The American Chamber of Commerce Journal

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Part of The American Chamber of Commerce Journal

Title: The American Chamber of Commerce Journal
Issue Date: Volume XXX (Issue No. 12) December 1954
Year: 1954
Language: English
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extracted text: 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, M. S. Robie, John Oppenheimer, F. H. Spengler, and Paul H. Wood. Stanley TJ^Fisher, Executive Vice-President; I. T. Sal mo, Secretary Vol. XXX December, 1954 No. 12 Contents Editorials— The Philippines as Self-Sufficient in Food Production. . . ............................. 451 Mutual Defense Treaty between the United States and China..................If.................................................................................................................... 452 Visit of the Congressional Joint Committee on Atomic Energy................. *...................................................................................................................... 452 War Not Inevitable............................................................................................................................................................................................................................ 454 The Caltex Petroleum Refinery in Batangas............................................................................................................................................................................ 456 Economic and Social Survey of Central Luzon—Rivera-McMillan................................................................................................................................... 456 The “Boarding Ladders” of Communisms Comment on a Speech by Herbert Hoover................................................................................................................................................................................. 457 Text of the Mutual Defense Treaty between the United States and the Republic of China............................................................................................. 458 Motor Vehicles in the Philippines, 1912-1953 (Table)............................................................................... Motor Vehicles Office...................................... 459 Philippine Foreign Trade, First Half of 1954 compared with the First Half of 1953. . . . Bureau of the Census and Statistics.......... 460 The Business View— The Government............................................................................................................................................. Banking and Finance................................................................................................................................... Manila Stock Market................................................................................................................ Credit............................................................................................................................................ Electric Power Production.......................................................................................................................... Real Estate...................................................................................................................................................... Building Construction..................*............................................................................................................. Port of Manila............................................................................................................................................... Arrastre Service, Manila............................................................................................................................. Ocean Shipping and Exports.................................................................... „............................................... Freight Car Loadings... -'......................................................................................................................... Mining........................................................................................................................................... Lumber............................................................................................................................................................. Sugar......................................................................................................................................... Copra and Coconut Oil............................................................................................................................... Desiccated Coconut...................................................................................................................................... Manila Hemp................................................................................................................................................. Tobacco......... ........................................................................................................................... Rice................... .'...............................................................;............................................................................ Imports.................................... ........................................................................................................................ Food Products,....................................... ................................................................................. Textiles........... ............................................................................................................................. Legislation, Executive Orders, Court Decisions.................................................................................. Chamber Business............................................................................................................................ Philippine Safety Council.................................................................................................................................... Cost of Living Price Index (1935-1954).......................................................................................................... The “Let Your Hair Down” Column.............................................................................................................. Index fop 1954..................................................................................................................................... Official Sources................................................. 461 M. D. Arnold.................................................. 464 J. J. Orticas..................................................... 464 D. Burn.............................................................. 465 J. F. Cotton..................................................... 465 A. Varias........................................................... 466 J. J. Carlos...................................................... 466 W. S. Hurst...................................................... 466 F. Delgado....................................................... 467 E. H. Bosch...................................................... 467 J. B. Libunao................................................... 467 H. A. Brimo...................................................... 468 P. de Ocampo.................................................... 469 J. H. d’Authreau........................................... 470 W. S. Rice. Jr.................................................. 472 H. R. Hick........................................................ 473 F. P. Hill........................................................... 473 R. P. Satrustegui.......................................... 474 C. O. Houston, Jr.......................................... 475 S. ScHMELKES........................................................ 477 C. G. Herdman................................................ 478 A. Margolles.................................................. 479 E. E. Selph....................................................... 480 S. N. Fisher..................................................... 482 F. S. Tenny....................................................... 483 Bureau of the Census and Statistics........... 484 ............................................................... 485 ................................................................................. 489 50 CENTAVOS THE COPY Rice mill prevents shut-down losses-cuts monthly diesel fuel * — Daroy Rice Mill Mangaldan, Pangasinan HERE’S AN ACTUAL CASE HISTORY * FROM STANDARD-VACUUM’S FILES! Isabelo M. Daroy, rice mill operator of Mangaldan, Pangasinan, was faced with the danger of shutdown and consequent loss of income due to trouble in his engine, a 72 HP 500 RPM diesel. On inspection, he discovered excessive carbon deposits on the pistons and also clogged in jector nozzles. A Standard-Vacuum representative analyzed the trouble as due to the fuel and lubricating oil in use and advised Mr. Daroy to change to Gargoyle DTE Oil No. 4 for lubrication and Stanvac Diesel Oil for fuel. The use of the right oil and the right fuel solved Mr. Daroy’s problem and to this day he is completely satis fied with the performance of these quality Standard-Vacuum products. What’s more, he discovered he is saving close to 15 gallons of lubricating oil and 250 liters of diesel oil each month! • 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 knowledge and engineering service. Start cutting your overhead —call in your Standard-Vacuum representative. STANDARD-VACUUM Gtu&tftfaxt&k, FIRST STEP IN CUTTING COSTS Editorials . . . to promote the general welfare” A friend of the Journal used the detailed figures, obtained at the request of Mr. E. D. Hester from the Bureau _ ____ of the Census and Statistics of the previously unitemized “Other Imports” in the general imports and exports figures, in connection with a table which is reproduced herewith. (See Mr. Hester’s letter in the “Hair-Down” column in the November issue of this Journal and also the same column in the present issue.) The Journal correspondent wrote the editor that his table supports “criticism of the careless allegation that the Philippines is not self-sufficient in food production, the implication being that the situation indicates a fright ful degree of economic imprudence.” “Actually,” he continued, “the Philippines is econo mically self-sufficient in food production,” and he supported this statement by pointing out that “during most of the past fifty years the Philippines has produced most of the food it desired to consume and that, for the remainder, it produces and trades internationally certain kinds of food stuffs for other kinds of foodstuffs with a net economic gain” He stated that the table is not complete and is un checked, but that it indicates what he means. “With the export and import of fish products added”, he said, “the results remain the same.” It will be noted that the excess of food exports over food imports has increased rapidly since 1941 and that the 1953 excess more than doubled that for 1952. That is an excellent showing, but it is to be emphasized that it is largely a result not only of selective and increased production, but of the concomitant increased trading. PHILIPPINE TRADE IN AGRICULTURAL FOODSTUFFS Millions of pesos value 1934-38 av. .................................................... Agricultural foodstuffs ex ported; Coconut oil and copra est. 10% for edible purposes... Desiccated coconut.................. Pineapple, tinned...................... Sugar.............................................. Totals............................... The Philippines as Self-Sufficient in Food Production 1939 1941 1952 * 1953 ** 5.1 8.3 107.3 4.5 8.8 3.4 98.7 3.9 7.4 5.0 94.5 26.7 31.5 24.4 21.1 19.1 23.5 187.8 193.8 120.7 115.4 110.8 251.5 276.4 Agricultural foodstuffs im ported: Grains and preparations of... 73.9 46.2 Dairy products........................... 35.1 45.7 Coffee, tea, cocoa...................... 6.3 8.8 Other foodstuffs ** ...................... 49.6 15.3 *** Totals............................... 33.8 40.3 28.9 164.9 116.0 Excess of exports over im ports.............................................. 86.9 75.1 81.9 86.6 160.4 ft The Philippines could perhaps be brought to produce most if not all of the various food products consumed here, but instead of this spelling an economic net gain, it would spell a loss because the country would necessarily produce less of the foodstuffs it presently exports and in exchange for which it receives goods in other categories necessary not only to the diet of the people but otherwise essential to the country’s life and progress. It is true that the distinction which the Journal cor respondent makes is somewhat academic, but the allega tion so frequently made that the Philippines “is not even producing enough food to feed itself” is so disparaging that it is good to have it pointed out that the Philippines is not only producing enough food to feed itself but pro ducing a considerably excess to feed other parts of the world, and is doing this at a net economic gain to itself. Of course, this allegation is most frequently made as applying to the country’s rice production. One may study this table and conclude that it would still be desirable for the Philippines to produce enough rice to meet the local need, even if it is more profitable to raise other crops with a part of the proceeds of which enough rice may be im ported to satisfy all need. A mere subsistence economy 451 is not to be advocated for a nation any more than for a man and his family. But other factors do enter into the problem which fully justify the aim and the efforts of President Magsaysay and his Administration to make the country self-sufficient in rice-production. However, it is well to be reminded that while increased production is the basis of increased prosperity, it must be a selective production, a production of those goods which can be most economically produced in a country,—not a production of every thing there is a local need for but which is more economically produced in other countries. There is a gain in the former; only a loss in the latter. Prosperity depends not alone on production, but on selective pro duction plus trade, as no country can export its excess production at a net gain unless it also imports and allows a net gain to the countries it trades with. It is well to be reminded again that “self-sufficiency” is, too often, a mere nationalistic catch-word, impractical and foolish as a goal, an economic will-o’-the-wisp which leads only to retrogression,—as in the case of a family the mem bers of which are skilled in various trades or professions but who decide that, instead of exercising them, thereby obtaining a good money-income, enabling them to satisfy all their needs, accumulate savings, and contribute to the country’s progress, they will just build their oWn shack, do a little farming and gardening, make their own clothes, living poorly for themselves alone, accumulating only a few chattels, saving nothing, contributing little if at all to their communities or, through the taxes they do hot pay to the support of various public services. That is “subsistence economy”, that is “self-sufficiency”! The signing in Washington, on December 2, 1954, of the Treaty of Mutual Defense between the United States of America and the The Mutual Defence Republic of China, is of Treaty between the the greatest interest and United States and China importance to the Philip pines. The text of the Treaty is identical, almost word for word, with the text of the Mutual Defense Treaty between the United States and the Philippines, which was signed in Washington on August 30, 1951 (ratified by the Senate of the Philippines, May 12, 1952), except for the addition of two Articles necessary under the circumstances. The Articles are those numbered VI and VII and read: “Article VI. For the purposes of Articles II and V, the terms ‘territorial’ and ‘territories’ shall mean in respect of the Republic of China, Taiwan and the Pescadores; and in respect of the United States of America, the island territories in the Western Pacific under its juris diction. The provisions of Articles II and V will be applicable to such other territories as may be determined by mutual agreement. “Article VII. The Government of the Republic of China grants, and the Government of the United States of America accepts, the right to dispose such United States land, air, and sea forces in and about Taiwan and the Pescadores as may be required for their defense, as determined by mutual agreement.” Articles II and V referred to are identical with Articles II and IV in the Treaty with the Philippines, Article II in both Treaties providing that “In order more effec tively to achieve the objective of this Treaty, the Parties separately and jointly by self-help and mutual aid will maintain and develop their individual and collective ca pacity to resist armed attack”, and Article IV in the Philip pine Treaty and Article V in the China Treaty both pro viding that “Each Party recognizes that an armed attack in the West Pacific [the word West is inserted in the China Treaty] on either [changed in the China Treaty to against the territories of] of the Parties would be dangerous to its own safety and declares that it would act to meet the common danger in accordance with its constitutional processes.” An interested thing is that in Article II of the Treaty with China the following clause, which does not appear in the Treaty with the Philippines, has been added after the words “to resist armed attack”: “and communist subversive activities directed from without against their territorial integrity and political stability.” An entire article which does not appear in the Treaty with the Philippines is Article III in the Treaty with China which provides: “The Parties undertake to strengthen their free institutions and to cooperate with each other in the development of economic pro gress and social well-being and to further their individual and collec tive efforts toward these ends.” It is apparent that the Treaty with China embodies in one instrument provisions of agreement which in the case of the Philippines are embodied in a number of separate in struments, more particularly the Agreement Concerning Military Bases, signed on March 14, 1947, and the Quirino-Foster Agreement, signed on November 14, 1950, as well as the Mutual Defense Treaty of August 30, 1951. The Government of the Republic of China (generally referred to as Nationalist China) did not take part in the Manila Conference of 1954, held last September, which resulted in the conclusion of the South East Asia Collec tive Defense Treaty between Australia, France, New Zealand, Pakistan, the Philippines, Thailand, the United Kingdom, and the United States. The new Treaty, which follows the general pattern of United States treaties with not only the Philippines, as has been pointed out, but of those with the Japan, the Republic of Korea, and Austra lia and New Zealand, constitutes what President Chiang Kai-shek called a “necessary link in the chain of Far Eastern defense”. The Treaty was concluded in the teeth of what ap pear to be Communist Chinese preparations for attack on territories held by Nationalist China and serves clear notice of warning. As Secretary of State John Foster Dulles stated: “It is my hope that the signing of this defense treaty will put to rest once and for all rumors and reports that the United States will in any manner agreed to the abandonment of Formosa and the Pesca dores to communist control.” Only Formosa and the Pescadores are specifically named in the Treaty, but it is to be noted that its operative provisions, in the words of the instrument, “will be applic able to such other territories as may be required for their defense, as determined by mutual agreement.” These ‘ other territories” may include some if not all of the lesser islands under Nationalist control, now under sporadic Communist attack, and may, in time, come to include the mainland, presently lost to barbarism. The two-day visit of • Senator John W. Bricker, The Visit of the Congressional Joint Committee on Atomic Energy :he five-man group, headed by from the Joint Committee on Atomic Energy of the United States Congress, helped to bring home to us a sense of the exigent nature of every thing that has to do with the use of and control over atomic energy. The Joint Congressional Committee is the legislative counterpart of the U. S. Atomic Energy Commission which is in charge of the administrative side of the over-all Amer ican atomic program. The group which visited the Philip pines was making a tour of the Pacific area and was on its way to Greece and Spain via India, Pakistan, and Turkey. The purpose of the group was, as stated by Senator Bricker, “to arouse interest in the Eisenhower ‘Atoms for Peace’ plan, which is still in its formative stage. . .to give your Government the general picture. . . to let every body know that we aren’t being selfish about this”—homely, but sincere words. He added, “The more we use atomic power for peaceful purposes, the less likely we are to use 452 December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 453 r This Takes Skill This “dalagang bukid” tosses palay high into the air and with dexterity se parates the rice from the chaff. It looks easy—but it takes skill. It also takes skill to insure properly and adequately, the properties, machi nery and equipment of the growing in dustrial activities of the Philippines. The outstanding American insurance companies listed below have that skill— and they are within reach of your tele phone and represented by outstanding and experienced General Agents. Let us shield your business property or casualty loss. AETNA INSURANCE COMPANY Wise & Co., Inc. Marsman & Co., Inc. GREAT AMERICAN IN SURANCE CO. Fidelity & Surety Co. of P.I. A. Soriano y Cia. J. J. de Guzman & Co., Inc. THE HOME INSURANCE COMPANY A. Soriano y Cia. THE AMERICAN INSU RANCE CO. Guttridge & Chambers, Inc. Manila Underwriters Insurance Co., Inc. THE CONTINENTAL INSU RANCE CO. E. E. Elser Inc. Kuenzle & Streiff, Inc. FIREMAN’S FUND INSU RANCE CO. United Insurance Co., Inc. Insular Mercantile Enterprises, Inc. Philippine Insurance Associates, Inc. FIRE ASSOCIATION OF PHILADELPHIA F. E. Zuellig, Inc. Theo. H. Davies & Co., Far East, Ltd. it for something else,”—that last an euphemism for a use which passes the bounds of horror. At a luncheon given in the party’s honor at Malacanang, President Magsaysay expressed full backing for the Eisenhower plan, and, pointing out that it was the United States superiority in atomic weapons which has served as one of the great deterrents to war, he stated that it was typical of the United States that it should now turn its attention to the peaceful uses of atomic energy. It will be recalled that recently it was announced at a meeting of the United Nations that the United States had contributed 100 kilos of priceless atomic materials to a common pool and that Great Britain had contributed 20 kilos. This radio-active material will be used in the various countries for experimental purposes and also, directly, in industry, agriculture, and medicine. Supplying a striking background for the visit of the •Congressional group was the knowledge which had just become public that uranium ore had been found on the Philippine Iron Mines property at Larap, Camarines Norte. The size and richness of the deposit remains to be deter mined. rpHE atomic weapon, though so recent a development, J- embodies such an appalling threat to all mankind that it constitutes an entirely new factor in the world which, already, is bringing about revolutionary changes in poli tical as well as military thought and action. We who, for the past decade, have lived under the menace are be coming a different type of man in view of the dread pos sibilities men have never faced before. Almost at once, as one writer put it, “the civilized countries understood that only a moral coalition could protect them against the threat... For the first time in the history of man, the conflict be tween pure intelligence and moral values has become a matter of life and death.” The writer of this editorial would say here that there should be no conflict between “pure intelligence and moral values,” but that intelligence should make the need of the moral values clear. President Truman recognized the implications of the atomic bomb when in his very announcement to the world that the first atomic bomb had been dropped on a Japan ese city he made the pledge that he would recommend the creation of an international commission to control the production and use of this new power and stated, further, that he hoped that it would become a “powerful factor” toward the maintenance of world peace. The United States met with stubborn opposition,— from Russia, in its efforts to bring about the organization of such an international commission, and the Eisenhower plan for the establishment of an international pool of fis sionable materials for peaceable use under an entity to be called the International Atomic Energy Agency, laid be fore the United Nations in his noble address delivered a year ago on December 8, was intended ultimately to dis solve this impasse as, meanwhile, the world turns from a mainly destructive to a constructive application of the herculean power which has come under man’s control. It seems clear that already this new concept and in tention, now being implemented, is mitigating the dread under which we live. General Matthew B. Ridgway, United States Army Chief of Staff, speaking in San Francisco last month, de cried the belief that war is inevitable. He War not said that this belief could result only in a Inevitable passive resignation to the unavoidable or to the launching of a “preventative” war which he condemned not only on moral grounds but as in itself “destroying all hopes of peace”. Here General Ridgway spoke in the great debate that more or less openly is being waged in the United States, but even more, silently, in the minds of men everywhere. Until not so long ago, men spoke of great wars break ing out every generation or so and were more or less re signed to the thought that this would continue forever or, at least, until some time in the remote future. And even today, with knowledge of the certain catastrophe which atomic war would bring, many still harbor the thought that a war between the free and the communist world must come sooner or later, this leading to the view that if it must be so, then it had better come now or soon, while the free world is believed still to retain some superiority in atomic weapons. But a “preventative” war would itself be war, and as things are, despite the element involved of the surprise attack, would bring inavertable retaliation as devastating, or very nearly so, as any future war the preventative war might be designed to forestall. If General Ridgway’s statement is accepted that war is not inevitable, it follows that it is evitable; that it can be, and therefore must be avoided, beginning now. There has been world-wide discussion of the ques tion whether the free and the communist slave world can “peaceably co-exist.” For its own propaganda purposes, the Kremlin avers that such co-existence is possible, though the communist conspiracy against freedom everywhere continues. Free men should not be taken in by such pro paganda. There can be no compromise between freedom and slavery, between legality and criminality, between right and wrong—but they can, and do unfortunately, co-exist, albeit not peaceably. The free nations and the communist states are basically inimical to each other; the antagonism between them will and must persist; but the struggle between them need not be pushed to the ex treme of general war. It should be recognized that the communist states would turn to open aggression at any time that appeared favorable to them, and for that reason the free nations should maintain powerful defensive forces, but with no thought of themselves taking the offensive. The old mili tary principle that offense is the best defense no longer holds true now, when the defensive forces can retaliate so catastrophically. It has been objected that were the Communist con spirators to become convinced that the free nations will never resort to war, they will continue to extend their conquests gradually by “little” local wars. But this could be prevented by making it clear that resistance to such encroachments would be automatic and that in such cases every weapon in the arsenal would be employed locally. The blood-guilt would be on the heads of the aggressors. Let us accept the thought that war is not inevitable and that it can and will be avoided as long as we remain strong to defend ourselves. Let us otherwise fight com munist slavery in every way short of war, heartened by our democratic faith in the strength of the desire for free dom even in the communist states. Democracy can not compromise with Communism, but it can wait it out, meanwhile extending all possible aid to democratic forces and movements everywhere, es pecially in the communist countries; Democracy can carry on its own “subversion”, as it often has under past tyran nies, until all the world is free. Democracy, not Com munism, is the true revolutionary force in the world. 454 December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 455 WHAT IS GOOD LIGHTING FOR STORES > Rough Work Adequate for casual seeing task Recommended for critical c . . . .. seeing Specialized Applications task , General Lighting Stock Room I Circulation Areas Supplementary Lighting 10 Counter Display Showcases Show Windows Wall Cases _____________I , I I 20 30-75 100 FOOT. CANDLES T“ Display Work Show Windows General Merchandising 200-1000 Good Lighting means Good Business. Well-planned illumination creates an atmosphere for pleasant and comfort able shopping, and provides easy, quick and accurate seeing and judging of goods. To give your merchandise the benefits of the best possible lighting, the following are recommended: 1. Use Cool-White fluorescent lamps. 2. Supplement general lighting with spotlights or floodlights. High lights created by concentrated incandescent filament sources help reveal the forms of the merchandise. Spotlights or floodlights give dramatic effect to display. 3. For certain types of merchandise, maintain in service these intensities of illumination: a. Self-service—60 to 75 footcandles. b. Semi-service — 40 to 60 footcandles. c. Style merchandise — 30 to 50 footcandles. SSSTTSTWU > ttMAusrsH/u 9SSUP TP ASSIST High-Power Factor Ballasts must be used with Fluorescent Lights. WATCH This Space For Additional Information MANILA ELECTRIC COMPANY 134 San Marcelino Tel. 3-24-21 The Journal congratulates Caltex (Philippines) Inc. on the opening of its Petroleum Refinery, erected on a 120-hectare site at Bauan, 115 kilometers The Caltex from Manila, on the shore of Batangas Oil Refinery Bay. The new plant, the first of its kind in Batangas in the Philippines and representing a very large investment, was officially in augurated on the 11th of this month. President Magsaysay was the guest of honor. Our congratulations also go to W. F. Bramstedt, President of the California Texas Oil Company, Ltd., and to C. Roesholm, President of Caltex (Philippines) Inc. Both executives, by order of the President, were awarded officerships in the Philippines Legion of Honor. The preparatory survey for the Refinery was begun in July, 1951, and actual construction began in October, 1952. Some two years were required to complete the work. The first shipment of crude, 116,000 barrels, arrived on the S.S. Caltex Manila on June 30 this year. Test runs began almost immediately after. The plant will produce gasoline, kerosene, and diesel and bunker fuel oils, and is capable of processing some 13,000 barrels of crude oil per calendar day. Crude and refined storage capacity is 1,430,000 barrels. The authors of “The Rural Philippines”,—Generoso F. Rivera and Robert T. McMillan, have produced another work, “An EcoEconomic and Social nomic and Social SurSurvey of Central Luzon— vey of Rural HouseRivera-McMillan holds in Central Luzon.” Like the preceding book, which was reviewed in the February issue of this Journal, the new book is the result of a cooperative research pro ject of the PHILCUSA (Philippine Council for United States Aid) and the FOA Mission (United States of America Operations Mission to the Philippines). It runs to 196 pages. The book" is based on a survey of nine barrios in Cen tral Luzon, all different from the thirteen barrios through out the country the survey of which was the basis of the previous work. These barrios are: San Antonio, Cuyapo, Nueva Ecija Bangor, Victoria, Tarlac San Mariano, San Antonio, Nueva Ecija Pinaod, San Ildefonso, Bulacan Maquiapo, Guagua, Pampanga Sampaloc, Apalit, Pampanga San Jose, Calumpit, Bulacan San Juan, Cainta, Rizal Kaykiwit, Indang, Cavite “Evidences of overpopulation in these places”, the authors state, “were reflected in small farms, unem ployment, and inadequate space for dwellings. . . Farmers’ organizations were noticeably lacking. . . Lack of formal government and extremely limited participation of citi zens in the benefits of government characterized all bar rios surveyed. These barrios were inadequate with re spect to these facilities and services: roads, marketing, credit, irrigation, home water supply, health, and com munication. . . Any dissident activities existing in the barrios were undercover. Military units were located in or near each barrio, serving as a strong barrier against any overt manifestations. However, there were poten tial conditions of social unrest such as reports of hunger, failure to accept children in school who could not pay small fees, high interest rates, unequal charges for irriga tion water, and increased farm rentals.” In the Preface, the authors state: “Central Luzon is a region of marked contrasts: great haciendas or estates and masses of landless workers; op portunities for crop diversification versus emphasis on a single crop; fairly fertile land but low productivity; grow ing population against limited or undiscovered employ ment opportunities; and discontent in an area of possible peace and order. Many of the reasons for these contrasts lie in the complex social relationships with respect to the ownership and use of land resources. While other factors appear to be fully as important in creating social mal adjustments, psychologically at least, tenure problems tend to overshadow all ethers.” The study analyzes various “major factors which recurrently threaten the economic and political stability of the region.” Chapter XI, “Rural Policies and Prog rams,” is the concluding' and most important chapter. The authors say: "The large question is: Can the Philippines organize the population, land resources, and available technology to achieve greater productivity and a higher level of living among the rapidly-increasing po pulation?” “It seems reasonable to expect,” they answer, “that through the use of improved seeds, fertilizer, irrigation, and other desirable farming practices, the yields per hec tare of palay, corn, and other food crops can be increased. The programs of the Bureau of Agricultural Extension, the Bureaus of Plant and Animal Industry, the Bureau of Public Schools, and the Agricultural Credit and Coopera tive Financing Administration, and other agencies, both public and private, are designed to improve the economic productivity of the rural population. Also, effective efforts to increase farm ownership among the tillers, enforce the tenancy and usury laws, resettle population from overpopulated areas in new undeveloped areas, accelerate development of nonagricultural industries, improve local government, and encourage community development are needed to strengthen the economy and insure political stability. The crucial question is, can the Philippines organize its existing or potential natural and technolog ical resources to develop a capacity for economic growth which will be greater than the expected growth of popu lation.” That is the last sentence in the chapter, and the cru cial question is not answered, but there is a final footnote on the point which runs: “Family and religious beliefs tend to prevent any conscious at tempt to limit the number of children per family. It is interesting to note, however, that increases in the schooling and urbanization of the population contribute to decreased birth rates in the Philippines. See Amos H. Hawley, Papers in Demography and Public Administra tion, Manila: University of the Philippines, 1954, pp. 8-10.” Index . . . {Continued from page 490) Manila Hemp, J. D. Conrad, pp. 27, 67, 106; R. Duncan, p. 148, 190, 239; F. P. Hill, pp. 276, 313, 353; R. Duncan, p. 392; F. P. Hill, pp. 433, 473. Tobacco, L. A. Pujalte, pp. 28, 70, 109, 151, 194, 240, 316; R. P. Satrustegui, pp. 354, 392, 433, 474. Rice, C. O. Houston, Jr., pp. 151, 195, 240, 277, 317, 355, 394, 434, 475. Imports, S. Schmelkes, pp. 29,70,109,153, 196,241,279,317, 358, 397, 437, 477. Food Products, W. E. M. Saul, pp. 29, 71, 110, 154; C. G. Herdman, pp. 198, 242, 280, 318, 359, 393, 438, 478. Textiles, W. V. Saussotte, pp. 30, 72, 111; A. Margolles, pp. 155, 199, 242,. 281, 319, 360, 398, 439, 479. Legislation, Executive Orders, Court Decisions, R. Janda, pp. 31, 74, 112, 156, 200, E. E. Selph, pp. 243, 282, 320, 361, 399, 440, 480. Philippine Safety Council, F. S. Tenny, pp. 32, 75, 158, 200, 245, 284, 321, 363, 400, 443, 483. Cost of Living Price Index (1935-1954), Bureau of the Census and Statistics, pp. 33, 76, 115, 159, 202, 246, 286, 322, 362, 402, 441, 484. The “Let Your Hair Down” Column, pp. 34, 77, 116, 160, 203, 247, 287, 323, 364, 403, 444, 485. Chamber Business, S. N. Fisher, pp. 441, 482. 456 The ’’Boarding Ladders” for Communism Comment on a Speech by Herbert Hoover MANY earnest and powerful voices have been raised, in the Philippines, as elsewhere in the free world, in warning against “Communist” subversion as, in many respects, more dangerous, and certainly more immed iate, than open aggression. This is generally now fairly well understood. Less well understood is the fact that in many de mocratic countries the way is, largely unconsciously, being prepared for subversion by certain government policies which diverge from the established ideals of democratic government. This was brought out in a speech made by former Pres ident Herbert Hoover, a month or two ago, on the occasion of his eightieth birthday anniversary. He said, among other things, that he was not so much afraid of actual Communist agents, as they can continue to be ferreted out; “our greater concern”, he said, “should be the other varieties of the Karl Marx virus.” “Among them,” he continued, “are the socialists.” “They assert they would proceed only by constitutional means. They prowl on many fronts. They promote the centralized Federal Government, with its huge bureaucracy. They drive to absorb the income of the people by unnecessary Government spending and exor bitant taxes. They have pushed our Government deep into enterprises which compete with the rights of free men. These enterprises are en dowed with exemption from taxation and freedom from control by State and local governments. Congressional committees have listed hundreds of these federal activities. And, I may tell you, only a drop of typhoid in a barrel of drinking water sickens a whole village. "Every step of these programs somewhere, somehow, stultifies the freedom, the incentives, the courage, and the creative impulses of our people. Beyond all this, there is proof in the world that the end result of socialism can be bloody Communism. In the Iron Curtain states, it was the socialist intellectuals who weakened the freedom of men by destroying safeguards of freedom. Thus they furnished the boarding ladders by which the Communists captured the ship of state. "One of the post-war cousins of socialism is the so-called ‘welfare state’. This poison gas is generated by the same sort of fuzzy-minded intellectuals. Its slogan is ‘planned economy’. That phrase itself was borrowed from totalitarian governments. The end of it would at least be a government wherein whatever is not forbidden would be com pulsory. "One of the annoyances of this cult is its false assumption that our nation has never been heedful of the welfare of our people. That we are our brother’s keeper was rooted in religious faith long before these fuzzy-minded men were born. Since the foundation of the Republic, we have recognized and practiced both private and governmental responsibility for the unfortunate and the aged; for the education of our youth and the health of the people. “And, besides all this, this cult has a host of gimmicks for giving away the people’s money. Among their ideas is that government should guarantee every citizen’s security from the cradle to the grave. “But it is solely the initiative and labor of the physically able in the prime of life that can support the aged, the young, the sick,—and the bureaucracy. .And this active earning group requires the pressures of competition, the rewards of enterprise and new adventure to keep it on the job. Even if security from the cradle to the grave could eliminate the risks of life, it would be a dead hand on the creative spirit of our people. Also, I might mention that the judgment of the Lord to Adam about sweat, has not been repealed. “When we flirt with the Delilah of security for our productive group, we had better watch out, lest in our blindness we pull down the pillars of the temple of free men.” Besides lashing out at socialist ideas of a “planned economy” and the “welfare state”, Mr. Hoover expressed his opinion of the “cult of common man”. He said: “Among the delusions offered us by fuzzy-minded people, is that imaginary creature, the common man. It is dinned into us that this is the century of the common man. The whole idea is another cousin of the Soviet proletariat. The uncommon man is to be whittled down to size. All this is the negation of individual dignity and is a slogan of mediocrity and uniformity. “The common-man dogma might be of use in vote-getting pur poses by some demagogues,—it proves humility. But let me tell you that the greatest strides of human progress have come from uncommon men and women. You have perhaps heard of George Washington, Abraham Lincoln, or Thomas Edison. They were humble in origin, but that was not their greatness. . . “The imperative need of this nation at all times is the leadership of the uncommon men and women. We need men and women who can not be intimidated, who are not concerned with applause; not those who sell tomorrow for cheers today. “Such leaders are not to be made like queen bees. They must rise by their own merits. America recognizes no frozen social stratifications which prevent this free rise of every individual. They must rise by merit from our shops and farms. They rise from the 35 million boys and girls in our schools and colleges. That they have the determination to rise in America is the glorious promise of leadership among free men.” Mr. Hoover’s answer to the possible charge that what he had said might be called “reactionary”, was one short sentence: “If anyone rises to say that all this is reactionary, you may class him as either fuzzy-minded or an ignorant enemy of free men, and go on from there.” That he does not look backward only,—even if to the established democratic traditions, but also looks forward, the closing paragraphs of his speech showed. Although he so vehemently rejected the “planned” world of the Communists, he said: “Amid this recitation <?f our problems, I would not have you think that there are not great fields of promise for the future, if we can keep out of war. The last few years have seen advances in science and techno logy which amount almost to revolution in our life and world relations. If we maintain free minds, free spirits, and direct our steps aright, still other new horizons and new frontiers are open to us. New inventions and new applications of old knowledge will come to us daily. “These new frontiers give us other blessings. Not only do they expand our living, they open new opportunities and new areas of ad venture and enterprise. They open new vistas of beauty. They unfold the wonders of the atom and of the heavens. Daily they prove the reality of an all-wise Supreme Giver of Law. “There 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 bed side 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 exacting; 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.” tn quoting at some length from the remarkable speech -*■ former President Hoover delivered on his eightieth birthday anniversary, we would not be understood as reflecting, even by implication, on President Magsaysay’s economic planning nor on his efforts to improve the con ditions of life in our rural communities. Mr. Hoover’s attack was on the “planned economy”, and, as was pointed out in these pages some months ago, there is a vital distinction between what is called a “planned economy” and government economic planning. The first is totalitarian and involves such a disregard of and inter ference with economic laws that it becomes a descent into economic chaos. The second is a legitimate exercise of governmental power and leadership even under that system of free enterprise which is the economic correlative of the political phase of democracy. There is always the danger, however, that government planners and “social engineers”, working through a bureau cracy, will attempt to assume the role which they never can fill,—the role played normally by unnumbered indi vidual entrepreneurs and managers in industry and trade whose enterprise and ability, exercised both cooperatively and competitively under the compulsions of consumer demand, operate in a free market to produce a viable, dynamic, and progressive economy. The tendency is for government planners to usurp even the role of the con sumers by attempting to dictate to them what they must take in satisfaction of their demands instead of leaving 457 Text of the Mutual Defense Treaty between the United States and the Republic of China THE Parties to this Treaty, Reaffirming their faith in the purposes and principles of the Charter of the United Nations and their desire to live in peace with all peoples and all governments, and desiring to strengthen the fabric of peace in the West Pacific area, Recalling with mutual pride the relationships which brought their two peoples together in a common bond of sympathy and mutual ideas to fight side by side against imperialist aggression during the last war, Desiring to declare publicly and formally their sense of unity and their common determination to defend themselves against ex ternal armed attack, so that no potential aggressor could be under the illusion that either of them stands alone in the West Pacific area, and Desiring further to strengthen their present efforts for collective defense for the preservation of peace and security pending the devel opment of a more comprehensive system of regional security in the West Pacific area, “Have agreed as follows: ikRTICLE I. The Parties undertake, as set forth in the Charter of *• the United Nations, to settle any international dispute in which they may be involved by peaceful means in such a manner that inter national peace, security, and justice are not endangered and to refrain in their international relations from the threat or use of force in any manner inconsistent with the purposes of the United Nations. Article 11. In order more effectively to achieve the objective of this Treaty, the Parties separately and jointly by self-help and mu tual aid will maintain and develop their individual and collective ca pacity to resist armed attack and communist subversive activities directed from without against their territorial integrity and political stability. Article 111. The Parties undertake to strengthen their free insti tutions and to cooperate with each other in the development of eco nomic progress and social well-being and to further their individual and collective efforts toward these ends. Article IV. The Parties, through their Foreign Ministers or their deputies, will consult together from time to time regarding the imple mentation of this Treaty. Article V. Each Party recognises that an armed attack in the West Pacific area directed against the territories of either of the Parties would be dangerous to its own peace and safety and declares that’it would act to meet the common danger in accordance with its consti tutional processes. Any such armed attack and all measures taken as a result thereof shall be immediately reported to the Security Council of the United Nations. Such measures shall be terminated when the Security Coun cil has taken the measures necessary to restore and maintain interna tional peace and security. Article VI. For the purposes of Articles II and V, the terms “ter ritorial” and “territories” shall mean in respect of the Republic of China, Taiwan and the Pescadores; and in respect of the United States of America, the island territories in the Western Pacific under its ju risdiction. The provisions of Articles II and V will be applicable to such other territories as may be determined by mutual agreement. “Ar tide VII. The Government of the Republic of China grants, and the Government of the United States of America accepts, the right to dispose such United States land, air, and sea forces in and about Taiwan and the Pescadores as may be required for their defense, as determined by mutual agreement. Article VIII. This Treaty does not affect and shall not be inter preted as affecting in any way the rights and obligations of the Par ties under the Charter of the United Nations or the responsibility of the United Nations for the maintenance of international peace and security. Article IX. This Treaty shall be ratified by the United States of America and the Republic of China in accordance with their re spective constitutional processes and will come into force when in struments of ratification thereof have been exchanged by them at Taipei. Article X. This Treaty shall remain in force indefinitely. Either Party may terminate it one year after notice has been given to the other Party. In witness thereof the undersigned plenipotentiaries have signed this Treaty. Done in duplicate, in the English and Chinese languages, at Wash ington on this second day of December of the year one thousand nine hundred and fifty-four, corresponding to the second day of the twelveth month of the forty-third year of the Republic of China. For the United States of America: John Foster Dulles For the Republic of China: George K. C. Yeh them free choice. Government planning which goes this far results in the establishment of the “planned economy” which is the very opposite of the system which develops under the political and economic freedom which is demo cracy. Similarly, an important distinction is to be made between the “cult of the common man”, attacked by Mr. Hoover, and such efforts as President Magsaysay is making to improve the living conditions in our barrios,—such as by boring more artesian wells, constructing side-roads, etc. There are certain things which the people in our rural areas can not well do for themselves and in which they need assistance. However, encouraging them in self-help is a far sounder’policy than to submit them to being done good to by various governmental entities. Under democracy, the independence and self-reliance of the people is respected, and they are not turned gradually into public charges. The “Communist” despots pretend to act in the name and on behalf of the “proletariat”, the “broad masses”, to whom they promise “security”, but they must submit. They promote a cult of the “common man”, yet completely disregard him as an individual. The people are played upon by propaganda, brought into line by terror, driven like cattle, and cheated of their birthright as human beings. The basic tenet of democracy is that the people are sovereign, not the state, and while democratic government concerns itself with the interests of the people as a whole, democratic lawmakers take their most definite stand on the maintenance of the sacred rights of the individual. Democracy thus successfully combines the interests of the people and of the individual, being based on the people’s power and the individual’s rights. All this is not to say that we in the Philippines can draw no lessons from Mr. Hoover’s speech or that his warnings do not apply here. They apply here as much as in the United States, at least. We have already gone rather far in the creation of too strongly centralized a government and a relatively too extensive a bureaucracy, in the establishment of too many government corporations competing dangerously with private business, in the imposition of controls too dictatorial for the encouragement of free enterprise, in the levying of taxes too heavy for the present stage of economic devel opment, in legislation which in the name of “security” lays additional burdens too great for our industry and com merce, and, generally, in the development of a governmental system and an official attitude which too closely approaches the socialistic not to give rise to the fear that, wholly un intentionally, we ourselves are letting down the “boarding ladders” for Communism along the sides of our ship of state. 458 December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 459 Motor Vehicles in the Philippines, 1912-1953 By The Motor Vehicles Office Department of Public Works and Communications NUMBER OF MOTOR VEHICLES REGISTERED, DRIVER S LICENSES ISSUED, AND COLLECTIONS MADE EVERY YEAR, 1912 TO 1953 Year 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 MotorCycles 459 711 882 1,050 876 1.209 1,038 1,181 1,113 965 909 833 815 758 703 574 388 385 626 554 534 524 Total 2,650 P Collections Year 1936 1938 1939 1940 1941 1942 1943 1945 1946 1948 1949x 1950x 1951x 1952x 1953 Cars Trucks 28,420 30,361 32,301 32,918 33,898 34,000 17,355 18,293 18,869 20,735 20,236 21,200 Total 46,293 49,194 51,751 54,205 54,764 56,000 Collections 5,300,000.00 3,824 2/,BO/ 34,591 38,992 45,016 {50,143 49,997 50,876 —TR-705 for 1949 TR-1,160 for 1950 TR-1,273 for 1951 TR-1,480 for 1952 8,996 37,376 47,658 51,404 54,190 55,104 54,438 5S.267 56,127 13,048 59,609 76,060 86,868 94,317 101,683 106,240 106,944 108,866 39,528 1,431,552.81 148,371 8,221,666.18 144,739 11,959,715.48 180,365 13,562,294.89 199,728 14,627,690.38 200,561 15,930,201.48 213,375 17,684,322.75 195,419 17,870,173.42 186,955 18,801,626.52 Philippine Foreign Trade Statistics First Half of 1954 Compared with First Half of 1953 Bureau of the Census and Statistics January-June. 1954 January-June, 1953 885,028.411 100.00 842,764,212 100.00 iiis “lili II. TEN PRINCIPAL EXPORTS •F.o.b. value III. FOREIGN TRADE OF THE PHILIPPINES WITH FIRST TEN COUNTRIES: January to June, 1954 Percen t Percen t Percent Coun try Total Trade distri Imports distri Total distri Domes tic Re-Exports bution bution Exports bution Exports Total......... . ... 885,028,412 100.00 444,925,914 100.00 440,102,497 100.00 435,869,759 4,232,738 United States............... . . . . 595,235,614 67.26 303,761,386 68.27 291,474,238 66.23 290,837,653 636,585 Japan.............................. . . . . 77,133,355 8.72 25,552,138 5.74 51,581,217 11.72 48,708,873 2,872,344 Netherlands.................. . .. . 37,034,395 4.18 8,937,282 2.01 28,097,113 6.38 28,090,555 6,558 Indonesia........................ .... 22,666,979 2.56 22,470,758 5.05 196,221 .05 146,489 49,732 Canada.......................... . . . . 20,955,972 2.37 16,718,120 3.76 4,237,852 .96 4,237,852 — Germany........................ .... 17,384,481 1.96 8,727,168 1.96 8,657,313 1.97 8,639,285 18,028 Great Britain.............. ... . 15,762,653 1.78 8,792,477 1.98 6,970,176 1.58 6,943,919 26,257 Belgium.......................... . . . . 14,215,623 1.61 6,429,812 1.45 7,785,811 1.77 7,785,811 — Bahrein Islands........... 7,603,526 .86 7,603,526 1.71 — — — — Denmark........................ 7,342,312 .83 374,638 .08 6,967,674 1.58 6,967,674 — Other countries........... 69,693,491 7.87 35,558,609 7.99 34,134,882 7.76 33,511,648 623,234 IV. FOREIGN TRADE OF THE PHILIPPINES WITH FIRST TEN COUNTRIES: January to June, 1953 Country Percent Percen t Percent Domestic Total Trade distri- Imports distri Total distri Exports Re-exports but ion bution Exports bution Total. 4. Canada.................................... 5. Great Britain........................ 10. Spain..................................... of the 842,764,212 100.00 445,731,126 100 00 397,033,086 ’100 00 396,075,816 895,270 640,961,649 76.05 347,422,984 77 94 293,538,665 73 93 293,075,931 462,734 63,023,221 7.48 21,042,594 4 72 41,980,627 10 57 41,968,028 12,599 18,668,185 2.22 18,120,892 4 07 547,293 14 434,305 112,988 12,745,570 1.51 11,708,402 2 63 1,037,168 26 1,037,168 — 11,565,415 1.37 4,989,718 1 12 6,575,697 1 66 6,549,885 25,812 11,518,158 1.37 4,157,764 93 7,360,394 1 85 7,355,394 5,000 7,327,198 .87 1,648,322 37 5,678,876 1 43 5,678,576 300 6,980,743 .83 2,844,592 64 4,136,151 1 04 4,136,151 — 6,264,510 .74 4,849,350 1 09 1,415,160 36 1,309,011 106,149 6,234,011 .74 1,525,282 34 4,708,729 1 19 4,705,793 2,936 57,475,552 6.82 27,421,226 6 15 30,054,326 7 57 29,887,574 166,752 460 The Business View A monthly review of facts, trends, forecasts, by Manila businessmen The Government From Official Sources NOVEMBER 1—President Ramon Magsaysay, this being All Saints Day, sends wreaths to the tombs of the late President and Mrs. Manuel L. Quezon, the late President Manuel Roxas, the Un known Soldier at Fort Santiago, and the Veteranos de la Revolucion. The President creates a committee, headed by Brig. Gen. Pelagio Cruz, Chief of the Air Force, to determine the liability of Col. Vic tor H. Dizon, former acting Civil Aeronautics Administrator, in con nection with the dismantling of the tower at the Puerto Princesa air field in July, 1952, and its loaning to the Bolinao Broadcasting Cor poration shortly thereafter. Nov. 2 — The President appoints six new judges to courts of first instance in a number of provinces and also a number of solicitors and assistant provincial fiscals. The President orders the release of P 70,000 for the improvement of the Baguio waterworks system. The President receives a group of members of the Philippine Col lege of Surgeons which has just completed its week-long tenth annual convention, attended also by 25 noted surgeons from the United States, including Dr. Nax Thorek, founder and secretary-general of the In ternational College of Surgeons. Nov. 3 — The President at a meeting of the Cabinet authorizes the immediate release of P2,000,000 to finance the purchase of ce ment under a new program which will provide cement without charge for the building of communal irrigation systems, the farmers them selves to provide the sand and gravel and the labor under the super vision of the district engineer; application for free cement may be sent in by any group of farmers either to the district engineer or to the Secretary of Public Works. Secretary of Agriculture Salvador Araneta reports that while reports as to this year’s rice production were that it would be short from 15% to 20% of requirements, the latest reports indicate the short age would not be more than 5%; the Secretary also reports on his De partment’s efforts to promote better rice-growing methods, stating that several farmers have been able to increase the production to more than 100 cavans to the hectare, and one farmer, in Isabela, to 163 cavans (as compared to the average of less than 30 cavans). During the * Cabinet meeting, the President instructs Commis sioner of Customs Edilberto David and acting Collector of Customs Rogaciano Millares, summoned to the meeting, to take immediate steps to stop the reported racketeering by customs personnel among incoming passengers; David denies customs personnel are involved and states others posing as customs officials are the perpetrators; the President instructs him to have his men properly uniformed and identified, and states .that unless there is immediate improvement he will assign Army personnel or Reserve Officers Training Corps cadets to meet and serve incoming persons. The President also instructs Executive Secretary Fred Ruiz Castro to call the attention of the Commissioner of Civil Service to the necessity of applying the stiffest penalties against erring govern ment employees and officials, the instructions following complaints from Department Secretaries of laxity in this respect. The President orders an administrative investigation of Mayor Engracio Santos of San Juan, Rizal, who was convicted of rape by the court of first instance but acquitted on a technicality by the Court of Appeals. The President receives three Hollywood actors,—David Brian, Marsha Hunt, and 9-year old Hugh Corcoran, now on “location” in the Philippines for a new picture, “The Hunted”, and tells them that he favors Hollywood filming here as this gives local producers an op portunity to learn new methods and techniques; he states he will look into the advisability of relaxing Central Bank regulations to permit remittances to the United States of a greater percentage of profits earned here by Hollywood movies filmed in the Philippines and show in local theaters. Among other callers received by the President are L. A. Peter son and several more executives of the Otis Elevator Company, and a number of prominent American surgeons, who attended the conven tion of the Philippine College of Surgeons, just closed. Nov. 4 — The President sends a telegram to Senator Lorenzo Sumulong in Washington requesting him to reconsider his reported decision to resign as a member of the Philippine Mission seeking re vision of the Bell Trade Act; newspapers have reported that the Se nator would resign because he is opposed to the official stand of the Mission for abrogation of Parity, insistence on which, he believes, will handicap the Mission’s chances of success. The President confers with Filemon Rodriguez, Chairman of the National Economic Council, and Eduardo Taylor, General Manager of the Cebu Portland Cement Company, and expresses concern over the increasing price of cement; he instructs them to study means for bringing down the cost and asks Rodriguez to look into the advis ability of constructing two more cement plants with a capacity of at least 10,000 bags each a day. The President appoints Ambrosio Geraldez as traffic judge of Manila The President returns a list of 50 Army officers recommended for integration into the regular force with the request that the list be re-examined and revised if necessary with a view to giving greater weight to active service in the field than to rear echelon assignments or headquarters duty, as he states in a memorandum addressed to Secretary of National Defense Sotero Cabahug. The President signs Executive Order No. 79 creating a National Forestry Council to coordinate and implement an action campaign for forest conservation and reforestation; the Council is composed of the Secretary of Agriculture as Chairman, a civic leader as Executive Chairman, to be appointed by the President, the Director of Fores try, the Chief of Constabulary, the Chief of the Philippine Airforce, the Under-Secretary of Justice, the Manager of the National Power Corporation, the Director of Soil Conservation, the Director of Ani mal Husbandry, a representative of the Philippine Lumber Producers Association, and a representative of the Society of Filipino Foresters; the Chairman is empowered to organize provincial forestry councils in provinces where they are needed, each such council to be composed of the District Forester, the Constabulary Provincial Commander, the Provincial Fiscal, the Division Superintendent of Schools, a rep resentative of a civic organization, a representative of the Provincial Governor, and a forestry licensee. The President visits the Bureau of Public Highways Yard and delivers a short talk to the Central Luzon district engineers who are holding a 2-1/2 week seminar there in the use and care of heavy equiment. The President orders police protection for the offended woman in the rape case against Mayor Santos of San Juan after she and her husband called on him and told him of their being molested by San Juan thugs even after they moved to another place; some time ago the woman’s chief witness in the case was stabbed to death, and the President also orders an investigation to determine whether the kil ling is connected with the rape case. Nov. 5 — Following the death today of Representatives Gre gorio Tan of Samar and Lorenzo Ziga, of Albay, in an automobile ac cident on a Pampanga highway, the President visits the Motor Ve hicle Office in Manila and ordered the Office to go “all out after traf fic law violators”; he issues similar orders to Brig. Gen. Florencio Selga, Chief of Constabulary, and appoints Col. Mariano Azurin as traffic general officer to coordinate traffic-regulation enforcement throughout the country. The President issues a statement of deep regret over the death of the two congressmen, both on the House health committee, who were making a survey of health facilities in rural areas. The President suspends Mayor Santos of San Juan, Rizal, and orders Vice-Mayor Nicanor G. Salaysay to take over as Mayor. Nov. 6 — The President receives Representative Ramon Durano of Cebu, one of the three congressmen who represented the Philip pines at the recent Colombo Plan conference at Ottawa, Canada; Du rano reports that the Philippine application for membership was warmly received by both Asian and Western powers represented and that formal rites of acceptance were staged within 5 minutes of the ap proval of the application, the Philippine flag being hoisted outside the conference building to fly side by side with the flags of other mem-, ber nations; he denies that large outlays would be required of the country TOWEVER much we have to be aware of cultural differences, there are also many common values—common strivings for freedom and human dignity and for better material conditions of life. Even where there are striking differences of em phasis, similar human aspirations provide much solid ground on which to rest joint efforts.”—Eugene Staley, “The Future of Underdeveloped Countries.” 461 and states that what his confrere, Representative Ferdinand Marcos, offered was the facilities of the Philippines’ educational institutions in accepting students from member nations in such fields as public health and agriculture. The President expresses his commendations, stating that Philippine participation in the Plan is another proof of the country’s desire to cooperate with its free neighbors in efforts to raise living standards in this part of the world. The President offers a government railway coach and a plane to carry the bodies of Representatives Ziga and Tan to their home prov inces. The President and Mrs. Magsaysay attend a ceremony held in the San Miguel Pro-Cathedral in commemoration of the golden wed ding anniversary of the President’s parents. Mrs. Magsaysay is reported to be very pleased with the conti nued popular response to her appeal for funds and donations for the Malacanang Christmas festival for poor children; more than half the target amount of P160.000 in funds and gifts has already been reached and the number of gift-bags may reach 12,000. Nov. 8 — The President issues an administrative order creating a committee to study the shipping industry composed of Commodore Jose M. Francisco, Chairman, and Judge Roman Cruz, and former Commissioner of Customs Alfredo de Leon as members. The President authorizes the release of a special Bureau of Fo restry budget providing P600.000 for the protection of forest areas; most of the money will be spent for wages for some 540 temporary and emergency deputy forest guards from November of this year to the end of June, 1955. The Piesident directs the Civil Aeronautics Administration to look for a site for the construction of an airfield on Marinduque. He also instructs Secretary of Public Works Vicente Orosa to begin re leasing the P185.000 set aside for waterworks in Padre Burgos, Quezon Province. The President receives a number of Caltex officials headed by C. Rolsholm; the President expresses his satisfaction over the establish ment of the oil refinery in Batangas. He also receives Robert Blum, President of the Asia Foundation of Chicago who arrived in Manila recently on a tour of South-east Asia to find out how his organization could assist the democratic nations of the region; he is accompanied by William T. Fleming, Manager of the Manila branch. Nov. 9 — The President visits the Central Bank and comments on the crowded offices; he tells acting Governor Andres Castillo that the export-import department should be removed to larger quarters and that the processing of dollar applications for machinery and raw materials should be facilitated as many businessmen had complained to him of the slowness of the processing. The President after motoring through Bulacan Province instructs Secretary of Agriculture Araneta to "up-date” his estimates of the rice harvest this year in view of the destruction wrought especially in Central Luzon by the typhoon “Ruby”. The President receives a large group of Nationalista members of Congress, provincial governors, and municipal mayors who present him with resolutions expressing their preference for a fusion of the Nationalista and Democratic parties but reiterating their pledges to support the President’s administration. Vice-President and Secretary of Foreign Affairs Carlos P. Garcia announces that he has appointed an honorary Philippine Consul General in Tel-Aviv and an honorary Philippine consul in Haifa, State of Israel,—Dr. Gershon Meron and Mr. Wolfgang Salomon, respect ively, both Israeli citizens; both are prominent in the business and civic life of the country and their appointment was recommended by Mr. Ernest Simke, Israeli honorary Consul in the Philippines. Nov. 10 — The President confers with Maj. Gen. Robert M. Cannon, Chief, JUSMAG (Joint U. S. Military Advisory Group), who informs him that the first shipment of MDAP (Mutual Defense Assistance Pact) equipment since the meeting of the Philippine-United States Defense Council last September, will soon arrive, valued at Pl7, 000,000; it will include bulldozers, dump-trucks, power shovels, float ing bridges, etc., to increase the construction capacity and combat efficiency of the Engineer Corps. The Cabinet, with the President presiding, approves in prin ciple a plan to permit entry of Filipino and American citizens in the other’s country as “international traders” on a basis of reciprocity; the plan will be implemented through an executive agreement be tween the Presidents of the Philippines and the United States, and Vice-President and Secretary of Foreign Affairs Carlos P. Garcia is asked to prepare legislation for submission to Congress authorizing the President of the Philippines to enter into such an agreement. The present Agreement provides for the entry of 1,200 American nationals yearly during the period 1946-51, these being entitled to 5-years’ stay, this period expiring in 1956. The Cabinet is informed that there are 2,000 American nationals now in the Philippines as representatives and employees of American firms, with some 1500 dependents. The Cabinet is informed by Social Welfare Administrator Pacita Madrigal-Warns that her office has extended relief to some 15,000 families (80,000 persons) who suffered most severely from the typhoon “Ruby” and that she could not do more because her organization has only a Pl,500,000 annual appropriation of which some 10% is set aside for salaries, wages, and other operational expenses; the President releases P100.000 to the Administration from his P10,000,000 con tingent fund and promises to make additional funds available if need arises. The Cabinet is informed by Economic Coordinator Alfredo Mon telibano that, contrary to earlier reports, only some 5% of the rice from Pakistan has been found to be spoiled; the shipment, totaling 10,000 tons, represents a fifth of the total importation contracted for from Pakistan by a private firm with assistance of the National Rice and Corn Corporation; Montelibano states that as Manager Chioco of NARIC, while in Pakistan, had warned against the spoilage NARIC could impose full responsibility on the importer; the President instructs Under-Secretary of Defense Jose M. Crisol to make 150 officers and men from the Quartermaster-General’s office at Fort McKinley available to assist in the checking of the rice. The President instructs Secretary of Finance Jaime Hernandez to assign responsible personnel to the airport and the piers to serve as “reception officers” and to check on the kind of treatment accorded by Customs and Immigration Bureau personnel to tourists. The President also instructs Secretary Hernandez to transmit to the Board of Governors of the Rehabilitation Finance Corporation his desire that the Corporation implement the approved plan to extend credit assistance to fish-pond owners. The President receives a group of members of the Manila Junior Chamber of Commerce which makes various recommendations with respect to traffic regulations, including the installation of speed gov ernors on all transportation buses limiting the speed to 60 mph., fixing all bus stops in the city, etc. The President receives some 120 delegates, representing 12 coun tries in the Far East, to the East Asia Christian Family Life confer ence being held in Manila; Dr. Gumersindo Garcia, President of the Philippine Federation of Christian Churches, presents the delegates. The President visits the Quezon City Fire Department to in spect a new fire-truck built locally on an International truck chassis; the President congratulates Paul Wood, General Manager of Inter national Harvester Company of Philippines and Ramon Estanislao, owner of the Center Supply Company, which built the truck. Nov. 11 —Malacanang issues the following press release: “Senator Laurel conferred with Japanese Premier Yoshida on the Japanese repa rations question in New York last week on instructions of President Magsaysay. Senator Laurel will meet again with the Japanese Premier in Washington next week. The President gave his sanction to Senator Laurel’s meeting^with Yoshida lead to early and satisfactory settlement of Hie reparationsPquestion. President Magsaysay is in touch with developments regarding the Laurel-Yoshida meeting, and Ambassador Felino Neri is likewise posted on such developments.” At the request of Lt. Gen. Jesus Vargas, Chief of Staff, the Pres ident approves a release of P100.000 for the construction of roads in Sulu; the President states he will also soon release funds for water works in the province. The President awards the Philippine Legion of Honor (legion naire) medal to 6 farmers of Lal lo, Cagayan, “for meritorious achieve ment in connection with the peace and order campaign of the Govern ment.” The farmers last October, though armed only with bolos and 1 shotgun, killed 3 and wounded another Huk and captured 2 shot guns, 1 rifle, and 1 pistol in resisting a Huk demand for rice. The President confers with members of the Board of Directors of the People’s Homesite and Housing Corporation and instructs them to seek means of reducing the rentals and to extend the period of pay ment for government low-cost houses to 20 years. He instructs Secre tary of Public Works Orosa to speed the construction in Tondo. Nov. 12 — The President in a conference with Governor Ale jandro Almendras and Representative Ismael Veloso of Davao, is sues a directive to Secretary of Public Works Orosa to release P10,000 for the Matti Bulatakay waterworks, a directive to Secretary of Agriculture Araneta to declare 10,000 hectares of land on Mt. Apo as available to settlement to families already settled there, and a direc tive to Col. Antonio Chanco, Chief, Engineer Corps, to give one pre fabricated school house to the town of Digos; he also states that set tlers on government lands should be called "pioneers” and not “squat ters”. Executive Secretary Castro swears in Second Assistant Fiscal Jose B. Jimenez and 27 assistant fiscals of the City of Manila follow ing their promotional appointments by the President. Secretary Castro also swears into office Ubaldo Carbonell as Assistant National Treasurer. Nov. 13—The President approves the implementation of a largescale coffee-production program presented to him by Secretary of Agriculture Araneta, Secretary of Commerce Oscar Ledesma, and Economic Coordinator Montelibano; the RFC will loan up to Pl,000 a hectare to coffee planters in instalments, the maximum to any one planter not to exceed P20.000, and already there are some 200 ap plicants; the Department of Agriculture will look after the selection and planting of seed, the Bureau of Forestry will lease a number of farms, and the National Resettlement and Rehabilitation Adminis tration (NARRA) will encourage settlers to plant coffee; Boron Goto, and FOA coffee expert from Hawaii, will serve as adviser. At the pre sent time some 18,000 hectares of land in the country are planted to coffee and the program aims to increase this to 160,000 hectares; pre sent importation of coffee runs to P7,000,000 a year. The President receives a delegation of poultry raisers from Nueva Ecija who request a lowering of the price of poultry feed and he di rects PRISCO Manager Ismael Mathay to import the feed and to sell it at as low a price as possible and also inquires from Col. Osmundo Mondonedo, Chairman of the Agricultural Credit and Cooperative 462 Financing Administration, about the status of the construction of a frigerator house at Polo, Bulacan, being told that it would be com pleted within 3 or 4 months, at which time the ACCFA will begin buying and storing eggs. The President receives a group of nine members of the Manila City Council who present a number of administrative charges against Mayor Arsenio H. Lacson involving dishonesty and misconduct and oppression in office; the President refers the charges to Secretary of Justice Pedro Tuason for study and advice as to whether “the charges warrant suspension of the respondent Mayor pending investigation and final disposition of the case.” Nov. 14 — The President launches a comprehensive socio economic development program for Sulu in a 2-hour conference with members of his Cabinet and ranking government and army officials, to include new land surveys and the opening of public lands to settle ment, erection of additional schools and the assignment of native school officials and teachers, dispatch of Army and Department of Health mobile health units, improvement of waterworks, and additional aid from the Social Welfare Administration; the President has already appointed Makapanton Abbas as the first Moslem judge. The President instructs Executive Secretary Castro to telegraph all governors and city mayors in the areas affected by the typhoon “Ruby” to direct the municipal treasurers to requisition rice from the NARIC for relief supplies, the treasurers to sell the rice direct to the people. Nov. 17 — The President at a meeting of the Cabinet approves in principle the purchase of some 300,000 tons of rice from the United States Government under the provisions of the U. S. Agricultural Trade Development and Assistance Act of 1954, and he directs a spe cial committee, headed by Economic Coordinator Montelibano to make a further study of the details involved. Mr. Montelibano, who has already discussed the matter with Col. Harry A, Brenn, FOA chief, reports that in the purchase, pesos, not dollars would be used and that the proceeds of the sale of 300,000 tons of the rice, which would amount to some P100.000, would be earmarked for the Philip pine Government economic development program, the contract, how ever, requiring that the Philippine Government present concrete plan showing how the proceeds would be utilized. During the meeting of the Cabinet the President speaks of his desire for a constructive examination of the controversy over the Mi nimum Wage Law and he creates a committee to obtain a cross section of public opinion on the matter composed of Secretary of Defense Sotero Cabahug, Chairman, and Dean Jorge Bocobo, Dr. Gaudencio Garcia, Dr. Amando Dalisay, and Fr. Pacifico Ortiz, S.J., members. Secretary of Agriculture Araneta tells the Cabinet that manga nese ore (which generally consists of small particles) has been used on a small scale to spread around Manila hemp plants as a cure for the mosaic disease and that it seems to be efficacious; it costs only some 3 centavos per abaca “hill” to apply and he states he plans a larger scale experiment. The President following a conference with Governor Francisco Infantado, instructs Secretary of Public Works Orosa to release P50,000 from the contingent fund for the construction of barrio roads in Oriental Mindoro. The President makes a surprise visit to the NARIC compound on Azcarraga Street and the bodegas on Pureza to check personally on reports that the rice imported from Pakistan is infested with worms and weevils; he is informed that it is estimated that from 10 to 20% is in bad condition, but that, otherwise, it is good to eat and that there is a big demand for it; noting long queues of people waiting to buy the rice, the President orders the opening up of more booths; he takes a ganta of the rice with him to try for himself. Mrs. Magsaysay expresses great satisfaction with the mounting donations for the Malacanang Christmas festival for under-privileged children; cash donations now total P82.000, some firms having donated as much as P5.000 each, and donations in kind are estimated to exceed P20.000 in value. Nov. 18 — The President administers the oath of office to Pedro Sevilla as Fiscal of Quezon City, vice Jose F. Fernandez who has been appointed judge of the Court of First Instance of Bukidnon. The President confers with Bureau of Internal Revenue and Na tional Bureau of Investigation officials, Internal Revenue Collector J. Antonio Araneta reporting that the gross collections from July to September, 1954, amount to P123.792.223, as compared to P122,179,896 during the same period last year, and Jose Aranas, Chief of the BIR-NBI- group reporting a fanning out of its efforts to the prov inces and imposing assessments of around P8,634,000; the President "was informed that provincial taxpayers were now feeling the impact of the team’s activities and that the team expected substantial as sessments from taxpayers ‘who had hereto not been paying the lawful taxes due the Government.’ ” The President transmits, without comment, to the Board of Re gents of the University of the Philippines, the report submitted to him by the presidential committee which investigated the hazing in the University. Nov. 19 — The President holds a breakfast conference with United States Congressmen John M. Vorys and James P. Richards who are visiting the Philippines in the course of their inspection of FOA operations; the Congressmen were accompanied by American Ambassador Raymond A. Spruance, Counselor Charles Burrows, and Col. Brenn, head of the FOA in the Philippines. The President receives Minister Roberto Regala recently re turned from Australia who takes up with him a plan to increase trade with that country under special licenses under which arrangement lumber would be sent to Australia and cattle, butter, powdered milk brought in from there; the President instructs Regala to work out the details with acting Central Bank Governor Castillo. The President appoints a committee to study plans for the Wal led City, Manila,—whether the area should be preserved as a national shrine or be turned into a business or residential district; the com mittee is composed of Anselmo Alquinto, Chairman of the National Planning Commission, as Chairman, and of the following other mem bers: Capt. Andres O Hizon, Juan Nakpil, Oscar Arellano, and Carlos da Silva. The President commends the Armed Forces of the Philippines on the killing in a remote Albay barrio, yesterday, of Mariano Balgos, No. 3 Huk, who had a prize of P50.000 on his head, and approves an on-the-spot promotion for 25 enlisted men involved in the actual assault; also the temporary promotion of number of officers, as recommend ed by Chief of Staff Vargas. Nov. 20—The President creates a presidential acting committee on Sulu affairs to implement his 6-point socio-economic development program for the province, headed by the Governor of Sulu as Chair man and with representatives of various Departments and other gov ernment entities as members; the President directs the committee to consult with prominent residents and the people of Sulu in the im plementation of the program. Nov. 21—The President, following the acquittal of Col. Telesforo Tenorio, Manila Chief of Police, of the crime of qualified theft by the Manila Couit of First Instance, in an administrative order dismisses the administrative case filed against him and orders his im mediate reinstatement in office. Nov. 22 — The President receives the credentials of Carlos Al berto Pasini Costadoat, Argentine Minister, in ceremonies in Mala canang. The President receives Robert L. Garner, Vice-President of the International Bank for Reconstruction and Development, and several other World Bank officials who are scheduled to visit Negros and Da vao, the power and chemical plants in Lanao, and the Ambuklao and the Marikina power projects; later the President gives a luncheon in their honor. The President releases P100.000 for the construction of an annex to the Pampanga provincial hospital. He also approves the release of P70.000 for a flood control project at Bangar, La Union. In the evening the President visits former President Elpidio Quirino at the Lourdes Hospital where he has been resting for several days. Nov. 23 — The President issues a proclamation declaring Thurs day, November 25, as a special public holiday for national thanksgiving and calling upon the people “to turn their thoughts and actions on that day toward Almighty God and offer Him a prayer of thanks for all the blessings he has showered upon us.” The President, traveling by airplane, makes a one-day visit to the Iwahig Penal Colony at Puerto Princesa, Palawan, prisoners there numbering some 14,500, and in a conference with officials sets projects afoot under which released prisoners will be given 6 hectares of land to own and cultivate in the Tagumpay area; two plants will be set up to supplement the Army manufacture of prefabricated schoolhouses (another such plant is to be set up in the Davao Penal Colony), the schoolhouses to be paid for at the cost at which the Army produces them and in case of a profit 50% to go to the Colony inmates’ families; a canning factory will be established to can ham, fish, and other products; the Colony carabao farm will be enlarged; large-scale coffee production will be undertaken; and the production of rice will be increased. The Colony this year produced 54,009 cavans of palay, the largest crop in its history, and now has 1,300 carabaos. Nov. 24 — The President at a meeting of the Cabinet approves a waiver of progressive taxes in favor of 4 sugar centrals (Asturias, Ormoc, Don Pedro, and Bogo-Medellin) under Commonwealth Act No. 576, on condition that the centrals accord the planters a partici pation of at least 60% in the total production; he approves in principle the purchase of buildings and grounds for embassies and legations, on grounds of economy, and specifically the acquisition of the present embassy building in Jakarta, Indonesia, the Reconstruction Finance Corporation to finance the purchases: he authorizes the Secretary of Agriculture and Natural Resources to purchase from the People’s Homesite and Housing Corporation a 20 hectare site in Diliman, Que zon City, for the building of the Department’s offices, the PHHC to assume responsibility for the construction of roads, and the construc tion of buildings to be financed by a P2,000,000 bond issue under Re public Act No. 1,000; the President also authorizes the release of P557,800 to some seven typhoon-stricken provinces for the repair of public buildings, roads, bridges, etc. The President and Cabinet take further steps to encourage the cassava industry by approving rules and regulations designed to im plement Republic Act No. 657 and Executive Order No. 15; PRISCO (Price Stabilization Corporation) is directed to require for the issuance of wheat-flour-import licenses that the importer buy cassava flour not to exceed 30% of the wheat flour (by weight); the cassava flour is to be packed in standard 50-lb. bags and must be produced in conformity with government specifications; importers who fail to comply will be disqualified from engaging in the importation of wheat flour for a period 463 of not more than 5 years; appeal may be had to the Administrator of Economic Coordination whose decision will be final. The President at the Cabinet meeting creates a committee to study the current marine officers’ strike with a view to determining whether the strike should be referred to the Court of Industrial Re lations for settlement; under Republic Act No. 875, the “Magna Carta of Labor”, this may be done if the President certifies that a strike affects the national interest; the strike recently resulted in the death of a marine officer in a picketing riot. Nov. 25 — The President directs the suspension of the Cabinet decision yesterday to exempt certain sugar centrals from the progres sive tax for the crop-year 1953-54 until a plan can be drawn up to in sure full compliance with the conditions of the waiver. The President instructs the Department of Foreign Affairs to expedite the inquiry it has initiated into other alleged instances of the “unfriendliness” of Mr. M. A. Baig, the Indian Minister, following publication of an article in an Indian newspaper quoting the Minister as having made certain remarks to the effect that the Philippines is still an “American colony”. (Mr. Baig is later quoted in the Manila press as categorically denying he ever made such a remark.) Nov. 26 — The President inducts Col. Alfredo M. Santos, com manding officer of the II Military Area, as a brigadier general and congratulates him as the officer credited with the killing of the two top “Huks,”—Guillermo Capadocia, in Panay, and, more recently, Mariano Balgos, in Albay. The President receives Eric Johnston, Mrs. Johnston, and a num ber of others connected with the moving picture industry in the Philip pines; Mr. Johnston is President of the Motion Picture Association of America and was four times President of the Chamber of Commerce of the United States; he is also Chairman of the International. Advisory Board which draws up policies for the U. S. Technical Assistance Pro gram. Nov. 27 — The President directs the Government Insurance System to release dividends to members of the system before Christ mas; some ?2,000,000 will be distributed; he also authorizes the GSIS to extend two-month salary loans to government employees in the typhoon-stricken areas to enable them to rebuild their homes. Nov. 28 — The President creates a presidential committee, headed by Col. Luis Mirasol, Economic Development Corps chief, to inves tigate charges that the rights of settlers in Luzville, a settlement near Kabankalan, Occidental Negros, are being “flagrantly violated by NARRA (National Resettlement and Rehabilitation Administration) officials.” He also orders Economic Coordinator Montelibano to change the name of the settlement from “Luzville” to any other, stating that it is not his desire to have his name or the names of members of his family perpetuated by naming towns, public buildings, etc., after them. Nov. 29 — The President, on the eve of Bonifacio Day, approves the release of P100.000 for the transfer of the remains of some 3,000 soldiers buried in various parts of the country for reinterment in the Libingan ng mga Bayani (National Heroes Cemetery) formerly the Republic Memorial Cemetery, at Fort McKinley, and for the im provement of the grounds; it is planned to have the “Tomb of the Unknown Soldier” constructed there also. Nov. 30 — The President motors to Lucena, Quezon Province, to unveil the monument to the late President Manuel L. Quezon and to inaugurate the newly completed Pl,000,000 Dumaca irrigation system, some 6 kilometers away; because of heavy rain, the unveiling ceremonies are postponed but despite the weather the President turns on one of the control valves of the Mayao gate; a conference with Que zon Province (formerly Tayabas) officials also has to be postponed. LIABILITIES Currency—Notes.............. P555.576 Coins............... 74,384 Demand Deposits-Pesos. 117,682 Securities Stabilization Fund................................. 2,000 Due to International Monetary Fund........... 22,498 Due to International Bank for Reconstruc tion 8s Development.. 2,389 Other Liabilities............... 2,636 Deferred Credits............... — Capital................................. 10,000 Undivided Profits............ 6,464 Surplus................................. — P793.629 Contingent Account Forward Exchange Sale P6.460 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 ASSETS Dec. 31 Aug. 30 Sept. 30 Oct. 29 1949 1954 1954 1954 (In thousands of pesos) International Reserve. .. P460.689 P474.267 P444.048- P428.816 Contribution to the In ternational Monetary Fund................................. 30,000 30,000 30,000 30,000 Account to Secure Coinage.................................... 113,306 106,940 106,941 106,940 Loans and Advances.... 77,047 5,217 20,037 37,388 Trust Account-Securities Stabilization Fund.... — — — __ Domestic Securities......... 92,197 226,445 224,059 225,572 Other Assets...................... 20,390 54,173 59,200 61,068 P793.629 P897.042 P884.285 P889.784 P897.042 P884.285 P889.784 P599.715 P601.737 P604.784 84,928 84,993 85,110 157,339 138,684 138,702 14,862 14,862 14,860 496 496 496 2,377 2,377 2,377 7,094 10,505 12,265 1,326 1,736 2,138 10,000 10,000 10,000 5,637 5,627 5,784 13,268 13,268 13,268 The International Reserves as of October 31, 1954, were as follows: Central Bank International Reserves.................................$ 214,407,771.79 Japan Open Account (due from)........................................ 17,332,577.62 Net FX Holdings other Banks........................................... 64,333,176.11 $296,073,525.52 This is a decrease of approximately $9,550,000 as compared to September 30, 1954. Currency and coins issued totalled P689,893,427.81. money is still tight in Manila and the provinces. The Philippines has suffered three typhoons in the last three weeks and preliminary reports indicate an already short rice crop may have been further damaged. Unem ployment is still of growing concern for no concrete program has yet been adopted to combat it. Manila Stock Market By J. J. Ortigas Picornell, Orti&as & Co. October 23 to November 26 MINING shares moved in a narrow range early in the period under review, until the market rallied in the last few days on increased volume. Lepanto Consolidated continued to advance to new highs while Philippine Iron Mines, which until recently had been under pressure, advanced sharply on speculative buying inspired by the announcement of two cash dividends amounting to P0.10 and reports of the discovery of radioactive material in its property at Larap, Camarines Norte. The enthusiasm overflowed to other issues registering small advances, although demand has been selective and almost entirely confined to Acoje, Atlas, Baguio Gold, and Surigao. The price of gold in the free market is approximately at P109.50 per fine ounce nominal. In the commercial and industrial section of the mar ket, San Miguel Brewery common was lower, while Philip pine Long Distance Telephone Company common was steady to firm. 1953-54 Range High Low 124.68 82.78 O.25S 0.11 0.0875 0.037 2.75 0.80 0.0975 .06 0.0026 4.60 0.031 0.026 0.0011 2.60 0.008 0.017 0.305 0.04 0.22 0.08 MINING SHARES High Low Close Change Total Sales M.S.E. Mining Share Acoje Mining Co....... Atlas Cons. Ming. 8s Dev. Corp............... Atolc Big Wedge Mining Co....................... Baguio Gold Mining Co............................... Batong Buhay Gold.. Benguet Cons.............. Coco Grove, Inc....... Consolidated Mines, 124 68 $96.38 119.39^ Up 21.70 ^29,621,912 .11 il475 Up .0375 1’,060,245 08 85 0825 0018 90 01 .0725 .85 .0012 2.80 .008 .08 Up .0075 3,217,453 .85 Off .25 2,000 General Base Metals. . Hixbar Gold Mining Co.............................. 026 075 .0925 .08 .0825 Up .0018 Up 2.85 Off .008 Off .024 Off Off i04 .0925 Up .01 .0006 .10 .006 .0025 59,000 464 0.03 0.325 0.13 0.1475 0.05 0.23 0.06 1.40 0.27 0.015 0.17 0.008 Itogon Mining Co... . Lepanto Cons.............. M'arinduque Iron Mi nes ............................. Mlindanao Mother Lode.......................... Paracale Gumaus Philippine Iron Mines, Inc. x........................ Surigao Cons............... Suyoc Cons.................. x—Ex-Dividend .03 .67 .135 .115 1.00 .22 .01 P196.00 135.00 20 00 11 00 72 50 60 00 130 00 100 00 45 00 26 .03 .52 .13 .105 1.43 .18 .01 .03 .64 Up .135 Up .105 Off .20b 3.30 .22 .01 Up Up Up .005 .005 .176 .03 .002 370 12 00 360 75 " 10 00 00 22 2 00 50 7 50 7 0 0 27 3 2 80 0 06 0 06 104 10 00 101 00 5 00 00 25 50 25 25 50 0 0525 0 014 0 100 00 99 50 35 50 29 00 103 00 93 50 102 00 10 00 00 Bank of the Philippine Bogo-Medellin Mil ling............................ Central Azucarera de Central Azucarera de la Cariota................ Central Azucarera de Tarlac....................... China Banking Corp... Cia. de Cclulosa de Filipinas.................... Fil Cia. de Seguros. . . . Industrial Textiles Mfg. Co. P.I........... Insular Life Assurance Co.............................. Manila Broadcasting Co............................... Manila Wine Mer chants ....................... Marsman 8s Co., pref............................ Mayon Metal, Class “B”........................... Meralco, 6-1/2 ........ Philippine Air Lines, Inc.............................. Philippine Guaranty Philippine Long Dist. Tel. Co., com.......... Philippine Oil Dev. Philippine Racing Club, Inc.................. R fit D 4% Bonds— 1959........................... San Miguel Brewery, San Miguel Brewery, San^Miguei Brewery, 8% pref.................... Williams Equipment, COMMERCIAL SHARES — 200.00b 70.00 2.50 .40 17.25 65.00 65.00 — 130.00a 12.75 2.50 .40 Off 5.00 .045 ..00 1.00 33.00 32.00 99.00 99.00 104.00 103.50 12.75 22.00b 2.50 ',75b .40 3.40b ,30a 10.00a 24.00a 17.00 Up .043 Up 99.50b Off 32.50 99.00 .50 .013 .50 Off Off Off 10.00b .50 .50 .50 170,000 1,454,602 139,761 255,000 60 55 10,000 8,038 16,811 2,133 871 Company Benguet Exploration................ Demonstration Gold Mines . . . Jai Alai Corp, of the Phil........ Philippine Electrical Mfg. Co. Syndicate Investment, Inc. .. Victorias Milling Co. Inc........ OVER-THE-COUNTER High ....................... P 0.03 ....................... 0.005 ....................... 6.00 ........................... 70.00 ....................... 0.0005 ........................... 95.00 005 00 00 0005 00 Close Total Sales 0.03 0.005 6.00 70.00 0.0005 95.00 23,000 90,000 20 80 110,000 400 have indicated that the general credit and collection situa tion at this time in 1953 was worse than at the same time in 1952 and that 1954 has been worse than 1953. Infor mation suggests that banks have little “loanable money” for domestic financing, while imports have been rather heavy. To some extent this is considered due to anticipated tightenings on imports during the first semester of 1954. Postdated checks have been increasingly evident and some credit men and bankers consider the use of post dated checks becoming virtually habitual in many in stances. In effect, a postdated check has become an in strument of credit which imposes a burden on the seller who gets no interest. The risk involved is limited because of possible criminal action, but the financial burden re sulting from lack of cash of buyer is not carried by the buyer but transferred to the seller. As a consequence of conditions which have developed, use of domestic letters of credit has been introduced on a wider scale. In other countries negotiable instruments normally used in foreign trade undertakings, have been used domestically, and it is expected such instruments will be increasingly used in the Philippines, at least during periods of tight money. This use of domestic letters of credit places the financial burden on the buyer and has other advantages and safety benefits. Some collection men reporting slight recent improve ment in collection, believe this improvement is due in large part to the habit of some businessmen of settling all accounts by the end of each calendar year. This will result in some improvement during December, but accounts are expected to build up quickly again in January. One credit man reports good results recently on accounts turned over to attorneys for collection. One firm previously paid a collector on a straight salary basis, but changed to a commission basis for collections beyond a basic quota. The results were so encouraging that a second collector was placed on the same basis on collections above a quota based on a previous average. The arrangement appears to be working very well, with both collectors making more income and the firm increasing its collections in one month 50% over any month in the previous year. 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.) held on November 19, 1954, its annual general dinner meeting. This year the attendance was larger than in any previous year, with well over 200 persons attending. Membership in the Association has increased and now stands at the highest total in its history, with three applications pend ing and with the Commercial Bank and Trust Co. affiliat ing November 15, 1954. The Association transferred on November 22 to larger quarters .in the Elks Club Building, Dewey Boulevard, and the next monthly directors’ meeting will be held in the offices there. The recently-added service of providing in formation to members on new partnerships and corpora tions and on dissolved partnerships and corporations has been quite helpful. The Ledger Interchange Bureau has been very active in recent weeks, with many members taking an active part in the interchanging of actual ledger information on account names. Most credit and collection executives recently inter viewed agree that business has not been very good during November and that money has continued very tight, with little if any change in collection problems. Several Electric Power Production (Manila Electric Company System) By J. F. Cotton Vice-President, Manila Electric Company 1941 Average—16,316,000 KWH Kilowatt Hours 1954 1953 January................................................................... 57,301,000 50,107,000 February................................................................. 52,447,000 45,501,000 March...................................................................... 57,779,000 50,789,000 April......................................................................... 54,408,000 49,159,000 May.......................................................................... 57,773,000 52,042,000 June............................................ 58,525,000 51,304,000 July.......................................................................... 60,206,000 53,877,000 August..................................................................... 60,385,000 54,275,000 September.............................................................. 59,680,000 53,636,000 October................................................................... 62,184,000 55,943,000 November.............................................................. 58,737,000 53,756,000 December............................................................... 57,968,000 Total............................................................... 628,357,000 Output in November was 4,981,000 KWH, or 9.3% above November last year. The decrease from last month was due to the shorter month and two holidays. Service was interrupted in most areas served because of typhoon “Ruby” but all circuits Were reconnected within less than 20 hours. 465 Real Estate By Antonio Varias Vice-President, C. M. Hoskins &• Co., Inc., Realtors REAL ESTATE sales registered in the Greater Manila area during the month of November, 1954, numbered 511, with a total value of P7,243,926, as compared with 546, with a total value of P5,174,051, registered during the preceding month of October. Of the November sales, 126, with a total value of Pl,402,826, represented deals within Manila proper, and 385, with a total value of P5,841,100, were transactions registered in the cities of Quezon and Pasay, and in the suburban towns of Caloocan, Makati, Malabon-Navotas, Mandaluyong, Paranaque, and San Juan. A few of the bigger sales registered during the month were: P. to the Cosmopol by & Tinajeros. A property with a lot of 4,448 sq.m, sold by Ceferina Lawan to the Onion Growers Manufacturing Association, Inc. for P 103,700. Sangandaan. A tract of 16,012 sq.m, sold by Tan Chiong Sun to Ramon Chuanico for P160.110. Mandaluyong Highway 54. (Int.) A parcel of 15,521 sq.m, sold by the Estate of Annie L. Roesholm to Gonzalo Puyat for P 100,000. ■p eal estate mortages registered in the Greater Manila area during the month numbered 519, with a total value of P8,450,311, as compared with 470, with a total value of P7,050,986, registered during the preceding month of October. Of the October mortgages, 208, with a total value of P4,866,300, represented deals within Manila proper, and 311, with a total value of P3,584,Oil, were mortgages registered irt Quezon City, Pasay City, and in the suburban towns of Caloocan, Makati, Malabon-Navotas, Manda luyong, Paranaque, and San Juan. REAL ESTATE SALES, 1954 Manila Quezon City Pasay City Suburban Towns Total January.... . P4,757,076 Pl,306,427 P505.410 Pl,676,512 P8,245,425 February.... . 2,444,703 2,295,413 330,245 1,859,162 6,929,523 March........... . 2,811,805 2,501,229 162,167 2,239,095 7,714,296 April............. . 4,692,440 1,381,842 169,520 976,526 7,170,328 May.............. . 2,412,941 1,587,327 246,905 1,644,658 5,891,831 June.............. . 2,584,689 4,280,526 175,518 2,165,846 9,206,579 July.................. 3,383,397 1,122,490 320,251 2,000,503 6,326,641 August............. 1,948,002 1,458,729 490,560 2,383,531 6,280,822 September... 2,255,463 1,184,084 250,258 2,215,575 5,905,380 October............ 973,165 2,473,364 236,944 1,490,578 5,174,051 November. . . 1,402,826 1,610,611 802,262 3,428,227 7,243,926 REAL ESTATE MORTGAGES, 1954 January..........P6,243,766 Pl,308,920 P517,867P3,629,703 Pl 1,700,256 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 October.......... 1,376,235 1,819,147 791,400 3,073,204 7,050,986 November... 4,866,300 1,638,178 226,910 1,718,923 8,450,311 Building Construction By Juan J. Carlos President, United Construction Co., Inc. DURING the month of October, the Office of the City Engineer approved building permits for construc tion work amounting to P3,142,440. For the same period in 1953, the volume of work authorized amounted to P3,659,340, in comparison with P4,040,150 in 1952 and P4,465,040 in 1951. Some of the big projects that were started during the month under review were: An office building for Caltex (Philippines), Inc. at Padre Faura, corner Dakota, Malate, on a wooden pile foundation, estimated at P700.000; Remodelling of the Ideal Theater, Rizal Avenue, owned by Roces Hermanos, Inc., costing P200.000; On Santiago Street, Paco, an apartment house, estimated at P125,000, for Benito Yu Galan; An addition to the Elks Club headquarters on Dewey Boulevard, costing P65.000. Besides the projects mentioned, several government or semi-government projects were started during the pe riod under review. The new North General Hospital, it was finally decided, is to be located within the San Lazaro Hospital compound on Rizal Avenue. This hospital will cost P2,500,000 when completed. It will contain the most modern facilities now obtainable in any part of the world. On the former site of the Sternberg Hospital, on Arroceros Street, near the Quezon Bridge, construction of the headquarters of the Boy Scouts of the Philippines was started. It will be a 4-story edifice, es timated to cost P550.000. Wooden piles for the foundation for the Government Service Insurance System office building are now being driven on the corner of Arroceros and Concepcion Streets, across from the European YMCA building. Plans for a P3,000,000 structure are being rushed to com pletion and actual construction work will begin as soon as the founda tion is completed. Prices of essential building materials remained firm *and steady during the period under review. Mean while, the Marcelo Steel Corporation is advocating the complete banning of the importation of commercial steel reinforcing bars which, it claims, are now being produced in sufficient quantities to meet the requirements of the local market. Port of Manila By W. S. Hurst Executive Officer, Luzon Brokerage Company TO those importers who have merchandise in bonded warehouses or who are planning the storage of mer chandise in such warehouses, the following regula tions, though not new, governing the period of storage in bonded warehouses, the extension of such a period, and 466 the withdrawal of bonded merchandise, etc., will be of interest. It is Customs Administrative Order No. 112, which revoked Orders No. 184 and 203: Customs Administrative Order No. 112 «Ry authority of Section 551 and pursuant to Section 1311 of the Re vised Administrative Code, the following regulations are hereby prescribed for the information and guidance of all concerned: “PARAGRAPH I. Under the provisions of section 1311 of the Revised Administrative Code of 1917, merchandise duly entered for warehousing may remain in bonded warehouses for a period of two (2) years from the date of arrival of the importing vessel. Warehousing bonds may, in the discretion of the Commissioner of Customs, be re newed or extended for not more than one (1) year upon application filed through the Collector of Customs concerned at least fifteen (15) days before the expiration of the two-year period. “PAR. II. Cigarettes, leaf tobacco, canned goods, medicine, beer, wine, and other merchandise not of perishable nature which, from depreciation, damage, leakage, or other causes are likely to be come insufficient to pay the duties, taxes, and other charges if permitted to remain in bonded warehouses for the usual period of two years, may be allowed to remain therein for such shorter periods only as in the opinion of the Collector of Customs or his authorized representative will safeguard the revenue. “PAR. III. Merchandise remaining in a bonded warehouse be yond three years or beyond the period of the warehousing bond, shall be sold at public auction in the manner provided by law; Provided, however, that the owners or persons entitled to the possession of said merchandise may, at any time prior to the sale, withdraw- the same for consumption only upon payment of duties, taxes, and other charges due thereon. “PAR. IV. Customs Administrative Order No. 184 and 203 (old series) and all orders inconsistent herewith are hereby revoked. “PAR. V. Customs Officers shall give due publicity to the terms of this order.” Arrastre Service, Manila (Port Terminal Service) By Francisco Delgado General Manager, Delgado Brothers, Inc. A TOTAL of 101,091.404 tons of cargo was handled over the piers during the (month of November, 1954, significantly low due to the increased cargo tonnage discharged at’ shipside. Receiving and delivery operations are going on smoothly, helped to a great extent by the recent installation of an “intercom” system operated from a central station which greatly facilitates communica tion between sheds, piers, and trucks outside the Pier Zone. With the approach, of the Christmas holidays and the expected arrival of heavy tonnage, Manila Port au thorities are on the alert and facilities are geared to cope with possible pier congestions. In this connection, Port authorities are much concerned about the storage of ap proximately 10,000 tons of steel bars at Pier 9. Delivery of the steel bars has been held up upon representations of local steel manufacturers who seek protection under the Anti-Dumping Law. Arrangements are presently being made with Customs authorities for the provisional transfer and storage of these steel bars to an empty site in front of Pier 11. Incoming passengers can expect more courteous at tention and additional facilities in the Port. In consonance with the expressed desire of President Magsaysay for better reception of passengers disembarking at the Port of Manila, the Arrastre Operators have volunteered to provide benches and chairs, blowers, electric fans, soft drink vending machines, and a public telephone pay-booth in the Baggage Room of Pier 9 for the greater comfort and convenience of disembarking passengers. Since 1951, the Manila Port Operators have taken a keen interest in the beautification of the Port premises to create a good “lasting impression” on tourists. To this end, coconut palm trees have been planted in landscaped areas, the space between the Terminal and Customs Build ing has been cleared and levelled, flag poles have been erected before each pier and, lately, Gate I (main en trance to the Customs Zone) has been remodelled and made more attractive with a well-arranged display of varied shipping company flags atop the Gate. TONNAGE HANDLED IN THE PORT OF MANILA Month January, 1954............................ February...................................... March............................................ April.............................................. May............................................... June............................................... July................................................ August.......................................... September.................................... October......................................... November.................................... Dockside Shipside Bulk 103,878 23,192.18 44,402 82,853 26,547.24 41,105 100,161 17,124.15 101,596 110,764 26,425.19 86,971 115,203 33,824.17 97,825 105,589 18,578.15 69,818 79,671 28,374.26 96,407 81,199 21,621.17 69,418 99,744 28,828.01 69,417 119,000 31,095.00 51,189 101,091 47,554.00 48,522 Ocean Shipping and Exports By E. H. Bosch Secretary-Manager Associated Steamship Lines TOTAL exports during the month of October this year showed a decrease of 5,247 tons over exports during October last year; 149 vessels lifted 449,419 tons of exports during the month, as compared with 454,666 tons lifted by 147 vessels during the same month last year. Exports during October, 1954, as compared with exports during October, 1953, were as follows: Commodity 1954 1953 Beer.................................................... 246 tons 123 tons Fiber, buntal................................... 19 — Cigars and cigarettes.................... 25 11 ” Coconut, desiccated...................... 5,259 4,384 ” Coconut oil...................................... 5,565 6,346 ” Concentrates containing copper, gold, silver, lead, and zinc.... 511 744 ” Concentrates, copper................. 6,474 9,685 ” Copra................................................ 83,607 72,220 ” Copra cake and meal.................... 6,675 6,613 ” Embroideries................................... 382 286 ” Empty drums................................. 90 149 ” Fish, salted...................................... 16 10 ” Furniture, rattan........................... 802 589 “ Glycerine.......................................... 299 — Gums, copal.................................... 140 66 ” Hemp................................................ 69,291 bales 62,021 bales Hemp rugs....................................... 186 tons — Household goods and personal effects ............................................ 378 280 tons Logs................................................... 60,403,431 bd.ft. 53,433,068 bd.ft. Lumber............................................. 5,645,594 5,618,873 " Molasses........................................... 23,881 tons 11,024 tons Nuts, peanuts................................. 45 — Ores, chrome................................... 5,768 65,107 ” Ores, iron.......................................... 131,060 99,050 ” Plywood and plywood products.. 278 18 ” Rattan, round (palasan)............. 152 143 ” Rope.................................................. 383 341 ” Shell, shell waste........................... 100 35 ” Shell, buttons.................................. 12 — Skins, hides, cuttings.................... 27 129 ” Sugar, cent./raw............................ 27,520 38,500 ” Sugar, refined.................................. 449 897 ” Sugar, muscovado......................... 226 Tobacco leaf............................... 59 719 ” Vegetable oil................................... 45 22 ” Veneer................................................ 192 70 ” Transit cargo.................................. 1,288 — Merchandise, general.................... 994 203 ” Freight Car Loadings By Jose B. Libunao Traffic Manager, Manila Railroad Company LOADINGS of revenue freight during the month of October, 1954, totaled 2,357 cars. This was a de crease of 124 cars, or 5% less than the loadings 467 during October, 1953, of 2,481 cars. The decreases oc curred mostly in the second and fifth districts of 171 and 172 cars respectively because of the earlier sugar-cane mil ling season and the decreased number of lumber mills in operation. Revenue freight carloading by class follow: October—Tonnage Group Commodities 1954 1953 Products of agriculture...................................... 7,714 9,643 Animal products................................................... 180 692 Products of mines.............................................. 835 1,097 Products of forests.............................................. 8,160 15,627 Products of manufactures................................. 27,269 22,571 Merchandise less than by carload.................. 7,391 4,559 Total............................................................... 51,549 54,189 In this review, 45 items were treated, with 12 items registering increases by 13,299 tons while 33 items regis tered decreases by 15,940 tons, or a net decrease of 2,641 tons. The principal items which registered increases were: cement, 7,401 tons; merchandise less than by carload, 2,832 tons; fertilizer, 1,196 tons; centrifugal sugar, 645 tons; and coal and coke, 430 tons, or an aggregate increase of 12,504 tons. On the other hand, the principal items which suffered decreases were: lumber, 4,865 tons; ga soline, 1,735 tons; wood fuel, 1,581 tons; rice, 1,052 tons; fuel oil, 992 tons; other manufactures, 908 tons; desic cated coconut, 619 tons; logs, 586 tons; stone, sand, and gravel, 536 tons; and almaciga, 464 tons, or an aggregate decrease of 13,339 tons. The output of the Cebu Portland Cement Company’s Bacnotan plant provides the railroad a continuous ship ment of cement to Manila and other rail points. The in creased import of general merchandise during October ac counted for the favorable showing of this item. The grow ing increase in the use of fertilizer has been responsible for the increased tonnage shown for this item. The in creased production of sugar cane and previously delayed shipments contributed to the favorable sugar tonnage. The decreased tonnage in many items was indicative of the generally poor business conditions. Lumber and log exports have decreased considerably, especially from the Luzon area. A number of airplane accidents which caused groundings for a short time may have been re sponsible for decreased carloadings of gasoline. This was also due in part to direct shipment of gasoline by road lories by the CALTEX plant from Bauan, Batangas, to San Pablo, Calamba, and Lucena. More wood fuel was moved by barges because of the more favorable rates by water. Decreased production of rice as well as the absence of rice imports during October caused the decline in the rice tonnage. Fuel oil used in sugar centrals was absent this October, 1954, as the sugar-cane milling had not yet started. Poor prices and lower production of desiccated coconut during the month was responsible for the decreas ed tonnage on this item. Fewer public work projects and dull activity in construction caused declines in stone, gravel, and sand carloadings. The business for October this year was poor due to many unfavorable factors. These included the scares due to troubles in Asia and Europe. The export trade of the country was worse than last year. The Retail Nationaliza tion Act has caused a contraction of credit as the alien retailers who used to give credit even with no security have suddenly stopped this. In many remote barrios and towns, money has been very scarce. Jobs are difficult to find as funds for public work projects were not yet released in sufficient amounts. There has been continued decline in prices of basic money commodities, such as copra, co conut oil, hemp, sugar, lumber, and even rice. The following month of November may still not show any favorable trends. Mining By Henry A. Brimo Presiden t Philippine Gold Producers Association, Inc. DEVELOPMENTS over the past month in mining, generally, and gold mines, particularly, may be re ported as follows: 1. A uranium discovery at the Philippine Iron Mines property at Larap, Camarines Norte, the first such dis covery in the Philippines. Extent and average grade of the ore body, however, will not be known until the site is further explored and developed. 2. A small decline in the local gold price. The fol lowing statistics show the price movement for the current year: January............................................. P102.31) February........................................... 103.09) March................................................ 104.89) April................................................... 103.50) May................................................... 106.52) average bullion June.................................................... 109.33) July..................................................... 109.63) August............................................... 110.12) September.......................................... 110.33) October............ ............................. 110.30) per ounce. November opening sale........................................ November low for the month............................ November last sale................................................ P110.00 108.20 109.20 More important than the actual decline in price is the fact that the market tended at times to be very ner vous. On such occasions, buyers were on the sidelines re fusing to bid. Any expansion of these occasions would naturally make the Government Subsidy an immediate and absolute necessity. 3. The Gold Subsidy: Despite entreaties from the gold producers, rules and regulations to cover its imple mentation still have not been finalized, nor has a budget been signed. However, Secretary of Agriculture and Na tural Resources Salvador Araneta, in his capacity as Chair man of the Gold Subsidy Board, has assured gold pro ducers that in case of necessity, preliminary sales may be made to the Central Bank at the subsidy price even be fore the rules are issued or the individual studies now being made of each gold mining company, have been com pleted. 4. Operations among gold producers were generally normal excepting those of the Surigao Consolidated Min ing Company and the Baguio Gold Mining Company. The former ceased operations on its best ore-body for some 5 weeks (October 15 to November 21) and bulkheaded the area to shut off oxygen and thus prevent a possible second underground conflagration. Rising temperatures had been detected and the step taken was, therefore, pu rely a preventive and temporary one, but it marked the second shut-down in the operation of this mine this year. As of November 22, this section of the mine was again in operation and there are hopes that a third shut-down can be avoided as remedial measures of a more permanent nature are being effected. • The Baguio Gold Mining Com pany, on the other hand, experienced its first major opera tional accident when its huge coarse-ore bin collapsed due to a sudden underground compression. The compression was not unexpected but recent rains as well as typhoon “Ruby” delayed measures designed to correct the situa tion. Work was about to begin when the compression occurred, causing the beams supporting the ore bin to buckle. The mine, as a result, was unable to deliver ore to the mill for some 65 hours while an emergency delivery system was constructed. 5. Paracale Gumaus Consolidated Mining Company will resume producing gold after a lapse of 14 years when it turns over its partially rebuilt milling plant on a 50ton-per-day basis early next month. 468 6. Atlas Consolidated, among the base metal pro ducers, is expected to make news around mid-January, 1955, when it begins operation at half-capacity. Full capacity of 4,000 tons daily may be reached by mid-March. Lumber By Pacifico db Ocampo Secretary- Treasurer Philippine Lumber Producers' Association, Inc. DURING the month under review, October, 1954, the Philippines exported 51,799,181 bd. ft. of logs and lumber, 2,173,083 bd. ft. less than the preced ing month. The decreased was due to a drop in the ship ments of logs to Japan, from 43,856,467 bd. ft. in Sept ember to 40,288,065 bd. ft. in October, or a decrease of 3,568,402 bd. ft. Exports to the United States and Ca nada decreased by 756,701 bd. ft., from 6,278,180 bd. ft. in September to 5,521,479 bd. ft. in October. Exports to all other countries increased by 2,152,020 bd. ft., from 3,837,617 bd. ft. in September to 5,989,637 bd.ft. in Octo ber, 1954. The following are the figures for the logs and lumber in bd. ft. inspected for export during October, 1954 as released by the Bureau of Forestry: Martha Lumber Mill Enterprises.................................. Marciana Lasam & Co., Inc.. . . Misamis Lumber Co., Inc........... Nasipit Lumber Co., Inc......................................... North Camarines Lumber Co., Inc.................................................. North Zambales Lumber Co.. . . Pacifico Ledesma........................... Ralph W. Dempsey...................... Redwood Company..................................... Sanchez Logging Co...................... Sta. Clara Lumber Co., Inc......................................... Standard Sawmill Co.................... Taggat Sawmill Co., Inc................................................ Valderrama Lumber Mftrs. Co., Inc.................................................. Valeriano C. Bueno............................................ Vic Corporation............................. Vulcan Lumber Co., Inc.............. Western Mindanao Lumber Co., Inc......................................... Woodworks, Incorpo rated .......................................... U. S. A. Japan Japan Japan U. S. A. Japan 198,677 175,667 1,487,000 250,135 718,872 500,000 7,520,000 Japan 749,997 Japan 450,781 Japan 190,000 U. S. A. 113,713 U. S. A. 21,954 Japan 4,997 666,971 Japan 1,674,126 U. S. A. 299,981 Japan 692,116 Japan 1,399,977 U. S. A. 60,821 Hawaii 139,780 U. S. A. 255,304 U. S. A. 300,055 Japan 299,263 Japan 425,092 U. S. A. 10,338 Korea 1,174,755 Japan 1,750,342 U. S. A. 148,855 Aftica 91,115 Hongkong 136,318 Volume in Board Feet Shipper Destination Lumber Logs Aguinaldo Development U. S. A. 299,920 Corp............................................... Japan 826,314 Anacleto O. Ranescs...................... Japan 894,096 Anakan Lumber Co....................... Japan 2,250,000 Aras-Asan Timber Co., Inc......... Japan 345,000 Associated Lumber Co.................. U. S. A. 30,015 Atlantic Gulf & Pacific Co.......... Singapore 45,142 Basilan U. S. A. 905,617 367,047 Lum Hawaii 39,522 ber Hongkong 160,030 Company.......................... Japan 500,000 Bislig Bay Lumber Co., Inc....... Japan 5,832,115 Calapan Lumber Co., Inc............ Japan 297,896 Cantilan Lumber Co..................... Japan 748,596 Cipriano Luna Lumber Enter * prises............................................. Japan 1,468,408 Constantino Villanueva............... Hongkong 17,000 Davao Stevedore Terminal Co................................................... Japan 649,835 Dee Cho Lumber Co..................... U. S. A. 102,000 Dee C. Chuan & Sons, Inc.......... Korea 1,446,546 Extensive Enterprises Corp........ Japan 1,388,210 Findlay Millar U. S. A. 141,381 Timber Okinawa 500,000 Company................................. Japan 1,750,342 F. E. Zuellig, Inc............................ U. S. A. 256,838 General U. S. A. 200,508 Enterprises, Formosa 1,214,773 Inc.............................................. Japan 600,207 General Lumber Co....................... Japan 400,217 G. S. Manalac Enterprises......... Japan 191,199 Hercules Lumber Co., Inc.......... Japan 1,150,567 Insular U. S. A. 1,099,816 Africa 884,944 Lumber Belgium 26,505 Norway 1,191 Company................................. Eire 55,143 Jebenaur 8b Co., Inc.................. Japan 1,537,189 Johnston Lumber Co.................... U. S. A. 32,972 Jorge J. Tirador Lumber............. Japan 210,000 Lanao Timber Co........................... Japan 486,479 Lee Chao.......................................... Japan 481,728 L. A. Johnson. . . .'........................ Hawaii 56,873 5,491,719 46,307,462 Totals................................................... Resume of Exports to: Japan.......................................... United States and Canada. . Other countries........................ Lumber (Bd.Ft.) 4,997 3,378,301 2,108,421 Logs (Bd.Ft.) 40,283,068 2,143,178 3,881,216 Total (Bd.Ft.) 40,288,065 5,521,479 5,989,637 Totals................................... 5,491,719 46,307,462 51,799,181 SUMMARY OF EXPORTS DURING OCTOBER, 1954, ARRANG ED BY COUNTRIES OF DESTINATION IN THE ORDER OF VOLUME OF SHIPMENT TO EACH COUNTRY Countries of Destination Japan............................................ United States............................... Korea............................................ Formosa........................................ Africa............................................ Okinawa....................................... Hongkong..................................... Hawaii.......................................... Eire................................................ Singapore..................................... Belgium........................................ Norway......................................... Totals................................... Trend of Exports to: This Month Lumber (Bd.Ft.'l Japan.............. 4,997 United States and Canada. 3,378,301 Other countries 2,108,421 Logs (Bd.Ft.) Lumber (Bd.Ft.) 4,997 3,378,301 976,059 500,000 313,348 236,175 55,143 26,505 1,191 Logs (Bd.Ft.) 40,283,068 2,143,178 2,621,301 1,214,773 45,142 Total (Bd.Ft.) 40,288,065 5,521,479 2,621,301 1,214,773 976,059 500,000 313,348 236,175 55,143 45,142 26,505 1,191 5,491,719 46,307,462 51,799,181 Month Ago 40,283,068 Year Lumber (Bd.Ft.) Ago Logs (Bd.Ft.) 53,592,736 2,143,178 3,881,216 3,910,352 2,367,828 1,418,131 2,419,486 3,906,938 2,462,001 1,489,564 1,058,077 Total... 5,491,719 46,307,462 5,328.483 48,643,781 5,396,502 57,112,814 Arrivals of logs and lumber in Manila during the month under review, October, 1954, aggregated 12,371,835 bd. ft., an increase of 2,902,597 bd. ft., as compared to arrivals during the previous month of 9,469,238 bd. ft. The local wholesale lumber market slightly improved during the month under review, November, 1954, as comCOMPARATIVE STATEMENT OF EXPORTS MADE TO DIFFERENT REGIONS OF THE UNITED STATES DURING THE MONTHS OF SEPTEMBER AND OCTOBER. 1954 Period Lumber in Board Feet Logs in Board Feet Grand Total Western States Eastern States Gulf Sta tes All Others Total Western States Eastern States Gulf Sta tes All Others Total September, 1954................... 1,963,012 896,353 400,988 500,000 3,760,353 691,734 823,675 200,000 652,419 2,367,828 6,128,181 October, 1954....................... 2,344,693 746,505 153,396 133,707 3,378,301 657,434 — 1,185,689 300,055 2,143,178 5,521,479 Difference (Increase-!-; Decrease—) .... 381,681+ 149,848— 247,592— 366,293—• 382,052— 34,300— 823,675— 985,689+ 352,364— 224,650— 606,702— 469 470 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 pared with that of the previous month—P125-P135 to P130-P140 for apitong and from P145-P155 to P150P165 for red lauan. White lauan remained firm at F135P130 per 1,000 bd. ft. Sugar By J. H. d’Authreau Philippine Sugar Association THIS report covers the period from November 1 to November 30, 1954. flew York Market. The suspected shortage of suitable in-quota sugars for East Coast December arrival, subject of end-October speculation, became more apparent in the early days of November as the San Juan port strike continued. Keen buying by refiners of suitable parcels developed, and December arrivals were done at 6.25/, duty paid basis, steadily from November 9 to .15. At the close of business on November 15, the U. S. De partment of Agriculture, however, announced a 1954 quota increase of 50,000 tons, presumably to ease the end-year situation. The significant thing, however, was that like similar action in the past, it was done with the. market price established at 6.25/. The market reacted violently and in two days 1954 values dropped 25 points with 1955 exchange positions also declining in sympathy, although of course to a less marked degree as the premium attached to 1954 sugars only. The Department of Agriculture action, however, was also thought to indicate possibility of a high initial 1955 domestic quota or, more generally, that while 5.75/ was too low (in line with Undersecretary Morse’s announcement), 6.25/ was too high. On November 18 the Department of Agriculture rescinded its 50,000 ton quota increase without explanation; confusion immediately en sued as the additional quota had already been sold chiefly by Cuba. Spot rose again to 6.15/ duty paid basis. After the close on November 30, the Department of Agriculture again adjusted matters by restoring the original 50,000 ton increase. It is thought that refiners’ needs for Decem ber are now taken care of and that the December, 1954, spot price maybe difficult to establish due to lack of signi ficant business throughout the coming month. Outstand ing quota balances as of November 25 were: Hawaii, 87,315 short tons, Puerto Rico, 78,281 short tons. It is thus seen that the controversial increase was made at the expense of Puerto Rico and Hawaii which, it was judged by the Department, could not bring their produce to mar ket in time. These market developments quite overshadowed the quota hearings held on November 9, and the usual specu lation following the hearings as to what the initial “new” quota might be, has been lacking. The 1955 quota an nouncement, it is expected, will be made in early Decem ber and the 1955 futures market holds itself in cautious abeyance. Reported sales of actuals totalled approximately 126,101 long tons, of which 13,000 long tons were Philip pines. Exchange operations for the period approximated 47,750 short tons. Deliveries of refined for the period October 23 to November 20 were 598,506 short tons as compared with 569,505 for October and with 542,263 for November, 1953. Total deliveries for the year to Novem ber 27 were 7,479,000 short tons as compared with 7,645,000 short tons on the same date in 1953. On November 20 refiners’ stocks were 198,831 long tons as against 184,514 long tons on the same date last year. Opening and closing quotations on the No. 6 Contract were as follows: March May July Sept. Nov. November 1.................... 5.43jt 5.48£ 5.58p 5.630 5.630 30.................... 5.45 5.51 5.60 5 65 5.64 •4? Wishing gou Merr^ Ckriitmaf anti c4 Jfappy. J^leui tyear MODERN, COMPLETE . . . INTEGRATED FACILITIES “KNOW-HOW' BACKED BY EXPERIENCE SINCE 1905 DESIGN, FABRICATION, ERECTION AND CONSTRUCTION of Steel Bridges and Buildings; Light, Medium and Heavy Penstocks, Tanks, Bins, Mine Structures; Industrial Equipment; -------------Concrete Structures, Foundations, Piling, Wharves, Piers, Tunnels, Marine 1 Works, etc. 1 MECHANICAL FACILITIES—Machine Shops for Construction and Repair Jobs; Structural Steel Fabricating Shop; Foundry for Cast Iron, Brass and Bronze; , Marine Repair Shops, Welding Shop. i WOOD PRESERVING PLANT—Pressure Creosoting of Structural Timber, Poles, 1 Piles, X'Arms, Posts. “Wolmanized” Pressure-Treatment of Lumber and Wood products. • MERCHANDISE SALES DIVISION—Representing over 37 major U.S. Manufac- . turers of Industrial, Agricultural and Marine Equipment—including Air Conditioning, Refrigeration and Ventilation; Power 1 ’ • ’ - - ------Irrigation, Sewage, Drainage, and Flood Machinery, etc. Structures; Reinforced Control and Light Plants; Systems; Industrial ATLANTIC, GULF ENGINEERS ★ CONTRACTORS ★ MANUFACTURERS * Executive Offices—Engineering Div. Merchandise Sales Division Structural & Machine Shops n , , „ D1, n , . Barrio Punta, Santa Ana, Manila Robert Dollar BId* * Port Area Phones: 6-75-31 * 6-75-32 * 6-75-33 Phone: 3-36-61 (Al) Depts.) & PACIFIC COMPANY OF MANILA DISTRIBUTORS December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 471 Average spot price for November was 5.654211/. Average spot price January 1 to November 30 was 5.601630/. Local Market, (a) Domestic Sugar. The Single Sel ling Agency has eventually taken the form of a top-level “Advisory Committee” comprising members from both groups of the industry. The determination of the industry to take whatever action is necessary to support economic prices has kept the market steady and there are reports of private large-scale transactions in old-crop domestic at around P12 per picul. Little new-crop sugar is coming onto the market, as regular planters for the most part are applying for export quedans. Small sales by Negros emergency planters are reported on the basis of P10.50/ Pl 1.00 ex-Negros warehouse and Manila quotations for ex-warehouse Manila are announced by the Bureau of Commerce as follows: DOMESTIC Exporf 97° 98° 99° Nov. 3—Victorias P14.40 Guagua 14 OOn P11.00-P11.50 P14.00-P14.50n P15.30-P16.00 1C—Victorias 14.60 Guagua — P11.00-P11.50 P14.00-P14.50n P15.30-P16.00 17—Victorias 14 50 Guagua — P11.00-P11.50 P14.00-P14.50n P15.30-P16.00 24—Victorias 14.40 Guagua — P11.00-P11.50 P14.00-P14.50 P15.30-P16.00 n—nominal (b) Export Sugar. Unaffected by the disturbance of the 1954 New York spot market, the Philippine “new crop” market awaits the higher prices expected after the quota announcement. The slightly improved tone of 1955 futures noted during the last week of November caused no impression locally, as it was off-set by firmer freights for both December and January. December freights were steady at $11 and January quoted at $12. No January bookings at this price have yet been reported. Current export quotations have remained unchanged therefore at P 14.40/50 ex Negros warehouse with the market quite inactive. Export shipments for the month are estimated at 35,213 long tons, making a total of 40,213 long tons against the 1954-55 crop. Total Philippine arrivals in the United States for the period January 1 to November 20 are reported at 826,677 long tons as against 754,918 long tons for the same period in 1953. World Market. Opening and closing quotations were as follows: Spot January March May July September Nov. 1............. 3.25 ft 3.22 ft 3 19 ft 3.20^ 3.22^ 3.23f 30............. 3.25 3.19 3.19 3.21 3.22 3.22 The November 24 meeting of the International Sugar Council set the Philippines 1955 world quota at 22,500 metric tons, being the basic 25,000 tons less the permis sible statutory 10% reduction. Shipments to Japan in November against the 1954 quota totalled 14,883 tons, leaving a balance of 7,859 to be moved in December. The old-crop world market is essentially unchanged from last month with spot maintained at 3.25/. January shipment Cubas are reported available at 3.20/. Cuban sales to world market to October 31, accord ing to unofficial sources totalled 1,587,920 English long tons (=1,565,800 Spanish long tons) as against 2,186,284 English long tons (=2,155,828 Spanish long tons) to October 31, 1953. 1953- 54 Milling. All the 25 Centrals have finished for the 1953-54 crop, with a total final production of 1,434,281 short tons, against total quotas of 1,287,255 short tons, comprising 952,000 short tons for the United States, 310,455 short tons for the domestic market, and 24,800 short tons for the world market. 1954- 55 Milling. Eleven Centrals are now milling for the 1954-55 crop. Latest reports from these Centrals show that their total production to date is 122,070 short tons and that the average of juice purities to date is 84.46. INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS MEMBER — PHILIPPINE LUMBER PRODUCERS’ ASSOCIATION, INC. ------ *------SPECIALISTS IN KILN-DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Philippine Lumber Manufacturing Norton & Harrison Company Company Insular Saw Mill, Inc. 814 Echague 14-30 Soler St. 340 Canonigo, Paco Manila Manila Manila MANILA OFFICE: 603 FILIPINAS BUILDING 472 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 Copra and Coconut Oil By William S. Rice, Jr. Copra Buyer, Philippine Manufacturing Company THE market eased off during the first part of November and then continued at the reduced level, dull and about unchanged, the rest of the month. Depressing factors were numerous. There was a good volume of coconut oil unsold ana afloat to the Atlantic Coast. United States West Coast mills produced more oil than the market could absorb. Philippine copra exporters unable to obtain shipping space for Europe, were forced to make shipments into the American market even at prices well below Europe. European buyers neglected Philip pine copra at various times in favor of whale oil, palm kernel oil, and Singapore copra. The only significant coun tering factor was a definite decline in production. Shipping space for Europe has been acutely short, and freight rates advanced sharply from 140 shillings to 170 shillings per ton. At month-end there was even talk of a possible 180-shilling rate. Naturally, these rate increases cut into the advantages of higher European prices. Copra Cake and Meal Prices. European buyers who entered the market in October remained active, and prices advanced steadily. American buyers remained un competitive, and therefore virtually all sales for Decem ber and future shipments were made to Europe. At monthend, American buyers began to show indication of be coming more competitive. Business for Europe was closed as high as $58 per gross long ton f.o.b. Manila. Copra Statistics Philippine Copra and Coconut Oil Exports (In long tons) Copra Exports September October November United States...................... 24,304 24,883 23,397 Europe................................. 40,534 35,581 41,494 Other countries.......................... 8,350 23,143 1,515 Total................................. 73,J88 83,607 66,406 Coconut Oil Exports United States...................... 7,663 5,065 5,799 Other countries.................. — 500 243 Total................................. 7,663 5,565 6,042 Copra and Coconut Oil Prices Copra: Wigh West Coast, c.i.f. per short ton, nearby........................................... Europe, c.i.f. per long ton, 45-60 days................................... Manila, fresh, resecada basis, per 100 kilos at bodega, 30 days............................................... January............ February.......... March............... Coconut Oil: West Coast, c.i.f. per lb., 45-60 days................................................ East Coast,c.i.f. per lb., afloat.. . September........ October............ S172.50 S162.00 3164.00 197.50 188.00 192.00 P 31.75 P 29.00 P 29.50 12- 5, 80 13- 1/40 11- 7/80 12- 1, 40 12f 12-1/20 November February........ March............. Low Close Manila and Cebu Copra Arrivals (In metric tons) *1953 12,682 13,029 17,991 13,880 10,164 14,462 18 182 20,413 19,779 19,123 15,709 Cebu 1954 15,490 14,218 14,170 13,926 19,307 19,464 23,889 26,845 21,510 24.971 18,502 Manila & Cebu Percentage ion roc. toej 1954/53 135/'' 124 98 111 174 132 130 130 104 115 113 4% Totals......... 161,275 129,448 212,292 175,414 373,567 304,362 122.7% Philippine and Indonesian Copra Exports (In metric tons) Copra Exports * 1953 1954/53 41,025 131.6% 38,672 152.3% 50,168 121.4% Indonesian 1954 20,653 25,368 23,209 Copra Exports * 1953 “ 14,230 18,884 19,559 1954/53 145.1% 134.3% 118.7% ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office 174 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ Operating: s MACHINE SHOPS • STEEL PLATE SHOPS | STRUCTURAL STEEL SHOPS • WELDING | SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY I Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68 December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 473 July- ............ September... . October.......... November 55,951 65,249 75,978 82,513 93,093 86,717 93,920 77,212 48,745 36,536 48,144 64,359 71,010 75,804 83,610 73,510 Total........... 804,423 631,583 127.4% • Includes coconut oil exports **1954 figures revised. 20,546 17,258 119.1% 36,146 5,854 617.5% 21,465 17,266 124.3% 29,586 34,209 26,140 130.9% Production and Future Piospects. Production declined noticeably in November, as evidenced by lower arrivals at principal export points. Nevertheless, supplies for immediate delivery continue adequate. Most coconut oil mills in the Philippines will shutdown during the Christ mas holiday season, which will relax local demand during that period. Shipping to Europe is not expected to im prove for nearby shipment. We do not expect much change in prices for December. Desiccated Coconut By Howard R. Hick Peter Paul Philippine CorporationTHIS report covers the period October 15 to Novem ber 15, 1954. During this time copra prices remained quite stable and the domestic market remained level, continuing one of the longest post-war plateaus in the local copra market. Lowered demand for the past 6 months was due mainly to the plentiful supply of competitive oils, particularly in the European market. This, with large copra production in the Philippines, has tended to give the local market a continued tendency toward weakness. Desiccated coconut operators have been able to stay slightly below the copra equivalent in the nut prices and their production continues at a pace that will bring the production for 1954 up to normal despite the very low first-quarter production. The following are the shipping statistics for the month of October: Shippers Pounds Franklin Baker Company................................................... 4,319,900 Blue Bar Coconut Company.............................................. 797,420 Peter Paul Philippine Corp................................................ 1,475,000 Red V Coconut Products, Ltd.......................................... 3,174,200 Sun Ripe Coconut Products, Inc...................................... 393,500 Cooperative Coconut Products, Inc................................ 54,200 10,214,220 lbs. Manila Hemp By Frank P. Hill Vice-President and General Manager Macleod and Company of Philippines HEMP prices were firmer during November, chiefly as a result of low production. At tl e close of the month prices were 1/4 to 3/4 cents per pound higher than opening prices for grades which were in relatively good supply, and the increase for grades in short supply was somewhat greater. Davao producers and dealers held supplies off the market until late in the month, after which a selling wave set in. It was believed at month’s end that large offerings in London, New York, and Japan in early December would inevitably drive prices down again. The sisal market was steady during the month. It is becoming increasingly apparent that disease in Davao and low prices generally are adversely affeccing production. 474 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 The usual statistics are given hereunder: BALINGS—JANUARY, OCTOBER INCLUSIVE 1954 1953 1952 1951 1950 Davao ................................. 378,264 420,739 430,270 418,688 313,883 AlbayCamarines' Sorsogon................................ 102,073 147,777 132,249 212,975 147,638 Leyte, Samar...................... 106,677 94,010 95,060 143,051 104,459 All others............................... 68,994 79,418 65,321 81,352 64,614 Total............................ 656,008 741,944 722,900 856,066 630,594 United States and Ca nada .................................. Continent of Europe... . United Kingdom............... Japan.................................... South Africa....................... China.................................... India..................................... Korea.................................... Australia and New Zea land................................... 6,264 Others................................... 7,917 161,112 151,477 91,663 182,060 9,797 3,022 6,649 17,842 EXPORTS—JANUARY/ OCTOBER INCLUSIVE 1954 1953 1952 1951 1950 253,361 317,706 501,375 323,319 149,586 136,335 137,119 109,074 92,456 81,421 149,826 70,124 205,517 159,267 112,206 58,245 5,550 8,950 7,010 5,035 14,150 1,495 6,289 11,767 8,600 4,440 5,282 6,730 1,580 600 — 3,100 2,200 2,015 1,900 1,826 1,295 70 — 747 Total............................ 637,803 725,040 713,899 928,147 590,482 Tobacco By Ricardo Padilla Satrustbgui Ci a. Tabacalera NATIVE Leaf Tobacco. Three young ladies—“Pa mela”, “Ruby”, and “Sally”—were most unpopu lar in the Cagayan Valley. “Pamela” started cut ting across northern Luzon, then in a very feminine way turned northeast; however, she left quite noticeable tra ces of her visit on the 5th of November in wind and water. “Ruby”, on the 8th, three days after, went through Nueva Vizcaya and caused the Cagayan River to overflow hea vily. “Sally”, on the 17th of the same month, passed north of Aparri, but her strong winds were felt all around northern Luzon. In spite of these unwelcome “visits”, the destruction of bed seedlings was not important and the damage caused was dealt with immediately by most farmers. Some bed seedlings stood the wind and the water very well because of the “tapancos”, a kind of screen, made of bamboo and cogon, which, if well held down, undoubtedly protects the small plants. Optimism continues in the Cagayan Valley and the long-awaited big crop will be welcomed by both the local factories and the foreign importers of Philippine native tobacco. Cash advances on the future crop amount to around P20 per quintal. With regard to the West Coast of Luzon (Pangasinan, La Union, and the Ilocos provinces), the transplant ing season is already in full swing and will continue all through January. Estimates of the crop in this part of the country run from 80,000 quintals and up, without counting the Batec and Virginia tobaccos. About 60 quin tals of light cigar wrappers from the municipality of Tubao have been sold at P8.00 per kilo, first class; P5.50, second class; and P4.50, third class. Virginia Leaf Tobacco. Cultivation of Virginia tobacco is being undertaken with much enthusiasm and a crop of about 60,000 quintals is the minimum expected on the West Coast of Luzon. Around San Juan, Malasiqui, Bacarra, and Agoo are the localities where Virginia tobacco seems to be doing best. Important purchases of fire-wood are taking place in anticipation of flue-curing activities. Cigar and Cigarette Factories. Marked improve ment is taking place in native and Virginia locally-made cigarettes,—in the selection of the tobacco as well as in December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 475 the packing. “Colorum” cigarettes are still a nightmare, both to the cigarette factories and the Internal Revenue Bureau; they represent a stiff competition to the former, and a big loss of revenue, amounting to several millions of pesos, to the latter, every year. Tax-revenue inspec tors seem to have great difficulty in stopping this group of tax evaders. The control of cigarette-paper has been suggested by several experts as an indirect means of cheking “colorum” manufacture. There is hope that a bill imposing heavy penalties upon the manufacturers of “co lorum” tobacco products and the retailers who sell them, may be passed in the next regular session of Congress. Such a measure would no doubt reduce the heavy loss to the Government in the sale of internal revenue stamps. The end-of-the-year holiday season’s sale of cigars is tending to be even higher than last year’s. Rice By Charles O. Houston, Jr. Director, Graduate Studies, The University of Manila THE month of November was marked principally by a continuing study of the functions of the NARIC, both within and without the Government, by a disastrous typhoon in rice-producing areas, by continued complaints about “infested” rice from Pakistan, and by the appearance in the market of the new crop from Min danao and parts of Luzon. Rice from the Visayan regions apparently did not enter the Manila market. It is strange that stocks of rice were brought from Mindanao to Ma nila, while Visayan stocks were not, and it would appear that it would have been cheaper to have supplied the Vi sayan regions from Mindanao and to have brought Vi sayan rice to Manila. Using the Manila Daily Bulletin as a base, one notes that the activities of the NARIC and the importa tion of rice have occupied the most public attention. The newspaper’s coverage (in some 35 articles) of the rice situa tion falls under five general heads: activities of Naric (with 8)j importation of rice from Pakistan and the United States (with 13), general problems of rice production (with 12), activities of local producers and millers (with 1), and the general rice situation in Asia as viewed by interna tional agencies (with 1). Only one editorial treated the rice problem. In this writer’s opinion, most articles dealing with solutions to the “rice problem” continue to be highly theo retical, dealing with probabilities rather than specifics. A case in point is the attitude with respect to the existence of a “rice” problem. That this exists is undoubted; yet it seems that more important is the “palay” problem. After the palay is harvestd and milled it enters commerce and trade and is generally disposed of quickly. Milled rice cannot be stored very long without the danger of rotting or infestation, so the major problem here is one of storage and distribution. Yet the rice market depends upon the supply of palay, and it is the writer’s opinion that plans and programs should be drawn up vis-a-vis “palay”. The Government could, for example, import palay rather than rice, thus avoiding to a large degree the danger of infested or inedible stocks. Two objections to the importation of palay will be raised: (1) added freight costs, (2) infested stock. With regard to the first, whatever added costs from freight would be entailed could be met by the 2% milling tax charged millers who would process the palay, thereby giving a direct revenue to the Government that would not be siphoned off, as at present, in middlemen’s charges, corruption, or graft. In addition, this would measureably add to the income of laborers who would work in the mills, the milling of imported stocks being done in the “off-season”. With regard to the second objec tion, upon arrival of stocks the Department of Health could oversee the fumigation of ship and cargo before unloading. 476 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 There would seem to be four major benefits to be derived from this practice: The by-products of the palay would be available to the local market instead of in the supplier’s country; it would give added employment to local labor and increase the income of local millers; there would be less chance for poor quality stocks to enter the market to the disadvantage of the consumer; and the storage problem would be simpler since palay can be stored longer and easier than milled rice. Recently, recommendations were made for the im position of certain price-ceilings on rice for the three prin cipal group varieties, and in the four districts of surplus production. The first three encompass (1) macan and allied varieties (bencer, ramay, Ilocos variety, etc.); (2) elonelon and allied varieties (consejala, 1236, raminad, Los Banos, Apostol, etc.); (3) wagwag and allied varieties (sinampablo, minantika, etc.). The second group encom passes the regions of: (1) Northern Luzon district (cost of production per cavan of palay: P9.70); (2) Central Luzon district (cost of production per cavan of palay: P9.84); (3) Panay Island district (cost of production per cavan of palay: P10.07); (4) Southern and Western Min danao district (cost of production per cavan of palay: P7.41). The general price ceilings recommended for these groups and districts are: (/) Northern Luzon Varieties Producers' Wholesalers' Retailers3 Macan, etc............... P 9.00 P 0.80 P 0.85 Elonelon, etc........... 10.75 0.95 1:00 Wagwag, etc........... 11.90 1.05 1.10 (2) Central Luzon Macan, etc.............. P 9.00 P 0.80 P 0.85 Elonelon, etc........... 10.75 0.95 1.00 Wagwag, etc........... 11.90 1.05 1.10 (3) Panay Island Macan, etc............... P 9.60 P 0.85 P 0.90 Elonelon, etc........... 11.30 1.00 1.05 Wagwag, etc........... 12.50 1.10 1.15 (4) Southern and Western Mindanao Macan, etc..................... P 7.85 P 0.70 P 0.75 Elonelon, etc.................. 9.60 0.85 0.90 Wagwag, etc.................. 10.75 0.95 1.00 1— Per cavan of palay 44 kilos. 2— Per ganta of rice, 23 gantas to a sack of 56 kilos. 3— Per ganta of rice. The government agency making this recommenda tion, has adopted, in part, this column’s recommendation (in July, 1954, p. 278-9) for the establishment of regional centers for the implementation of the above scheme (which in itself follows this column’s July recommendations). It is suggested that the nation be divided into 12 districts (Central Luzon, East Central Luzon, Ilocos, Cagayan valley, East Southern Luzon, Bi col, East Visayas, Central Visayas, East Mindanao, Central Mindanao, West Mindanao, West Visayas), in which the NARIC would establish stations for “effective procurement and milling and equitable distribution.” This column’s suggestion that the functions and activities of the ACCFA and the NARIC be merged, also forms a part of the scheme out lined above. The typhoon during November destroyed much newlyplanted rice, and coupled with the late planting in the north because of the drought this summer, a shortage of at least 2,000,000 cavans may be expected for the ensuing year. Pakistan rice and new arrivals held the market during November fairly steady; because of the numerous holidays during the month, the picture at this writing is not clear as to prices, and we indicate here only averages for the beginning, middle, and end of the month: Wag wag, 1st class: P27.00; 2nd class: P25.85; from Cotabato: P23.80; from Davao: P22.45. Elonelon, Cotabato, first class: P21.95; Cotabato, 2nd class: P21.45. Macan, new crop, 1st class: P18.75 (last two weeks); Cotabato: P21.00. THE. TALK OF THE TOWN * Acme is the only super market in the City of Manila, that has won the First Prize Awards of the Manila Department of Health for cleanliness for six consecutive years from 1949 through 1954. December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 477 Imports By S. Schmelkes Mercantile, Inc. ALL figures are in kilos with the exception of those for foodstuffs which are given in package units. Beverages, Misc., Alcoholic................. 10,582 Foodstuffs, Total Kilos......................... 33,239,527 Foodstuffs, Fresh (Total).................. 77,674 Apples.................................................... 6,699 Oranges.................................................. 5,742 Onions.................................................... 32,460 Potatoes................................................. — Foodstuffs, Dry Packaged (Total).. 14,759 Foodstuffs, Canned (Total)................. 558,852 Com modi ties: October, 1954 October, 1953 Automotive (Total)...................... .... 3,900,418 2,358,187 Automobiles................................ 147,289 175,693 Auto Parts................................... 155,287 351,303 Bicycles........................................ 20,491 22,028 Trucks.......................................... 546,064 102,494 Truck Chassis............................. 1,111,655 689,135 Truck Parts................................. .... 721,389 106,290 Building Materials (Total)......... . . . . 4,357,946 6,222,289 Board, Fibre............................... 45,131 Cement......................................... 679,297 1,677,561 Glass, Window........................... 273,085 1,028,956 Gypsum........................................ 200 18,144 Chemicals (Total)......................... 4,320,470 9,768,686 Caustic Soda............................... .... 504,641 363,475 Explosives (Total)......................... 52,533 99,835 Firearms (Total)............................ 15,732 3,513 Ammunition................................ 13,382 2,916 Hardware (Total).......................... 4,857,107 5,556,418 Household (Total)......................... .... 885,320 972,593 Machinery (Total)........................ .... 2,864,135 ’ 2,754,232 Metals (Total)................................. .... 13,157,866 11,138,960 Petroleum Products (Total).... ... 69,349(885 83,579,571 Radios (Total)................................ 22,071 40,127 Rubber Goods (Total)................. 613,108 931,972 6,282 20,479,916 76,736 7,572 7,374 18,386 6,130 23,968 282,406 COLUMBIAN ROPE COMPANY OF PHILIPPINES, INC. HEMP AND COPRA EXPORTERS STEAMSHIP AGENTS + Singer Building Port Area, Manila, P. I. ¥ BRANCHES! Davao • Tacloban • Cebu • Tabaco PMC MWHMDISIN C0RP0R1TI01I 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 478 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 NEW AND JSeauttful ------ 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 beforej its keys and controls respond to the slightest touqh. 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 &ea«on’fi <fi5reetins ** Pen CAN’T LEAK! WON’T FLOOD! Writes more than 300 words without redipping. Wide selection of precision-made Esterbrook solid Duracrome points.. Choose the right point for the way you write! "DIP-LESS” WRITING SETS by Distributors J. P. HEILBRONN CO. (Established 1909) 575 Atlanta, Port Area, Manila Tels. 3-36-17 & 3-36-18 Sardines................................................. 42,241 2,930 Milk, Evaporated.............................. 192,023 76,221 Milk, Condensed................................ 12,900 26,968 Foodstuffs, Bulk (Total)...................... 620,612 370,331 Rice....................................................... 50,010 Wheat Flour........................................ 520,158 309,991 Foodstuffs, Preserved (Total)............ 741 1,408 Bottling, Misc. (Total)......................... 440,230 543,120 69,352 Cleansing & Laundry (Total)............. 137,357 Entertainment Equipment (Total) . . 4,631 3,113 Livestock-bulbs-seeds (Total)............ 630,092 247,244 Medical (Total)....................................... 706,547 522,335 Musical (Total)....................................... 44,725 38,579 Office Equipment (Total).................... 43,291 40,257 Office Supplies (Total).......................... 11,783 29,011 Paper (Total)........................................... 789,376 7,317,711 Photographic (Total)............................ 49,890 23,161 Raw Materials (Total).......................... 1,684,074 2,549,803 Sporting Goods (Total)........................ 6,254 15,767 Stationery (Total).................................. 220,138 303,214 Tobacco (Total)...................................... 374,519 592,559 Chucheria (Total).................................. 81,206 13,687,781 Clothing Apparel (Total).................... 449.014 672,910 Cosmetics (Total)................................... 32,920 131,632 Fabrics (Total)........................................ 381,733 657,627 Jewelry (Total)....................................... 192 347 Leather (Total)....................................... 164,333 180,622 Textiles (Total)....................................... 4,994,640 3,297,922 Twine (Total).......................................... 112,026 111,249 Toys (Total)............................................ 118,297 106,427 General Merchandise (Total)............. 1,607,446 939,360 Non-Commercial Shipment (Total).. 111,246 99,845 Advertising Materials, etc. (Total).. . 29,762 20,976 Food Products By C. G. Herdman Vice-President, Marsman 8 * Company, Inc. THE principal item of interest during November was the decision of the Cabinet to implement without further delay the law enacted sometime since by the Congress providing that a certain percentage of cassava flour must be purchased with wheat flour by all wheat im porters and by local bakers. The implementation of this law is to be entrusted to PRISCO. Regulations and methods of procedure regarding this implementation have not yet been issued. It is assumed that they will be pub lished, however, early in December at the same time as the Central Bank authorizes exchange allocations for wheat flour for the coming semester. The Act as passed compels the purchase of cassava flour in a quantity not to exceed 30% of the weight of the wheat flour imported or sold locally. It is reported that PRISCO will prescribe 2% as the quantity of cassava flour to be sold with wheat flour during the coming semester. This would provide a market for approximately 300 tons of cassava flour month ly, and milling capacity in the Philippines now in ope ration or to be available within the next few weeks is am ple to supply this quantity of cassava flour. Although it appears that it was the intent of Congress that the cassava flour be blended with wheat flour in baking, this is not specifically demanded by the Act. In other words, 100% wheat-flour bread may still be made and sold, bakers utilizing the cassava flour for other purposes. Imports of wheat flour during November were of considerable volume. The market continues to be ma terially overstocked. Prices ex stock locally, due partly to the elimination in late October of the 17% exchange tax on flour, but principally to the heavy stocks held locally, decreased approximately Pl.00 per 50-lb. bag during the month. Further large quantities have been ordered for ward for arrival in December and January. We are now entering the period of heaviest consumption and it is be lieved overstocks will be reduced to normal during Jan uary. Recent importations of canned fish have been less than average. Consumption, however, has been extra December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 479 ordinarily light and local stocks of all varieties of canned fish are more than ample. Arrivals of canned meats continue in large quantities. Stocks are considerably greater than at any other period during recent years, with the result that many importers, in order to meet bank commitments, have cut prices dras tically in order to move their stocks. Canned milk arrivals continue in fair volume and ample supplies of all varieties are available. There is no apparent shortage in the market of im ported canned fruits and vegetables nor of fresh fruits, although the retail price of onions locally has recently increased about 50%. Textiles By A. Mabgollbs Acting General Manager Neuss, Hesslein Co., Inc. DESPITE the approaching Christmas festivities, the textile off-take during November has been disap pointing, and expectations of a sizeable turn-over of goods for the season’s sales are still discouraging. . Over the last few months the main handicap to regular operations has been the restriction by importers and whole salers on credit facilities. Collections are still difficult and the shortage of cash is general throughout the country. It is expected that cash will be more plentiful for Christ mas purchases, which will facilitate at least part fulfillment of outstanding obligations by retailers and wholesalers. Thus a greater feeling of confidence than exists presently, and a steadier flow of business would result. The New York market has remained steady, there being no appreciable changes in either the cotton or rayon picture. Prices in the local market have eased somewhat in all staple lines during the latter part of November, brought about by heavier arrivals and by more import licenses being available. Additional extra quotas to producers and Fili pino importers are still being issued, but there is no evidence yet of extra allocations or adjustments being authorized to old established importers, and as time goes on prospects are getting more discour aging. There is speculation in the trade over reports of pos sible changes in the personnel at the Central Bank, and whether this would affect the present method and issue of import allocations, although it is presumed no changes would take place for the first semester of 1955. An official announcement |of policy for that period would be welcomed throughout the trade. Arrivals during November were again more substan tial than the average for the year. From the United States a total of 22,631 packages arrived, of which 10,208 were cotton piece goods, 3022 rayon piece goods, 3983 cotton MOTOR SEME (0., IB AUTOMOTIVE PARTS • ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES • TIRES • TUBES 230 13th St., Port Area — Tel. 3-36-21 Enjoy KENT with the exclusive “MICRONITE” Filter! For the Greatest Health Protection Ever I A PRODUCT OF P. LORILLARD COMPANY, AMERICA’S OLDEST TOBACCO COMPANY, ESTABLISHED 1760 Caterpillar Registered 1 Trademark 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. Philippine Representatives for Pressed Steel Car Co., Inc. BOSTON 423rd Sts., PORT AREA, MANILA Tel.3-37-53 Branches: BACOLOD • ILOILO • CEBU • DAVAO • ZAMBOANGA DADIANGAS, COTABATO • CAGAYAN DE ORO CITY Dealers at: San Fernando, Pamp., Cabanatuan City, Tuguegarao, Cag. 480 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 Ra Liizorc smmiini, COMPANY, INC. Marine Construction and Repairs, Salvage Contractors, Lighters, Towboats, Waterboats, Ship-Chandlers and Provisioners. ¥ P. O. Box 582 Cable Address: Manila, Philippines “LUSTEVECO” SERVICE with ATISFACTION CUSTOMS BROKERS WAREHOUSEMEN TRUCKING PACKING & CRATING FREIGHT FORWARDING SHIP HUSBANDING CARGO SUPERINTENDENCE ' AIR CARGO AGENTS TRAVEL AGENTS FIELD WAREHOUSING IM BROKERAGE COMPANY Derham Bldg. Cables: Telephone: Port Area LUBROCOIN 3-34-31 pound goods, 2475 rayon pound goods, and 2943 yams. From other sources, the total was 5842 packages, of which 3751 came from Japan, 757 from Hongkong, 484 from Europe, and 850 from India. Legislation, Executive Orders, and Court Decisions By Ewald E. Selph Ross, Selph, Carrascoso & Janda AMONG the recent decisions of our courts are the fol lowing items which may be of interest to business men: In the case of Franklin Baker Company of the Philip pines vs. Kapisanan Manggagawang Pinagyakap, Inde pendent, (Civil Case No. 23984, 22 November 1954), the Court of First Instance of Manila said: “The purpose of the law in granting maternity protection is to give due protection to a woman who by nature of her physical condi tion for giving birth to a child, is not in a position to work without risking her life or endangering her health. The legislature, in making this provision, has for its purpose or object the protection of women irrespective of whether they become mothers lawfully or unlawfully. To consider that this protection is limited only to women who are legally married will be to deprive women of the protection which is intended for them by the legislature, by reason of their natural phy sical condition. At the same time it would raise the question of legal ity of the birth of the child which under the law is presumed to be legitimate until the contrary is proved. In this same trend of thought and policy, our legislature approved and introduced amendments to our Civil Code granting to illegitimate children the protection and right to inherit to which they were not entitled under the old Civil Code. The purpose of the legislature in amending the Civil Code is to afford protection to these children who, though the object of an act of indiscretion, should not be made to suffer for the act of their parents. “In the same way we may say, in the present case, that a woman who had a child with a man need not prove that she is legally married to the father of the said child because the object of the law is to protect her during the period of her maternity when by reason of her physical condition, she is not in a position to work without risking her life or endangering her health. “In view of the foregoing, the Court is of the opinion, and so holds, that under the provision of Section 8 of Republic Act 679, maternity protection should be given to any woman who gives birth to a child without the need of being married to the father of said child.” In the case of Philippine Manufacturing Company vs. Erlinoa Santos Vda. de Geronimo, Reynaldo Geronimo, and Eliano Garcia (G. R. No. L-6968, 29 November 1954), the Supreme Court said: “It is pointed out, however, that even granting that Garcia was an independent contractor, the company would still be liable under the Workmen’s Compensation Act (Act No. 3428, as amended, section 39[a] and [b]), this on the theory that the deceased laborer, though working directly for the contractor may still be regarded as an em ployee of the company, for, though his employment may be said to be purely casual, still it was ‘for the purpose of the occupation or business of the employer’. “As stipulated, the business of the company is to manufacture soap, vegetable lard, cooking oil, and margarine. It is hard to see how the employment of a painter could be said to be for the purposes of that business. In a similar case, this Court held that ‘when the Workmen’s Compensation Act makes the owner of the factory the employer of the laborers employed therein notwithstanding the inter vention of an independent contractor, it refers to laborers engaged in carrying on the usual business of the factory, and not to the laborers of an independent contractor doing work separate and distinct from the usual business of the owner of the factory.’ (De los Santos vs. Javier, 58 Phil. 82).” AGENTS TELEPHONES BROKERS 3-34-20 CHARTERERS 3-34-29 American Steamship Agencies, Inc. Manila and Tokyo Cable Address: 212 Myers Bldg. “AMERSIIIP ” Fort Area Manila December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 481 In the case of J. P. Heilbronn Company vs. National Labor Union (G. R. No. L-6454, 29 November 1954), the Supreme Court said: “This Court, however, has already held (in the case of Philippine Education Company, Inc. vs. Court of Industrial Relations et al., G. R. No. L-5679, decided November 28, 1953) that such power is con ferred upon that tribunal by Commonwealth Act No. 103, this on the theory that pension payments and retirement plans are embraced in wages and conditions of employment and are, therefore, proper subjects of collective bargaining between employer and employees. Said the Court in that case: ‘The power to allow retirement gratuity or pay is conferred on the Court of Industrial Relations by Sections 1, 4, 13 and 20 of Com. Act No. 103. It was up held by the Supreme Court in Leyte Land Transportation Company vs. Leyte Fanners and Laborers Union, supra, and applied by the Court of Industrial Rela tions in a number of other cases. Pension payments and retirement plans are em braced in “wages” and conditions of employment and are proper subjects of collec tive bargaining. See 12 A. L. R. 2d 274, 275 for American decisions adopting this view. The only limitations are that the award be reasonable and compatible with the employer’s right to a reasonable profit on its capital. The question of reason ableness is a question of fact to be considered in the new trial herein ordered, same as the reasonableness of the increase in wages.’ “But while the power of the Industrial Court to allow retirement gratuity is thus recognized, it should not be overlooked that the power is expressly made subject to the limitation ‘that the award be reason able and compatible with the employer’s right to a reasonable profit on its capital.’ This limitation necessarily imposes upon the court the duty of inquiring into the question of how much the business of the employer could afford to give to the employees by way of pension or gratuity. It does not appear that such inquiry has been undertaken in the present case since no evidence was required on the union’s de mand for gratuity or pension. In the circumstances, we feel that for a fair settlement of the present controversy a new trial is in order. “The order appealed from requires the company within 90 days to ‘adopt and carry out’ a pension plan based on petitioner’s financial situation and on the conditions specified in Demand No. 8. In so far as the order requires the presentation of a mere plan for the payment of gratuities there could be no objection thereto in view of what has already been stated regarding the power of the court in such matters. But in so far as the order requires petitioner to adopt and carry out such plan before it has been approved by the court after proper in vestigation and hearing, the same must be regarded as arbitrary and without factual basis. “Wherefore, the order compleined of is modified in the sense that the petitioner is only required to present a pension plan for approval after due investigation and hearing, the case being for that purpose ordered remanded to the court below.” In the case of Faustino David et al. vs. Jose Cabigao and The Standard-Vacuum Oil Company (G. R. No. L5538, 27 November 1954), the Supreme Court said: “It does notappear from the stipulation of facts that the appellant, as builder, required the contractor to furnish a bond in a sum equi valent to the cost of labor and to execute an affidavit showing that he had paid the wages of the laborers employed in the work. In the absence thereof, it may be presumed that no such bond was fur nished and no such affidavit was executed. “Act No. 3959 requires of any one ordering the construction of a building or work to demand from the contractor that he furnish a bond in a sum equivalent to the cost of the labor. “The bond is to reimburse the builder for whatever amount he may be held liable to pay or had been ordered to pay or had actually paid and the affidavit, to relieve the builder from his statutory liab ility to pay for wages not paid by the contractor. If that is a correct interpretation of the law under consideration, and this construction finds justification in section 2 of the Act above quoted, then the bond requirement is not mandatory but directory for the benefit and pro tection of the builder. It should be noted that the joint and several liability of the builder and contractor would only arise upon or from the failure of the builder to require from the contractor to execute an affidavit showing ‘that he first paid the wages of the laborers employed in said work,’ before paying him the full amount to which he is en titled to receive under the contract. It does not arise from failure to require from the contractor that he furnish the oond. Hence, even if there be no such bond, the builder may still relieve himself from the liability created by the statute by requiring the contractor to execute an affidavit described and referred to in the Act.” MANILA MACHINERY & SUPPLY CO., INC. 233 David & 675 Dasmarinas Sts. Tcls. 3-89-93—3-81-76 P. O. Box 607 M A N I L A “SERVICE STARTS WITH THE SALE” REPRESENTING (Partial List) • BRIGGS-STRATTON—GASOLINE ENGINES • A. P. GREEN REFRACTORY PRODUCTS • DELTA—WOODWORKING MACHINERY • MSA—MINE SAFETY EQUIPMENTS • JEFFREY—CONVEYING EQUIPMENTS • ENTERPRISE—DIESEL ENGINES • KERMATII—MARINE ENGINES • JOY—MINING MACHINERY • HERCULES—POWER UNITS • TAYLOR—THERMOMETERS • GALION—ROAD ROLLERS • WALWORTH—VALVES • TOLEDO—SCALES • DEMING—PUMPS MECHANICAL SUPPLIES—MACHINE TOOLS WE THANK the business community for con tributing to the success of our small, new enterprise, the first and only joint air-ground * SECURITY DELIVERY SERVICE in the Philippines The Season's Greetings To All Our Clients, Both Present and Future 2147 Azcarraga Telephone 3-25-19 METROPOLITAN INVESTIGATIVE AGENCY, PILFERAGE AND ARSON INVESTIGATIONS LIE DETECTOR TESTS-DOCUMENT ANALYSIS JOHN E. CURTIN, GEN. MGR. SECURITY DELIVERY SERVICE ------------------------1 N C .-----------------------613 M. II. Del Pilar Telephone 5-63-90 American Management and Methods 482 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 Chamber Business By Stanley N. Fisher Executive Vice-President American Chamber of Commerce of the Philippines AT the November meeting of the Board of Directors, and in accordance with the By-Laws, a Nominating Committee was appointed * and charged with the re sponsibility of choosing at least nine eligible representa tives of active-member firms, and/or individual active members, whose names will appear on the ballot to be voted upon by the entire active membership of the Cham ber at the next Annual Meeting, January 28, 1955, for the 1955 Board of Directors. *Chairman: J. L. Manning; Members: J. F. Cotton, L. C. Hayden, R.J. Monical, J. T. Naylor, L. B. Nestle, F. S. Townsend. At the last meeting of the Board of Directors, held on December 6, the Nominating Committee’s selection was presented, as follows: Messrs. Newland Baldwin, Macondray & Co., Inc.; Frank C. Bennett, Atlantic, Gulf and Pacific Company of Manila; Earl Carroll, Philippine American Life Insurance Company; George H. Evans, individual active member, Manila; C. M. Freeman, Tide Water Associated Oil Company; A. H. Henderson, Amer ican International Underwriters for the Philippines, Inc.; C. A. Larsen, Standard-Vacuum Oil Company; R. J. Monical, Caltex (Philippines) Inc.; L. B. Nestle, Erlanger 8s Galinger, Inc.; W. C. Palmer, III, Getz Bros. 8b Co., Inc.; Paul R. Parrette, Philippine Maufacturing Com pany; H. W. Reed, Philippine Long Distance Telephone Company; Merle S. Robie, Columbian Rope Company of the Philippines, Inc.; Ewald E. Selph, Ross, Selph, Carrascoso 8b Janda; W. M. Simmons, The National City Bank of New York; Victor B. Smith, Atkins, Kroll 8b Co.; Inc.; W. R. Snyder, Manila Electric Company; F. H. Spengler, American President Lines; H. C. Stevenson, Pacific Far East Line, Inc.; and Paul Wood, International Harvester Company of Philippines. A brief analysis of this list of twenty nominees reveals that ten have already served on previous American Cham ber Boards and that, of the other ten, seven have appeared on previous ballots, and three are appearing on a ballot for the first time, to wit: Previous Service—Messrs. Bennett (1949, 1952-1954); Henderson (1954—Treas urer); Palmer (1953--Acting President from December); Parrette (1953, 1954—President); Robie (1954—from October); Selph (1952-1954—Vice-President from June); Simmons (1953-1954—Vice President); Spengler (1954); Stevenson (1951, 1952); and Wood (1950—President, 1951-1954). On Previous Ballots—Messrs. Carroll, 1951; Evans, 1954; Freeman, 1954; Monical, 1952; Nes tle, 1954; Smith, 1954; and Snyder, 1952. Initial Ballot —Messrs. Baldwin, Larsen, and Reed. As notea, these twenty names will appear on the 1955 ballot and voting, in person or by proxy, by active members only, will take place at the Annual Meeting on January 28, 1954. The Elks Club, in whose building the Chamber offices have been situated since last August, have kindly made their Lodge Room available for this meeting, and the ballot box will be open there from 1:30 to 4:30 p. m. on the day appointed. The Annual Meeting will be formally opened by the President, Paul R. Parrette, at 4:30 p. m., and the Order of Business will include: Reading of the Minutes of that Last Annual Meeting, President’s Annual Report, Open Discussion, and Report of Tellers on the Result of the Election. Refreshments will be available through the Elks Club facilities, and arrangements are being made so that all ACCP members may sign chits. This is the one scheduled occasion during the year when all members may get together to discuss the pur poses, goals, and operations of the American Chamber, and it is hoped, and urged, that as many members as pos sible will attend. If a member cannot attend in person, note should be taken that proxy forms will be made avail able within the next few weeks. It has been requested, however, that members attending the Annual Meeting limit themselves to acting as proxy for but one other member. tn “Chamber Business” in last month’s Journal, we A reviewed the results of the membership drive during the months of August, September, and October. We now have to report that the drive came to a most successful conclusion on November 30 with an increase in total membership of over 25%, and that the Chamber roster now stands at 226, of which 189 are Active and 37 are Associate Members. Not only is this increase noteworthy percentagewise (it compares with only a 6% increase in Chamber membership over the past six and a half years), but also—and of great significance, in bringing our mem bership up over the 200 mark, we can with greater va lidity than ever before speak as the voice of American business in the Philippines. The Chamber is already con sidering ways and means by which its greater strength— and thus its greater responsibilities, may be translated into action during the coming year. Other matters in which the Chamber has been en gaged during November and early December include: (1) Attendance by many officers and members at the lun cheon given by the Chamber of Commerce of the PhilipMAKE THIS YOUR HEADQUARTERS FOR Prestige'Building Printing In ’55 Letterpress Pace-Setters for 55 Years .—Rates that are order sMKU :^or themselves -PMcClJLLOUGn Printing Co. (A Division of Philippine Education Co.) 1104 Castillejos, Manila Telephone 3-22-51 December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 483 pines on November 26 to honor Mr. Eric Johnston, Pres ident of the Motion Picture Association of America, four times past President of the Chamber of Commerce of the United States, and, concurrently with his moving picture affiliation, an Eisenhower appointee as Chairman of the International Advisory Board, (2) Concluded its inves tigation of present developments with respect to the in stituting of claims for American bank accounts seques tered by the Japanese military authorities during the war—see ACC Special Bulletins No. 9 and No. 10, Nov ember 26, 1954; and (3) Bid both Hail and Farewell to our President, Paul R. Parrette, who flew in from the United States on November 9 and returned there to spend the Christmas holidays with his family on December 7. He is scheduled to return to the Philippines on or about January 6. qpeaking of Christmas, although the Chamber will shortly be greeting its members by card, we should like to take the opportunity open to an editor of a department to record here our own Christmas message: It has been our privilege to serve the Chamber as Executive VicePresident for the past four and a half months during which time—in person, by ’phone, by letter, through our Bul letins, and, more latterly, through this department—we have made a host of new friends. To these new friends we extend a Merry Christmas and a Happy New Year and hope to continue doing so for years to come. Philippine Safety Council By Frank S. Tenny Founder and Executive Director EMPHATIC efforts are being bent toward reminding the general public of “A Safe Holiday Season.” Local experience has shown that the last two weeks of the year are the most dangerous insofar as preventable fires, crimes, and accidents are concerned. Reasons are varied and apparent: Management is absent or on vacation; everyone’s mind is on the holidays, rather than on business or safety; criminals are active; drivers are generally more reckless, due to Christmas spirit(s); light outlets are over loaded with decorative lights, and candles are used. All in all, the net result is a happy but risky season. The Council’s technical staff announces with pride that it was engaged to coordinate the various safety-securitytraffic factors in connection with the inauguration of the Caltex Philippines Refinery at Bauan, Batangas. Business affiliation with the Council continues to increase. During recent weeks new members include: John J. Brickley of the Pampanga Sugar Mills, Attorney Juan Orendain, the Sta Ana Real Estate Development Corp., L. D. Seymour Co., Col. Shih I. Sheng, the Norton Harrison Co. and Jackbilt Concrete Products, and several others. In addition, several new safety projects are scheduled to begin as of the first of the year. An application has been received from a government civic-private group in Cebu City to form a chapter of the Council there. This comes at the same time a similar movement is developing in Dagupan City. It appears that these two cities will soon boast the first two operating and approved Safety Council Chapters. On December 20, the Manila Taxicab Association awarded 14 “Model Drivers of 1954” with suitable badges and certificates. These men, one from each member com pany, were selected on a basis of “no accidents and no vio lations” for the year. The project will be continued as an incentive to safe driving by the 2,000 taxi drivers employed by MTA members. THE ROUTE OF THE BEARS Serving THE PHILIPPINES JAPAN HONGKONG U S. WEST COAST PORTS FAST - REGULAR - DEPENDABLE TELS. I UNITED STATES LINES, INC. GENERAL AGENTS 33601 33602 33603 33604 PORT AREA MANILA GAS FORK TRUCK DRIVES LIKE A CAR Smooth, vibrationless Fluid Drive Automotive Controls' 130" lift Powerful 65 HP gasoline /a engine Hypoid Drive power axle Automotive acting hydraulic brakes Cleated ground-gripper tires Capacities to 10,000 lbs. THE EDWARD J. NELL CO. Antia corner Arzoltispo, Intrainuros, Manila I’. O. Box 612 Tel. 3-21-21 484 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 COST OF LIVING PRICE INDEX FOR WAGE EARNERS’ FAMILIES IN MANILA, BY YEAR AND MONTH, 1935-1954 (1941 = 100) PASIG RIVER BODEGAS GENERAL BONDED WAREHOUSES * SOUTHWESTERN SUGAR & MOLASSES CO. (FAR EAST), INC. MOLASSES BUYER 145 Muelle de Binondo Tel. 2-63-10 Here are the sharpest, 24 BLADES only p2«! longest-lasting blades ever offered: D/Stn6utors-PHILIPPINE EDUCATION CO.-Mani I a Bureau of the Census and Statistics Year and Month All (ioo)3 Food (63.43) House Rent (11.96) Cloth ing (2.04) Fuel, Light and Water (7.73) laneous (14.84) ing Power 1935........... . 89.7 89.7 96. * 1 89.7 85.1 90.2 1.1148 1936........... . 87.4 88.31 96.6 88.4 77.5 87.7 1.1442 1937........... . 88.8 88.31 96.4 88.2 85.2 89.5 1.1261 1938........... . 92.1 92.1 96.8 92. 2 88.8 92.5 1.0858 1939........... . 93.21 94.81 97.7 94.8 84.3 92.9 1.0730 1940........... . 97.3 98.9 98.5) 99. 0 89.9 96.7 1.0277 1941........... . 100.0> 100.0 100.() 100. 0 100.0 100.0 1.0000 1945........... . 691.5 834.31 236.4 1448.4 379.1 650.9 0.1446 1946........... . 521.7 649.4 236.4 649.7 348.2 383.3 0.1917 1947........... . 387.2 415.4 453.?) 256.8 310.0 272.2 0.2583 1948........... . 364.2: 386.1. 453.9 208.4 288.9 259.1 0.2746 1949........... . 343.7 357. S1 453.?) 198.4 272.9 251.1 0.2910 1950........... . 332.9' 333.5' 453.?) 270. 7 252.0 282.8 0.3004 1951........... . 352.6> 361.5 453.9 365.3 248.0 285.7 0.2836 1952.......... . 339.4 347.4 453.9 295.9 244.1 268.4 0.2946 January............ . 342.81 350.9 453.91 330. 8 247.5 269.7 0.2917 February ......... . 341.21 349.8 453.91 311. 2 243.4 268.5 0.2931 March............... . 337.9i 345.1 453.9 301. 1 243.4 268.1 0.2959 April................. . 335.9 342.7 453.9 300. 7 243.4 264.6 0.2977 May.................. . 335.1 341.8 453.9 293. 2 243.4 264.4 0.2984 June.................. . 338.1 346.3 '453.9 290.2 243.4 265.5 0.2952 July................... . 340.4■ 349.5 453.9 286. 6 243.4 268.1 0.2938 August............. . 340.7 349.4 453.9 289. 1 243.4 269.9 0.2938 September. . . . . 341.1 350.0 453.9 287.7 243.4 270.7 0.2935 October............ . 337.6> 344.6 453.9 289.3 243.4 269.4 0.2962 November.... . 340.5 349.3 453.9 286.2 243.4 269.8 0.2937 December........ . 340.9' 348.9 453.9 284.4 247.5 272.3 0.2933 1953........... . 318.21 314.3 453.9 280. 1 243.7 269.5 0.3143 January............ . 337.3■ 343.2 453.9 283. 7 247.4 272.4 0.2965 February ......... . 323.0i 321.1 453.9 281.5 243.4 273.0 0.3096 March............... . 318.6 314.3 453.9 281. 5 243.4 272.4 0.3139 April.................. . 317.6i 312.8 453.9 281. 1 243.4 272.2 0.3149 May.................. . 314.3 307.8 453.9 280.9 243.4 271.1 0.3182 June.................. . 313.1 306.0 453.9 277. 8 243.4 271.1 0.3194 July................... . 316.0i 311.0 453.0 277. 8 243.4 269.5 0.3165 August.............. . 316.1 311.9 453.9 277. 8 243.4 266.4 0.3164 September.... . 315.8l 311.6 453.9 277. 8 243.4 265.6 0.3167 October............ . 315.3 310.6 453.9 279.0 243.4 266.4 0.3172 November.... . 315.2 310.1 453.9 280.9 243.4 267.0 0.3173 December........ . 315.5 310.7 453.9 280. 9 243.4 267.0 0.3170 1954........... January............ . 311.7’ 304.7 453.9 279..3 243.4 267.0 0.3208 February ......... . 301.5 290 0 453.9 278.3 232.1 267 0 0.3317 March............. . 301.1 289.5 453.9 274.19 232.1 267.0 0.3321 April................... 302 9 292 5 453.9 272.:2 232.1 266.8 0.3301 May................... 309.7 302.8 453.9 272.12 235.7 266.5 0.3229 June.................... 312.6 306.9 453.9 271.18 238.4 267.3 0.3199 July..................... 318.6 316.2 453.9 278.15 236.7 267.9 0.3139 August............... 321.6 320.7 453.9 274.?r 236.7 269.3 0.3109 September........ 321.3 320 0 453.9 271.7 236.7 271.0 0.3112 October............. 317.8 314.4 453.9 271.J> 236.7 :271.2 0.3147 November......... 318.2 314.9 453.9 271.f! 236.7 271.5 0.3143 Subscribe to the JOURNAL To keep your files complete December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 485 “LET YOUR HAIR DOWN” AS others besides Mr. E. D. Hester (see his letter in this col umn in last month’s issue) may be interested in a break-down of the “Other Imports” item in the 1953 Philippine foreign trade figures pub lished in the May, 1954, issue of the Journal, we print the reply of Director Leon Ma. Gonzales of the Bureau of the Census and Statis tics to a letter from the Journal editor here (the editor’s letter, by the way, was dated November 1C and the Director’s reply, Novem ber 12; one couldn’t ask for a prompter response than that): “With reference to the inquiry. . . I am pleased to furnish you herewith a separate statement indicating the selected commo dities composing the item in question with a minimum value of Pl,000,000 each. The foodstuff articles included in ‘Other Im ports’ are likewise given in our statement, aside from those enumerated in our ‘Twenty Leading Imports for 1953’.” OTHER IMPORTS, 1953 (Component articles thereof) Article Value (Pesos) Meat and meat products......................... 6,749,934 Tallow.......................................................... 1,193,366 Vegetables and vegetable preparations. 6,171,924 Sugar molasses and syrups.................... 2,263,714 Beverages, wines and liquors................. 7,069,034 g>ea£fon’£i iSreetingjS! jspulvix ^PRODUCTS w for your dogs * Dry Shampoo * Dog Soap * Flea Powder ¥ Cough Medicine ¥ Worm Capsules * Eye Lotion * Vitamins * Laxative Tablets etc.—Complete Line For Sale at all Drug Stores and Groceries Sole distributor in the Philippines YUCUANSEH DRUG CO., INC. 436 Dasmarinas St., Manila Rubber and manufactures (except Gums, resins, oils and vegetable waxes . Seeds and nursery stock........................ Wool and manufactures......................... Miscellaneous textile products............. Non-metallic minerals (except mineral oils)......................................................... Agricultural machinery and implements Miscellaneous metal manufactures. . . . Explosives, fireworks and ammunitions. Paints, pigments and varnishes............. Soaps and toilet preparations................ Photographic goods, scientific and pro fessional instruments.......................... Toys games and sporting goods........... Clocks, watches and parts...................... Cellophane and manufactures................ Ink and ink powder................................. Pencils and fountain-pens....................... Flastic materials (other than pyroxylin products)................................................ Total................................................... 115,069,184 several, friends of the editor, both in the United States and here, have called his attention to a new book, “Pygmies and Dream Giants”, by Dr. Kilton Stewart (W. W. Norton & Co:, Inc., 302 pp.) in which the editor and his wife (the first Mrs. Hartendorp) play quite a part. The author states, in fact, “My expedition had begun, really, with my arrival at the Hartendorps’ home. I remember that I approached the house with excite ment, hope, and misgiving...” The expedition referred to is one the author made late in 1933 and early 1934 to the Negrito country (Bataan and Zambales) and to the Ilongot, Kankanai, Ifugao, and Bontoc areas (Nueva Vizcaya and the Mountain Province), which the editor is credited, in the book, with financing through an advance payment of P500 for arti cles which Stewart was to write for the Philippine Magazine. Margaret Mead, the noted American woman ethnologist, says of Stewart’s book: “A valuable and fascinating account—by an orig inal, insatiably curious, and un conventional investigator—of his search for laws of psychotherapy among the three primitive peoples in the wilds of the Philippines.” According to our editor, the book is mainly an adventure in the psychoanalysis of primitive peoples, rather subjective throughout, and even mystical, with the author also seeking to resolve, on this expedition, certain psychological complexes of his own through his strange experiences among these people in connection with their religious, and mainly their healing, ceremonies. The editor says that some twenty years ago he was immediately in terested in Dr. Stewart’s plans be cause he himself had come to the Philippines originally to make a study of Negrito intelligence, which, however, the immediate circum stances made impossible; later, he was diverted from science to jour nalism. He says that he would have liked to have seen more ob jective data in Dr. Stewart’s book than it actually contains, though very important and interesting con clusions are arrived at by the au thor. CONVENIENCE PAL *1 *1 *1 *1 *1 *1 *1 *1 *1 *1 *1 FINEST, FASTEST AND MOST FREQUENT CONVAIR 340 SERVICE FROM MANILA TO HONGKONG BANGKOK and TAIPEI J 5 flights f qVI- a week to HONGKONG T3 hrs. 10 min. flying]^ CONVENIENCE... PLUS WORLD-FAMED PAL PERSONALIZED SERVICE AT THRIFTY. LOW TOURIST FARES See your travel agent or call Philip pins Am lints tourt or tut Orient-^Star® 486 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 The editor says that he publish ed, in all, four articles by Dr. Ste wart in the Philippine Magazine, —the first, “An Evening with the Ainu Chief of Chicaboomi, Hokido” (December, 1933), “The Old Man of the Mountains in Luzon” (Feb ruary, 1934), “Children of the Forest” (March, 1934), and “The Yami of Botel Tobago” (July, 1937), the latter given to him on a later visit of the author’s to the Philip pines. Of these four articles, only the second, which deals mainly with the people of Ifugao, and the third, which deals with the Negri tos, have to do with the theme of the book, but it is very interesting, says the editor, to note, in the book, <0> ALLIS-CHALMERS COMPLETE LINE OF V-BELTS AND MAGICGRIP SHEAVES Texrope V-belts are accurately made, tough and long-wearing. Magic-Grip sheaves can be mounted or demounted quickly and easily. No hammering or reaming is ever required. the development and elaboration of incidents and thoughts first sketched out in the articles. The “Hartendorp home” refer red to at some length in the book is not the editor’s present home in Quezon City, but his home, for some years before the war, at Balintawak,—a big farmhouse which belonged to the former Director of Non-Christian Tribes, Jose G. Sanvictores. Author Stewart uses “Mrs. Hartendorp” throughout the book as a sort of lay figure in that she was supposed to have asked him, when he first came to the house for dinner, what he was “running away from”. It is this “running away” motive that runs through TEXROPE DRIVES These drives are famous for their good engineering, fine workman ship and dependable performance. Allis-Chalmers originated the mul tiple V-belt drive for industry, and offers the most complete line of equipment you can get. We are prepared to help you with any drive problem. SPEED CHANGERS Give you smooth, infinite speed varia tions up to 275%. Get less speed control at low cost with Texrope varia ble speed sheaves. the book and that constituted one of the author’s “complexes” already referred to, but the editor says that he can not believe that his wife would have asked so blunt a ques tion of a dinner guest, especially one whom she was meeting for the first time. However, says the edi tor, the author had to put that question in the mouth of some one, and he adds that he is sure that this hurts no one except himself who does not much like to have it thought that such impertinent questions ever have been or will be asked of people who visit his home. However, says the editor, that is only a personal and very minor point, and he is mightily pleased that the small contribution he made so long ago has resulted in the pro duction of a strange, unique, and exciting book. It represents, for him, one of the finest compensa tions in this thirty years of work as an editor. Proof that the Journal gets around is again supplied by two letters to the editor, both from gentlemen not personally known to him. One, from an attorney-at-law, in Maplewood, New Jersey, Mr. Edmund B. Shotwell, read: “Dear friend: "Over a bowl of soup in the dining room of the Chamber of Commerce of the State of NEUSS, HESSLEIN CO., INC. 304 Nueva, Manila Phone 3-99-71 Cable Address: “NEHESCO” ★ Foremost Suppliers of Tex tiles in the Philippines for 54 Years ★ MOTORS Allis-Chalmers are built to give long, dependable service. Many sizes and types are available, from 1 hp up. CONTROL Complete your drives with fine Allis-Chalmers control. Types to start and protect any motor safely and dependably. MILLONARIO SHARKSKIN WALDORF PERCALES FAUST STRIPED DENIM COMMANDER BROADCLOTHS MILLONARIO GABARDINE AGUILA DENIMS CARABELA CHAMBRAY SEINE TWINE & YARNS Texrope and Magic-Grip are Allis-Chalmers trademarks. Exclusive Distributors: THE EARNSHAWS DOCKS & HONOLULU IRON WORKS Main Office: Cor. TACOMA & 2nd Sta., PORT. AREA MANILA • TEL. 3-35-41 Branch Offices at: BACOLOD CITY • CEBU CITY • P. O. BOX 282 Suppliers of all Articles for Clothing, Shirt and Umbrella Factories ★ December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 487 New York (I am associated with a New York City law firm, daytimes, and live in New Jersey) I chuckled over your article about Mobiles and your ‘Sunday Morning at Gracehouse (With the grandchildren away)’ —I have two myselfl Your clock bit is good. I was inspired to the following out pouring and send it on chiefly to get rid of it: A MOBILE is a thing that sets, Or maybe hangs or lies, And looks like something never seen Beneath our current skies. That’s why it’s quaint: Because it AINT. “If Alex. Calder goes through, Indiabound or rebounding, I trust you’ll make him read this; it will serve him right. "I am impressed with the sense of con trolled power in the Philippines; I think you are all doing a fine job in steadying a tempestuous scene. “With best wishes, etc.” The reference is this letter is to a poem published in the “Hair-Down” column in the August Journal. The second letter is from Ams terdam, Holland, from the Secretary General, Mr. Maclean W. McLean, of the “World Movement for World Federal Government.” The letter follows: “It is admittedly a commonplace to say that we live in a small world. Yet we do tend to show our lack of realising fully how small it is when we find ourselves surprised, at times, to find fresh evidence of it. “My reason for writing to you is that in this morning’s post came a letter from a col league in London which draws attention to an article, or rather an editorial which you wrote for the September issue of the EVERETT STEAMSHIP CORPORATION Owners-Brokers-Agenta Manila 155 Juan Luna St., Tel. 2-79-31 General Agencies AMERICAN MAIL LINE From Seattle Tacoma Philippines Indonesia To Portland Vancouver Japan Straits PACIFIC TRANSPORT LINES To and From California-Japan * Philippine * BARBER-FERN-VILLE LINES To U.S. Atlantic Via Straits,. Suez, Mediterranean FERN-VILLE FAR EAST LINES To and From North Atlantic Porta Gulf Porta-Philippinea Via Panama MESSAGERIES MARITIMES To and From Europe and Mediterranean Porte EVERETT ORIENT LINE ' Between Philippines, China, Japan Korea, Straits, and India Porte EVERETT STAR LINE Between Japan, China, Straits, India, and Persian Gulf Ports PHILIPPINE STEAM NAVIGATION CO. Serving the Philippine Islands UNITED STATES SALVAGE ASSOCIATION UNITAS OSLO THAI AIRWAYS To and From Bangkok, Singora, Singapore Hongkong, Taipeh, Okinawa, and Japan American Chamber of Commerce Journal. It was entitled, ‘The Bomb and World Government’, and in it you referred to an earlier piece you wrote for the May num ber on the same subject. “Now my correspondent wonders whe ther we are in touch with you, since you obviously are thinking along the same lines as we are. “As far as I know, you are not in touch with us even indirectly, but perhaps you will be interested to know that for a time there was actually an organisation affiliated to our World Movement in the Philippines. It was started by a young G. I., of Philip pine ancestry, I believe. But upon his return to the States no one seems to have been pre pared to carry on the work of organisation and it became dormant. “Recently, however, I have had occasion to write to a number of people in Manila who for one reason or another I have reason . . . you get greater efficiency in less floor space. ask Fairbanks-Morse It's as simple as that, in the F-M Opposed-Piston diesel. With two pistons reacting to the force of combustion in a common cylinder, you get increased efficiency . . . reduced wear. Yes, that’s the story of the now-famous Opposed-Piston engine. Its performance superiority is proved by more than five million horsepower installed around the world. Only from Fairbanks-Morse can you get originality of engineering and design that assures you such outstanding performance. Look for the diesel designed for greater efficiency—it carries the famous Fairbanks-Morse Seal of Quality. Fairbanks, Morse & Co., Inc., Export Division Fair Lawn, New Jersey, U.S.A. Fairbanks-Morse a name worth romomhoHng whon you wait tho boot Dim: locoMonvn • ruMM ■ icauz • iuctuc aorou and eMSSAtoM • aailioad kjuomznt . fazm tourMsn ATLANTIC, GULF & PACIFIC CO. OF MANILA MERCHANDISE SALES DIVISION Robert Dollar Building Port Area, Manila to believe might agree with us that General Romulo surely must not be the only person out there who feels that a world of anarchy is a serious danger to the Philippines as well as to the rest of the world. “Mr. Salvador Araneta, your Secretary of Agriculture, has recently written to me to say he shares our view that a world fe deralist group in the Philippines should be taking an equal-partnerslip role in our work. Through a copy of this letter I am bringing your article to his attention, in the hope that you may want to get in touch with each other on this subject. “Earlier this month, the President of our World Movement, General Riiser-Larsen, who is a director of Scandinavian Airlines, flew to Manila on an inaugural flight of S.A.S. I have not yet heard from him, but I hope very much that he had an oppor tunity to meet Mr. Araneta and some other federalist-minded people, and that we soon Tel. 3-36-61 (Connecting all Depts.) AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 will be hearing that the first steps have been taken toward the re-establishment of a member group in your country. “Last August, our Sixth Annual Congress was held in London. The proposals made there for United Nations Charter Revision and other matters relating to our program will be described in a special Congress edi tion of our paper, The World Federalist, which is due to come from the printer this week. I shall send you a copy, as I believe it will convince you that while what we are talking about is extremely difficult to ac complish, the danger of permitting public opinion to remain frustrated and apathetic to these basic issues is even less support able. “We will hold our next Congress in Paris, probably during the latter half of August. If you agree, it would seem worthwhile to consider whether it can be practical to es tablish in the meantime a group of persons in Manila (or elsewhere in the Philippines), Display Room: Consolidated Inv. Bldg. Plaza Goiti, Manila — Telephone 3-24-57 Main Office: 222 Espana Ext., Tels. 7-26-42; 7-26-43; 7-26-44 which can study the problems which face us, and prepare a report which would enable our Congress Commissions to see how these complications look from your part of the world. “This is one organisation where a report from a country of 18 million people can receive equal attention to that coming from a land with ten times that population. ONLY, we must first establish the part nership before results can be expected. “Under separate cover I am sending you some material which I think will in terest you. And, by the way, you may be surprised to know that His Excellency, Judge Roberto Regala, Philippine Minister to Australia and New Zealand, has for long been a Vice-President of our affiliated or ganisation in Australia. We hope very much to persuade General Romulo to be come a Vice-President of the World Move ment. His recent speeches at the UN are certainly stimulating to us ” tt will be close to Christmas, prob A ably, by the time this issue of the Journal will reach some of its Phil ippine readers and New Year or after by the time it reaches readers abroad. So, though it is still pretty early at this writing, we wish all our readers everywhere a Merry Christ mas and a Happy New Year. The editor confided to us that by this Yuletide, in bis family-house, four of the five young women living there will have infants all bom during the latter half of the year. One of these young women is his own wife and the other three are his daughters-in-law. Two of the chil dren are boys, one is a girl, and he doesn’t know yet what the fourth one will be, but all of these 1954 babes are or will be Hartendorps. What a year for him! Besides this youngest son and the three new grandchildren, he has three older sons and their wives, a daughter and her husband, and nine other grandchildren in the house. This place, built in Quezon City since the war and soon after he became editor of the Journal, he calls “Grace house”, and, as to the life there, he said, between a groan and a laugh, “It’s Christmas all the time at our house. Just think of all the birth days!” •DUMP YOUR TRAVEL WORRIES OVERBOARD! for carefree travel at its best... consult • TRAVEL COUNSELORS • B 0 0 K I N G AGENTS /or oH ofrl/nej 217 Dasmarlnas, Manila • Tel. 2-69-56 December, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 489 Index for 1954 Volume XXX Editorials: Abello’s Two Questions, Mr....................................................................... 332 American Citizens, American Embassy Interest and Duty re Pro tection of Interests of.............................................................................. 6 Atomic Bomb and World Government, The....................................... 172 Atomic Bomb and World Government, Russell on the.................... 334 Atomic Energy, Visit of the Congressional Joint Committee on 452 Atomic Pool Plan, The Eisenhower......................................................... 4 Arson, The Puyt.t Bill and the Crime of............................................... 84 Bell Act Provision “Suspension”............................................................. 167 Bell Trade Act, The “Objections” to the.............................................. 332 “Blue Sunday” Employment Law, The................................................ 49 Caltex Petroleum Refinery in Batangas, The.................................... 456 “Capital”......................................................................................................... 173 Chamber, Officers and Board Members, New..................................... 54 Coconut Industries, The Rice and the................................................... 8 Coconut, The Cadang-cadang Disease of the...................................• 372 Colombo Plan Membership, Philippine................................................. 411 “Colonial Economy”, Perpetuating a..................................................... 334 “Colonialism”, United States Policy and.............................................. 214 Economic and Social Survey of Central Luzon, Rivera-McMillan 456 Economic Development Plan, The Five-Year Magsaysay.............. 126 Economic Progress, President Eisenhower on...................... ,.......... 211 Eisenhower on the Conditions of Economic Progress, President.. 211 Government, Trend to Youth in the.................................................... 44 Hubbell Monument, Transfer of the...................................................... 128 Imports, Total Banning of Certain......................................................... 372 Industrial Establishments, Directory of Philippine........................... - 297 “Industrial Peace”, The Causes of......................................................... 258 “Industrial Philippines”, New PHILCUSA Report:......................... 83 Industry, Possibilities for an Organic Chemical................................. 415 Investment Assistance Commission, The New.................................... 297 Investment “Climate”, The Philippines Ranked in.......................... 127 Investment Law, Turkey’s New.............................................................. 170 Labor, The “Social Security Act of 1954”............................................ 255 Labor Week, The 5-Day, 40-Hour........................................................... 170 Land-Ownership in the United States, Restrictions on.................... 259 Magsaysay Address, Special Points of Interest to Businessmen in the............................................................................................................ 43 Magsaysay Five-Year Economic Development Plan, The.............. 126 Magsaysay and His Job, President......................................................... ' 83 Magsaysay Inauguration, The.................................................................. 43 Manila Conference of 1954, The.............................................................. 331 McMillan-Rivera Report, The Barrios in the..................................... 48 Mountain Province, Progress Measured in the................................... 48 "Nationalization” Bill and “Embarrassment”, The Retail............. 211 “Nationalization” Bills, This Year’s...................................................... 168 Netherlands, Recovery in the................................................................... 86 Petroleum Survey, Report of the Pre-War............................................ 259 Randall Report and Trade Agreement Revision, The...................... 123 Rice and the Coconut Industries, The................................................... 8 “Rice Problem”, Easy Solution of the................................................... 371 Russia and Maps of the World, On......................................................... 171 Scientific Congresses, Two Great.............. 6 Self-Sufficient in Food Production, The Philippines......................... 451 “Social Security Act of 1954”, The......................................................... 255 Trade Act Revision Negotiations, McGraw-Hill on.......................... 411 Trade Agreement and the Development of New Markets, The.. . 295 Trade Agreement, Important Advance toward Revision of............ 123 Trade Agreement, Perpetuating a “Colonial Economy” in the. . . 334 Trade Agreement Revision, Mr. Abello’s Two Questions on......... 332 Trade Agreement Revision, The Randall Report on........................ 123 Trade, Filipinos in Philippine Domestic................................................ 214 Trade, Filipinos in Philippine Foreign.................................................. 212 Treaty between The United States and China, Mutual Defense. 452 Turkey’s New Foreign Investment Law............................................... 170 War Not Inevitable.................................................................................... 454 Week, The 5-Day, 40-Hour Work........................................................... 170 “What Can a Man do?” (F.O.A. Publication).................................... 415 “Boarding Ladders” of Communism, Herbert Hoover on.............. 457 Articles, etc. Automotive Companies in the Philippines....................................... J. L. Manning..................... 174 Bairios, Needs of.............................. McMillan-Rivera Report 49 Business Policies, Brief Review of the Government's President Ramon Mag saysay................................... 176 Business Prospects for 1954......... Secretary Cornelio Balmaceda............................... 8 Chamber of Commerce for 1953, Annual Report of the Board of Directors of the American................................................................... 86 Chamber of Commerce Committees for 1954, American Chamber of Commerce, New York, Excerpts from the Annual Report for 1953 of the Philippine American Defense and the Business Com munity, Civil................ ........... Economic Development, Program, The Five-Year............................... Economic Principles, Policies, and Plans, Declaration of.................. Foreign Policy, Statement on the Philippines’ Asian......................... Government-Owned and Control led Corporations, Synoptic List of Investment Assistance Commis sion, The New (Executive Order No. 47).............................................. Investments by Nationality and Nature of Business, 1945-1954 (Table).............................................. Languages, Philippine Land, Legislation to Regulate Alien Ownership and Use of................ Lumber Industry, The State of the Manufacturing Establishments by Kind of Manufacture, Produc tion of............................................... Frank S. Tenny.................. 375 President Ramon Mag saysay .................................... 130 Representatives Pedro Lopez, Eulogio Rodriguez, Jr., and Ferdi nand Marcos.......... 136 President Ramon Mag saysay................................... 92 President Ramon Mag saysay................................... 300 Department of Com merce and Industry.. . 417 92 C. S. Gonzales.................... 261 Antonio de las Alas........... 132 Bureau of the Census and Statistics............................ 223 gfavted, fat cctwMcMce The Finest Office Aids & Equipment Are Available At /FHILlFPINEgUClTIDH C0> 1104 CastiUejos. Manila Telephone 3-22-51 490 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1954 Index . . . (Continued from page 489) Medical and Dental Care (Table), Legal Obligations of Commer cial and Industrial Establish ments to Provide. Motor Vehicles in the Philippines, 1912-1953........................................ __ Nationalism, President Magsaysay’s. “Nationalization” Bills, State ment on. Tabulated by Dwight Dill, M.D....................................... Motor Vehicles Office... “Nationalization”, Domestic Trade and the Problem of. . .. “Nationalization”, The Rice Pro blem and.......................................... “Nationalization”, Retail Trade— “An Act to Regulate the Retail Business” (House Bill No. 2523). “Nationalization” and Americans, Trade................................................. Committee on Foreign and Domestic Trade, American Chamber of Commerce.......................... Philippine National Bank. Philippine National Bank 376 459 221 173 218 213 216 Philippine-American Day Address Philippine-American Day (Procla mation No. 52).............................. Leon Ma. Guerrero.......... Secretary of Justice Pedro Tuason................................ Speaker Jose B. Laurel, Jr. 298 299 301 "Safety” in Business....................... Spanish Regime, Trade Policies and Philippine Development during the........................................ “State of the Nation”, Address on the....................................................... President Ramon Mag saysay.............................. Frank S. Tenny.................. Pedro Ortiz Armengol... Tax Statistics, 1953, Income. President Ramon Mag saysay................................... Bureau of Internal Re venue .................................... Anonymous........................... Tondol, Pangasinan.......................... Trade Agreement, Important Ad vance toward Revision of: Letter of President Magsaysay to Ambassador Spruance............. Announcement of the United States Government........................ Trade Policies and Philippine Development during the Spanish Regime.............................................. Pedro Ortiz Armengol... Trade Act Negotiations, The Wash ington ................................................... Trade Act, Revision of the Bell... Trade Act, Comment on Various Objections to the Bell.................. Francisco Dalupan. American Chamber of Commerce Committee on Trade............................ 302 263 10 52 376 52 129 129 10 416 250 335 Trade Proposals Prematurely Re vealed, Piiilippine Trade, Our Foreign Service and Foreign............................................. Trade Statistics, 1953 Compared with 1952, Philippine Foreign... Trade Statistics, First Half of 1954 Compared with First Half of 1953, Philippine......................... Treaty and Protocol, 1954, The South East Asia Collective De fense Treaty of 1951, Letter of Secretary of State Dulles on the Defence of the Philippines under the Mu tual Defense Treaty between the United States and China, Text of the Mutual Security Vic International, Inc. Vice-P resident Carlos P. Garcia............................ 222 Bureau of the Census and Statistics................... 177 Bureau of the Census and Statistics................ 460 338 Arthur R. Cummings.... 338 458 134 The Business View The Government, Official Sources, pp. 15, 54, 94, 136, 180, 225, 264, 303, 340, 377, 418, 461. Banking and Finance, I. E. Spering, pp. 17, 58; Af. D. Arnold, pp. 97, 140, 183, 227, 268, 305, 344, 379, 421, 464. Manila Stock Market, J. J. Ortigas, pp. 18, 58, 97, 140, 183, 227, 268, 306, 344, 380, 421, 464. Credit, R. A. Callahan, p. 18; D. Burn, pp. 59, 98, 140; P. Luthi, pp. 184, 228; P. W. Hannaford, pp. 269, 306, 345; D. Burn, pp. 380, 422, 465. Electric Power Production, J. F. Cotton, pp. 19, 59, 98, 141, 184, 228, 269, 307, 345, 381, 422, 465. Real Estate, A. Varias, pp. 19, 60, 98, 141, 185, 229, 269, 307, 346, 381, 422, 466. Building Construction, J. J. Carlos, pp. 20, 60, 99, 142, 185, 229, 270, 307, 346, 382, 423, 466. Ocean Shipping and Exports, B. B. Tunold, pp. 20, 61, 99, 142, 186, 230, 270, 308; E. H. Bosch, pp. 347, 382, 424, 467. Port of Manila, W. S. Hurst, pp. 20, 61, 100, 142, 186, 230, 271, 307, 346, 382, 423, 466. Arrastre Service, Manila, F. Delgado, pp. 382, 423, 467. Freight Car Loadings, J. B. Libunao, pp. 21, 61, 100, 142, 186, 231, 271, 308, 347, 383, 424, 467. Lumber, P. de Ocampo, pp. 21, 62, 102, 143, 188,233, 271, 308,347, 384, 427, 469. Mining, H. A. Brimo, pp. 23, 64, 101, 144, 186, 232, 273, 311, 348, 384, 425, 468. Copra and Coconut Oil, R. J. McCombe, pp. 23, 68; TV. S. Rice, Jr., pp. 107, 148, 192, 235, 273, 312, 349, 388, 429, 472. Desiccated Coconut, H. R. Hick, pp. 25, 69, 108, 150, 193, 236, 274, 313, 350, 389; H. H. Curran, p. 430; H. R. Hick, p. 473. Sugar, J. H. d'Authreau, pp. 25, 65, 104, 145, 191, 237,275, 314,351, 390, 430, 470. (Continued on page 456) Distribution outlets from Aparri to Zamboanga: Sell through GETZ! The widespread and effective GETZ Distribution system—outport offices and agencies in principal Philippine cities, fourteen sales trucks crisscrossing the major Islands—assures your reaching more consu mers, gives you greater market-coverage for your productsl Which is why— Such well-known imported products as Klim, Hemo, Ray-O-Vac batteries, Calumet, Swansdown, etc., get maximum distribution . . . the maximum distribution desired by such local manufacturers and products like the Original Mafran Sauce, Golden Harvest Soup pro ducts, B B B paper bags, Corona Straws, Mothers. Cocoa, Presto Cleansers, Gold Medal Spaghetti and Macaroni, Manio Crowns... the maximum distribution that you want and will get for your own products when— “GETZ SELLS IT FOR YOU“1 GETZ BROS. & CO. Offices at: 135 MUELLE DE BINONDO, MANILA . TEL. 1-69-96 to 1-49-98 and MAGALLANES ST., CEBU CITY. TEL. 610 AGENTS AND REPRESENTATIVES: ILOILO • BACOLOD • DAVAO Governor Mariano B. Penaflorida of Iloilo, tells of An important contribution to rural progress province is proud of being a big producer of sugar—one of the Philip pines’ largest dollar-earning exports. Of course, it takes modem methods and con tinued improvement to compete with other countries in the world sugar market. But we have the men and machines to do the job. “Take the case of two friends of mine. Eduardo Lopez and T. S. Zafiro Ledesma. Here are two men who possess a great wealth of experience and knowledge of rural condi tions and problems acquired through active participation in agricultural production. In 1949, they became International Harvester dealers. "As Harvester dealers, Messrs. Lopez and Ledesma are making a vitally important con tribution to rural improvement in our area. They supply us with the modern tractors and ground tools we need to produce bigger sugar crops for. our growing population and for export; also machines and equipment to help us increase our palay crops and run our mills and plants. "Besides sugar and palay. we produce copra, fine fabrics and have extensive fisheries along our coast. So our large transportation sys tem plays a vital role in our development. Here again. Messrs. Lopez and Ledesma do an essential job by supplying us with depend able and economical motor trucks and provid ing up-to-date service facilities. Their opera tions, of course, are based on International Harvester s policy of giving rural development special priority—a policy which the company has followed throughout its 50 years in the Philippines. "Today, our International Harvester dealer ship is a ready source of information on the latest methods in agriculture, industry and transportation. Messrs. Lopez and Ledesma are real assets to our province, they’re making a considerable contribution to the continued prosperity of our people I" Mr. T. S. Zafiro Ledesma, Manager - Treasurer of Lopez and Ledesma Com pany, Internationil Harvester dealers in Iloilo City. Lopez and Le desma Company's base of operations in 19^9, when the company first be-, came International Harvester, dealers. Impressive, modem building is new home of Lopez and Ledesma Company. Pri marily devoted to supplying International Harvester products, Iloilo City's I. H. dealership also provides customers with the latest service facilities, weU-manned by trained experts. Presenting the NEW TRACTION HI-MILER The toughest highway type tire ever offered at standard prices! NEW TREAD DESIGN ME HERE is the most remarkable truck and bus tire ever built — the Traction Hi-Miler by Goodyear! And, it's new —inside and out. The Traction Hi-Miler is built with Triple Tempered cord — a great new development by Goodyear scientists to solve the problem of excessive tire growth, reduce tread cracking to a minimum and provide a body of utmost strength. In addition, tread life is increased with new cool run ning compounds — tougher than ever used before — and a new, exclusive slotted tread design gives positive traction, uniform wear. Every performance feature you need is skillfully cQmbined in the superb Traction Hi-Miler! In 3-T Rayon the Traction Hi-Miler will outperform any other tire selling at standard prices! In 3-T Nylon, NO tire will surpass Traction Hl-Miler's economy for hauling heavy loads at high speed. See it — try it — today! NEW TRIPLE TEMPERED CORD To set tire cord permanently at its strongest most heat resistant point, Goodyear developed new, exclusive Triple Tempered cord. Made in huge processors with Time, Tension and Temperatures precisely controlled, 3-T cord assures extra body stam ina and resistance to heat and bruising. NEW COMPOUNDS Traction Hi-Milers are made with the toughest tread rubber yet com pounded! Extra fine particles of tread toughening carbon black— instead of the old type coarse granules—to minimize tread crack ing, give you a tire that is cool running, extra long wearing. The new five rib slotted tread— another Goodyear exclusive—gives Traction Hi-Milers extra skid re sistance, extraordinary starting and stopping traction. And the new FLAT tread design puts maximum rubber in contact with the road, distributes wear over a wide area and gives still more mileage. MORE TONS, THE WORLD OVER, ARE HAULED ON GOODYEAR TIRES THAN ON ANY OTHER MAKE GOODYEAR MAIN OFFICE: BRANCHES AND WAREHOUSES: 11th & ATLANTA STS., PORT AREA, MANILA CEBU - BACOLOD - ILOILO - DAVAO - LEGASPI “BETTER ROADS MEAN BETTER LIVING”