Zuellig, Inc........................... Getz Bros. St Co.............................. General Enterprises, Inc.................................................. G. S. Manalac Enterprises......... Gonzalo Puyat & Sons, Inc........ Hercules Lumber Co., Inc......................................... Insular Lumber Company................................. L. A. Johnson................................. Luis J. Reyes.............................. Japan U. S. A. Japan Japan Hongkong 105,701 10,000 694,000 599,744 402,797 Japan 499,552 Korea 799,859 Korea 960,000 Formosa 946,000 Japan 499,980 U. S. A. 149,010 Okinawa 500,000 Japan 1,100,000 U. S. A. 32,846 Korea 1,147,284 U. S. A. 7,499 Japan 600,321 Japan 331,844 Japan 250,000 U. S. A. 229,295 Hawaii 25,064 U. S. A. 812,657 Africa 636,719 Belgium 71,143 Canada 16,714 Great Britain 34,486 Guam 6,418 U. S.A. 168,079 U S. A. 9,948 Nasipit Lumber Co., Inc......................................... North Camarines Lumber Co., Inc........................................ Pacific Mahogany 8s Plywood Corp............................................... Pedro Bartolome........................... Ralph W. Dempsey...................... Redwood Company...................... Sanchez Logging Co...................... Sta. Clara Lumber Co., Inc........................................ Sta. Ines Logging Enterprises.. . Taggat Sawmill Co., Inc......................................... Valeriano C. Bueno............................................ Vic Corporation............................. Visayan Sawmill Co., Ltd........... Volcan Lumber 8s Const. Co., Inc.................................................. Western Mindanao Lumber Co., Inc..................................... Woodworks, Incorp........................................... Total, U. S. A. 300,000 353,939 Japan 4,150,000 U.S.A. 118,297 Japan 414,654 Japan 799,913 Japan 66 U. S. A. 107,558 Japan 275,000 Japan 929,762 U.S.A. 22,108 449,951 Japan 869,639 Japan 500,000 U. S. A. 218,827 Hawaii 89,458 U. S. A. 103,656 Japan 750,010 Japan 811,691 Japan 626,419 U. S. A. 51,397 U. S. A. 50,376 Korea 947,346 Japan 3,613,054 U. S. A. 303,802 Hongkong 100,000 Hawaii 85,708 Formosa 285,000 Korea 2,259,999 Okinawa 210,000 5,318,708 33,344,303 COMPARATIVE STATEMENT OF EXPORTS MADE TO DIFFERENT REGIONS OF THE UNITED STATES DURING THE MONTHS OF JULY AND AUGUST, 1954 Period Lumber in Board Feet Logs in Board Feet Twa? Western States Sutes™ Gulf States Others Total Western States States Gulf States All Others Total July, 1954............................... 3,856,367 697,983 50,000 52,105 4,656,455 675,271 219,281 449,989 750,000 2,094,541 6,750,996 August, 1954.......................... 2,192,164 686,099 331,397 112,657 3,322,317 1,075,552 113,604 — 449,951 1,639,107 4,961,424 Difference (Increase +; (Decrease—). . . . 1,664,203— 11,884— 281,397 + 60,552+ 1,334,138— 400,281 + 105,677—■ 449,989— 300,049— 455,434— 1,789,572— Water Trouble? All thev water you want ... all day long ... with this compact, ready-to-plugin water system. Perfect operation re gardless of pressure or elevation from main supply. May be converted easily for deep well service by adding an ejec tor assembly. Get one for your home before the holiday season. ’^SZWATER PUMP — Other Fairbanks-Morse Products — HOME LIGHT PLANTS FARM EQUIPMENT “Z” ENGINES MOTORS GENERATORS MAGNETOS — Exclusive Distributors — SCALES PUMPS DIESEL ENGINES ATLANTIC, GULF & PACIFIC CO. OF MANILA MERCHANDISE SALES DIVISION Robert Dollar Bldg., Port Area, Manila Tel. 3-36-61 (Connecting all Depts.) 386 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 SUMMARY OF EXPORTS DURING AUGUST, 1954, ARRANGED BY COUNTRIES OF DESTINATION IN THE ORDER OF VOLUME OF SHIPMENTS TO EACH COUNTRY Countries of Destination Japan............................................ Korea............................................ United States.............................. Formosa....................................... Okinawa....................................... Africa............................................ Hawaii.......................................... Hongkong..................................... Belgium........................................ Great Britain.............................. Canada......................................... Guam............................................ Lumber Logs Total (Bd.Ft.) (Bd.Ft.) (Bd.Ft.) — 22,293,508 22,293,508 — 6,114,488 6,114,488 3,322,317 1,639,107 4,961,424 — 3,297,200 3,297,200 710,000 — 710,000 636,719 — 636,719 273,511 — 273,511 247,400 — 247,400 71,143 — 71,143 34,486 — 34,486 16,714 — 16,714 6,418 — 6,418 MEMORANDUM for August 11, 1954 Senator Gil J. Puyat MEMORANDUM OF THE PHILIPPINE LUMBER PRODUCERS’ ASSOCIATION, INC. ON THE PROPOSED REVISION OF THE BELL TRADE ACT Totals................................... 5,318,708 33,344,303 38,663,011 (BcLFt.) Japan.... . . . . — United States and Canada. 3,339,031 Other Month Ago Lumber Logs (Bd.Ft.) (Bd.Ft.) — 40,324,261 4,671,311 3,199,961 1,654,322 10,827,444 Lumber Logs (Bd.Ft.) (Bd.Ft.'l — 47,427,295 3,484,992 3,170,875 832,224 338,058 Total........... 5,318,708 33,344,303 6,325,633 53,351,666 4,317,216 50,936,228 Arrivals of logs and lumber in Manila during the month under review, August, 1954, aggregating 9,534,962 bd. ft., decreased by 3,495,538 bd. ft., as compared to arrivals during the previous month of 13,030,500 bd. ft. Prices of lumber in the local wholesale lumber market suffered another decrease during the month under review, August, 1954. Prices of white lauan, apitong, and red lauan decreased to P125-P140, P130-P140, and P150P165 per 1000 bd. ft., respectively, compared with the prices of P140-P155, P150-P160, and P175-P195, the month before. 1^T<HE tariff duties imposed on the importation of Lumber and Lum, I ber Products into the United States are contained in (1) Section 3424 of the Internal Revenue Code, as found in Title 26 of the U. S. Code Annotated and (2) Paragraph 412 of the Tariff Act of 1930 as amended by the various reciprocal trade agreements. 2. Section 3424 of the Internal Revenue Code provides as follows: "Lumber, rough, or planed or dressed on one or more sides, except flooring made of maple (except Japanese maple), birch and beech, $3 per thousand feet, board measure; bur the tax on the articles described in this section shall apply only with respect to the importation of such articles. The tax imposed by this sub-section shall not apply to lumber of Northern white pines (pinus strobus) Norway pine (pinus resinosa), and Western white spruce.” The $3 rate per 1,000 bd. ft., however, has been reduced by the General Agreement on Tariffs and Trade to 751 per 1,000 bd. ft. on granadilla, mahogany. rosewood, end satinwood lumber not further manufactured than sawed and to $1.50 per 1,000 bd. ft. on such lumber which has been further manufactured than sawed. The tax on certain other species of lumber have also been reduced, but the maximum reduction is to 75d per 1,000 bd.ft. 3. The Tariff Act of 1930, Paragraph 412, establishes various ad valorem rates on different manufactures of wood, and these rates have been lately amended by the various reciprocal trade agreements. The rates differ according to specific articles, for instance: Bed Rails and Thresholds 20% adv. Doorjambs 16-2/3% adv. Furniture parts 20% adv. Box Shooks 3-3/4% adv. Crates, cases, etc., not for complete, closed box 16-2/3% adv. Furthermore, the rates have been adjusted by successive trade agree ments. For instance, in the original Tariff Act of 1930, furniture wholly or partially finished and parts thereof were levied 40 % ad valorem tax. By successive trade agreements, this rate has been reduced to 20% on chairs, to 12-1/2% on other furniture, and to 20% on parts of furniture. 4. As can be seen, Timber and Lumber are subject to the specific tax provided for in the U. S. Internal Revenue Cede, but the Code makes the tax applicable only with respect to the importation of such articles. Also, certain specific kinds of lumber such as Norway pine, Western white spruce, and Northern white pine have been declared exempt from this tax. Other species of timber, including mahogany, have had the tax reduced from $3 to 75fi per 1,000 bd. ft. We recom mend that efforts be made to have Philippine Mahogany and other ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION - ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office 1 74 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ Operating: MACHINE SHOPS • STEEL PLATE SHOPS g STRUCTURAL STEEL SHOPS • WELDING | SHOPS • BLACKSMITH SHOPS • SHEET 1! METAL SHOPS • MARINE RAILWAY I Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluypng, Rizal Tel. 6-65-68 October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 387 species of Philippine timber included in the tax-exempt group, or, should this fail, that they be included with mahogany and other timber species paying the reduced specific tax of 75^ per 1,000 bd. ft. 5. As regards the tax contained in the Tariff Act of 1930 on manu factures of wood, the problem is slightly more complicated. The cri terion used to distinguish timber and lumber, on one side, and manufac tures of wood, on another side, is whether the article involved is to be used for only one purpose or to be made into only one product. For instance, sawn lumber, either rough or planed, and either green or air dried or kiln-dried, is free of the ad valorem tax, but when the lumber is manufactured into paneling and a shipment is all of one specified length, it is no longer considered as lumber because it can only be used for one purpose. Likewise, when Bed Rails and Thresholds and Door Jambs are shipped in one specific length, they again become subject to the ad valorem tax. 6. The problem, then, is how to include manufactures of Philip pine wood in the tax-free list of the Tariff Act. Otherwise, the result will be that our exports to the United States will be definitely limited to raw timber in the form of logs or sawn lumber, not further manu factured than planed. This development would be unfortunate, be cause the present trend is precisely to have more manufacturing done in the Philippines in view of: (1) the advantage in wage-rates between United States and Philippine labor, and (2) the gradual but steady improvement of our Philippine sawmills toward producing lumber specially processed to suit the demands of the United States market. Through careful study of the requirements of the American consumers, Philippine sawmills can be expected to ship their lumber in an increasing percentage of semi-finished articles. This would have the great advan tage of eliminating the unnecessary cost of freight on the waste com ponent which necessarily accompanies lumber when shipped rough. Only thus can we hope to augment the value of our exports while at the same time increasing the opportunities for employment in the Philippines. 7. Our recommendations, therefore, are as follows: A. Philippine Mahogany and other species of Philippine timber should be exempt from the specific tax imposed by the U. S. Internal Revenue. If this is not possible, Philippine timber should at least be classified together with mahogany, against which it competes, and should therefore be subject only to the reduced rate of 75f! per 1,000 bd. ft. B. Manufactures of Philippine woods should be exempt of the tariff duties provided by the Tariff Act of 1930. In particular we are interested in such manufactures as the following: Bed Rails, Thresholds, Door Jambs, Paneling, Box Shooks, and Box-Car Decking. The fore going articles are the principal manufactures which can be expected to enter our export trade to the United States, and if specifically exempt or the rates of them reduced, our trade would be safely protected. 8. Finally, it might be well to mention that the Philippine lumber industry has patiently and steadfastly maintained for the last forty years an organized and persistent campaign to create an active demand in the United States market for Philippine Mahogany. This has in volved a heavy expenditure to establish the trade name of “Philippine Mahogany” and to obtain trade acceptance and consumer preference for our lumber. This effort is still being continued in cooperation with the group o£ United States importers organized as the “Philippine Ma hogany Association, Inc.” It is only lately that the detrimental effects of the stoppage of supplies during the Japanese occupation has been successfully overcome, and United States consumers have again shown their ready preference for Philippine timber. The imposition of United States tariffs or excise taxes at this time would greatly increase the marketing problems of Philippine producers and might tend to nullify the good work which had been done in the past years. It is regretted that this memorandum could not possibly be sub mitted sooner than requested in your letter of July 27, 1954, but it is nonetheless hoped that the proposals herein embodied will merit their inclusion in the revision of the Bell Trade Act. Respectfully submitted, (Sgd.) A. de las Alas President MEMORANDUM for Senator Gil J. Puyat ADDENDUM NO. I TO THE MEMORANDUM OF THE PHILIP PINE LUMBER PRODUCERS’ ASSOCIATION ON THE PRO POSED REVISION OF THE BELL TRADE ACT THIS is an addendum to our Memorandum dated August 11, 1954, for the purpose of amplifying our views regarding manufactures of wood. 1. In paragraph 3 of our memorandum, we stated that the United States tariff establishes various rates on different manufactures of wood, and in paragraph 7-B, we submitted our recommendation that either all manufactures of Philippine wood be exempt from the tariff duties or that specific manufactures such as: Bed Rails, Thresholds, Door Jambs, Paneling, Box Shooks, and Box-Car Decking be exempt. 2. Our recommendation for the exemption of specific articles made of Philippine wood was based on the fact that at present the above listed articles are the only ones which enter the Philippines-United States foreign trade. However, upon re-examination, we are now of 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: Norton & Harrison Company 814 Echague Manila Philippine Lumber Manufacturing Company 14-30 Soler St. Manila Insular Saw Mill, Inc. 340 Canonigo, Paco Manila MANILA OFFICE: 603 FILIPINAS BUILDING AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 the opinion that it would be highly advisable if the exemption from tariff duties were to cover a broader description of manufactures of wood. The reason is that it is quite possible that in the years to come there will be opportunities to manufacture some other articles for which a demand might be created in the United States but which might not be effectively marketed if tariff duties were levied upon them. We would, therefore, recommend that the tax exemption be worded in a more general description; such as for instance: 3. Also, it would be well to remember that there is art important potential field for exporting to the United States veneer and or plywood manufactured in the Philippines out of Philippine woods. At present Japan is exporting to the United States large quantities of veneer and plywood, using Philippine woods as raw material, and we believe that in the course of time Philippine veneer- and plywood-plants will be improved and many of the unfavorable economic factors affecting the present situation will be corrected so as to permit the Philippine raw material to be processed in the Philippines. The manufactured articles might then be exported directly to the United States and in that eventuality, it would be well if Philippine exports of veneer and or plywood were not subject to tariff duties. Manila, August 24, 1954. Respectfully submitted, (Sgd.) A. de las Alas President Copra and Coconut Oil By William S. Rice, Jr. Copra Buyer, Philippine Manufacturing Company THE September market was generally steady, and the overall tendency of prices was upward for the first month since January. The immediate cause of rising prices seems to have been European shorts, covering. Their activity was abetted by lack of expected Indonesian copra offerings in Europe and rumors of actual Indonesian sales direct to China. Also, there was evidence that Philippine production had passed its annual peak and could be expected to decrease gradually for the remainder of the year. On the other hand, various other factors moderated the effect of the firmness arising out of European buying interest. American stocks of copra and coconut oil were above normal for this season of the year, and afloat ship ments of copra and coconut oil continued to press American markets. Therefore American buyers did not display much active interest. Even though off slightly, Philippine production continued at high levels, and local sellers had good quantities of copra available for immediate delivery. Copra and Coconut Oil Prices High Low Close Copra: West Coast, c.i.f. per short ton......................... $162.50 $152.50 $162.50 Europe, c.i.f. per long ton, Sept.-Oct.............. $182.50 $173.00 Europe, c.i.f. per long ton, Oct.-Nov............... $183.00 $174.00 $182.50 Manila, fresh, 30-day delivery, resecada basis, per 100 kilos, at bodegas.............................. P28.50 P27.00 P28.50 Coconut Oil: West Coast, c.i.f. per pound, 60-day................ 11-3, 4^ 11-1, 8^ 11-5/8^ East Coast, c.i.f. per pound, 60-day................ 12-1/4 11-1/2 11-7/8 Copra Cake and Meal Prices. The anticipated price improvement did not develop. Large shipments of Fiji Island cake to the American West Coast were credited with depressing that market. Prices had declined $5 at month-end to about $56 per short ton c.&f. West Coast. The immediate prospects for better prices are not very good because large quantities of October and November production are reported to be unsold. Following recent active buying, European buyers appear satisfied for the moment and display little buying interest now. October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 389 Copra Statistics (In long tons) PHILIPPINE COPRA AND COCONUT OIL EXPORTS Copra Exports: July August September United States............. 26,887 35,117 24,304 Europe........................ 33,150 35,200 40,534 Other countries......... 11.934 11,000 8,350 MANILA AND CEBU COPRA ARRIVALS (In metric tons) Manila Cebu Manila and Cebu 1954 1953 1954 1953 1954 1953 13,038 8,448 10,490 12,682 28,528 21,130 11,674 7,741 14,218 13,029 25,892 20,770 10 356 6.897 14.170 17,991 24,526 24,888 10,300 8,305 13,926 13,880 24,226 21,685 14,529 9,202 19,307 10,164 33,836 19,366 13,601 10,541 19,464 14,462 33,065 25,003 17,578 13,620 23,889 18,182 41,467 31,802 19,025 14,641 26,845 20,413 45,870 35,054 17,091 17,027 21,510 19,779 38,601 36,806 Total............... 71,971 81,317 73,188 ’ Coconut Oil Exports: United States............. 5,823 6,495 V.663 Other countries........ — — — Total............... 5,823 6,495 7,663 REMEMBER THE FOLKS AT HOME! A box of February March. . April.. . . May.... Se/tember Totals. February........ March............. April................ May................ July............ September.... Total. Percentage 1954/53 135.0% 124.7% 98 5% 111 7% 174.7% 132.2% 130.4% 130.9% 104.9% 127.192 96.422 168.819^ 140,582 296,011 236,504 125 2% 1954/53 131 6% 152.3% 121.4% 114 8% 178.6% 157.8% 128.2% 131.1% 114.4% ins) * Indonesian Copra 1954 1953 15,116 14,230 17,644 18.884 23,210 19,559 20,673 17,258 36,726 5,854 21,465 17,266 Exports 1954/53 106""’ 93 118 119 627 124 2% 4% 7% 8% 4% 3% CIGARS put up in attractive holiday packing is a much appre ciated CHRISTMAS PRESENT. The cigars can be mailed direct from the factory or delivered from our New York stock, to any place within the United States. Your personal card can be enclosed. PRICES for shipment from Manila by ordinary parcel post, (including postage, the U. S. Internal Revenue Tax to be paid by recipient): 633,291 474,463 133 5% ’Includes coconut oil exports converted to copra. Production and Future Prospects. Philippine ex ports and arrivals at principal ports show a downtrend from the August peak and tend to indicate the onset of the usual seasonal decline in production. Nevertheless, the figure indicate current production is still ahead of that for the same period last year. There has been a corre sponding upward turn in the price which may be expected to continue through the rest of the year. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation Shape Packing Per Box CORONAS 7” SUMATRA 25’s Boite Nature P12.40 id 7” 25’s Boite Nature 11.15 CORONAS SUMATRA 25’s Standard 11.15 id id 50’s Boite Nature 19.75 CORONAS 25’s Standard 9.90 id 25’s Boite Nature 10.40 id 50’s Boite Nature 17.25 id 25’s Tesorito 14.90 id 50’s Tesorito 23.70 ESPECIALES 25’s Standard 8.40 id 25’s Boite Nature 8.90 ALCALDES 50’s Standard 11.00 BELLEZAS 50’s Standard 7.90 THIS report covers the period from August 15 to Sept ember 15, during which time copra and coconuts dipped slightly but continued a general low cost. This is very unusual condition and it is now the fourth consecutive month during which there have been but slight changes in raw-material costs. Desiccated coconut factories have increased produc tion, and a month’s record for the year, 12,000,000 pounds, was shipped. All factories are continuing during the month of September similarly, in anticipation of increased con sumption in the United States during the fall months. This increased production may offset the poor start made during the first quarter of this year. Several companies are working on new products and the industry is watching these developments closely. Labor problems remain the same and generally there is a stable picture for the last quarter of the year 1954. The following shipping statistics are for the month Place your order now. Parcel post shipments from Ma nila should be forwarded NOT LATER THAN THE EARLY PART OF NOVEMBER, to assure arrival at destination before the holidays. PRICES for deliveries ex New York, (all expenses, in cluding U.S. Internal Revenue Tax, prepaid; Recipients pay no charges whatsoever) : Shape CORONAS 7” CORONAS SUMATRA CORONAS SUMATRA CORONAS id id Packing 25’s Boite Nature 50’s Boite Nature 25’s Standard 50’s Boite Nature 25’s Boite Nature 25’s Standard Per Box P12.50 25.00 12.50 22.00 11.50 11.00 of August: Shippers Pounds Franklin Baker Company.............................................. 4,870,375 Blue Bar Coconut Company......................................... 1,244,030 Peter Paul Philippine Corporation............................. 1,922,000 Red V Coconut Products, Ltd...................................... 3,086,000 Sun Ripe Coconut Products, Inc................................. 689,600 Cooperative Coconut Products, Inc............................ 230,900 Ask for Illustrated Folder ALHAMBRA CIGAR & CIGARETTE MFG. CO. P. O. Box 209 — Tel. 2-98-96 31 Tayuman, Tondo—Manila • Total shipped............................................................ 12,051,905 lbs. 390 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 B.F. Goodrich Tubeless Tire /mm SEALS PUNCTURES — New “Life Saver” Tube less Tire can be run over spikes without losing an ounce of air. Beneath the thread there is a layer of special gummy rubber which seals against punc turing objects. When the object is removed the sealant is drawn into the hole, sealing the hole as you drive. PROTECTS AGAINST BLOWOUTS — Sudden blowouts in regular tires with inner tubes are usually caused by the tube being pinched bruise— break in the tire carcass. But a bruise-break in the Tubeless Tire merely causes a slow leak. Plenty of time for a safe stop. It changes Blowouts to safe s-s-s-s-slowouts. .F. Goodrich FIRST IN RUBBER 1 Sugar By J. H. d’Authreau Philippine Sugar Association HIS report covers the period September 1 to September 30, 1954. New York Market. The market decline has continued. At the beginning of the month, sales of Philip pines and Hawaiians were made at 6.05/ for September and October arrival. At the month’s end small sales of Cubans and Porto Ricans were reported for mid-October shipment at 5.80, 5.83/, duty paid basis. A sale of Philip pines, new crop, for January arrival was reported at 5.75/. At the close, the market seemed steady at these record lows for 1954. Effective September 13, refiners reduced the price of refined 15 points to 8.65/. Refined deliveries improved somewhat on fears of a truck-drivers’ strike. Nevertheless deliveries are behind those of last year by some 250,000 tons, and trade analysts look for a total delivery for the year of approximately 8,100,000 tons against last year’s distribution of 8,482,065 tons and against the 1954 consumption quota still fixed at 8,200,000 tons. A quota reduction of 100,000 tons would, it is believed, restore market stability, but there is little available evidence to encourage such a hope- On the United States Pacific Coast, C & H have switched the a 4-day week, which would indicate increased Hawaiian shipments of raws to the East Coast, which in no way helps the situation. Reported sales of actuals totalled approximately 98,096 long tons, of which 19,848 tons were Philippines. Exchange operations for the period approximated 144,900 short tons. Deliveries of refined for the period August 21 to September 25 were 881,975 short tons as compared with 715,767 for August and with 749,660 for September, 1953. Total deliveries for the year to September 25 were 6,075,000 short tons as compared with 6,338,000 short tons on the same date in 1953. On September 25 refiners stocks were 250,977 long tons as against 247,658 on the same date last year. Opening and closing quotations on the No. 6 Contract were as follows: November January March September 1. 5.570 5.420 5.460 30. 5 32 — 5.32 May 5.560 5.40 July ___ ___ ..... 5.53^ Average spot price for September was 5.480952/. Average spot price January 1 to September 30 was 5.610957/. During the month the International Longshoremen’s Union was confirmed as the official representative of New York dockers, and negotiations are in progress for wage and benefit revision retroactive to October, 1953. It is believed that these negotiations are not proceeding too satisfactorily and the possibility of a strike on the New York waterfront is not ruled out. Sugar-beet production in the United States was es timated on September 1 at approximately 2,000,000 tons sugar, raw value, compared with 1,816,000 last year. United States sugar-cane production was estimated at 550,000 short tons, raw value, against 631,000 tons last year. The following “open quota” balances were announced as of September 27: Cuba...................... 201,089 tons Philippines.......... 21,338 tons Porto Rico........... 315,031 ” Hawaii................. 323,292 ” Local Market-(a) Domestic Sugar. Under the con tinuing determination of all elements in the industry to proceed with the establishment of a Single Selling Agency, the local market has made a fair recovery and limited business has been done at P10.50/P10.75 ex Negros ware house. Further strength has been given to the market by the issuance by the Sugar Quota Office of Philippine Sugar Order No. 10, 1953-54 series, permitting mills and planters, holders of 1953-54 Domestic and Reserve quedans, to convert such holdings to 1954-55 Export sugar to be applied against their 1954-55 quota allotments. October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 391 September 8—Victorias Guagua 15—Victorias Guagua 22—Victorias Guagua 29—Victorias Guagua Manila quotations for ex warehouse Manila as an nounced by the Bureau of Commerce were as follows: Txport Domestic 97° 98° 99° P14.80 14.70 P10.00-P10.50 P14.00-P14.50 P15.30-P16.00 P14.75 14.65 P10.00-P10.50 P14.00-P14.50 P15.30-P16.00 P14.50n 15.40 P10.50-P11.00 P14.00-P14.50n P15.30-P16.00 P14.4Cn __________ 14.30 P11.00-P11.50 P14.00-P14.50n P15.30-P16.00 n—Nominal (b) Export Sugar. The market is inactive, with no buyer reported in the market tor old crop, of which there is little, if any, remaining. New crop is quoted by one ex porter at P14.15 for November delivery. No transactions have, however, been reported. Total export shipments for the month are estimated at 24,645 long tons, making a total of 831,532 tons against the 1953-54 crop as compared with 739,130 up to the same date in 1953, and leaving a final balance for shipment of 18,468 long tons. Total Philippine arrivals in New York for the period January 1 to September 25, 1954, are reported at 770,296 long tons as against 672,993 long tons for the same period in 1953. ^World Market. Opening and closing quotations were as follows: Spot Sept. Oct. Jan. March May July Sept. Sept. 1............... 3.20)! 3.17)5 3 18)! 3.20(! 3.16)5 3.16)5 3.17)5 — 30............... 3.24 — 3.25 3 24 3.24 3.24 3.25 3.25)! The improvement in Contract No. 4 has continued, first, following the Cuban segregation reported last month, and, secondly, following revised estimates of world require ments by the International Sugar Council from 3,864,000 metric tons to 4,330,000 metric tons, leaving an apparent surplus of 254,000 tons only, which has been eliminated by voluntary surrender of quotas by various exporting countries, including Cuba. Reliable details of these adjustments have not yet reached us. European crop reports continue unfavorable. Messrs. C. Czarnikow, Ltd. give the following interesting statistics for all Europe, excluding Russia: Hectares sown Sugai—Raw value Year 1937/38...................................... 1,624,379 7,091,000 Year 1952/53...................................... 2,577,079 8,340,000 Year 1953/54...................................... 2,504,488 10,473,000 Year 1954/55...................................... 2,543,554 Est’d 9,331,000 Local buyers of Philippine World-quota sugar are still reported at P13.50 picul ex warehouse basis, but no clarification has been made available yet as to the exact status of barter arrangements with Japan. Japanese in terests report that the Philippine authorities have not yet licensed a balance of 6,000 metric tons, indicating perhaps that agreement has been reached for 14,000 metric tons. No export shipments have yet been reported however. Molasses. While prices on both the United States East and West Coasts remain steady at 12 cents and 11 cents per gallon, the outlook for the 1954-55 Philippine production is considered poor due to poor Eastern demand and to the consequent necessity of disposing of the excess of the 1953-54 bumper crop to other markets at sacrifice prices to maintain storage facilities. Last year’s production was contracted by local exporters at P20 per long ton f.o.b. lighters, but it is not thought that this price can be repeated for the coming crop-production, which is again estimated to be large. 1953- 54 Milling. Twenty-one of the 25 Centrals have finished milling for the 1953-54 crop, with a total production of 1,210,710 short tons. Total production to date is estimated at 1,408,164 short tons. The Centrals still milling are estimated to produce an additional 27,011 short tons, or a total of 1,435,175 short tons for the whole crop. The average of juice purities to date is 83.87. 1954- 55 Milling. Two Centrals commenced opera tions in September; eight are scheduled to commence in October; seven in November; two in December, and six in January, 1955. First reports are of low tonnage ratios. 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 in BRANCHES IN THE PHILIPPINES MANILA Main Branch: Juan Luna Street Port Area Branch: 13th Street PAMPANGA: Clark Field CEBU: Cebu City 392 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 piiihi MUKnmiiisni; I II II I'll II I I IIH 449 Dasmarifias 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 Cutting Apparatus UNITED STATES STEEL EXPORT CORP. ♦ STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING Manila Hemp By Robin Duncan Third Vice-President Conrad & Co., Inc. AT the beginning of September, consuming markets were firm, mainly as a result of lower production of hemp throughout the Philippines. Davao machine cleaned hemp was offered in New York at: I — 17<! Jl — 15-7.8(5 S2 — 16-1.2(5 G — 15-3Z 8(5 During the first half of the month, prices in London and Japan increased steadily, though United States manu facturers were not inclined to follow any advance. In Europe the firmness in hemp was partly offset by a decided weakness in sisal. By mid-September, prices in New York had advanced 1/2/ to 3/4/, after which the market started to decline when heavy selling of loose fiber in Davao was reported. Prices in Europe followed the trend in the United States, and by the end of the month, the market in London was stagnant; there was, however, a fairly steady demand for streaky grades. In' New York, prices had declined to lower than those prevailing at the start of the month, though certain grades, mainly F, S2, and I, were scarce and so maintained their price levels. The Philippines-Japan Trade Agreement was again extended until January 31, 1955. The Japanese financial situation has still not permitted M.I.T.I. to return to the “Automatic Approval” system of licensing imports, and importers’ allocations for the period July-September have only just been released. Before the news of the further extension of the Trade Agreement, considerable business was done on the basis of DA/J1 $43, G $40, c.i.f. Japan, though by the end of September prices had declined in sympathy with those of other consuming maikets. We detail below the usual statistics. Balings—January,'August Inclusive 1954 1953 1952 1951 1950 Davao................................... 314,841 341,238 358,788 339,211 238,643 Albay / Camarines Sorsogon.......................... 82,109 130,966 111,835 184,960 115,300 Leyte Samar...................... 83,837 70,597 84,828 120,176 77,022 All others.. 57,124 64,506 55,994 70,696 50,974 Total............................ 537,911 607,307 611,445 715,043 481,939 Exports—January;August Inclusive United States and Ca nada.................................. 123,297 Continent of Europe . . . . 119,627 United Kingdom............... 78,683 Japan.................................... 131,929 South Africa...................... 5,800 China................................... 2,960 India..................................... 4,791 Korea................................... 17,693 Australia and New Zea land................................... 6,264 Others................................... 5,417 223,619 224,783 429,963 240,564 124,615 74,829 107,392 112,653 80,390 61,698 126,091 54,009 156,426 104,984 87,108 55,630 6,510 6,750 13,115 4,125 1,495 5,143 3,930 9,258 5,930 3,300 4,632 4,030 . 1,580 — — 3,100 2,200 1,150 1,300 1,631 570 160 Total............................ 496,461 597,774 515,360 778,792 452,737 Tobacco By Ricardo Padilla Satrustegui Cia. Tabacalera NATIVE TOBACCO. There is little tobacco left in the hands of farmers as the demand is heavy for the short crop. Prices continued to be attractive during September and slightly higher than during the previous months. Some provincial dealers prefer not to sell as yet, hoping to get still better prices in the coming months. Leaf-tobacco buyers in Manila were offering Pl 10 per bale October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 393 to L-3 agents in the Cagayan Valley as a buyer’s offer, but no sales were recorded, showing that there was still a strong sellers’ market. Greatest interest of the Cagayan Valley was in the extensive plans for the next-crop seedbeds. In order to avoid last year’s destruction of seedbeds, first by a typhoon and later by a flood, farmers were making plans to prepare seedbeds every 10 days in order to be able to transplant at the right moment and, also, to sell seedlings to other small growers. Many precautionary measures were being taken to prepare seedbeds in different areas so as to avoid destruction of the higher-situated seedbeds by strong winds, or of the lower ones by floods. According to a rough es timate, we could say that due to the very attractive prices paid this year to leaf-tobacco growers and, also, due to the big demand of the export trade, the increase in tobacco acreage willl be some 30% higher than last year. However, the crop, of course, will depend more on the weather than on the acreage planted. Several tobacco plantations in Isabela province were again using fertilizer, trusting to obtain an ideally fruitful composition after considerable experiment and study of soil formation. Last year’s experiments proved a higher yield per hectare, with the same quality characteristics of Isabela’s fine tobaccos. Hardly any tobacco is left on the Luzon west coast (La Union, Pangasinan, and Ilocos) in the hands of dealers, most of the tobacco being already in Manila. In the Ilocos, La Union, and Pangasinan regions it was difficult as yet to make an estimate of the increase in acre age. It is believed that in La Union, 1/4 of the acreage planted will be given over to the local variety and 3/4 to native Virginia, while in the province of Pangasinan, 1/4 will be for Virginia and 3/4, for the local variety. The Visayan region follows the developments in Luzon very closely. Prices were more or less the same as last COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. HEMP AND COPRA EXPORTERS STEAMSHIP AGENTS * Singer Building Port Area, Manila, P. I. ¥ BR ANCHESi Davao • Tacloban • Cebu • Tabaco IT’S STRANGEBUT TRUE! Our Confidential Surveys Disclose that Many Business Firms, otherwise Most Modern and Efficient, Handle Cash and Bank Deposits in the Most Careless Ways Imaginable. The Full Burden is Placed on Luck and Insurance. we can Correct this for you............ and Save you both Money and Worry. Ask us for a Free, Confidential Survey. ARMORED CAR DEPT. — PROVINCIAL AIR-DROPS SECURITY DELIVERY SERVICE ------------------- 1 IM C.------------------613 M. H. Del Pilar Telephone 5-63-90 American Management and Methods Subscribe to the JOURNAL To Keep Your Files Complete 394 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 It Doesn 't COST to AtR-ADYERTfSE... It PAYS ! DZRH __________________ | 1 .,7"] M odkUed B Madcatfong C otnpong [BZMBj ozn The [jrifxndtLbn/ R ' . I ^eauti[ul ------ TO SEE -------TO TOUCH ____ TO OPERATE Modern in design, the MARCHANT is the only Amer ican calculator with dials for checking keyboard 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, sim plicity, speed, and silence. MARCHANT CALCULATOR ERLANGER & GALINGER, INC. 123 T. Pinpin off Escolta Tel. 3-21-61 month, and little tobacco was left for speculation. Tobacco acreage is undoubtedly going to be increased since prices were attractive to farmers and some of the Visayan to bacco was of surprisingly good quality. Virginia Tobacco {locally grown). The acreage of Virginia plantings will increase considerably because of the great demand for this type of tobacco, but Virginia cigarette factories claim that not all kinds of locally-grown Virginia are acceptable to the public and that only the higher grades will be in demand. In the Ilocos provinces, there is a tendency toward increasing the acreage for native-grown Virginia, and about 20 flue-curing barns have been constructed in different localities. A well-known foreign concern is experimenting with new types of Virginia seed. Cigar and Cigarrette Factories. Contradictory statements are made as to the stocks of Virginia tobacco in the Philippines. Many factories claim they will have to close down if no more Virginia is imported from the United States, while some government sources state there still are enough stocks of Virginia to last until 1955. A raid was made on the Sta. Ana Cigar & Cigarette Factory at Hagonoy, Bulacan, where counterfeit internal revenue stamps and several imitation brands of cigarettes were being manufactured. It is a high hope that this good work against tax-evadefs and counterfeiters will be relent lessly continued. Rice By Charles O. Houston, Jr. Director, Graduate School, University of Manila AS supply in production sectors dwindled rapidly at the beginning of the month, all old-crop varieties registered increases over a wide range, from 25/ to Pl.20 per sack (56 kilos). Wagwag, from the South, re mained relatively unchanged. Palay prices, in producing areas, increased: Nueva Ecija ordinario, from P9.70 to P10.60; raminad, P10.00 to Pll.60; wagwag, P11.70 to P13.00. Distribution of NARIC rice (selling at 85/ and 60/ per ganta for macan no. 2 and imported), had some effect upon volume in the wholesale market but did not check the upward trend in prices. The second week of September was marked by steadi ness in the market, except for wagwag which increased 25/ (per 56 kilos). The greatly expanded distribution of NARIC rice in the provinces was generally believed responsible for this steadiness. However, raminad second class and Thai second class, disappeared from the market and macan, both classes, was difficult to secure (as had been the case since the middle of August), not reappearing in any quantity on the general market until the end of the month. This clearly indicated the rapidly dwindling supply in producing centers in Luzon. The third week of September was marked by a growing weakness in the sellers’ market, due to increasing arrivals from the South and the expanded distribution of NARIC rice. All varieties suffered losses over a wide range, from 25/ to P2.00, per sack (56 kilos). As harvest was begin ning in Mindoro and the Bicol, the heaviest demand re mained in the Manila metropolitan area, where prices per ganta had as yet not been reduced to the corresponding level of the wholesale market. Palay prices followed the general trend and fell off by 50/ to 80/ per sack for most available varieties. The higher-class varieties continued their upward trend in the retail market. The fourth week of September continued to be marked by the weakness of the preceding week. Cotabato and Davao shipments were heavy, NARIC rice was reduced to 55/ per ganta, newly-harvested Bicol varieties appeared on the market, so that all varieties in the wholesale market dropped over a range from 25/ to Pl.00 per sack. Macan October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 395 first class (from the old crop), which had been absent from the market for a month, also reappeared on the wholesale market, and Southern macan, raminad, and elonelon also appeared by the middle of the week. The price-trend seemed definitely to be lowering or at least levelling off, on the wholesale market, but retail prices by the end of the fourth week had as yet not registered significant de creases. By the end of the month, several new varieties ap peared on the market, those from Cavite being the highest in quality and price (as much as Pl.35 per ganta). These special varieties hardly ever appear on the wholesale market, and are generally sold through retail outlets to “old cus tomers” of the dealers. Their normal price is so much higher than the usual varieties in demand that they are not used in assessing the market picture. Their significance, in a restricted class, appears important and this column is endeavoring to gather some information on their distri bution. As far as taste is concerned, they are far superior to anything else on the market. The national scene continued confused. On September 2, it was announced that the NARIC had discarded the plan to finance importation of 25,000 tons of rice and had instead placed the burden of financing this importation on private enterprise. Bids, which had been submitted to the NARIC, were in the process of evaluation, when Eco nomic Coordinator Alfredo Montelibano informed them of a directive from Malacanang ordering the closure- of bids to the public, the Cabinet having decided that NARIC was to confine its activities to local purchasing. Under the new plan, private firms would be responsible for the importation and distribution of imported rice, letters of credit to be opened in the name of the NARIC and exemp tion from the 17% exchange tax to be granted. Such rice was to be stored, free of charge, in NARIC bodegas and was to be distributed by the PRISCO, similarly. The rice was to be sold under the control and supervision of the NARIC and a penalty of Pl.00 per ton was to be imposed for every day of delay beyond the end of September. As of September 2, only three importers had expressed willingness: Norson Company offered to sell Pakistan “Kangni” at 52/ per ganta (ex-warehouse); C. A. Roxas and Overseas Factors offered to sell the same rice at 51/. Norson offered 10,000 tons; the other two, 5,000 tons each. Later it was announced that the NARIC would sell this rice at about 60/ per ganta, buying it from importers at 49j/ to 52/ per ganta. On September 10, President Magsaysay created a rice purchasing committee, composed of the Secretary of Agri culture and Natural Resources, the Director of NARIC, the Chairman of ACCFA, the PRISCO General Manager, the Director of Public Schools, and the Chief of Constabu lary, to handle the purchase of rice, expressing his impatience with the NARIC board’s failure to properly solve the vexing situation. Later in the month two prospective importers of Thai rice withdrew from the plan and fear was expressed at the same time that the Pakistan rice would not arrive at the expected date, to hold the price at the level created by the President previously, and Director Chioco stated that only C. A. Roxas could guarantee delivery of Pakistan rice by the middle of October. The NARIC then threatened to sue the two reluctant importers for “taking lightly whatever commitments they may have made with the Corporation.” This charge was denied by one of the importers, who stated in reply that it was the NARIC which had changed the conditions of the contract after initial steps had been agreed upon. At the end of the month some discussion ensued over the possibility of frauds being committed in connection with importation of Thai rice and reports were also cir culated that the rice ordered from Pakistan was defective in some respects. STANDING STYLE PAPER CUTTERS of different sizes from 9” to 36” for immediate delivery. Kraft and Manila Wrapping Paper in various size width rolls for above PAPER CUTTERS car ried in stock at all times. J. P. HEILBRONN CO. (.Established 1909) PIONEER PAPER DEALERS IN THE PHILIPPINES 575 Atlanta Street, Port Area (3-36-17 Manila e S> (3-36-18 Private exchange connecting all Depts. THE PEN OF PROVED) PERFORMANCE Frawley Phil. Corp., Wise Bldg., J. Luna, Manila Telephone: 2-77-62 There’s nothing like PAPER-MATE, the pen of proved performance. Not just an ordinary ball pen, it guarantees you unequalled writing; excellence! Get PAPER-MATE now. 396 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 SERVICE with ATISFACTION CUSTOMS BROKERS WAREHOUSEMEN TRUCKING PACKING & CRATING FREIGHT FORWARDING SHIP HUSBANDING CARGO SUPERINTENDENCE AIR CARGO AGENTS TRAVEL AGENTS FIELD WAREHOUSING LUZON BROKERAGE COMPANY Derham Bldg. Cables: Telephone: Port Area LUBROCOIN 3-34-31 Caterpillar DOES ITS SHARE! 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. BOSTON*23rd Sts., PORT AREA, MANILATel.3-37-53 hear BACOLOD • ILOrLO • CEBU • DAVAO • ZAMBOANGA DADIANGAS, COTABATO • CAGAYAN DE ORO CITY The President ordered the NARIC to sell rice at 55^ per ganta, and by the end of the month such sales were proceeding, exercising a general salutary effect upon the retail market. The President stated quite exactly that it was not important for NARIC to make a profit; what was important was to get rice to the consumer as cheaply as possible and in sufficient quantity. The President again thus displayed his earnestness and seriousness of purpose in ending in whatever fashion at his disposal the muddle created by bureaucratic tampering with the laws of eco nomics. RICE PRICES (Per sacfc-Stf kilos AND PALAY Ms Week 1.02 Ago .98 1i Year Ago r Hi Hl 11? HS 1? b’ms 1“ II8 l.°of IIS Ji Palay (Ordin.): Week of Sept. 6-11 "‘ms 1.09 1.02 Io If 19« Hi Hi Hi Ho 1? Ms z H? Ho? II8 1J Palay (Ordin.).- .50 .48 .48 .48 .12 Week of Sept. 13-18: 1.13 1.09 .95 If 1? Hi 1.18 Hi M°o 1? "Ms z Hi If Palay (Ordin.).- .53 .50 .48 .48 .12 1C" 20-25: Week Ago It 1.13 1.13 donth Ago Year Ago .11 Hi Hi H? H? 11 Z z Hi 11? If Palay (Ordin.): .53 .53 .48 .48 .12 MACAN (56 kilos) and PALAY (44 kilos) EBF jt frlF"' a “ir ss October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 397 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 Parts.. Bicycles.............. Trucks.............. Truck Chassis............... Truck Parts.......................... Building Materials (Total). . Board, Fibre........................ Cement............. Glass, Window............ Gypsum............... Chemicals (Total)........ Caustic Soda......... Explosives (Total)... Firearms (Total)... Ammunition.......... Hardware (Total). Household (Total). . . . Machinery (Total)......... Metals (Tbtal)............................ 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) .. Bottling, Misc. (Total).................... Cleansing and Laundry (Total) Entertainment Equipment (Total) . . Livestock-bulbs-seeds (Total)............ Medical (Total)............................ Musical (Total)................ Office Equipment (Total). Office Supplies (Total)... Paper (Total)....................... Photographic (Total)........... Raw Materials (Total).. Sporting Goods (Total). Stationery (Total)......... Tobacco (Total)............. Chucheria (Total)................ Clothing Apparel (Total)......... Cosmetics (Total)... Fabrics (Total).... Jewelry (Total).... Leather (Total)........ Textiles (Total)............ Twine (Total)........... Toys (Total)..................................... General Merchandise (Total)............. Non-Commercial Shipments (Total).. . Advertising Materials, Etc. (Total).......... A 1954*' 1,931,406 363,974 146,470 2,331 68,348 281,196 383,464 15,507,471 2,974 11,448,871 893,032 5,750,478 209,944 A 1953’ 1,344,620 268,410 329,779 191 98,734 401,396 38,301 . 20,966,369 17,621,408 686,605 45,359 8,407,233 1,191,159 138 138 5,426,971 1,011,994 1,932,857 10,691,246 53,968,400 29,037 858,969 3,635 19,992,087 44,589 6,188 9,596 450 15 9,955 543,344 30,193 182,048 35,382 303,320 271,450 677 12,776 2,981 4,618,113 1,158,745 2,604,860 11,826,723 72,989,954 98,455 874,670 3,183 26,593,285 60,119 5,053 4,582 21,680 5,146 16.795 319,274 15.796 112,088 42,897 678,617 646,039 342 973,988 110,289 3,179 343,180 853,240 56,977 103,980 25,885 3,845,914 12,983 2,344,730 3,203 155,169 368,343 974,120 98,062 6,137 356,472 402,681 46,569 37,705 34,503 5,850,393 83,599 1,704,824 13,465 548,622 2,365,476 86,517 400,391 5,362 263,540 134,111 2,932,503 54,800 28,138 1,514,766 137,665 40,202 85,493 570,831 57,525 878,672 76 165,728 3,254,432 45,824 26,232 523,054 102,705 17,528 19 LUZON STEfflORING COMPANY, INC. Marine Construction and Repairs, Salvage Contractors, Lighters, Towboats, Waterboats, Ship-Chandlers and Provisioners. * P. O. Box 582 Cable Address: Manila, Philippines “LUSTEVECO” 1IIILE0II 1Dd I'llIII'INI iif Pimm Hemp Exporters Steamship Agents 207 Myers Building Port Area, Manila 398 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 MANILA MACHINERY & SUPPLY CO., INC. 233 David & 675 Dasmarinas Sts. Tcls. 3-89-93—3-81-76 P. O. Box 607 M ANIL A “SERVICE STARTS WITH THE SALE” REPRESENTING (Partial List) • BRIGGS-STRATTON—GASOLINE ENGINES • A. P. GREEN REFRACTORY PRODUCES • DELTA—WOODWORKING MACHINERY • MSA—MINE SAFETY EQUIPMENTS • JEFFREY—CONVEYING EQUIPMENTS • ENTERPRISE—DIESEL ENGINES • KERMATII—MARINE ENGINES • JOY—MINING MACHINERY • HERCULES—POWER UNITS • TA Y LOR—T11 ER MOM ETER S • GALION—ROAD ROLLERS • WALWORTH—VALVES • TOLEDO—SCALES • DEMING—PUMPS MECHANICAL SUPPLIES —MACHINE TOOLS We specialize in color work thru letterpress, and our rates are down to a new low! ★ Ask for a salesman to see you. McCullough PRINTING CO. Letterpress Pace-Setters for 55 Years (A DIVISION OF PHILIPPINE EDUCATION CO.) 1104 Castillejos, Manila • Tel. 3-22-51 Food Products By C. G. Herdman Vice-President, Marsman S’ Company, Inc. DURING the month of September arrivals of imported food staples were far above normal. There were quite heavy arrivals of canned meat, particularly corned beef, liverspread, Vienna sausage, and potted meat, as well as trial shipments of chopped beef, a new item in this market. Imports of some items of canned meat, in fact, were so large that supplies now on hand will not be con sumed for several months and importers are selling at cost or below as they find it necessary to move stocks in order to meet bank commitments. Arrivals of canned fish from California were com paratively small, but on the other hand very ample quan tities have arrived from South Africa and from Japan. Canned milk, both evaporated and sweetened con densed, also the various packs of powdered milk, were received in very good quantities, and stocks on hand today are more than ample. Wheat flour arrivals during the month in the Philip pines were well above 800,000 bags, against an estimated consumption of 600,000, and this commodity also is tempo rarily in oversupply. There were several shipments received of fresh frozen meats, and at the same time fairly large numbers of live cattle intended for slaughter were imported. It is evident that meat supplies are at present in good supply through out the country. Imports were much larger than normal on canned fruits and vegetables and miscellaneous items of foodstuffs. All in all, local markets are today better supplied with prac tically the entire range of imported foodstuffs than has been the case for quite an extended period. tt is unfortunate that President Magsaysay has not yet A taken action to implement the Act passed in the Special Session of Congress to eliminate the 17% exchange tax on imports of wheat flour. Unless action is taken promptly, flour importers will unavoidably be facing very material losses and will of necessity be forced to increase the selling price of flour to bakeries and other consumers, which will, of course, result in an increase in the price of various forms of bread to consumers. An increase of Pl per 50-lb. bag on the wholesale price of flour to bakeries, would appear inevitable, and this would probably force an increase of approximately 15/% to 20% in the bakery prices of bread to consumers; this would mean a marked increase in the cost of living of the average family. zt*he retail trade throughout the country shows no improvement whatsoever. In fact, retailers complain that sales are poorer than for a long time, due to the marked decrease in individual purchasing power. Prices on abaca and copra have improved slightly, but money in circulation appears to be very short. Provincial collections are con stantly more difficult. Textiles By A. Margolles Acting General Manager Neuss, Hesslein Co., Inc. SEPTEMBER has seen a marked change in the New York textile market, with a general strengthening in all sections backed by firm raw-cotton prices. On September 8 the U.S. Department of Agriculture reported an estimated new cotton crop of 11,832,000 bales, or 838,000 bales less than the estimate of August 1. Since then, there have been reports that the crop is continuing to deteriorate because of drought and excessive heat in October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 399 some of the producing States, and it is expected that the new estimate, due on October 8, will show a further decrease. Last year’s production was 16,465,000 bales, and the aver age for the 10-year period, 1943/52, was 12,484,000 bales. This year’s crop was grown under rigid Federal plant ing allotments and marketing quotas, designed to keep the surplus to a reasonable figure. Another bullish report on October 8 will tend to keep raw-cotton prices strong, with possibilities of registering further advances. The Manila market has experienced some improvement and considerable demand for standard articles like printed percales, denims, twills, etc. Sales have been more active, but collections are still slow. Further improvement and increasing activity is envisaged with the approaching Christmas season. During September the banks granted special extra quotas to producers in accordance with the Central Bank policy, and the volume of business for this section has been good. Old and new importers, however, have not been assisted in this manner, although their claim to import larger quantities of necessary and essential articles is still there. This is substantiated by the fact that the monthly average of arrivals for the first 9 months of this year has been 16,048 packages, whereas for the whole of 1953 it was 18,998 packages. Arrivals from the United States totalled 19,591 pack ages, of which 7,736 were cotton piece goods; 1,710, rayon piece goods; 3,823, cotton pound goods; 1,881, rayon pound goods; and 4,441, yarns. This represents an increase over the corresponding figures for the last few months. Arrivals from other countries totalled 5,584 packages, out of which 3,521 came from Japan, 1,434 from Hongkong, and 629 from Europe. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda AMONG the recent decisions of our Supreme Court are the following items which may be of interest to busi ness men: In the case of Del Rosario vs. Nava and Alto Surety Co. (G. R. No. L-5513, August 18, 1954), the surety Com pany was absolved from liability on an attachment bond because claim was not made in the proceedings in the case before judgment was rendered. The Court said: “x x x we hold that while the prevailing party may apply for an award of damages against the surety even after an award has been already obtained against the principal, as ruled in Visayan Surety and Insurance Corp. vs. Pascual, G. R. No. L-3694, still the application and notice against the surety must be made before the judgment against the principal becomes final and executory, so that all awards for dam ages may be included in the final judgment. Wherefore, the Court below committed no error in refusing to entertain the appellant Nava’s application for an award of damages against the appellee surety ComGABERMAN & HAGEDORN, INC. Stock Brokers Members MANILA STOCK EXCHANGE NEUSS, IDi & CO., IB 75 WORTH ST., NEW YORK, N.Y. FOREMOST SUPPLIERS OF TEXTILE FABRICS THROUGHOUT THE WORLD for 86 years and FOREMOST SUPPLIERS OF TEXTILES TO THE PHILIPPINES FOR 51 YEARS. ♦ • FAUST 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 DASMARINAS MANILA PIIONE 3-99-71 Cable Address “NEIIESCO” • Lift and tilt are hydraulic ’•o<” 10 10-000 <•>•• • Automotive controls make driving easier, faster, 6afer' • Welded heavy steel plate construction • 68" high model for truck and trailer loading has 100" lift Rooms 320 to 324 3-80-48 Singson Building Office Tels. 3.84_79 9 Plaza Moraga, Manila Exchange Tel. 3-98-28 THE EDWARD J. NELL COMPANY ANDA Corner ARZOBISPO & STA. LUCIA, INTRAMUROS P. O. Box 612 Manila Tel. 3-21-21 400 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 THE ROUTE OF THE BEARS Serving THE PHILIPPINES JAPAN HONGKONG pany ten months after the award against the principal obligor had be come final.” In the case of National Organization of Laborers vs. Roldan et al. and Rizal Cement Co. (G. R. No. L-6888, August 31, 1954), the Supreme Court reiterated a ruling to the effect that acquittal of a laborer in a criminal case does not prevent the Court of Industrial Relations from conducting its own hearing and finding that the laborer is guilty of acts justifying dismissal or refusal to reinstate him. The Court said: “x x x we hold that the acquittal of an employee in a criminal case is no bar to the CIR, after proper hearing, finding the same em ployee guilty of acts inimical to the interests of his employer and jus tifying loss of confidence in him by said employer, thereby warranting his dismissal or the refusal of the company to reinstate him. The reason for this is not difficult to see. The evidence required by law to establish guilt and to warrant conviction in a criminal case, substantially differs from the evidence necessary to establish responsibility or liability in a civil or non-criminal case. The difference is in the amount and weight of evidence and also in degree. In a criminal case, the evidence or proof must be beyond reasonable doubt while in a civil or non-criminal case, it is merely preponderance of evidence. In further support of this principle we may refer to Article 29 of the new Civil Code (Republic Act 386) which provides that when the accused in a criminal case is acquitted on the ground of reasonable doubt, a civil action for damages for the same act or omission may be instituted where only a prepon derance of evidence is necessary to establish liability. From all this, it is clear that the CIR was justified in denying the petition of Rivas and Tolentino for reinstatements in the cement company because of their illegal possession of hand grenades intended by them for purposes of sabotage in connection with the strike on March 16, 1952.” In the case of Cruz v. Del Pilar and Luzon Surety Co., Inc. (G. R. No. L-6671, July 27, 1954), in which a mis take was made in the wording of a bond to lift an attach ment by making it read costs and damages to defendant for wrongful attachment, instead of covering loss sustained by plaintiff by reason of lifting the attachment, the Supreme Court held that the title and purpose for which the bond was issued should govern. The Court said: "Having come to the conclusion that the title and purpose for which the bond was issued, and not its mistaken language, should govern the responsibilities of the parties thereto, we will now deter mine whether the writ of execution could issue against the defendant surety. The bond was filed evidently under the provisions of Section 12 of Rule 59 of the Rules of Court, because it was filed by the defendant to secure the lifting or discharge of the writ of attachment. Mutual mistake and good faith having attended the drafting of the body of the bond, the terms thereof should be declared, as we hereby declare the same, to be that the defendant and surety are jointly and severally liable for the amount of the judgment, in accordance with the provisions of Section 17 of Rule 59. With this modification of the bond declared and ordered, the validity of the writ of execution ordered against the surety becomes evident.” Philippine Safety Council By Frank S. Tenny Founder and Executive Director SAFETY items currently of importance include Civil Defense and Disaster Organization (see article else where in this issue), assistance to the city government in traffic matters, new company safety programs being U S. WEST COAST PORTS FAST - REGULAR - DEPENDABLE UNITED STATES LINES, INC. GENERAL AGENTS PORT AREA MANILA MOTOR SERVICE CO., If. AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area Tel. 3-36-21 October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 401 undertaken, increased liaison between business elements and government officials on safety matters, and increased interest in fire protection and arson suppression, as well as labor legislation. New firms joining the National Safety Movement are the Manila Theaters Association, Pacific Airways Corp., Detective & Protective Bureau, H. Lyons Con struction Co., Main Theater Inc., Luxaire Products, and Trans-Asiatic Airlines. Among new individual members are R. J. Gonzales (Myrugia Perfume), Brice Shafer (A.P.L.), Peter C. Richards (OINIC), newsmen Robert S. Hendry and Manuel Vijungco, Dr. O. Villacorta (Modern Phar maceutical Products), and Dr. Valdemar Bough, DDS. Traffic ‘‘Stop” signs are being erected about the city, completely faced with “Scotchlite” reflectorized tape. To date, 94 have been donated by the Manila Trading & Supply Co., La Suerte Cigar and Cigarette Factory, Philippine Match Co., Philippine Long Distance Telephone Co., Wm. A. Chittick Co., and San Miguel Brewery, .Inc. This campaign has met with considerable interest. The Manila Times Publishing Co. also donated 20 sets of the tape to the Office of the City Engineer, for application to road-rollers and other heavy equipment operating at night. Conferences have been arranged by the Council between Eleuterio Adevoso, Secretary of Labor, and various member associations and companies. This has resulted in better coordination and understanding all around. The Secretary has been very cooperative and receptive to suggestion from business leaders. Special safety work of one kind or another is now un derway in several firms under PSC direction; some of these are Philippine Match Co., Manila Trading & Supply Co., Lyons Construction Co., San Miguel Brewery, Enriquez Private Detective Agency, Luzon Brokerage Co., 7-Up Bottling Co., Army and Navy Club, Fleet Landing at Port Area, Armed Forces of the Philippines, and Caltex (Philip pines). The Council technical staff has been retained to handle all safety and security factors in connection with the opening of the Batangas Refinery later this year. The ‘‘Free Car-Safety Check” being conducted by Manila Trading, Fabar Inc., and Ramcar has accumulated the following statistics: Total cars tested, 5,026; cars found in safe condition, 1,097. The remaining 3,929 were found unsafe in one or more ways. However, one encourag ing factor noted is that about 40% of the owners take im mediate necessary steps to put their cars in safe operating condition. Manila’s new Arson Squad Chief, Capt. Wenceslao Ealdama, was honored by the Council recently at a lun cheon attended by members especially interested in arson suppression. Considerable improvement is expected in this problem. Two Manila Police Department lieutenants, Enrique De Leon and Gerardo Tamayo, left for Chicago recently to attend the 1954-55 course in Police Traffic Administration at Northwestern University. Taxicab service has been restored to the Escolta after improvement had been noted in the traffic situation there. An internal security survey has been completed for the American Cham ber’s new offices in the Elk’s Club Building. Many other activities are underway, too numerous to mention here. 2147 Azcarraga Telephone 3-25-19 METROPOLITAN INVESTIGATIVE AGENCY, - - - - - - - - - - - - - - - INC.- - - - - - - - - - - - - - - - PILFERAGE AND ARSON INVESTIGATIONS LIE DETECTOR TESTS-DOCUMENT ANALYSIS JOHN E. CURTIN, GEN. MGR. PASIG RIVER BODEGAS GENERAL BONDED WAREHOUSES * SOUTHWESTERN SUGAR & MOLASSES CO. (FAR EAST), INC. MOLASSES BUYER 145 Muelle de Binondo Tel. 2-63-10 PHILIPP1NE-VIEW Christmas Cards & Silhouettes —that chords the old well-loved greetings in • Faithful reproductions of appropriate Philippine Christmas scenes on dis tinctive cards and folders. a new way. WONDERFUL VALUES AT AS LOW AS {COMPLETE WITH ENVELOPES') per doz. P.SO (postage P.30) 402 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 NOW AVAILABLE LYON Steel Folding Chair Features COST OF LIVING PRICE INDEX FOR WAGE EARNER'S FAMILIES IN MANILA, BY YEAR AND MONTH, 1935-1954 (1941 = 100) COMFORTABLE LONG LIFE ROOMY TWO HEIGHTS SAFE STRONG NONSLIP —Curved back is tailored to fit body. —Special seat reinforcement holds seat in perfect alignment. —Wide, deep, curved seat accommodates largest person. —Standard folding chair height (seat 17” from floor) and dining room -height (seat 18" from floor). —Pinch-proof hinges and smoothly round ed edges. —Channel steel frame is same type used in sky-scrapers to withstand strain. —Legs have white live rubber feet to pre vent slipping and protect floors. FOLD COMPACTLY —Require minimum storage space when not in use. CHOICE OF COLOR —Available in walnut or taupe baked-on enamel. F. H. STEVENS & CO., INC. El Hogar Filipino Bldg., Manila Telephone 3-95-75 Old 6oK> CIGARETTES P. LOBILLARD CO. ESTABLISHED 1760, U. S. A. Bureau of the Census and Statistics Year and All Food House Cloth Fuel, Light Miscel Purchas Month (100)’ (63.43) (11.96) ing (2.04) and Water laneous (14.84) ing Power 1935........... . 89.) 89.17 96.4 89. 7 85.1 90.2 1.1148 1936........... . 87.zI 88.3 96.6 88.4 77.5 87.7 1.1442 1937.......... . 88.JJ 88.3 96.4 88. 2 85.2 89.5 1.1261 1938.......... . 92.11 92.1( 96.8 92. 2 88.8 92.5 1.0858 1939........... . 93.2 94.8 97.'7 94.8 84.3 92.9 1.0730 1940........... . 97.31 98.!) 98.!9 99. 0 89.9 96.7 1.0277 1941.......... . 100.() 100. () 100.19 100.0 100.0 100.0 1.0000 1945........... . 691.5 834.3 236. ■4 1448. 4 379.1 650.9 0.1446 1946........... . 521.jf 649. ‘I 236.'4 649. 7 348.2 383.3 0.1917 1947.......... . 387.5! 415.'I 453.!9 256. 8 310.0 272.2 0.2583 1948.......... . 364.2 386.1L 453.9 208. 4 288.9 259.1 0.2746 1949........... . 343 'J 357.5) 453.!9 198.4 272.9 251.1 0.2910 1950........... . 332.5) 333/7 453.19 270. 7 252.0 282.8 0.3004 1951........... . 352.( 361.5 453 5) 365 3 248.0 285.7 0.2836 January............ . 347.5) 355.£) 453. <9 331. 5 249.7 285.6 0.2874 February . . . . . 351.5 359.8 453.9 342. 8 249.7 289.0 0.2843 March............... . 346.'I 349.31 453.59 379.4 248.8 293.6 0.2887 April.................. . 355.3J 362. £ 453.!) 398. 6 247.5 294.6 0.2815 May.................. . 359.12 367. () 453.!9 410. 4 247.5 300.6 0.2784 June.................. . 360.5 372.2 453.!9 399. 5 247.5 288.5 - 0.2774 July................... . 359.() 370.1I 453.!9 382. 0 247.5 290.2 0.2786 August.............. . 357.8 371.41 453.59 354. 0 247.5 280.0 0.2795 September. . . . . 356.11 369. () 453.!9 356.4 247.5 279.0 0.2808 October............ . 351.() 361.1 453.!) 350.4 247.5 279.0 0.2845 November. . . . . 344.1I 351.1 453.9 343. 8 247.5 275.8 0.2906 December........ . 341 9 348.9 453.!9 335. 2 247.5 272.1 0.2925 1952........ . 339.4 347.41 453.59 295. 9 244.1 268.4 0.2946 January............ . 342.1S 350.9 453.9 330. 8 247.5 269.7 0.2917 February ......... . 341.12 349.8 453.9 311. 2 243.4 268.5 0.2931 March............... . 337.!J 345.1 453.59 301. 1 243.4 268.1 0.2959 April................. . 335.!i 342.7 453.9 300. 7 243.4 264.6 0.2977 May.................. . 335.11 341.15 453.!9 293. 2 243.4 264.4 0.2984 J une.................. . 338. 1 346.2J 453.!9 290. 2 243.4 265.5 0.2952 July................... 349.5 453.!9 286.6 243.4 268.1 0.2938 August............. . 340.17 349.4 453. S9 289.1 243.4 269.9 0.2938 September. . . . 341. 1 350. () 453.19 287. 7 243.4 270.7 0.2935 October............ . 337.(5 344.6 453.!9 289.3 243.4 269.4 0.2962 November .. . . . 340.1 349.;1 453.!9 286.2 243.4 269.8 0.2937 December.. . . . 340 !) 348.9 453.!9 284. 4 247.5 272.3 0.2933 1953.......... 318.12 314.3 453!9 280. 1 243.7 269.5 0.3143 January ........... . 337.13 343.12 453.!9 283. 7 247.4 272.4 0.2965 February ......... . 323.10 321.1L 453.!9 281. 5 243.4 273.0 0.3096 March............... . 318.6 314.13 453.!9 281. 5 243.4 272.4 0.3139 April.................. . 317.i6 312.13 453.19 281. 1 243.4 272.2 0.3149 May................... . 314..3 307.13 453.'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.(3 453.'0 277. 8 243.4 269.5 0.3165 August............... 316. 1 311.!3 453.'9 277. 8 243.4 266.4 0.3164 September . . . . . 315. 8 311.15 453.9 277. 8 243.4 265.6 0.3167 October.............. 315.3 310.15 453.19 279.0 243.4 266.4 0.3172 November . . . . . 315. 2 310.1 453.19 280.9 243.4 267.0 0.3173 December... . . . 315. 5 310.'7 453.'9 280.9 243.4 267.0 0.3170 1954........... January......... . . 311. 7 304.17 453.!9 279. 3 243.4 267.0 0.3208 February ........... 301.15 290.1) 453.!9 278.3 232.1 267.0 0.3317 March............. . 301.1L 289.5 453.!9 274. 9 232.1 267.0 0.3321 April................ . 302 !) 292.5 453!9 272. 2 232.1 266.8 0.3301 May.................. . 309.7 302.8 453. S9 272. 2 235.7 266.5 0.3229 June................. . 312.( 306.5I 453. S) 271. 8 238.4 267.3 0.3199 July................... 318.( 316.2 453. <9 278. 5 236.7 267.9 0.3139 August...... . 321.£i 320.7 •453.9> 274. 7 236.7 269 3 0.3109 September.. .. . 321.3 320 0 453.9) 271 7 236.7 271 0 0.3112 NOTE: Miscellaneous was received from 19S0 to May 1953 and clothing from February 1952 to May 1953. 4GENTS TELEPHONES BROKERS 3-34-20 CHARTERERS 3-34-29 American Steamship Agencies, Inc. Manila and Tokyo Cable Address: 212 Myers Bldg. “AMERSIIIP ” Port Area Manila October, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 403 “LET YOUR HAIR DOWN’’ WE had a very nice party on the occasion of the official opening of the Chamber’s new offices in the Elks Club Building on September 30, 4:30 to 7:30 p.m. Several hundred people came,—mem bers, government and diplomatic offi cials, heads of the other chambers of commerce, newspaper men—Filipi nos, Americans, Britons, Spaniards, Chinese, etc. When the editor saw that everyone was properly dressed, he went so far as to put on his own coat and tie. There was ample food and drink,—the bar serviced by the Elks Club and the table by the Army and Navy Club culinary department next door. A special loud-speaker arrangement had been set up for the calling of cars, but it was some hours after the affair started before there was any calling. The festive occasion, in a sense, marked the debut of the new Exe cutive Vice-President, Stanley N. Fisher, who was meeting numerous members of the Chambers and other prominent Manilans for the first time. There were so many friendly introductions and meetings, and the party was otherwise so exhilarating, that, perhaps, he may have been a little confused, when he noticed -a quiet gentleman whom he had not met yet and, in the general atmos phere of goodwill which prevailed, he put his hand out to him and said, “Good evening, sir. I am Stanley Fisher. May I know your name?” The gentleman made a reply which in the hub-bub Mr. Fisher did not catch, but he made as if he had understood and asked, “What firm are you with, sir?” Then the gentle man smiled a little and said, “I am the American Ambassador.” Mr. Fisher took a quick second look, and, we have no doubt that the world reeled for him at that moment, but he made a quick, if desperate, re covery, saying with an apologetic grin, “Mr. Ambassador, it must be refreshing to meet someone who does not know you!” After that, according to Mr. Fisher, they had a very nice chat about Manila, Baguio, Bontok, and how the Admiral had first come to these shores in 1914 as the com manding officer of a 420-ton des troyer. Subscribe to this Journal P5.00 a Year ttTVrow here is something'.” exclaimed the editor, with a copy of the September Fortune in his hand. “I am delighted, of course, by the results of the ‘reader survey’ of the Journal recently concluded by a special Chamber committee, but listen to this, from ‘Fortune’s Wheel—Notes from the Publisher’: ‘“An editor knows from experience that success is measured by how HERE’S A SIMPLE WAY TO SOLVE YOUR SPEED REDUCTION PRODLEMS Parallel Shaft Drive Get the proper drive for your needs from the Worm Gear Drive Gearmotor and Helical Gear Drive broad LINK BELT line Whether it’s a helical, parallel shaft or worm gear drive that best fits your needs—you get an unbiased recommendation, an incomparable product from your Link-Belt power transmission representative. Exclusive Representatives jor Link-Belt Company, U.S.A. THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Main Office: Cor. TACOMA & 2nd Sts., PORT AIIEV • MANILA • TEL. 3-35-41 Branch Offices at: BACOLOD CITY • CEBU CITY • • P. O. BOX 282 close he comes in practice to what he originally had in mind. (No good editor is ever satisfied.)’ “Now what I originally had in mind in planning the Journal was not anything based on a questionnaire, but on my experience as an editor and, furthermore, on what I admit was a half-intuitive idea of what businessmen, especially American businessmen here, needed and wanted. And although I am not fully satisfied, —as I should not be, I do feel that the Journal comes fairly close to what I ‘originally had in mind’. I have been very fortunate in that the Chamber Board went along with me in this, and gave me the opFor- Link-Belt builds all types— you get the one that suits all your requirements for ratio, space, shaft position, shock loading and many other factors. Call us today for prompt, expert sendee. 404 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 portunity I needed, in that the mem bers also supported the Journal with their advertising, and in that the readers have supported the Jour nal with their subscriptions, some of them for three and four years in advance. I repeat that I myself am not entirely satisfied with the Jour nal as it is; I hope for improvement and will work hard for it; but I am pleased with the results of the ques tionnaire, though, as I said, no questionnairing had anything to do with the planning and laying out of the Journal. Like anything of the sort must always be, it was in in ception a piece of creative work and our big task is to keep it so.” want to move food without damage? ask Fairbanks-Morse To answer a question with a ques tion, "How do you pump solids?” That was the question asked by engineers faced with pumping fish, easily bruised foods, sewage or in dustrial waste. They asked the world’s largest pump manufacturer for a pump that would not clog. Fairbanks-Morse design engineers gave them the first truly non dogging pump ... exactly the unit that the food industry, municipal authorities and industrial manage ment wanted. Whenever a pumping problem KJMJJ • SCALIS • Dlim LOCOMOTIVES AND INMNU • ELI CT ■ KA I MACHINERY • RAIL CARS • HOME WATER Fairbanks, Morse & Co., Inc., Export Division / 80 Broad Street, New York 4, N. Y., U. S. A. (vW Fairbanks-Morse a name worth remembering when you want lha best 'the ‘‘Readership Survey” was conducted by Robot Statistics under the direction of a special ‘‘Journal Financial Committee” ap pointed early this year by Mr. Paul R. Parrette, President of the Cham ber. The Chairman of the Committee was Mr. Harry A. Lee, President of Philippine Advertising Associates, Inc., and the other members were Mr. J. Lasley, of Grant Advertising, Inc., and Mr. Richard Bownass, of the International Harvester Company of Philippines. In a covering letter to Mr. Parrette accompanying the report, Mr. Lee stated that the survey established that (1) the Journal is well read arises—be it for a vertical or hori zontal pump .. . centrifugal, deep well or propeller type, with a capac ity of one to half a million gallons per minute—the engineers of the world seek the solution supplied by Fairbanks-Morse design engineers. For only from Fairbanks-Morse can you get originality of engineering and design that assures you out standing performance. Look for the pump designed for greater efficiency—it carries the famous Fairbanks-Morse Seal of Quality. by recipients and pass-on readers; (2) back copies are retained and used for reference purposes to an im portant degree; (3) all of the 26 regular features are read by enough people to justify their retention; and (4) the Journal is well thought of by 9 out of every 10 readers and no unfavorable comments or suggestions for improvement were made by enough readers to warrant attention. “The survey strongly indicates and con firms the fact that the Journal is well read, respected, retained, and, as such, must be a publication of influence.” The survey covered only Philip pine readers and not the overseas readers of the Journal. Mr. Lee, in his summary, stated that the “survey findings indicate that the Journal is exceptionally well read... 75% of Journal recipients read it regularly. . .” “There are strong indications of substantial additional readership particularly among employees of companies receiving Journal copies. . .83% of Journal recipients say other people read their copies and 78% of the secondary readers are employees.” “That the Journal has retention value and is utilized beyond first reading is in dicated by the following findings: 76% of Journal recipients file their copies; 52% use the Journal for reference purposes; 12% take their copies home.” “Of the 26 regular features, none is read by less than 1/3 of the Journal recipients either regularly or occasionally; editorials are best read, the range of readership by features being 33% reading Freight Car Loadings up to 93% of recipients reading Editorials regularly or occasionally.” The foregoing was quoted from the summary of the report prepared by Mr. Lee. Readers, and our column editors, too, will be interested in the percentages of recipients of the Journal who read the various fea tures (total percentages of regular and occasional readers): Editorials, 93.2%; Articles, 80.7%; Legisla tion, Executive Orders, Court Decisions, 85.7%; The Government, 75.7%; Imports, 71.1%; Cost of Living Index, 68.2%; Banking and Finance, 67.9%; Ocean Shipping and Exports, 62.5%; The “Let Your Hair Down” Column, 61.8%; Mining, 60.4%; Copra and Coconut Oil, 57.5%; Credit, 57.1%; Port of Manila, 56.8%; Food Products, 56.1%; Sugar, 55.4%; Lumber, 53.2%; Desiccated Coconut, 51.1%; Manila Hemp, 50.7%; Building Construction, 50.0%; Philippine Safety Council, 48.6%; Manila Stock Market, 47.9%; Tobacco, 47.5%; Real Estate, 47.1%; Textiles, 45.7%; Electric Power Production, 42.5%; Freight Car Loadings, 33.6%. The Rice column had not yet been begun when the survey was made. Of the respondents to the ques tionnaire sent out, 44% were Filipinos, 31% Americans, 5% British, 2% Chinese, and the remainder of various other nationalities. Roughly, some 45% were executives and other busi nessmen, some 20% were professio nals, some 12% were government officials, legislators, diplomats, conOctober, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 405 suls, etc. and the rest could be clas sified as general readers. To the question, “What do you think of the Journal in its present form as a whole?” of the 77.2% of the respondents who an swered it, 73.6% were favorable and only 3.6% were critical. The great majority used such expressions as “good, fine, satis factory”, “excellent”, “good as a source of information' , "very good”, "useful publica tion”, "interesting reading”, "standard above other magazines”, “valuable for students’ reference”, “well-edited”, “presentable”, “compact and complete”, “a sound rfisumfe of Philippine business”, “has cultural value”, etc. Unfavorable responses listed in cluded such statements as “magazine too small”, “not up-to-date”, “sides too much with Western ideas”, “arti cles inclined to generalities”, “articles too brief”, “very dull”, “informa tion can be found in local papers.” Among the suggestions offered, none of them made by more than a very small percentage of the re spondents, were: “include more upto-date data”, “more pictures”, “a column on the activities of Filipino and other businessmen”, “profiles and speeches of prominent business men”, “articles published should give the two sides of questions”, “improve the lay-out”, “more legible type”, “articles on labor trends and unem ployment statistics”, “articles in the Chinese language”, “an annual in dex”, “open a ‘Readers’ Forum’” “reduce the price”, “issue free copies,” etc. “As for those suggestions,” said the editor, “or some of them, we do publish an annual index; readers will find it in the last pages of the December issue of every year. As for a ‘Readers’ Forum’, that is, more or less, what the ‘Hair-Down’ column is supposed to be. The type we use, for quoted matter, most tables, and certain columns, such as ‘The Government’, is small,— 8-point, but we are forced to keep the Journal down to a reasonable number of pages in proportion to the amount of advertising. We do all wish that we could bring the tabulated information in the Journal closer to the date of publication, but we have found this impossible so far; some of the column editors do wait until after the end of the month to be able to include that month’s statistics in their ‘copy’, but this is not always possible, es pecially if they have to get their figures from the provinces. “I think that all our column editors should be well satisfied with the results of the survey. All but a very few of the columns are read by at least half of those who receive the Journal and who answered the questionnaire; some of them are read by two-thirds, three-fourths, and even more of those who responded. It stands to reason that some columns cover fields that interest a larger number of readers than others. Such a column as ‘Tobacco’, for instance, interests chiefly tobacco-men, where as a column on legislation and court decisions naturally interests more or less all the readers of the Journal. The actual percentages, a few points, more or less, do not mean much. There is not a single column in ‘The Business View’ section that does not very evidently fill a want, and that makes the effort to write it every month well worth while. “I am very grateful to all of the column editors whose work indi vidually and collectively contributes so greatly to the value of the Journal. I am very grateful also to all of those readers who took the trouble to answer the Committee’s question naire and for their doing so in so a generous way as to give us all such great encouragement.” FORD TRUCKS NEW SERIES B-500 AND B-600 SCHOOL BUS SAFETY CHASSIS Series B-500—154-in. wb. for upto 36-Pass. bodies—G.V.W. 12,000 lbs. Series B-600—192-in. wb. for up to 54-Pass. bodios—G.V.W. 16,000 lbs. 210 in. wb. for 55-Pass. bodies—G.V.M. 17,000 lbs. I new 1 new MANILA TRADING & SUPPLY CO. Mai ila 20th Street, Port Area Telephone 3-34-51 The correct address of The Highland Shop is 609 A. Mabini BATANGAS THE BATANGAS TRAD1NC CO. Bataogaa, Balangae R. ISABELA A. G. TRADING CO. Echague, Isabela LAGUNA Mr. SIXTO B. REYES San Pablo City ASSOCIATE DEALERS: manila FORTUNE ENTERPRISES. INC. Corner Echague and Ayala MT. PROVINCE BAGUIO TRADING & SUPPLY CO. 33 Abanao St.. Baguio City NUEVA ECIJA Mr. BRIGIDO LOBR1N Paco Roman St., Cabanaluan City PAMPANGA Mr. FELIX B. PUNZALAN San Fernando, Pampanga PANGASINAN DACUPAN TRADING CO. Dagupan City St.. St., QUEZON Mr. ALFREDO LIM Lu ~ ». Que TARLAC TRAD1NGC& SUPPLY ~ rlac, Tarlac . Tarlac, Ta 406 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1954 come articles which have appeared in the Journal seem to go on forever. Take, for instance, the edi tor’s own article, “Eastern and West ern ‘Psychology’ ”, which appeared in the June, 1952, issue of the Jour nal. First, the Mutual Security Administration (MSA) requested per mission to reproduce the article for its American personnel, and some time later, the G. F. Atkinson Com pany asked permission to do the same. Now an executive of Caltex (Philippines) Inc., has asked permis sion to reproduce the article for this purpose. The article itself was re printed in the Journal by request, with some revision to bring it upto-date, from the original which ap peared in the Philippine Magazine some years before the war. At that time it was quite widely reproduced in American and European magazine digest publications. It has there fore had some 20 years of life and still seems to be going strong. Not that proof is needed, yet the following letter is proof that the Bureau of Public Schools is making use of the accumulation of excess copies of the Journal which we sent the Bureau a month or so ago when the Chamber moved its quarters to the Elks Club Building. The letter EVERETT STEAMSHIP CORPORATION Owners-Brokers-Agents Manila 155 Juan Luna St., Tel. 2-79-31 General Agencies AMERICAN MAIL LINE To and From Seattle Tacoma Philippines Indonesia Portland Vancouver Japan Straits PACIFIC TRANSPORT LINES To .nd From C.lifornia-J.p.n-Philippinoa BARBER-FERN-VILLE LINES To U.S. Atlantic Via Strait.. Suer. Mediterranean FERN-VILLE FAR EAST LINES To and From North Atlantic Porta Cull Porta-Philippinea Via Panama MESSAGERIES MARITIMES To and From Europe and Mediterranean Porta EVERETT ORIENT LINE Philippines, China. Japan Korea, Strait., and India Porta EVERETT STAR LINE PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Ialanda UNITED STATES SALVAGE ASSOCIATION UNITAS OSLO THAI AIRWAYS is from Mr. Constancio T. Medrana, Superintendent of the Mountain Na tional Agricultural School, at Trinidad, Benguet, Mountain Province, ad dressed to the editor, and ran: *‘Cn behalf of our school, I wish to acknow ledge receipt with thanks and appreciation of the 24 copies of the American Chamber of Commerce Journal donated by the American Chamber of Commerce. The copies were shipped to us from Manila by the Bureau of Public Schools. “The magazines are indeed very valuable references for our students and teachers. They are now accessioned in the school library for reading. “We thank you again. Very sincerely, etc.” Index to Advertisers Page Alhambra Cigar & Cigarette Mfg. Co. 389 American Steamship Agencies.................. 402 Atlantic, Gulf & Pacific Co...................... 385 Columbian Rope Co. of Philippines.. . . 393 Earnshaws Docks & HIW........................ 403 Engineering Equipment 8s Supply Co.. . 386 Erlanger 8s Galinger, Inc........................... 394 Everett Steamship Corp............................ 406 Fairbanks, Morse Co................................. 404 Frawley Philippine Corp........................... 395 Gaberman 8s Hagedorn, Inc..................... 399 Goodrich International Rubber Co....... 390 Heilbronn, J. P. Co..................................... 395 Insular Lumber Co...................................... 387 International Harvester Co..Inside Back Cover Koppel (Philippines) Inc........................... 396 Luzon Brokerage Co................................... 396 Luzon Stevedoring Co................................ 397 Macleod 8s Co. of Phils.............................. 397 Manila Broadcasting Co............................ 394 Manila Electric Co...................................... 373 Manila Machinery 8s Supply Co............ 398 Manila Trading 8s Supply Co.................. 405 McCullough Printing Co........................... 398 Metropolitan Investigative Agency, Inc 401 Motor Service Co........................................ 400 National City Bank................................... 391 Nell, Ed. J. Co............................................. 399 Neuss, Hesslein 8s Co................................. 399 O. E. S. 8s S. Co.......................................... 400 Pacific Far East Line, Inc....................... 400 Pacific Merchandising Corp..................... 392 Pasig River Bodegas................................... 401 Philippine Education Co........................... 401 Philippine Manufacturing Co.................. 388 Security Delivery Service......................... 393 Sharp 8s Co., Inc., C. F............................. 406 Stevens, F. H. 8s Co.................................... 402 Standard-Vacuum Oil Co..Inside Front Cover United States Tobacco Corp................. 402 Westinghouse Electric Co.............Back Cover Advertisements in this JOURNAL are read by the leading business executives of the country Governor Juan Pajo of Bohol tells How one man’s business benefits an entire province! |UST how much can one private business affect <J the economy of an entire province? Our Provincial Board members and I like the story of one of Bohol’s most able young businessmen. Read it—< and see for yourself just how important he and his business are to our province! * "Tansiong Lim is the owner and manager of the Motor Supply Company which bears his name. Located in Tagbilaran, Bohol, it houses the office, store and shop of International Harvester’s sales and service dealership for Bohol. With Harvester Company’s help. Mr. Lim made a modest beginning in 1950. Since then, his business has prospered amaz ingly. Today our International Harvester dealer’s base of operations occupies a new building with 800 square meters of space. He employs ten of our Bohol people and he has installed the latest equipment to provide the best in service facilities. “Now. iF all Tansiong Lim had achieved was a successful business which pays taxes, helps keep money in circulation and helps support ten families be sides his own. he would be a beneficial influence in our Province. He does more than that, however. The Tansiong Motor Supply's contribution to agriculture and transportation in Bohol is enormously important. Tn 1950 Tansiong Lim’s I nternational Harvester Dealership shared space with a number of other enterprises. Now the Tansiong Motor Supply Company has a building of its own with 800 square meters of space devoted to International Harvester Sales and Service. Governor JUAN PAJO of Bohol Senior Provincial Board Member, Timoteo R. Butalid. Provincial Board Mem ber, Maximo Cas bodes. “We raise rice, corn and cattle. Many of our citizens are in great demand as laboreis in all parts of the Visayas. To keep our harvests rich, and our produce and people moving from farm to maiket centers, we must have sturdy, efficient farm and transportation machines. The Tansiong Motor Supply sells those machines and keeps them rolling. What's more, with Harvester Company's help. Nir. Lim is able to give us information about the latest time and money saving methods in agiicullurc and transportation. “B:»hol is grateful to Tansiong I.im. He is a good citizen whose affable personality, and whose participation in civic and social affairs have won him many friends. In private life, as in business, Tansiong Lim, our Harvester dealer, is a real asset to the Province of Bohol I” Every minute/^ of every day over ^ie world people put Westinghouse to work, for more efficiency^ ^^for better living Ijl^or greater comfort. You can be SURE . if it’« Westinghouse Westinghouse electric international company • « won str»»t, n«w YoA s, u. »• aFor everything electrical .... see your Westinghouse distributors: Industrial & Heavy Industry KOPPEL (PHILIPPINES) INCORPORATED Boston & 23rd Streets Port Area, Manila, Philippines Fluorescent & Incandescent Lamps PHILIPPINE ELECTRICAL MANUFACTURING CO. f? E M C O) Ground "^por Soriano Bldg. Manilli, ts.ilippines Electrical Appliances & Refrigerators MACONDRAY & COMPANY, INC. 3rd Floor, China Bank Bldg. Manila, Philippines Automotive Lamps J. A. MURPHY COMPANY, INC. Moserco Building Port Area, Manila, Philippines