Journal. [1945]
American Chamber of Commerce of the Philippines.

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Page  1 JUL 1 4 lO4(n..........~ ~ ~ ~~~~~~~.. editor~~~~~~~~~~~~~~~~~~~~~~'., A U. S. HighI- Gom-missioner Paul V. Mci\uitc MANILA, PHILIPPINES )MMERCE VOL. XXII, NO. 1 DECEMBER,. 194550CNAO 50 CEN TAVOS

Page  2 II I! To Our Readers The Journal's four-year hibernation is ended. On awakening from this dormant state, we find ourselves in a new anid confusing world, facing conditions of life and work that are strange in every particular. This new world requires interpretation; these conditions require analysis. Our immediate mission is to provide the information that is requisite to correct interpretation and analysis. This we shall do by picture and by word, by articles, by statistical data, by editorial conmment month by nonth. Paper supplies are still far fron sufficient. In order to be sure of getting your copy of the Journal each month, we urge you to mail us your subscription for one year. The price for the Philippines is P5.00, for the United States S5.00 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 605 Dasmarinias, Manila II

Page  3 -40Y~al THE J:COMMERCE IAL VOL. XXII, NO. 1 DECEMBER, 1945 LL — ~ -- --— ~, THE WATSON BUSINESS MACHINES CORP. of the Philippines 320 NATIONAL CITY BANK BLDG. MANILA Table of Contents Page SALES ^ SERVICE President Osmeia's Message to American Business and Professional Men...................... Reconstruction and Rehabilitation of the Philippines, by Manuel Roxas.................... The Activities of the Escodas as Reported by Observers................................ Let Us Remember the Escodas.................. 5 6 8 9 * Electric Accounting Machines * Time Recorders - Time Systems * Electric Writing Machines Editorials: Paul V. McNutt.......................... The Shanghai Evening Post and Mercury.... Give Us Imports.......................... Black Market Problems in the Philippines.... Education Begins Again, by Gilbert S. Perez..... President Truman and the Philippines......... Pictorial Section.............................. Surplus Property Act of 1944................... Future of Philippine Exports, by an Ex-Manilan Redemption of PNB Notes..................... New Insurance Law........................... Consulates and Banks.......................... Imports Trickle in............................ National City Bank First to Reopen............. 10 10 10 10 13 14 16 18 20 22 23 24 27 28 MENZI & CO., INC. GENERAL MERCHANTS O 327 AYALA BLDG. (National City Bank Bldg.) The American Chamber of Commerce Journal December, 1945 - 3

Page  4 I m The House Which Spells Service -- FAR EAST AMERICAN COMMERCIAL CO., INC. W)holesalers Importers Indentors Sole Agents for MENNEN Products 2nd. and 3rd. Floor Villonco (Life) Bldg. 515 Quezon Bvd., Manila...with a branch in Zamboanga. r U~l Ih I We proudly announce the early arrival of the super PENETRO FAMILY ALSO: | S -. 7.1 MEXSANA Soothed, Cooled, Relieved AND OTHER * ~AMERICAN PRODUCTS;he PHILIPPINE NET & BRAID --— MANUFACTURING CO., INC. -- 1236 AZCARRAGA MANILA - IMPORTERS & EXPORTERS Representatives of Various American Firms THE AMERICAN CHAMBER OF COMMERCE JOURNAL is a quality advertising mediumLet it carry your message to a SELECT public every month. N otice Until costs become more normal, we are not offering advertising contracts for more than one month, so that advertisers will be given the full benefit of decreasing costs. At the present time, our rates are almost double what they were before the war. The reason is apparent. Everything that goes into making a magazine costs at least twice as much as before the war; in the case of most items, three to five times as much; and in the case of one item., fourteen times as much. Any decrease in costs will be immediately reflected in our advertising rates. I The American Chamber of Commerce Journal I December, 1945 I L

Page  5 President Osmena's Message To American Business and Professional Men I welcome this opportunity to speak directly to the American business and professional men who have lived and worked with us in the Philippines. Many of those who were with us in 1941 are no longer here, and can never join us again. Without hesitation, they threw themselves, untrained in war though they were, into the conflict against the Japanese. Some gave their lives on Bataan and Corregidor and in many fields of guerrilla warfare. Others died in prison camps. We can address no words to them, but we shall always remember them as heroes. But I am glad to be able to speak to those who have survived the hardships of these terrible years. And my message is one of warm friendship and hope for the future. It is true that the past can never return. Conditions of life and business are not what they were before the war. Today you face the uncertainty that confronts us all. Your properties have been destroyed. Your homes have been looted and burned. Your enterprises, to which you have devoted your lives, have been disrupted. Political changes of great importance lie ahead. And you no doubt wonder what your future will be. At this time, therefore, I should like to tell you that your forty years of work and development in the Philippines have won our sincere friendship and respect. Your record in business and professional life here in the Philippines is an enviable one. Your progressive enterprise was an important element in the building up of the Philippines. Your relations with the government and people have been honest and upright. Your promptness in paying your taxes to the government is well known. You have been liberal with your employees, in pay and treatment. You have been generous in your support of philanthropic enterprises, and have often taken the initiative in their development. Without you, the Philippines would not have been the same. Most of our own commercial and industrial leaders have been trained by you. In the past we have always welcomed your presence, and we hope that you will remain with us in the future. The task of rebuilding the industry and commerce of the Philippines will be a gigantic one. We want you to stay and help us carry out this task. Manila, P. I. December 1, 1945 ~~~6Pk~~~~~~r~~~ --- The American Chamber of Commerce Journal December, 1945 PI

Page  6 RECONSTRUCTION AND REHABILITATION OF THE PHILIPPINES* By MANUEL ROXAS President of the Philippine Senate What Manuel Roxas thinks and says about the economic problems of the Philippines is important for two reasons. He is an outstanding political leader in the Philippines, and as such is an important factor in the formulation of public opinion. What he believes and says on any subject will later be the opinion of important numbers of his fellow countrymen. Furthermore, Roxas is known on both sides of the Pacific as one of the keenest students of the Philippine economy., ~ ~ ~ _,-...... -- ' i.....__, I After the surrender of our forces in Bataan and Corregidor and Mindanao, for almost three and one-half years of suffering, of almost superhuman resistance on our part, our minds were agitated by thoughts of what would beome of our country after our liberation from the painful and hated grip of the enemy. I say that our minds were agitated by that question because there was never a doubt among us that the day would come when the victorious armies of the United States would set foot on *This article is composed of excerpts from a speech by Senate President Roxas on the floor of the Senate in support of the resolution on the Dingle Bill asking for twenty years free trade between the Philippines and the United States. our soil to drive the enemy from our shores. Realizing as we did what havoc and destruction the war had wrought in our country and finding ourselves helpless to raise our nation from her prostrate state without assistance, we were heartened and encouraged by the news first uttered over the radio by our beloved President Quezon and reiterated several times by our no less bel'oved war leader, President Roosevelt, in whose deep sympathy and friendship for the Filipinos' we had implicit trust. We heard the news that America was going not only to liberate but also to rehabilitate and reconstruct the Philippines. There was never any doubt in our minds, and there is no doubt in my mind today, that that pledge will be redeemed; for the history of America in the Philippines has been a history of fair dealing, of honesty of purpose, of unbroken pledges. In this instance we have every reason to believe that America will fulfill her pledge. America should fulfill her pledge for one of many reasons. The Philippines was the only important country under the American flag that became the battle ground in this war, and where great destruction resulted from the action of the enemy after our surrender-out of revenge. Why? Because the Philippines remained IL A. Soriano y Cia. ADMINISTRATIONS INSURANCE A IL THE BACHRACH MOTOR CO., INC. 2552 Rizal Ave., Manila Distributors of NASH AUSTIN Autonobiles BANTAM WHITE and Quality Trucks FEDERAL -il 3rd Floor SORIANO BLDG. Plaza Cervantes Manila CHAMPION SPARK PLUGS 6 The American Chamber of Commerce Joutnal December, 1945

Page  7 loyal to the United States. A great deal of destruction took place because the Japanese wanted to punish the Philippines as a nation and the Filipinos as individuals for failure to collaborate and cooperate with them in their war effort against the United States. Because of that attitude we lost not only billions worth of property but also thousands of lives. A great part of the destruction occurred by reason not of enemy action either before or after the surrender, but of the exigencies of the war caused by our own liberating forces. This is no charge and no criticism. It had been done to win the battle. I believe the American army could not have done otherwise tio accomplish a speedy and complete liberation of our country. It is only natural when the peace conference meets in America in suplport of the pleas of the people of India, Malaya, Java, Borneo, and French Indo-China, and probably of the people of Korea-although it seems that the question of Korea has already been definitely settled-that America can point out to England, to France, to Holland, and to the other imperial powers, her record in the Philippines-America can show them an enlightened nation earnestly seeking to assist subject peoples to regain their place in the sun and govern themselves, that is the road that you should follow. We have been in the Philippines forty years and we have not exploited that country. The main objective of our policy was to help these people, educate them in democracy, help them build up their economy, and, at the proper time, grive them their independence. And we have set a date for that independence. It is July 4, 1946. And in order to prove our absolute good faith, we are willing to advance that date so that no one might suspect, might have the least suspicion, that before that date arrives, we will try to find some excuse for not carrying it out." And yet, what happens? The Philippines is economically prostrate. Our national economy has been destroyed. The Philipines today is weaker economically than in 1899 when the American forces first landed on our shores. Why? Because at that time, we suffered from no ravages of war to speak of. Philippine agriculture continued to carry on and it was sufficient to provide us with our requirements in food. Our people were probably not luxuriously clothed and sheltered, but we had enough to eat. Today we do not have that. And for no reason or fault that might be attributed to us. Why is our agriculture prostrate? Because we have lost about 75 percent of our work animals-the old re L liable carabao, without which Philippine agriculture cannot continue. We have lost over 80 percent of our tractors. I am told that in Ne.gros only - five percent of the tractors are now in existence, and even these require repairs that cannot be made now. Our farms have been disorganized, there have been movements of population from one farm district to another, and it will take time to readjust these agrarian communities again. Houses have been destroyed. I know of many instances where, because the farmers refused to give their rice to the Japanese, the Japanese had retaliated by burning whole towns and villages. It is no secret to those who have investigated this matter that our expected rice harvest next year will be less than 50 percent of normal. The same thing is true with regard to corn. And the same is true with regard to sweet potatoes and other auxiliary or substitute foodstuffs. Admitting that the United States wants to assist the Philippines to rehabilitate itself, how should we interpret the term "rehabilitation"? President Roosevelt merely said, "I pledge the honor and the resources of the United States not only to liberate the Philippines but to help in the rehabilitation of your country." What did President Roosevelt have in mind when he made that statement? I have reached the conclusion that President Roosevelt meant economic and social rehabilitation, because he was talking about the destruction wrought by the war. He was talking about the people who were suffering as a result of the war, the people who had lost their homes, who had been maimed and rendered incapacitated by the war. He knew that our schools had been closed, that agrarian troubles had occurred. He meant, I believe, economic and social rehlbilitat-ion. The next question is: What is the measure of the aid which President Roosevelt promised in that statement? Or is there a way of measuring it? I say there is. I am sure that President Roosevelt, when he made that statement, measured his words carefully. There is only one way to measure economic rehabilitation, and that is: To try to repair the damage done to our economy. Let us think of our national economy, determine what damage we suffered by it; rehabilitation means the repair, the reconstruction of the damaged parts, so that we may again enjoy the whole. The national income is, of course, the very important figure in determining t-he strength and the resources of the national economy of a country. Before the war, our national income - was estimated at two and a half billion pesos. I have tried to estimate with the assistance of the governr ment offices what our national income is today. With so many of our national industries destroyed, I have reached the conclusion that our national income is less than 40 percent of what it was before the war. When we ask for war damages, we should emphasize that we need that help to rebuild our economy, to reestablish our national income. The measure of assistance that we should ask is the total value of the damage suffered in properties in the Philippines. I can make my position clear by an example: Don Esteban de I'a Rama owned and operated the De la Rama Steamship Company before the war. He has lost several ships as a result of the war. I refer especially to the ships that were in Manila and were destroyed by enemy action. Let us suppose that the value of a ship sunk was a hundred thousand pesos, and that this was the los's suffered by Don Esteban de la Rama. Now, if, or when, the United States gives that money, I do not propose to write out a check for the amount and give it to Don Esteban de la Rama. I propose to notify Don Esteban, "You have a credit of one hundred thousand pesos here in the government, but you can only withdraw that money for the purpose of replacing the ship that you lost because that ship is necessary for the restoration of the transportation service; and if you want to rebuild that ship, or buy a bigger ship, I will not only give you the one hundred thousand pesos but try to help you get more money for that purpose." If a man has lost a sugar central worth five million pesos, and the United States reimburse that loss, I do not propose to give that five million pesos to the central to divide among the stockholders so that they, after getting the money, might go to the United States or Europe and spend that money freely on beautiful automobiles and jewelry. No. I would tell them, "You have a credit 'of five million pesos here, but you can only use it for the purpose of rebuilding your central. However, if your stockholders do not believe that it would be profitable to rebuild the central, then you can invest that money in some other productive enterprise that will replace your central in our productive system and will create opportunity for laborers to work." In other words, our interest is in the rebuilding of our national economy, not in putting the money in the pockets of individuals. I do not know to what extent the (Continued on page 30) The American Chamber of Commerce Journal l'ecember, 1945 7

Page  8 The Activities of the Escodas as Reported by Observers "I know of the highly meritorious relief work done by Mr. and Mrs. Antonio Escoda in the interest of Filipino and American prisoners of war and American and Allied internees. In this patriotic mission which they set for themselves, the Escodas were tireless and without fear. Mr. Escoda also engaged in valuable intelligence work directly under me and General Vicente Lim. When he was apprehended he was on his way to Samar to arrange for the unification of guerrillas there in compliance with my orders. Mrs. Escoda was arrested soon after her husband and they have never been heard of since...." (Signed) Manuel A. Roxas Brigadier General, PA * * * * "At the time the American and Filipino prisoners of war were marched off to Cabanatuan and Capas, respectively, Tony Escoda together with his wife managed in an under cover way to suppl'y not only the Filipino but also American prisoners of war with food, money, and clothing.... Tony Escoda and his wife were extremely helpful in every way not only to the Sto. Tomas Internee Camp but also its subsidiary at Los Banos. They went out of their way to aid every American and performed this work in a manner second to none...." (Signed) Major H. M. Menzi * * * * "When the Japanese came, the Escodas were sought out for service to the Japanese cause. They refused. Instead, in the 'Death March' of the Filipino and American prisoners from Bataan, the Escodas were the first to lead a unit of volunteer workers, doctors and nurses who met the prisoners on the road and gave first aid to the dying and starving prisoners on the roadside at the risk of their own lives. When the American and Filipino prisoners of war were taken to Camp O'Donnell, Mrs. Escoda opened a service station and canteen near the camp, for the prisoners as well as for their families who flocked around the camp to inquire about them. Thousands were sick and hundreds died in the camp daily and there was dire need of medicine and food. Mr. and Mrs. Escoda were given permits by the Japanese commandant of the prison camp to bring in truck loads of food, clothing, medicine, beds for the hospitals that the members of the National Federation of Women's Clubs and the Volunteer Social Aid Committee were able to secure. Many American prisoners were detailed every day to work on the roads and repair bridges and were often allowed by their guards to stop at the National Federation of Women's Club's canteen for coffee, fruits, and native rice cakes. Through them, medicine, food, money were smuggled to the other prisoners.... The Escodas aided not only the American and Filipino prisoners of war but also the American and Allied internees in Sto. Tomas and at Los Banos.... All along Mr. Escoda worked with the intelligence operatives of the 'guerrillas' and in June, 1944 he 'sailed' with Major General Vicen te Lim and others. The group was apprehended by the Japanese and were later brought to Fort Santiago. Two months later Mrs. Escoda was also taken prisoner to Fort Santiago...." (Signed) Domingo C. Bascara (Continued on page 24) * * * * I I I I i I I i I I i I Ed. A. Keller & Co., Ltd. General Importers & Insurance Agents 302 ~Ayala Bldg. (3rd. floor) Manila P.I. Agents for: AMERICAN LEAD PENCIL CO., HOBOKEN, N. J. AMERICAN SAFETY RAZOR CORP., BROOKLYN, N. Y. THE COLEMAN LAMP & STOVE CO., LTD. TORONTO & CHICAGO ETERNA WATCH COMPANY, GRENCHEN SWITZERLAND S. C. JOHNSON & SON, INC. RACINE, WISC. THE MAGGI COMPANY, KEMPTAL SWITZERLAND MILES LABORATORY, INC. ELKHART, IND. PIERCE WATCH COMPANY, BIENNE SWITZERLAND E. R. SQUIBB & SONS, NEW YORK THE WANDER COMPANY, CHICAGO General Agents for: FRANKLIN FIRE INSURANCE COMPANY OF PHILADELPHIA PHOENIX ASSURANCE COMPANY, LTD. OF LONDON SAMARANG SEA & FIRE INSURANCE CO., LTD., SAMARANG, N. I. SWITZERLAND GENERAL INSURANCE CO., LTD., ZURICH, SWLD. INSURANCE COMPANY OF NORTH AMERICA PHILADELPHIA, U.S.A. ulnderwvriting FIRE MARINE - MOTORCAR- INSURANCE WORKMEN'S COMPENSATION - I - -------- 8 The American Chamber of Commerce Journal December, 1945

Page  9 .i.iX.j.~.~,. ':~ i~i~~.. 1 Tony Escoda LET US REMEMBER The Esoodas, Tony and Josefa, had an unusual gift for friendship. Before the war, their friends, not only American but of all nationalities, were legion. These friends were attracted to them not by their wealth, not by their power, for they possessed little of either, but by the warmth and sincerity of their personalities, the honesty that characterized their expression of opinion, the generosity with which they constantly gave themselves and what they had to their friends. The host of those who knew these two as friends were shocked, deeply shocked, by the news of their fate. But the shock was not an unexpected one. It was not a surprise. It would rather have been a surprise if they had survived. Flor their friends knew that Tony and Josefa were people who could not possibly survive for Iong under a regime like that of the Japanese. They were people who objected always to wrong. They were people who could not see suffering without doing all in their power to relieve it. They were people who above all could not stand by indifferent and inactive while their friends were undergoing the privatiors and misery of Japanese prison camps. They were people who believed in and practiced the principles of Christian living and of democracy. For all these reasons they were inevitably people whom the Japanese The American Chamber of Commerce Journal December, 1945 THE ESCODAS " military police could not possibly tolerate, people who were doomed from the beginning because they were what they were and would not (perhaps could not) change. Exactly when and where these two met their deaths have not yet been determined, and will probably never be known. Mrs. Florence Ebersole Smith, who, was a prisoner of the Japanese military police in Bilibid during October and November, 1944, has toi'd the writer that she caught a. glimpse of Tony an November 23, 1944. First she heard his name called out by the Japanese guard along with the names of others in his group, including General Lilr, and from her cell she managed to catch a fleeting glimpse of Tony as the party passed down the corridor of the prison. She knew that they were later returned to their cells. On the morning of November 27th, she heard the names called out again, but she was unable to see any members, of the party. The next day she was transferred to the Women's Prison at Mandaluyon and learned nothing more of their fate. And nothing more, of a specific nature, is known of Tony Escoda. Josefa Llanes-Escoda Until' August of this, year, it was generally believed that Josefa Escoda lost her life in Manila, probably during the terrible days of massacre that followed the landings in Lingayen. All that was definitely known was that she was a prisoner, of the Japanese military police and was ailive in Manila in the early part of January, 1945. Recently it has been learned that the Japanese took a considerable group of political prisoners with, them up north. A member of that group who survived and finally made his way back to Manila brought the news that he had seen Josefa in the same group, in the province of Nueva Vizcaya. But this information has not been confirmed. The only evidence of her death lies in the fact that she has nost been found, and in the knowledge of the nature of her guards. But this evidence can hardly be questioned at this date. Josefa and Tony Escoda were Filipinos. They were not the only Filipinos who, at the risk of their own safety, responded to the urgent need of the thousands of Americans in prison camps in the Philippines. It (Continued on page 31) 9

Page  10 THE COMMERCE L Published Monthly in Manila, Philippines The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor H. A. Linn, Business Manager Entered as second class matter May 25, 1921, at the Post Office at Manila, P. I. Subscription rates: One year in the Philippines, P5.00; United States, $5.00 U. S. Currency. American Chamber of Commerce of the Philippines Directors S. F. Gaches, President J. L. Headington A. Bellis, Vice-President C. M. Hoskins J. Cotton P. A. Meyer E. Byron Ford PAUL V. McNUTT One of the important questions in our minds after liberation was "Who will be our next high commissioner?" Would that all questions confronting us could be answered as happily as that one! The selection of Mr. McNutt as the post-war U. S. High Commissioner brings comfort and satisfaction to the hearts of Filipinos and Americans (Republicans and Democrats). We all remember him as a true American, capable, friendly, tolerant, and intelligent,-a first rate exponent in word and action of true democracy. When he left, we were sorry to see him go. Now that he is back, we welcome him most warmly, confident that the problems before him during the process of re-building a nation (far more difficult than those confronting him in former days) will be handled with a frank sincerity and sympathetic understanding that will win him an enduring place in Philippine history. THE SHANGHAI EVENING POST AND MERCURY Liberation from internment brought many, yes, many surprises to each freed internee. Some pleasant, some unpleasant. Among the very pleasant surprises, the Shanghai Evening Post and Mercury occupies a conspicuous place. An American paper, its fearless presentation of unpalatable news, and its forthright editorial policy, made it a particular subject for Japanese attention long before that "date which will live in infamy." Newspapers have been known to carry on in spite of sudden, disastrous loss of plant and equipment. Some have even been known to carry on (for a time) when their reading public had disappeared. But in this case (for perhaps the first time in journalistic history) we have a newspaper that loss of plant, equipment, and reading public failed to down. Driven out of Shanghai, the Evening Post and lMercury quickly reappeared as a weekly in New York, with a special' edition published in Chungking. And as quickly renewed its fight, in a dif ferent phase, against the Japanese menace. Where it found plant and equipment, we do not yet know (probably C. V. Starr, the chairman of the board of directors had something to do with it). But its new reading public was soon found among the many people in America who had personal or business interests in China, in Japan itself, in Malay, in French Indo-China, in the Philippines. For in its new role, the Evening Post and Mercury became the paper, not of Shanghai alone, but of all the Far East. So it was that during the long, dark days of 1942, 1943, 1944 we internees (who in our ignorance referred to ourselves as the "Lost Tribes of Sto.Tomas"), unable to speak for ourselves, continued to have in New York a voice, strong, clear, and persuasive that spoke for us. Now that we know of the activities of this splendid paper during the years of our ignorance and helpl'essness, we hasten to express our appreciation and gratitude with deepest sincerity to those individuals responsible for its success. Among whom are at least two exManilans, Randall G'ould and Hy Merriman. GIVE US IMPORTS! The Philippines today is in urgent need of imports of all kinds. Her urgent need is reflected in the prevailing "black market" prices for all types of imports. She is willing to pay good prices for such imports. And, which is more important from the American exporter's point of view, she is able to pay good prices. When the American army landed in Leyte, the Philippines began exporting. But to the present time she has been practically unable to import. Ever since that day, she has been exporting-every peso a Filipino laborer has received from the American army or navy has been an "export" peso from the point of view of Philippine economy. Every peso paid by an American government agency in rentals or in purchases, has been an export peso. Every purchase made by a G. I. has represented a Philippine export. With the meagre data at hand, it is impossible to estimate the amount of Philippine exports during the past year, but that they have been large is certain. There can be no doubt that there has been a large and unnatural balance of trade "in favor" (as some economists call it) of the Philippines. Nor can there be any doubt that this has been one of the important factors in creating today's inflationary prices which characterize local as well as imported products. For four years, the Philippines has been denied imports. We say four years, and we mean four years. Her need is proportionately great. She is more than able to pay attractive prices for her imports. She must be granted them, or she will be choked by the heap of currency her exports are piling up around her. BLACK MARKET PROBLEMS IN THE PHILIPPINES One day recently a neighbor, an old Filipino lady, was fortunate enough to find an electric light bulb for sale in the market. The price was P5, and she paid it (not gladly, but willingly). On the same day, by going to the office of the importer, she could have purchased a similar bulb for 49 centavos. As it happened, she didn't know it; and even if she had known, transportation difficulties probably would have prevented her taking advantage of her knowledge (for she was an old lady). 49 centavos was the controlled price to which the importer was limited in making his sales. P5 was the black market price which this consumer was willing to pay. (Contitenued on pagye 12) 10 The American Chamber of Commerce Journal December, 1945

Page  11 L PHILIPPINE BANK OF COMMUNICATIONS (Incorporated under the Laws of the Philippines) 434 Dasmarinias MANILA, PHILIPPI NE S * With correspondents throughout China and in the principal cities of the world. Every description of banking and exchange business transacted. Contact with Chinese business interests and special facilities can be arranged through our principals in China. ii IL =1 "LET'S GET STARTED" ~he manila C inmen EuITORIAL & UUSINEIfSI FFICE.S 711 CALEtRC, MASILA - - The American Chamber of Commerce Journal December, 1945 11

Page  12 Black Market Problems... (Continued from page 10) This is probably an extreme case (at least we hope it is) but it illustrates a condition that we believe is fundamentally wrong. In its essence the illustration is typical of Manila's import business today. The importer is restricted by a price formula that allows him what presumably is a normal range of profit on the individual item sold. But his merchandise quickly finds its way to the black market, and the ultimate consumer pays the black market price. Generally speaking, the difference between the two prices is! enormous, and unless something is done, will continue to be enormous until the present trickle of imports finally builds up to a more normal flow. The imposition of unrealistic ceilings on the importer under present conditions in the Philippines does little to help the ultimate consumer, and we fear has other effects that are far from desirable. For one thing, we find that importers today are selling their merchandise at retail prices. The amount of merchandise received is meagre. Handling expenses and overhead charges are high. Costs per item handled are consequently so excessive that the importer must receive the permitted retail prices for his articles in order to show a reasonable and normal rate of profit on his operations. So the importer, who is normally a wholesaler, is now forced to be a retailer also. In this capacity, he valiantly tries to spread out his sales so that they will truly be retail sales made direct to consumers. But in this (with no rationing system in effect) he is successful' only to a small degree, and the "buy and sell" operator reaps the real profit that lies between the controlled price and the "market" price. The effect is to eliminate the genuine retailer, and to support excessive prices to consumers instead of weakening them. So long as there remains the tremendous gap between legal prices and black market or realistic consumer prices, the "b. & s." artist will remain with us as a serious obstacle to the return of normal conditions of trade and prices. The imposition of unrealistic price ceilings is furthermore a direct incentive for hoarding. Here is an imported article for which the importer can charge a ceiling price of P1. George de la Cruz (or Juan Smith) knows that the black market price is P5.00 (such a discrepancy is not unusual). He doesn't need the article for his personal use, but the importer can't know that. For all he knows, George is personally in need of half a dozen which he consequently sells to him for P6. And George proceeds to re-sell them one by one to genuine consumers at the highest possible prices, which is the hoarding technique, and tends to further stimulate prices that are already too high. The imposition of unrealistic ceil'ing prices on importers operates directly to deprive the government of much-needed revenue from the sales tax. This tax is collected only on the first sale. If importers were permitted to make these first sales at prices which more nearly approximate the "value" of his merchandise in this market, the income of the government from the sales tax would immediately show a gratifying increase. Certainly that portion of this tax collected on sales of imports is under present conditions a "painless" tax. Furthermore, it is easily collected. Revenue from that source could be tremendously increased almost overnight. What to do about this situation? Remove all price controls? By no means. Under abnormal circumstances, price controls are absolutely necessary. But the control prices should be calculated on the basis of black market prices, which are easily ascertainable. Ultimate consumers generally (and it is for their benefit that prices are controlled) would definitely pay less if the margin between black market and control prices were reduced sufficiently to discourage the hoarder and the "b. & s." operator. Normal retail trade would be re-established quicker. And the government's income would be improved. Would the importers' profits be too great? We wonder,-after these 4 years. Surely, a brief period of high profits for the importer (and the American exporter and manufacturer) would not be such an evil as the hoarder and the "b. & s." operator. I. * -, A- *....*- ig?^ Manila Trading & Supply Co., Port Area I.;,. -- COMMONWEALTH INSURANCE COMPANY SORIANO BUILDING FIRE * MARINE MOTOR CAR 1 INSURANCE and BONDING WARNER, BARNES & Co., Ltd. GENERAL MANAGERS A. SORIANO y CIA. GENERAL AGENTS -- 12 The American Chamber of Commerce Journal December, 1945

Page  13 Education Begins Again 11 a I n I A Brief Report on Philippine Schools by GILBERT S. PEREZ The author is one of the few Americans still fil- tion. Liberation from Sto. Tomas Internment Camp ling an active role in the Philippine public school sys- meant for this ardent educator the chance to resume tem. For many years before the war, he was the head without further delay his job of training young Filiof vocational education work in the Bureau of Educa- pines for work. The Philippine schools have suffered very heavy losses during the war and as communications with the outlying provinces are opened up there is not a day when the Department of Instruction does not receive new reports of additional losses of buildings and equipment. There are three main types of losses and damages. In the first group are the losses due to destruction of building and equipment by the 'USAFFE forces in their retreat before the onslaught of the enemy; the second group includes the destruction and looting by the Japanese and by irresponsible elements during the period of occupation and finally the destruction of buildings and equipment by the bombing and shelling of the American forces during the liberation of the Philippines. In the smaller communities losses from looting are not necessarily permanent because much of the looted material has been returned. When a school in a small community was looted by people living in the community, it was not possible for them to do this without the knowledge of the people of the barrio. When the barrio schools were reopened, public opinion, led by the school children, who seem to be all eyes when it comes to detecting missing school property, practically forced looters to return to the school the looted tables, desks, and building materials. Usually they were returned with the statement that they were not "looted" but kept "in trust" in order that they would not fall into the hands of the hated Japanese soldiers. In large communities where loot may be very easily concealed and where public opinion may be ignored, the schools were not so fortunate; although in many cases, dishes, pots, and other items of home economic equipment unostentatiously found their way back to the home economics shelves. We do not know the system which the pupils use in effecting the return of looted property but their methods seem to work very efficiently. As the school building was generally the largest and the strongest buil'ding in provincial towns, it was invariabl'y selected as the headquarters for the Japanese garrison and as the Japanese soldiers had little or no respect for the property rights of others, they began to use the school furniture for firewood. As the supply of furniture was depleted they began to use the lumber in the walls and ceiling for the purpose of cooking their meager rations of rice and salted radishes. In Pampanga Agricultural School, when the soldiers began to use the school furiniture for fuel the principal thought that he could save the furniture by providing the garrison with nicely bound sticks of firewood. Th Japanmese soldiers appreciated this thoughtfulness, carted away the convenient bundles to their bivuoac camp, and continued to use the furniture for firewood. When the American forces returned to the Philippines and some of the garrisons had to seek refuge in the mountains they usually preceded their departure with an orgy of looting and burning. The garrisons that remained in the schoolhouses were good objectives for American bombers so that the buildings which had till then been spared by the Japanese fared no better than the others. The town of Tarlac had one of the best school centers in Central Luzon, consisting of large concrete buildings for the high school, trade school, and elementary school'. All of these buildings were wrecked by the Japanese who had been using them as garrisons for their troops. Only the wooden home economics building escaped complete destruction. The buildings, plants, and equipment of agricultural and trade schools are more elaborate and costly than is true of ordinary high schools, and it is of interest to know how some of these vocational schools fared. The Central Luzon Agricultural School at Mufioz is the largest school of this type in the Philippines and although it escaped with comparatively little damage the war losses in this school alone reach the staggering total of P535,013.45. Heaviest losses were incurred in burned, destroyed, or looted buildings, roads, parks, and bridges; stationary engines and machinery; farm implements and equipment; work animals and livestocks; and standing and stored palay. All during the occupation the teachers and students at Mufioz who were seemingly cooperating with the Japanese were in reality an active guerrilla group in constant communication with the American and FiVipino forces and it was due to the participation of this group of teachers and students in the fighting at Muioz that some of the best buildings escaped shelling and bombing. The Japanese garrison did not have time to set fire to all of the buildings and there was no necessity for bombing and shelling the buildings indiscriminately in the advance of the American troops to, San Jose. When the large concrete hospital building was about to be shelled because a group of Japanese were entrenched in back of this building, the principal, who was at the same time a guerrilla, requested that the building be spared and assured the American officer in commrand that his guerrilla group of teachers and students were fully able to get the enemy out of their holes. They got them all and saved the building. The only buildings destroyed were the large wooden dormitory, the superintendent's and principal's houses, the cine building, and the property building all of which were razed to the ground by the Japanese during the early days of the occupation. Several students' cottages in the school barrio have only their main posts and roofs standing, most of the lumber having been used by the Japanese for fuel. (Continued on page 31) The American Chamber of Commerce Journal December. 1945 13

Page  14 President Truman and Philippine Problems The following excerpts from recent directives issued by President Truman in the form of letters and memorandums were selected by the United States Information Service in the Philippines. Taken together, they may serve as a guide to the President's Philippine policy. i!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ SOCIAL JUSTICE (To the High Commissioner of the Philippines) "In the provinces near Manila,thousands of sharecroppers organized some years ago to demand a more equitable division of the product of their labor. For several years there was no effective solution of the problem. "During the war the tenants organized a guerrilla army which reportedly did good work against the enemy. After the enemy was defeated in their localities, they did not disband and today they constitute a special problem which threatens the stability of the government. "On the other hand, their legitimate claim to fair treatment and the assistance they rendered in resistance to the enemy require that they be not deal't with in a ruthless manner. "I therefore request you to order a prompt investigation of agrarian unrest in the Philippines with the cocperation of the Commonwealth government, and to recommend the remedies or reforms which ought to be.taken by the Commonwealth government and by the United States government." ALIEN PROPERTY '(To the Alien Property Custodian) "The United States Army has found and taken custody of considerable valuable property belonging to enemy nationals in the Philippines. This enemy property includes agricultural leaseholds held through 'dummies.' "It is desirable that all property in which the enemy has or had interest should pass under the civil control of the United States government which is responsible for the custody under the usually accepted terms of International law. "I therefore direct that the Alien Property Custodian vest title in all enemy property in the Philippines and make lawful disposition of it. Should these operations extend beyond the date of independence I shall endeavor to arrange by treaty, or otherwise, for the completion of the process of vesting and liquida-tion." COLLABORATORS (To the Attorney? General) "While the mass of the Filipino people and many of their leaders remained staunchly loyal during invasion and rendered invaluable assistance to arms, it is necessary to admit that many persons served under the puppet government sponsored by the enemy. "Some of these, especially those engaged in health and educational work, remained at posts of duty with an evident intention to sustain the physical and cultural welfare of their people. Others of the clerical and custodial services continued in office in order to earn their accustomed livelihood and participated in no way in enemy policy. "But, regrettably, a number of persons prominent in the political life of the country assisted the enemy in the formulation and enforcement of his political policies and spread of his propaganda. Others in the field of trade and finance seized upon occasion to enrich themselves in property and money at the expense of their countrymen. "Reports have appeared in the press which indicate that a number of persons who gave aid and comfort to the enemy are now holding important offices in the Commonwealth Government. Reports further indicate that the Commonwealth Government is only beginning to investigate, charge, and try the offenders. "It is essential that this task be completed before the holding of the next Commonwealth general election. Considering that disloyalty to the Commonwealth is equally disloyalty to the United States, I request that you send experienced personnel to the Philippines to discover the status and to recommend such action as may be appropriately taken by the United States. S u c h recommendations should be made through the United States High Commissioner to the Philippine Islands. "I am further requesting that the secretaries of War and Navy direct the staff of their intelligence sectiocns to cooperate with you and make available to you all records and evidence bearing on this important problem. Representatives of the Federal bureau of Investigation assigned to the Philippines should be directed to report through the United States High Commissioner in connection with this and other operations in the Philippine Islands." LAW AND ORDER (To the Secretary of War) "As a result of prolonged enemy occupation of the Philippines, the law enforcement agencies of the Commonwealth Government were seriously disorganized. Bearing in mind the fact that the War Department was responsible originally for the organization of the Philippine Constabulary, which had such an excellent record prior to the war, I believe that the War Department should assist in every possible way by the assignment of officers and men and the transfer of necessary equipment in re-organizing the constabulary on a non-military basis. "President Osmefia has advised me that the War Department has. already been of assistance in this task and that considerable progress has been made by the Commonwealth Government. Both he and I feel, however, that continued assistance until the re-organization is completed would be helpful. "I ask that this continued assistance be extended to the Commonwealth Government so that law and order may be fully restored in the shortest possible time, and that you submit a report to me as soon as a program has been formulated." EMERGENCY CURRENCIES (Memorandum to the Secretary of The Treasury acnd the Secretary of War) "It is my understanding that due to a shortage of legal currency in certain areas in the Philippine Islands early in the war, and continually thereafter until the re-occupation of the islands by our forces, a considerabl'e quantity of emergency currency was issued, some by properly authorized officers of the United States Government and some by the representatives of the Philippine government. It would appear that to the extent that this currency was used. either directly or indirectly for the prosecution of war, its redemption is a responsibility of the United States government. "I request that the War and Treasury Departments make a careful analysis of this situation and submit recommendations as to the necessary 14 The American Chamber of Commerce Journal December, 1945

Page  15 steps which should be taken to discharge the obligations that are properly the responsibility of the United States government. Any arrangement proposed for the redemption of this currency should include provisions designed so far as possible to avoid any windfall to speculators." JAPANESE CURRENCY To The Secretary of The Treasury "During the period of their military invasion of the Philippines, the Japanese issued an unbacked fiat peso and tried unsuccessfully to force its parity with the legitimate Philippine Peso. The issue was so limited that it came to be worthless, and upon our landing in Leyte it was officially and quite properly declared not to be legal tender. "However, during the invasion period it had a rapidly declining value as a medium for local trade, and numerous contracts which involved the. enemy currency were settled or entered into. While it would be against the public interest to validate completely these contracts and settlements, a measure is needed to serve as a standard for judgments between debtors and creditors. "Since you are represented in the Philippines through a mission of the Foreign Funds Division, I request that you cooperate with the High Commissioner and the Commonwealth government in drawing up a schedule showing the relative trend of purchasing power and exchange rates of the Japanese Philippine Peso -during the period of invasion." SURPLUS PROPERTY To The Surplus Property Administrator "Prolonged enemy occupation and active warfare in the Philippine Islands have left in their wake a tremendous problem of relief and rehabilitation. It seems apparent there must be large supplies! of surplus government property now available which could be used to great advantage in the Philippines in the program which must be undertaken Such items as construction equipment are badly needed. "Where such supplies can be used directly by the Government of the Philippine Commonwealth, I believe this government should make the supplies available without cost to the Commonwealth. It might perhaps be desirable to arrange transfer on such terms as would prevent the property from being later offered for sale to the general public. "Since there is at present no legal authority to effect such transfer, I believe we should seek such authority." PENSIONS To The Administrator Of Veterans Affairs "In connection with a general program of re-establishment of orderly government in the Philippine Islands and discharge of just obligations of the United States government therein, I request that the veterans administration make a careful analysis of all phases of past and current benefits payable in the Philippine Islands to American and Filipino veterans, and submit to me at the earliest prossible date a report which should be accompanied by recommendations for any new legislation which may be required." BANKING (To The President Of The Export Import Bank) "In connection with the rehabilitation of the Philippine Islands and the restoration of the normal economic life of the islands, I believe that the Export Import bank should participate in this program. It should it seems to me, be possible to work out a program to operate in the islands on a purely business basis which would be of great assistance in restoring normal economic conditions. "May I have your comment on this (Continued on page 21) l -~ -- - - -/r~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I KOPPEL (PHILIPPINES) INCORPORATED RAILWAY EQUIPMENT, MACHINERY & SUPPLIES Exclusive Dealers of PRESSED STEEL CAR CO., INC. CATERPILLAR TRACTOR CO. JOHN DEERE PLOW CO. ATHEY TRUSS WHEEL CO. KILLEFER MANUFACTURING CO. IOWA MANUFACTURING CO. JOHN A. ROEBLING'S SONS CO. DE LAVAL PACIFIC CO. PENNSYLVANIA i "y R. G. LeTOURNEAU, INC. LaPLANT-CHOATE MFG. CO. WILLAMETTE HYSTER CO. LINK-BELT SPEEDER CORP. AMERICAN MACHINE & FDRY. CO. COOKTITE RING SALES COMPANY I PUMP & COMPRESSOR CO. ETC., ETC. Temporary office: 123 MENDOZA STREET, QUIAPO MANILA Branches: ILOILO CEBU BACOLOD II LI The American Chamber of Commerce Journal December, 1945. 15

Page  16 'I ~ ~I.~ C~ ~~ / ~:'~'~ .. ~ "~P:~~:..~'~ :~~'~~ ~. ~ r. ~~: 0. i ~:.~~~~~~~~~~...~: ~ ~. ~ ~:.~ r.~. ~;l:...::~~::~' ~ '...~.~.-.. ~~.........'~%.....i~:::'."~..... i::"..;:~55:~5~.~~;:Y '.~I~:i ~.~rs.....-.~:.~i'i~..:~ —f'':'~ ~.-. —:, ~~...~~..:'!!:2.:::i:!5:~;:~I~: ~.:.:.."~:.~. '::~.... ~.:'~-.::':.:~.:':::!'"!:.?.~.~.....'.' x:~e:..... 'r................. ":~~~~~~: ~::~: ~,-, ~: v;-:::::~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.....:~;.:.:..'..-". H '''~::!if::: ~.... ~":~~~~~~~~ ~ ':~"i~;: i Familiar Places Of Yesterday As They Look Today M. H. del Pilar Street, looking north, Gaiety Theatre at extreme right i.:-' -: L '' -1,I', I. k~~~~~~~~~. I 'C i':6~~ . j~~ i Dakota Street, looking south from Herran Street. San Marcelino Street, looking south from Herran Street The American Chamber of Commerce Journal December, 1945 16

Page  17 ... Tabacalera Tobacco Factory, Isaac Peral Street Storage Tanks at Philippine Refining Co. A Few Of Manila's Wrecked Industries Philippine Refining Company, Isaac Peral Street:........... I * '...i o ~~b;i I * K fvanila Electric Company, San Marceiino Street V ~~~~~~~s -...... ~"'~ ':2 '~;'~;'2" ~'~~~~'~~~:....:.... ~i~~~~~~~~~~~~!'.:'~~~~~~~~~~~~":......~ ~ ~ ' ~ ~ ~..4CY '~~sZ ~: ":'a~4~ '...., _..,..,......._..~.:.: ~ ~~~~~~~~~~~"- '~. ~.~:::~~..~.~....... Man ila Electric Compay a pany SanMarcelino Street I-> ~~~~~~~~~~~ aS *S~~~~~I-.~. Botica Boie and Philippine Education Co., Escolta Iee Abmerican Chamber of C e Journal!1 3 43e r r C o m e r c ~~~J;~~~R 8 6 ~~~ 8" a, -.~lani~a Daily Bulletin Reon Street ~ ~ ~ ~ i. i.:.;.:..~; ~ 4....~.s.. '*, '*-w ~.......:~.. ~...; 9 * H *t- *- l~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~;'i*;.:4;i-, S-'.'. ".2h}I A;;;;;.~:u:i.. _h:~ <@::~- iS.;? Manila Daily Bulletin Raon Stre.et Manilia Daily Bulletin, Raon Street 17

Page  18 SURPLUS PROPERTY ACT OF 1944 A reprint of pertinent sections of Public Law 457 (78th Congress) approved on October 3, 1944. Objectives Sec. 2. The Congress hereby declares that the objectives of this Act are to facilitate and regulate the orderly disposal of surplus property so as(a) to assure the most effective use of such property for war purposes and the common defense; (b) to give maximum aid in the reestablishment of peacetime economy of free independent private enterprise, the development of the maximum of independent operators in trade, industry, and agriculture, and to stimulate full employment; (c) to facilitate the transition of enterprises from wartime to peacetime production and of individuals from waMtime to peacetime employment; (d) to discourage monopolistic practices and ito strengthen and preserve the competitive position of small business concerns in an economy of free enterprise; (e) to foster and to render more secure family-type farming as the traditional and desirable pattern of American agriculture; (f) to afford returning veterans an opportunity to establish themselves as proprietors of agricultural, business, and professional enterprises; (g) to encourage and foster post-war employment opportunities; (h) to assure the sale of surplus property in such quantities and on such terms as will discourage disposal to speculators or for speculative purposes; (i) to establish and develop foreign markets and promote mutually advantageous economic relations between the United States and other countries by the orderly disposition of surplus property in other countries; (j) to avoid dislocations of the domestic economy and of international economic relations; (k) to foster the wide distribution of surplus commodities to consumers at fair prices; (1) to effect broad and equitable distribution of surplus property; (m) to achieve the prompt and full utilization of surplus property at fair prices to the consumer through disposal at home and abroad with due regard for the protection of free markets and competitive prices from dislocation resulting from uncontrolled dumping; (n) to utilize normal channels of trade and commerce to the extent consistent with efficient and economic distribution and the promotion of the general objectives of this Act (without discriminating against the establishment of new enterprises); (o) to promote production, employment of labor, and utilization of the productive capacity and the natural and agricultural resources of the country. (p) to foster the development of new independent enterprise; (q) to prevent insofar as possible unusual and excessive profits being made out of surplus property; (r) to dispose of surplus property as promptly as feasible without fostering monopoly or restraint of trade, or unduly disturbing the economy, or encouraging hoarding of such property, and to facilitate prompt redistribution of such property to consumers; (s) to dispose of surplus Government owned transportation facilities and equipment in such manner as to promote an adequate and economical national transportation system; and (t) except as otherwise provided, to obtain for the Government, as nearly as possible, the fair value of surplus property upon its disposition. Definitions Sec. 3. As used in this Act(a) The term "Government agency" means any executive department, board, bureau, commission, or other agency in the executive branch of the Federal Government, or any corporation wholly owned (either directly or through one or more corpora tions) by the United States. (b) The term "owning agency", in the case of any property, means the executive department, the independent agency in the executive branch of the Federal Government, or the corporation (if a Government agency), having control of such property otherwise than solely as a disposal agency. (c) T h e term "disposal agency" means any Government agency designated under section 10 to dispose of one or more classes of surplus property. * * * * (e) The term "surplus property" means any property which has been determined. to be surplus to the needs and responsibilities of the owning agency in accordance with section 11. S * * * (h) The term "person" means any individual, corporation, partnership, firm, association, trust, estate, or other entity. (i) The term "State" includes the several States, Territories, and possessions of the United States, and the District of Columbia. (J) The term "tax-supported institution" means any scientific, literary, educational, publichealth, or public-welfare institution which is supported in whole or in part through the use of funds derived from taxation by the United States, or by any State or political subdivision thereof. (k) The t e r m "veteran" means any person in the active military or naval service of the United States during the present war, or any person who served in the active military or naval service of the United States on or after September 16, 1940, prior to the termination of the present war, and who has been discharged or released therefrom under honorable conditions. Surplus Property Board Sec. 5. (a) There is hereby established in the Office of War Mobilization, and in its successor, a Surplus Property Board (hereinafter called the "Board"), which shall be composed of three members, each of whom shall be appointed by the President, by and with the advice and consent of the Senate, and shall receive compensation at the rate of $12,000 per annum. 18 The American Chamber of Commerce Journal 18-.December, 1945

Page  19 Regulations Sec. 9. (a) The Board shall prescribe regulations to effectuate the provisions of this Act. In formulating such regulations, the Board shall be guided by the objectives of this Act. (b) Regul'ations issued pursuant to subsection (a) may, except as otherwise provided in this Act, contain provisions prescribing the extent to which, the times at which, the areas in which, the agencies by which, the prices at which, and the terms and conditions under which, surplus property may be disposed of, and the extent to which and the conditions under which surplus property shall be subject to care and handling. (c) Each Government agency shall carry out regulations of the Board expeditiously and shall issue such further regulations, not inconsistent with the regulations of the Board, as it deems necessary or desirable to carry out the provisions of this Act. Designation of Disposal Agencies Sec. 10. (a) Except as provided in subsection (b) of this section, the Board shall designate oine or more Government agencies to act as disposal agencies under this Act. In exercising its authority to designate disposal' agencies, the Board shall assign surplus property for disposal by the fewest number of Government agencies practicable and, so far as it deems feasible, shall centralize in one disposal agency responsibility for the disposal of all property of the same type or class. (b) The United States Maritime Commission shall be the sole disposal agency for surplus vessels which the Commission determines to be merchant vessels or capable of conversion to merchant use, and such vessels shall be disposed of only in accordance with the provisions of the Merchant Marine Act, 1936, as amended, and other laws au thorizing the sale of such vessels. Declacration and Dispositionl of Surplus Property Sec. 11. (a) Each owning agency shall have the duty and responsibility continuously to survey The American Chamber of Commerce Journal December, 1945 the property in its control and to determine which of such property is surplus to its needs and responsibilities. (b) Each owning agency shall promptly report to the Board and the appropriate disposal agency all surplus property in its control which the owning agency does not dispose of under section 14. (c) Whenever in the course of the performance of its duties under this Act, the Board has reason to believe that any owning agency has property in its control which is surplus to its needs and responsibilities and which it has not reported as such, the Board shall promptly report that fact to the Senate and House of Representatives. Each owning agency and each disposal agency shall submit to the Board: (1) such information and reports with respect to surplus property in the control of the agency, in such form, and at such reasonable times, as the Board may (Continued on page 25) I Send Your Personal or Business Messages Via RCA * c~s asIt! TO ALL THE WORLD RCA COMMUNICATIONS, INC. INSULAR LIFE BUILDING PLAZA MORAGA-MANILA 19

Page  20 The Future of Philippine Exports by An EX-MANILAN The author of these brief comments is a former resident of Manila, where he lived and worked and observed the progress of events for 1/3 of a century. He was among the fortunate few residents of this country to be in America whenl the war began. The opt imism of his views is based on the presumption of course that the productive plant of the Philippines is intact and able to swing back into operation. This is regretably far from being the case. The productive plant of the Philippines is today in a condition of complete I ATKINS KROLL & CO., INC. R-209 AYALA BLDG. National City Bank MANILA * PREFABRICATED HOUSES * QUONSET HUTS * JENKINS SAFETY VALVES * PORTLAND CEMENT in Bags D.D.T. TECHNICAL INSECTICIDE POUND GOODS- REMNANTS UNDERSHIRTS & POLO SHIRTS ready made SEWING THREAD Soft finish in cones & Spools CHELSEA & EDGEWORTH A wreck, and little of it can even be salvaged. Before Philippine exports can follow the bright path described by the author of this article, oil refineries, tobacco factories, sugar centrals, etc. will have to be rebuilt. Labor forces wzill have to be re-assembled and re-trained. The transportation system will have to be completely restored-.for it does not exist today.......... The war has turned up nothing that comes to my attention, that might permanently have an adverse effect on Philippine exports. Some minor fibers have turned up, for cordage, but nothing comparable to abaca. Siome remarkable tales come from applied science, about substitutes for coconut oil, but the postwar demand for copra will probably be the largest ever known. If the Philippines arrive at independence, that will bring their cigar factories their first opportunity to advertise their cigars on a duty market in the United States, and sell' these cigars at the prices the future will be able to maintain. The war has brought the Philippines new employment and higher wage levels. This will expand the demand for rice until production, though greatly increased, will not be able to supply the market. Only the perennial' conundrum remains, sugar-what of Philippine sugar? As every reader knows, there are as many views of the future of Philippine sugar in the American market as there are mills to repair in Negros to turn out a shipment. But my view is this: Philippine sugar largely Filipinoowned will keep its place in the American market, regardless of whether it pays duty as the products of an independent Phil'ippines or not. An independent Philippines can expect to have to pay what Cuban sugar pays, to reach the American market. It will hardly be charged more than Cuba pays. There is a sugar producer in the Philippines who owns the land, owns the mill, and owns the ship that hauls the sugar to New York or San Francisco. That man is a wide-awake Filipino, or, in the case of one man at least, Cigarettes GOLD MEDAL FLOUR SOFTASILK CAKE FLOUR WHEATIES "Breakfast of champions" SOYBEAN FLOUR BEN-HUR PRODUCTS Coffee, Gelatines, Pudding & Spices LUNETA brand SARDINES PROMAR ABALONE Smoking Tobacco ) CALIFORNIA CONSERVING PRODUCTS: CHB & YOLO Tomato Catsup FRUIT PRESERVES & JELLIES PICKLES, SAUCES WORCESTERSHIRE and SOY, CIDER VINEGAR. CANNED FRUITS, ASPARAGUS, Tomatoes. ALL-PURE Evaporated and Condensed Milk. -~ ~ ~ ~ ~ ~~~~ ~ ~~~~~~~~~~ - -- - I 20 The American Chamber of Commerce Journal December, 1945.

Page  21 an American. The crop makes in twelve months or so. Some three crops mature while Hawaii or Java matures two at most. Good seed and good cultivation make the Philippine yield a high one per hectare. From three crops, as opposed to only two, in the run of three years, the higher net yield per hectare ought to cover long-voyage freight and duty charges, and leave Philippine sugar on a sound basis of steady profits. Under independence, should it come, such sugar interests as find themselves unable to meet the duty and survive, may liquidate to others who do survive. This should be effected, if ever desired, without forcedsale or confiscation. At the same time, centrals the least able, or least fitted by their capital arrangements to economize costs and meet the c. i. f. costs of duty sugar in the American market, should not stand in the way of other centrals fully able to make duty sugar at reasonable profit. Personally, I doubt that a single Philippine sugar central will not be able to continue in profitable operation on the duty basis, given due cooperation with its planters in the task of larger production per hectare. There is also the possibility that independence will' not be sought by the Philippines, their relations with the people of the United States have been improved immeasurably by the war, and the Philippines may prefer to prolong the old, and welltried, association that surely has Jearly every aspect of actual independence. But that is for Filipinos to say for themselves, so these remarks consider future Philippine sugar as a duty product in the Amrican market. I doubt that duty sugar from the Philippines has anything to fear seriously, in the American market. The good position of Filipino capital in the industry, from the field to mill and then to ship and insurance, leads to this conclusion. As I see it, therefore, the war leaves Philippine economy basically intact, provided inflation leaves the Filipino his land and the willingness to cuitivate his fields in the way his fathers did. That will be the basis for larger production, from a larger population, and will measure the growth of larger postwar imports, wholesale and retail commerce, and shipping and industry. I have no privy information from the gods, whether there will be harsh postwar slumps or not. Slumps are never badly felt in the Philippines anyway (save this damned curse of the Japanese incursions). My conclusion is that the young businessman who takes hold of the Philippines now in the way the business generation before him did, has as bright a future as he could askto go half-way. That means, to ease, and some considerable wealth. But I agree with Garet Garrett (writing of the Philippines fifteen years ago) that beyond the half-way point, the scope found in the United States is wanting in the Philippines. Halfway should be far enough for most men, however, and to that point the Philippines after the war ends may soon surpass all expectations. Pres. Truman... (Continued from page 15) suggestion, and in event that you feel that the bank is at present without legal authority to function in the Philippines, your suggestion as to steps that might be necessary to permit it to do so?" SHIPPING (To The Administrator Of The War Shipping Administration) "In connection with the rehabilitation of the Philippines and the restoration of tho normal economic life (Continued on page 22) LL GEORGE EDWARD KOSTER INCORPORATED ENGINEERING-CONSTRUCTION 841 LEPANTO-MANILA PRE-FABRICATED STRUCTURES COMMERCIAL FURNITURE APPRAISALS Principal Prewar Projects Designed and/or Built by Koster INC. LUZON STEVEDORING CO. BLDG. HEILBRONN CO. BLDG. RCA, RADIO STATION, MANILA DEE C. CHUAN MAUSOLEUM INTERNATIONAL HARVESTER CO. BLDG. SERUM & VAC. LABORATORY, ALABANG CALOOCAN GOLF CLUB NURSES' HOME, P. G. H. MANILA STOCK EXCHANGE HEACOCK DEPT. STORE (FURNITURE & FIXT.) MANILA ELECTRIC CO. RESIDENCE SWAN, CULBERTSON, & FRITZ, MGR'S RES. S. J. WILSON RESIDENCES (10 BLDGS.) QUEZON ELEMENTARY SCHOOL 8TH FLOOR, WILSON BLDG. DE LA RAMA S. S. CO. HEACOCK BLDG. EMBASSY APTS. TERMINAL BLDG. UNIVERSITY CLUB SCOTTISH RITE TEMPLE, COMMONWEALTH BUILDING MANILA TRADING CO. BODEGA BAGUIO COUNTRY CLUB QUEZON ELEMENTARY SCHOOL DE LA RAMA S. S. CO. PIROVANO RESIDENCE H. MARSMAN-POOL U.S. ARMY CAMP, LIMAY, BATAAN U.S. NAVY BASES, CAVITE & MARIVELES The American Chamber of Commerce Journal December, 1945 21

Page  22 Redemption of Philippine National Bank Notes On October 15, 1945, President Osmefna signed Commonwealth Act #688 (Senate Bill #6) which lifts the restriction placed on PNB notes by Executive Order #25, dated November 18, 1944. However such notes have to pass thru a certain amount of processing before resuming their function as legal tender. Holders of these notes (a considerable number of people no doubt) should pay particular attention to the following provisions of the act: 1. In order to be accepted as legal tender, the notes must be stamped or countersigned by the National treasurer or a provincial or municipal or chartered city treasurer. Notes not stamped or countersigned within the prescribed period will be null and void. 2. The notes presented for processing must be legally issued notes. That is, they must be identifiable as having been issued before January i, 1942. 3. Anyone presenting notes worth P500 or more must accompany them with a statement showing the serial number, and denomination of each I SQUIRES BINGHAM CO., INC. IMPORTERS-EXPORTERS * FIREARMS & AMMUNITION * MEN'S APPAREL * FISHING TACKLE * SPORTING GOODS * CONSTRUCTION MATERIAL * GEN. MDSE. * NEW YORK-MANILA X Wholesalers 8 Retailers 1002-6 R. HIDALGO, MANILA note. Also, the owner of the notes must submit a sworn statement declaring "the nationality, civil status, residence, occupation or profession of the said owner during the last four years; where, when and how the notes were acquired; that their acquisition was neither illegal nor illicit; that no subject.... of any enemy country.... has any interest or participation in said bank notes; that the alleged owner did not receive such notes as compensation or payment for military aid or service to the enemy or as remuneration for having given to the latter means and information which favored its military activities....; and that said owner has not presented any other note or notes of the Philippine National Bank to be stamped or countersigned in any other treasury office of the Philippines." 4. No definite time for the processing of these notes is established by the act, which merely states that this can be done "within a period of sixty days counted from, the twentieth day after the seal or stamp provided in Section 8 of this act shall have been received at the office of the treasurer concerned." 5. Stiff penalties are provided for violators of the provisions of this act, and for those who commit falsehood in their sworn statements -twelve years imprisonment or a fine of P12,000 (or both). Pres. Truman... (Continued from page 21) of the islands, I am very anxious that all possible steps, consistent with our obligations elsewhere, be taken to supply shipping to the Philippine Islands. "I would be glad to have a statement from you as to the plans of the War Shipping Administration and the amount lof tonnage which is expected to be available for Philippine trade, particularly in the near future." BLACK MARKET (To The Chairman Of The Reconstruction Finance Corporation) "The almost complete lack of consumers goods in the Philippinesgoods ordinarily imported from the United States-has brought about a serious price inflation and black market which cause great distress among the people. An excellent start has been made by the Foreign Economic. Administration in cooperation (Continued on page 32) The American Chamber of Commerce Journal December, 1945 22

Page  23 New Insurance Law The title of Commonwealth Act No. 697 (approved on October 15, 1945) is "An Act for the Rehabilitation. Liquidation, and Dissolution of Delinquent Insurers." The insertion of the word "rehabilitation" seems a bit unfortunate, as it may give a false idea of the nature of the act to those who have not read the act itself, but have only learned of it through sketchy references to its passage in the daily press. Usually when a law is passed for the purpose of "rehabilitating" an industry or a class of financial or commercial enterprises, it means that the government is providing positive help in some form or other for that indcustry or class of enterprises. And usually it is anticipated that when the process of rehabilitation is completed the industry or class of enterprises will emerge stronger, more efficient, and better able in every way to fulfill its functions in the economic organization of the country. But this is not the case with Commonwealth Act No. 697. It does not provide for "help" for insurance companies in any shape or form. Rather, it seems to warn insurance companies that they should "help" themselves, or take the consequences. And the anticipation seems to be that after "rehabilitation," instead of emerging stronger and more efficient, t h e companies rehabilitated will disappear entirely from the economic scene. Those interested in this question should familiarize themselves with the following provisions of this new law:1. Proceedings under this act are initiated by the insurance commissioner, who applies to the court of competent jurisdiction f o r an order to rehabilitate or liquidate a certain insurance company. At the same time, an injunction may be issued without notice by any judge of the court to stop all activities of the company until the proceedings are heard in court. 2. T h e insurance commissioner may initiate these proceedings if in, his opinion the insurer involved (a) is insolvent; or (b) has failed to obey his order to make good deficiencies in its capital or reserves; or (c) is in such condition that its further operations will be hazardous to its policyholders, creditors, or the public; or (d) has consented to such action. 3. After a full hearing of the case, the court shall either deny or grant the commissioner's application. 4. If the application is granted, the court issues an order to the commissioner "forthwith to take possession of the property of such insurer and to conduct the business thereof, and take such steps toward the removal of the causes and conditions which have made such proceedings necessary as the court shall direct." It is further specified that the commissioner assumes full title to all of the property, contracts, etc. of the company. Creditors' claims against the company are fixed "as of the date... of the order" to liquidate or rehabilitate. 5. The commissioner is empowered to appoint personnel to help him run the business of the company and to fix their compensationsubject to the approval of the court. Salaries are to be paid out of "the funds or assets" of the company. 6. The process of liquidating or dissolving insolvent insurance companies is described in considerable detail. GOOD/lIEAR GOODf*lEAR AUTO TIRES & TUBES TRUCK TIRES & TUBES AUTOMOTIVE ACCESSORIES BELTING, HOSE, PACKING SHOE SUPPLIES PACKING MATERIALS PRINTING SUPPLIES The Goodyear Tire & Rubber Co. of the Philippines, Ltd. I S. M. BERGER & CO., INC, 2219 Azcarraga MANILA, P. I. Exclusive Distributors for: Simplex Moving Picture Projection Equipments R.C.A. Photophone Theater Sound Systems "American" Theater chairs Theater-Supplies -- ii WILSON BLDG. MANILA, P. J. - The American Chamber of Commerce Journal December, 1945 23

Page  24 The Activities of the Escodas... (Continued from page 8) "When the Japanese came, the Escodas were immediately singled out and sought for service in the Japanese cause. They not only staunchly refused to align themselves with the Japanese, but at the same time they took a very active part in the service of the American cause. There are many Americans particularly prisoners of war alive today as a result of the efforts of the Escodas. In rendering the service they did, they took great risks for themselves and in fact were made to pay for what they did. First they were imprisoned under, torturous conditions, and later they were removed from the prison, presumably executed.... I consider it a privilege for me as an American to testify in behalf of the work done by the Escodas...." (Signed) Roy C. Bennett Editor and General Manager Manila Daily Bulletin * * * * "Both Mr. and Mrs. Escoda distinguished themselves in relief work for American and Filipino prisoners of war and for American internees held in concentration by the Japanese.... This mission was taken up by the Escodas voluntarily and in the discharge of their work they knew no off hours nor feared to face any risks. Their splendid spirit of service and their tireless initiative brought relief and comfort to prisoners of war and internees alike to the point that their names became known not only to all the men in whose interest they served but to the general community at large. Their activities in favor of Americans at Cabanatuan, Sto. Tomas, and Los Banios made them so conspicuous that they were finally detained by the Japanese military police in 1944.... If the work of the Escodas were to be weighed by the same standards obtaining in the military service, they would without the slightest doubt be entitled to the highest decoration within the power of man to award. For that meritorious work they made themselves creditors to the respect and gratitude of all men and women who had the honor to suffer concentration for the cause of democracy in the Orient." (Signed) Jose Razon, Major, Infantry * * * * "Mr. and Mrs. Escoda both worked untiringly, in spite of many obstacles, and always in danger of their own lives.... I am sure that when the facts of their case become known, many posthumous honors and decorations will be given." (Signed) Sister M. Trinita Superior, Mary Knoll Sisters INHELDER ____ INCORPORATED 4th. FLOOR SORIANO BUILDING MANILA Dealers in: PHARMACEUTICAL SUPPLIES INSTRUMENTS GROCERIES- TEXTILES A CONSULATES: Argentina-Ramon Fernandez, 259 General Solano Britain-Ronald Finley, Ayala Building Chile-A. Schick, 112 Rodriguez, Pasay China-L. Tuam, 113 Dimasal'ang Denmark-Niels N. Nyborg, 62 Legarda or c/o San Miguel Brewery France -. Gaston Willoquet, Wilson Bldg., Juan Luna Guatemala-Jose Garcia Alonzo, 2050 Oroquieta Mexico-Alfredo Carmelo, 47 Crixton Hill, Sta. Mesa or 2047 Azcarraga Netherlands-Heinreich Bos, 136 Buencamino Nicaragua-Carlos Gelano, 309 San Gregorio, Paco Norway-L. Welhaven, 3 Fernando Rein, Pasay Peru-Leopoldo Melian, 407 Park Ave., Pasay Portugal-Carlos de los Nunies, 388 Sta. Mesa Salvador-Manuel Perez Rosales, 2050 Oroquieta Spain-Emilio Blanco, c/o San Sebastian Church Sweden-H. O. Jensen, 31 Loring, Pasay Switzerland-Dr. A. Sidler, Wilson Building United States-Paul' P. Steintorff, 1570 Arlegui BANKS: Bank of the Philippine Islands Insular Life Building Chartered Bank of India, Australia & China Wilson Building China Banking Corporation China Bank Building Hongkong & Shanghai Banking Corporation Juan Luna National City Bank of New York Nat'l. City Bank Building Philippine Bank of Commerce State Building Philippine Bank of Communications 430 Dasmarifias Philippine National' Bank Phil. Nat'l. Bgnk Building Philippine Trust Co. Plaza Goiti Peoples Bank & Trust Co. 605 Dasmarinas 24 The American Chamber of Conmerce Journal December, 1945

Page  25 Surplus Property Act... (Continued from page 19) direct; (2) such information and reports wi!th respect to other property in the control of the agency, to such extent, and in such form, as the Board may direct and as the agency deems consistent with national security. (d) When any surplus property is reported to any disposal agency under subsection (b) of this section, the disposal agency shall have responsibility and authority for the disposition of such property, and for the care and handling of such property pending its disposition in accordance with regulations prescribed by the Board. Where the disposal agency is not prepared at the time of its designation under this Act to undertake the care and handling of such surplus property the Board may postpone the responsibility of the agency to assume its duty for care and handling for such period as the Board deems necessary to permit the preparation of the agency therefor. (e) The Board shall prescribe regulations necessary to provide, so far as practicable, for uniform and wide public notice concerning surplus property available for sale, and for uniform and adequate time intervals between notice and sale so that all interested purchasers may have a fair opportunity to buy. Disposal to Local Governments, and Nonprofit Institutions Sec. 13. (a) The Board shall prescribe regulations for the disposition of surplus property to States and their political subdivisions and instrumentalities, and to tax-supported and nonprofit institutions, and shall determine on the basis of need what transfers shall be made. In formulating such regulations the Board shall be guided by the 'objectives of this Act, and shall give effect to the following policies to the extent feasible and in the public interest. (1) (A) Surplus property that is appropriate for school, classroom, or other educational use may be sold or leased to the States and their political subdivisions and instrumentalities, and tax-supported educational institutions, and to other non profit educational institutions which have been held exempt from taxation under section 101 (6) of the Internal Revenue Code. (B) Surplus medical supplies, equipment, and property suitable for use in the protection of public health, including research, may be sold or leased to the States and their political subdivisions, and to hospitals or 'other similar institutions not operated for profit which have been held exempt from taxation under section 101 (6) of the Internal Revenue Code. (C) In fixing the sale or lease value of property to be disposed of under subparagraph (A) and subparagraph (B) of this paragraph, the Board shall take into consideration any benefit which has accrued or may accrue to the United States from the use. of such property by any such State, political subdivision, instrumentality, or institution. (2) Surplus property shall be disposed of so as to afford public and government institutions, non-profit or tax-supported educational institutions, charitable and eleemosynary institutions, non-profit or tax-supported hospiltals and similar institutions, States, their political subdivisions and instrumentalities, and volunteer fire companies, an opportunity to fulfill, in the public interest, their legitimate needs. (b) Under regulations prescribed by the Board, whenever the Government, agency authorized to dispose of any property finds that it has no commercial value or that the cost of its care and handling and disposition would exceed the estimated proceeds, the agency may donate such properly to any agency or institution supported by the Federal Government or any State or local government, or to any non-profit educational or charitable organization, or, if that is not feasible, shall destroy or otherwise dispose of such property, but, except in the case of property the immediate destruction of which is necessary or desirable either because of the nature of the property or because of the expense or difficulty of its care and handling, no property shall be destroyed until thirty days after public notice of the proposed destruction thereof has been given (and a copy of such notice given to the Board at the beginning of such thirty-day period) and an attempt has been made within such thirty days to dispose of such property otherwise than by destruction. (c) No airport and no harbor or port terminal, including necessary operating equipment, shall be otherwise disposed of until it has first been -offered, under regulations to be prescribed by the Board, for sale or Pease to the State, political subdivision thereof, and any municipality, in which it is situated, and to all municipalities in the vicinity thereof. (d) Whenever any State or political subdivision thereof, or any State or Government agency or instrumentality certifies to the Board that any power transmission line determined to be surplus property under the provisions of this Act is needful for or adaptabie to the requirements of any public or cooperative power project, such line and the right-of-way acquired for its construction shall not be sold, leased for more than one year, or otherwise disposed of, except as provided in section 12 or this section, unless specifically authorized by Act of Congress. * * * * (f) The disposal of surplus property under this section to States and political subdivisions and instrumentalities thereof shall be given priority over all other disposals of property provided for in this Act except transfers under section 12 [To federal agencies]. Disposition by Owning Agency Sec. 14. (a) Subject only to the regulations of the Board with respect to price policies, any owning agency may dispose of any property for the purpose of war production or authorize any contractor with such agency or subcontractor thereunder to retain or dispose of any contractor inventories for the purpose of war production. The Board may empower any owning agency, subject to the regulations of the Board, to authorize any contractor with such agency or subcontractor thereunder to retain or dispose of any contractor inventories for any other purpose which in the opinion of the Board is not contrary to the objectives of this Act. Where any agency takes possession of any contractor inventory from any contractor with the agency or subcontractor thereunder, such property shall be disposed of only in accordance with the provisions of this Act. (b) Subject only to subsection (c) of this section, any owning agency may dispose of(1) any property which is damaged or worn beyond repair; The American Chamber of Commerce Journal December, 1945 25

Page  26 (2) any waste, salvage, scrap, or other similar items; (3) any product of industrial, research, agricultural, or livestock operations, or of any public works construction or maintenance project, carried on by such agency; which does not consist of strategic minerals and metals, as defined in section 22. (c) Whenever the Board deems such action necessary to effectuate the objectives an d policies of this Act, the Board, by regulations, shall restrict the authority of any owning agency to dispose of any class of surplus property under subsection (b) of this section. Methods of Disposition Sec. 15. (a) Notwithstanding the provisions of any other law but subject to the provisions of this Act, whenever any Government agency is authorized to dispose of property under this Act, then the agency may dispose of such property by sale, exchange, lease, or transfer, for cash, credit, or other property, with or without warranty, and upon such ether terms and conditions as the agency deems proper: PROVIDED, HOWEVER, That in the case of raw materials, consumer goods, and small tools, hardware, and nonassembled articles, which may be used in the manufacture of more than one type of product, no extension of credit under this Act shall be for a longer period than three years. (b) Any owning agency or disposal agency may execute such documents for the transfer of title or other interest in property or take such other action as it deems necessary or proper to transfer or dispose of property or otherwise to carry out the provisions of this Act, and in the case of surplus property, shall do so to the extent required by the regulations of the Board. Dispositions to Veterans Sec. 16. The Board shall prescribe regulations to effectuate the objectives of this Act to aid veterans to establish and maintain their own small business, professional, or agricultural enterprises, by affording veterans suitable preferences to the extent feasible and consistent with the policies of this Act in the acquisition of the types of;uLrplus property useful in such en terprises. Dispositions in Rural Areas Sec. 17. The Board shall devise ways and means and prescribe regulations in cooperation with War Food Administrator providing for the sale of surplus property in such quantities in rural localities and in such manner as will assure farmers and farmers' cooperative associations equal opportunity with others to purchase surplus property: PROVIDED, HOWEVER, That in cases whe r e a shortage of trucks, machinery, and equipment impairs farm production, a program shall be developed by the Board in cooperation with the Agricultural Adjustment Agency whereby a reasonable portion of the surplus supply will be made available for sale in rural areas to farmers and farmers' cooperative associations. * * * * * * Title of Pzurchaser Sec. 25. A deed, bill of sale, lease, or other instrument executed by or on behalf of any Government agency purporting to transfer title or any other interest in property under this Act shall be conclusive evidence of compliance with the provisions of this Act insofar as title or other interest of any bona fide purchasers for value, or lessees, as the case may be, is concerned. Civil Remedies and Penalties Sec. 26. (a) Where any property is disposed of in accordance with this Act and any regulations prescribed under this Act, no officer or employee of the Government shall (1) be liable with respect to such disposition except for his own fraud or (2) be accountable for the collection of any purchase price which is determined to be uncollectible by the agency responsible therefor. (b) Every person who shall use or engage in or cause to be used or engaged in any fraudulent trick, scheme, or device, for the purpose of securing or obtaining, or aiding to secure or obtain, for any person any payment, property, or other bene fits from the United States or any Government agency in connection with the disposition of property under this Act; or who enters into an agreement, combination, or conspiracy to do any of the foregoing(1) shall pay to the United States the sum of $2,000 for each such act, and double the amount of any damage which the United States may have sustained by reason thereof, together with the costs of suit; or (2) shall, if the United States shall so elect, pay to the United States, as liquidated damages, a sum equal to twice the consideration agreed to be given by such person to the United States or any Government agency; or (3) shall, if the United States shall so elect, restore to the United States the property thus secured and obtained and the United States shall retain as liquidated damages any consideration given to the United States or any Government agency for such property. (c) The several district courts of the United States, the District Court of the United States for the District of Columbia, and the several district courts of the Territories of the United States, within whose jurisdictional limits the person or persons, doing or committing such act, or any one of them. resides or shall be found, shall wheresoever such act may have been done or committed, have full power and jurisdiction to hear, try, and determine such suit. (d) The civil remedies provided in this section shall be in addition to all other criminal penalties and civil remedies provided by law. Practice by Former Employees Sec. 27. No person employed by any Government agency, including commissioned officers assigned to duty in such agency, shall, during the period such person is engaged in such employment or service, or for a period of two years after the time when such employment or service has ceased, act as counsel, attorney, or agent, or be employed as representative, in connection with any matter involving the disposition of surplus property by the agency in which such person was employed, if such person during his employment with such agency ratified, approved, or authorized the disposition of surplus property pursuant to the provisions of this Act or recommend(Contivued on page 29) 26 The American Chamber of Commerce Journal December, 1945

Page  27 Imports Trickle In On August 21, 1945, the S. S. Bering (Everett Steamship Company, Agents) steamed quietly into Manila harbor. Her arrival' brought to an end the long period of complete stagnation in Philippine-American trade, for in her holds were the first commercial shipments to be received in the Philippines since December, 1941. The month of September witnessed the arrival of two more ships loaded with imports- the Memiphis City and the President Grant, both of which were handled by the American President Lines. By November Ist four more ships had arrived, bringing the total to 7 ships, listed herewith: Getz Bros. & Co. Go Hoc Hock Suy Hing Inhelder, Inc. International General Elec., Co. Ker & Co., Ltd. Korenblit Friedman Co. Lao Gan Loong Ah Whay Luzon Brokerage Co. Macondray & Co. Marcos Grocery Marsman Trading Co. Menzi & Co. Nestle's Mirk Products (Export) Inc. Philippine-American Drug Co. Philippine Liberty News Que Hoa Heng Reyes, Florentino Tan, Tomas Time, Inc. Wise & Co., Inc. Yang Kong & Co. Date Aug. 21 Sept. 8 Sept. 23 Oct. 3 Oct. 13 Oct. 18 Oct. 22 Ship Bering Memphis City Pres. Grant Wm. E. Borah Widea wake Red Rover Cour'ser Cargo 8,700 4,900 8,900 8,600 7,600 6,800 6,000 tons,,,,,,,, 7f,,,, Total Imports 51,300 tons The Courser was the first ship to bring cargoes from the East Coast of America. For the record, we give a few additional facts about our "first" postwar shipment brought by the Bering. The cargo was loaded at five West Coast ports-Portland, Astoria, Tacoma, Seattle, and Vanoover. By far the greater portion of the cargo consisted of foodstuffs (flour, oats, milk products, corn starch, etc.), 95% to be reasonably exact. And the one item, flour, accounted for 85 of this 95%. Among the items not classified as foodstuffs, paper held the leading position-115 tons. Other items imported were Drugs, Medical Supplies and Pharmaceuticals (54 tons), Used Clothing (35 tons), Soap (1.5 tons), Shoes (900 kilos), Electrical Supplies (6.5 tons), and Copra Bags (17 tons). Of the total cargo of 8,700 tons, the Commonwealth received 55 %, or approximately 4,700 tons, leaving 4,000 tons for the 29 other sharers in the cargo, who were (arranged alphabetically)Abbott Laboratories Community Trade Co. Connell Bros. Co., Inc. Decena, Luis Fookien Times Co. Forbes Munn, Ltd. The American Chamber of Commerce Journal December, 1945 27

Page  28 NATIONAL CITY BANK FIRST TO RE-OPEN The National City Bank re-opened its Manila branch on June 28, 1945. By doing so, it won the distinction of being the first private bank to resume operations in the Philippines, although quickly followed by the Hongkong and Shanghai Banking Corporation and the Chartered Bank of India, Australia, and China. The two pictures on this page were taken before the task of cleaning up the premises was begun. Most of the wooden cases in the lower picture were filled with Japanese "mickey mouse" curren:y ranging in denomination from 5 centavos to 1,000 pesos. In the picture above are (from left to righ') R. E. Russell, A. Kirkpatrick, E. J. LeJeune (Manager), R. W. Doye, C. F. Thomas (financial adviser to Genera! McArthurl, P. S. B. Allen. 28 The American Chamber of Commerce Journal December, 1945

Page  29 Surplus Property Act... (Continued from page 26) ed any such approval, authorization, or ratification as part of his official duties. Any person violating the provisions of this section shall be fined not more than $10,000, or imprisoned for not more than one year, or boih. Statulte of Limitations Sec. 28. The first section of the Act of August 24, 1942 (56 Stat. 747), as amended, is amended to rcad as follows: "The running of any existing statute of limitations applicable to any offense against the laws of the United States (1) involving defrauding or attempts to defraud the United States or any agency thereof whether by conspiracy or not, and in any manner, or (2) committed in connection with the negotiation, procurement, award, performance, payment for, interim financing, cancellation lor other termination or settlement, of any contract, subcontract, or purchase order which is connected with or related to the prosecution of the present war, or with any disposition of ter mination inventory by any war contractor or government agency, or (3) committed in connection with the care and handling and disposal of property under the Surplus Property Act of 1944, shall be suspended until three years after the termination of hostilities in the present war as proclaimed by the President or by a concurrent resolution of the House of Congress. This section shall apply to acts, 'offenses, or transactions where the existing statute of i'imitations has not yet fully run, but it shall not apply to acts, offenses, or transactions which are already barred by )provisions of existing law." Miscellaneo us Provisions Sec. 29. Surplus property disposals may be made without regard to any provisions in existing law for competitive bidding, unless the Board shall determine that disposal by competitive bid will in a given case better effectuate the policy of the Act.:N * A: Dispositions Outside United States Sec. 32. (a) Nothing in this Act shall limit or effect the authority of commanders in active theaters of military operations with respect to property in their control. (b) The provisions of this Act shall be applicable to dispositions of property within the United States and elsewhere, but the Board may exempt from some or all of the provisions hereof dispositions of property located outside of the continental United States, its Territories and possessions, whenever it deems that s u c h provisions would obstruct the efficient and economic disposition of such property in accordance with the objectives of this Act. Restrictions on Importation of Surplus Property Into United States Sec. 33. (a) It is the policy of this Act to prohibit, so far as feasible and necessary to carry out the objectives of this Act, the importation into the United States of surplus property sold abroad or for export. The Board shall prescribe regulations to carry out such policy, and the importation of surplus property into the United States is hereby prohibited to the extent specified in such regulations. The Sec(Coltinued on page 32) I F. E. ZUELLIG, INC. 329 AYALA BLDG. (National City Be.nk Bldg.) IMPORTS & EXPORTS INSURANCE AGENTS I China Banking * * Corporation * * (Incorporated 1920) 2nd. Floor CHINA BANK BUILDING Corner Dasmarinias & Juan Luna Streets MANILA I I I - The American Chamber of Commerce Journal December, 1945 29

Page  30 Reconstruction.. (Continued from page 7) Congress of the United States will be willing to help us finance our rehabilitation program. I venture to state, however, that whatever funds Congress may provide will not be sufficient to effect complete rehabilitation. I therefore suggest that we also negotiate with the government of the United States for a loan to be granted to the Philippine government. This loan should be for thirty years at least, and if interest is required, it should not be in excess of the interest which the United States government is now paying on its bonds. That interest is around two percent. A loan on these terms would permit us to finance the reestablishment of our own industries here and the setting up of new ones. If we are able to raise funds on that basis, and collect four and one-half percent per annum from private individuals and corporations to whom we loan it, at the end of thirty years n.ot only shall we have paid all the interest but we shall also have repaid the entire obligation. There is no reason in my opinion why the United States might not extend that help to the Philippines. The loan would be adequately secured by the homes and factories and ships that would be built with this money. It would be no great sacrifice to the United States because it would cost the United States treasury nothing. We would pay the United States the same interest that the United States government pays for its bonds. I might say in commercial parlance, that this would be merely an accommodation to the Philippine government by the government of the United States. It should be one of our efforts in our negotiations with America to obtain as large a loan of this character as possible for the promotion of new industries here, new services such as shipping, electric light plants, even railroads if we find that they are necessary. The Philippine legislature has recently endorsed the proposal by Congressman Dingle of California that there be free trade between the United States and the Philippines for twenty years. I heartily endorse that proposal, but we must not deceive ourselves. Twenty years free trade is not the complete solution of our eco nomic problems. Let no one believe that if we are granted this free trade period our problems are all over and we can forge ahead without further economic assistance from America. The more opportunity we have to benefit from the proposed free trade concession, the more funds we shall require to reconstruct our industries. Many things have occurred in the United States since 1902 when the first Philippine Bill was passed; many things have occurred in the United States and in the world since 1909 when another Philippine Bill affecting our trade relations with America was passed; and many things have occurred in the United States and in the world since 1934 when the Tydings-McDuffie Bill was passed. The trade preference which many Fii'ipinos have in mind when they speak of free trade with America no longer exists. Some of our major industries will find themselves in difficulties even with the continuance of free trade after our independence. When the Roosevelt administration came into power, Secretary of State Cordell Hull proposed that America should embark on a policy of lowering tariff barriers, not by amending the tariff laws of the United States but by concluding reciprocal trade treaties with different nations. The President was authorized to negotiate reciprocal trade treaties with any nation in the world for a beneficial exchange of commodities. He was also authorized, to lower the United States tariff to fifty percent of the rates prevailing under the tariff laws of the United States. Let me give an illustration. In 1940 the American tariff on world sugar was two and one-half centavos a pound, under the tariff laws of the United States. Under the reciprocal trade treaty law, he was allowed to reduce that by fifty percent. And in 1942 that was done. Whereas formerly Philippine sugar enjoyed a differential of 21/2 centavos a pound over competitive sugar imported from other countries, this action reduced this differential by fifty percent. The margin in favor of our sugar producers, on the American market, is now only 11//t centavos a pound. In addition, the Platt Amendment to the agreement between the United States and Cuba gave Cuba a 20 %5o tariff preference over all other countries except the Philippines. This means that instead of a duty of 2%/ centavos a pound, less 20Cc. Cuba now pays a duty of 50i%) of 21/% centavos a pound, less 20 %. And this in turn vitally affects the position of Philippine sugar on the American market. But this is not all. Lately the Congress of the United States further authorized the President to reduce tariffs by another 50 %, that is to only 25 % of the full duty. Obviously this will further reduce the effective preference for our products under free trade. I do not wish to be misunderstood. I am heartily in favor of the Dingle proposal. I want free trade relations with the United States for as long a time as possible; but we must be careful not to make the mistake of thinking that free trade will be sufficient to solve all of our problems. I am heartily in favor of free trade because it will help some of our industries, and more important than that I am in favor of it because it will serve to maintain a strong and firm relationship between the United States and the Philippines, which will be invaluable not only to our economic stability but also to our future security. Unless America takes sufficient interest in the economic life of the Philippines to help us rebuild our country, an economic vacuum will be produced in this country and other nations will rush in to take advantage of it. Unless the Filipinos themselves develop their country economically, quickly, efficiently, and completely (and this they can only do with the assistance of the United States) other nations will come here. And the active economic intervention of other countries in the Philippines arouses fear in the minds of us all. This is a question that transcends mere monitary profit. The importance of maintaining free trade between the United States and the Philippines, as I see it, lies in the bonds that will be forged, bonds of understanding and friendship, bonds of reciprocal advantage, bonds of mutual help and assistance for generations to come between America and the Philippines. Because we realize that we can not, economically weak as we are today, develop this country as we want to see it developed, we offer the American people the inducement of coming here and helping us. Do not let anybody think that I am trying to open the Philippines to what we used to call "American imperialism." Such is not my intention. American help will come, if it comes at all, in accordance with the laws of our country. American capital will receive no advantages over Filipino capital. It will be invested here only to the extent that it is needed to help us rehabilitate, reconstruct, and develop our country. There is still another reason foir my desire to perpetuate the intimate friendly relations that have existed between the United States and the Philippines. The Philippine Islands are situated geographically in the center of an area in which practically one-half of humanity liveS. There are about one billion human beings living within a few thousand miles of the Philippines. All these people are "backward" people; most of 30 The American Chamber of Commerce Journal December, 1945

Page  31 them backward in the sense that they are not governing themselves, backward in the sense that they are not well organized industrially and economically, backward in the sense that many of these countries are still under the domination of foreign powers. The Philippines, if our relationship with America is maintained, thereby enabling us to re-establish our high standard of living and to strengthen our democratic government-the Philippines will be the gre at broadcasting station for American ideals, for liberal principles, for the great freedoms for which this war was fought. And these peoples-the people of China, the people of Burma, the people of India, of Malaya, of Sumatra, of Java, and even those living on isolated islands scattered throughout the Pacific will look upon the Philippines as the great example of what democratic and liberal ideas can do for a nation. But only if we succeed in the Philippines in making democracy work. In this Philippine experiment, America demonstrates to the world that freedom is the great dynamic force that can insure happiness and welfare to innumerable people. But this experiment is not going to be a success merely by the President of the United States signing a declaration announcing that on a certain date the Philippines will become independent. We will take independence with or without the assistance of America. Let that be clear. But if America wants this experiment to be a success, America must place in our hands the means to make it a success. Many years ago the strong objection to the independence of the Philippines was that we were not economically prepared. Therefore America postponed the grant of independence so as to permit us to prepare economically for it. A great portion of our economy has now been destroyed by war. Will America today on the eve of our independence (a day that cannot and should not be postponed) forget all her obligations with regard to our economic stability? Will America today content herself with giving us independence and her blessing, forgetting that for many years when we were better able to support an independent government, she refused to grant it because she was not satisfied with our economic power? I do not believe that America will take that stand. I do not believe that America will refuse to help the Philippines in this hour of our greatest need. From the year 1900 America has assured the Philippines and the whole world that she came here to liberate us and help us attain the standing of an independent nation. And more recently through the sacrifices of this war, in memory of the tens of thousands of Filipinos who died in support of that glorious flag with the stars and stripes, America celebrated a moral compact with us of a common destiny under the banner of freedom and democracy. Let Us Remember... (Continued from page 9) has been said that every prisoner or internee who lived to be liberated owed his, life, directly or indirectly, to some Filipino, who helped to provide him with food, or medicine, or clothes. No, Tony and Josefa Escoda were not the only Filipinos to whom Americans owe the kind of debt that can never be repaid. It is with them in mind as being typical of the friendship of Filipinos; for Americans that we propose the creation of a memorial which shall be in their name, and that shall perpetuate in a fitting manner through the memory of these two people particularly the sense of gratitude that we Americans individually and collectively feel for our Filipino friends who stood by us in our days and months and years of gravest need. The specific proposal of this article is the raising of a fund to be known as the Escoda Memorial Fund. This fund will be used in a way that will appeal strongly to the friends of the Escodas. It will' be used first to establish scholarships for the education of the daughter, Maria Teresa, and the son, Antonio. However, this is not an appeal for charity for these two young people. They do not want charity and do not need charity. They are the true children of their parents, independent and self-reliant. With or without help from this source, they will succeed in achieving the educational goals they have set for themselves. But to those who will wish to share in perpetuating the memory of the martyrdom of the Escoodas, it will be a privilege to share in an objective that was dearer to the hearts of Tony and Josefa perhaps than any other - the objective of providing first-class educations for Maria Teresa and Antonio. If the response to this move to raise an Escoda Memorial Fund is as generous as anticipated, there will be funds left over after this first ob jective has been gained. While the full' development of plans will necessarily have to await the financial response, it may be stated at this stage that funds left over will be used to establish other scholarships for the education in Amnerica of other Filipino boys and girls —to the extent that the money available will permit. The preliminary sponsors of this move are self-appointed. They are Mr. Clyde A. DeWitt, prominent Manila attorney, Mr. Byron Ford, president of the Philippine Trust Co., Mr. H. A. Linn of the Manila Daily Bulletin, and Mr. R. S. Hendry, editor of the American Chatmber of Commerce Jourznal, all of whom were intimate personal friends of the Escodas. These individuals have charged themselves with the responsibility of organizing a trusteeship for the Escoda Memorial Fund that will be competent to act as a permanent body. Communications regarding the establishment of the Escoda Memorial Fund may be addressed to any of the above group. Mr. Ford has kindly consented to act as the temnporary treasurer,of the fund. Financial contributions may be sent to him in any form convenient to the sender. Full publicity will be given to this movement through various channels of information so that those who are interested may be kept advised regarding its progress. Education Begins... (Continued from page 13) The following itemized losses at Mufioz may be of special interest: (1) Buildings, roads, parks, and fences - P146,362.50; (2) Stationary engines and machinery-P82,220. 00; (3) Farm implements and equipment - P69,530.90; (4) Carabaos, pigs, goats, and cattle - P58,205.00; (5) Standing and stored palay P50,000.00; (6) Students' Exchange stock of merchandise - P23,688.00; (7) Athletic equipment, cine, projecting machine - P23,295.00; (8) Library books - P16,342.00; (9) Irrigation, lighting and sewerage system - P14,397.60; (10) Stored gasoline, kerosene, and oil -P12,387.00; (11) Mess equipment - P7,112.45; (12) Poultry project - P7,078.00; (13) Horticulture crops - PMO,00-.0; (14) Hospital equipment -P,478.00; (15) Gourami fishpond P3,938.00; (16) Printing press 3,754.00; (17) Bowling alleys and equipment of the barber, tailor, and shoe shops - P2,378.00; (18) Telephone and telegraph equipment P1.980.00; (19) Botanical garden and museum - P1,867.00; Total.... P535,013.45. As Mufioz is a P1,500, 000.00 plant this is a comparatively small' loss. However the estimated losses are based on pre-war values and do not include the totally destroyed sugarcane crop in 1941, personal household goods of the school personnel and students, and minor damages on property. (Continued on page 32) The American Chamber of Commerce Journal December, 1945 31

Page  32 Education Begins... (Continued from page 31) The Baybay Agricultural School in Leyte had no building losses but most of the equipment and animals were either loaned ito the USAFFE forces or seized by the Japanese. Due to lack of communication facilities the Department of Instruction does not know the exact damage suffered by the Bukidnoln Regional Agricultural School, although it has been rumored that a number of buildings were either damaged or destroyed. The livesstock, however, was very helpful to the guerrilla forces near the school. Only a few animals fell into the hands of the Japanese. A large number of teachers and students in this school, like those at Mufioz and Baybay, were during the occupation an active group cooperating with the local guerrilla forces. Most of our provincial trade school buildings were immediately seized by the Japanese and utilized as army shops. The Philippine School of Arts and Trades was a center of munition repairs and the making of ammunition. The entire plant was a garrison and the soldiers exchanged many of the valuable technical books in the library for ice cream and refreshments. In spite of this, the late superintendent, Mr. Ceferino Purissima, who was murdered by the Japanese during the February slaughter, was able to transfer a large number of books to the normal school building and most of these have been recovered. Of all the trade schools the Philippine School of Arts and Trades was the one which was most badly damaged. The academic building which cost over P300,000 was razed, to the ground. The main shop building was damaged to the extent of P178,000. The radio building and the power house still stand but it wilil co>, about P34,000.00 to _epair them. Furniture and classroom equipment to the value of P480,000.00 and supplies and materials, library books and equipment valued at P300,000 bring the total loss to this school to at least P1,292,000.00. In spite of these losses the school is now functioning wvith the help of the U. S. Army. A special arrangement has been made whereby the students of the Philippine School of Arts and Trades are enrolled as apprentice trainees in the army shops with the trade teachers as liaison foremen. All work done by high school graduates in these shops will be credited towards graduation in technical courses at the Philippine School of Arts and Trades and all work done by undergraduates will be credited towards graduation in the army secondary trade school. The Iioilo School of Arts, and Trades lost the academic building, and the superintendent's cottage. Other smaller buildings valued at P61,000-.00 were totally destroyed. The main building power house, and blacksmith shop were partly damaged and will requihe about P30,000.00 for repair. When the superintendent evacuated to the hills he took with him all of the records of the school, the iron safe, and as much office equipment and small tools as could be conveniently carried away and returned them to the school when it reopened in August. However, all of the expensive equipment, to the value of P192,000.00, was compietely destroyed or carried away. The Cebu School of Arts and Trades was more fortunate as no building was destroyed and only about P10,000.00 will be required to repair one of the temporary shop buildings. However, equipment and materials amounting to P85,000.00 were taken or destroyed by the ene'my. The buildings and equipment foi the provincial high schools are not as expensive as those in our agricui'tural and trade schools and it will not cost as much to rehabilitate them. Many were conciete structures which will only need roofing and flooring. In the barrios the destruction of the barrio school buildings have not generally interfeied with school operations. If the buildings are destroyed, the barrio people construct a temporaicy bamboo building and little Juan for the time being can recite just as efficiently there as he can in a more substantial building. In the small province of Marinduque, 43 barrio school buildings costing P50,000 were totally destroyed and other barrio buildings were damaged t,o the extent of P99,000. It is not always the building that counts. In the Mufioz Agricultural School all of the buildings were occupied by the army as a base hospital but the army gave the school large tents and classroom work goes on just the same as it did before the war. As soon as the army leaves, the school will' not only have its own buildings but also the other buildings which the army has constructed on the grounds. Surplus Property Act... (Continued from page 29) retary of the Treasury is authorized and directed to provide for the enforcement of such regulations. (b) Surplus property sold to members of the armed forces abroad may be brought into the United States without regard to the provisions of subsection (a) if brought in by the original purchaser and upon certificate by him that he is bringing the property into the United States for his personal use. * * * Expiration Date Sec. 38 Unless extended by law, this Act shall expire at the end of three years following the date of the cessation of hostilities in the present war. For the purposes of this section the terml "date of the cessation of hostilities in the present war" means the date proclaimed by the President as the date of such cessation, or the date specified in a concurrent resolution,of the two Houses of Congress as the date of such cessation, whichever is the earlier. Editorial note: - The following sections ware omitted from the above reprint of the "Surplus Property Act of 1944": Sec. 4-Disposition of Surplus Property -General Rule Sec. 6-Duties and Authority of Board Sec. 7-Cooperation with Interested Government Agencies Sec. 8-Delegation of Authority Sec. 12-Utilization of Surplus Property by Federal Agencies Sec. 18-Small Business Sec. 19-Disposal of Plants Sec. 20-Applicability of Antitrust Law, Sec. 21-Disposal of Surplus Agr)icultural Commodities Sec. 22-Stock Piling Sec. 23-Disposal of Surplus Real Property Sec. 24-Reports to Congress Sec. 30-Disposition of Proceeds Sec. 31-Use of Appropriated Funds Sec. 34-Saving Provisions Sec. 35-Temporary Applicability of Existing Procedures Sec. 36-Termination Inventories Sec. 37-Increase in Loan Rate on Cotton Sec. 39-Separability of Provisions Pres. Truman... (Continued from page 22) with the War Shipping Administration to eliminate inflation by facili tating normal import trade. "You are, therefore, requested to direct the United States Commercial Company to use resources and personnel within its jurisdiction to continue and advance the Philippine program which it has undertaken, and, where necessary, to sell goods on credit terms not exceeding two years in duration." 32 The American Chamber of Commerce Journal December, 1945

Page  1 JUL 1 4 1947 PERIODICAL ROOM GENERAL LIBRARt UNIV. OF MICH.. THE COMMERCE (Photo by the Manila Times) American Chamber of Commerce First Post-war Annual Meeting, Jan. 25, 1946 MANILA, PHILIPPINES VOL. XXII, NO. 2 FEBRUARY, 1946 50 CENTAVOS

Page  2 ESCODA MEMORIAL FUND An opportunity for ex-internees, ex-prisoners of war, and their families to give practical expression to their undying gratitude for help given them in their time of greatest need. THIS INDENTURE made and entered into in the City of Manila, Philippines, on this 25th day of January, 1946, by and between CLYDE A. DEWITT E. B. FORD H. A. LINN AUBREY AMES R. S. HENDRY and such other persons, corporations, partnerships or associations as may hereafter join in this agreement by contributing to the trust fund hereby created, W I T N E S S E T H WHEREAS, ANTONIO H. ESCODA and JOSEFA LLANES ESCODA, husband and wife, residents of the City of Manila, Philippines, were murdered by the Japanese on or about November 30, 1944 and January 15, 1945 respectively; WHEREAS, the cause of their killing was the help given by them to Americans who were held by the Japanese as war prisoners and internees during the Japanese occupation of Manila; WHEREAS, Maria Teresa Escoda, aged 18 years, ind Antonio Escoda, aged 15 years, two children of the aforesaid spouses, are their only survivors; and WHEREAS, in their lifetime, the aforesaid ANTONIO H. ESCODA and JOSEFA LLANES ESCODA were identified with social work in the Philippines, taking active part in charitable enterprises in the interests of the poor and the unfortunate: NOW, THEREFORE, the parties hereto and such other persons, corporations, partnerships or associations as may hereafter join in this agreement by contributing to the trust fund hereby created, hereby create a trust fund under the following terms and conditions, to-wit: I The said trust fund shall be designated and known as the "ESCODA MEMORIAL FUND", consisting of voluntary contributions by the parties hereto and such other funds and moneys as may be voluntarily contributed thereto by others. II The fund shall be primarily for the establishment of scholarships for the benefit of the aforesaid Maria Teresa Escoda and Antonio Escoda, children of the late spouses ANTONIO H. ESCODA and JOSEFA LLANES ESCODA, and subsidiarily for the establishment of schorarships for the benefit of such other children in the Philippines as the Board of Trustees, hereinafter provided, may from time to time determine. III The funds shall be administered by a Board of five (5) trustees to be elected by the parties hereto annually at a general or special meeting held for the purposes in the City of Manila in the month of January, Vacancies in the Board shall be filled by the remaining members of the Board for the unexpired portion of their term by election from among the parties hereto. The following shall constitute the Board of Trustees for the year 1946 and until their successors are elected and qualified In' accordance herewith: Clyde A. DeWitt E. B. Ford H. A. Linn Aubrey Ames R. S. Hendry IV The fund shall be invested in such businesses or kept in such banks and other financial inst:tutimns as the Board of Trustees in their sole discretion may determine and the Trustees may dispose of the principal and income, for the purposes of the Trust, as they may' determine. V The Trustees shall not be paid any compensation for their services as such, their services being purely voluntary on their part. They may, however, employ such clerical help and for such compensation as in their judgment may be proper. VI This agreement may be altered, amended, or cancelled by the vote of two-thirds (2/3) of the part:es hereto. VII In all meetings and other actions of the parties to this indenture and of the Board of Trustees, a majority shall constitute a quorum, and the affirmative vote of a majority of the parties or Trustees at the meeting shall be sufficient for any action except that covered by the next preceding paragraph. The parties hereto may act personally or by their duly appointed proxies. VIII The Trustees hereinabove named hereby accept their appointment as such and agree to discharge their trust in accordance with the terms hereof. IN WITNESS WHEREOF, the Trustees above named and the parties hereto have hereunto set their hands at Manila, Philippines, on the day, month and year first hereinabove written. Join the Escoda Memorial Fund by mailing your check to E. B. Ford, Treasurer, c/o Philippine Trust Co., Manila.

Page  3 THEAMERIC k'ijAM"BE'OF COMMERCE L VOL. XXII, No. 2 FEBRUARY, 1946 Table of Contents Page 29 WSA Ships Serve 29 Inter-Island Ports...... 5 Housing Program for the Philippines by Louis H. Pink................................. 6 Uncle Sam-Merchandiser..................... 7 The Escodas................................. 9 Editorial: Our "Micky Mouse Money" Problems........ 10 Annual Report of the President of the American Chamber of Commerce.................... 11 The Bell Bill................................. 12 Infiation and Cost of Living in Manila During the Japanese Occupation by Cesar M. Lorenzo... 14 National City Bank Ready for World Trade Resum ption................................. 16 Cooperative Movement in the Philippines' by Luis Agudo, Sr................................ 17 Know the Law............................ 19 Manila Stock Exchange Re-Opens.............. 23 The Philippine Bank Rehabilitation Law........ 26 Statistical Tables: Index Numbers of Cost of Living of Wage Earners in Manila 1941-1945 1941=100......... 18 Number of Manufacturing Establishments in Manila Classified by Kind of Business and by Citizenship of Owners: July, 1945................ 18 Number of Business Establishments in Manila Classified by Kind of Business and by Citizenship of Owners: July, 1945................ 20 War Damage of Real Estates Improvements in Manila: December, 1941 - February, 1946.... 22 Computed Cost of Living of Wage Earners' Families in Manila: 1941-1945.................... 24 Amount of Money Available for Circulation in the Philippines: 1941-1945.................... 24 Number of Structures Damaged by War in Manila: 1941-1945....25......................... 25 Index Nmbers of the Cost of Living of Wage Earners and Low-Salaries Workers and the Purchasing Power of a Peso in Manila: 1941-1945 1941-100 1................................ 28 Index Numbers of Cost of Living of Wage Earners of Manila: Mar. 1941 to Jan. 1946.......... 28,FAR EASTAMERICP COMMERCIAL CO., I K515 QUEZONBVDg 9MANIL JAIDENTORS & IMPORTERS I CONNELL BROS, CO. (PHILIPPINES) IMPORTERS IMPORTERS EXPORTERS * 505 WILSON BUILDING Juan Luna, Manila TEL. 2-63-03 L I — The American Chamber of Commerce Journal February. 1946 0 3

Page  4 L= ` --- -~--. --- -I --- —— I~- -~ ---P --- - MANILA ELECTRIC COMPANY LIGHT TRANSPORTATION POWER:U 134 SAN MARCELINO, MANILA RECORDS TODAY... TOMORROW'S progress axila xttas Editorial & Business Offices 715-721 Calern & Sonler Manila I L_ I A L Philippines The American Chamber of Commerce Journal February, 1946 4

Page  5 * 0 *0 29 WSA SHIPS SERVE..... * 0 * 6 29 INTER-ISLAND PORTS I FS and F boats waiting to be loaded in Manila.. ~ -.1 "100 I~~~~~~ ~ Efficient inter-island transportation is a basic need in the rebuilding of the Philippines. The end of the war found the country completely stripped of its prewar fleets of interisland ships; and so far no sign of their restoration can be discerned. In the meantime, the War Shipping Administration has provided a certain measure of temporary relief by diverting 29 ships to inter-island trade. This fleet consists of 2 fairsized freighters, the Masthead Knot (2,500 tons) and the George W. Tucker (2,000 tons), 22 FS boats of 200 tons capacity and 5 F boats of 60 tons capacity. The ships themselves are the property of the U.S. government and are controlled by the War Shipping Administration. However, for their operation in the Philippines, this administration has appointed the American President Lines its operating agency. The American President Lines in turn has succeeded in appointing agencies (for handling freight and passengers) in 7 different inter-island ports, as follows:Iloilo....... Elizalde & Co., Inc. Debu....... La Naviera Filipina, Inc. racloban.... Mr. T. Suya Tabaco... A. L. Amen Transportation Co. Romblon.... Romblon Trading Co. Davao...... Jos. S. Johnston Zamboanga..Hanson, Orth & Stevenson, Inc. Sailings are not limited to these ports, however. The Masthead Knot serves Iloilo and Cebu. The George W. Tucker plies between Manila, Zamboanga, and Davao. And, ac-:ording to a schedule recently reeased, the smaller ships maintain service between Manila and the folowing ports: (Continued on page 19) George W. Tucker, arriving at Pier 6, North Harbor, Manila Loading an FS boat in Manila The American Chamber of Commerce Journal February, 1946 5

Page  6 A Housing Program For The Philippines By LUIS H. PINK A HOUSING PROGRAM FOR THE PHILIPPINES As the Commonwealth grows in power and prepares to become an independent nation, it is fitting that it take steps towards providing decent, sanitary and attractive housing for those who are not able to provide for themselves but who can pay a reasonable part of the cost. It is even more important that Tondo and other slum areas in Manila and in other cities be replanned and rebuilt, and that low-rental accommodations be provided on these or other sites. Much can be learned from experience in the United States, but the law and practice of the two differ in some respects, and legislation in the United States cannot be transposed to the Philippine Islands. We should utilize those forms and procedure which have been demonstrated as practical and sound, and adapt them to the building construction methods, the habits of living, the climate, and traditions of the Philippine Islands. STEPS ALREADY TAKEN People's Homesite Corporation The first attempt of the Government to provide housing is the People's Homesite Corporation in Manila which developed a plot on the site of Quezon City. Those who promoted it deserve credit because they were pioneers willing to do something, and not contented with mere talking about the problem. The buildings are reasonably well planned and constructed. They are no doubt better and more favorably located, than people could ordinarily purchase for the same money. But there are some obvious errors in Homesite which should not be repeated in future developments. First of all, the Homesite Corporation showed little imagination or community planning. Streets run parallel to each other and that ordered diversity necessary for an attractive building operative is lacking. Any such projects should be planned with a view to playgrounds, small parks, and community facilitie;. There should be a center around which the. village may be grouped. Architectire should be attractive though simple in line; each building should not be an exact copy of the others. The community should be maintained as an entity in order that planting, recreational facilities, and other community facilities imay be properly kept up. As might have been expected, the purchasers of the properties were mostly government employees rather than low-income people. The promoters of Homesite deserves credit for pioneerings, but the project fails to meet several of the ideals of community planning. THE NATIONAL HOUSING COMMISSION The statute creating the National Housing Commission in January, 1941 is another praiseworthy attempt. Because of the war nothing has been done with the legislation, either to appoint a board to administer it or provide funds. The idea behind this legislation is much more important and larger in scope than homesite. The bill gives the National Housing Commission authority to take public lands, or purchase private properties, develop and sell the house to the public. It also attempts to give very wide power over the elimination of slums and the replanning of slum areas. It is apparently drawn mainly with the idea of providing more and better homesites, and as a practical aid in slum clearance in Manila, rather than as a comprehensive plan for the development at low cost of housing and the elimination of slum areas throughout the Islands. The law centers all power on the Commission at Manila and does not encourage local municipalities or the provinces to develope their own housing plans, or provide local housing authorities of their own, or eliminate slums through their own initiative. It removes all control from the cities and provinces and centers it in the National Housing Commission. It is our experience in the States that work can be done best if the cities and regional areas are made responsible for planning, building, and managing the project. Leadership, standards and part of the financing must necessarily be provided by a Federal agency. Because of the political institutions of the Philippines, housing should undoubtedly be more centralized here than in the United States. But the existing act, I believe, goes too far in the direction of centralization. Authority so centered in Manila may create jealousy and misunderstanding in various localities, and in any event fails to secure local interest, cooperation and support which are essential to any permanent worthwhile plan for the Islands as a whole. SUGGESTED PLAN FOPR THE PHILIPPINE COMMONWEALTH It is now recognized that housing should be directly related to planning, and can only be successful if it is carried out in conformity with the proper location of publci buildings, public improvements, streets, parks, schools, playgrounds, transportation, and other facilities. The housing commission and the planning commission, while separate entities, are part and parcel of replanning and any corporate body having to do with public housing must be integrated with the national and local planning bodies. All of the contemplated housing projects, their sites, architecture, and landscape planning should be subject to the approval of the National Planning Commission about to be established and local planning officials in the provinces and chartered cities. It seems advisable to have a National Housing Commission or authority composed of five persons with an executive head. The duties of suclh housing commission should be, in brief, as follows: It should have power of its own volition to receive grants and public money from the Commonwealth Government, plan, develop, construct, lease, rent and sell the buildings erected in the city of Manila and in any part of the Philippines where local authorities are unwilling or unable to provide for slum clearance and the erection of dwellings for their own community. It should not duplicate the efforts of those communities which are able and willing to do the work themselves and to provide the 6 The American Chamber of Commerce Journal February, 1946

Page  7 UNCLE SAM —MERCHANDISER The greatest sale in the history of the Philippines is now in full swing. The seller is the United States of America. The buyers are you, you, and you-Filipinos, Americans, British, Chinese, Spaniards-governments, corporations, partnerships, societies, associations and individuals. The merchandise consists of foodstuffs, machinery, vehicles, clothing and cloth materials, tcols, electrical supplies, chemicals-the countless items of equipment and supplies manufactured for a purpose that, thank God, has already been accomplished, the winning of the war. Originally intended for men engaged these materials are now becoming in the destructive enterprise of war, availiable for men intent on the constructive enterprise of rebuilding a lravaged nation, and the restoration of its life. This sale, in the words of one official, "means more opportunity for citizens of the Commonwealth to buy products which can help rebuild and rehabilitate the life of the Islands." The basic policies governing this sale were established by the "surplus Property Act of 1944" (reprinted in our December, 1945 issue). Primarily the purpose of the sale is to save the American government (and thereby the American taxpayer) as much money as possible. But in the act itself this primary financial purlpose is actually relegated to the end of the list of objectives and is modified by other objectives to an extent that almost hides it from view; such as, "to give maximum aid in the reestablishment of peacetime economy of free independent enterprise," "to establish and develop foreign markets....," "to utilize normal channels of trade and commerce..., "to prevent... unusual and excessive profits being made out of surplus property." These objectives place our merchandiser, Uncle Sam, in a position and give him a point of view that is unique in our experience. He has groods for sale. He wants cash in ex change. How much cash? All that lie can get? Even a modified yes would not be an accurate answer to that question. He wants a "fair" return, and he can't be blamed for that. But, and it is this that makes him unique, he is more interested in the social values and effects of his sales than in the financial return. He wants to know who is going to use his goods, and for what purpose. For example, on November 23, 1945, the Foreign Liquidation Commission announced that it had for sale "a considerable quantity of dynamite which can be sold to mining operators, road builders, and construction companies." Earlier in November, the Commission announced the sale of four airplanes which "are now operating on convenient schedules that will bring distant parts of the islands within a short space in time of Manila." In this transaction, the important element to the seller was that the planes "are now operating,'' not that the highest possible price was secured for them. The normal procedure for making sales of general items is to classify the items, catalog them, inform the public through the press, accept bids, and make awards. All this is done by the Office of the Foreign Liquidation Commissioner, National City Bank Bldg., Manila. Two general offerings have been completed and the third catalog is now being circulated (closing date for bids, January 28th). This catalog, 43 pages long, lists 237 items arranged for bidding purposes into 169 blocks. A block may contain one item only (Block 23 consists only of "Net, camouflage, cotton shrimp, O. D. 29' x 29') or of several! items (Block 152 consists of grips, extension ladders, pliers, thimbles, and wire pike). The offerings in this one catalog have a total value of approximately P15,000,000. Values are arrived at by deducting depreciation charges from the original cost to the government. Block values range from $38.40 (Block 162, consisting of 5 cylinders of gas) to $515,906.25 (Blbck 235, consisting of 5,503 camouflage nets). In the latter instance however bids are considered in lots of 500 nets. Altogether there are 14 blocks valued at more than $100,000 each, and 85 blocks valued at less than $10,000. So the dealer of average means does have a chance. The statement that the catalog lists 237 items may be a bit misleading. As a matter of fact, 33 of these items are different type of batteries, 22 are different styles and sizes of camouflage nets, 35 are different types of tubes, etc. However, the variety of items is still amazing —alcohol (polyvinyl), protective aprons, augers, blasting caps, calcium carbide, chicken wire, compasses, distillation units, motion picture film, gloves, land mines (these are empty, thank goodness), map paper, radio sets, trucks, etc., etc. The reader should not get the idea, however, that this is his opportunity to buy a few batteries for his radio or flasnlight, or a roll of chicken wire for his yard. As a guide to the batter situation, it would be well' to check on Block 182 (7), which has an estimated value of $17,664.36 and consists of more than 14,000 batteries, or Block 182(3) with an estimated value of $56,415.60 and consisting of 626,840 batter:es. And the buyer of chicken wire should be prepared to handle some 900 rolls of it (Block 283). Uncle Sam's merchandising operations are world-wide. Wherever his military or naval forces are, or were, there is to be found property that he no longer needs, and there he is going into business as a seller. For the Pacific area (which includes everything in the Pacific except the Hawaiian Islands and the Aleutian Islands), Manila is his base of operations, the headquarters of his sales campaign. Some idea of the geographical complexity of his problem can be gained from this same Catalog No. 3. The 169 blocks offered for sale are scattered among ten different places, from Okinawa to Cebu. Manila leads in quantity and in value; but Tacloban and San Fernando, La Union are fairly close behind. In Subic City, 500 fire extinguisher brackets, 10,000 feet of 5/16" hose, 1,000 yards of duck, 50 scales, and 60 thermometers are available for purchase. In Panay, buyers will find 700 feet of sewage pipe, 200,000 board feet of lumber, and 18 drums of napthalene. Min doro, Batangas, and Samar are also in the list. (Continued on poage 25) The American Chamber of Commerce Journal lebruary, 1946 7

Page  8 I 6 INTERNATIONAL HARVESTER CO. OF PHILIPPINES 154 MARQUES DE COMILLAS Manila, P. I. AGRICULTURAL MACHINERY TRACK LAYING TRACTORS. CEMENT MIXERS SAW MILLS LOGGING EQUIPMENT PORTABLE CRANES I MOTOR TRUCKS DIESEL ENGINES GENERATORS WATER PUMPS MOTOR BUSES CONTRACTOR EQPT. Agents for: THE ISTHMIAN STEAMSHIP CO. Swedish East Asiatic Co. Glen Line Ltd. I - I Ed. A. Keller & Co., Ltd. General Importers & Insurance Agents 302 yAyala Bldg. (3rd. floor) Manila P.I. Agents for: AMERICAN LEAD PENCIL CO., HOBOKEN, N. J. AMERICAN SAFETY RAZOR CORP., BROOKLYN, N. Y. THE COLEMAN LAMP & STOVE CO., LTD. TORONTO & CHICAGO ETERNA WATCH COMPANY, GRENCHEN SWITZERLAND S. C. JOHNSON & SON, INC. RACINE, WISC. THE MAGGI COMPANY, KEMPTAL SWITZERLAND MILES LABORATORY, INC. ELKHART, IND. PIERCE WATCH COMPANY, BIENNE SWITZERLAND E. R. SQUIBB & SONS, NEW YORK THE WANDER COMPANY, CHICAGO General Agents for: FRANKLIN FIRE INSURANCE COMPANY OF PHILADELPHIA PHOENIX ASSURANCE COMPANY, LTD. OF LONDON SAMARANG SEA & FIRE INSURANCE CO., LTD., SAMARANG, N. I. SWITZERLAND GENERAL INSURANCE CO., LTD., ZURICH, SWLD. INSURANCE COMPANY OF NORTH AMERICA PHILADELPHIA, U.S.A. I with INCREASED vitamin D EVAPORATED MILK C -Lllllllt -, A 1.- I DOCTORS APPROVE IT! LIBBY, McNEILL & TLIBBY (PHIL.) INC. FILIPINAS BLDG., MANILA underwriting FIRE MARINE MOTORCAR INSURANCE WORKMEN'S COMPENSATION - 0-~~~~~~~~~~~~ 8 The American Chamber of Commerce Journal February, 1946

Page  9 THE ESCODA By One Who Knew Them S I forget the exact date but it must have been about January 8th or 9th (1942) for I was "enrolled" in Sto. Tomas on the 6th. The camp was a mad house, and I believed I had gone mad too when a friend came with a message,-"Tony Escoda is just outside and wants to see you." But it was true. "How in hell did you manage to get in?" I asked. He grinned happily. "I'm a chauffeur," he explained. "Josefa got a pass as a Red Cross official and I'm the chauffeur of her car." For several days, the stunt was O.K. Into camp the two of them would come, showing their passes at the gate, always loaded with whatever they could get (one morning it was 15, cots), and bringing messages from loved ones and friends outside. Tony always had the morning news as broadcast by KGEI typewritten on a thin sheet of paper. Ford Wilkins would make copies, and circulate them among trusted friends. It finally got to where a regular crowd of Tony's friends would be waiting each morning in front of the main building to get the news and personal messages from him. That couldn't go on very long in a Japanese controlled camp. First. they took away Tony's pass as chauffeur of Josefa's car. Shortly after, they cancelled her pass, and that was that. The Escodas could no longer visit their friends in Sto. Tomas, but their work and their faith did not falter. I spent an hour with Tony and Josefa the latter part of May, 1942. I was given an eight-hour pass. I remember I applied for it on April 7th, and through persistence, a certain modicum of ingenious falsehood, and the help of Carroll Grinnell I finally got it about May 29th. And I heard the story of the "Death March" from Tony himself. Wondering if the rumours they heard were true, Tony and Josefa had managed to get to Capas before the march was ended. He saw it with his own eyes. He was Josefa's chauffeur, and while she was negotiating with the Japanese for relief work, he (true newspaperman) proceeded to investigate on his own. He saw an officer and a soldier killed in cold blood. He saw the bodies of other victims. He saw the stark horror in the faces of survivors, existing somehow without food, with out water. And the Escodas' destiny was set. From that time to the end, Tony and Josefa devoted their lives to those most unfortunate of people, the prisoners of war. I remember the look in Tony's eyes as he told of men tortured by thirst. There was no water in the prison camp, and the first thing these two did was to get one of Manila's water sprinklers up to the prison camp to haul water in. Wisely, they divided the work between them. Josefa, a more successful dissembler than Tony, talked the Japanese officers into furnishing the passes without which nothing could be done. Tony got the sprinkler and drove it to the camp. With true vision, Josefa made her plans carefully. She put the National Federation of Womens' clubs into business. Whenever a prison camp was established, there, or in some nearby place, she was permitted' by the Japanese to open a Federation store. And these stores (ostensibly opened for business reasons) provided ways and means of maintaining contacts with the prisoners. Josefa told me on one occasion that she had to open a store in Lucena first, before the Japanese permitted her to operate in Los Banios. With the Lucena store operating, she was able to persuade them to allow her to open one in Los Banios because that was on the way to Lucena. During the latter part of 1943, I was given an official camp pass that permitted me to go out into the city on camp business. Tony and Josefa were living in an apartment on Colorado St. I saw them frequently during Sentember, October, and November. Tony was making at least one trip and sometimes two every week to Cabanatuan: always loaded down with supplies, with medicines. with money, and with messages for the nrisoners. Always in the gravest danger. for he and his truck were freouentlv searched. What were the packages? Sunplies for the Federation's store, he would answer. And the notes and money were never discovered. Getting these things to Cabanatuan was one thing. Getting them into the camp was another, and a far more serious problem. But the thought of personal danger never interfered with the work of these two; and it was always done somehow. The last time I saw Tony was on November 30, 1943 (my last trip out of camp, as the Japanese had refused to renew my pass for December). We had lunch together at Gladys Savary's place in Pasay. Tony was thin and careworn. He was in the middle of preparations for Christmas in the prison camps. It was becoming more and more difficult to maintain contacts with the camps. And more camps had bee'n, found. Permission had finally been secured to get a few relief supplies into the notorious Pasay Elementary School camp (one truck every 2 weeks, I think it was, for 800 men who for months had barely managed to exist). But two other camps of American prisoners in Manila had been discovered, which, Tony said, were even worse than Pasay-Nielson Field Camp with 300 men and Engineer Island camp with about 200. Conditions in the latter, Tony told me, were far worse than the others, bad though they were. He had just learned about Engineer Island camp, and when he left me, he was on his way to do something about it. That was the last personal memory I have of Tony, and it is a beautiful one to have. I IIr I I THE AMERIC^A. Fe COMMERCE IS A QUALITY ADVERTISING MEDIUM Let us carry your message to a SELECT public every month. I The American Chamber of Commerce Journal February, 1946 9

Page  10 THE COMMERCE L Published Monthly in Manila, Philippines The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor H. A. Linn, Business Manager Entered as second class matter May 25, 1921, at the Post Office at Manila, P. I. Subscription rates: One year in the Philippines, P5.00; United States, $5.00 U. S. Currency. American Chamber of Commerce of the Philippines Directors Wm. H. RENNOLDS, President Samuel Garmezy AMOS G. BELLIS, Vice-President E. M. Grimm E. BYRON FORD, Treasurer J. A. Parrish A. I}. Calhoun Julius S. Reese John F. Cotton during the occupation that remained unsettled at the time of liberation. The HC plan says (Sec. 4) that these "shall be re-valued.... on the basis of the relative values of the Japanese military notes and the Philippine peso on the date the obligation was incurred." The PC plan says (Sec. 4) that these "shall be liquidated in accordance with the value of the Japanese military notes in relation to the Philippine peso obtaining on the date when and at the place where the obligation was incurred." But the HC plan sets up a sca'e of relative values between the two currencies at different times that would apply to all transactions, while the PC plan leaves the determination of the relative values to court action in each case. In other words both plans operate to protect the debtor by preventing the creditor from collecting more in terms of general exchange value than he loaned originally. This agreement between the two plans comes to an abrupt end in considering the last type of obligations — those incurred before the war and settled during the Japanese occupation. The HC plan says (Sec. 2a) that payments on these obligations "shall be revalued in Philippine Pesos on the basis of the relative value of the Japanese military notes and the Philippine peso on the dates of such payments." The PC plan, as we have pointed out above, includes these obligations with those incurred and settled during the occupation and says positively that all such payments are valid at their face value. The only consolation the PC plan offers the creditor is the rather sardonic advice to sue-Section 9 admits the right of the creditor "to claim reparation for damages suffered as a result of the application of this Act." Out of this analysis appears the strange fact that the PC plan in every particular is for the benefit of those who used the Japanese military notes. Those who paid pre-war obligations in Japanese military notes are fully protected. And again those who borrowed Japanese military notes are fuily protected. That it forsakes even a pretense of being a "just" settlement of the economic relationships involved can be easily illustrated. The PC plan says, in effect, that if Mr. A borrowed P10,000 in May, 1944, he now has to repay only P850. Why? We know the answer to that one. Because ir terms of actual' exchange value, he only borrowed P850. But the PC plan also provides that if Mr. A borrowed P10,000 in May, 1941, and repaid it in May, 1944; with P10,000 which had an actual exchange value of only P850, he has fully discharged his obligatoin. Why? We can't answer that one, and we feel confident that there is no one in the whole country who can answer it sensibly. Here is Mr. A who, let us say, borrowed P10,000 from the Philippine National Bank in 1941. On May 15, 1944, he walked into the PNB with P10,000 in Japanese military notes and paid his debt. Without leaving the building he borrowed another P10,000, which has not yet been re-paid. All on the same day, within the same hour. Now the framers of the PC plan say that the first P10,000 was actually P10,000. But the second P10,000 was only P850. This, we regret to say, is pure nonsense. OUR "MICKY MOUSE MONEY". PROBLEMS One of the worst of many evils inflicted by the Japanese on this counrty was the imposition of a fiat currency. Inevitably, this "Micky Mouse" money, as it was soon called, drove all good currency out of circulation to an extent that justifies the generalization that during the Japanese occupation all financial transactions were made in Japanese Military currency. And with the defeat of Japan and the restoration of legitimate government in the Philippines there remained the necessity of deciding the status of the numerous and sometimes complex financial transactions that were consummated during that chaotic period. Two plans for the settlement of this problem have been prepared-one by the U.S. High Commissoner's office which we shall call the HC plan, and one by the Philippine Congress which we shall call the PC plan. Both of these plans recognize three classifications of financial obligations that are involved: 1. Those incurred during occupation that remained unsettled at the time of liberation. 2. Those incurred during occupation and settled during occupation. 3. Those incurred before the war and paid during the occupation. With regard to the second classification, the two plans are in perfect agreement. The HC plan states (Sec. 3a) "all obligations incurred and satisfied during the period of the Japanese invasion shall be considered fully discharged." The PC plan merely includes obligations of this type with those incurred before the war, and says (Sec. 1) "all obligations thereby satisfied during the period of Japanese invasion shall be considered fully discharged." Since there was a continuous decline in the value of the Japanese peso, both plans are definitely in favor of debtors, as opposed to creditors. At first sight, the two plans appear to agree on the first classification of obligations-those incurred Notice to Subscribers This issue of the Journal is No. 2, of Volume XXII, and is dated February, 1946. Due to circumstances beyond our control, no issue was published during the month of January. We believe all problems have now seen solved and that you will get your copy on the 15th of each month. The American Chamber of Commerce Journal February, 1,946 10

Page  11 Annual Report of the President of the American Chamber of Commerce This is the first Annual Meeting of this Chamber since January, 1941, and it is with deep regret that I open this meeting with the sad announcement of the death on Sunday, January 6th of this year, of our late President, Samuel F. Gaches, whose unusual energy will be greatly missed and there is no doubt that his labors for this Chamber during the past nine months and his labors on behalf of the various companies with which he was associated contributed to his death. He came out from internment camp a sick man and should have returned to the United States for recuperation but he apparently decided that he owed it to his business associates to remain on the job. The Secretary will read a resolution of condolence for adoption by the members, the adoption of which has been recommended by your Board of Directors. Any resolution adopted is to be spread on the minutes of the meeting and a copy of the resolution to be sent to his widow. All of the Chamber's records have been destroyed and the only records now existing are the minutes of various Board meetings held since activities were resumed on February 17, 1945. On that date, five members of the Board of Directors (all that were available) gathered together and decided on immediate reorganization of the Chamber. They saw the great need of an Information Service for the benefit of the community and particularly for the benefit of the more than 5,000 interness who did not know where to go or how to get there; to secure information on outside contact with their friends and with each other. The Board of Directors appointed Acting Secretary Mr. R. S. Hendry to organize this Information Service as it was his original suggestion. As there were no banks open for business, the Chamber borrowed money thru its Directors to equip and carry on the Information Service that proved of immense value not alone to the internees and residents of the Philippines but also to many thousands in the United States who were seeking their friends and rela tives who had been interned for three years. I might mention here some of the activities of the Information Service: 1. Provision of space for interness and friends to meet and talk. 2. Provision of rooms for meetings of Directors of Companies, and other groups. 3. Delivery of messages between interness and friends outside. 4. Preparation of a card index of all interness in Manila, Baguio, and Los Banios Camps, over 16 years of age. 5. Registration of interness leaving Camp to take up their residence in Manila. 8. Registration of houses, apartments, rooms and offices for rent. 9. Publication and tion of two bulletins! distribu Bulletin No. 1-General MacArthur's Proclamation about Courts, Banks, Currency, etc. Bulletin No. 2-Houses, for rent. 10. The supplying of the services of a public stenographer. 11. The supplying of miscellaneous information on various subjects. The Chamber is still receiving by practically every mail' from the United States, requests to locate former interness and residents of the Philippines of whom all track had been lost by the inquirer. The operations among other things included investigations of deaths of former residents and interness and (Continued on page 22) 6. Registration 'of new dresses of refugees from southern part of Manila. adthe 7. Registration of people seeking employment. WHEREAS, God in His Almighty wisdom saw fit to call unto Him Samuel Francis Gaches on the sixth day of January 1946; WHEREAS, Samuel Francis Gaches, was a member of this Chamber from its organization and was elected president of this Chamber for several successive terms and was president at the time of his death; WHEREAS, Samuel Francis Gaches served this Chamber and all it represents with fidelity and inspiring leadership, and his courageous outlook at all times, especially during times of distress and upheaval', showed leadership of the highest quality; WHEREAS, this Chamber, its officers, directors and members deeply mourn the loss of this great leader and good friend and desire to express their grief and to transmit their most profound condolence to his widow and to honor his memory; NOW, THEREFORE, BE IT RESOLVED, that this resolution of condolence be adopted and spread upon the minutes of this Chamber and a copy duly signed by the acting president ibe transmitted to the widow of the deceased. AMERICAN CHAMBER OF COMMERCE AMOS G. BELLIS Vice-President The American Chamber of Commerce Journal February, 1946 11

Page  12 THE BELL BILL as introduced in Congress on November 14, 1945 Be it enacted by the Senate anlt House of Representatives of the United States of America in Congress assembled, That during the period of eight years beginning July 4, 1946, trade relations between the United States and the Philippine Islands shall be as provided in section 301, title III, of the United States Tariff Act of 1930, subject only to the exceptions and provisions set forth in this Act. SEC. 2. During the period commencing with July 4, 1954, and ending July 3, 1979, an exclusively preferential duty equal to 4 per centum of the United States duty shall be levied, collected, and paid in the United States on Philippine articles entered, or withdrawn from warehouse, for consumption, except as otherwise hereinafter specifically provided. During the same period, an exclusively preferential duty equal to 4 per centum of the Philippine duty shall be levied and paid in the Philippine Islands on American articles entered, or withdrawn from warehouse, for consumption. On each succeeding July 4 thereafter these preferential rates of duty shall be progressively increased by an additional 4 per centum of the United States import duty and of the Philippine import duty, respectively. No third country, including Cuba, shall be entitled to any benefits arising under this agreement. SEC. 3. Notwithstanding the provisions of section 6 of the Act of March 24, 1934, entitled "An Act to provide for the complete independence of the Philippine Islands, to provide for the adoption of a constitution and a form of government for the Philippine Islands, and for other purpose" (48 Stat. 459), as amended by the Act of August 7, 1939 (53 Stat. 1226; U.S.C., title 48, sec. 1236), no United States duty shall be levied, collected, or paid upon any of the Philippine articles entered or withdrawn from warehouse during the period commencing with the enactment of this Act and ending July 4, 1946. SEC. 4. The total amount of all Philippine sugars coming into the United States which may be entered or withdrawn from warehouse, for consumption in any calendar year, shall not exceed eight hundred and fifty thousand long tons, net commercial weight, of which not to exceed fifty thousand long tons, net commercial weight, may be refined sugars: Provided, That the quota for unrefined sugars, including that required to manufacture the refined sugars, established by this section shall be allocated annually to the sugar-producing mills in the Philippine Islands whose products were exported to the United States during the calendar year 1940, proportionately on the basis of their average annual production for the calendar years 1931, 1932, and 1933, and the amount of sugar from each mill which may be so exported shall be allocated in each year between the mill and the planters on the basis of the proportion of sugar to which the mill and the planters are respectively entitled: And provided further That the quota for refined sugars established by this section shall be allocated annually to the manufacturers in the Philippine Islands of refined sugar whose products were exported to the United States during the calendar year 1940, proportionately on the basis of their exports to the United States during the calendar year 1940. SEC. 5. The total amount of all Philippine cordage coming into the United States which may be entered or withdrawn from warehouse, for consumption in any calendar year shall not exceed six million pounds, net commercial weight: Provided, That the quota for cordage established in this section shall be allocated annually to the manufacturers in the Philippine Islands of cordage whose products were exported to the United States during the calendar year 1940, proportionately on the basis of their exports to the United States during the calendar year 1940. SEC. 6. The total amount of all Philippine coconut oil coming into the United States which may be entered or withdrawn from warehouse, for consumption in any calendar year, shall not exceed two hundred thousand long tons, net commercial weight: Provided, That the quota for coconut oil established in this section shall be allocated annually to the manufacturers in the Philippine Islands of coconut oil whose products were exported to the United States during the calendar year 1940, proportionately on the basis of their exports to the United States during the calendar year 1940: And provided further, That all coconut oil exported from the Philippine Islands to the United States shall be rendered unfit for use as food or for the manufacture of edible products by, such means as shall be satisfactory to the Secretary of the Treasury and under regulations to be prescribed by him. SEC. 7. The total number of all Philpipine cigars, excluding cigarettes, cheroots of all kinds, and paper cigars and cigarettes coming into the United States which may be entered or withdrawn from warehouse, for consumption in any calendar year, shall not exceed two hundred million: Provided; That the quota for cigars established in this section shall be allocated annually to the manufacturers in the Philippine Islands of cigars whose products were exported to the United States during the calendar year 1940, proportionately on the basis of their exports to the United States during the calendar year 1940. SEC. 8. The total amount of all scrap tobacco and stemmed and unstemmed filler tobacco described in paragraph 602 of the United States Tariff Act of 1930 coming into the United States which may be entered or withdrawn from warehouse, for consumption in any calendar year, shall not exceed six million five hundred thousand pounds, net commercial weight: Provided, That the quota for scrap tobacco and stemmed and unstemmed filler tobacco established in this section shall be allocated annually to the exporters in the Philippine Islands of such tobacco during the calendar year 1940, proportionately on the basis of their exports to the United States during the calendar year 1940. 12 The American Chamber of Commerce Journal February, 1946

Page  13 SEC. 9. The total amount of all Philippine buttons of pearl or shell coming into the United States which may be entered or withdrawn from warehouse, for consumption in any year, shall not exceed eight hundred and fifty thousand gross: Provided, That the quota for buttons of pearl or shell established in this section shall be allocated annually to the manufacturers in the Philippine Islands of buttons of pearl or shell whose products were exported to the United States during the calendar year 1940, proportionately on the basis of their exports to the United States during the calendar year 1940. SEC. 10. The total amount of all Philippine embroideries coming into the United States which may be entered or withdrawn from warehouse, for consumption in any year, shall not exceed the number of pounds, net weight, of Philippine embroideries which came into the United States and were entered or withdrawn from warehouse, for consumption during the calendar year 1940 as may be determined by the Secretary of the Treasury: Provided, That the quota for embroideries established in this section shall be allocated annually to the exporters in the Philippine Islands of embroideries during the calendar year 1940w proportionately on the basis of their exports to the United States during the calendar year 1940. SEC. 11. On or after January 1, 1948, the Congress may establish quotas for Philippine articles other than those for which quotas are established in this Act, which may come into substantial competition with like United States articles: Provided, That the United States Tariff Commission shall find after due investigation and hearings that the cost of production of the Philippine article is 20 per centum or more below the cost of production of the United States article: Provided further, That no quota established under this section shall be less than the total amount of the article for which the quota may be established coming into the United Statesg during the twelve months immediately preceding the date upon which the United States Tariff Commission began the investigation under the provisions' of this section: And provided further, That the Congress shall provide for the alloca tion of quotas established under the provisions of this section. SEC. 12. During the first nine months of any calendar year, the holder of any allotment under any of the quotas established by or under the terms of this Act whose facilities for production, manufacture, or export have been impaired by reason of war, invasion, fire, flood, tornado, or other casualty may transfer or assign all or any amount of his annual allotment on such terms as may be agreeable to the parties in interest. If, after the first nine months of any calendar year, the holder of any allotment under any of the quotas established by or under terms of this Act, is or will be unable for any reason td export to the United States by the end of the calendar year all of his allocation for that year, that amount of such allotment which it is established by sufficient evidence cannot be exported to the United States during the remainder of the calendar year may be reallocated to other holders of allotments under the same quota: Provided, That no transfer or assignment or reallocation under the provisions of this section shall diminish the allotment to which the holder may be entitled in any subsequent calendar year. SEC. 13. Nd processing tax or other internal-revenue tax shall be imposed or collected in the United States on Philippine coconut oil, nor on coconut oil expressed or extracted in the United States from Philippine copra which has been rendered unfit for use as food ori for the manufacture of edible products, by such means as shall be satisfactory to the Secretary of the Treasury and under regulations to be prescribed by him. SEC. 14. No processing tax or other internal-revenue tax shall be imposed or collected in the United States on Manila (abaca) fiber not dressed or manufactured in any manner. SEC. 15. No rate of processing tax or other internal-revenue tax imnosed or collected by the United States Government on articles imported from the Philinnine Tslands, or byv the Philippnine Government on articles imported from the United States. shall exceed the rates imposed and collected on such articles on November 30, 1941. SEC. 16. The Philippine Government shall not impose or collect any processing tax or other internalrevenue tax on articles imported into tho Philippine Tslands bv or for the official use of the United States Government, or any Dpnartment or qnencv thereof, and the United States Government shall not impose or collect anyr processing tax or other internal-revenue tax on articles imnorted into the UJnited States for the official use of the Philippine Government or any department or agency thereof. SEC. 17. The Philippine Government shall not impose or collect on any article imported from any country other than the United States a lower rate of import duty than the United States duty on like articles, or the Philippine duty on like articles, whichever is the lower. SEC. 18. No export tax shall be imposed or collected by the United States Government on articles exported to the Philippine Islands nor by the Philippine Government on articles exported to the United States. SEC. 19. Notwithstanding any existing provision of the constitution and statutes of the Philippine Government, citizens and corporations of the United States shall enjoy in the Philippine Islands during the period of the validity of this Act, or any extension thereof by statute or treaty, the same rights as to property, residence, and occupation as citizens of the Philippine Islands. Such rights shall include rights to acquire land of the public domain, to acquire grazing, forestry, fishing, and mineral rights, and to engage in the ownership and operation of public utilities, and all such rights shall be acknowledged, respected, and safeguarded to the same extent as the same rights of citizens of the Philippine Islands. No (Continued on page 27) III - I, THE NEW BELL BILL An authentic copy of the amended Philippine Trade Act of 1945 as introduced by Mr. Bell on January 21, 1946, was received in Manila too late for publication in this issue of the Journal. Brief examination discloses that it contains the following important changes from the original bill as published herewith: 1. The 4% charge which commences on July 4, 1954, is increased by an additional 4% "on each succeeding January 1 thereafter" instead of continuing without increase to July 4, 1979. 2. Quotas established for sugar, cordage, cigars, scrap tobacco, coconut oil and buttons of pearl or shell are the same as in the original bill. The quotas for the last four items are duty free but are reduced in quantity by 4 % of the original quotas each year beginning January 1, 1955. All shipments in excess of the duty-free quotas shall be subject to the full United States duty. 3. No quota is established for embroideries. The American Chamber of Commerce Journal February, 1946 13

Page  14 Inflation And Cost Of Living In Manila During The Japanese Occupation by CESAR M. LORENZO Upon the Japanese entry into Manila on January 2, 1942, a military proclamation on the use of Japanese military notes in the Philippines was issued. The Filipino people were required to accept the Jap currency in addition to and at par with the legal Philippine currency then existing in the amount of P241,291,974 or P14.03 per capita of population. No definite information on the amount of military notes in circulation could be obtained, as the Japanese kept the figures top secret. Nevertheless, from the data gathered clandestinely from the office of the Southern Development Bank, a Japanese-controlled financial institution for the exploitation of Philippine industries and resources, a rough estimate of the military issues in circulation in mid-1944 was two billion pesos, and towards the end of the same year until early 1945 the circulation could have reached the staggering amount of from eight to ten billion pesos, or P543.00 per capita of population, The circulation of Japanese military money had virtually placed the entire wealth and resources of the Philippines in the hands of the Japanese forces. Millions upon millions of "mickey mouse" money went into circulation everyday as Japanese soldiers used military notes in payment for Filipino foods they ate, for Philippine war materials they bought and for Filipino labor they hired. Since those notes were not backed up by metal reserves, requirement for their acceptance in payment for goods and services had the same effect as confiscation, with the only difference that the damage or loss, instead of being limited to a few, became widespread, for it was distributed among and shared by all those to whom the unredeemable notes were passed. The effects of inflation arising from the unlimited circulation of Japanese military notes was inevitable; in fact it was the natural result of the economic law of supply and deReprinted from the "Bulletin of Philippine Statistics," Vol. I, No. 1. mand. The Japanese military government knew this, but did nothing to restrict its use of the worthless currency. Instead, in its attempt to minimize the effects of inflation, it devised means of absorbing what was imagined to be excess purchasing power of Filipino nationals. It issued military proclamations requiring forced savings among Filipino employees, reduced salaries of government personnel, and limited withdrawals from banks to P500 per person a month. These measures, instead of curbing inflation and alleviating the sufferings of the people, rendered more acute the misery of the rank and file of Filipinos, for while their income and purchasing power were kept down, the prices of goods they consumed continued rising. As it was not the intention of the Jap-sponsored government to control the circulation of the military issues, the consequent inflation in prices could not be held in cleck. This was further aggravated by the rapid exhaustion of the supply of goods in view of the large quantities reserved for and consumed by the Japanese Army and Navy, and the amounts exported to Japan and elsewhere. Other contributing factors to price inflation were: (1) velocity of turnover of money, (2) the impotency of the Japanese control organizations on account of the negative attitude of the Filipino people towards the Japcontrolled propaganda, (3) the racket started by Japanese officers and sentries in accepting bribes from traffickers in prime commodities, (4) the increasing cost of transportation facilities and freight spaces, (5) the hoarding of goods and cornering of the market, and (6) the increase in the amount of risk due to possible confiscation and spoiling of foodstuffs. The effect of the inflation in prices on the economic and social life of the toiling masses in Manila may now be considered. To do this it was necessary to make an analysis with the aid of price statistics. The dearth of materials during the Japanese occupation limited the price statistics to the cost of living. The index numbers or simply indexes of the cost of living was used as a statistical measure for making an analysis of the changes in the cost of goods and services customarily or normally purchased by the families of wage earners and low salaried clerks in Manila from month to month. With the indexes it was also possible to make estimates of monthly normal expenditures of current prices, to show changes in the purchasing power of the "mickey mouse" peso in wages and salary levels, in consumption, and in the standard of living from time to time. The costof-living indexes were computed by using a standard method employed for the same purpose in the United States and in many European countries, and the weights selected were those determined from the study of the cost of living of laborers in Manila undertaken by the Department of Labor in 1938. The base period for the indexes in 1941. The average monthly living expenses of an average family of five persons among wage earners and low salaried clerks with a monthly income of less than P50 during the period was P39.06. Of this amount, P22.36 was spent for food; P4.69 for house rent; P1.93 for clothing; P3.56 for fuel, light and water and P6.52 for miscellaneous items, including transportation, laundry, cigars, cigarettes, matches, haircut, medicines, and movies. It may be surprising but true that at that time there were low-salaried clerks and wage earners whose families were able to live on their meager incomse ranging from P25.00 to P30.00 a month. This was possible because the prices of prime commodities then were very much lower than those during the Japanese occupation. The inflationary progression in the cost of living in Manila may be divided into three stages: viz., the early stage, the critical stage, and the explosive stage. During the early stage there was a tendency for the effects of inflation on the cost of living to 14 The American Chamber of Commerce Journal February, 1946

Page  15 lag far behind the degree of inflation developed. In other words, the rate of rise in prices of commodities during this period was much slower than the rate of increase in the amount of paper money in circulation. This stage started in Jan., 1942 and continued through the middle of 1943. The rate of reaction on the cost of living turned sharply upward beginning July, 1943 and this marked the beginning of the critical stage which lasted until the first quarter of 1944. Immediately following this period, the explosive stage of the inflationary progression in the cost of living began and this stage continued until January, 1945, when speculation became utterly uncontrollable, and the public's reaction on prices became motivated not by rational analysis but by mob hysteria. During the critical and explosive stages, there were some accidental factors, chief among which were the typhoon in November, 1943 and the first Am:erican bombing of Manila in September, 1944, that accelerated the inflation in the cost of living. Parallel to these different stages were the corresponding phases in the upward trend of the cost of goods and services normally purchased by the families of wage earners and low-salaried employees in Manila. As has been already observed, the cost of goods and services bought by these families in 1941 was P39.06. In July, 1943 this amount rose to P113.13, of which P81.41 represented the cost of food alone, and towards the end of the same year the cost of living went further up to P511.26, with P388.12 spent for food Meanwhile the general level of small salaries had registered an increase of about 25 per cent only, and wage levels probably gained also the same rate. When this increase in the earnings of the wage earners and low-salaried clerks is compared to the rate of increase of more than 1000 per cent in the cost of goods and services normally purchased by them, it is hard to believe that this group of people in Manila could have survived the inflation. One sure effect of this inflation of prices was the deterioration in the 1941 standard of living of these consumers to an extent equal to the inverse proportion of the cost of goods and services purchased by them in 1941. These consumers had resorted to using all sorts of cheaper substitutes, to eliminating less essential necessities, to consuming goods not only of poorer quality but also in reduced quantity, to selling personal properties if there were any, to engaging in the "buy and sell" of prime commodities on a small scale, and at times, by sheer force of necessity, to "looting and selling." The inevitable net effect of the uncontrolled inflation was slow starvation, not only among the lowest income group, but even among the middle class who did not choose to engage in the "buy and sell" business. Gradually but steadily the grip of inflation upon the laboring class in Manila became tighter and tighter until the first month of 1945, when the height of the inflationary progression hit the peak of about P34,000 as the amount necessary to buy the prime necessities of life as of 1941. Hundreds of people could be seen dying of starvation daily in Manila during the latter part of Japanese occupation. In brief, the Japanese control system proved futile insofar as curbing the inflation in prices of commodities in Manila was concerned. This fail'ure was due to a number of causes, chief among which were (1) the unrestricted issuance of military notes by the Japanese authorities (Contiumed on page 25) 11 The American Chamber of Commerce Journal February, 1946 15

Page  16 NATIONAL CITY BANK READY For WORLD TRADE RESUMPTION From the Annual Report for 1945 we quote "Foreign Operation" the section The year saw the safe liberation of the members of our staff and their families interned in the Philippines and China. By the two boldly planned and brilliantly executed expeditions of the Army, with the help of Philippine patriots, our people in the camps at Santo Tomas and Los Bafios in the Philippines were freed, and a few hours later we received the welcome cables reporting them safe and reasonably well. In a few weeks they were in the United States for needed medical care and rest. While they suffered from serious malnutrition, we are glad to report that all are now in restored health and are back at work. The internees in China were released shortly after V-J Day after enduring many hardships. All of our people testify to their debt to loyal Philippine and Chinese staff members, friends and servants who in many cases risked their lives to procure food, medicine and other aid. We are glad to be able to report that the only casualty from the whole group of 47 persons interned at the outbreak of war was one officer who died of a malady probably unrelated to the special circumstances. The condition of the branches in enemy occupied areas as we were able to reoccupy them again has proved to be better than we had feared, and the reserves we set up still appear to be more than adequate to cover any possible loss. For the Philippines we had a small staff from the United States ready to enter Manila shortly after the Army. They found the premises, which we rent, with walls and roof standing but windows gone and the interior a mass of rubble. Rough repairs were made and we reopened for business on June 28, 1945, the first bank to reopen. The local staff has been reassembled, with few losses, and our business volume has been large for the armed forces, American business, and for local business and individuals. It was interesting that the first rush of people came to deposit money and buy U. S. War Bonds. In Manila there are still problems to be worked out as to the status of old loan and deposit accounts in view of transactions in Japanese occupation pesos carried out by the Japanese liquidator who took over our branch. Fortunately our records are good, due partly to having copies of the more important records here, and partly to the loyalty of several Philippine staff members who kept track of operations of the Japanese liquidator during the occupation period. We have reopened for limited operation in Singapore, Hongkong, Shanghai, and Tientsin where in each case we found our building usable. With the exception of straightening out the records and obtaining agreement on the effect of occupation operations of the Japanese liquidators, we anticipate few serious difficulties; our staffs there are now ready to serve our Army and Navy and American business. Reopening of other branches in the Far East will depend, first, on the needs and requests of our armed forces, and second, on the reestablishment of conditions under which foreign trade can be carried on safely and with profit. The private enterprise principle of conducting business is the most powerful force we know for fostering the exchange of goods and the mutual improvement of living standards. It can only operate in an atmosphere of peace and justice and respect for private property. Where these conditions exist, but only there, do we find that we and other American business can operate successfully. Everywhere the coming of peace has brought an immediate pickup in the commercial movement of goods through familiar channels. This is reflected in the activity at Head Office and at all our foreign branches, especially in South America and the Caribbean. The daily list of commercial credits opened to finance trade is steadily growing longer. As an illustration of transactions we are financing in this way, we list the following: $ 222,000.00 Coffee from Haiti to USA 7,000.00 Iron sheets from Belgium to Argentina 1,895,000.00 Cotton from USA to Spain 185.00 Cotton piece goods from USA to Cuba 34,000.00 Macaroni from USA to Ireland 163,000.00 Woolen yarn from USA to Colombia 180.00 Sun glasses from USA to Iraq 20,000.00 Pearl shell from Tahiti to USA 6,000.00 X-Ray equipment from USA to Salvador 121,000.00 Cotton from Brazil to Sweden 657.50 Tin plate from USA to Brazil 2,700.00 Zippers from Brazil to Sweden 37,000.00 Bicycle tires from Brazil to Holland 31,500.00 Oranges from USA to Iceland 1,350.00 Fountain pens from USA to Chile 45,500.00 Coffee from Ecuador to Cuba 688.82 Asparagus from Argentina to Sweden 10,000.00 Sombreros from Colombia to Argentina 550,000.00 Raw silk from China to USA 100.00 Wire glass from USA to Sweden 7,500.00 Butter from Argentina to Portugal 58,600.00 Ladies silk stockings from Brazil to Sweden As the new year begins we have in active operation 44 foreign branches: 35 in South and Central America, 2 in London, 2 in India and the reopened branches in Manila, Singapore, Hongkong, Shanghai and Tientsin. * * * 16

Page  17 Cooperative Movement in the Philippines by LUIS AGUDO, Sr. In 1915 the Philippine Assembly enacted a bill entitled "An Act Regulating the Creation and Operation of Rural Credit Cooperative Associations." The law sought to create a special type of cooperative patterned after the Raifeisen System in Germany. This law went into operation in 1916 when a Rural Credit Section was created in the former Agricultural Extension Division of the Bureau of Agriculture. A. D. "Deacon" Prautch was the Chief of this Division and he started the work by organizing the first rural credit association in Cabanatuan, Nueva Ecija. There were organized 571 of these associations with a membership of almost 100,000. The Government set aside P1,000,000.00 to carry out the provisions of this law. The purpose was to create credit facilities for the farmers in rural communities. Act No. 3425, known as the "Cooperative Marketing Law," was passed in 1927 and the government initiated a new special type of cooperative thereby. Acting Governor General Eugene Gilmore approved this bill on December 9, 1927. Since the passage of this law 185 organizations with a membership of approximately 20,000 had been established. The purpose of the law was to afford the farmers facilities for marketing their products by eliminating unnecessary middlemen. Most of this type of cooperative were organized in the tobacco region of the Philippines. Later similar cooperatives were organized in the coconut and abaca regions. In 1940, Act No. '565 was passed by the National Assembly. The object of the law was to promote, organize, and supervise all types of cooperatives in the Philippines. Five million (P5,000,000.00) pesos were appropriated by the Government to carry out the provisions of this law. Before the war broke there were in operation the following types of cooperatives: (2) 15 or more persons can organize a cooperative; (3) Cooperative enterprises are exempt from taxes for a period of five years; (4) Dividend on capital not more than 8%o per annum; and (5) Patronage dividends based on purchases of individual members. In the middle of 1941, the late President Quezon issued Eixecutive Order No. 398 creating the National Cooperatives Administration to take charge of the promotion, organization and supervision of cooperatives in the Philippines. The Rochdale principles were introduced as the basic principles of cooperatives in the Philippines. These are (1) Open membership and ownership, irrespective of political affiliation, or religion; (2) Democratic control - one man, one vote; (3) Limited returns on capital; and return of gains to members through patronage refunds; (4) Regular provisions of funds for promotional and educational work; (5) Cash trading; (6) Trading at market prices; and (7) Regular provision for the building up of substantial reserves. After the liberation of the Philippines, the Emergency Control Administration gradually took over the PCAU distribution of relief goods from the Army. Due to numerous anomalies committed by the authorized ECA retailers and due to the small number of stores, large numbers of the residents in Manila urged the forming of cooperatives. Mr. Anastacio de Castro, executive officer of the ECA, designated Mrs. Felicidad S. Manuel to take charge of the organization of cooperatives in Manila. Organization of cooperatives in Manila was followed by the organization of cooperative associations in the provinces. On August 13, 1945, with about 49 member-cooperatives, the National Cooperative League of the Philippines was organized with Mrs. Felicidad S. Manuel as President. The National Cooperative Administration, through congressional enactment of the Philippine Congress in November, 1945, was recreated with a fund of P5,000,000.00. On November 19, 1945, the board of directors was reorganized to give provincial cooperatives representation on the board. Mrs. Manuel was again elected President. Anastacio de Castro was appointed general manager and Luis Agudo, Sr., and Juan Baluyot assistant general managers. The members of the Board were: Officers and Members of the Board of Directors 1945 Mrs. Felicidad S. Manuel, President Dr. Alejo Perez, Vice-President Justq Ibay e Isip, Secretary Epifanio Va. Gaminde, Asst. Secretary Mrs. Epifania V. Gamboa, Treasurer Andres Gorospe, Auditor Juan Baluyot, Assist. General Manager Anastacio de Castro, General Manager Luis Agudo, Sr. Assistant General Manager Members Guillermo Capadocia Isidro Aquino Amado V., Hernandez Nicanor Lotuaco Eusebio Dalagan Cornelio S. Ruperto With P15,000.00 capital and with about 120 member-associations, the League started business operation on December 1, 1945. From December 1, 1945, to January 10, 1946, for a period of only five weeks, the League's business operations may be reflected from the following: Sales............... P470,174.58 Purchases......... 457,830.02 Paid-up capital..... 54,800.00 No. of members, paidup, as of Dec. 31, 1945............. 481 Furniture & equipment 4,006.00 Salaries and wages.. 2,388.48 Miscellaneous Expenses.............. 341.20 Stock on Hand...... 15,000.00 Estimated net profit 18,000.00 Most of the commodities handled were foodstuffs, textiles, small hardware articles, canned goods, imported (Continued on page 20) Rural Credit Coop Assns. Cooperative Marketing Coops Consumers Coop Associations Credit Unions 571 185 245 17 The salient provisions of Act No. 565 are: (1) Only citizens of the Philippines and of the United States are qualified to become members of cooperatives; The American Chamber of Commerce Journal February, 1946 17

Page  18 INDEX NUMBERS OF COST OF LIVING OF WAGE EARNER9 IN MANILA: 1941-1945 1941 - 100 Fuel Year and month All Food House Clothing light and ella items rentwater neous 1941 Monthly average......... 100.0 100.0 100.0 100.0 100.0 100.0 1942 January................. 107.7 122.3 50.0 105.0 102.0 103.0 February................ 115.5 133.9 50.0 110.0 105.0 107.0 March................... 129.4 154.9 50.0 115.0 110.0 114.0 April................. 134.7 159.1 50.0 140.0 115.0 121.0 May.................... 143.3 168.6 50.0 165.0 120.0 130.0 June................... 157.4 187.4 50.0 192.0 125.0 139.0 July.................... 169.6 203.0 50.0 219.0 130.0 148.0 August.................. 181.7 218.2 50.0 246.0 135.1 158.0 September............... 186.2 224.5 50.0 251.1 128.4 165.3 October.................. 198.5 238.4 50.0 261.2 138.8 182.5 November............... 208.6 239.7 50.0 371.1 146.2 202.1 December................ 200.7 210.4 50.0 409.8 138.2 220.6 1943 January................. 207.5 221.7 50.0 444.6 127.6 245.5 February................ 221.2 232.0 50.0 661.8 125.0 229.3 March................... 245.9 240.3 50.0 1,039.8 122.4 232.7 April................ 271.8 256.4 50.0 1,437.7 124.5 219.5 May................... 263.3 278.7 50.0 956.6 129.8 231.5 June................... 247.1 299.3 50.0 340.6 153.6 233.5 July..................... 267.4 325.2 50.0 340.6 174.2 254.7 August.................. 384.8 480.1 50.0 560.9 284.4 301.5 September............... 437.6 538.8 50.0 816.6 289.8 337.9 October.................. 503.9 653.1 50.0 883.1 194.3 375.9 November............... 724.2 899.6 50.0 1,984.6 242.2 498.3 December............... 1,196.8 1,540.2 50.0 3,448.0 273.5 682.7 1944 January................. 1,608.6 2,211.1 50.0 3,410.8 370.2 807.0 February.............. 1,890.8 2,621.8 50.0 3,463.9 504.6 1,000.3 March.................. 1,975.1 2,611.0 50.0 4,754.6 530.6 1,142.0 April................. 2,367.2 2,854.5 50.0 9,308.8 575.8 1,207.6 May................... 3,363.3 3,920.4 50.0 16,000.0 868.0 1,460.3 June.................. 4,966.1 5,869.8 50.0 23,786.1 1,060.1 1,968.1 July..................... 7,085.9 8,793.2 50.0 30,390.0 1,063.1 2,687.2 August................. 8,155.1 11,405.1 50.0 20,971.0 1,097.5 2,904.6 September............... 15,387.0 23,725.7 50.0 19,627.0 1,544.4 4,133.9 October.................. 21,570.8 33,635.8 50.0 20,961.0 2,224.9 6,430.5 November............... 45,227.3 72,571.6 50.0 37,155.0 2,702.9 9,582.7 December................ 64,883.0 100,464.1 50.0 95,103.0 3,744.9 13,975.5 1945 January................. 87,318.6 133,388.1 50.0 150,000.1 4,908.0 18,300.0 NUMBER OF MANUFACTURING ESTABLISHMENTS IN MANILA, CLASSIFIED BY KIND OF BUSINESS AND BY CITIZENSHIP OF OWNERS: JULY, 1945 Kind of manufacturing TOTAL Citizenship of owners establishments Filipino Chinese American Others All establishments 1,608 1,226 377 3 2 Per cent distribution 100.00 76.24 23.45.19.12 Food products 76 25 51 Per cent distribution 100.00 32.89 67.11 Household furnishings and supplies 75 19 56 Per cent distribution 100.00 25.33 74.67 Textiles 608 549 59 Per cent distribution 100.00 90.30 9.70 Miscellaneous 849 633 211 3 2 Per cent distribution 100.00 74.56 24.85.35.24 18 The American Chamber of Commerce Journal February, 1946

Page  19 KNOW THE LAW! A Brief Guide to Commonwealth Legislation Since Liberation Act No. 672 (approved July 19, 1945) rehabilitated the Philippine National Bank principally by transferring to it the assets of the Banking Division of the Commonwealth Treasury, and by blocking temporarily certain public deposit accounts. Act No. 683 (approved September 25, 1945) organized the Office of Foreign Relations to take charge of all matters affecting the relations of the government of the Philippines with the United States and foreign nations. The Commissioner holds the rank of a departmnent under-secretary. Act No. 689 (approved October 15, 1945) declares that rents for dwellings "shall be presumed unjust and unreasonable if they exceed twenty per centum of the annual assessment value of the building and the lot on which it is erected." Act No. 691 (approved October 15, 1945) provides for the free distribution out of the public domain of lots of 24 hectares for cultivation purposes to citizens of the Philippines and the United States. Act No. 694 (approved October 15, 1945) organizes the "Agricultural Machinery and Equipment Corporation" with capital stock of ten million pesos "to buy machinery, tools and equipment and to sell the same to farmers." Act No. 699 (approved November 20, 1 )549r-eAipovdes 20, 1945) provides for Philippine membership in the International' Bank for Reconstruction and Development. For this purpose it fixes the par value of the peso as one half of a United States dollar of the weight and fineness in effect on July 1, 1944. Act No. 703 (approved November 1, 1945) remits land taxes for 1942, 1943, 1944, and half of 1945. On land where a building was destroyed, it remits taxes until a new building is constructed. This remission is good for not more than one year after the approval of the act. Act No. 688 (approved October 15, 1945) provides for the redemption of genuine Philippine National Bank notes. This act requires the signature of the President of the United States before taking effect. Act No. 700 (approved November 1, 1945) appropriates ten million pesos for the development of hydraulic power from the Maria Cristina Falls, Lanao. Act No. 707 (approved November 1, 1945) appropriates twenty million pesos for the rehabilitation of the Manila Railroad Company. Act No. 709 (approved November i 1945) appropriates five million pesos 'to enable the National Housing Commission created by Commonwealth Act Numbered 648 to accomplish its purposes and objects." Act No. 711 (approved November 1, 1945) appropriates five million pesos "to enable the National Land Settlement Administration created by Commonwealth Act Numbered 441 to ac complish its purposes and objects." Act No. 713 (approved November 1, 1945) creates a special fund to be known as the National Cooperative Fund and provides that this fund shall be placed at. the disposal of the board of governors of the National Cooperatives Administration "for the promotion of cooperative enterprises in the Philippines." Act No. 715 (approved November 1, 1945) creates a Commission on Reparation which shall act as an agency in determining "the most appropriate ways and means of securing indemnity for losses caused by the Japanese Armed Forces in the Philippines." Act No. 716 (approved November 1, 1945) creates the Philippine Relief and Rehabilitation Administration with a Director General who shall receive an annual salary of P12,000. Act No. 720 (approved November 1, 1945) gives concessionaires who held public land, forest or mineral concessions on January 1, 1942 a chance to resume operations where they were interrupted. 29 WSA.... (Continued forn page 5) Pasacao (Camarines Sur) Manito, (Albay) Point Kilbay (Camarines Sur) Romblon * Odiongan (Tablas Island) New Washington (Capiz) Capiz Gigante Island Bulan (Sorsogon) Masbate Magallanes (Sorsogon) Tabaco (Albay) Tacloban (Leyte) Nasipit (Agusan) Cagayan (Misamis Or.) Iligan (Lanao) Misamis (Msiamis Occ.) Jimenez (Misamis Occ.) Dipolog (Zamboanga) Cotobato Bacolod (Negros Occ.) San Carlos (Negros Occ.) Dumaguete (Negros Or.) Culion (Palawan) Puerto Princesa (Palawan) The schedure of freight rates charged in this service was drawn up by the Philippine Shipowners Association and approved officially by the Public Service Commission. It is based on the schedule in effect before the war. In 1941, freight rates on inter-island shipping were advanced 25%. The present rates approved by the Public Service Commission include that increase, and provide for an additional 35% surcharge on the original rates. In other words, the peso in inter-island shipping is now worth approximately 62 centavos, which is a lot more than it is worth in buying food or lodging or clothes in Manila. Figures recently made available disclose that during November and December, 1945, these ships carried a total of 10,371 passengers and 33,272 tons of cargo. Of the total passengers carried, 3,676 left Manila; 5,483 came into Manila from interisland ports; 1,222 were carried between way ports. In November the cargo handled was as follows: outgoing, 9,308 tons; incoming, 1,837 tons; between way ports, 2,699 tons. In December the incoming and way port figures remained approximately tne same, but the outgoing cargoes increased more than 4,000 tons, totalling 13,759 tons. Outgoing cargoes have consisted mostly of relief supplies, UNRRA clothing, flour, canned goods, salt, and petroleum products. Incoming cargoes, so far, have consisted largely of lumber and fish. The American Chamber of Commerce Journal February, 1946 19

Page  20 lcOS s.... (Convinued from page 17) cigarettes, novelties, and many other items too numerous to mention. During this period the membership grew from 120 to* 543 associations and the opeiating capital ironI P15,00.06 to about P60,00.00,..the Natiohal Cboperative Lealgu bf the Phillippines was 6rgairizd with ait authorized capital of P500,000.00 divided into 5000 shares at P100O.00 per share. tip to December 81, 1945, the nuimber of coops in operation were: Producers.......... 60 Retailers........... 43 Consumers.......... 519 Coop wholesale....... 1 Credit union......... 1 Presently there are all over the Philippines 727 registered consumers cooperative associations. Of this number, 543 are members of the League, representing roughly 210,000 family heads or approximately over 1,000,000 consumers all over the Philippines. The National Cooperative League is the only association in the Islands with an organized channel of distribution. The first convention of the League was held in Manila on January 12 and 13, 1946, at which the following were elected to constitute the board of directors: Guillermo Capadocia, President Enrique Naluz, Vice President Justo Ibay e Isip, Secretary Epifanio Gaminde, Asst. Secretary Eriberto Manabat, Member Luis Agudo, Sr., Member Nicanor Lotuaco, Member Alejo Perez, Membor Felicidad S. Manuel, Member Paquito Quiambao, Member Juan Baluyot9 Member Management Anastacio do Castro, Getietal Manager (On indefinite leave) Luis Agudo, Sr., Acting General Manager Juan Baluyot, Asst. General Manager Epifania Gamboa, Treasurer Lilia V. Embuscado, Auditor Program of Activities of the League as outlined by President Capadocia and Acting General Manager Agudo, Sr.: (1) Organization of cooperatives all over the Philippines in cooperation with the National Cooperatives Administration. (2) Organization of Provincial, City and Municipal Cooperative Leagues. (3) Holding of cooperative institutes to train managers of cooperatives and to indoctrinate the people with the principles of cooperatives. (4) Opening tip of a Leaguei Library; (5) Publication 6f a Leaguers official organ and literature oh ecI= operatives. (6) Holding of meetings, program, lecture meetings and radio programs and organization of study clubs and! discussion groups. (7) Establish connections with other cooperative movements in other countries, (8) Send pensionados abroad to Study cooperative management and to make research on cooperatives. (9) Send a purchasing agent to the United States immediately to establish business connections and to make purchases for the League. (10) Adoption of "Coop" brands to distinguish goods handled by cooperatives. (11) To engage in, land and water transportation. (12) Promotion of inter-provincial trade and household industries. (13) Engage in exportation and importation. (14) Operate a Department store. (15) Creation of a Credit Union Department in the League in order to provide credit facilities for member-associations. (16) To engage in production and manufacturing. NUMBER OF BUSINESS ESTABLISHMENTS IN MANILA, CLASSIFIED BY KIND OF BUSINESS AND BY CITIZENSHIP OF OWNERS: JULY, 1945 (Bureau of the Census and Statistics) Kind of manufacturing TOTALCitizenship of owners establishments Filipino Chinese American Other All establishmenst 8,947 6,909 2,008 16 14 Per cent distribution 100.00 77.22 22.44.18.16 General stores 4,295 3,304 878 4 9 Per cent distribution 100.00 76.93 22.77.09.21 Primarily food stores 98 67 31 Per cent distribution 100.00 68.37 31.63 Primarily apparel stores 266 160 106 Per cent distribution 100.00 60.15 39.85 Primarily farm products 6 6 Per cent distribution 100.00 100.00 Hardware and building materials 265 102 162 1 Per cent distribution 100.00 38.49 61.13.38 Drugs, chemicals and liquors 393 337 53 2 1 Per cent distribution 100.00 85.75 13.49.51.25 Other merchandize establish- 3,051 2,446 596 6 3 ments Per cent distribution 100.00 80.17 19.53.20.10 Recreation establishments 82 75 5 1 1 Per cent distribution 100.00 91.46 6.10 1.22 1.22 Other service establishments 491 412 77 2 Per cent distribution 100.00 83.91 15.68.41 rs 20 February, 1946 20 The American Chamber of Commerce Journal February, 1946

Page  21 Housing... (Continued from poffe 6) necessary funds and procedures. Among the specific powers which it should have are the followingt (a) Finante its own project with ora without subsidies, and issue and sell its own securities to the public; Cooperate with the National Planning Body in replanning the cities and municipalities and should make drawings, sketches, plans, estimates and do all those things which are necessary or directed towards the elimination of slum areas and the provision of low rental dwellings for those who are not able to provide for themselves; (b) Act as the official housing body for the City of Manila and such other localities as are unwilling and unable to provide adequate machinery and financing for themselves; (c) Investigate living conditions of all the municipalities and chartered cities, prepare plans, and make recommendations for improving such conditions; (d) Determine where unhygienic and insanitary conditions exist and recommend plans for improvement; (e) Publish and disseminate information and encourage provinces and chartered cities to organize housing authorities of their own; (f) Prepare plans not only for specific projects but for the development of larger areas in the future; (g) Carry out such projects and operate them when the funds are provided by the Commonwealth Government, by the localities, and the sale of bonds of the Commission based upon the security of the projects; (h) Determine which areas are insanitary and unhygienic and when it is advisable and necessary to employ power of condemnation; (i) Operate, lease and manage any project or undertaking; (j) Act as the agent and disbursing officer for the National Govern tnent in connection with any riatidrial or local project which is erected in whole or in part with funds of the National Government, (k) Arrange with the government authorities, national or local, for the planning of the areas, opening and closing of streets and other publfc places or ways and have power to acquire property by condemnation or gift or purchases; (1) Lease, rent or operate rany housing project, establish and, revise rents which should be charged therefor, receive funds or subsidies from the Government and distribute such subsidies to all its projects and those of the housing authorities established by the provinces and chartered cities. (m) Invest any funds held in reserves which are not required for immediate disbursements in property or securities subject to the approval of the Department of Finance; (n) Sue and be sued, make and execute all contracts or other instruments necessary for the exercise of its powers; (o) Conduct examinations and investigations, take proof under oath and require the attendance of witnesses and the production of books and papers. The law should provide not only for the National Housing Commission but for the establishment of local housing authorities in the provinces and chartered cities which shall have similar powers to those granted the National Housing Commission, excepting the projects and plans of the local housing authorities shall be subject to the approval of the National Planning Commission and the National Housing Commission. The local authorities should report their progress and financial condition each year to the National Housing Commission which should make an annual report to the President and Congress which will include the progress made by various local authorities. All subsidies which are given by the Conmmonwealth Government to local authorities should be supervised and controlled by the National Housing Commission. The National Housing Commission and all local hiduslig authorities should be required to make annual reports giving in detail the amount expended, cost of land, construction of buildings, amount of loan and subsidies, operatingl expeises, income firom rents and other services; Both the National Housing Commission and the local housing duthorities should be empowered to sell their own bonds and securities to the public and to banks and investing corporations. Subsidies should be granted by the National Government and by the local governments only when it is necessary in order to provide modern and adequate housing for the low income groups which are not able to provide for themselves. Many of the projects undoubtedly can be self-supporting and some of the projects should consist of small dwellings which can be sold or leased to individuals. Where high cost of slum clearance is involved and a very low income group is provided for, subsidies will undoubtedly be necessary' and should be provided by the National Government, local governments, or both. The National Housing Commission and local housing authorities should have the power to purchase land in advance and arrange for its future development. The National Housing Commission should also have the authority to advance funds to local housing authorities for planning the elimination of slum areas and for low rental housing developments when the localities are not able to provide the cost of good advance planning themselves. TAXATION This is a very difficult problem and must be worked out in conformity with local laws and procedures. But (Continued on page 24) PHILIPPINE ENGINEERING CORPORATION 936 RAON, QUIAPO, MANILA BUILDING CONSTRUCTION GENERAL MACHINERY INDUSTRIAL SUPPLIES — --- —-- The American Chamber of Commerce Journal February, 1946 21

Page  22 Anm. C. of C..... (Continued from page.11 supplying the evidence of death for the satisfaction of Insurance companies. Our late President Mr. Samuel F. Gaches was appointed by the President of the Commonwealth a member of the Reparation Commission organized to consider claims against the Japanese. Since Mr. Gaches' death, Mr. Forest Myers has been named to that Commission by the President of the Commonwealth. On behalf of some of its members, the Chamber treated with the U. S. Army Land and Lease Property Division for the collection of rents for the members. It organized a meeting of all Chambers of Commerce in Manila to meet the discussion panel which was sent from Washington. It treated with the Army for food rations for stranded Americans. It made efforts thru the U. S. Consulate to be taken up with the United States Government, permission for stranded Americans awaiting repatriation to receive funds from the United States thru the U.S. Treasury to an amount of $500 monthly, for each person as the regulations governing the United States Funds control stood in the way of freedom of transmission of funds. The Chamber took the initiative and called together the several Chambers of Commerce in Manila to combat the ceiling prices existing under Executive Order No. 62. This was a continual active engagement for over four or five months in an effort to secure a fair ceiling price regulation. MINUTES There are no previous Members minutes to be read. FINANCE In the absence of the Treasurer and Asst. Treasurer, the Secretary has prepared a Statement of the present finances of the Chamber as of December 31st, 1945. In this connection for your information, I wish to report that P30,000.00 of the Chamber's funds on fixed deposits and Savings accounts with the Bank of the Philippine Islands, Monte de Piedad and Philippine Trust Company were forcibly taken by the Japanese Military Command and deposited in the Bank of Taiwan (Japanese). The Chamber had a Current Account with the National City Bank of New York of P10,992,73, and as soon as they were permitted to open they made the funds available to us not withstanding any action the Japanese Military Command may have taken in regard to their funds. As stated in the notice sent you this meeting has been called for the election of nine directors and 4 alternates. The Board of Directors authorized Mr. R. S. Hendry to commence the publishing of the American Chamber of Commerce Journal, and if this first issue published last month can be considered as a standard for future publications of the Journal, the Chamber has placed it in good hands. The Chamber has no obligation in the production cost. Annual Meeting 3 Directors are elected for a period of 3 years and so on successively. In view of the changed condition of affairs and the uncertainty of the future, the Board of Directors has recommended that an entirely new Board of 9 members be elected to serve for one year and if necessary that our By-Laws be changed accordingly for future elections. If this recommendation of the Board meets with your approval, at this meeting we will elect 9 Directors and 4 Alternates to serve during the present year. AMOS G. BELLIS Acting President January 25, 1946 AMERICAN CHAMBER OF COMMERCE of the Philippines Directors Wm. H. Rennolds, President Amos G. Bellis, Vice-President E. Byron Ford, Treasurer Leon Rosenthal, Actg. Secretary A. D. Calhoun Jhno F. Cotton Samuel Garmezy E. M. Grimm J. A. Parrish Julius S. Reese Alternates L. Hayden C. M. Hoskins J. Wells L1 I _ _O _ U _ Our By-Laws provide for 9 Subscribe NOW to the Journal Directors and 4 Alternates. At each 1 2 issues WAR DAMAGES OF REAL ESTATES IMPROVEMENTS IN MANILA: DECEMBER, 1941-FEBRUARY, 1946 (Bureau of the Ctnsus and Statistics) District (1) MANILA Binondo.. Ermita Intramuros Malate.. Paco. Pandacan.. Port Area.... Quiapo... Sampaloc.. San Miguel.. San Nicolas..... Santa Ana..... Santa Cruz..... Tondo... Total Value (2) P356,711,756 35,475,656 66,210,928 27,648.748 29,075,035 18,787,457 3,394,340 28,418,649 12,526,930 32,158,378 12,162,296 18,244,467 8,178, 651 39,734,693 24,695,528 Value of total damages (3) P222,853,263 24,334,182 58,218,320 26,224,548 25,670,773 15,592,602 2,357,239 25,493,383 1,428,050 4,125,923 3,944,898 5,853,201 2,361,436 19,863,927 7,384,773 Column (3) as % of column (2) (4) 62.5 68.6 87.9 94.8 88.3 83.0 69.4 89.7 11.7 12.8 32.4 32.1 28.9 50.0 29.9 Value of Column (5) Value of Column (7).full as % of partial as %i, of damages column (3) damages column (:; (5) (6) (7) (8) P180,964,106 81.2 P41,889,157 18.8 20,311,222 83.5 4,022,960 16.5 34,717,309 59.6 23,501,019 40.4 22,750,748 86.8 3,473,800 13.2 23,900,636 93.1 1,770,137 6.9 14,991,532 96.1 601,070 3.9 2,345,587 99.5 11,652 0.5 21,246,553 83.. 4,246.830 16.7 1,066,011 74.6 ' 362,039 25.4 3,818,569 92.6 307..544 7.4 3,486,1 60 88.4 458,738 11.6 4,898,682 8 3.7 954,519 10.3 2,296,586 97. 64,850 2.7 17,780,933 89.5 2,082,994 10.5 7,353,578 99.( 31,195 0.4 22 The American (hamber of (ommerce Journal February, 1916

Page  23 MANILA STOCK EXCHANGE Re-Opens On January 25, 1946, the Manila Stock Exchange recommenced operations with offices in the National City Bank Bldg. During recent months there has been increasing activity in the private buying and selling of local issues, particularly of local mining issues. And some of the trnasactions, understandably enough, have been pretty wild. The opening of the Exchange is sure to bring order into this situation to the benefit of buyers and sellers, investors and companies, alike. The new officials of the Exchange alre:E. Santamaria-President H. E. Bennett-Vice President Manuel Alcuaz-Secretary A. C. Hall-Treasurer Anselmo Trinidad-Governor Fifteen brokers or brokerage firms have been licensed to operate by the Securities Exchange Commission. Their names and addresses are given below: Manuel Alcuaz-Ayala Bldg. H. E. Bennett-c/o American Chamber of Commerce Bernard Gaberman-328 Dasmariias A. C. Hall & Co.-Insul'ar Life Bldg. S. E. Levy & Co.-328 Dasmariias L. R. Neilson & Co.-335 Dasmarifias Ramon de Ocampo - Filipinas Bldg. Marino Olondriz-318 San Rafael Paredes & Ledesma-Wilson Bldg. S. N. Picornell-Ayala Bldg. E. Santamaria-Soriano Bldg. W. E. Schmelkes-El Hogar Filipino Bldg. Swam, Culbertson & Fritz-Wil'son Bldg. Anselmo Trinidad-Cortes-Ochoa Bldg. Pedro Uy Tioco-Benk of Communications Bldg. Eighteen of the more active shares are listed herewith, together with their pre-war closing prices and I)rices at which sales have recently been made. Mine Pre-war closing Acoje P0.33 Atok Gold.53 Antamok.0525 Baguio Gold.16 Balatoc 4.00 Benguet Cons. 3.60 Big Wedge.67 Coco Grove.065 Consolidated Mines.0057 Recent prices P0.32 1.10.08.20 5.00 7.00 1.70.055.0065 Itogon I.X.L. Lepanto Masbate Mindanao Mother Lode Suyoc Cons. San Mauricio Surigao Cons. United Paracale.23.20.215.08.54.13.155.20.20.21.22.22.16.70.12.60.38.225 ATLANTIC GULF & PACIFIC CO. OF MANILA CALL US FOR: I r -.1 IRON, BRASS & BRONZE CASTINGS-MACHINE SHOP WORK, MARINE REPAIRS, STEEL BUILDINGS, BRIDGES, TANKS, EXPERTS WEILDING, ANY METAL. ENGINEERING * CONTRACTING * MANUFACTURING Sole Distributors For FAIRBANKS MORSE & CO. Diesel Engines, Electric Motors, Generators:, Pumps, Scales YORK CORP'N. Refrigeration, Air Conditioning GARDNER-DENVER, CO. Rock DRILLS, Compressors, Pumps CHAIN BELT CO. Cement Mixers, Rex Pumps, Conveyor Systems, Bearings etc. LINCOLN ELECTRIC CO. Electric Welders and Electrodes ARMCO INT'L. CORP'N. Corr. Culvert, Spiweld Pipe, Ingot Iron TELEPHONE US FOR A COMPETENT CONSULTANT FOR YOUR REHABILITATION PROBLEMS OFFICE, BARRIO PUNTA, STA. ANA, MANILA-Tel. 6-63-32 I - - The American Chamber of Commerce Journal I F'hruary, 1946 23

Page  24 COMPUTED COST OF LIVING 0OF WAGE EARNERS' FAMILIES IN MANILA: 1941-1945 (Bureau of the Census and Statistics) Year and month 1941 Month average...... 1942 January............. February............ M arch.............. April............... May................ June................ July................ August.............. September........... October............ November........... December........... 1943 January............. February........... March.............. April............... May................ June................ July................ August............. September.......... October............. November........... December........... 1944 January............. February.......... March.............. April............... May................ June................ July............... August.............. September........... October............. November........... December........... 1945 January............. All items 39.06 41.05 45.50 51.90 53.42 57.14 63.28 69.40 75.44 77.74 83.23 87.38 82.99 86.19 92.17 102.07 112.56 110.55 104.58 113.13 171.13 191.32 224.18 307.72 511.26 674.41 793.46 823.88 978.85 1,345.60 1,996.35 2,809.03 3,226.80 5,870.39 8,289.10 17,758.78 24,993.81 33,772.46 Food House rent 22.36 26.33 30.32 36.07 36.40 38.87 43.72 48.55 53.24 55.20 59.01 59.50 53.44 54.72 57.66 59.75 63.73 70.04 74.98 81.41 128.18 140.87 173.37 225.97 388.12 540.44 641.09 636.15 692.40 908.35 1,368.88 2,007.10 2,591.27 5,164.74 7,383.73 16,318.34 22,111.46 29,478.94 4.69 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 234 2.34 2.34 2.34 2.34 2.34 2.34 2.34 2.34 Fuel Clothing light and water 1.93 3.56 2.03 3.63 2.12 3.74 2.22 3.92 2.70 4.09 3.18 4.27 3.71 4.45 4.23 4.63 4.75 4.81 4.85 4.57 5.04 4.94 7.16 5.20 7.91 4.92 8.58 4.54 12.77 4.45 20.45 4.36 27.75 4.43 18.46 4.62 6.57 5.47 6.57 6.20 10.83 10.12 15.76 10.32 17.04 6.92 38.30 8.62 66.55 9.74 65.83 13.18 66.85 17.96 91.76 19.17 179.66 20.50 308.80 30.90 459.07 37.74 586.53 37.85 404.74 39.07 378.80 54.98 404.55 79.21 717.09 96.22 1,835.49 133.32 2,914.30 174.72 Miscellaneous 6.52 6.72 6.98 7.43 7.89 8.48 9.06 9.65 10.30 10.78 11.90 13.18 14.38 16.01 14.95 15.17 14.31 15.09 15.22 16.61 19.66 22.03 24.51 32.49 44.51 52.62 65.22 74.46 83.95 95.21 128.32 175.21 189.38 269.53 419.27 624.79 911.20 1,193.16 AMOUNT OF MONEY AVAILABLE FOR CIRCULATION1 IN THE PHILIPPINES: 1941, 1945 (Bureau of the Census and Statistics) Total Amount in Circulation and in the Treasury Vaults Per capita Month Ended Available for Circulation Circulation (Pesos) (Pesos) 1941 January 31 187,487,931.33 11.16 February 28 186,786,750.28 11.09 March 31 189,433,455.12 11.23 April 30 189,777,269.52 11.23 May 31 195,466,912.51 11.54 June 30 198,634,478.59 11.70 July 31 214,092,481.27 12.59 August 31' 217,787,733.35 12.78 September 30 222,407,808.02 13.03 October 31 235,772,341.42 13.78 November 30 239,302,857.39 13.96 December 26 256,085,935.87 14.91 1945 June 30 747,540,525.26 a 38.92 4 The money consists of Treasury Certificates, Bank of the Philippine Islands Notes, Philippine National Bank Emergency Notes, silver pesos and subsidiary coins. 2 The revised per capita circulation is obtained by using the estimated population of the Philippines for 1941 as released by the Bureau of the Census and Statistics. This amount is a preliminary estimate of the Bureau of Treasury. The money consisted of pre-war coins and treasury certificates, and victory coins and treasury certificates. Population estimates for the Philippines include the estimated number of G. I.'s. Housing.... (Continued from page 2.1) in general, it is safe to say that projects of a housing commission and the local authorities should be free from taxation when they are subsidized and intended for very low income groups except that they should pay taxes upon the projects to the extent of the taxes levied on the property prior to the development of the projects. Projects that are self-supporting and are not subsidized and are not intended for low income groups which are unable to provide for themselves, should pay full taxes. The National (Continued on page 25) 21 The American Chamber of Commerce Journal February, 1946

Page  25 Uncle Sam.... (Continued from page 7) Up to January 15, 1946, sales by the Manila office (which, as explained, is headquarters for the Pacific area) totalled roughly P55,000,000. These are the figures for a little more than two months of operations. These sales were made to the Netherlands East Indies, to Australia, to China (through UNRRA), and to the Philippines. Some of the most important individual sales are the following: 10 Army hospitals to UNRRA for China 2 Shiploads of road building machinery and some 9 million pounds of foodstuffs to Netherlands East Indies 5 Shiploads of general merchandise to the Chamber of Commerce of the Philippines Syndicate 1 Hospital and 1 medical laboratory to the University of Santo Tomas 584 vehicles (trucks, command cars, trailers, and jeeps) to the Yek Hua Trading Company. Exact figures are not available, but it may be roughly estimated that 70 %o of the sales to date, say P35,000,000, have been for consumption or use in the Philippines. How long will this keep up? What and how much will be available for purchase in the future? These are questions that cannot be answered at present, important though they are. Whenever the army or the navy finds that it has materials of any kind in excess of its requirements, those materials are declared surplus and are then turned over to the Foreign Liquidation Commission for sale. So all that can be done is to wait, and watch the newspapers carefully for announcements. NUMBER OF STRUCTURES DAMAGED BY WAR IN MANILA (Bureau of the Census and Statistics) District Total No Total Full Damage Structures Damage Damage Damage Partial MANILA............................. B inondo........................................... Ermita................................ Intramuros..................................... Malate........................ Paco............................................... Pandacan................. Port Area....................................... Q uiapo............................... Sampaloe Sam paloc.......................................... San Miguel.............. San Nicoas...................................... Santa Ana...................................... Santa Ana.............. Santa Cr...uz.......................................... Tondo.................... 33,420 606 843 383 3,614 1,947 1,064 51 561 8,211 475 1,031 2,274 3.847 8,513 22,608 147 1 92 300 721 1 540 7,818 391 818 1,934 3,046 6,799 10,812 459 842 383 3,522 1,647 343 50 21 393 84 213 340 801 1,714 10,332 396 784 378 3,481 1,584 330 43 16 323 78 196 253 780 1,692 480 64 58 68 41 63 13 8 5 70 6 17 87 21 22 B. F. Goodrich TIRES AND TUBES INDUSTRIAL RUBBER PRODUCTS: TRANSMISSION BELTING AIR and WATER HOSE RUBBER and ASBESTOS SHEET PACKING AUTOMOTIVE ACCESSORIES AUTOMOBILE AND TRUCK BATTERIES il Housing... (Continued from page 24) Housing Commission or any local authorities should have the power to buy or condemn any property and utilize it for the development of any project which has been approved upon paying the amount of the assessed value of such property. Loans (Continued on page 28) Inflation.. (Continued from page.15) and (2) the rapid exhaustion of the supply of goods which were consumed, exported or destroyed much faster than they could be produced. The widespread starvation that killed thousands in the City toward the close of 1944 and at the beginning of the present year climaxed this terrible inflation, the like of which Manila has never seen before. CANVAS FOOTWEAR RUBBER HEELS KOROSEAL & COMPOSITION SOLING GOODRICH INTERNATIONAL RUBBER CO. 2738 RIZAL AVE. EXT. —MANILA, P. I. The American Chamber ef Commerce Journal February, 1946 25

Page  26 THE PHILIPPINE BANK REHABILITATION LAW Introduced by the Committee on Banks and Corporations AN ACT TO PROVIDE FOR THE REHABILITATION OF PHILIPPINE BANKS, APPROPRIATING FUNDS FOR THAT END, AND FOR OTHER PURPOSES. Be it enacted by the Senate and House of Representatives in Congress assembled: SECTION 1. The sum of ten million pesos is hereby appropriated, out of any funds in the National Treasury not otherwise appropriated, to constitute a special fund, which shall be designated "Financial Institution Rehabilitation Fund." This fund shall be used to purchase preferred shares of stock of banks organized and now existing under and by virtue of the laws of the Philippines, and such part of this fund not so utilized within two years of the effective date of this Act or such earlier date as the President may determine, shall revert to the general fund of the National Treasury: Provided, however, That out of the special fund herein constituted, the sum of two million five hundred thousand pesos shall immediately be transferred to the Postal Savings Bank, and the sum so transferred shall become an asset of the Postal Savings Bank to be utilized together with its other assets in meeting its liabilities and in fulfilling the guaranty of the Government to the depositors of the Bank as provided in section 1993 of the Revised Administrative Code, any provision of this Act to the contrary notwithstanding. SECTION 2. A "Financial Institution Rehabilitation Board" is hereby created which shall be composed of five members to be appointed by the President with the advice and consent of the Commission on Appointments. This Board shall manage the fund hereby created and shall invest the same under terms and conditions not inconsistent with the purposes of this Act. SECTION 3. The Board may invest the fund entrusted to it for management and investment under this Act in preferred shares of banks applying to it for financial assistance and after the Board is satisfied that the share holders of the bank have exerted every effort to extend assistance to the applicant. Such shares must be entitled to cumulative dividends at a rate of one per cent during the first five years, two per cent during the second five years and three per cent thereafter, must be preferred as against common and other preferred stockholders in the distribution of assets in the event of liquidation and shall be entitled to voting privileges. The Board shall issue such rules and regulations as it may deem necessary to carry out the purposes of this Act. SECTION 4. The Board may sell to the highest bidder in the open market the whole or any part of the preferred stock which it holds. SECTION 5. All dividends paid on the shares held by the Board shall revert to the general fund of the National Treasury. SECTION 6. The Board shall meet regularly once a month and at such other times as circumstances require. The Chairman of the Board shall be designated by the President and he shall be the executive officer of the "Financial Institution Rehabilitation Board", shall direct and supervise the keeping of a record of all operations cnocerning the fund, and shall authorize disbursements from said fund under the supervision of the Board. SECTION 7. The Board is hereby authorized to utilize not in excess of ten thousand pesos of the sum herein appropriated to cover the necessary expenses of the Board, including salaries of whatever personnel is necessary to assist the Board. SECTION 8. Banks now existing under the laws of the Philippines are hereby authorized to issue preferred shares of one or more classes in accordance with the provisions of this Act. When, in the opinion of the Bank Commissioner, the financial condition of a bank warrants the retirement of preferred shares, the bank may, at its option, or upon the request of the preferred shareholders retire such shares or a portion thereof by paying the par value plus accumulated dividends: Provided, That the remaining unimpaired capital and surplus shall not be less than onetenth of its outstanding deposit liabilities: And provided, further, That preferred shares held by the Board shall be retired before other preferred shares. SECTION 9. If, in accordance with section 1639 of the Revised Administrative Code, the Bank Commissioner shall find that, instead of liquidating as insolvent bank now existing, it would be more beneficial to its creditors to permit the said bank to resume its operations through the segregation of the excess of its non-preferred liabilities over its assets less the amount of preferred liabilities, and the conversion of said excess into pro rata credits of deferred payment burdening future net profits, the Bank Commissioner may so order. In such case, the deferred liabilities shall not encumber the assets of the bank, but the net profits of the bank shall be devoted, after covering the dividend requirements on any outstanding preferred shares, to the payment of the said deferred liabilities until the same have been paid in full. If creditors of a bank representing twenty-five per centum or more of the bank's liabilities, claim that the order of the Bank Commissioner is arbitrary and prejudicial to the creditors in general, or is null or erroneous for any other reason, the same may, within ten days after the bank has been notified of the order of the Commissioner, institute an action in the Supreme Court to annul or modify the same, and the said court shall have original jurisdiction to hear and determine the case, to appoint a Commissioner to receive the evidence, shall shorten and simplify the proceedings, and shall cause the entry of its final judgment of the same to be made within thirty days after the case has been submitted for decision. SECTION 10. All laws and parts of laws inconsistent with this Act are hereby repealed. SECTION 11. This Act shall take effect upon its approval. Approved. Our FinavCier From (The 0ig WdiS Come Ivigor (FifnCi(La) Investors! - Home-Lovers! I High landabout 200 ft. above sea level, Picturesque Avenues & W ide As phalted Streets, plenty of shade-trees & Breezes ENCHANTING PANORAMA I Start buying homesites now while our prices ONLY are low. Lots. range from 300 sq. m., to A, 5,000 sq. m. Adr 20 ~/ / 0 down the balance payable within 5 years. ESPAfRA, UNIVERSITY, CAMP MURPHY AND NEW MANILA - SUBDIVISIONS MAGDALENA ESTATE, INC. Villonco Bldg., Life Theatre R-313 Quezon Blvd 26 The American Chamber of Commerce Journal February, 1946

Page  27 Bell Bill.... (Continued fromt page.13) tax, assessment, license, or financial burden shall be levied by the Philippine Government or its political subdivisions against any American citizen living or doing business in the Philippines which is at a higher rate or more burdensome than those levied on or against citizens of the Philippine Islands. SEC. 20. The United States Government shall accord to citizens of the Philippine Islands and the Philippine Government shall accord to citizen of the United States privileges of immigration and naturalization not less favorable than the same privileges accorded by them to any other nation: Provided, That any citizen of the Philippine Islands, who resided in the United States or was domiciled therein for three years prior to November 30, 1941, shall be considered a legal resident of the United States: And provided further. That any citizen of the United States who resided in the Philippine Islands or was domiciled therein, for three years prior to November 30, 1941, shall be considered a legal resident of the Philippine Islands. SEC. 21.. During the period of the validity-of this Act, or any extension thereof by statute or treaty, the currency of the Philippine Government shall be as now provided by law, except that for the purpose of computing the ratio of the Exchange Standard Fund to the money of the lPhilippine Government in circulation and available for circulation, treasury certificates shall not be included as money in circulation and available for circulation. SEC. 22. Neither the United States Government nor the Philippine Government shall impose any restrictions'on exchange between the two countries, nor otherwise effect barriers to trade and financial negotiations between the United States and the Philippine Islands by unusual regulations respecting currency and banking transactions. SEC. 23. (a) The President of the United States is authorized to enter into an executive agreement with the President of the Philippine [slands containing such provisions a will have the effect of continuing, after the independence of the Philippine Islands has been proclaimed and until July 4, 1979, trade relations between the United States and the Philippine Islands on the same basis as is provided in sections 1 to 22, both inclusive, of this Act. The agreement shall provide that it may be terminated by either party on not less than two years' notice. (b) No third country (including Cuba) shall be entitled to any benefits granted to the Philippine Islands under this Act or under any agreement made pursuant to this section, and no agreement shall be made with the Philippine Islands under section 351, as amended, of the Tariff Act of 1930. (c) If (1) the agreement provided for in this section has not been entered into and ratified by the Congress of the Philippine Government within such time after the independence of the Philippine Islands has been proclaimed as the President may determine to be reasonable, or (2) the agreement entered into under this section is terminated by either party, the President shall proclaim such fact, and thereafter the provisions of this Act shall' cease to be in effect. SEC. 24. (a) As used in this Act(1) The term "United States," when used in a geographical sense, but not the term "continental United States," includes all Territories and possessions of the United States, other than the Philippine Islands. (2) The term "cordage" includes yarns, twines (including binding twine described in paragraph 1622 of the United States Tariff Act of 1930), cords, cordage, rope, and cable, tarred or untarred, wholly or in chief value of Manila (abaca) or other hard fiber. (3) The term "Philippine Gov ernment" means the Government of the Commonwealth of the Philippine Islands or the Government of the Republic of the Philippines. (4) The term "United States duty," as used in section 17 of this Act, means the lowest rate of ordinary customs duty in effect at the time of the shipment of the article concerned from the Philippines andj applicable to like articles importec into the continental United States from any foreign country, except Cuba, or when more than one rate oi ordinary customs duty is applicable to such like articles, the aggregate of such rates. (5) The term "refined sugars' possesses the same meaning as the term "direct-consumption sugar" as defined in section 101 of the Sugar| Act of 1937. (6) The term "Philippine article' means an article the growth, pro-i duce, or manufacture of the Philip-1 pines, in the production.of which no, materials of other than Philippine or" United States origin valued in excessi of 20 per centum of the total value' of such article was used and whichj is brought into the United States; from the Philippines. (7) The term "United States artide" means an article the growth,i produce, or manufacture of the: United States, in the production oft which no materials of other than! Philippine or United States origin valued in excess of 20 per centum of the total value of such article was; used and which is brought into the: Philippines from the United States." MACARIO ARABEJO & CO. Realtors Members, MANILA REALTY BOARD ARABEJO BUILDING MANILA 708 QUEZON BOULEVARD PHILIPPINES: -1 UNION PLUMBING COMPANY F'LUMBING CONTRACTORS 0 Installations - Repairs - Supplies OFFICE: 1883 AZCARRAGA ST. (Near Old Bilibid Gate) Our staff of Expert Plumbers are at your disposal to give you the best Plumbing Service. ALBERTO M. VELASQUEZ Licensed Master Plumber & Contractor GUILLERMO A. PICACHE General Manager 11 I I If' The American Chamber of Commerce Journal February, 1946 27

Page  28 Housing Prog..... (Continued from page 26) to housing authorities made by the Commonwealth Government or by provinces or cities should bear a low rate interest and should be paid in installments over as long a period of years as possible considering the expected life of the buildings and im provements. In my opinion it will be a very great mistake if the emergency need for new housing in the Philippines is used as an excuse for erection of prefabricated homes or other dwellings conceived in the United States and adapted to conditions there rather than in the Philippines. Cheap cons I' m --- INDEX NUMBERS OF THE COST OF LIVING OF WAGE EARNERS AND LOW-SALARIED WORKERS AND THE PURCHASING POWER OF A PESO IN.MANILA: 1941-1945 1941 - 100 (Bureau of the Census and Statistics) Cost of Purchasing Year and Month living Power of a index Peso 1941 Monthly average................. 1942 January..................... February...................... March......................... April.......................... May..................... June........................... July............................ August.......................... September....................... October................. November...................... December...................... 1943 January......................... February....................... M arch.......................... April........................... May........................... June........................... Ju ly........................... A ugust......................... September....................... O ctober........................ November...................... December...... 1944 January........................ February........................ M arch.......................... May..................... June............................ July........................... A ugust......................... Septem ber...................... October......................... N ovem ber....................... December.. 1945 January........................ 100.0 107.7 115.5 129.4 134.7 143.3 157.4 169.6 181.7 186.2 198.5 208.6 200.7 207.5 221.2 245.9 271.8 263.3 247.1 267.4 384.8 437.6 503.9 724.2 1,196.8 1,608.6 1,890.8 1,975.1 3,363.3 4,966.1 7,085.9 8,155.1 15,387.0 21,570.8 45,227.3 64,883.8 87,318.6 1.0000 0.9285 0.8658 0.7728 0.7424 0.6978 0.6353 0.5896 0.5504 0.5371 0.5038 0.4794 0.4983 0.4819 0.4521 0.4067 0.3679 0.3799 0.4047 0.3740 0.2599 0.2285 0.1985 0.1381 0.0836 0.0622 0.0529 0.0506 0.0297 0.0201 0.0141 0.0123 0.0065 0.0046 0.0022 0.0015 0.0011 truction borrowed from the United States would deprive the Philippines of much of their charm. In the erection of low rental projects local designs and local materials should be used. Climate makes it possible to build suitable houses for low rental dwellirgs of bamboo, nipa and other materials. Properly designed they are attractive and fit into the landscape. The difficulty with the nipa roofs is that it' has to be renewed frequently and is a fire hazard. Perhaps some local tile can be developed which will be attractive and at the same time will preserve the style and traditions of Philippine architecture. Except for the roof, there is every reason why the customary materials ard architecture should be used for low rental housing. Commonwealth of the Philippines Department of Public Works and Communication. BUREAU OF POSTS Manila SWORN STATEMENT (Required by Act No. 2580) The undersigned, Robert S. Hendry, editor of American Chamber of Commerce Journal, published monthly in English at the American Chamber of Commerce, after having been duly sworn in accordance with law, hereby submits the following statement of ownership, management, circulation. etc., which is required by Act No. 2580, as amended by Commonwealth Act No. 201: N a m e Post-Office Address Editor Robert S. Hc'n- 8.J. Ruiz St., San dry Juan Business Manager. HA. 113 8 Don Qiiijote, SamLinn paloc Owner- American Ch;:i- 605 Dasmarifas. Manila her of Commerce 605 Dasmariias, Manila P'ublish er ---A mi e r i - Azcarraga, Manila can Chamber of Com- 6;05 Dasmarifas. Manila mereP'rinter ---armelo & l;i- American ('hambhr of termann Commerce Office (.f lPublicati.n If publication is ow(leld by; corporation, stockholders, owning one per cent or more of the total amount of stocks: NO Bondholders, mortgages,,or other security holders owning one per cent or more of total amount of security: NONE In case of publication other than daily, total number of copies printed and circulated of the last issue, dated December 1945: 1. Sent to paid subscribers.......... 56 2. Sent to others than paid subscribers 2,600 Total.............. 2,556 (Sgd. ROBERT S. HENDRY Editor Subscribed and sworn to before me this 8th day of December, 1945, at Manila, the affiant exhibiting his Residence Certificate No. A-930468, issued at San Juan. Rizal, on September 12, 1945. (Srld. CGERVASTO GARCIA Notary Public Until Dec.:1. 1946 Doc. 1:~2 Page 28 Book: Series of ]195 Iw "' _- - _ _ _ _ INDEX NUMBERS OF COST OF LIVING OF WAGE' EARNERS IN MANILA: March, 1945 to January, 1946 1941 = 100 (Rnreau nf the Census and tnatistirs) %ALP —U - -~ V- ~ - ~ - -- -~ ---~ Month March, 1945............... April, 1945............... May, 1945................ June, 1945................ July, 194................ August, 1946............. September, 1945........... October, 1945............. November, 1945........... December, 1945........... January 16, 1946.......... January 28, 1946.......... All item 550.0 589.0 679.9 736.0 741.7 715.0 698.7 725.6 738.1 659.7 623.1 561.8 Food 635.5 702.1 799.4 872.7 886.9 848.5 852.4 937.8 955.8 852.7 800.6 703.0 House rent 120.1 120.1 120. 1 120.1 120'. 1 120.7 121.0 121.0 121.0 121.0 121.0 121.0 Clothing 1,695.2 1,611.9 2,041.5 1,860.8 1,664.2 1,484.5 1,034.0 1,045.1 1,017.0 1,030... 1,0'16.0 978.3, Fuel, light. Purchasing Power and water Miscellaneous of a Peso 237.1 674.4.1818 254.3 661.4.1698 380.7 734.8.1471 410.8 788.7.1359 393.4 794.1.1348 397.6 774.3.1399 367.7 709.1.1431 466.1 499.5.1378 480.2 499.9.1355 401.9 463.0.1516 371.0 455.6.1605 367.8 439.0.1780

Page  1 JUL 1 4 1941 THE AMERIC, COMMERCE Prefabricated Power for Manila (Story on Page 5) MANILA, PHILIPPINES APRIL, 1946 VOL. XXII, NO. 3 50 CENTAVOS

Page  2 LETTERS FROM CABANATUAN Better than any other testimony to the services rendered by the Escodas, is that of our men who were actually prisoners of war in Cabanatuan. This testimony is in the form of notes smuggled out of the prison camp while the Escodas were carrying on their heroic work. A few of these notes managed to survive the destruction of Manila. To the casual observer they are just scraps of paper, crumpled and creased. But to the children of the Escodas they are a heritage beyond money value. These notes were often couched in a unique phraseology that was intended to have meaning only for the intended recipient. They were written in prison camp under trying conditions. To those who survived, they now speak a message that cannot be denied. 8-18-43 "Dear Tony: It certainly has been a great hel'p to be in touch with someone who can accomplish things the way you do. I received your cheerful note of August 14 and was happy to get it. Somehow I have the same feeling you expressed-that it won't be much longer. Life here is pretty much of a bore but I believe that when the good breaks come, we will be swamped with them and be able to easily forget the unpleasant things. Of course, some things can't be forgotten but I believe our big break should come soon. As ever, HOWARD" 1-30-44 "Weather conditions for farming very good at present time and forecast for future crops very bright. Had close call with S. O. R. but managed to buy Ort off, God forgive me. Most of them can be bought. Many thanks for everything you have done for us. EDAW & CAVENDISH" 2-16-43 "Cannot tell you how much joy and pleasure the very large consignment of seeds brought everyone. Thanks for everything. This will enable the 500 outgoing to be amply provided as well as care for many here." 2-14-44 "Everything worked out smoothly last shipment of seeds, etc. My prayers are for you always. DAF" 2-9-44 "Your agent and Laf doing fine work and with help of God and good weather conditions continue we shall have clear sailing." October 15 "Are there any words in the English vocabulary to thank you and yours for what the two of you have done? With all my heart I am thanking you both and once again can say that you both help to save our lives. There are so many stories to tell about this place. Some to make you laugh until you're in stitches and others to make you cry. Oh well, with God's grace it won't be long now." YOUNGIN" August 16, 194:, "Dear Tony: Under separate cover I sent out to you a package containing several important papers belonging to Barney Clark and a small package with some of my own important papers. I wish to take this opportunity to express my deepest appreciation and sincere thanks for your help and that of your angel wife to the men here. Thanks again, good luck and be careful. LEE" 8-30 "Have been approached by Fad and it will be a pleasure to handle anything addressed EDAW which is a well known trade name here at least. The sewn sack idea is the best as no one will open except me. The medicine is doing wonders and may God bless you for your kindness in this connection." 2-9-43 "The skies are fairly clear, but we are prepared for a sudden squall. Some 550 will leave in a short while, destination unknown. Seeds are being carefully planted and in absolute accord with written instructions. Thanks for everything. EDAW" 9-27-43 "Major B. is sending you acknowledgments for the material we received a week ago. As long as I remain here (Camp 3) I will continue to help him with it. He is enclosing some return onions which you should expect." April' 18, 1943 "I think I have received the books you selected for me and my acknowledgment has gone in over another road via the ilog. As these books which are consigned to me are for the benefit of some 25 people they do not last so very long. I wonder if you could contact the agent of the author to see if another one could be sent now while the road seems to be clear." JOIN NOW The Escoda Memorial Fund a lasting tribute to Tony and Josefa Escoda, who gavetheir lives heroically for American and Allied prisoners of war and internees. Send checks to Escoda Memorial Fund, c/o E. B. Ford, Philippine Trust Cc, Manila.

Page  3 THE AMERIC AB ICq OF COMMERCE VOL. XXII, No. 3 APRIL, 1946 Table of Contents Page Pre-fabricated Power......................... 5 Destruction and Rehabilitation in the Philippines. 6 Wages and the Nation's Health-By Horacio C. Lava 8 Editorial: Philippine Economy-Past, Present, and Future 10 The Philippine Rehabilitation Act of 1945....... 12 Review of the Philippine Mining Industry........ 13 Philippine Gold Mining Companies............. 14 Sun Life Reports Large Increase in Assets....... 22 Consolidated Paid-Up Capital of Corporations and Partnerships Registered: 1945 (May-December) 24 Real Estate Mortgages and Sales, Transfers and Conveyances in the City of Manila, By Month: 1945, 1944 and 1943......................... 24 Chattel Mortgages in the City of Manila, By Month: 1942-1945................................. 24 Planning Tomorrow's Cities.................... 26 New Philippine Trade Directory............ 27 I B. GABERMAN STOCK BROKER * MEMBER MANILA STOCK EXCHANGE 328 Dasmarias, Manila 328 Dasmarinas, Manila.1 -~ I KOBEST COMMERCIAL CORP. WILSON BUILDING MANILA * IMPORTERS & INDENTORS *.- ----- American Agents: KOBEST HOSIERY CORP. 1170 BROADWAY New York City I I The American Chamber of Commerce Journal April, 1946 I W 3

Page  4 - --- ~-.rl uu —.l~s.. -u Irr u ~e Ir Uiw.ue aP I.f Since 1887 our advantages of superior workmanship, facilities and experience are evident in the numerous printing jobs we have done for business leaders. CA-RmELO F tAUfmIANN INC. OFFSET LITHOGRAPHERS * PRINTERS 2057 AZCARRAGA * MANILA, PHILIPPINES I. Brightens the Post-WAR OutlookS'(j Mtutila tminxs EDITORIAL & BUSINESS OFFICES 715-721 Calero l ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 4 The American Chamber of Commerce Journal April, 1946

Page  5 PRE-FABRICATED POWER The Impedance is a most unusual ship, in appearance and function. Looking like a barge, it is really a pre-assembled central Turbo-Electric station. It was designed expressly by the Corps of Engineers, U.S. Army, to augment power requirements of any city in any climate, torrid, temperate, or frigid, and can tie in with existing systems from 13,000 volts to 168,000 volts and either 50 or 60 cycle. Ordinary double hung windows lie just above the water line and there are six large bilge pumps to force overboard the waves which may come through these windows. Two concealed pipes, 42 inches in diameter, run the entire length of the ship and, contradictorily, take in water at the stern and discharge it at the bow. Under the entire fantail are three travelling screens removing debris from the water before allowing it to flow through the ship at the rate of 60,000,000 gallons per day; nearly as much as is supplied for all Manila's needs. Three similar ships are the Inductance, operated by the Corps of Engineers with a civil service crew at Jacksonvill'ei Florida, the Resistance and the Seapower which saw service at Ghent and Antwerp under the Army. The latter two were equipped with a bow and bridge to withstand the Atlantic crossing, but all lack propulsion and require towing. Design was commenced by Gielow Company Incorporated of New York, in 1943 and the vessel was completed in Pittsburg, Penna., in the spring of 1945. Originally intended for service in Italy, a Jacksonville trained crew of Italians took the ship to New Orleans, at which time Manila's priority became so great as to divert the vessel westward for an 107 day crossing. The Table of Organization of each Army Floating Power Plant Detachment called for one Major, one Captain, two First Lieutenants, and fifty-four enlisted specialists. Two such groups were assigned to the Impedance; the 1496th from the Seapower and the 2885th under whose banner the plant now operates. Included also were six civilian experts with assimilated rank to Lt. Col. Discharge points soon made deep inroads, and of the civilians and officers originally assigned, only Lt. R. C. Atkins, who trained at Fort Belvoir and Jacksonville, and who brought the 2885ta overseas, remains. Enlisted ranks proved equally volatile with merely a handful of the initial force left. Instead of straight-forward operation by 64 trained men, officers and experts, the job now embraces recruitment and training of transferred G.I.s, Filipinos and Civil Service employees. The present strength is 42, 97, and 4 respectively. To complete the roster of officers, three men already on duty at Manila were judged capable of running the ship. From Mechanical Engineer of the General Engineer District, Captain A. E. Ingraham was reassigned as Commanding Officer. Lt. E. G. Kehrt was secured from his Command of the 2858th Engineer Gas Generating Detachment and likewise Lt. J. T. Engel from his Command of the 2854th Engineer Gas Generating Detachment. Captain Ingraham, an ASME member hails from Boston, Worcester, and San Francisco and has consistently followed the power business. First, in instruction and research at the Worcester Polytechnic Institute, a year in Pennsylvania building water wheels, then a score of years as Mechanical Engineer for California's billion dollar utility, Pacific Gas and Electric Company. Here, he supervised design, construction, testing of all the company's high pressure, 1500 pounds-950 degrees Fahrenheit stream plants. When called as a Reserve Officer four years ago, the Army sent him to Columbus, Ohio and Schenectady, N. Y., where he became an Engineer Supply Officer and invented the Pallet Cage which made possible far greater utilization of warehouse space. Several branches of the service adopted this cage as standard, and thousands were fabricated. Later, Captain Ingraham commanded Engineer Depots at North Adams, Mass., Fort Ethan Allen, Vt., Port Moresby, New Guinea and the Engineer Depot Company at Finschhafen. G e n e r a l Engineer District brought him back to the Southwest Pacific to be its steam power plant man and hence he was on hand at the arrival of the Imipedance. Lt. Kehrt, Executive Officer, was with Captain Ingrahaim in Massachusetts. In civil life he had been Chief Engineer of London Terrace, Incorporated, Public National and Continental Banks of New York City. Lt. Atkins, Operations Officer, was First Operator at the Pacific Gas and Electric Company's largest hydro-electrict station, Pit No. 5 near Mt. Shasta, California. Lt. Engel, Supply and Motor Officer, with additional duties of Chemist, had his college career in Chemical Engineering interrupted before graduation when called to duty. The Japanese did a thorough job of wrecking Meralco's Manila Steam Plant and its Botocan Hydro Station. Reconstruction will t a k e many months. The National Power Corporation's (of the Philippines) Hydro Station at Caliraya, also partially destroyed, was rebuilt by General Engineer District making available one of the three 10,000 KW Units. The completion of this plant was coincidental with the arrival of the Impedance during the latter part of October. Prior to then, Manila had 'been dependent on two Destroyer Escorts with 1,800 KW turbines and on numerous engine units of 50 to 800 KW. Outages were frequent, and since then the load has increased many fold. (Continued on page 17) The Impedance at dock in Manila The American Chamber of Commerce Journal April, 1946 5

Page  6 DESTRUCTION AND REHABILITATION IN THE PHILIPPINES EDITORIAL NOTE: In answer to a request for information concerning the amount of destruction suffered by various cities in the Philippines, we were told by the City Planning office that the most complete study ot that subject, to the best of their knowledge, was the one prepared by Major Burnett C. Turner, Corps of Engineers, U. S. Army. Through the courtesy of AFWESPAC Headquarters (particularly The Public Relations Office), and of the author, a digest of Major Turner's report is herewith made available for our readers, with the warning that it makes no claim to be a complete or exhaustive study of the subject. The purpose of this study is to estimate as carefully as available data permits the extent of the war-time destruction and rehabilitation to date of port and harbor facilities, cities, industries, and roads and bridges. Information was obtained from military and, civilian sources. O-'icers and civilians familiar with various phases of the subject were consulted personally. Representativ:3 of the Philippine Commonwealth Bureaus of Public Works, Planning, Statistics, and Audits were especially generous in their assistance as were also the President's advisor on Public Works and the Manila City Engineer. Ports and Harbors Sufficient data for inclusion in this report was secured on 19 of the Philippine's 50 principal ports. Table A gives the available information of these ports. It is believed that the monetary value of war damage to ports not included in the table is small. Practically all' ports require extensive repairs due to lack of maintenance during the war. Improve-.ments made by the U. S. Army after liberation have been of a temporary nature, and cannot be considered as contributing toward rehabilitation. Mr. A. T. Sylvester, Adviser to the President on Public Works, has stated that rehabilitation of ports in the Philippines by other agencies than the U. S. Armed Forces has been negligible to date. Cities War damage to cities is difficult to estimate especially in view of the whoiesale destruction of records by the Japanese during their occupation. The Commonwealth Bureau of Statistics is compiling estimates of their damage, but information requested from provincial cities is slow in compilation and lacking in uniformity of procedure. To date fairly accurate War Dlamage figures have been obtained for Manila and six other cities. From these figures expressed as a percentage of the valuation of all structures in the city in question, and from rough estimates of percentage damage in the other cities it is possible to project very roughly an estimate of damage to 21 principal cities. Table B indicates the estimated amount of War Damage to building structures in these cities. The total damage to the principal cities of the Philippines is estimated to be $178,259,000 based on pre-war valuations and distributed as follows: (a) damage to building structures $165,409,000; (b) damage to communication systems (telegraph, telephone, cable and radio) $7,000,000; (c) dalmage to utilities (electric, water and sewage systems) $2,750,000; (d) damage to city parks and monuments $3,100,000. These figures include damages to fixed installations only; damages to equipment and machinery being excluded therefrom. Damages to harbor facilities, roads and streets, and industries are also excluded from the above figures, as they are covered in other sections of this report. Rehabilitation of cities has to date consisted mainly of debris removal, construction of temporary structures, and the placing in operation by the United States of such water, sewage, electric, cement, sawmill, and ice plants as were required for military operation. These facilities are now being returned to the owners for operation. In most cases the equipment furnished by the United States is being transferred to the owners as partial or full payment for the services furnished or to be furnished to the United States. From 16 March 1945 to 5 January 1946, the City of Manil'a issued 2,445 building permits, for temporary structures, having a pre-war value of about $1,200,000. This is only about 0.5 % of the total war damage to building structures in Manila, and is believed to be representative of building rehabilitation in other cities of the Philippines. Industries This study is limited to a brief appraisal of the status of tangibles in the principal export industries with estimates of damage and comments on rehabilitation... I..... Iloilo City-looking toward Plaza Libertad from Rizal Street 6 The American Chamber of Cbmmerce Journal April, 1946

Page  7 Mining, a very important industry, has developed rapidly in recent years. In 1940 mine exports amounted to 1,470,000 metric tons at a value of approximately $46,000,000. Total war damage mostly by pilferage, and lack of maintenance is estimated at $60,605,000. Rehabilitation and reopening of mines has been held up by the lack of shipping and because of the unsettled political and economic situation in the Philippine Commonwealth. Fuels produced in the Philippines are timber, coconut husks, coal and oil. Timber is the primary fuel. Coal from the few operating mines supplies only about 1/10 of the island requirements. Coconut husks and oil have continued to supply civilian requirements. Petroleum has so far not been developed commercially. During the occupation these industries continued to be locally necessary, as they are at present, and therefore have not suffered great damage or needed extensive rehabilitation. The coconut and timber industries as such are covered below. Agricultzracl products have long been the chief of Philippine exports, both in terms of monetary value and in number of people employed. The 1940 valuation of principal agricultural exports, together with estimates of war damage to each including losses due to destruction or curtailment of crops and destruction of equipment is tabulated below. Little has been done to date to rehabilitate the sugar refineries and consequently the crop continues to be curtailed. War damage to coconut trees alone is estimated at $15,200,000 which will require years to rehabilitate. The abaca industry is a small scale one and rehabilitation of facilities is primarily a problem of clearing and replanting trees, damage to which is estimated at $16,000,000. Tobacco production in the past has been devoted largely to cigars as the soil' and climate do not produce good grades of cigarette tobacco. The Japanese during the occupation attempted to greatly increase the growth of cigarette tobacco. However the present demand for American cigarettes is such as to leave little doubt that the industry after rehabilitation will return to its more normal crop. Rice growing, livestock and fisheries are important local activities. Their products are consumed almost entirely in the Islands. The estimated value of war damage to these activities amounts to $120,819,000. Rehabilitation, because of local demand, is expected to be rapid. Forest Products. Almost 2/3 of the area of the Philippine Islands is forest land. The Commonwealth Bureau of Forestry licenses the cutting and sawing of lumber which amounts annually to about 900,000, 000 board feet, but represents only 1/4 to 1/3 of the amount that could be cut without depletion. It is estimated that war losses amount to $9,974,000 most of which is in destroyed or neglected sawmill's. The Japanese attempted to organize this industry during the occupation but (Continued on page 20) INDUSTRIE Sugar Abaca Tobacco Coconuts Total S 1940 EXPORTS $47,153,000 12,648,000 1,311,000 24,516,000 $ 85,628,000 WAR DAMAGE $47,295,000 25,632,000 20,259,000 6,651,000 $ 99,837,000 - -------------------------------- ----— *-~~~~~~` _I --- —ll —L~ —l~ I I ~' "~~ `"; I `.:: i~ ~:~' i ~~..:..~~~: Two views of Cebu, taken fr)om the Tower of the ruined Cathedral. In the lower picture can be seen Botica Boie Bzuilding (Foreground) and the Vision Theatre (Background) The American Chamber of Commerce Journal Alpril, 1946 7

Page  8 Real Wages And The Nation's Health By HORACIO C. LAVA the' Bulletin of Philippine Statistics, Vol. I, No. 2) (Reprinted from Computations made by statisticians of the Bureau of the Census and Statistics indicate that the cost of living as of December, 1945, was 6-1/2 times higher than the prewar level. It was lower than the level during the preceding seven months but still slightly higher than that obtaining during the first months of the liberation. The purchasing power of the peso in December 1945 (as compared to the 1941 peso) was only P0.1516. Wage rates on the other hand had not even doubled. Wages paid to skilled laborers employed in the City Government were only about 69 per cent higher than prewar; and wages paid by the U.S. Army to the same class of workers were only 44 per cent higher than prewar wages Unskilled laborers employed by the City Government received wages which were 75 per cent higher than prewar wages. The U.S. Army paid the same class of workers wages lower than the City Government. Private enterprises seemed to pay more. Skilled labor received wages about double the prewar rates and wages of unskilled labor increased threefold over the prewar rates. Reduced in terms of real wages (that is, wages in terms of goods and services they can buy), December wages were less than 1/3 of the wages paid before the war. Unskilled labor whose wages before the war averaged about P1.40 a day and now P2.50, actually received in December only P0.38 in real wages.l Workers had to receive P6.50 to get the prewar equivalent of P1.00. Prewar wages were considered bare subsistence wages. Studies made before the war on standards of living of workers in the City and the rural areas underscored the fact that incomes of workers were hardly sufficient for their daily consumption of rice and dried fish. There was no margin left to allow for a greatter variety in diet. Fruits, vegetables, meat and dairy products were items of luxury in the budget of the average workingman. After providing for food and house rent, there was little left for health, education, and recreation expenditures. If prewar wages were barely sufficient to meet expenses on standards of living which were considered of the lowest, how is it possible that wage earners today manage to live on real wages which are less than 1/3 of the prewar wages? A study made by this Bureau, of the levels of living of a group of wage earners in the City of Manila (Regalado, "Levels of Living in the City of Manila"), while not undertaken primarily to answer the above question, gives us a clue to the possible answer. The study reveals various makeshift methods by which extra incomes are earned-methods which, if adopted extensively, may lead to a progressive deterioration of the physical and moral health of our workers and their families. The study shows, among other things, that the families of wageearners manage to meet their living expenses in spite of low wages by means of (1) contribution of other gainfully employed members2 of the family to the common income; (2) additional work undertaken by the head of the family; (3) payment in kind received, the sources of which are undisclosed; and (4) limiting food purchases to canned goods mainly. 1. Contribution of Members of family.-The study shows that 95 out of 225 families, or 42.22 per cent, have additional earners besides the chief bread winner; 57 have one additional earner; 28 have 2 additional earners; and 10 have from 3 to 5 additional earners. Children as well as women are among the earners found in the survey. In surveys made before the war, the income of the head was usually, though not always, supplemented by his wife's earnings. Today, not only his wife, but most of the members of the household contribute to the income. What is the social implication of this arrangement? It is clear that children of workers' families cannot go to school and at the same time earn a living. The few that do so are sacrificing their health and studies. We can expect, therefore, that unless the situation is promptly remedied, there will be an increased illiteracy among our future working class population, and as like5ly, an impairment in their vitality. 2. Additional occupation of head of family.-The survey shows that about 13.8 per cent of the families supplement their income by additional work undertaken by the 1 Based on Cost of Living Index for December, 1945. 2 Members other than the head or chief earner of the family. chief wage-earner. No data are available as to the nature of and the number of hours devoted to additional work. The comparatively small amount of earnings from additional work would seem to indicate that only little time is devoted to the extra activity. Several cases, however, probably not representative, have come to our attention, where workers actually work two shifts of eight hours a shift. There are some employees who work in the government offices in the day time and work for the U.S. Army at night. Some tackle one shift in one U. S. Army camp and a second shift in another camp. There is no available means of estimating what proportion of our population are actually working from 14 to 16 hours a day. Under the present high cost of living, chief earners,receiving very low real wages who have no other able-bodied wage earner to contribute to the family income have only one choice: they either work long hours, or resort to some shady methods to increase their income. If they adopt the former, they ruin their health; if they choose the latter. they embark on a career of immorality and lawlessness, from which there is usually no retreat. 3. Undisclosed sources of additional income.-About 63 per cent of the families receive some sort of payment in kind, which represents about 10 per cent of the total income. The sources of such payment in kind were not disclosed to the investigator. The reluctance to reveal them may be due to the illegal or immoral nature of such sources. It is possible that some of this additional income has been secured from the U.S. Army, either by nilfering from their stores or thru "donations" from friendly G.I.'s. In spite of the lower wages in the U.S. Army, in comparison with civilian emnlovment, there are indications that the former is the more attractive. This can be explained only by assuming that other considerations besides pay enter into the preference for Army employment. The U.S. Armv. in adopting standards of wages which do not conform to changes in cost of living, in effect have invited pilferage and theft of its stores. This matter cannot be dismissed by branding the whole Filipino people as a nation of thieves. It is obvious that economic necessity is responsible 8 The American Chamber of Cbmmerce Journal April, 1946

Page  9 for the deterioration of the moral fibre of the war and postwar generation. The war and the occupation resulted in a ruthless contest for survival. In many cases, the only way to stave off starvation was to steal or else engage in some form of racket. The result of this struggle was naturally unfavorable to honest persons. These persons, unless they had independent sources of income, either died of starvation or, if they lived, are still suffering from the effects of malnourishment. The racketeer, the profiteer, the buy and sell merchant of death-these persons survived the war without any appreciable damage in physical health. WAGES OF LABORERS EMPLOYED BY THE UNITED STATES ARMED FORCES IN GREATER MANILA AREA AND BY THE CITY GOVERNMENT, BY OCCUPATION: 1941 AND 19451 Bureau of Census and Statistics I 1945 Occupation Index (Average) 1941 = 100 Real Wage 2. _ _ _~~ Assistant mechanics.. Capataz-carpenters.. Capataz-plumbers.. Carpenters... Checkers.... Chief auto mechanics.. Drivers.... Foremen.... Inspectors... Instrument men.... Lathemen... Masons.... Mechanics....... Painters........ Plumbers.... Plumber-tinsmiths... Storekeepers... Sub-foremen... Timekeepers... Toolkeepers... Watchmen... AVERAGE: Skilled and semi-skilled labor.. Common labor..... City Govt. 136.7 220.0 209.4 198.3 294.7 125.0 164.4 202.6 92.2 125.0 153.9 181.4 187.6 172.1 150.0 201.6 253.9 237.4 172.0 133.5 187.0 169.4 175.0 __ ---. U.S. Army 122.0 186.4 189.0 148.1 201.5 116.3 142.6 142.6 91.2 117.2 128.9 138.1 129.8 146.5 134.0 141.1 276.2 149.7 138.9 174.0 144.3 145.8 Citv Govt. P.52.80.75.53.57.73.45.70.69.59.59.52.71.46.44.56.72.62.49.39.42.58.87 _I U.S. Army P.46.68.68.39.39.68.39.49.68.55.49.39.49.39.39.39.78.39.39.39.50.51 Present conditions tend to favor the same class of persons. Unscrupulous racketeers and profiteers still ply their trade at the expense of the better section of our communities. Gradually, but all too certainly, the stigma which we used to attach to dishonesty, selfishness, and opportunism, has been removed. Our moral fibre as a nation is cracking. 4. Purchase of canned goods. - The survey indicates that the major portion of the diet of the families, excluding rice, consists of canned fish and meats. Fresh fish, meats, fruits and vegetables are beyond the buying capacities of families whose incomes fall below P10 a day. The effect of the exclusive use of canned foods on bodily health is already being felt. Certain types of skin diseases now prevalent are alleged by some physicians to be the result of canned goods diet. The effects of a diet of canned foods on bodily health should be a good subject for research by some capable biochemist or nutrition expert. SOME PROPOSED REMEDIES 1. Raise wages to conform to in cost of living.-In the light of the foregoing facts, it is not surprising that a wave of labor strikes is hitting the nation. It would have been more surprising and would speak very poorly of our progress in democracy if there were none. The facts have to be faced realistically. The wages now paid by the U.S. Army, the Philippine Government, and most private concerns are not enough for bare subsistence. Consequently, lowwaged workers are forced to supplement their earnings by devious ways-ways which lead to a deterioration of health or morals or both. It is the moral obligation of the U.S. Army and the Philippine Government to initiate increases in the pay of workers so that real wages may conform to prewar real wages. Private industry may also be forced to pay adequate wages through a minimum wage law, which should take into account changes in cost of living. 2. Reduce cost of living by rationing at controlled prices substantial amounts of basic commodities.The reorganization of the ECA and its conversion into another organization, the PRRA, must have had as its aim, greater efficiency in distributing rationed goods. Since its reorganization, however, the quantity distributed to householders has declined sufficiently to make the ration (Continued on page 18) 1 Preliminary. 2 Wage in terms of goods and services it can buy. This is obtained by dividing the 1945 wage by the cost of living index for the year 1945 (683.3). PREWAR AND POSTWAR WAGES IN PRIVATE ENTERPRISES IN MANILA, BY OCCUPATION: 1941 AND 19451 Bureau of Census and Statistics Average daily wages 1945 OccupationIndex 1941 1946 (Average Real Wage2 1941 = 100 Skilled labor: Blacksmiths.... P1.80 P3.50 194.4 P.51 Carpenters.... 2.50 5.61 224.4.82 Chauffeurs (drivers).... 1.33 3.61 271.4.53 Cigar-makers... 0.96 2.86 297.9.42 Electricians...2.80 3.53 126.1.52 Foremen.... 3.23 7.50 232.2 1.10 Mechanics. 2.50 4.86 194.4.71 Painters....... 1.33 3.53 265.4.52 Plumbers...... 2.00 4.82 241.0.71 Machinists...... 2.18 4.80 220.2.70 Lathemen.... 1.70 4.0'0 235.3.59 AVERAGE: Skilled labor... 2.08 4.42 217.7 1.65 Common labor... 1.02 3.23 316.7.47 3.23!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Preliminary. 2 Wage ia terms af goods and services it can buy. cost of living index for the year 1945 (683.3). This is obtained by dividing the 1945 wage by the The American Chamber of Commerce Journal Alpril, 1946 9 1.,~~~~~~~~~'

Page  10 THE AMERI COMMERCE L Published Monthly, in Manila, Philippines The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor H. A. Linn, Business Manager Entered as second class matter Dec. 10, 1945 at the Post Office at Manila, P. I. Subscription rates: One year in the Philippines, P5.00; United States, $5.00 U. S. Currency. American Chamber of Commerce of the Philippines Directors Wm. H. RENNOLDS, President Samuel Garmezy AMOS G. BELLIS, Vice-President E. M. Grimm E. BYRON FORD, Treasurer J. A. Parrish A. D. Calhoun Julius 8. Reese John F. Cotton PHILIPPINE ECONOMY-PAST, PRESENT, AND FUTURE Within the short time span of five years, Philippine economy has suffered four distinct shocks, any one of which in normal times would have threatened its structure. First came the Japanese conquest, the most immediate and most apparent effect of which was to destroy at one blow the lucrative foreign trade of the Philippines, which was a dominant factor in the economy of the country. Without warning, without even a one-day period of preparation or adjustment, the outgoing flow of sugar, copra, coconut oil, hemp, tobacco, minerals, embroideries, etc. was stopped. With the same abruptness, the country was deprived of the incoming flow of petroleum products, piece goods, steel products, rubber, machinery; drugs and medicines, etc. This was bad enough; but worse, far worse, was yet to come. The next shock, strictly speaking, was not a blow but a process of strangulation that continued for the three years of enemy occupation. a process that affected disastrously every phase of the Philippine economy. All financial institutions and transactions suffered increasingly during this period from the imposition of a fiat currency system and the wild inflation that resulted. The transportation system, both land and water, deteriorated so rapidly as to become practically non-existent before the first year was over. Labor found itself without employment except under conditions of slavery. Farmers found themselves deprived of even their nearby markets through the operation of military police barriers. Plantations, large and small, were forced to stop cultivation. And the industrial plant of the country suffered increasingly from systematic and sporadic looting, and from deterioration. This period of increasing chaos came to an end when the tide of warfare once more swept over the country. In desperate savagery, the Japanese delivered what was in effect the coup de grace to Philippine economy plants, with all their machinery and equipment, were dynamited and gutted with fire. Such warehouses, port facilities, office buildings, transportation equipment, agricultural machinery, as had survived the occupation period (and in some categories this was still considerable) vanished in rubble, twisted metal, dust, and ashes in a matter of days. And this was not the end. For in the indescribable, unutterable tragedy of the massacres of Central and Northern Luzon, community after community lost an appreciable part of its man-power. What was left of the Philippine economy at this point? Nothing but the barest, the rudest elements of economic life. There was left the land; but a large portion of the agricultural area had reverted to an uncultivated condition. There were left the forests, the rich forest lands of the Philippines; but sawmills and the means for getting the lumber out were non-existent. There remained the mineral deposits-the gold, silver, the chrome, the manganese, the copper, the iron; the lead; but hardly more accessible for economic use than they were in the year 1521. There remained the people, still a goodly number of them. But for three years they had lived not as the people of one country but as' the peoples of many different islands and communities, with little communication with each other. No schools, no currency (or very little), no banks, no post-offices, no transportation facilities, no power plants, no telegraph system, no radios, no hospitals, no factories: no newspapers. Just the people, undernourished and weak: the land, lackina equipment for its cultivation; the minerals, inaccessible; the trees. uncut; the roads. untravelled. This is not an exaggerated description. If anything, it is an understatement of the condition of this country iust a little more than one year ago; for no account has been given of the disruption of social and family life, the tragic loss of loved ones by those who survived.-matters of the nrofoundest economic implications though not measurable in pesos and centavos. At this point came the American Army, an impact still too recent in time for a fair estimate to be made of its full economic consequences. Some of these consequences however were immediately discernible. One of these was the sudden appearance throughout the country of a rapidly increasing amount of currency. Another was the entry of the army and its personnel in local markets as buyers of considerable power. These two factors, particularly since they operated at a time of great scarcity of food, building materials, and other products, led quickly to an inflation that is still an important characteristic of the economy of the country, and that is still an important obstacle in the road to economic recovery. At the same time, large scale emplovment of civilians by the army and a rapid increase in the size of the Philippine army drained the country of the labor nower normally available for normal civilian pursuits. These circumstances are pointed out not in a spirit of criticism. but because a dispassionate, objective view of conditions is imperative at this time. And so we come to the present, the here and now,a present that is immeasurably better than a year ago but that at the same time is far from satisfactory. Foreign trade has been resumed and is growing steadily. 'But it is still far from normal in amount or in character. Banks have re-opened their doors: the vital postal system has been restored to a considerable extent; trucks, buses, and ships are providing transportation that was unavailable a year ago. The withdrawal of army units has released much needed space for offices, warehouses, and living quarters; temporary repairs and structures have 10 The American Chamber of Commerce Journal April, 1946

Page  11 provided additional space for these purposes. But the industrial plant (sugar centrals, mine and lumber and oil mills, factories, etc.) and the urban areas of the country still lie in heaps of twisted metal, dust, and ashes. Labor, which only a few short months back was in great demand by the army, now finds itself without employment; for the army has left or is leaving, and labor's normal employers still lack the means for providing work and wages. And the continuing scarcity of vital food, clothing, and building materials causes inilation like a plague to penetrate every corner, no matter how remote. These three are today the vital economic 1roblems of the Philippines-restoration of industrial equipment and urban areas, unemployment, and inflation-and their solutions cannot be postponed indefinitely. Into this situation as described there is to be projected the rehabilitation program formulated by America. Still in process of final crystallization, the major elements of this program are embodied in two proposed bills-The Philippine Rehabilitation Act of 1946 and the Philippine Trade Relations Act. The purpose of the latter is to provide a favorable market for the products of the Philippines. The function of the former ]s to restore the physical plant of Philippine economy, so that those export products (all of which require a certain amount of industrial processing) may be provided; and it is to this bill with its immediate significance that we must look for help in solving our immediate problems. Will this program restore the Philippine industrial plant? As claims are passed, money becomes available, and imports increase, the rebuilding of the Philippines will no doubt rapidly get under way. When this period of feverish rebuilding slows down and, perhaps, come to a halt, what proportion of the industrial plant will have been restored! It may confidently be answered, "Not more than 50 % and probably less than that." The 'Tydings rehabilitation act provides for the discounting of claims of over $500 by 75%o of the excess over $500. At the same time, claims must be based on pre-war values, which are considerably lower than present-day replacement values. It is possible that under the stimulus of the trade bill, new capital will appear for the further rehabilitation of Philippine industries. But so far as the rehabilitation bill itself is concerned it would appear that the restoration of not more than 50%/ of our buildings and factories cal be anticipated. What of unemployment? The prospect for labor under this program are exceedingly bright, for the deniand for labor by the government for the rebuilding of public works and buildings and by private enterprise for rebuilding the cities and industries of the countryboth operating at the same time-will give the man who works with his hands a position he never enjoyed before There is every likelihoodJ that the present surplus will be quickly absorbed, and that a definite shortage of manpower will take the place of unemployment as a problem. And, finally, what of inflation? The answer to this question cannot be a simple one. Imported consumer products are arriving in ever-increasing amounts. The price curve on these shows a definite downward trend, which should continue. But considering the Rehabilitation Act alone, a definite danger of further inflation may be discerned, unless the rebuilding of the Philippines is accomplished in an orderly fashion that will prevent a radical dislocation of our economy. FOR FACTS AND INFORMATION READ THE JOURNAL By The Copy, 50 centavos By Subscription, 12 copies for -P-5.00 in the Philippines A CORRECTION Correcting anll error il the list of consulates published in our December, 1945 issue, the name of the Consul General of the Netherlands in Manila is Hendrik Bos. 'le American Chamber of Commerce Journal Aijril, 1946 11

Page  12 The Philippine Rehabilitation Act of 1945 EDITORIAL NOTE:-On October 18, 1945, Senator Tydings introduced a bill in the American Senate "to provide for the rehabilitation of the Philippine Islands, and for the other purposes." In addition to problems of rehabilitation, this bill dealt with the problems of trade relations between the United States and the Philippines.' On November 14, 1945, Representative Bell introduced his "Philippine Trade Act" in the House of Representatives which evidently led to the elimination from Senator Tydings' bill of all provisions pertaining to trade relations. On December 5, 1945, the Tydings' bill (the Philippine Rehabilitation Act of 1945) was passed by the Senate and sent to the House of Representatives for action. In our last issue (February, 1946) we gave our readers a complete reprint of the Bell Bill, now known as the "Philippine Trade Act." The Philippine Rehabilitation Act is too long for similar presentation in this Journal, but the following digest contains complete information regarding its main provisions as referred to the Committee on Insular Affairs of the House of Representatives on December 10, 1945. Appropriations The Philippine Rehabil: provides for the followi priations: Compensation for War Damage... Transfer of Surplus Property to t h e Philippine Government.... Restoration and Improvement o f Public Property and Essential Services....... C A t bt 2. The provisions of Title II of the Act, "Disposal of Surplus Property," itation Act are to be administered by the Foring appro- eign Liquidation Commissioner, who is authorized to transfer to the Commonwealth of the Philippines, without reimbursement, "property of the 330,000,000 United States... located in the Philippine Islands and declared surplus... upon such terms and conditions... as the Commissioner may deem 30,000,000 appropriate." 3. The administration of the $120,000,000 appropriated for the "Restoration and Improvement of Public Property and Essential' Pub120,000,000 lic Services," is divided among.?q v7a r l V oild rnl 4n AA ~1 pQ C -Q f. llr\SnTS ] Total...... $480,000,000 Of the sum to be appropriated for war damage, $1,500,000 is set aside for the expenses of the Philippine War Damage Commission, and $5,000,000 is earmarked as the maximum to be paid churches and other religious organizations "on account of loss of or damage to property consisting of churches, parish houses, and other property devoted to religious purposes (excluding schools, hospitals, and other charitable institutions). Administration of the Act 1. The money appropriated for war damages is to be administered by a Philippine War Damage Commission, consisting of 3 members to be appointed by the President of the United States. "All findings of the Commission covering the amount of loss or damage sustained, the cause of such loss or damage, the persons to whom compensation... is payable, and the value of the property lost or damaged, shall be conclusive and shall not be reviewable by any court." o"-vtccal UuurCl-zt i aguLlluie3 l iA6 VIIUWZ5. Public Roads-the Public Roads Administration of the Federal Works Agency. Port and Harbor Facilities-the Corps of Engineers of the U. S. Army. Public Property-the Philippine War Damage Commission. Public Health-the Public Health Service of the Federal Security Agency. Inter-Island Commerce-the U. S. Maritime Commission. Inter-Island Air Navigation-the Administration of Civil Aeronautics of the Department of Commerce. Weather Information-the Chief of the Weather Bureau of the Department of Commerce. Philippine Fisheries-the Fish and Wildlife Service of the Department of the Interior. Coast and Geodetic Surveys-the Coast and Geodetic Survey of the Department of Commerce. Over all agencies operating in the Philippines under the terms of this act, the U. S. High Commissioner is given the power of general supervision. Who May Claim Compensation? According to Section 102 (b), war damage compensation may be clainmed by the following: "(1) Any individual, who on December 7, 1941 (Philippine time), and continuously to the time of filing claim pursuant to this title, was a citizen of the United States or of the Philippine Comnmonwealth or of the Philippine Republic; (2) Any individual, who at any time subsequent to September 16, 1940, wand prior to August 14, 1945, served honorably in the armed forces of the United States or of the Philippine Commonwealth, or honorably performed "service in the merchant marine" (as defined in the first section of the Act entitled "An Act to to provide reemployment rights, for persons who leave their positions to serve in the merchant marine and for other purposes", approved June 23, 1943); (3) Any church or other religious organization; and (4) Any corporation... organized pursuant to the laws of any of the several States or of the United States or of any Territory of possession thereof (including any corporations or sociedad anonima organized pursuant to the laws in effect in the Philippine Islands at the time of its organization), but excluding any corporation wholly owned by the Commonwealth of the Philippines (or the Philippine Republic). (Continued on page 19) 12 The American Chamber of Commerce Journal April, 1946

Page  13 Review of the Philippine Mining Industry A timely presentation of the facts as published in the Philipipine Mining Yearbook for 1941, published by the Chamber of Mines of the -Philippines. PHILIPPINE GOLD PRODUCTION, 1935-1940 (Based on mill assays) Tons Average Cu. Yds. Average Total Year Milled Value Value andd Value value Value Per Ton cu. yd. 1935 1,422,851 P31,589,966 P23.51 277,443 P 102,654 P0.37 P31,692,620' 1936 2,178,710 43,572,712 20.00 985,805 829,942 0.84 44,402,654 1937 2,8ff6,800 50',931,419 17.77 630,620 329,227 0.52 51,260,646 1938 3,886,516 62,003,048 15.95 4,393,695 2,6'20,157 0.60 64,623,205 1939 4,431,961 71,739,095 16.19 4,664,916 2,392,121 0.51 74,131,216 1940 4,541,348 76,320,119 16.81 4,60'9,104 1,988,170 0.43 78,308,289 LABOR STATISTICS 1936 - 1940 Number of laborers Total Payroll and empr f lofficers Total Payroll (average) l(aborers) (average) (officers and employees) (P — _ -|-_ lesos) _ (Included in labor figures) 1936 44,291 11,795,86f6 1,602 3,294,148 1937 34,232 13,767,327 1,320 4,074,0'04 1938 36,104 16,722,731 1,141 4,671,005 1939 38,338 19,334,361 1,227 4,837,943 1940 42,931 21,984,914 1,345 5,178,502 SUPPLIES AND POWER 1936 - 1940 Year Lumber V Lumber Machinery, Supplies Power Consumed ( Bd. Ft.)alue o and other materials (K. W. H.) 1936 77,185,500 P3,859,275 P21,124,199 110,860,300 1937 74,320,0'00 3,716,000 23,363,230 130,300,50'0 1938. 80,968,063 4,017,387 27,651,585 158,690,244 1939 82,807,691 4,753,149 34,107,328 198,676,761 1940 84,267,607 4,866,16f2 36,660,647 228,746,462 NOTE: In item "machinery, supplies and other materials" are included all items purchased in the Philippines and abroad, such as rice, building materials, chemicals, electrical machinery and appliances, electrical spare parts, explosives, lime, machinery, machine tools and spares, lubricating oils, gasoline, tools, trucks, hospital equipment, etc. BASE METAL PRODUCTION Copper Concentrates Copper Ore Chrome Ore Year Tons Value Tons Value Tons Value 1936 5 P 1,704P.... P...... 6,645 P 249,270 1937 2,246 577,709 13,00'0 287,200 79,490 1,500,578 1938 3,889 1,367,099 17,133 305,656 40,353 803,231 1939 6,047 2,236,393 25,333 726,091 132,177 2,295,167 1940 7,957 3,338,635 29,874 954,905 186,002 2,612,192 Lead Zinc Manganese Ore Iron Ore Total Base Metal Production Year Tons Value Tons Value Tons Value Tons Value 1936........2,549 P 47,156 596,256 P2,108,841 605,455 P 2,40'ff,971 1937.... 48,364 25,218 495,551 593,894 2,139,048 713,848 5,048,450 1938.... 139,848 58,143 1,098,770 912,405 8,655,682 1,032,523 7,370,286 1939 Lead 44 6,781 29,394 60'2,623 1,166,781 4,914,800 1,359,730 10,781,855 1940 1",041 118,008 52,16'6 1,420,389 1,236,206 5,564,992 1,513,246 14,009,121 The American Chamber of Commerce Journal Aipril, 1946 13

Page  14 Philippine Gold Mining Companies Antamok Goldfields Mining Company Incorporated: August, 1932. Capitalization: Incorporated with an authorized capitalization of P1,500,000 which was raised to P3,000,000 authorized. The original issued capital of P1,375,000.00 was increased by a 100 per cent stock dividend in January, 1937 to P2,750,000. Property: Consists of 35 full and fractional claims and includes an area of some 231 hectares. Situated in the Baguio gold district approximately 18 kilometers from the city of Baguio via the Itogon road. Management: International Engineering Corp. Ore Reserves: 135,525 tons @ P15,37 - P2,083,179.00 Baguia Gold Mining Company Incorporated: 1930 Capitalization: P2,000,000 authorized; P1,299,950 fully paid. Property: 61 full and fractional claims in the Baguio gold district. Property adjoins Antamok group of Benguet Consolidated to the south, bounded on the southwest by Big Wedge Mining Company, on the east by the Gold River Property and on the northwest by the Baguio city limits. Management: Company Ore Reserves: Jan. 1, 1941: 221,723 tons @ P18.07 - P4,006,454.00. Balatoc Mining Company Incorporated: December 31, 1925. Capitalization: P6,000,000 fully paid. Present figure reached after 100 per cent stock dividend in 1935 and 50 per cent stock dividend in 1937. Property: Lode claims in Baguio gdld district. Management: Benguet Consolidated Mining Company. Ore Reserves: as of Jan. 1, 1941: Positive 1,414,056 tons @ P19.27 - P27,248,859. Probable: 1,090,255 @ P17.21 - P18,763,289. Total: 2,504,311 tons @ P18.36 - P45,998,898. Batong Buhay Gold Mines, Inc. Incorporated: November, 1934. Capitalization: P2,500,000 au thorized, P2,089,193.21 issued. Property: 50 full claims and several fractions in barrio Balatok, Kalinga, Mt. Province. Management: International Engineering. Ore Reserve: 60,021 tons @ P48.62 - P2,918,510.00. Benguet Consolidated Mining Company Incorporated: June 24, 1903. Capitalization: P12,000,000 authorized and fully paid. Par value P1.00. Present capitalization reached in 1939 by 100 per cent stock dividend. Property: Lode claims in the Baguio gold district, located on Antamok Creek about five miles from the city of Baguio. Management: Company. Ore Reserves: Positive: 485,350 tons @ P27.31. Probable: 918,370 tons @ P21.97. Total: 1,403,720 tons @ P23.83 - P33,457,390.00. Benguet Goldfields Mining Company, Inc. Incorporated: May, 1933. Capitalization: P200,000 authorized and fully paid. Property: Claims adjoining Demonstration in Baguio district. Management: Demonstration Gold Mines. Big Wedge Mining Company Incorporated: 1931. Capitalization: P2,000,000 authorized, P777,692.10 fully paid. Property: 80 claims about 16 kilometers southeast of Baguio. Management: Atok Gold Mining Company. Cal Horr Mine Property: Located in the Baguio gold district, the property is reached from Baguio via the Balatoc Road to the Kias Sawmill. From this point a private road some three kilometers in length leads to the mill and mine. Mawnagement: Property is unit of the Benguet Consolidated Mining Company. Ore Reserves: As of Jan. 1, 1941: Total 90,208 tons @ P12.20 -P1,101,004. Mineral Exploration and Developmnent Co. (Davao Gold Mines) Incor'porated: Dec. 1, 1933. Capitalization: P80,000 authorized and fully paid. Property: 36 claims lying in a compact group on both sides of the Hijo River, Davao, Mindanao. The property belongs to the Mineral Exploration and Development Company under operating contract to Elizalde & Company. Management: Elizalde & Company. Coco Grove, Incorporated. Incorporated: 1935. Capitalization: P1,500,000 authorized and fully paid. Property: Dredging ground controlled by Coco Grove includes some 1,088 hectares. Management: Marsman and Company. Ore Reserves: 14,320,000 cubic yards @ P0.42-P6,014,400. C(rown Mines, Incorporated. Incorporated: October 6, 1936. Capitalization: P1,000,000 authorized, P636,000 fully paid. Property: 24 claims in the Baguio gold district. Management: Demonstration Gold Mines, Ltd. Capsay Mining Company Incorporated: 1936. Capitalization: P300,000 authorized and fully paid. Property: 127 claims in five different groups in the Masbate gold district about five kilometers south of Masbate Consolidated. Management: Mines Operations, Inc. Ore Reserves: as of Jan. 1, 1941: Positive, 10,000 tons @ P21.00 - P210,000; Probable, 33,000 tons @ P13,33 - P440,000. 14 The American Chamber of Commerce Journal April, 1946

Page  15 Demonstration Gold Mines, Ltd. Incorporated: 1932. Capitalization: P1,000,000 authorized and fully paid. Property: Claims located about four miles south of Baguio. Malagement: Company. Ore Reserves: 63,960 tons @ P14.35 - P917,881.00. East Mindanao Mining Company. Incorporated: 1934. Capitalization: P1,000,000 authorized and fully paid. Property: 44 lode and 4 placer claims in barrio Tinabingan, near the town of Placer. Management: Company. Ore Reserves: 136,852 tons @ P22.06 - P3,019,482.63. Ipo Gold Mines, Inc. Incorporated: 1933. Capitalization: P1,000,000 authorized, P819,793.70 fully paid. Property: 73 full and fractional claims located in Ipo, Bulacan, about 50 miles from Manila. Management: Benguet Consolidated Mining Company. Ore Resreves: as of Jan. 1, 1941: Total 43,561 tons @ P10.59 - P461,406.52. Itogon Mining Company Incorporated: 1925. Capitalization: P2,500,000 fully paid. Rights issued stockholders in 1939 to subscribe to P500,000 worth of shares. Capitalization raised from 20,000,000 to 25,000,000 shares at that time. Property: 80 claims located some 26 kilometers southeast of Baguio. The elevation is about 4,000 feet above sea level measured at the collar of the main shaft. Management: Marsman and Company. Ore Reserves: 563,100 tons @ P17.11 - P9,635,640.00. I. X. L. Mining Company Ircorporated: April, 1932. Capitalization: Company had P25,000 when option was taken on Argos claims in 1932. Authorized and fully paid capitalization is now P1,500,000. Property: 33 lode claims in Balete, Masbate. Management: International Engineering Corporation. Ore Reserves: 268,677 tons @ P20.01 - P5,376,694.75 Masbate Consolidated Mining Company Incorporated: March, 1935. Capitalization: P5,000,000 with 50,000,000 shares of P0.10 par value. Property: 113 claims in the Aroroy mining district at Rio Guinobatan, Masbate. Company took over Gold Bug, Colorado and Panique mines, among others, when organized in 1935. (Continued on page 16) DIVIDEND RECORDS OF ALL MINING COMPANIES (Philippine Mining Yearbook foi 1941) No. of STOCK Shares Par 1940 1939 1938 1937 Issued Value Per Share Per Share Per Share Acoje.................... 9,000,000 P0.10.02... P0.01 Antamok Goldfields......... 27,500,000.10.01 P0.035 0.075 P0.10 Atok Gold................ 10,000,000.10.04 0.06 0.04 0.01 Baguio Gold............... 12,999,000.10.03 0.02 0.025 0.015 Balatoc Mining............ 6,000,000 1.00.70 0.80 1.10 1.00 Benguet Cons.............. 12,000,000 1.00.65 0.85 0.70 0.50 Big Wedge................ 7,776,921.10.04 0.04 0.04.... Coco Grove................ 15,000,000.10.015 0.02 0.02 Demonstration............ 10,000,000.10...... 0.04 0.04 East Mindanao............. 10,000,000.10... 0.01.... Eastern Development....... 111,500,000.10.. 0.001........ Hixbar Mining Co......... 5,487,200.10.04 0.04.... Ipo Gold.................. 8,197,937.10... 0.025 0.016 0.015 Itogon Mining............. 25,000,000.10.04 0.04.... 0.015 IXL Mining(1)............ 15,000,000.10.08 0.09 0.08 0.0125 Lepanto Cons.............. 17,500,000(2).10.035 0.005.. Marsman & Co. Com....... 1,880,600 1.00... 0.08 5.00(3) 1.25(3) Marsman & Co. Pref........ 1,880,600 1.00.08 0.08 Masbate Cons............. 50,000,000.02 Mindanao Mother Lode...... - 16,800,000(4).02 Mine Factors.............. 51,066,900.01.......... 0.002 Mine Operations........... 12,465,000.1J.005.... Nielson.................. 15,000,000.10... 0.005.. Paracale Gutmaus......... 5,000,000.10.05 0.005... Philippine Iron Com........ 40,000 50.00 5.00 10.00 17.50 10.00 Philippine Iron Pref........ 40,000 10.00.20 0.80 0.80 0.80 San Mauricio.............. 20,000,000.10.07 0.135 0.0237 Surigao Cons.............. 10,229,710.10.04 0.01.... Suyoc Cons................ 12,500,000.10.015 0.01 0.02 0.01 Syndicate Invest. Corn...... 1,000 100.00....... 7.50 Syndicate Invest. Pref. 9,000,000.10.......... 0.005 United Paracale............ 13,000,000.10.02 0.04 0.05 (')Adjusted to present capitalization. (2)7,000,000 escrow shares released September, 1940. (3) Paid on old issue of no par value. (4)5,500,000 escrow shares released July, 1940. The American Chamber of Commerce Journal April, 1946 15

Page  16 Philippine Gold... (Continued from page 14) Management: International Engineering Corps. Ore Reserves: 6,570,840 tons @ P5.74 - P37,716,621.60. Mayon Mining Corporation Incorporated: September, 1933. Capitalization: P100,000 authorized and fully paid. Property: Gold mine -at Exciban, Labo, C. N., 46 claims. Masbate Goldfields Inc. Incorporated: 1935. Capitalization:..100,000 No Par Value Shares - 80,000 Issued. Property: 133 claims and fractions in the barrio of Bangon, near Rio Guinobatan. Adjoins the claims of Masbate Consolidated on the south. Management: Asia Management Corporation. Mindanao Mining Company Incorporated: 1934. Capitalization: P1,000,000 authorized; P581,095.90 fully paid. Mindanao Mother Lode Mines, Inc. Incorporated: 1936. Capitalization: P2,000,000 of which 320,000 is in escrow, the rest being outstanding. Property: 134 claims about 17 kilometers from Surigao, Mindanao. Management: Company. Ore Reserves: 109,942 tons @ P40.64 - P4,804,230. Northern Mining & Development Co., Inc. Incorporated: January 17, 1934. Capitalization: P1,000,000.00. Authorized Capital; P833,121.30 Fully Paid; P20,000.00 Held in Escrow. Property: Tuba Group (65), Tawig Group (10) and Calibornay Group (16) are all located in Camarines Norte. Mapulot Group (11) is located in Tayabas. North Camarines Gold Mining Company Incorporated: September, 1034. Capitalization: P1,000,000 authorized, P851,138.40 fully paid, P144,500.00 escrow shares is sued. Property: 119 claims and fractions located in the Paracale gold district, Camarines Norte. Management: International Engineering Corporation. Ore Reserves: as of Jan. 1, 1941 - 13,000 tons @ P25.03 - P325,450.00. Paracale Gold Mining Company Incorporated: 1934. Capitalization: P1,200,000 authorized, P898,000 fully paid. P330,000 worth of shares in escrow. Par value of shares changed P0.10 to P0.06 each in 1939. Property: 38 claims in the Paracale gold district. Management: International Engineering Corporation. Paracale National Gold Mining Company Incorporated: June 4, 1937. Capitalization: P1,000,000.00 authorized, P409,165.00 fully paid, P550,000.00 escrow shares. Property: Claims in Paracale Gold District. Management: International Engineering Corporation. Ore Reserves: 3,000 tons @ P25.00 - P75,000.00. Paracale-Gumaus Consolidated Mining Company Incorporated: January 25, 1935. Capitalization: P500,000 authorized and fully paid. Property: 49 claims in the Paracale gold district. Management: Nielson and Company, Inc. Ore Reserves: 75,325 tons @ P24.36 - P1,834,917. Pugo Mining Company Inc. Incorporated: March 13, 1933. Capitaization: Authorized: P1,000,000.00; Paid up P326,739.00. Property: Claims in the Baguio gold district. San Mauricio Mining Company Incorporated: January, 1934. Capitalization: P2,000,000 authorized and fully paid. Rights were issued to stockholders for the purchase of P200,000 worth of shares in 1938. Present capitalization of P2,000,000 reached by 100% stock dividend paid in 1939. Property: 113 claims located in the northwestern part of the Paracale mining district, about 11/l kilometers from Mambulao. Management: Marsman and Com pany, Inc. Ore Reserves: 464,500 tons @ P29.56 - P13,730,620. Santa Rosa Mining Company, Inc. Incorporated: May, 1934. Captalization: Authorized and outstanding, P1,500,000.00. Property: 60 claims which adjoin t h e Mambulao Consolidated claims on the Northwest, and situated in the Paracale gold district. Management: Union Management Company. Ore Reserves: 155,816 tons @ P24.49 - P3,815,970. Surigao Consolidated Mining Company, Inc. Incorporated: August, 1935. Capitalization: P1,200,000 authorized, P1,023,400 fully paid. Property: 210 claims in the Surigao gold district near the barrio of Magpayang, Mainit, Surigao, Mind!anao. Management: Company. Ore Reserves: as of Dec. 31st, 1940; Positive Ore: 208,943 tons @ P19.31 - P4,034,689.33; Probable Ore: 252,468 tons @ P18.00 - P4,545,629.88; Total 641,411 tons @ P18.595 - P8,580,319.21. Suyoc Consolidated Mining Company Incorporated: September, 1933. Capitalization: P1,250,000 authorized and fully paid. Property: Claims in the Suyoc district about 100 kilometers north of Baguio. Management: Marsman and Company. Ore Reserves: 233,895 tons @ P27.70 - P6,432,113. Tambis Gold Dredging Company Incorporated: May 14, 1929. Capitalization: P400,000 authorized, P389,950 fully paid. Property: 12 placer and 42 lode claims located about 30 kilometers from Port Lamon and the same distance from Lianga, Surigao, Mindanao. Management: Company. Tinago Consolidated Mines, Inc. Incorporated: May 19, 1936. Capitalization: P1,000,000 authorized, P650,000 fully paid; P350,000 in escrow shares. Property: 66 claims located 3.5 kilometers northeast of Aroroy, Masbate. Management: Nielson and Company, Inc. Treasure Island Mining Company Incorporated: December, 1936. Capitalization: 2,500 shares of no par value, 500 shares being subscribed and paid up at time of incorporation. In 1938 company was granted permit to sell 2,000 shares. Property: 144 claims located in 16 The American Chamber of Commerce Journal April, 1946

Page  17 Lahuy Island, Camarines Sur. Management: Pan Philippines Corporation. Ore Reserves: estimated to be valued at P1,594,662.88. United Paracale Mining Company Incorporated: October 16, 1933. Capitalization: P1,300,000 authorized and fully paid. Property: Over 100 claims located southeast of] the town of Paracale on the south side of Paracale Bay. Management: Marsman and Company. Ore Reserves: 254,000 tolls @ P28.20 - P7,162,600. Philippine Base Metal Companies Acoje Mining Company Incorporated: October 14, 1935. Capitalization: P1,000,000 authorized, P900,000 fully paid. Property: C l a im s containing chrome are located in Zambales. Management: Company. Ore Reserves: About 150,000 tons of high, grade (48 to 51% CR203) ore is available. Agusan Gold Mines, Inc. Incorporated: March 25, 1935. Capitalization: P500,000 authori z e d, P419,095, subscribed: P416,731, fully paid. Property; 91 placer and lode claims containing gold and platinum, etc. in Butuan, Agusan, Paracale Iron Mines, situated in Paracale, Camarines Norte. Lode claims containing high grade hematic ranging from 60% to 69 % Fe. Larena Manganese Group irn Siquijor Island; 40'%/ interest in favor of Agusan Gold. Management: Insular Mining Operators, Inc. Ore Resreves: 2,000,000 tons averaging from 60 to 69 per cent Fe. Amalgamated Minerals, Inc. Incorporated: October, 1936. Capitalization: Authorized P1,000,000.00. Subscribed & fully Paid, P717,600.00. Property: Coron Manganese Property - Coron, Palawan; Bani Manganese Property-Bani, Ca marines Sur; San Nicolas Mn. Property-San Nicolas, Palawan. Gold Star Mining Company Incorporated: Capitalization: Authorized P2,000,000.00. Paid up P800,000.00. Management: Company. Hixbar Gold Mining Company Incoporated: October, 1936. Capitalization: P600,000 authorized at P0.05 par value each, P274,360 fully paid. Property: Claims on the Island of Rapu Rapu, Albay, P. I. Lepanto Consolidated Mining Company Incorporated: September 21, 1936. Capitalization: P1,750,000 authorized, and fully paid. Property: Copper claims near Suyoc, Mt. Province. Management: Nielson and Company, Inc. Philippine Iron Mines, Inc. Incorporated: September, 1930. Capitalization: P2,000,000. Common shares authorized and fully paid; P400,000.00 in Preferred shares authorized and fully paid; (P159,260.00 Redeemed as at Dec. 31, 1940). Property: Claims in Larap, Camarines Norte. Samar Mining Co., Inc. Incorporated: February 25, 1937. Capitalization: P1,000.00 Property: Claims on the Islands of Samar. Tagobomar Development Co., Inc. Incorporated: April, 1937. Capitalization: Authorized P2,000,000. Fully paid P101,595.45. Property: Chromite claims in Dinagat Island, Surigao; Coal claims Babais, Toledo, Cebu; Manganese claims in Siquijor Island, Negros Oriental. Management: Company. Zambales Chromite Mining Company Incorporated: May 16, 1936. Capitalization: P1,000,000.00 authorized; P756,917.51 fully paid. Property: 62 mineral claims, approximately 14 kilometers southeast of Sianta Cruz, Zambales. Management: Company is managed by the Union Management Company. known in this area, and the perfection of frequency and voltage control would cause envy of any Stateside integrated system. Mean Greenwich time is relayed each noon from Arlington, Va. and broadcast on the ship's Public Address System. A Seth Thomas pendulum clock on the Switchboard is then coordinated, although usually it is within one quarter second a day. A large Telechron electric clock syncronized with the standard at all times so that any cumulative error in frequency is instantly noticed. Except for distribution failures and interruptions, electric clocks in Manila, once set, will always read correctly to a fraction of a minute. Electric clocks aboard the Impedance have not been reset since last December. It is interesting to note that 'because of the high transmission voltage, ships tying up alongside must exercise care by grounding, to avoid possible lethal potential. Civil Service jobs on the ship offer lucrative pay to G.I.s and American Civilians who have aptitude. Filipinos find an opportunity to contrast the old and the new with an equal chance to handle all equipment. The ship has air-conditioned quarters for forty-nine men; and electric galley and mess facilities for twice that number; a Pilot House, Bridge Deck and four Main Deck Levels. It is nearly 400 ft. long, 52 ft. wide, and 25 ft. above water at A deck with a draft of 13 ft., displacing over 7,500 tons. Its double bottom carries 116,000 gallons of ballast, 548,000 gallons of fuel oil, 63,500 gallons of diesel oil, 56,000 gallons of fresh water and 28,000 gallons of distilled water. There are two Ingersoll-Rand 374 KVA Diesel generators for starting, one auxiliary 60 KW Diesel, and a well equipped machine shop. The main generator is 48 feet long, 37,500 KVA, Generaj Electric Company, 3,600; RPM hydrogen cooled unit coupled to a single Cylinder, 50,000 Horsepower, 19 stage Steam Turbine with extraction at 6th, 9th, 13th and 16th stages. The power thus equals that of the West Point. the Army's largest Troopship. The 50-60 cycle Frequency Changer, many motorsl and much of the switchgear are also General Electric. The giant three phase Transformer was made by Westinghouse. Tw6 boilers of 170,000 pounds per hour capacity at 900 pounds per square inch pressure, 900 degrees Fahrenheit, are (Continued on page 18) Pre-fabricated... (Continued from page 5) With Caliraya's reservoir nearly full, all possible load is now carried by them up to their capacity of 10,000 KW. Regulation of frequency and voltage is maintained by the Impedance which presently carries a peak load of about 20,000 KW. Should Caliraya trip out, the Impedance can easily handle the entire Manila load. Because the Impedance is of the latest design, its efficiency exceeds anything heretofore The American Chamber of Commerce Journal April, 1946 17

Page  18 Pre-fabricated... (Continued from page 17) by Babcock and Wilcox. Forced Draft Fans are Buffalo Forge and Ventilating Fans are manufactured by ILG. Feed Water Heaters and Evaporators are Foster Wheeler, Condensers and Heat exchangers are Elliot, Circulating Water Pumps Allis.& Chalmers, Travelling Screens are Chain Belt Co., and Boiler Feed Pumps are four stage, 1,200 pounds pressure, made by Worthington Pump and Machinery Company. Controls are by Bailey, Fisher, Swartwout, Cash, Lesl'ie, Sylphon and many others. Air conditioning units are Chrysler. Hydrogen at about one-half pound gauge pressure is maintained in the Generator Housing which very materially reduces windage and winding temperatures. It is transferred from sealed bottles at 1800 pounds pressure and kept at 98% purity inside the generator, eliminating all danger of explosion. Chemists in the laboratory constantly check water in the boilers, evaporators and condensers as not the slightest carry-over can be tolerated in the tubes of the high temperature superheaters. They also watch chlorination of potable and circulating water, using Wallace and Tiernan apparatus. Illustrating the lateness of design are the.double-wound induction motors which provide two speeds in single units for driving forced draft fans, boiler-feed and condenser cooling pumps. Boilers are novel having two Furnaces, with six burners on the Superheat side and three burners on the Saturated side. Bail'ey Control is automatic. Pipes carrying steam from boilers to turbine are actually red hot underneath special insulation, yet about one-one hundredth of a second after steam enters the Turbine at 835 pounds gauge pressure, it appears at the condenser, cool to the touch, at one half pound absolute pressure. The water rate of the Turbine is 7.78 pounds of steam per Kilowatt Hour, and at full load the plant would consume close to 2,000 barrels of fuel per day. The ship itself is perhaps the larg est single user of electricity in the City requiring over 1000 KW. The Impedance's capacity is so large that by manipulation of voltage, the transmission line around Laguna de Bay and Caliraya's Generator can be given a leading power factor. The designers of the Impedance have done a most creditable job, as restoration of normal civilization and life in Manila has depended on the utter reliability of this plant. Its withdrawal would leave the City handicapped for many months to come. Unlike most Army units which are deactivated or nearly so, the officers and men of the Impedance mu st combat the general apathy, maintain efficiency, aim for perfection and produce constantly more. Machinery and heatbalances are intricate and complex, requiring precise knowledge and operation. New men must be found and trained to replace all homeward-bound soldiers. Electricity has become so commonplace that it is taken for granted, yet continuity of service requires the utmost in organization and effort. The performance of the Impedance is a credit to Manila, to the General Engineer District under which it operates (Col. S. N. Karrick, Commanding), and to Meralco who handle all Dispatching and Distribution. Real Wages... (Continued from page 9) a negligible factor in the household budget. This is one reason why the decline in the cost of living is very slow. The PRRA would fall short of its objective should it fail to contribute substantially to the lowering of the prevailing high cost of living. 3. Fostering cooperatives.-While we have an established policy to encourage cooperative association, only recently has it been implemented by the revival of the National Cooperatives Administration. The growth of genuine cooperatives will go a long way to check profiteering and bring down prices to the relief of the masses. 4. More effective price control.In the past, price control was impossible; in fact it tended to increase rather than decrease prices. This was inevitable because of the absolute scarcity of goods in the market. At that time price control resulted merely in discouraging the sale of the goods in the regular channels. Today, the same situation does not prevail any more. Goods are no longer so scarce that sellers can impose unreasonable prices. The present policy by which the PRRA appears to fix prices at levels close to the prevailing high prices would defeat the purpose of price control - whose very object is to keep prices at reasonbl'y low levels. 5. Government production of basic necessities. S- ince the liberation, there has been a steady trend away from food production activities to non-productive ones. Gardens which were religiously tended during the Jap occupation are now completely abandoned. Ordinarily, this may be considered a healthy trend, an indication that our food problem is definitely solved once and for all. The abandonment of food production activities in the face of high food prices can be explained partially by the fart that prices of certain food products have in fact declined, and that there is no means of knowing beforehand which of these food products are worthwhile raising for profit. Since individuals do not and would not take the risks of loss incident to uncertain and declining market prices, the job of food production on a large scale should be undertaken by the government. PROSPECTS FOR EARLY SOLUTION The present prospects for the solution of these problems appear bright. The rapid growth of a healthy labor and peasant movement since the liberation will at least ensure that the employer, whether government or private, is bound to face the issue squarely. Already, there are signs of realistic thinking on the part of employers. The successful settlement of several workers' strikes, including those of the RCA, the Manila Railroad Company and the Metropolitan Water District, is a tribute not only to the growing strength of labor, but also to the level-headedness, if not, the progressive ideology of our government and industrial leadership. An outstanding example of progressive leadership is the recent action taken by the President of the Philippines in connection with the strikes of government corporations. Through his own initiative, the strikes of the workers of the Metropolitan Water District and the Manila Railroad Company were settled, by giving certain fundamental concessions to workers, including recognition by the Administration of the right of collective bargaining and the right of employees' representation - an act which should blaze the trail for a more progressive and more genuinely democratic government administration. It can be expected that when the long expected rehabilitation aid from the United States is finally received, the workers of the nation will be given substantial shares in the benefits to be derived therefrom. 18 The American Chamber of Commerce Journal April, 1946

Page  19 Philippine Rehabilitation... (Continued from page 12) Who Is Barred from Receiving Compensation? According to Sec. 103, the Commission cannot make payments: "(a) to any enemy alien; (b) to any person who, by a civil or military court having jurisdiction, has been found guilty of collaborating with the enemy, or of any act involving disloyalty to the United States or the Philippine Commonwealth; (c) to any corporation or sociedad anonima owned or controlled by any of the persons specified in clauses (a) and (b) of this section; (d) to compensate for any loss of or damage to property which, at the time of loss or damage, was insured against any one or more of the perils specified in section 102 hereof, except to the extent that the loss or damage exceeds the amount of such insurance, whether or not collectible; (e) to compensate for any loss or damage (1) for which the War Department or the Navy Department is authorized to make payment, or (2) for which compensation or indemnity is otherwise payable, or has been paid, or is authorized to be paid, by the Philippine Government or by the United States Government or by their respective departments, establishments, or agencies, unless the Government, department, establishment, or agency concerned has declined to pay compensation or indemnity for such loss or damage; (f) unless the claimant shall file with the Commission, within nine months after the enactment hereof, a claim in reasonable conformity with the requirements of this title and such reasonable regulations as shall be established by the Commission." Types of Claims To Be Paid Sec. 1,02 (a) authorizes the payment of claims covering property loss or damage resulting from,: "(1) Enemy attack (including action taken by or at the re quest of the military, naval, or air forces of the United States in resisting enemy attack); (2) action taken by enemy representatives, civil or military, or by the representatives of any government cooperating with the enemy; (3) action by the armed forces of the United States or other forces cooperating with the armed forces of the United States in expelling the enemy from the Philippine Islands; (4) looting, pillage, or other law lessness or disorder accompanying the collapse of civil authority or incidental to control by enemy forces." Types of Claims Not To Be Paid Sec. 110 provides that the following classes of property shall be excluded from all benefits of this Act:"(1) Accounts, bills, records, files, plans, drawings, formulas, currency, deeds, evidences of debt, securities, (Continued on page 23) SQUIRES BINGHAM CO., INC. IMPORTERS-EXPORTERS * FIREARMS & AMMUNITION * MEN'S APPAREL * FISHING TACKLE * SPORTING GOODS * CONSTRUCTION MATERIAL * GEN. MDSE. * NEW YORK-MANILA. Wholesalers & Retailers 1002-6 R. HIDALGO, MANILA The American Chamber of Commerce Journal April, 1946 19

Page  20 Destruction and Rehabilitation... (Continued from page 7) had little success. Its rehabilitation now depends on the reestablishment of government concessions, the obtaining of shipping facilities and the rejuvenation of the building industry which it supplies. Army engineers have been operating sawmills with civilian aid at locations and with personnel and equipment tabulated below. This operation is being terminated and transferred to civilian limited scale and to the extent of availability of raw materials. Damage and rehabilitation to these plants is included in Table B. Other manufacturing activities consist of the following:1 -a. Cotton Mills having an aggregate of approximately 1,200 looms and 18,000 spindles were operating in Manila before the war. The Japanese proposed extensive expansion of this industry together with increase in cotton production in order Location Manila Dingalin-Bitulok Famy, Laguna Bongabon, Midnoro Fabrica, Negros Bataan Nasipit, Mindanao TOTALS Army Personnel 10 155 155 18 7 310 155 810 Civilian Personnel 250 800 120 150 800 400 50 2,570 Monthly Payroll $11,000 31,000 3,611 4,350 27,000 7,000 625 Value of Army Equipment $ 30,000 150,000 70,000 35,000 20,000 150,000 80,000 $535,000 Luzon. The Cebu plant at Naga was operated by the National Development Company and had a capacity of 3,000 bbls. per day. The Luzon plant at Binangonan was privately owned and had a capacity of 1,800 bbls. per day. Both plants require imported coal and gypsum. During the Japanese occupation it is believed that only the Luzon plant was operated, using such coal and gypsum resources as were available nearby. The Cebu plant, operated by electricity, was further incapacitated due to the necessity of using its power plant to supply the city of Naga whose power plant had been destroyed. U. S. Army engineers have assisted in the rehabilitation of these plants as tabulated below. This operation is being terminated and will be transferred to civilian agencies who can take over with a minimum of additional rehabilitation. c. Shipbuilding and Repair facilities while damaged during the Japanese invasion were rehabilitated in part and extensively used during the occupation. Known damage is covered in the section on ports. Extent of further rehabilitation to date is negligible. agencies except at Bataan where increased army activity is contemprated. Manufacturing. 90% of manufacturing plants in the Philippines are located in or near Manila and are engaged primarily in the procession of agricultural and forest products. In anticipation of eventual independence the Commonwealth government has sponsored locally needed industrial developments. During the Japanese occupation plants producing locally needed commodities were permitted to operate on a to make the Philippines self-sufficient in textile production. Some progress was made along this line and will, no doubt, be continued when the domestic economy settles down. b. Cement Manufacture in the Philippines has been limited to two plants; one in Cebu and the other in Location Binangonan Naga TOTAL Military Civilian Personnel Personnel 3 671 3 1,540 6 2,211 Monthly Payroll $18,630 $60,990 $79,620 Value of Equipment (Army) $ 44,000 $125,000 $169,000 TABLE A TABULAR DATA OF WAR DAMAGE TO HARBOR FACILITIES Estimated ~ Per Cent Estimated hab Name pOriginal Per CentlDalmaged ehabiliNameCost Damaged amage tation Tabacd 130,000 5%o 6,500 None Jose Panganiban 108,000 20%o 22,000 None Hondagua 381,000 9% 35,000 None Gan Bay (Currimao) 45,000 15%o 6,800 None San Fernando (La Union) 77,000 100%o 77,000 Temp. War Masinloc 1,012,000 0-100%o 34,000 None Mariveles 80,000 75%o 60,000 Temp. Repairs Manila 0- 20o 3,004.000 Temp. Repairs Batangas 133,000 100%o 133,000 Temp. War Puerto Princesa 62,000 6% 4,000 Temp. Repairs Tagbilaran 103,000 30% 31,000 None Cebu Unknown 13%o-100o Unknown Temp. Repairs Dumaguete 103,000 15% 15,500 None Pulupandan 103,000 15%o 15,500 Temp. Repairs Iloilo 3,545,000 15%- 35%o 776,000 Temp. Repairs Catbalogan 157%-100%o None Iligan 80,000 30%o 24,000 None Tolo 188,000 3% 5,000 None Zamboanga 400,000 20% 80,000 Temp. Repairs 20 d. Breweries had, before the war, a capacity of 5,000,000 gauge liters of beer per year. One also operated a dairy products plant, a glass factory, a carbon dioxide plant and a large ice and cold storage establishment. These plants continued in operation during the occupation but were damaged in the reconquest. The extent of damage is covered in the section on cities. Rehabilitation progress is being made despite shortage of materials since the product is in great demand. e. Shoe factories, before the war, had a capacity of 750,000 pairs of leather shoes; per year and rubber soling facilities for 3-,000,000 pairs of imported canvas uppers per year. This activity has continued on a limited scale since. However the necessary importation of leather and canvas tops has seriously curtailed production. f. Other minor industries included button factories, starch factories and a match factory-all have had to operate on a curtailed basis, both during and since the war. The American Chamber of Commerce Journal April, 1946

Page  21 Highways and Bridges The Philippine Road System consists of national highways, provincial highways and city streets and thoroughfares. a. National highways form the framework of the entire road system. They are, for the most part, Class I roads, constantly maintained for all weather use with right of way of at least 15 meters, road width of at least 7 meters and surfacing of at least 5 meters. Bridges are masonry, reinforced concrete or steel., There are approximately 6,250 miles of highways and small' bridges in the national road system and 6,800 meters of bridges over 5 meters long. b. Provincial highways, serving their regions, also act as feeders to the national highways system. They are Classes I, II and III roads depending on the type and amount of traffic. Class II roads are graded, partially surfaced and intermittently maintained. Fords may be used instead of bridges or ferries and roads may be impassable in the wet season. Class III roads are all other roads or cart tracks over established rights of way. There are approximately 5,475 miles of provincial highways and small bridges in the islands.' There are 35,000 meters of bridges over 5 meters long. c. City highways or thoroughfares under national or provincial governments are of different classes and amount to approximately 880 miles with 4,800 meters of bridges over 5 meters long. War Damage to Roads, while due in part to bombing and demolition, is largely the result of heavy traffic and little or no maintenance during the Japanese occupation. The Commonwealth Bureau of Public Works estimates the damage to national and provincial highways, roads and thoroughfares (pre-war costs) at $33,068,084. (For detailed estimate see Table C). War damage to bridges consists of the partial demolition or complete destruction of almost all bridges on the national highway system, and of many on the provincial system. For example, of 337 bridges on Luzon, over 180 were damaged. The Commonwealth Bureau of Public Works estimates the damage to all bridges (pre-war costs) at $16,276,906. (For detailed estimate see Table C). a. Rehabilitation to date by U. S. Armed Forces has consisted of temporary repairs to almost all bridges to make them passable and continued (Continued on page 22) TABLE B WAR DAMAGE TO BUILDINGS IN PRINCIPAL CITIES OF THE PHILIPPINES (Based on pre war values) Total Estimate Total Estimated Damage Province City Population Values of Bldg. Damage to Bldg. Per cent Province City Population Structures Structures Structures Structures Of Value (Pesos) (Pesos) Albay @ Legaspi 15,780 P 4,099,000 P 3,280,000 (b) 80.0 Bulacan @ Malolos 33,384 3,527,000 407,000 11.5 Cagayan @ Tuguegarao 10,281 5,574,000 4,189,000 75.1 Cagayan Aparri 12,458 4,067,000 2,843,000 69.9 Capiz @ Capiz 10,204 5,791,000 4,343,000 (a) 75.0 Cavite @ Cavite 32,573 8,339,000 4,121,000 49.4 Cebu * Cebu 62,907 36,458,000 21,349,000 58.6 Cotabato Dulawan 17,937 379,000 0 None Davao * Davao 24,521 15,333,000 11,500,000 (a) 75.0 Ilocos Norte @ Laoag 21,236 9,510,000 951,000 (a) 10.0 Iloilo * Iloilo 63,954 30,790,000 23,200,000 (b) 75.0 Laguna San Pablo 15,393 1,378,000 1,030,000 (b) 75.0 Leyte @ Tacloban 19,048 2,193,000 548,000 (b) 25.0 Mountain * Baguio 24,177 17,362,000 13,900,000 Negros * Bacolod 25,562 22,136,000 2,135,000 8.6 Negros @ San Carlos 10,889 10,627,000 2,657,000 (a) 25.0 Culu Jolo 12,571 2,137,000 214,000 a) 10.0 Tarlac Tarlao 16,350 9,420,000 4,710,000 (b) 50.0 Tayabas Lucena 11,674 2,699,000 675,000 (a) 25.0 Zamboanga * Zamboanga 12,469 7,884,00/3 5,913,000 (a) 75.0.,__~ *, l* n 5 | f i. 428,308 i r Manila * Manila 684,800 335,718,000 222,853,000 66.4 TOTAL 1,326,618 P535,421,000 P330,818,000 *- Indicates Charted Cities @ - Indicates Provincial Cities Figures for Public Bldgs. are only available by Province. Estimates are prorated on a per capita basis. (a) - Estimates obtained by consultation with local residents. (b) - Estimates obtained from Commonwealth Bureau of Plann ing. TABLE C SUMMARY OF ESTIMATED VALUE OF DAMAGED OR DESTROYED ROADS INCLUDING MINOR STRUCTURES AND BRIDGES AS OF NOVEMBER 1, 1945 )ads & Minor Structures BRID GES (Under 5.0 m. span) (5.0 m. span & over) Estimated Estimated Kms. Damage Meters Damage (Pesos) (Pesos) rotal Value Damages Pre-war Costs 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Bohol 485.39 Cebu 1,097.58 Leyte 688.22 Luzon 9,605.35 Marinduque 171.1 Masbate Mindanao Mindoro Negros Palawan Panay Romblon Samar Sulu 244.9 3,540.37 204.89 1,361.23 227.64 1,585.81 224.47 598.88 252.03 1,795,700 2,712,650 1,897,800 40,531,532 122,080 312,500 7,177,283 293,300 4,071,995 681,547 3,847,721 471,730 1,614,289 606,242 409.0 2,939.50 1,203.0 44,149.51 468.81 792.0 21,873.15 2,130.60 5,955.01 7,800.0 12,596.65 1,317.0 4,051.2 96.8 28,700 987,570 159,500 23,278,852 80,322 92,940 3,539,726 231,000 924,136 468,000 2,263,400 105,420 386,500 17,747 P 1,824,400 3,700,220 2,057,300 63,810,384 192,402 405,440 10,717,009 524,300 4,996,131 1,149,547 6,111,121 577,150 2,000,789 623,989 Totals 20,287.86 66,136,369 105,782.23 32,553,813 98,690,182..,,,,,,,,,,,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The American Chamber of Commerce Journal April, 1946 21

Page  22 _ I _/N 1871 THE SUN LIFE OF CANADA issued its first policy from a small office in Montreal. In 1895-an important date in the Company's history-the organization was extended into the United States where, from coast to coast, it now maintains a highly efficient branch office and agency service. The Company's growth is significant proof of wide public acceptance. Through three quarters of a century, during which wars have scarred the earth, and mighty inventions and discoveries have altered man's destiny, the Sun Life of Canada has met successive opportunities, expanding as life and industry took on new shapes and aspects. In 1895-at the end of the first twenty-five years of operation-the assurances in force amounted to $35 million. At the end of fifty years-in 1920-this amount had risen to $488 million. Today, after seventy-five years of public service, the Sun Life of Canada holds a leading place among life assurance companies with well over one million policyholders, and assurances in force of $3,390,372,327. The Company's financial strength and high standard of service are indeed worthy of the finest traditions of a great time-honored enterprise. I Sun Life Reports Large Increase In Assets Of the three billion dollars of life assurance now in force with the Sun Life of Canada, well over 40 % is held by policyholders in the United States. This fact was revealed at the Company's 75th Annual Meeting hel'd in Montreal on February 12th, at which one hundred million dollars increase in assets (largest in any single year since the first policy was written), $241 million of new business with over ninety millions paid to policyholders during 1945, and an increase in policyholders dividends, were reported by Arthur B. Wood, President and Managing Director. The Company's Annual Statement the most outstanding in its history -showed that total assurance in force now stand at the record high figure of $3,390,372.000, total benefits paid since organization are now $1,800,672,000, while assets now amount to over one and one-quarter billion dollars. The Sun Life's first policy was issued in 1871. In the Philippines it has been established almost 50 years. Discussing the Company's progress during 1945, Mr. Wood said that the ordinary assurances secured during the vear amounted to $213, 662,421, and group assurances totalled $27,747,398. Total annuity payments now being made amount to $10,371,347 yearly, and provision is being made for future annual payments of $37,265,767. Total premiums from policyholders during the year were $133,109,745, (Continued on page 24) From the 1945 Annual Report Benefits paid since Organization................ Benefits paid in 1945...... Assurances in force....... New Assurances in 1945.. $1,800,672,431 $ 90,226,067 $3,390,372,327 $ 241,409,819 IUo. ll rg g' Destruction and Rehabilitation... (Continued from page 21) road maintenance to permit military and civilian use of all major roads. Maintenance work has involved the equivalent of 3 Engineer Construction Battalions plus 5,500 civilians employed by the army at $165,000 per month. Army equipment and small tools being used are valued at $600,000. On February 27, 1945, the Commonwealth President made $3,250,000 available for maintenance of national and provincial' roads. The Bureau of Public Works estimates that the Philippine Government has spent approximately half of this sumI to date, entirely on maintenance projects. Virtually, no rehabilitation of a permanent nature to roads or bridges has been accomplished by either military or civilian authorities. SUN LIFE OF CANADA Copy of the Annual Report for 1945 may be obtained from: Philippines Branch Sun Life of Canada, Wilson Building, Manila J. R. PATON Branch Manager A. I. BRYAN Resident Secretary - ~ ~ - 22 The American Chamber of Commerce Journal April, 1946

Page  23 philippine Rehabilitation... (Continued from page 19) money, bullion, furs, jewelry, stamps, works of art, antiques, stamp and coin collections, manuscripts, books and printed publications more than fifty years old, models, curiosities, objects of historical or scientific interest, and pleasure aircraft; (2) Vessels and watercraft, their cargoes and equipment, except (a) vessels used or intended to be used exclusively for storage, housing, manufacturing, or generating power, (b) vessels while under construction until delivery 'by the builder, or sailing on delivery or trial trip, whichever shall first occur, and (c) vessels propelled by sail; (3) Real property (Other than standing timber, growing crops, and orchards) not a a part of a building or structure; (4) Intangible property; (5) Passenger - carrying motor vehicles except those principally for commercial purposes; (6) Property diverted to the Philippine Islands, by authority of the United States Government or otherwise, as a result of war conditions; and (7) Property in transit (a) which at the time of loss or damage was insured against war perils, or (b) with respect to which insurance against such perils was available, at the time of loss or damage either at reasonable commercial rates or from the United States Maritime Commission." Amount of Payments Sec. 102 (a) states "That no payment or payments shall be made in, an aggregate amount which exceeds whichever of the following amounts, as determined by hte Commission, is less: (a) The actual cash value, at the time of loss, of property lost or destroyed and the amount of the actual damage to other property of the claimant which was damaged as a direct result of the causes enumerated in this section; (b) the cost of repairing or rebuilding such lost or damaged property, or replacing the same with other property of like or similar quality: Provided further, That in case the aggregate amount of the claims which would be payable to any one claimant under the foregoing provisions exceeds $500, the aggregate amount of the claims payable to such claimant shall be reduced by 25 per centum of the excess over $500." Inter-Island Shipping For the rehabilitation of interisland commerce, Sec. 306 (a) authorizes the U. S. Maritime Commission to charter under such terms and conditions (including nominal rates of charter hire) vessels of less than two thousand gross tons to individuals, corporations, or cooperatives or other forms of business organizations in the Philippine Islands if the Commission determines that they possess the ability, experience, financial resources, and other qualifications, necessary to enable them to operate and maintain the vessels in the inter-island commerce in the Philippine Islands: Provided, That any charter entered into under the authority of this section shall contain a provision requiring that the vessel shall be operated only in the interisland commerce in the Philippine Islands." LORD AiVERT Blended CanadianWlhiskI BECAUSE Lord Calvert is so rare, so smooth, so mslow, it is invariably found in the company of thoco who can afford the finest. I 0 - -~ --- — - -- k** We are Now pAiNTING I WI ~ 'Vr Sole Importers Far East and PacificTrading Co. Sotrano Building,Manila EL NDID AND BOTTLED UNDER CANADIAN COVERNMENT SUPERVISION l( etzA Mi ERSTBUil l RGi ONTARIOA t AMHERSTBURG.ONTARIO ON YOUR PAINTING PROBLEM... CONSULT EMILIO REYNOSO & SONS, INC. (ESTABLISHED 1907) 3rd FLOOR CHACO BLDG. - PLAZA CERVANTES MANILA I - - - I The American Chamber of Commerce Journal April, 1946 23

Page  24 CONSOLIDATED PAID-UP CAPITAL OF CORPORATIONS AND PARTNERSHIPS REGISTERED: 1945 (MAY-DECEMBER) Bureau of the Census and Statistics General 1 Partnerships. Corporations Gneral Partnerships Grand Total Partnerships Limited Month / --— L-imie Num- Capital Num- Capital Num- Capital Num- Capital her j (Pesos) her (Pesos) er (Pesos) ber I (Pesos) TOTAL 345 9,644,710 210 7,389,402 13 514,000 568 17,548,112 May 3 40,100 -- - - 3 40,100 June 9 420,690 - - - 9 420,690 July 25 425,500 13 465,000 2 42,000 40 932,500 August 37 1,592,119 30 725,800 2 154,000 69 2,471,919 September 44 1,053,599 24 317,500 1 60,000 69 1,437,099 October 58 2,043,027 41 1,651,500 2 43,000 101 3,737,527 November 83 1,694,380 50 1,898,002 6 215,000 139 3,807,382 December 86 2,369,295 52 2,331,600 - - 138 4,700,895 REAL ESTATE MORTGAGES AND SALES, TRANSFERS AND CONVEYANCES IN T'HE CITY OF MANILA, BY MONTH: 1945, 1944 and 1943 Bureau of the Census and Statistics REAL ESTATE SALES, REAL ESTATE MORTGAGES TRA FERS AN CO EANCS Months 1945I 1944 1943 1945 1944 1943 (Pesos) (Pesos) (Pesos) (Pesos) (Pesos) (Pesos) _ _. ~~94114 Sun Life Reports.. (Continued from pa.ge 22) an increase of nearly $10 million over the previous year. The in. come from all sources reached the record figure of $219,378,690, an increase of $34,563,314. Inclu. ded in the income is an amount of nearly $27 million left with the Com. pany by policyholders and benefi. ciaries under various privileges of settlement-or nearly 40%o of all death claims, matured endowments, and dividends disbursed during the year. Total payments to policy. holders and beneficiaries during 1945 amounted to $90,226,067. The normal earnings for the year amounted to $21,685,890. The "nonrecurring" earnings arising from the sale or redemption of securities etc., totalled $18,256,014. This amount was added to surplus which now stands at $56 million and with the contingency reserve of $15 million makes a combined surplus and contingency reserve of $71 Mr. Wood revealed that the Company, through the war period, had paid $6,600,000 in death claims covering policyholders in the armed services, and $1,090,000 in respect of deaths among civilian policy(Continued on page 27) TOTAL December November October September August July June May April March.February January 9,409,310 2,945,530 1,271,450 704,550 721,250 1,599,770 684,400 892,390 398,270 19,200 34,000 138,500 22,531,570 1,359,350 1,160,000 1,671,520 2,456,180 2,188,660 2,144,460 1,878,900 1,361,710 1,272,820 1,546,940 2,344,180 3,146,850 11,506,340 2,243,460 1,269,480 2,788,890 1,386,290' 2,839,470 978,750 22,890,133 2,874,408 2,555,472 2,096,893 1,870,670 699,740 1,123,565 1,212,680 962,008 213,262 1,337,830 7,943,605 165,868.567 13,687,960 11,017,487 16,849,110 18,130,165 17,261,190 18,192,160 15,674,329 12,855,430 8,930,100 7,867,980 11,815,250 13,587,406 65,350,640 18,515,740 10,820,310 12,533,080 9,866,700 9,399,920 4,214,890 CHATTEL MORTGAGES IN THE CITY OF MANILA, BY MONTH 1942 - 1945 Bureau of the Census and Statistics MONTH 1945 1944 1 1943 1942 TOTAL 1,477,000 1,583,540 1,474,170 357,490 January 85,000 11,610 February 306,650 512,370 March 373,350 112,340 April 99,580 8,380 May 6,000 48,000 8,920 June 16,580 412,000 63,000 67,570 July 63,400 47,360 5,290' 20,930 August 31,500 46,310 11,190 September 166,420 2,500 3,750 14,690 October 687,850 157,000 511,050 149,930 November 53,750 20,600 83,850 24,050 December 483,000 107,300 69,130' Commonwealth of the Philippines Department of Public Works and Communications BUREAU OF POSTS Manila SWORN STATEMENT (Required by Act No. 2580) The undersigned, Robert S. Hendry, editor of American Chamber of Commerce Journal, published monthly in English at the American Chamber of Commerce, after having been duly sworn in accordance with law, hereby submits the following statement of ownership, management, circulation, etc., which is required by Act No. 2580, as amended by Commonwealth Act No. 201: N a m e Post-Office Address Editor-Robert S. Hendry 8 J. Ruiz St., San Business Manager-H. A. Juan Linn 1138 Don Quijote, SamOwner-American Cham- paloc ber of Commerce 605 Dasmarifias, Manila Publisher-A m e r i - 605 Dasmarinias, Manila can Chamber of Cor- Azcarraga, Manila merce American Chamber Printer-Carmelo & Ba- of Commerce uermann 605 Dasmarifias, Manila If publication is owned by a corporation, stockholders, owning one per cent or more of the total amount of stocks: NO Bondholders, mortgages, or other security holders owning one per cent or more of total amount of security: NONE In case of publication other than daily, total number of copies printed and circulated of the last issue. dated December, 1945: 1. Sent to paid subscribers.......... 80 2. Sent to others than paid subscribers 1,650 Total......................... 1,730 (Sgd.) ROBERT S. HENDRY Editor Subscribed and sworn to before me this 11th day of April, 1946, at Manila, the affiant exhibiting his Residence Certificate No. A-334611, issued at San Juan, Rizal, on Feb. 7, 1946. (Sgd.) NICODEMOS L. DAS1U3 Notary Public Until Dec. 31, 1946 Doc. 337 Page 69 Book No. X, Series of 1946 The American Chamber of Commerce Journsl April, 194d 24

Page  25 — ~~- -- INHELDER INCORPORATED 5th. FLOOR TRADE & COMMERCE BUILDING MANILA Dealers in: PHARMACEUTICAL SUPPLIES INSTRUMENTS GROCERIES - TEXTILES I - - " -- IL 515 QUEZON BVD., MANILA, P. I. Indentors & Importers OFFICE EQUIPMENT AND SUPPLIES CHEMICALS & LABORATORY EQUIP. COSMETICS ~ TEXTILES ~ NOTIONS I, rlT~o OLD JHOMPSON BRAND / A BETTER BLEND I nPSOf FOR BETTER DRINKS Glenmore Distilleries Company Incorporated Louisville, Kentucky Blended Whiskey, 86.8 Proof-65% Grain Neutral Spirits Sole Importers: FAR EAST & PACIFIC TRADING CO. A. Soriano y Cia. General Managers Soriano Bldg. Manila THE BACHRACH MOTOR CO., INC. TEMPORARY OFFICE 2541 AVE. RIZAL EXTENTION Agents FOR NASH '~I SEE THE 1946 NASH CARS NOW ON THE ROAD SPARE PARTS FOR 1942 MODELS NOW IN STOCK t=~~~~~~~~~~~ I-~~~~~~~~~~~~ -- The American Chamber of Commerce Journal April, 1946 25

Page  26 PLANNING TOMORROW'S CITIES On March 12, 1946, President Osmenia signed Executive Order No. 98, and thereby created a National Urban Planning Commission for the Philippines. Fundamentally, there is little difference between this executive order and a bill passed by the Philippine Congress last year. However, the unconstitutional inclusion of 2 members of Congress on the Commission led to a presidential veto of the bill. The purpose of Executive Order No. 98 is to provide for the permanent rebuilding of the destroyed cities of this country in accordance with definite and concrete plans, "to guide and accomplish a coordinated, adjusted, harmonious reconstruction... of urban areas which will.... best promote health, safety, morale, order,... general welfare,. efficiency and economy." The organization set up for this purpose is composed of four distinct entities. 1st-The Director of Planning (with rank of under-secretary) shall be the executive officer of the Commission. He shall "have full control of all technical work.... and administration." All plans are to be prepared in his office, or under his supervision. An adequate technical staff, consisting of planners, engineers, architects, etc. shall be appointed by him. 2nd-The National Urban Planning Commission is composed of 6 members appointed by the President. No salaries go with these positions, the only compensation being a per diem of P20 for each meeting. The chief functions of the Commission are to:(a) designate urban areas; (b) adopt General Plans, Zoning Regulations and Subdivision Regulations. 3rd-Zoning Administrators may be appointed for urban areas of over 100,000 population. In other urban areas, the district engineer shall be the administrator. 4th-Local Planning Commissions for provinces, chartered cities, and municipalities may be organized with the consent of the National Commission to perform such functions as may be delegated to them. The General Plans of the National Commission may be prepared as a (Continued on page 28) I A L:-. alit thle same old Location, MANILA TRADING & SUPPLY CO. PORT AREA MANILA I UNION PLUMBING COMPANY * PMUMBING CONTRACTORS 0 Installations - Repairs - Supplies OFFICE: 1883 AZCARRAGA ST. (Near Old Bilibid Gate) Our staff of Expert Plumbers are at your disposal to give you the best Plumbing Service..1 ALBERTO M. VELASQUEZ Licensed Master Plumber & Contractor GUILLERMO A. PICACHE General Manager - ---- 26 The American Chamber of Commerce Journal April, 1946

Page  27 New Philippine Directory Trade Sponsored by the Philippine Chamber of Commerce of the State of California, a comprehensive U. S.-Philippine Trade Directory is rapidly approaching final book form. The man behind the job is J. Gord'on Iarrell, formerly editor and publisher of the China Daily Herald. Mr. Harrell has already put in almost a year's hard work gathering the data for this important publication. In a recent letter he reports: "My listings of American manufacturers will total between 11,000 and 12,000, and I have very carefully revised themtoinclude only those actively interested in the Far East export market. In addition, I have ready for publication a list of about 3500 U. S. import-export brokers, which will be listed separately in the book and will be broken down by states and cities. It was my intention to also list manufacturers and import brokers throughout the Philippines." Mr. Harrell reports that he is encountering difficulty in securing listings of manufacturers and import brokers throughout the Philippines. These listings are made free of charge. By acting promptly Philippine firms may yet find a place in this directory. When published, the directory will sell for $15 (P30). Copies may be reserved by writing to the Philippine Chamber of Commerce, California, Inc., 206 South Spring St., Los Angeles 12, Calif. I Let your 00 sprout own on your lot... and if you want it grow rapidly and exhuberantly plant it on a fertile soil such as in NEW MANILA (The Aristocratic Suburb) ESPARA UNIVERSITY, CAMP MURPHY SUBDIVISIONS I i11' 20 Buy a lot or more now, pay in monthly installments. 0 / Lots from 300 to 5,000 sq.m. at I4.50 a sq.m. / 0 High landabout 200 ft. above sea level, Picturesque Avenues & W.i d e Asphalted Streets. plenty of shade-trees & Breezes... EN CHANTING PANORAMA I down the balance payable within 5 years MAGDALENA ESTATE, INC. Villonco Bldg., Life Theatre R-313 Quezon Blvd. F - - -- -We* Design * Fabricate * Erect * Construct STEEL AND REINFORCED CONCRETE STRUCTURES * Sun Life Reports... (Continued from page 24) holders arising out of war conditions, a total of only 4.5 per cent of all death claims paid over the same period. The Financial Statement presented by Mr. Wood said that, of the Company's total assets, 52.2 per cent is held in Government bonds of Canada, United States, Great Britain, and other allied nations. The remainder of the assets, with the percentage of each to total assets, consist of the following: Municipal Bonds, 3.8%; Industrial Bonds, 3.7%; Railroad Bonds, 0.4%; Public Utility Bonds, 15.2%; Preferred and Guaranteed Stocks, 1.8%; Common Stocks, 8.4%; Mortgages, 4.6%; (Continued on page 28) Our Experience is your INSURANCEI NO JOB TOO LARGE OR TOO SMALL THAT WE CAN NOT DO. ATLANTIC GULF & PACIFIC CO. OF MANILA t Office & Shops Barrio Punta, Sta. Ana Tel. 6-63-32 Sales Office 2nd Floor Regina Bldg. Escolta F~~~~~~~~~~~~~~~ --- - The American Chamber of Commerce Journal April, 1946 27

Page  28 Planning Tomorrow's... (Continued from page 26) whole or in sections and may be amended from time to time. They shall show the "Commission's recommendations for the physical development of urban areas including among other things, the general location, character, and extent of streets, parking spaces, viaducts, bridges, waterways, water fronts, boulevards, parkways, playgrounds, squares, parks, aviation fields, and other public ways, ground and open spaces; the general location and extent of areas suitable for residential development subsidized in whole or in part by public funds or assistance; the general location of public buildings and properties; the general location and extent of public utilities, terminals, and markets, whether publicly or privately owned or operated, for water supply, power, sanitation, transportation, communication, distribution and other purposes; the acceptance, widening, removal, extension, relocation, narrowing, vacating, abandonment, or change of use of any of the foregoing public ways, grounds, places, open spaces, buildings, properties, utilities, terminals, or markets." The Zoning Regulations shall govern "the use and development of public and private lands and buildings for such purposes as industry, trade, transportation, residence, public or semi-public and civic activities, parks and recreation; and for buildings including the height of, and area covered by buildings; the density of population and of occupancy; business and advertising signs, in connection with which, restrictions regarding such factors as size and projection over street lines may be adopted; proportion of the lot on which buildings may be constructed; and sizes of lots, courts, and other open spaces and the minimum distance of buildings from streets and adjoining properties." Subdivision regulations shall include provisions "for streets; for light, air, and density of population and of occupancy; for water, drainage, and sanitary facilities; for lot sizes and shapes; for obligatory reservations of a reasonable minimum area for schools, parks, and other public purposes, and for the extent and manner in which these facilities shall be installed as a condition precedent to the approval of a plat, all of which provisions shall promote a sound relationship between any such proposed development and the uses of the surrounding land." All General Plans, Zoning Regulations, and Subdivision Regulations shall have the effect of law. In the case of General Plans, the decisions of the Commission can be overruled only by a three-fourths vote of the legislative body which authorized the construction that was disapproved by the Commission. Zoning and Subdivision Regulations may be altered (against the will of the Commission) only by a three-fourths vote of the legislative body having jurisdiction over the area affected....... I X THE AMERIC^ QE f COMMERCE IS A QUALITY ADVERTISING MEDIUM Let us carry your message to a SELECT public every month. Sun Life Reports... (Continued from page 27) Real Estate, 1.4%; Policy Loans, 4.6%; Cash, 1.5 %; other assets, 2.4% o. All of the assets appear in the statement at book values, in no case exceeding cost. The market values of both bonds and stocks are substantially in excess of the book values, but no credit whatever is taken in the statement for this excess. 0 W I I I I Sole Importers FAR EAST & PACIFIC TRADING CO. A. SORIANO Y CIA. General Manager Soriano Building I | The American Chamber of Commerce Journal April, 1946 28

Page  1 JUL 4,J47 PERIODICAL ROOM GENERAL LIBRARY UNIV. OF MICH, THE AMERICA COMMERCE MANUEL A. ROXAS President of the Republic of the Philippines July, 1946 VOL. XXII, NO. 4 50 Centavos

Page  2 I.. _. __ ___.. __ _ __ . 1- __ - 1 - _ __ ~-. rru ~s- I MACHINERY * EQUIPMENT * SUPPLIES FOR PHILIPPINE INDUSTRY EXCLUSIVE DISTRIBUTORS FOR LEADING AMERICAN MANUFACTURERS OF MINING AND SUGAR MILL EQUIPMENT, ELECTRICAL APPARATUS, POWER UNITS, AIR CONDITIONING & REFRIGERATION EQUIPMENT, SAW MILL EQUIPMENT, HIGHCONSTRUCTION & REBUILDING MAINTENANCE MACHINING WORK.\ ~MACHINERY COMPLETE SHOP FACILITIES FOR DEPENDABLE, QUALITY REPAIRS, FABRICATION AND -1 PROMPT SERVICE ON INSTALLATIONS, EMERGENCY REPAIRS AND MAINTENANCE WORK, EXPERIENCED, SKILLED SUPERVISION AND COMPETENT ENGINEERING ASSURES QUALITY WORK AT MODERATE PHILIPPINE INDUSTRIAL EQUIPMENT COMPANY OFFICE & SALES: BANCO HIPOTECARIO BLDG. PLANT & BODEGA: 71, 81-84 CRISTOBAL, PACO TEL.: 2-89-36 -- - - - - - --- -- -- -

Page  3 --- M -1 THE AMERIC_^c EOF COMMERCE VOL. XXXII, No. 4 JULY 1946 Table of Contents Page The Man Who Run the Administrative Departments of the Government........................ 5 Biographical Sketches 'of President Roxas, Vicepresident Quirino, and Members of the Cabinet 6 The Rebuil'ding of Manila-by C. W. Hoskins..... 7 FLC Personalities............................. 8 Surplus Property in the Philippines............. 9 Editorials:July 4, 1946.............................. 10 Special Privilege.......................... 10 A Filipino Business Man Looks at the Rehabilitation and Trade Acts-by J. Puyat................ 11 U. S. Shipping Gets There "Fustest"-by Mario P. Chanco................................... 12 Personal News and Notes...................... 14 K Z R H Back on the Air.................... 20 The Present Critical Food Situation-by Juan 0. Sum agui................................. 21 Sears, Roebuck Looks Across the Pacific......... 23 Statistical Tables on War Damage in the Philippines 24 Brief Notes on Philippine Mining Problems...... 24 Escoda Memorial Fund........................ 28 Caterpillar Tractor Announces Expansion Program 30 B. GA BERM AN STOCK BROKER * MEMBER MANILA STOCK EXCHANGE 328 Dasmarias, Manila 328 Dasmarinas, Manila I AMON TRADING CORPORATION Successors to M. VERLINDEN MANUFACTURER'S AGENTS * IMPORTERS * EXPORTERS 305-307 Ayala Bldg., Manila Sales Dept. Tel. 2-75-33 310 Ayala Bldg. BELGIAN VITRIFIED FLOOR TILES BELGIAN GLAZED TILES "H" STAINLESS STEEL KITCHEN EQPT. STAINLESS STEEL SHEETS ASBESTOS CEMENT SHEETS ASBESTOS PIPES BUILDING MATERIALS BUILDING HARDWARE GLASS PRODUCTS (Window Glass, Plate Glass, Ribbed Wired Glass, etc.) STEEL PRODUCTS (Corrugated G. I. Sheets etc.) WIRE PRODUCTS (Nails, etc...) _HADWARE MLARBLE The American Chamber of Commerce Journal July, 1946 3

Page  4 I, -~-. IL GREETINGS and BEST WISHES to the REPUBLIC of the PHILIPPINES J ~* * STANDARD-VACUUM OIL COMPANY -- ~ ~ ~ I~ DEPENDABILITY * EFFICIENCY * COURTESY ECONOMY LU z ON BROKERAGE COMPANY (INCORPORATED 1911) A -- offers congratulations Philippine Repuhlic to the upport new and -. and pledges cooperation full Si I... - -- LICENSED CUSTOM BROKERS HEAVY TRUCKING FOREIGN FREIGHT FORWARDERS STORAGE - - - -- - ~ ~ ~ ' 4 The American Chamber of Commerce Journal July, 1946

Page  5 The Men Who Run The Administrative Departments of the Government ELPIDIO QUIRINO Vice-president of the Republic of the Philippines Secretary of Finance and Secretary of Foreign Affairs JOSE C. ZULUETA ROMAN OZAETA Secretary of the Interior Secretary of Justice MARIANO GARCHITORENA Secretary of Agriculture RICARDO NEPOMUCENO Secretary of Public Works and Communications 1...~..:,. ' MANUEL GALLEGO Secretary of Public Instruction ANTONIO VILLARAMA Secretary of Public Health and Welfare PEDRO MAGSALIN Secretary of Labor RUPERTO KANGLEON Secretary of National Defense The American Chamber of Commerce Journal JIly, 1946 5

Page  6 Biographical Sketches of President Roxas, VicePresident Quirino, and Members of the Cabinet MANUEL A. ROXAS President of the Republic of the Philippines Manuel Roxas, the first product of the modern public school system of education in the Philippines to become president of the Philippines, was born in Capiz, Capiz Province on January 1, 1892. He is the youngest son of Gerardo Roxas, who died at the hands of the Spanish Guardia Civil, ard of Rosario Acufia, who is still living. Roxas received his early education in the public school of Capiz. He was sent to Hongkong to study at St. Joseph's College for one year, after which he returned to Manila to complete his education. He attended the Manila High School, graduating in 1910. Choosing law for his career, he entered the law school opened in the city by the Y.M.C.A. but later transferred to the University of the Philippines where he completed the law course with high honors in 1913. In the same year, he passed the bar examination with the highest rating. His first positions in the government service were modest. The records show that in his student days, he acted as interpreter in the Court of First Instance in the Fifteenth."Judicial District. On taking first place in the bar examination of 1913, he attracted the attention of Chief Justice Arellano and was employed as a law clerk by that great jurist. He resigned that position in 1917 to enter politics. Roxas' first experience in public office came with his appointment to the municipal council of Capiz. His next political move was to enter the race for the governorship of his home province, which gave him his first major victory at the polls. It was as provincial governor that he first attracted national attention. At the Governor's Convention of 1920, he quickly became a dominant figure and was made the presiding officer of the convention. His achievements as governor in linking the far ends of his province by roads and in the creation of important public improvements also attracted widespread attention. From the governorship of his province Roxas entered the national political scene by winning the elective position of representative from the first district of Capiz. This started him on 11is egisltjyve career. Again his abilities attracted quick attention and he was at once elected speaker of the House of Representatives a position which he held for eleven years. In 1934, as a member of the Constitutional Convention, he became one of the outstanding leaders of that body and probably to a greater extent than any other individual member influenced the drafting of that document. The last reward for his services in the national congress was his election to the presidency of the Philippine Senate in 1945. With his ele-,,ation to the presidency of his country this year, he has achieved a unique record in Philippine elective office. Since 1923, when he went on his first mission to the United States, Roxas has been a member of most of the independence missions sent to Washington by his country. His record of service in the cause of independence is as distinguished as that of any other national leader. Jointly with Quezon he headed the Third Mission. In 1929, he was chairman of the Special Mission sent by the Eighth Philippine Legislature. Again he headed the house delegation which formed part of the Independence Mission of 1931. The year 1933 when Roxas, Osmefia, and others secured the passage of the Hare-Hawes-Cutting Law, marked the climax of the long struggle in Washington. Though Quezon had this law replaced by the Tydings-McDuffie Act, Roxas had qualified as a national leader to be reckoned with in every affair of state. During the Commonwealth era, Roxas was connected with every national planning enterprise. He was a member of the Joint Preparatory Committee on Philippine Affairs, and chairman of the following bodies: National Economic Council, Tax Commission, Rural Progress Administration, Board of Directors of the National Development Company and the Committee on Educational Policy to reorganize the University of the Philippines. He was a member of other government boards such as the National Rice and Corn Corporation, the Mindanao land Settlement project, the National Relief Board, and the Board of Regents of the University of the Philippines. In 1938, he was appointed Secretary of Finance, a position which he held until 1941 when he resigned to run for the senate. During the war Roxas achieved new heights as a soldier and patriot. In the Philippine Army he rose to the rank of brigadier-general. On the bombing of Pearl Harbor, he volunteered his services to the army and was immediately selected as an aide by General MacArthur. He saw action in Bataan on Corregidor, and in Mindanao. His record for underground work during enemy occupation has won high praise from U. S. Army authorities. President Roxas is married to Trinidad de Leon of Bulacan Province. They have two children: Ruby, who is completing her course at Vassar College, and Gerardito, who is attending the College of Law, University of the Philippines. He was inducted into office as the third and last president of the Commonwealth on May 28, 1946, and became the first president of the Republic of the Philippines on July 4, 1946. Elpidio Quirino Vice President of the Republic of the Philippines Secretary of Financ.e and Secretary of Foreign Affairs Elpidio Quirino was born on November 10, 1890 in Vigan, Ilocos Sur Province- the third of the nine children of Mariano Quirino and Gregoria Rivera. Quirino received his first formal education in the private school of Maestro Anastacio Aquino of Aringay, La Union. Later he studied at the Aringay Public School, the San Fernando Provincial School, and the Vigan High School (for one year). In 1908 he enrolled in the Manila High School, graduating in 1911. It was here that he first met Manuel Roxas, the two lads heading rival debating clubs. In 1915, he obtained his Bachelor of Laws degree from the the University of the Philippines. He passed the bar examination in the same year. He was admitted to practice in the U. S. District Court for China in 1921, and in the Federal Supreme Court in 1934. Quirino entered the political arena in 1919, when he was elected representative from the first District of Ilocos Sur. In 1925, he was elected senator from the first Senatorial district, and was re-elected in 1931. In 1934, Governor-General (Continued on page 16) 6 The American Chamber of Commerce Journal July, 1946

Page  7 The Rebuilding of Manila By: C. M. Hoskins, Realtor Member, Manila Realty Board The reconstruction of Manila on a permanent basis cannot proceed until two bottlenecks are removed, namely, incomplete city planning and shortage of building materials. City Planning Shortly after liberation President Osmefia established a Metropolitan Planning Office to propose a new city plan for Manila's metropolitan area. A competent staff of specialists has been continuously at work on the project for nearly a year. The public has shown impatience at the lack of progress, but definite progress has been made. The work has been necessarily delayed by the lack of personnel and supplies, the destruction of pre-war plans and land records and the need for basic research. On March 26, 1946, the President gave legal status to this Office by issuing Executive Order No. 98, creating the National Urban Planning Commission and defining its powers and duties. Already a major thoroughfare plan has been adopted which in general meets with public approval. This plan establishes a network of radial highways, intersected by a series of circumferential highways. In form it may be compared with the spiderweb pattern. The radial and circumferential roads divide the metropolis into super-blocks, bounded by these major thoroughfares. The planning officials envisage each super-block as a self-contained community, with its schools, a market, churches, theatres, parks and playgrounds, and neigborhood stores. In this way, the residents of a superblock will not have to leave their neighborhood for most of their needs, thus reducing the traffic hazards, hnd lessening the volume of traffic on the main highways. Some of the super-blocks will be zoned for industry and residential use, so that the employees will be within easy Walking distance of their jobs. It has been pointed out that the concentration of industry in the center of Manila has been the principal cause of traffic congestion and transportation tie-ups. The Metropolitan Planning Office has approached its problems realistically. It has urged the people to give their views on the projects and plans proposed. Repeatedly, planning officials said: "It is your city. We want to plan it to suit your needs and desires. You must help us to do this by proposals, suggestions and criticisms." A Metropolitan Manila Planning Association, composed of private citizens interested in Manila's orderly development, was formed last year. This association aims to represent the public's views on planning activities, and is in constant touch with the Planning Office. It has held public meetings and numerous committees have made independent surveys on industrial zoning, downtown planning, housing, and major thoroughfares. Any city resident may join the association by paying P2.00 annual dues. Building Materials In a way it is fortunate that building materials were not immediately available. It has provided the needed time for long-range planning of a destroyed city without having many desirable improvements thwarted by the premature erection of permanent structures. The time is fast approaching when permanent constructiopn will be essential to community well-being. The large amount of temporary construction, with the use of iron sheets salvaged from firegutted building, sawale, packing cases, and all kinds of scraps, has enabled Manila to survive. Much as we dislike this type of construction, it has been an inspiring sight to see a community making the best of what it could lay hands on, in order to restore even a semblance of normal life. Yet we cannot permit this type of structure to persist. These buildings are insanitary, they harbor rats, they generally lack toilets, they cannot be kept clean, and they encourage a low standard of living. Despite the urgency for permanent construction it will still be quite a while before building materials become available in quantity. Our sawmills are not yet re-established. Our existing cement factories will probably have to give priority to government needs. Imported building materials are hard to come by, because the demand in the United States is so great, that exports will be limited for a long time to come. The Philippines will have to produce many of its building materials locally, if reconstruction is to proceed. Even if an dwhen building materials become abundant, we can expect higher building costs. Price indexes in the United States on construction materials indicate a permanently higher level. Local wages will be permanently higher, both in the manufacture of local materials and in the construction field. Finance The money with which to rebuild Manila does not seem to offer any problem. Investment capital is abundant. Added to this is the money expected from Congress to compensate property owners for part of their war losses. With a monetary circulation of close to a billion pesos, which is four times the pre-war figure, due to U. S. expenditures here, insurance companies and mortgage and savings banks should have ample funds to aid in reconstruction. Housing The destruction of residential areas has created a housing shortage of dangerous proportions. Thousands of families are sheltered under conditions worse than those found in any pre-war slum area. Tuberculosis has increased alarmingly. Community morale, shattered by the Manila massacre and the preceding three years of enemy occupation, has little chance to recover under existing conditions. This does not apply to the "poor" people alone. People of all classes are living under abnormal housing conditions which slow up psychological rehabilitation. Late in 1945 President Osmefia appointed the Governing Council of the National Housing Commission, created by Commonwealth Act No. 648, in 1941. While the principal functions of National Housing Commission are slum clearance and longrange housing for the underprivileged, the President directed National Housing Commission that its first task was to provide emergency housing for those who had no decent place to live. An appropriation of P5,000,000.00 was made for the use of National Housing Commission, but only in February was any of this amount made available, and then only P500,000.00 which will not permit much progress in emergency housing. The Governing Council of National Housing Commission had hoped to aid private initiative by procuring and selling building materials at reasonable prices, in addition to constructing temporary housing groups within the limits of its funds. The im (Continued on page 17) The American Chamber of Commerce Journal July, 1946 7

Page  8 FLC Personalities William E. Vogelback Central Field Commissioner for the Pacific and China At the head of the American government's vast three billion dollar seling enterprise in the Pacific and China is William E. Vogelback, consulting engineer and industrialist of Chicago. Mr. Vogelback's war-time experience has included service as a Dollar-a-Year man on the War Production Board at Washington, where he served as consulting engineer on aircraft and was in charge of the "glider" program. His interest in aviation stems from World War I when he was air officer-pilot and in concurrent command of several squadrons engaged in the reconditioning of damaged planes. More recently he has served as director of the World-wide Army-Navy Aircraft Liquidation, OFLC, State Department. A native of New York City, Mr. Vogelback received his engineering education at Columbia University and other schools. He has received honorary degrees as well as the earned degrees of B.S., A.B., and Ll.B. His engineering career began in 1914 with Sanderson & Porter. While with that firm, he rose successively through the positions of junior engineer, field engineer, staff engineer, and assistant Chicago manager to become the Pittsburgh manager. In 1924, he opened offices as a consulting engineer in Chicago and Grand Rapids. Mr. Vogelback became financially interested in electric, gas, water and telephone properties in 1926, and in the following year formed the American Engineering & Management Co. to supervise controlled companies. While continuing his professional practice, he has been president or chairman of numerous corporations, utility and industrial. Among these he has been president of the Indianapolis Broadcasting Co. and chairman of H. E. Poque Distillery Co. and is now the president of the Union Chemical Co. He is also on leave as president of the Union Gas & Electric Co. of Chicago. Mr. Vogelbeck has designed and published a Military Panorama of the Western Theater of War (1939) and a series of'pictorial maps of various countries. He has travelled extensively in Europe, the Caribean and the Far East (China, Manchuria, Japan and the Philippines just prior to the Sino-Japanese conflict in 1937). He was editor-in-chief of the "Library of Science." He is a member of the American Institute of Electric Engineers, Illinois Society of Professional Engineers, and many other professional and technical organizations. Mrs. Vogelback is the former Miss Parthenia Carmichael and a wellknown concert-pianist of Chicago. She was for several years president of the Chicago Drama League, and director of the Children's Civic Theatre. Mr. and Mrs. Vogelback are now residing in San Juan Heights. oOo Rear Admiral Paul Hendren, USN Field Commissioner for the Western Pacific and the Philippines In immediate control of surplus property sales in the Philippines and nearby areas is Rear Admiral Paul Hendren, who was appointed field commissioner for this area on April 8, 1946, with headquarters in Manila. Prior to this assignment Admiral Hendren was Commander South Pacific Area, a position previously held by such men as Vice Admiral William L. Calhoun and Admiral William F. Halsey, Jr. Before joining the Pacific Fleet, Admiral Hendren saw action with an Atlantic Fleet unit operating in the Mediterranean, as commander of the cruiser, Philadelphia. His decorations won in that area of the war include the Legion of Merit with a Gold Star (in lieu of a second Legion of Merit) from the Navy and an Oak Leaf Cluster from the Army for merito rious achievement in the North Africa, Sicily, and Salerno landings. For the Sicilian operation, the B,ritish Admiralty presented him with the Distinguished Service Order. Admiral Ilendren is a native of Chadbourn, North Carolina, and at.tended the North Carolina State College. He graduated from the U. S. Naval Academy in 1913 and served in World War I as gunnery officer and later as executive officer of a destroyer on convoy duty in the Atlantic. He has two children, Paul, Jr., who is preparing to enter the U. S. Naval Academy and a daughter, Constance, now attending the University of North Carolina Brigadier General W. E. Farthing Deputy Central Field Commissioner for the Pacific and China In June, 1946, Brigadier General W. E. Farthing of Gainesville, Texas was assigned his present post, succeeding Major General F. F. Scowden, who was called to Washington. Prior to this assignment, General Farthing was ComGen Pacific Overseas Air Technical Service Command. In May, 1946, he was awarded the Legion of Merit for outstanding service in the performance of that office. A graduate of Texas A. & M., class of 1914, General Farthing was commissioned a second lieutenant in the Field Artillery, Regular Army, in October, 1917. He was on his way overseas when the armistice caught him at the port of embarkation, Mitchell Field, New York. After primary air training at Kelly Field, Texas, General Farthing received his pilot's wings at Ellington Field. He later carried out various assignments at air fields in the Unite'd States and the Canal Zone. From 1931 to 1935, he served as instructor at the Comand and General Staff School, Ft. Leavenworth, Kansas. He was later sent to the Army War College at Washington. In 1940 he was assigned to Hickam Field, Territory of Hawaii, where he was commanding officer until the outbreak of war. General Farthing has two children, William E., Jr., a West Point graduate and now a captain in the Army Ground Forces, and a daughter, Gayle, presently attending Stevens College in Maryland. William E. Vogelback The American Chamber of Commerce Journal July, 1946

Page  9 Surplus Property in the Philippines On the first day of November, 1945, the Manila Office of the Foreign Liquidation Commission was opened for business, and the biggest selling operation in the history of the Philippines got under way-an operation that in some respect and to some extent has had, or will have its influence on the life and activities of every individual in the Philippines. Foreseeing the importance of this operation, the Journal in its issue of December, 1945, gave its readers a reprint of the basic law under which it was to be conducted-the Surplus Property Act of 1944. In February, 1946, an article entitled "Uncle SamMerchandiser" gave our readers as clear a picture of the operation as available facts permitted at that time. Eight months have now passed since Mr. H. Wendel Endicott, the first Commissioner for this area, figuratively threw open the doors of Uncle Sam's bodegas to the buying public. During these eight months supplies and equipment worth millions of pesos have passed from military ownership and use to civilian ownership and use. The amounts and nature of these supplies and equipment, who the purchasers were, how the transactions were consummated, are the questions which this article proposes to answer as accurately as available data permits. The total cash value of sales made of surplus property in tlhe Philippines has amounted to P160,000,000. The largest single customers have been UNRRA and the Philippine Government. The former's purchases have amounted to P22.000,000, while the latter to date has bought approximately P30,000,000 worth. Rivalling these two customers, the U. S. Commercial Company (an agency of the U. S'. Government) has purchased P26,000,000 worth of surplus goods, most of which have been for disposition in the Philippines. Other buyers of considerable magnitude have been two neighbor governments of the Philippines. The Netherlands East Indies government has purchased some P16,000,000 worth, while French Indo-China has taken approximately P10,000,000 worth. The purchases listed above (governments and government agencies) have bought a total of P104,000,000 worth, or 65% of the total. Outside the United States itself, it is only in the Pacific area that sur plus goods have been available for Purchase by private persons and companies. In all other foreign areas, the surplus property of the American army and navy has been sold only to the governments in whose territory it was located. In the Philippines private enterprise has been quick to take advantage of its unique opportunity. So far as has been considered practicable, the local office of the Foreign Liquidation Commission, through its system of block sales, has made surplus property available to the small dealer as well as the large operator. Individual sales of not more than P100,000 each have totalled P43,000,000, mostly on the basis of competitive bids. Of this total P3,366,000 worth has gone to veterans buying on the basis of their priority under the law. Perhaps the largest private purchaser of surplus goods has been the Philippine Chamber of Commerce Syndicate which has bought a total of P5,200,000 worth. This amount is not included in the above total of P43,600,000. Summarizing briefly, of the total sales of surplus goods in the Philippines (P160,000,000) approximately 35% (P56,000,000) has gone directly to private purchasers. Since the goods purchased by the U. S. Commercial Company have in a more roundabout way reached the same market, this total should be increased to P82,000,000, or 51%o of the total. Throughout the entire PacificChina area, the Foreign Liquidation Commission has been handed the job of disposing of 3 billion pesos worth of goods which have already been declared surplus by the owning agencies. To date P730 million has been sold for a cash return of P250 million -a return of 34.4 centavos on the (Continued on page 17) ~':" ':':~:~' ~'''' ''''' T ' ~~: ~ I~~ ~~::.:~~~, ~~ ~~~~. ~::....... ~::~~ ~ t il~ii.d ''''::: ii.' i.:i:: * i.: i ~~.. ~~~:.i~~;i ~- ~~:.i......i.. ~::~~::~.:. ~. ~:j~~: ~~ 5 ~"'i' " '''' ''' ''' 'ci~:::~ /~:.....~.~. ''':i.......:...,....: ~~ :'~ ~:~''i::..:. ''': ~~:: ~~~:... ':~.. ~:~~:: ':" ~i" i:~~~~:~:ii~i:::i::~~~~ ~: ~i:i::iii::~i:~.:~ :~.~:...~. ~i.~::~:~ -~ ~~ ~ - ~~:~ ~: ~: ~~~ ~::~ ~: i....:. ~i~ i:~.~.,:~'i;\.,~I: ~ ~..~~:~~ ~i~~:~:u ~~~~.: ~~~:~. ~~~ ~~i~.:..;.~~i. ~:: ~;i. Trucks... — i- ~. : ~~~.~ i~:~.:i~:.: ~.:'':'.. '' '.'.'''.' '''':' ~':" ':': "" ":.." ~i(t'il ~i.i:::.:~: ~ ~... ~~ ~~: '' ': ~".~.I:~::~::~:~:~. ~~~~~~~:~~~~ '''~........ ~. ~;.....~...'~~~~~~~~~~~~~~~~~~~~~~~~.~: '.~~~~~~~~~~~~~ '."::.:i./:': '".......... ~ ~~~~~~~~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~...'..:....:~:... ~:..-.~i r~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~. '"'.....:':~:...... "...i'...':...".':"':'".?:'.......~~~~~~~~~~~~:.........: ".~~~~~~~~ ':'~.'..... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~:.~~~~~~~~~~~~~~~~~~~:...;; and tractors are among the many surplus items available in Guam~~~~~~~~~~~~~"""'~.~: The American Chamber of Commerce Journal July, 1946 9

Page  10 THE COMMERCE L Published Monthly. in Manila, Philippines The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor H. A. Linn, Business Manager Entered as second class matter Dec. 10, 1945 at the Post Office at Manila, P. I. Subscription rates: One year in the Philippines, P5.00; United States, $5.00 U. S. Currency. American Chamber of Commerce of the Philippines Directors Wm. H. RENNOLDS, President Samuel Garmezy AMOS G. BELLIS, Vice-President E. M. Grimm E. BYRON FORD, Treasurer J. A. Parrish A. D. Calhoun Julius S. Reese John F. Cotton July 4, 1946 "I have never been prouder to bo an American." These words were spoken by Paul A. McNutt on July 4, 1946. The occasion was the ceremony at which sovereignty over the Philippines was freely and voluntarily transferred from the United States of America to the People of the Philippines Themselves. All' Americans shared the pride expressed by Mr. McNutt on that occasion, as shown by newspaper comments throughout the length and breadth of the United States. But his words struck a peculiarly responsive chord in the hearts of those Americanis who have lived and woerked personally with the people of the Philippines during the period of American sovereignty. With all Americans they shared a feeling of profound satisfaction that our national word, given time and again, had been fulfilled. With all Americans they felt pride in the concrete illustratiion thus given to the world of our firm belief in and adherence to the great principles of self-rule and self-determination. But in addition the occasion held for them a keen significance and brought to them an added sense of pride which could not be shared by those who have not lived and worked in this land and with this people. In the 48 year drama of the achievement of unity and independence by the Filipinos they have played no small or mean part. The main actors in the drama have been their personal friends. Many of these acquired the ideals and first principles and learne2 the vocabulary of democracy in direct contact with those Americans (not a small number) who have taught in the public schools of this country. In the realms of governmental administration, industry, education, philanthropy, their influence has been extensive. In the realm of politics, they have been interested observers and commentators, without aspiring to active roles that under the circumstances would have been unseemly and presumptious. In their daily lives, in their personal attitudes and characters, they represented (whether consciously and intentionally or not) the actual character of America, the only representation that was familiar to most of the people cof this country. Finally a time of agonizing trial came-a time that would put to the strongest test the bonds that these Americans, individually and collectively, had formed with the Filipino people, the reputations that they had established among them. A test that would be tried not on the basis of national utterances and policies Lut on thee basis of individual and group relationships. A test that would expose both the false and the true, both the superficial and the profound, both the hypocritical and the genuine in unmistakable forms. A time came when they would reap a harvest whose seeds had been unconsciously and unpremeditatedly sown in the minds and hearts of the Filipino people by their manner of conducting themselves among them during the years of their relationship. In almost the twinkling of an eye, these Americans found themselves transformed from people of importance and respectability into people of insignificance. Deprived without warning of their homes, positions, and property, they were carted through the streets of Manila like low criminals and herded publicly behind the iron fences of Santo Tomas. Their captors sapred no efforts to make them objects of ridicule and opprobrium. When these efforts failed, they turned to threats and force and intensified propaganda to sever the bonds uniting Americans with their Filipino friends. All to no avail. Not a single instance could be reported of public ridicule in the days of their greatest public humiliation. For two long years, until forcibly stopped, the daily package line at the gates of Santo Tomas publicly exhibited on the other hand a loyalty and devotion on, the part of their Filipino friends that was a constant amazement to the Japanese. Throughout the period of internment, it was to these Filipino friends that Americans turned for the means to stave off disaster. And despite grave personal danger, these friends did not fail them. Out of the experiences of the occupation, there developed among Americans a new pride which was the outgrowth of a clearer view and hence a deeper understanding of the Filipino character. They watched these Filipinos in the days of adversity when dealing with an ene(Continued on page 13) SPECIAL PRIVILEGE One of the provisions of the Philippine Trade Act which has particularly aroused the ire of Filipinos, and rightfully so, is that which requires the Republic of the Philippines to allow Americans equal' rights with Filipinos in the acquisition and development of natural resources. The question is not whether such a provision is wise or not. The question is simply one of justice as between nations. The United States has granted independence to the Republic of the Philippines and has no right to impose a provision of this nature. To Americans in the Philippines the provision is a source of considerable elmbarassment. Then High Commissioner McNutt made clear on one public occasion that the provision did not originate with Americans in the Philippines, and was never asked for by them as a group,or individually. In the interests of preserving the respect and friendship of the Filipinos, the fullest possible publicity should be given to this fact. In the interests of honesty and fair-dealing, the government of the United States should voluntarily abrogate the invidious provision at the earliest possible moment. 10 The American Chamber of Commerce Journal July, 1946

Page  11 A Filipino Looks at the Rehabilitation and Trade Acts By J. PUYAT, President Chamber of Commerce of the Philippines In discussing the Philippine Rehabilitation Act (Tydings Bill) and the Philippine Trade Act of 1946 (Bell Bill), it would simplify the issues involved if the following procedure were followed: 1. Adopt the general assumption that these acts are far from perfect both from the Filipino and the American standpoints. 2. Analyze the defects of these two acts through a system of weighing the good points against the bad points. 3. Consider the possibilities of obtaining better legislation under the present circumstances. 4. Lastly, consider what would be the possible effects of the acceptance or rejection of these two acts. Let us analyze first the "Phiilppine Rehabilitation Act." The most vigorous criticism of this act is that it ties up the war damage payments with the trade act. To many of us, this provision is considered to be most unfair, and causes us to view the act as an instrument whereby irrespective of the objectionable features of the Trade Act we would have to accept it because of the tieup. Personally, I wish that this provisiqn did not exist. The argument has been advanced that this provision was necessary to insure that the money received as war damages would be invested to rehabilitate the industries that have been affected by the war. There is, however, a War Damage Commission that has been set up that will determine the manner of distributing these funds, the policy that will be adopted to decide who will be entitled to collect from these funds and in general to see to it that the purposes and motives in setting up these funds will not be defeated. Whatever explanation is made, there will always be the suspicion that the tie-up provided for will force the Philippines to accept the Trade Act, no matter how onerous its provisions may be. The second objection to the Rehabilitation Act is that in the final analysis the greater bulk of the $400,0000,000 will go to foreigners, who constituted the majority of the investors here before the war. At the same time it cannot be denied that when this amount is paid to the parties affected, whether they be Filipinos or foreigners, this sum will be spent in this country, and that will mean employment to thousands and it will also mean a substantial purchase of local materials. This, undoubtedly, will improve the purchasing power of the people here which in turn will lead to improvement in the condition of our local economy. Let us now proceed to analyze the Philippine Trade Act (Bell Bill). The loudest and most persistent objection to the Bell Bill is to that portion of the bill that provides for equal rights among Filipinos and Americans. The first effect of this provision is to cause resentment among the Filipinos as there is the implication that the supreme law of the land would be altered and amended, depending on how high the stakes are. In view of the fact that Filipinos will not enjoy the same rights in the United States, there is undoubtedly, the element of one sidedness in this provision. But let us examine the possible consequences of this provision from the practical standpoint The Spaniards occupied the Philippines for over 300 years and we know the result of that occupation. The Japanese were with us for over 3 years and it almost meant the extermination of the Filipino people. For the sake of international amity, I shall refrain from speaking of the colonial records of other colonizing powers. Fortunately fore me, it has been my privilege to have a fairly wide circle of American friends, both in private and in business. I have had many dealings with Americans. Many other Filipinos will support me when I say that I know of no other people with whom we can live better in a spirit of cooperation and helpfulness than with Americans. The evidence to support this statement is so abundant that I think it is not necessary to go into detail. i I The second objection to the Bell Bill is that whlie American goods will come into the Philippines in unlimited quantities for 28 years, Philippine products will be subject to absolute quotas. Also, the President of the United States has reserved the right to determine when Philippine goods come into competition with American products in the American market and to revise quotas accordingly, after serving notice on our government. This is another provision which at first glance gives the im pression that the American Congress has reserved for the United States all of the advantages in trade arrangements with the Philippines without conceding to us equal privileges. But let us examine the facts of present world market conditions. The fear that because of this provision the Philippine market will be flooded with American goods is not warranted by actual market conditions. The situation now (and it will probably continue for at least two or three years) is that while we have been wanting to import from the United States considerable quantities of food sutffs, construction materials, clothing and medicine, we have succeeded in importing only a trickle of these products. We must understand that the whole world looks to America for its supplies. When we take this condition into consideration we have to disabuse our minds of the thought that there was selfishness in the framing of this provision. The Philippine market is indeed a very small market compared to other markets that are now open to American goods. Let us elaborate further on this point. Suppose the Trade Act is rejected. Then Philippine goods entering the United States will pay tariff and American goods entering the Philippines will also pay tariff. To some people this promises a big source of income for our government; but in the final analysis the burden of our tariff will fall on the Filipino consumer in the form of higher prices. What is the ability right now of the Filipinos to pay higher prices? The answer is obvious. On the other hand, the moment the full American tariff is colk. lected from Philippine goods entering the United States, we are automatically eliminated from that market. In spite of the free trade provided for during the first eight years of the life of the trade agreement, there is the apprehension that when we do start paying duty in accordance with the sliding scale provided for in the Act, our industries will not be able to compete with similar industries in other countries that are located nearer the American market. If we cut ourselves off from the American market now, it looks like economic suicide. Another objection is the pegging of the peso to the dollar. I think (Continued on page 23) The American Chamber of Commerce Journal July, 1946 11

Page  12 U. S. Shipping "Got Thar Fustest" by Mario P. Chanco If the first American soldier into Manila last year could return to survey the city today he should be able to note, among other things: 1. A drastic decrease in public interest in candy bars, chewing gum and other items which were once gold standard; 2. An extensive assortment of imported goods including brand new automobiles, the latest fashions in men's and ladies' wear, a dozen shades of lipstick, and colorful fabrics of all varieties; 3. More ships in Manila harbor than the port ever saw in its top prewar days. Behind this transformation in the supply picture lies a story of import coordination and organization, in which the War Shipping Administration played a major role. The story had its beginning during the early months of the second World War when Allied losses in shipping were causing grave concern among Allied naval leaders. At that time, America's shipbuilding program was only getting underway. The Maritime Commission, the only agency then existent with control over ship ping, was geared for construction rather than operation. To meet the needs of war, the War Shipping Administration was established by an executive order on February 7, 1942. Its broad function was to provide adequate shipping and men for maritime effort, "to assure the most effective utilization of United States shipping for the successful prosecution of the war." Its task was, in the words of a noted Confederate leader, to "git thar the fustest with the mostest." The unending stream of men and supplies that flowed to all battlefronts during the war is the best proof that the WSA did "git thar the fustest with the mostest". When General MacArthur invaded Leyte ships of the WSA were in the van, alongside fighting craft, carrying sinews of war. And it was standing by for the major operations projected for the Japanese homeland when the atomic bomb dropped on Hiroshima. When the war ended, the WSA began preparing to restore ocean trade lines to the Philippines. It had some 3,500 ships of all types ranging from big tankers to little tugs and barges Captain Harold P. Peterson under its control. A number of these were yanked from such immediate operations as demobilization and repatriation of war prisoners and were diverted to the Islands to carry sorely needed relief materials. Among the first to arrive were shipments scheduled in December, 1941. Food and clothing donated by relief organizations and commercial exports were other items that came with the first shipments to reach the Islands. In these operations, the WSA gave private shipping companies contracts to operate such vessels as were deemed necessary to rush relief to the Islands. The WSA operates through normal private channels where possible because one of its objectives is the restoration of the normal export and import trade. As a wartime agency, it continues to operate during the emergency period after the cessation of hostilities, but gradually its function disappears as private enterprises become ready to take over. WSA has operated in this manner: First, the WSA gave licenses or charters to private companies to operate such vessels as it deemed expedient. These were grouped into three types: Those built under the shipbuilding program of the United government; those owned by private shipping companies and requisitioned by the government to help in the war effort, and previously mortgaged vessels whose mortgages were cancelled when the government took them over. This initial step was known as "ship allocation." It permitted judicious choice in determining the type of vessel adapted to given areas. It minimized the danger of operational breakdowns, the great marine bugaboo which, in view of the nature of (Continued on page 31) '''~~ " r ~' ~:...~ ~: ~~' — I r Manila South Harbor Today 12 The American Chamber of Commerce Journal July, 1946

Page  13 Editorial (Continued from page 10) my of overwhelming strength and illimitable ferocity, and were proud cf what they saw. For every virtue of character was exhibited plentifully before their eyesintegrity, fearlessness, generosity, patience, self-sacrifice. In all humility these Americans were proud of the fact that they could, even to a small degree, identify themselves with the development of such a people, and such a nation. Without resorting to lobbies or political action, local Americans have in the past generally doubted the wisdom of political independence for the Philippines. This they have done sincerely and openly from a fear that in a world where predatory nations were still rampant, complete political independence was an ideal that could not be achieved. Furthermore they feared that the economic consequences would be more disastrous for the Philippines than Filipinos realized. But on July 4, 1946, the question was ended oncei and for all; and the Republic of the Philippines was established among the nations, free and independent. On that occasion, local Americans thrilled with the same pride in the action, of our great country as ail other Americans did. In addition, they who live here thrilled with pride in the r Filipino friends, and in the Filipino people, for they have learned the greatness of their character, and they sincerely rejoiced with them in the attainment of their goal. Through the years, in spite of discouragement, faced with the probability of serious material loss, the Filipino people have unfalteringly persisted in the pursuit of that ideals so dear to all liberty-loving people-political independence. All Americans honor and respect them for it, but it is with a fervor intensified by personal gratitude for help when help was most needed that local Americans join with Senator Tydings in crying, "Long live the Philippines!" I MENZI & CO. INC. I.Z GENERAL MERCHANTS IMPORT EXPORT I L INSURANCE 327 AYALA BLDG. (National City Bvcnk Bldg.) MANILA ILOILO CEBU Sole Importers: FAR EAST & PACIFIC TRADING CO. A. Soriano y Cia. General Managers Banco Hipotecario Bldg., Manila DAVAO I - I For FACTS and INFORMATION Read the AMERICAN CHAMBER OF COMMERCE JOURNAL By the copy, 50 centavos - By subscription, 12 copies for P5.00 in the Philippines The American Chamber of Commerce Journal July, 1946 13

Page  14 PERSONAL NEWS AND NOTES J. C. Rockwell, president of the Manila Electric Company, has recently returned to Manila from the United States. Other members of Meralco staff that are on duty in the Philippines are H. P. L. Jollye, vicepresident; R. I. Gilliland, electrical manager; J. A. Thomas, transportation manager; R. J. Baker, comptroller; L. L. Gardner, superintendent of purchasing and supplies; A. B. Tigh, advertising manager; H. T. Smith, assistant chief engineer (Blaisdell plant); G. A. Clegg, superintendent of shops, H. L. Mooney, superintendent of provincial plants; 0. I. Belayeff, electrical engineer; T. J. Collins, accountant; J. L. Morgan, assistant superintendent of purchasing and supplies; R. C. Deal, electrical superintendent; F. C. Swan, distribution department; D. R. Burn, W. L. Skidmore, and E. Jurczenia, power plant engineers; F. B. Wallace, power sales engineer; I. Fegley, transportation superintendent; A. G. Swearingen, garage superintendent, F. T. Lauriat, E. Fany, and B. Conklin, power plant engineers; W. Burges, assistant chief engineer of the Impendance; H. Neale, construction superintendent; Eric Neale, power plant engineer; A. W. Fluemer, chemist; J. G. McQuay, billing department; G. R. Jarvis, distribution department; D. Rockefeller, assistant transportation department; C. Hildebrand, construction engineer; H. B. Brown, power plant engineer; W. C. Clark, line foreman; and Mrs. A. M. Schoening, secretary. Botica Boie (Philippine-American Drug Co.) is now making regular shipments to Iloilo, Cebu, Legaspi, and Davao, according to John E. Magda, general manager. The company definitely plans to rebuild the Escolta store when building materials are available. Already operating on its old site on Escolta is the department which handles instruments and dental, hospital, and mining laboratory supplies. The shipping bottleneck is the chief problem of the company, goods in transit being double the inventory value of stock on hand. The company has 185 employees back on its pay-roll, as compared with 350 before the war. Amos G. Bellis has taken the place of the late S. F. Gaches as president of the board of directors. Henry Bellis is assistant manger and Francis Cassera, retail manager. Taking an active part in the rehabilitation of the Atlantic, Gulf and Pacific Co. of Manila are the following: - S. Garmezy, H. J. Belden, F. C. Bennett, 0. A. Boni, W. W. Donnelly, W.H. Schoening, M.R. Cort, G. H. Lovell, R. H. Russell. S. Garmezy has taken the place of R. T. Fitzsimmons, who died in Santo Tomas during 1944, as president of the company. C. L. Larsen was executed by the Japs in January, 1945. A. Black and G. A. Updyke are expected to return from the United States later this year. Manila offices are located in the Regina Bldg., Escolta. L. J. Stewart is now the general manager of Libby, McNeill & Libby (Phil.) Inc. with offices in the Filipinas Bldg. E. D. Gundelfinger, former manager and former vicepresident of the American Chamber of Commerce, retired on August 1, 1945 and is now living in St. Louis, Missouri, at 7039 Horner Ave. K. C. Fairchild is now with the exports division of the company in Chicago. Theobald Diehl, president and general manager of the Franklin Baker Co. of the Philippines, reports that his company is now building a large, modern, steel reinforced concrete factory in San Pablo, Laguna to replace the one destroyed during the K_ When you w GENERAL REPAIR PERIODIC CHECK UP OILING CLEANING GUARANTEED L SERVICE call us! -\ When the efficiency of your office force is running low the /r trouble may be lurking in the office ~\ tools it is using. It costs less than '7/ you ever imagined to put them in ship shape at all times. Call for \ our representative to arrange for A~/ a regular check-up service. -1 Every Month the JOURNAL brings you important statistics and informational articles Subscribe Now! p5.00 for 12 issues MANILA SALES COMPANY OFFICE EQUIPMENT & SUPPLIES - REPAIR DEPARTMENT547 Evangelista Corner Raon The American Chamber of Commerce JournAl July, 1946 14

Page  15 war. The factory will commence operations in March, 1947. Three million pesos worth of machinery is on order, or en route. The company is now buying the entire output of the desiccated coconut plant of the Canlubang Sugar Estate. The first export shipment was made on April 10, 1946 on the President Grant. Wyndham Stopford is vice-president of the company and plant manager. Offices are in the Regina Bldg., Escolta. Back in their pre-war quarters on the 4th floor of the Insular Life Bldg., Cal-Tex reports the re-opening of their branches in Iloilo, Cebu, and Davao. C. Roesholm is back as managing director of the company; R. J. Monical is assistant general manager; and A. F. Walker is chief accountant. J. P. Heilbron Co., one of the first local pre-war firms to re-open, now occupies offices in the Regina Bldg., Escolta, and two large bodegas on Calle Cristobal. Amos G. Bellis is president and treasurer; J. Carmichael, vice-president and secretary; and Mrs. Heilbronn (who is in America) 2nd vice-president. Sam Fraser (Columbian Rope Co.), after being on loan to the govern ment for four years, is vacationing in Maine. He expects to return to the Philippines in the near future. In the meantime, M. S. Robie is running the business in Davao, with the help of E. S. Lanphear. The Tacloban office will be opened August 1st, with Lanphear in charge. Robie reports that they are now baling 12,000 bales of hemp a month, all of which is going to the States. E. J. Mora, president of the E. J. Mora Electric Co., Inc., runs his business from 645 Galicia St. "Of course business is good," says Mr. Mora. "We are already employing 37 electricians (85 before the war) and.have under contract jobs worth almost P200,000." Among these jobs are the following:-Soriano Bldg., Ayala Bldg., Miramar Apts., Firestone Shops, United Motors, Sta. Teresa College, Mackay Radio, Kodak Philippines, and others. Two members of the staff of the Goodrich International Rubber Co. are in the Philippines at present,-L. C. Hayden (manager) and J. F. Dwyer, formerly of the Motor Service Co. R. E. Roseveare, W. J. Bunnell, and R. E. Jackson are expected back by the end of the year. Jackson has recently applied for American citizenship and is spending the required time in the States to take out his first papers. Offices of the company are located at 2740 Rizal Ave. Extension. With Donald 0. Gunn as president and general manager, Heacock & Co. is back in business on the corner of Dasmarifias and David Sts. Stocks of Philco products and other leading pre-war lines are rapidly being built up. H. E. Lane is store manager. E. G. Baumgardner is district manager of R.C.A. Communicationc, Inc., Insular Life Bldg. Other members of the staff are F. Wilhelm, C. H. Backus, J. M. Sayre, W. B. Johnston, W. K. Johnson, C. M. Holmes, F. Da Silva and H. Shaw. International General Electric Co., Inc. offices and sales rooms are located in the Myers Bldg., Port Area. F. Ale is general manager. Other members of the staff are J. H. Schlobohm, apparatus engineer; R. E. Espinosa, appliance engineer; E. L. Marsh, construction engineer; W. F. Ransom, X-ray engineer; C. Crow, electrical engineer, and C. K. Fennel, sales engineer. (Continued on page 18) I I l THE UNITED STATES LIFE INSURANCE COMPANY ORGANIZED 1850 PHILIPPINE BRANCH OFFICE Sixth Floor, Wilson Bldg., Manila Telephone 2-68-39 Earl Carroll, General Manager 0 PROVINCIAL BRANCH OFFICES Located at KOBEST COMMERCIAL CORP. WILSON BUILDING MANILA IMPORTERS & INDENTORS - American Agents: KOBEST HOSIERY CORP. 1170 BROADWAY New York City Lingayen, Pangasinan San Fernando, Pampanga Batangas, Batangas Iloilo, Iloilo Legaspi, Albay Cebu, Cebu Davao, Davao "This Company has been assigned our highest rating of A+ (Excellent) - DUNNE'S Insurance Reports" — - The American Chamber of Commerce Journal July, 1946 15

Page  16 Biographical Sketches of... (Continued from page 6) Frank Murphy selected him as secretary of finance, and in 1935 he became the first secretary of finance under the Commonwealth Government. In 1936 he was appointed secretary of the interior; and in 1941 he was elected senator-at-large. In 1945, he was elected president protempore of the senate. Before the establishment of the Commonwealth, Quirino was chairman of the Joint Legislative Committee on Taxation, the committees on rules, accounts, election and privileges, and public instruction; and was senate majority floor leader. He was a ranking member of the last independence mission which secured the passage of the Tydings-McDuffie Act in 1934; and an influential member of the Constitutional Convention. As a legislator Quirino sponsored the revision and codification of the scattered laws on elections, and of the motor vehicle laws; initiated a major revision of the laws on tariff and taxation, and the first Land Colonization Act which became the pattern for the Commonwealth Law Settlement Act; and drafted the law on national defense with the assistance of Colonels Ord and Eisenhower. While in the cabinet, Quirino was chairman of the National Information Board, the National Relief Board, the National Radio Board, the Board of Trustees of the Philippine Charity Sweepstakes and the Special Interdepartment Trade Committee. He was prominently identified with the creation of the National Economic Council and the National Loan and Investment Board. He sponsored the creation of the cities of Cebu, Iloilo, Zamboanga, Davao, and Bacolod, the or ganization of the State Police and the Office of the Commissioner for Mindanao and Sulu, which brought the government closer to the Mohammedan Filipinos. He has been vice chairman of the board of directors of the Agricultural and Industrial Bank, and a director of the National Development Company and of several of its subsidiaries. He has been president of the Philippine Economic Association since it was founded in 1934. Elpidio Quirino married Alicia Syquia on January 16, 1921, with whom he had five children. He lost his wife and three of his children in the massacre of South Manila during February, 1945. Two children, Tomas and Victoria, survive. Quirino was inducted into office as Vice-president of the Commonwealth on May 28, 1946, and was appointed secretary of finance by President Roxas on the same day. On July 4, 1946 he became Vice-President of the Republic of the Philippines, and on July 6, 1946 was appointed secretary of foreign affairs. JOSE C. ZULUETA Secretary of the Interior A native of Molo, Iloilo, Zulueta entered politics when he was elected representative in 1928. He served continuously in that capacity until 1946, having behind him an unbro ken string of re-elections on the completion of each term of service. In 1933, he was chosen floor leader, and in 1934 speaker pro-tempore. He was elected speaker in the first congress in 1941. ROMAN OZAETA Secretary of Justice Judge Ozaeta came to the Roxas cabinet from the supreme court, to which he was appointed associate justice on June 17, 1941. His legal education was secured at the University of the Philippines; and he was admitted to the bar in 1921. After 15 years of successful practice, he accepted appointment as judge of first instance of Nueva Ecija in 1936. In 1938 he was appointed solicitorgeneral from which post he entered the Supreme court. MARIANO GARCHITORENA Secretary of Agriculture Garchitorena was born on February 12, 1898 in Tigaon, Camarines Sur. He came to Manila for his education, and earned his B.A. degree at the Ateneo de Manila. A practical farmer, he has consistently taken an interest in the welfare of Philippine agriculture. After serving as a member of the Fiber Standardization Board for 3 years, in 1934 he was appointed (Continued on page 32) DEE K. CHIONG & Co. BROKERS STOCKS & BONDS - Member MANILA STOCK EXCHANGE 101-102 TRADE & COMMERCE BLDG.-123 JUAN LUNA, MANILA UNIVERSAL TRADING CO IMPORTERS - MANUFACTURERS' REPRESENTATIVES MANILA, PHILIPPINES 0 EXECUTIVE OFFICES & SHOW ROOMS 2nd Floor Uy Chaco Building Plaza Cervantes INC..11 75 MAIDEN LANE NEWYORK, N.Y. WAREHOUSE 24th AT CHICAGO AND BOSTON STREETS PORT AREA, MANILA, PHILIPPINES 1326 ESTE'S AVENUE CHICAGO, ILL. 16 The American Chamber of Commerce Journal July, 1946

Page  17 The Rebuilding of... (Continued from page 7) possibility of procuring building materials has forced the Housing Commission to confine its activities to long-range planning. Long-range housing program must perforce await more normal conditions and must be preceded by adequate social research and planning. The powers of the National Housing Commission are adequate to effect removal of the slums which have grown up since liberation. Cleaning the City The clearance of rubble is one activity that need not await the availability of building materials. The continued presence of the scars of war tends to keep people's minds on the rugged past instead of hopeful future. Persons who were in London during the blitz invariably comment on the quick removal of rubble. One day a buzz bomb would destroy an entire city block. The next day the rubble would be cleared, the ground levelled, and a wall would be erected around the vacant lot. A few weeks later a Victory garden would be growing where once a 6-story tenement stood. A similar clean-up of Manila's destroyed areas would do much to impart a sense of cheer and optimism to the comunity, would provide jobs for the needy, and would help keep the storm drains from being clogged up by debris. Surplus Property in... (Continued from page 9) peso. In the Philippines alone P540 million worth of surplus goods have been sold for a cash return of P160,000,000-a return of 29.2 centavos on the peso. The figures "P3 billion", "P730 million", and '?540 million" refer to government procurement cost's, which generally are made up of the original cost price plus 25% for transportation and other charges. In handling the disposal of the enormous quantities of surplus goods in the Pacific-China area, the Foreign Liquidation Commission has had to contend with numerous difficulties some of a physical nature and some of an economic political nature. These may be summarized as follows:Physical Difficulties 1. Vast quantities on hand because the Armed Forces accumulated immense stock piles in preparation for the invasion of Japan which victory rendered unnecessary. 2. Some of the material was of value for military or naval purposes only. 3. Much of the material was saleable only if moved nearer the market. 4. Saleable or not, much of the goods was certain to deteriorate greatly if not disposed of immediately or moved, repacked and sufficiently protected against the elements. 5. The war. left' the Pacific with shipping and air transportation insufficient to move all saleable surplus. The situation was complicated by the rapid demobilization of the Army and Navy. Economic-Political 1. Pressure for quick sale to avoid not only deterioration but anticipated entry into the market of newly manufactured goods from the United States and other countries. 2. The comparative poverty of those who could most productively use the goods, the Chinese and Philippine governments, and their conse((C^ntinued on page 27) I UNION PLUMBING COMPANY - PLUMBING CONTRACTORS Installations-Repairs-Supplies Office: 1883-B Azcarraga (Near Old Bilibid Gate) "Our staff of Experienced Plumbers are at your disposal to give you the best Plumbing Service" LL DE LA RAMA LINES LEADERS IN THE SHIPPING INDUSTRY EXPRESS CARGO -LINER SERVICES TO AND FROM THE UNITED STATES CONNECTING AT MANILA WITH OUR INTER-ISLAND VESSELS THROUGH BILLS OF LADING ISSUED TO ALL PRINCIPAL PHILIPPINE OUTPORTS THE DE LA RAMA STEAMSHIP CO., INC. CHACO BUILDING-TEL. 2-82-04.NEW YORK * SAN FRANCISCO * LOS ANGELES SHANGHAI * HONGKONG 17 Demand TRIBUNO America's outstanding VERMOUTH For Perfect Cocktails SOLE IMPORTERS: FAR EAST AND PACIFIC TRADING CO. A. SORIANO Y CIA. General Managers Banco Hipotecario Bldg., Manila I The American Chamber of Commerce Journal July, 1946

Page  18 Personal News.. (Continued from page 15) H. Graber is manager and treasurer of Inhelder, Inc., Trade & Commerce Bldg., and 0. Friessner is department manager (pharmaceuticals). H. Hausamann is vice-president. B. L. Reynoso is general manager of Emilio Reynoso & Sons, Inc., painting contractors, with offices in the Chaco Bldg. "At present," he reports, "we are painting the Manila Hotel, Far Eastern University, Regina Bldg.; offices of the Chartered Bank, Mackay Radio, American Chamber of Commerce, and the United Press, the Ideal Theatre, and others." Menzi & Co., Inc., (offices in the National City Bank Bldg., since liberation) are now operating with the following staff:-H. M. Menzi, president and general manager; J. Kaufmann, manager and secretary; P. Luthi, treasurer; C. Graemiger, E. Altwegg, Yap Tok Chi; A. L. Lat; P. Byland (Iloilo), and K. Fick (Cebu), department and branch managers. Kobest Commercial Corp. and American Sales Corp are sister companies; both under the management of Sa'id T. Deen. The Manila offices are in the Wilson Bldg. A. Reif of American Sales is in New York, and reports that he is shipping to Manila a small mill for making coconut paste out of desiccated coconuts. The Johnston Lumber Co. of Zamboanga is now operating its saw mill in Siaokon, according to Logan Johnston, and is producing around 6,000 board feet a day. Early operation of another mill on Basilan Island is planned. Picspa Corporation is a newcomer to the local scene but L. R. (Larry) Moran, president and general manager, is a veteran of Sto. Tomas and Los Bafios. The company imports industrial machinery, mechanical supplies, marine equipment, and construction materials. A modern fireprevention department works in close conjunction with fire-fighting and prevention authorities. On the staff are M. Aspelo, mechanical engineer, R. L. Franco, electrical and hardware lines, P. A. Dionisio, and C. Bantug. Offices are in the Filipinas Bldg. Yucuanseh Drug Co., Inc., 436 Dasmarifias, announces the following officers of the corporation:-Yu Khe Thai, president; Yu Chong Tek, vicenresident; Yu Siu Tek, manager; Huang Chen Jung, assistant manager; Ty Huy Guan, treasurer; and Yu Tek Choan. assistant treasurer. Harry Velasco is vice-president, and Paul Mirafloxes, general manager of the Pacific Trading Corp., Wilson Bldg., A. M. Rosado, president, is on a business trip to the United States. Union Plumbing Co., 1833-B Azcarraga, operates under the management of G. A. Picache. A. M. Velasquez is the supervising licensed naster plumber and contractor. The Philippine Net & Braid Mfg. Co., Inc. offices are located at 1236 Azcarraga. The factory is at Villa Miramor, Las Pinas, Rizal Prov. Dr. Paulino Sampedro is president and general manager. F. H. Stevens (El Hogar Bldg.,) announces the publication of Santo Tomas (S'tevens' Memoribilia), a compilation of stories and pictures of the civilian internment camps in the Philippines. A chronology, which gives all the dates, carefully checked, is included. The price is $4.25, postpaid. J. Paradise, formerly of Erlanger and Galinger is now the manager of S. M. Berger & Co., Inc., 2219 Azcarrai a. L 100,djf^ FAMOUS FOODS WHERE FOOD GROWS FINEST... THERE LIBBY PACKS THE BEST LIBBY, M!NEILL & LIBBY (PHILIPPINES) INC. 3rd FLOOR FILIPINAS BLDG. MANILA &o r C/e a 6 jA &.... U~~ P U ~! 1.1 U ~~~J.!I N I.~~ L ~ i ~~i~1 ii I~~ Ir E ~ A. SORIANO Y CIA. General Managers -Z __ 18 The American Chamber of Commerce Journal July, 1946

Page  19 World Agency Representatives, Inc., an international public relations and advertising organization with head offices at 37, Wall St. New York 5, N. Y. has established an office in Manila to serve local advertising accounts. Among the Manila clients of the agency are the international trading firm of Muller & Phipps, the Insular Life Assurance Co., Ltd., the Philippine Guaranty Co.; Inc.; and the Filipinas Compania de Seguros. The Manila offices of the advertising firm are located in the Insular Life Bldg. J. H. Marsman, president of Marsman &Company, is expected back in Manila in August, according to Benjamin S. Ohnick, vice-president of the company. Ralph Crosby, director and senior engineer, Roscoe Cannon, supervisor of the southern division, George Newman, geologist-engineer, and Alec Morris, lumber production, are already back in the Philippines. Alf Welhaven, director and senior engineer, is expected to return in August. A recent addition to the staff is N. D. Peters, who takes charge of construction and civil engineering. Marsman Trading Company offices are now in the Trade & Commerce Bldg. C. Herdman, vice-president, is still in the United States but is expected back in the near future. H. Ottiger and E. A. L. Best are handling Manila operations. The heavy duty maintenance shop with hydraulic lift is rapidly nearing completion at the Manila Trading & Supply Co. The company's warehouses Nos. 1, 2, and 4 were destroyed during the war. The company hopes to secure the release of No. 3 from the U. S. Army in the near future. The active personnel in Manila include Julius Reese, president; W. D. McDonald, vice-president; E. E. Simmons, vice-president; John M. Reese, tractor division; G. Salon, secretary; and C. X. Burgos, superintendent of plant operations. J. Manning, vice-president, is at present on leave in the United States. Norton & Harrison Company, one of the first American firms to reopen after liberation, are located at 814 Echague. The directors of the company are Chas. A. Fossum, president and treasurer; J. E. Norton, vice-president; Ai. M. Celis, secretary; T. M. Jordan; and 0. E. Guerrero. The company is dealing in lumber, paints, plumbing, roofing; hardware; glass, steel and wood sash, Douglas fir doors, vault doors, etc. Howard Hicks, formerly factory superintendent of the Franklin Baker Co. of the Philippines, is now with Peter Paul, Inc.; of the Philippines. Send News Notes and Personal Items to The EDITOR American Chamber of Commerce Journal 121 Dasmarinias Manila - --- ~~ ~~ ~~ ~~ ~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ J. P. HEILBRONN COMPANY 3rd FLOOR - REGINA BLDG. - ESCOLTA, MANILA (Established 1909) Pioneer Dealers in the Philippines in Paper and Printers' Supplies I PAPER AND PAPER PRODUCTS PRINTING MACHINERY, TYPE & SUPPLIES SURVEYING INSTRUMENTS OFFICE SUPPLIES & STATIONERY FILLING CABINETS CELLOPHANE BUILDING MATERIALS PAINTS ROOFING & FLOORING F __ The American Chamber of Commerce Journal July, 1946 19

Page  20 KZRH BACK ON THE AIR To KZRH goes the credit for being the first commercial radio station to go on the air in the Philippines after the war. A comparatively new company before the war (it entered the commercial field in 1939), KZRH rapidly won an enviable place with radio listeners and advertisers in this field. After liberation, with all equipment destroyed, the station faced dark days and difficult problems. That these problems have been solved successfully is due entirely to the initiative, energy, and confidence of one man, Bertrand H. (Bert) Silen. Within a few weeks after his repatriation from Sto. Tomas, reports of his activities began coming to the Philippines. The proof of his work was made evident to all when, at 6 A.M., July 1, 1946, KZRH, "The Voice of the Philippines," went on the air again, ending a silence of 4 and a half years. The station is owned and operated by the Manila Broadcasting Company, Inc., which has an authorized capital of P200,000. Silen is president and general manager, ard owns one-third of the stock. KZRH is an affiliated station of the National Broadcasting Company (NBC) and uses the latest RCA equipment throughout. KZRH offices and studios are located on the seventh floor of the Insular Life Building, Plaza Moraga, Manila. They occupy a floor space of 1,034 square meters. The transmitters, with an antenna on 350-foot towers, are at Manila Heights. In addition to Silen, station ma:ager, the staff is composed of Norman Reyes (formerly of the voice of Freedom on Corregidor), program director; Ramon Escudero, sales manager; Cal Parrish, "the Manila Night Hawk;" Ira Davis, former chief announcer of a pre-war station; Zacarias Nuguid, Jr., formerly expert on the Philco "Question-Air" program; and Jose B. Guevarra, chief broadcast engineer. Of the station's 40 employees, 38 are Filipinos, all experienced in radio work. KZRH is represented in the United States by the NBC Spot Sales, Radio City. IL Is Painting Your Problem? LET'S HELP YOU SOLVE THEM.... Our many years' experience, in giving builders that painting finish that adds class and distinction to numerous homes, office buildings, assures you of dependable and unsurpassed paint jobs for your present needs Consult EMILIO REYNOSO & SONS, INC. Established 1907 3rd FLOOR CHACO BUILDING - PLAZA CERVANTES Tel. 2 FINISHED JOBS oner'S \ igh Commissone Americance (Baguio) & Residenclege fpharmac Manila College Dentistry Regina Building Far Eastern ar Universit Centro ar Universit Ateneo de Manila Rainbow Theatre Iook Theatre o. Philippine Refining Co Singian Clinic Anco Dept. Store Asumption College '-80-49 JOBS IN pROGRESS Manila Hotel City Hall Brias RoxaS Bl1lg Heacock Building paterno Bluilding k d'a' All~kstraChartered Bank of Ildia - lia & China Ia Consolaciotl Collegc Ideal Theatre Society Theatre Saint Paul Institution Malate Catholic School Un'velsal Trading Co, Inc. Pres. Jose Avelino (residence Barredo Apartments Sinagoga Apartments Res. Tong Biao Offices: Co. of Atlantic Gulf & pacific Manila Co. J. P. Heilbronn Co. Mackay Radio United PChamber of Commerce American Chamber House) Angela Apts. (Pent o d., Ie Philippine Electronic In. punsalan & Yabut Herrera & Ilustre Cojuangeo EnterPri-e Mrs. Manuel Versoza Jose Cortez Moreno Residence 1 I El --- -I - 1 Join the ESCODA MEMORIAL FUND See page 28 20 The American Chamber of Commerce Journal July, 1946

Page  21 OUR CRITICAL FOOD SITUATION By JUAN 0. SUMAGUI Acting Chief, Division of Agricultural Statistics (Reprinted from The "Bulletin of Philippine Statistics," Vol. II, No. 1.) Before the outbreak of war in 1941, the Philippines was almost selfsufficient in food-stuffs. Our rice import in 1940 was only 683,240 cavanes, and in 1941 all that we needed to import was 21,590 cavanes to complete our consumption requirements. In view of the adequate supply of this staple food the ceiling price fixed by the Commonwealth government for second class macan or its equivalent in the middle of 1941 was only P6.10 per sack of 56 kilos. The government had long banned the importation of meat cattle into the Islands, as our livestock population could easily supply the meat needs of the entire country. However, owing to the danger of the Philippines and the United States being involved in a war with Japan, which would make it impossible to import foodstuffs from other countries, a state of emergency was declared and the people were urged to spare no efforts in raising more food crops. The Civilian Emergency Administration was organized, and one of its functions was to urge the people to save food and to intensify food production in order to increase the supply of essential food commodities. The different government entities responded with full-hearted cooperation. The Bureaus of Plant Industry and Animal Industry were not left alone in their drive to raise more food crops, poultry, hogs, and livestock. The Bureau of Education through its teachers and pupils not only in rural district but also in urban areas, launched a special food production campaign to increase the areas of home gardens. The Philippine Army cadres also planted vegetables and raised fruits, chickens, and hogs for the army personnel and taught the trainees how to grow crops and raise animals. Even the members of the National Federation of Women's Clubs of the Philippines helped the campaign by conducting food-preservation demonstrations in different localities. All these activities were being undertaken when we were producing and had on hand a sufficient supply of rice, corn, and meat as well as supplementary food products like camote, gabi, ubi, cassava, etc. in view of the impending war which might cause a serious food shortage in the Philippines. The war came before we were fully prepared for it. We were invaded and as a result thousands of Filipinos were killed, millions of pesos' worth of buildings were destroyed. Furthermore, from the time the Japanese attacked the Philippines on December 8, 1941 to the day of our complete liberation about the middle part of 1945, our crops and livestock suffered tremendous losses, and many people who were not prepared for the emergency, especially those living in cities, died from hunger and starvation. Destruction of Crops and Livestock Different surveys have been conducted to determine the losses sustained by crops and livestock as a result of war operations in the Philippines. The estimates made by the (Continued on page 25) B. F. Goodrich TIRES AND TUBES INDUSTRIAL RUBBER PRODUCTS: TRANSMISSION BELTING AIR and WATER HOSE RUBBER and ASBESTOS SHEET PACKING AUTOMOTIVE ACCESSORIES AUTOMOBILE AIND TRUCK BATTERIES CANVAS FOOTWEAR RUBBER HEELS KOROSEAL & COMPOSITION SOLING GOODRICH INTERNATIONAL RUBBER CO. 2738 RIZAL AVE. EXT.-MANILA, P. I. The American Chamber of Commerce Journal July, 1946 21

Page  22 ^ wcati~ e P tif.. I Since 1887 our advantages of superior workmanship, facilities and experience are evident in the numerous printing jobs we have done for business leaders. ARMmELO E AUtRMANN INC. OFFSET LITHOGRAPHERS - PRINTERS 2057 AZCARRAG: * MRNILA, PHILIPPINES i It's Manila's I favorite... INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA INTERNATIONAL MOTOR TRUCKS McCORMICK-DEERING FARM MACHINERY AND EQUIPMENT * TRACTORS, Wheel & Crowler Types * ENGINES, Full Diesel & Kerosene. * RICE MILLS, "KisKis" & Com'cl. Types. CORN MILLS, CANE MILLS, PLOWS, HARROWS, MOWERS, RICE THRESHERS, ETC. Agents for: THE ISTHMIAN STEAMSHIP CO. Swedish East Asiatic Co. Glen Line Ltd. II I FAR EAST AND PACIFIC TRADINP CO, A. SORIANO Y CIA. General Managers Banco Hipotecario Building, Manila -1 I I 22 The American Chamber of Commerce Journal July, 1946

Page  23 Sears, Roebuck Looks Across the Pacific One of Manila's distinguished but almost unheralded visitors during June was A. S. Barrows, President of Sears, Roebuck and Co., and Vicechairman of the board of directors. When interviewed on the day before his departure, Mr. Barrows said that his company is definitely interested in the Orient, and especially so in the Philippines. But it has not yet. decided to give practical expression to that interest. Sears, Roebuck and Co. has become America's miracle merchandising concern. With 12 branches in the United States and Canada, one in Brazil, one in Cuba, and one in Mexico, its volume of business has grown to $1.5 billion per year. "We are not interested in agencies," Mr. Barrows explained. "If we decide to extend our activities into a market, we do it in our own way by establishing a branch. We definitely do not intend to appoint an agent in the Philippines, but we may open a branch. That will be decided when I get home." Mr. Barrows has been president of the company for four years, and it is during that period that the international activities of Sears, Roebuck have developed, with the opening of branches in Rio de Janeiro, Havana, and Mexico City. "Wherever we establish a branch," Mr. Barrows continued, "we usually find that it also pays for us to develop the manufacturing potentialities of the section. Several of our biggest selling items in Brazil, Cuba, and Mexico are now manufactured in those countries. If we come to Manila, you can anticipate the same result here." Mr. Barrows' view of the Philippines was not confined to Manila. During his stay in this country, he visited Baguio, Iloilo, Cebu, and Davao. Looking behind the surface of war-wrecked buildings and industries, he found in the spirit of the people a definite promise of a bright, progressive future. --— oOo A Filipino Looks... (Continued from page 1,1) that this provision should have been eliminated as unnecessary. The Philippines is a signatory of the BrettonWoods Agreement. The Bretton Woods Agreement provides for the stabilization of the currencies of the countries signatory to it. One of its most important objectices is the prevention of currency juggling by countries in attempting to improve their position i nforeign trade. In view of the fact that we have joined the Bretton-Woods Agreement, the provision of the Trade Act which pegs the peso to the dollar could have been eliminated. The above discussion presents the sum total of the objections to these two bills. I have mentioned the objections and the reasons that gave rise to them. I have also tried to show why to me, at least, these objections do not carry enough weight to cause the rejection of these two acts. When the objectionable provisions were first discussed in Congress, the Chamber of Commerce of the Philippines was among the first organizations here that opposed them. We made our stand known to the admi nistration at that time. We communicated our views to our resident commissioner and we also wired some infuential Americans who we thought were real and loyal friends of the Filipino people. However, in spite of our opposition, the provisions were retained in the laws which were finally enacted. Part of the local press has recently charged that the Chamber of Commerce has reversed its stand. There has been no such change. At the time that we expressed our objections, we were discussing the provisions by themselves. they are actual parts of the two laws, which as I have stated in the beginning have their good and their bad (Continued on page 20) I The Reaso it Whoy "The story of advertising is the story of human progress." The entire world recognizes that advertising has made possible the modern practices of industrial research, mass production, and volume sales. These in turn have raised the standard of living of the earth's human population. The newspapers, magazines, and radio are among today's leading sources of literary and musical enjoyment, besides being potent instruments of education. Their growth represents another enduring contribution of advertising to civilization. The man of vision, creative talent, and untiring energy who undertook to specialize in informing the greatest number of consumers the latest achievements in industry founded a new profession, developed the arts, earned enormous wealth for the advertisers, and at the same time performed a distinguished lasting service to mankind. In the story of human progress lies the reason why better managed business and industrial firms entrust the creation and preparation of their advertisements to organizations specializing in this particular field of human endeavor. WORLD AGENCY REPRESENTATIVES, Inc., an international public relations and advertising organization with head offices in New York, has opened an advertising agency in this city. We will appreciate the opportunity of discussing with you the facilities and services our agency offers its clients in relation to their business. If you will indicate your interest by writing us a letter, a member of our firm will be pleased to call on you immediately. WORLD AGENCY REPRESENTATIVES, Inc. Manila Offices: The Insular Life Building, Plaza Cervantes Head Offices: 37 Wall Street, New York City I m I - Iq The American Chamber of Commerce Journal July, 1946 23

Page  24 TABLE I-ESTIMATED PHILIPPINE WAR DAMAGES (PARTIAL) STATISTICAL DATA ON WAR DAMAGE IN THE PHILIPPINES DECEMBER 8, 1941 to JULY 4, 1945 (Reprinted from the "Bulletin of Philippine Statistics"-Vol. II, No. 1) I t e m 1941 Value % of distribution T A L.............. P2,589,580,005 100.0 Real Estate Improvements........ 539,374,3201 20.8 Government Corporations......... 81,756,2322 3.2 Industrial and Commercial Properties 512,950,454 19.8 Public Works Improvements....... 244,988,0813 9.5 Government Offices.............. 125,663,477.4.8 Agriculture...................... 281,170,7905 10.9 Value of Japanese Military Notes issued...............535,220,0006 20.7 Personal Effects.................. 262,831,683 10.1 Libraries....................... 5,624,9687 0.2 'As reported by 831 municipalities and cities, out of a total of 1,185. Includes buildings. government 2Does not include buildings. SExcluding damages to provinces of Agusan, Batanes. Bukidnon. Catanduanes, Cotobato, Palawan, and Zamboanga. 4As reported by 15 provincial, 5 city, and 386 municipal governments and 46 bureaus and offices. Does not include buildings. "Includes crops, livestock, and farm implements only. "Estimated pre-war value of goods and services taken in exchange for worthless Japanese notes. 'As reported by 2 public libraries and 4 private university and college. libraries in Manila. TABLE II-WAR DAMAGES TO REAL ESTATE IMPROVEMENTS IN THE PHILIPPINES T T A L.................................. P539,375,320' Private Structures, residential & commercial............ 336,231,311 Government Structures............................ 159,292,380 Churches; Convents; Religious Schools; etc............. 43,851,629 'As reported by 831 municipalities and cities, out of a total of 1,185. TABLE III-ESTIMATED VALUE OF WAR DAMAGES TO GOVERNMENT CORPORATIONS ' I T E M 1941 Value % of distribution TOTAL.................. P81,756,232 100.0 Manila Railroad Co. & its subsidiaries 44,450,0002 54.4 Philippine National Bank & its subsidiaries........................ 18,833,2223 23.0 Notes on Philippine Mining Problems According to C. A. Mitke, chairman of the American Chamber Commerce committee on mines, the concession made by the War Shipping Administration on freight rates for base metals extends only to September 1, 1946. Beginning March 1 of this year, the WSA agreed to lower rates on chrome, manganese, copper; and iron as follows: From $18.90 to $11.00 per ton to the Atlantic coast. From $16.40 to $9.00 per ton to the Pacific coast. The purpose of this concession was to encourage, or rather enable, base metal mining companies to get back into production. However Consolidated Mines has so far been the only shipper having shipped 5,000 tons of refractory chrome from Masinloc, Zambales to the Atlantic coast. After the second shipment, operations were stopped by wage demands which the company was unable to meet. The need for refinancing is urgent on the part of all producing companies, says Mr. Mitke, because of the extensive destruction of mining properties. The prompt payment of war damage indemnities will help greatly to solve this problem. Benjamin S. Ohnick, vice-president of Marsman & Co., believes that the Rehabilitation Act is not sufficiently liberal to meet the needs of the mining industry. He points out that the act provides for the payment of only 75% 'olf the amount of an approved claim, over $500. In most cases, the 5% which the act permits to be spent for legal and auditing assistance will be so spent, which leaves the company 70%. Of this amount, reasonably prompt payment of not more than 80% can be expected, according to the terms,of the act. In brief, the mining company can count no not more than 56% of its approved claim for help in rehabilitation. The importance to Philippine economy of the early rehabilitation of the mining industry cannot be overemphasized, states Paul Meyer, treasurer of the Chamber of Mines. It is true, according to Mr. Meyer, that other industries are larger employers of labor. But before the war the mining industry had won a place among Philippine exports second in value only to the sugar industry. The Philippines needs foreign trade, and in the foreign trade of the Philippines the mining industry plays a vital role. National Development Co. & its subsidiaries......... National Development Company Textile M ills.................... Sabani Estate Cebu Portland Cement Company National Rice and Corn Corporation National Food Products Corporation National Warehousing Corporation Insular Sugar Refining Corporation People's Homesite Corporation.... National Footwear Corporation... National Power Corporation.......... Agricultural-Industrial Bank........ National Coconut Corporation........ Metropolitan Water District.......... National Tobacco Corporation........ SIncludes Binalbagan Estate. 2Includps Manila Hotel. 1Excluding value of damaged buildings. 1,027,653 829,468 17,335 2,743,719 1,994,720 1,542,481 7,767 1,899,624 108,413 242,965 1,719,034,79,000 1,659,621 4,213,358 387,852 1.3 1.0 3.4 2.4 1.9 2.3 0.1 0.3 2.1 0.1 2.0 5.2 0.5 TABLE IV-ESTIMATED VALUE OF WAR DAMAGES TO INDUSTRIAL AND COMMERCIAL PROPERTIES' Establishment TOTAL............... Manufactures...................... Trade............................. Transportation ard communication... Mines and quarries................. Service firms...................... Lumber and sawmills............... Finance, banking, and insurance..... Professional.................. Fishing industries.................. All others......................... 'Exclusive of value of buildings. 1941 Value % of distribution P512,950,454 100.0 135,267,434 26.4 115,304,145 22.5 94,064.082 18.3 83,662,805 16.3 51,158,773 10.0 11,628,535 2.3 7,211,596 1.4 3,850,320 0.8 1,097,243 0.2 9,705;521 1.8 (Continued on page 26) 24 The American Chamber of Commerce Journal July, 1946

Page  25 Our Critical Food... (Continued from page 21) Department of Agriculture and Cominerce of actual war losses and damage in tangible assets to agricultural industry, including livestock, amount to more than P420,000,000. Conservative estimates show that the livestock industry alone suffered a loss of more than 1,300,000 carabaos, about 3,000,000 hogs, 960,000 cattle, 15,800,000 chickens, 208,000 horses, 300,000 goats, and 522,000 ducks-all worth more than P78,000,000. The and Statistics shows that the total survey of the Bureau of the Census value of war damages to agricultural crops, livestock, poultry, and farm implements as a result of looting, requisition, fire, confiscation, and other war causes from December 8, 1941 to July 4, 1945 (exclusive of the value of warehouses, sugar centrals, desiccated coconut factories, oil mills, farm improvements, and standing crops of coconut, abaca, and other crops destroyed) was P281,170,790. In a separate study of agricultural conditions and food prospects of the Philippines conducted during the last quarter of 1945 by the Philippine: Mission of the United Nations Relief and Rehabilitation Administration in cooperation with the Department of Agriculture and Commerce, it was found that the post-war animal population of the Philippines is very much smaller than the pre-war population, to wit: carabaos, 1,245,500 head as against 2,207,000 before the war, or a decrease of 44%, horses, 96,000 as against 211,000 before the war, or a decrease of 54.5%7; cattle, 280,000 as against 857,000 before the war, or a decrease of 67 %, hogs, 1,040,000 as against 2,686,000 before the war, or a decrease of 61 %; and chickens, 4,394,000 as against 15,750,000 before the war, or a decrease of 69%. These surveys point to one conclusion: that our agricultural industry sustained tremendous losses during the Japanese occupation. These losses have an adverse effect on the present production of our food crops and livestock. Estimates of Food Requirements and Deficiency Various investigations have been made of the per capita consumption of rice in the Philippines. A study conducted by the College of Agriculture, University of the Philippines, involving 2,488 persons of all ages in 6 provinces (including Manila) revealed an average per capita consumption of 2.58 cavanes of rice a year, or 5.16 cavanes of palay, based on 3 meals a day. In Manila where the 824 persons included in the study were eating bread in the morning, the average per capita consumption was 1.51 cavanes, or 3.02 cavanes of palay a year. The Bureau of Plant Industry's "Bulletin on the Rice Industry in the Philippines," gave 2.35 cavanes of rice or 4.70 cavanes of palay as the per capita consumption per year. The National Rice and Corn Corporation recommended an emergency ration of 400 grams of rice per day for an adult Filipino, which is equivalent to 2.6 cavanes of rice or 5.2 cavanes of palay per year. Considering the total population of the Philippines and our total yearly production and importation of rice, Hugo H. Miller, in his book Economic Con ditions in the Philippines estimated that our average per capita consumption of rice per year, from 1910 to 1918, was 85 kilos (56 kilos is equivalent to 1 cavan). Mr. W. H. Pauley, agricultural economist of the UNRRA, Southwest Pacific Area, after discussing the matter with Filipino authorities, estimated the per capita consumption of rice for adults at 2.6 cavanes a year, and for children below 10 years of age at 1.4 cavanes a year. The percentage of rice-eating people in the Philippines according to census data is 69.5; of corn-eating people, 20.0; and the rest are dependent on bread, tubers, and (Continued on page 29) 14 eY —. -L -II IL NORTON & HARRISON COMPANY DEALERS IN LUMBER - PAINTS - PLUMBING - HARDWARE ROOFING - GLASS - STEEL SASH.VAULT DOORS-ETC. Distributors for. The CELOTEX Corporation, Chicago CRANES Company, San Francisco DAMPNEY Company of America, Boston ROBERT DOLLAR Company, Seattle & San Francisco (Lumber) ELGIN Stove & Oven Company, Elgin GLADDING-McBEAN & Company, Los Angeles HAWS Drinking Faucet Company, Berkeley JOHNS-MANVILLE International Corporation, New York KAWNEER Company of California, Berkeley I. F. LAUKS, Inc., Seattle John E. LINGO & Son, Camden Wm. McDonagh & Sons, New York Michigan Engine Valve Company, Detroit MONSANTO Chemical Company, St. Louis, (Wood Preservatives) S. H. POMEROY Company, New York Puget Supply Company, Seattle RICHARDS-WILCOX Manufacturing Co., Aurora SARGENT & Company, New York SCHLAGE Lock Company, San Francisco SIGNODE Steel Strapping Company, Chicago SISALKRAFT Company, Chicago S'OULE Steel Company, San Francisco Southwestern Sheet GLASS Company, Okmulgee, Oklahoma STANDARD VARNISH WORKS, New York Timber Elngineer Company of California, San Francisco TOCH Brothers, Inc., New York WEBB Products Company, San Bernardino, Calif. Henry WEIS Manufacturing Company, San Francisco Vincent WHITNEY Company, San Francisco YORK Safe & Lock Company, New York I 814 ECHAGUE MANILA TEL. 8-62-13 I1 i I ' The American Chamber of Commerce Journal July, 1946 25

Page  26 (Continued from page 24) TABLE V-ESTIMATED VALUE OF WAR DAMAGES TO PUBLIC WORKS IMPROVEMENTS' I t e m 1941 Value % of distribution T T A L................ P244,988,081 100.0 Roads............................ 79,538,489 32.5 Bridges and culverts................ 57,929,727 23.7 Waterworks, sewerage, irrigation systems and electric plants........ 8,608,607 3.5 Port works lights houses, airports, telegraph and telephone systems and radio stations............ 30,761,345 12.6 River control and sea protection works 7,211,501 2.9 Parks, monuments, playgrounds etc... 7,430,095 3.0 Machinery and equipment; Road rollers, graders; etc.................. 53,508,317 21.8 1As reported by the Bureau of Public Works. A Filipino looks.. (Continued from page 23) points. We must now view the acts in their entirety, and weigh their advantages against their disadvantages. The Chamber of Commerce of the Philippines finally resolved to support the administration in the conviction that the advantages outweigh the disadvantages and that it will prove possible to secure revisions to the laws which will make them more favorable to us. This the Chamber has done as a matter of economic expediency. Now we can work for the improvement of the acts and the elimination of the objectionable provisions. If we fail, we must not forget that provision which enables either government to cancel the agreement (by serving notice on the other within a stipulated period) in case it finds that the arrangements entered into are not satisfactory. TABLE VI -TOTAL VALUE OF WAR DAMAGE TO AGRICULTURAL CROPS, LIVESTOCK, POULTRY, AND FARM IMPLEMENTS IN THE PHILIPPINES DUE TO ALL CAUSES PHILIPPINES LUZON VISAYAS MINDANAO ITEM Pesos C% os % P s % Pesos% Pesos TOTAL 2 281,170,790 100.00 131,300,220 100.00 86,040,230 100.00 63,830,340 100.00 Agricultural crops...... 183,787,240 65.37 85,068,030 64.79 58,577,600 68.08 40,141,610 62.89 Livestock and Poultry... 68,137,520 24.23 28,333,550 21.58 21,204,280 24.68 18,599,690 29.14 Farm Implements...... 7,599,140 2.70 4,586,730 3.49 2,316,910 2.69 695,500 1.09 Miscellaneous 3........ 21,646,890 7.70 13,311,910 10.14 3,941,440 4.58 4,393,540 6.88 'Based on reports of provincial supervisors of the Bureau of Plant Industry. All values are based on 1941 prices. 2Excluded from this total are damages to Sugar centrals, warehouses, rice mills, desiccated coconut factories, coconut oil mills, copra driers, abaca strip)ing sheds, hemp baling presses, tobacco curing barns, irrigation systems, and other farms improvements, and losses representing unrealized net income from rice lands that remained idle, which damages have been estimated at P268,438,800 by the Department of Agriculture and Commerce. Adding this figure to the total given above, the total of the estimated damage to our agricultural industry amounts to P549,609,590. sMiscellaneous refers to crops abandoned and trees cut down or destroyed as a result of war operations. I.- - KOPPEL (PHIL.) INC. MACHINERY & SUPPLIES R A I L W AY EQUIPMENT Exclusive Dealers of: PRESSED STEEL CAR CO., INC. CATERPILLAR TRACTOR CO. JOHN DEERE PLOW CO. R. G. LeTOURNEAU, INC. FRICK COMPANY JOHN A. ROEBLING'S SONS CO. ETC., ETC. TRACTORS PLOWS CULTIVATORS POWER UNITS ELECTRIC PLANTS ICE PLANTS ARC WELDERS WIRE ROPE LOGGING EQUIPMENT ETC., ETC. OFFICES AT: BOSTON & 23rd STREETS, PORT AREA, MANILA Branches: ILOILO, CEBU, BACOLOD Agents: DAVAO, COTABATO, ZAMBOANGA ji.. 26 The American Chamber of Commerce Journal July, 1946

Page  27 Surplus Property... (Continued from page 17) quent dependence upon American credit. 3. The physical impossibility of undertaking retail sales. 4. The risky implications of wholesale merchandising; some customers with the necessary capital being engaged not only in legitimate business rivalry, but in black-market profiteering and political conflict as well. Sales of surplus goods is accomplished by various means. The discretionary powers of the Commission as regards both method of sale and price are limited only by the law, which gives first priority to United States government agencies. At the discretion of the Commissioner second priority is accorded to qualified veterans. Next on the priority scale come charitable organizations and the Philippine government and its agencies. Foreign governments, individuals, and syndicates follow. When the Foreign Liquidation Commission announces, as it did on April 29, that there are approximately 3,000 jeeps on order by priority purchasers, this means that the next 3,000 jeeps declared surplus will be used to fill these orders, and jeeps will become available, for individual or block purchase only after that is done. Each month the Foreign Liquidation Commission publishes catalogues listing available surplus property by blocks (for convenient purchase). These blocks are open to public bid and go to the highest bidder. Negotiated sales are often the means of disposing of large quantities as one unit. Government agencies and large buyers often give advance notice in the form of "want lists," indicating the type of equipment they require. This practice facilitates prompt sales in large quantities, which is highly desirable from the point of view of the disposing agency. As noted above, during the first seven months of its operation, the Foreign Liquidation Commission has made sales in the Philippines with a total cash value of P160,000,000. What of the future? There still remains in the Philippines more than P1,300,000,000 worth (government procurement value) of goods that have been declared surplus but that have not yet been sold. No doubt a large share of these surplus goods are not adapted to civilian use. Neither can there be any doubt but that Uncle Sam will continue for some time to come as the largest merchandiser in the Philippines. It will pay the merchant, the factory owner, the farmer to keep closely in touch with his operation. And the same advice holds true for the importer. 11 JOIN the ESCODA MEMORIAL FUND (See page 28) L -- ---- FOR ( MILDNESS AND / FULL FLAVOR CAMELS SUIT ME no~_ TO A'T' rF. I I - READ the JOURNAL every month for facts and information Sole Distributors MULLER & PHIPPS (Manila) LTD. 1104 Castillejos, Quiapo, Manila The American Chamber of Commerce Journal July, 1946 27

Page  28 ESCODA MEMORIAL FUND A lasting tribute to Antonio and Josefa Escoda who gave their lives heroically for American and Allied prisoners of war and internees. List of Members as of June 30, 1946 Abundo, Enilio Ambrosio, Mr. & Mrs. D. B. Ames, A. P. Bautista, Jose P. Berger, S. M. & Co. Blouse, Max Bosshard, Carl Bromfield, James Larden Buencamino, Dr. Victor Campbell, Dr. George W. Cmeyla, Dr. Pat M. Concepcion, Mrs. Elizabeth Corp, H. W. Cottrell, Mrs. Nadia Cronin, Mr. & Mrs. Ray DeWitt, C. A. Dick, R. M. Ely, R. R. Ford, E. B. Gaston, Benjamin C. (representing Ex-prisoners of war, 71st & 72nd Div, P. A.) Griffith, C. E. Grimm, Mr. & Mrs. W. H. Hauser, Miss Kaethe Hausman, L. M. Hayden, L. C. Hendry, R. S. Hoskins, C. M. Ipekdjian Bros. Ltd. Johns, Malcolmn R. Lane, Helen A. Linn, H. A. Macondray & Co. Manila Electric Co. Empl?yees Manning, J. L. McMicking, Mrs. Mercedes Meyer, Paul A. Moran, L. R. Morgan, James Muench, Mrs. Priscilla Myers, F. H. Neale, Mrs. Howard Nivera, Carlos F. Noriega Natividad Ohnick, Benj S. Perkins, E. A. Pritchard, Thomas Roces, Ramon, Inc. Rogge, Albert Ross, E. C. Russell, Earl E. Santamaria, E. Shaouy, Philip Shurdut Mill Supply Smith, Whitey Steintorf, Paul P. Steward, A. D. Sweeney, Nora Thomas, Dave Valdez, Emilio Vickers, Daisy U. Werner, A. A. Westley, E. T. Whitney, Frances Wilkins, Ford Wolff, T. J. Wright, James A. Wythe, D. H. Ye Old Mansion Receipts as of June 30, 1946...P8,223.18 You may share in this expression of gratitude for help when help was most needed by mailing your check to E. B. Ford, Treasurer, c/o Philippine Trust Co., Manila. i — ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~ ~~ ~~ ~~ ~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ AMERICAN PRESIDENT LINES, LTD. TRANS PACIFIC -ROUND THE WORLD NEW PASSENGER LINERS PRESIDENT CLEVELAND and PRESIDENT WILSON will be placed in Service early 1947 Passenger & Freight Information Ground Floor-Terminal Bldg., Aduana. St. 28 The American Chamber of Commerce Journal July, 1946

Page  29 Our Critical Food... (Continued from page 26) other food crops. On the basis of this data, Mr. Pauley estimated that out of the 16,000,000 population in 1939, 11,119,000 were rice-eating. Of this number, 7,619,000 were adults and 3,500,000 were children ard the total consumption ot rice was 49,424,000 cavanes of palay, or an average per capita consumption of 4.44 cavanes of palay a year. Including the amount needed for seed, the total palay requirements in 1939 were 51,409,000 cavanes. Considereling an increase of about 18% in our population from 1939 to 1946, and using as a basis the per capita consumption in 1939, it was further estimated that our present human requirements will be 58,381,000 cavanes of palay, exclusive of the 1,985,000 cavanes needed for seed, or a grand total of 60,366,000 cavanes of palay per year. Our palay production for the crop year 1945-46 in the Philippines, as estimated with the use of the sampling method by the UNRRA's Southwest Pacific Mission, is about 35,000,000 cavanes. At the consumption rate of about 5,000,000 cavanes of palay per month, our rice production will last only for a period of 7 months. With a prospect of importing around 104,000 short tons, or 1,684,000 cavanes of cleaned rice (at 56 kilos per cavan) from the United States and other countries plus a possible 60,000 short tons or 972,000 cavanes from Siam and other countries, the maximum quantity of rice that we can expect from abroad for 1945-46 is 2,656,800 cavanes, equivalent to 5,313,600 cavanes of palay. This is sufficient for only a little over a month's consumption. Hence, we are facing a period of rice shortage which will likely last for 4 months. If the consumption of the 1945-46 crop started last December, our rice supply, including possible imports, will last only until July, 1946. Even considering the posible harvest of upland palay from late August to late October which mav amount to 4,000,000 cavanes, still our rice supply will not last to December, when the regular harvest of lowland rice in Central Luzon provinces begins. It appears therefore that the Philippines cannot avoid facing a three-months' rice shortage before the next crop of lowland rice becomes available. The rice-deficient provinces will face a longer period of scarcity, if we fail to bring in rice import allocations from abroad, and if the methods and facilities of distributing rice from the rice-surplus areas to the rice-deficient areas are not improved. To avert possible famine, it is abso lutely necessary that the planting of short season crops be intensified as a means of supplementing the rice and corn supply during the critical months. Food Production Campaign To increase the food supply of the Philippines, the Bureau of Plant Industry through its limited field personnel has launched its drive for the intensive and extensive planting not only of rice and corn but also of root crops and vegetables. In the face of the imminent -food shortage, the cooperation of other government intities which were instrumental in increasing our food supply before and during the war is imperative. The Bureau of Education, through its pupils and teachers, can do much to help the drive. The Philippine Army can raise fresh vegetables to meet the requirements of its various camps. The Bureau of Animal Industry should lead the way in the production of more livestock and poultry. Provincial and municipal officials can help in this campaign by apprising the people of the present critical food situation, and by urging them to devote more effort to the planting of short-maturing crops, and by the maintenance of peace and order. Emphasis should be laid not only on the importance of raising more food but also on the value of avoiding waste (Continued on page 31) U M ---- -- I ON massive earth-moving vehicles used in construction work and in road and airfield building, Goodyear's Sure-Grip giants are proving themselves the sturdiest, heavy-load-carrying work tires ever built Brothers to the Goodyear auto and giant tires which move your cars and trucks, these huge stalwarts are further proof that Goodyear can give you the finest tire for anything on wheels. MORE PEOPLE, MORE TONS, THE WORLD OVDEAR MORE PEOPLE, MORE TONS, THE WORLD OVER, RIDE ON GOODYEAR TIRES THAN ON ANY OTHER MAKE I The American Chamber of Commerce Journal July, 1946 29

Page  30 CATERPILLAR TRACTOR ANNOUNCES EXPANSION PROGRAM An expansion program that increases plant area by nearly 50%o has recently been announced by the Cater, pillar Tractor Co. The major item in this program, according to information received by Koppel (Philippines) Inc., local Caterpillar dealers, is the modern; 22-acre Diesel engine factory shown in the top photo. The lower view shows the location of the new factory in relation to present buildings at Peoria, Illinois, Company vice-president G. E. Spain describes the program as being the largest in the company's history. More than 1,800,000 square feet (about 41 acres) of floor space will be added to the Peoria plant. In addition to the new Diesel engine factory with approximately 925,000 square feet of floor space, the program includes, new building covering 400,000 square feet to permit expansion of tractor manufacturing facilities, additions to the Parts departments buildings totalling 150,000 square feet of floor space, and two other additions to manufacturing buildings having a total of 90,000 square feet of floor area. Of interest from a local standpoint is the fact that the Caterpillar Tractor Co. and its allied manufacturers such as the John, Deere Plow Co., Killefer, Hyster; etc. have re-opened their organization in the Philippines, sole distributors being Koppel (Philippinee) Inc., Boston and 23rd Sts., Port Area, with branch offices in Iloilo; Bacolod, and Cebu. -- - L FAR EAST COMMERCI IMPORTERS INDE WHOI STEEL OFFI1 EQUIPME MENNENI LEATHI GENERAL I I I I AMERICAN=AL CO., INC. -EXPORTERS:NTORS LESALERS 0 CE FURNITURE NT SUPPLIES I PRODUCTS ER GOODS MERCHANDISE I I I jlenmore Uistlleries Lo., lncorporatea, Loulsvllle, THIRD FLOOR-YUTIVO BLDG. DASMARIRAS, MANILA 1 ~TELS.: 2-85-86 & 2-85-87 SOLE IMPORTERS: FAR EAST AND PACIFIC TRADING A. SORIANO Y CIA. General Managers Banco Hipotecario Bldg., Manila CO. I, - 30 The American Chamber of Commerce Journal July, 1946

Page  31 U.S. Shipping... (Continued Xrom page 12) the cargoes carried and the urgent need for them in the Philippines, would have been disastrous. Following this assignment, the companies furnished the crews, stored and supplied the vessel through customary practices insofar as possible. The WSA paid the companies a reasonable agent's fee, took care of the employees' wages and the expenses of operation. When vessels reached the Islands and unloaded their cargoes the WSA stood ready to offer repair and main'enance facilities to ships in need of uch services. Apart from its transoceanic serice, the WSA is also conducting, rough a number of prewar shipping mpanies an inter-island shipping stem. The system operates along ilar lines, but FS boats requisiled from the Army ply the inter-,nd lanes instead of regular oceanng craft. These boats are expectto be turned over soon to the 'eign Liquidation Commission, and pino shipping companies will have opportunity to buy them. fhe problem today, according to vTSA regional director Captain Harold P. Peterson, is not one of ships Our Critical Food... (Continued from page 29) in the handling of food. The planting of root crops like camote, gabi, and cassava, and beans and vegetables like cowpeas, soybeans, sitao, mongo, eggplant, radish, okra, cucumber, etc. should be intensified. If the present troublous conditions in Central Luzon provinces, the rice and men but lack of harbor facilities. The WSA, concerned solely with furnishing the ships to carry the cargoes, has no jurisdiction over the rehabilitation of the port except to suggest that measures be taken to relieve the situation. The prewar volume of 80,000 tons discharged in Manila Harbor monthly has risen to 200,000. Present indications point to an even greater influx of imports in months to come. The War Shipping Administration today is turning over more of its function to companies which operated shipping lines in the Islands before the war. No announcement as to the status of WSA after Philippine independence has been received thus far but WSA is going ahead with the transition to complete operation by private enterprise. granary of the Philippines, as well as in other provinces like Tayabas and Cavite, remain unchanged further reduction in the 1945-46 rice crop is inevitable. It is high time, therefore, for our government to adopt a comprehensive and effective plan for the promotion of a food production drive in conjunction with the peace and order campaign. Sufficient funds should be appropriated for the purchase of seeds and planting materials as well as chickens and pigs for breeding which may be loaped or given free to the farmers. One of the best ways to reduce prices is to increase production. This can only be done by increasing the areas planted to different crops and by encouraging every family to raise some chickens and pigs, either for home consumption or for sale. Idleness not only leads to want and starvation, but also is conducive to vice and lawlessness. Hungry people are hard to control. Hence, keeping the men busy on their farms and backyards throughout the year by giving them sufficient seeds to plant and chickens and pigs to raise, will go a long way to reduce social unrest and lawlessness that are hindering economic progress in many provinces. -- - -- EVERETT STEAMSHIP CORPORATION OWNERS - AGENTS - BROKERS General Oriental Agents American Mail Line, Limited - Seattle General Philippine Agents Messageries Maritimes -U. S. Salvage Association Operating Agents Inter - sland Vessels to all P. 1. Ports CEBU - - ILOILO - - MANILA - - HONGKONG - - SHANGHAI KOBE - - YOKOHAMA I I - -- I The American Chamber of Commerce Journal July, 1946 31

Page  32 Biographical Sketches... (Continued from page 16) manager of the fiber inspection service. In 1936 he founded the Associacion Nacional de Productores de Abaca. He was actively identified with the enactment of Act 332, which created the National Abaca and Other Fibers Corporation, Inc. After the liberation, he served as governor of Camarines Sur. RICARDO NEPOMUCENO Secretary of Public Works and Communications After graduating from the University of the Philippines, Nepomuceno became private secretary to Justices Carson and Street. His career since that time has been briefly given as follows: "Representative for 3 terms; technical assistant, department of justice; judge of first instance; Securities and Exchange Commissioner; Judge of People's court; governor of Marinduque; officer in the guerrilla movement; delegate to the constitutional convention." MANUEL GALLEGO Secretary of Public Instruction Gallego was born in the province of Bulacan and raised in Nueva Ecija He has served 2 terms in the house of representatives. Before the war he represented the Philippines in various important international conferences and missions such as the international tourist conference in the Far East in 1935. Recently he has been a member of the Philippine Rehabilitation Commission a delegate to the United Nations Conference in London, and to the American Political and Social Science conference in Philadelphia, and a member of the Far Eastern Reparations Commission. He has written extensively on legal, cultural, and political subjects. ANTONIO VILLARAMA Secretary of Public Health and Welfare Villarama secured his medical edu cation at the University of the Philippines graduating in 1919. From 1926 to 1935 he was professor of obstetrics in the medical college of that university. His professional honors include the presidency of the Manila Medical Society and the presidency of the Philippine Medical Association (1931 and 1932). He has been a councilor of the association from 1933 to the present time. He was selected in 1939 to represent the Commonwealth of the Philippines in the first congress on obstetrics and gynecology held in Cleveland. His participation in national politics began in 1934 when he was elected to the constitutional convention. He has been a member of the national legislative body since that time. PEDRO MAGSALIN Secretary of Labor Magsalin is a native of Rizal Province. With a legal education as a background, he has served in the government in several capacities. He has been president of the National Civil Service Employees Association and closely identified with various labor and fraternal organizations. As a member of the legislature for several terms, he became prominent through his support of labor legisla'ion. He has served as a judge of first instance and has held other government positions. RUPERTO KANGLEON Secretary of National Defense During a period of almost 30 years' continuous service in the Philippine Constabulary, Kangleon rose from the ranks to the grade of lieutenant-colonel before the war. During the war, he refused surrender. After fighting in Mindanao, he went to Leyte (his native province) and organized the famous Kangleon Guerrillas. He was promoted to the rank of full colonel and was appointed commander of the 7th Military District by General MacArthur. He was highly commended for his efficient service by General MacArthur. Among his decorations is the Distinguished Service Cross. Ile has recently served as governor of Leyte Province. EMILIO M. ABELLO Chief of the Executive Office After graduating from the college of law, University of the Philippines in 1929, Abello engaged in private practice for 5 years. In 1934, he accepted appointment as assistant attorney in the bureau of justice. He was promoted to assistant solicitorgeneral in 1937; and in 1940 he was appointed under-secretary of justice. "The Prosperity Of A People.....mainly depends on its sound economy"-Editorial of a Manila. daily. And there's no denying the fact that the possession of land constitutes an important factor in the economic prosperity of a family. BAONLY g We sell beautiful homesites from 300 to 5,000 P4.50 sq. m. payable 20% down and the balance in and up 60 monthly installments. Per sq.m. MAGDALENA ESTATE, INC. 211 Consolidated Investments Bldg. Plaza Goiti, Manila i INHELDER INC O RPO R A TE D Dealers in: PHARMACEUTICAL SUPPLIES INSTRUMENTS GROCERIES —TEXTILES 5th FLOOR -TRADE & COMMERCE BUILDING MANILA - I ~ 32 The American Chamber of Commerce Journal July, 1946

Page  1 JUL 1.4 194' PERIODICAL ROOm GENERAL LISRY UNIV. OF MICHv ERF COMMERCE THE AMERIC, THE PHILIPPINE WAR DAMAGE COMMISSION i'te.ys Philippines Free Press) From left to right —John S. Young, Dr. Frank A. Waring, Francisco A. Delgado August, 1946..... d P WVcf\r x-x JL,. AAII, NI. 5 50 Centavos

Page  2 I L HERE IS NEWS FOR ALL INDUSTRIALISTS — PIECO — TAKES PLEASURE IN ANNOUNCING THEIR RECENT APPOINTMENT AS SOLE DISTRIBUTORS TO INDUSTRIAL USERS FOR THE INTERNATIONAL HARVESTER CO. (OF THE PHILIPPINES) AND ALLIED EQUIPMENT COVERING BROOKVILLE LOCOMOTIVE CO.BUCYRUS ERIE CO. — PACIFIC CAR & FOUNDRY CO. W. F. HEBARD & CO. FRANK C. HOUGH CO. HUGHES KEENAN CO. READY-POWER CO. PALMER-ELECTRIC MFG. CO. M-R-S MANUFACTURING CO.CONTRACTORS MACHY. CO. ISAACSONI IRON WORKS DROTT MFG. CO. GAS-DISTILLATE & DIESEL LOCOMOTIVES TRAC-TRACTOR EQUIPMENT YARDERS FOR TRAC-TRACTORS MULE TRACTORS FOR INDUSTRIAL HAULING TRACTOR LOADERS & MECH. ROAD SWEEPERS TRACTOR CRANES UP TO 10 TONS CAPACITY COMPLETE DIESEL GENERATOR SETS ELECTRIC POWER PACKS UP TO 50 KW MISSISSIPPI PNEUMATIC TIRED HAULAGE WAGONS BULLDOZERS FOR WHEEL TYPE TRACTORS TRAC-DOZERS & LOGGING WINCHES ETC. SKID-LOADERS FOR TRAC-TRACTORS ALL OF THE ABOVE EQUIPMENT IN USE WITH INTERNATIONAL POWER WE CAN ALSO SUPPLY YOU WITH LISTER DIESEL ENGINES - FROM 3 H. P. TO 38 H. P. BLACKSTONE DIESEL ENGINES- FROM 40 H. P. TO 320 H. P. STOCKS OF SMALLER MODELS DUE TO ARRIVE WITHIN 60 DAYS PHILIPPINE-INDUSTRIAL-EQUIPMENT CO. 4th FLOOR BANCO HIPOTECARIO BLDG. MANILA TEL. 2-89-36 SHOP AND BODEGA 71-84 CRISTOBAL, PACO. _

Page  3 THE AMERIC ':i I E: F COMMERCE Vol. XXXII, No. 5 AUGUST, 1946 Table of Contents Philippine War Damage Commission........... 5 Air Transport in the Philippines.............. 6 Report on Philippine Sugar.................... 8 Kodak Philippines Introduces Production Line M ethods................................. 9 Editorials: Philippines Wlar Damage Commission and its Problems............................ 10 Right Vs. Might.......................... 10 Directors and Officials of the 11 Operating Com-,mercial Banks in the Philippines........ 11 Statistics on Bank Resources, Liabilities and Miscellaneous Activities......................... 12 Philippine Coal............................... 13 Philippine Copra and Coconut Oil Agreement..... 16 News and Notes............................. 17 Philippine Abaca Fiber Agreement............. 18 Mining News and Notes..................... 19 Customs Administrative Order No. 18........... 20 Mine Stock Averages-by A. C. Hall & Co....... 28 B. GABERMAN STOCK BROKER * MEMBER MANILA STOCK EXCHANGE 328 Dasmarinias, Manila --- I I, I AMON TRADING CORPORATION Successors to M. VERLINDEN MANUFACTURER'S AGENTS * IMPORTERS * EXPORTERS Offices: 308-310 AYALA BLDG. (Formerly National City Bank Bldg.) Sales Dept. 305-307 AYALA BLDG. Tel. 2-75-33 MANILA Exclusive Representatives In The Philippines, For The Following Manufacturers & Exporters: AMTEXCO TRADING CO., S. A., (Belgium) Vitrified Ceramic Floor Tiles, Glazed Walled Tiles, Wall Papers, Marbles, Firearms SOCIETE ANONYME ETERNIT, (Belgium) Asbestos Cement Sheets, Asbestos Cement Pipes, "Eternit Granit6" asbestos Sheets MAISON F. MATHIEU, S.A., (Belgium) Steel and Wire Products GLACES ET VERRES (GLAVER), S.A., (Belgium) Window Glass, Plate Glass, Sheet Glass, Figured Rolled Glass A. SHAW & SON, (England) Glazier's Diamonds, Glass Cutting Tools AUGUST STENMAN A.B., (Sweden) Hardware TORSVIKS SAGVERKS AKTIEBOLAG, (Sweden) Wallboards "Hernit" THE ARMCO INTERNATIONAL CORP. (U.S.A.) Stainless Steel Products BIRKS-CRAWFORD LTD. (Canada) Preserves STE. VERRERIES D'EXTREME ORIENT (Indo-China) Glasswares and Bottles PARKER KALON CORPORATION (U.S.A.) Fastening Devices HOGANAS - BILLESHOLMS AKTIEBOLAG Refractory Products. STOCK & INDENTS The American Chamber of Commerce Journal August, 1946 I - -- - - -- -- --- -- -—; — --- 3

Page  4 a -~~- ------------- -— ~ -----.- ----— I. --—. —., =-.;I ----. I FAITHFUL TO THEIR REPUTATION CIGARS CONTINUE TO BE THE RECOGNIZED LEADERS IN QUALITY AND WORKMANSHIP CORONAS - Our pride - Manila's Best in boxes of 25 ALCALDES -the all day smoke in boxes of 50 BELLEZAS - a small, light cigar in boxes of 50 i i I L KUENZLE & STREIFF INC. Temporary office at: 31 TAYUMAN, MANILA at "ALHAMBRA" Cigar Factory Building IMPORTERS & EXPORTERS Manufacturers' Representatives WINE & LIQUOR DEALERS General Agents for: SUN INSURANCE OFFICE, Ltd. London. SPRINGFIELD FIRE & MARINE INSURANCE CO., Springfield, Mass., U.S.A. BALOISE FIRE INSURANCE CO., Ltd. Basle, Switzerland Underwriting: Fire Insurance Marine Insurance Motor Car Insurance Accident Insurance Aviation Accident Insurance Baggage Insurance Loss of Profits Insurance I.11.i i BEWARE OF IMITATIONS! ALHAMBRA CIGAR & CIGARETTE MFG,. CO. 31 Tayuman - Manila I. -- ------ a ~ rar ~ ~ a ~ 4 The American Chamber of Commerce Journal August, 1946

Page  5 The Philippine War Damage Commission "The Commission shall consist of three members, to be appointed by the President of the United States, by and wzith the advice and consent of the Senate. One of the members of the Commission shall be a Filipino." (Philippine Rehabilitation Act.) DR. FRANK A. WARING Dr. Frank A. Waring received his B.S. degree from the College of Commerce, University of California, in 1924, an M.A. in economics in 1930, and a Ph. D. in economics in 1932. From 1924 to 1927 he was auditor and served in the exchange and loan departments of the American Trust Co., San Francisco. From 1928 to 1934 he was department head and professor of economics at Armstrong College, Berkeley, Cal., and lecturer in money and banking, American Institute of Banking, Oakland, Cal. In 1934 Dr. Waring was appointedl economist in the United States Tariff Commission, serving until 1942. He was made Special Adviser to the Commission in 1942. In 1943 he became Director of Research, Office of Inter-American Affairs, and in 1945 was appointed Special Assistant to the Secretary of Commerce to direct the Department's promotional and research activities in the field of international trade. In 1946 he became Special Adviser on the Far East for the Export-Import Bank of Washington. In 1934-36 Dr. Waring was a member of the Economic Survey Clommittee on the Philippines, Department of State. Hie was a member of the Joint Committee on Philippine Affairs appointed by the President, 1937-38; Executive Officer, American Technical Mission to India, 1942; Technical Secretary, United States Conference lon Food and Agriculture, 1943; Secretary-General, Conference of Commissions of Inter-American Development, 1944; and Adviser to the United States Delegation, United Nations Conference on International Organization, 1945. He is the author of Banks and Banking in Mexico, various articles on money, banking, and finance, and the author or co-author of many Government reports on economics and trade. MR. JOHN S. YOUNG Mr. John S. Young has long had an active interest in foreign affairs. During the recent war he was Assist ant Naval Attache at the American Embassy in Moscow, U.S.S.R., in 1942, with the rank of Commander, serving as Aide to Ambassador William H. Standley. At Moscow he was also the first Director of Cultural and Public Relations between the Soviet Union and the United States. Upon completion of duty in Russia in 1944, Mr. Young was successively detailed to the Office of the Under Secretary of the Navy and later to the Executive Office of the Secretary of the Navy. During the latter assignment, he was a member of the British-American Combined Committee for French Empire Economic Affairs and also the Combined Committee for North African Affairs. In 1945 Mr. Young was appointed Special Assistant to the Administrator of the Foreign Economic Administration and Inspector General of Lend-Lease Operations. As Inspector General he made extensive tours of the Far East, Middle East, and all of Europe. He then was transferred to the Department of State in the Interim Agency for Economic Affairs and War Surplus Disposal. His last assignment before his current appoinment was as Consultant to the Assistant Secretary of State. Mr. Young attended Yale and Syracuse Universities. Later he took graduate work at Cambridge University in England and the Royal University of Uppsala in Sweden. He has received honorary degrees as Doctor of Laws from St. Benedict's College in 1933, George Arents Pioneer Medal and Diploma from Syracuse University in 1939, and Doctor of Science from Suffolk University in 1940. He also was a lecturer in the College of Commerce and Finance, New York University, for five years beginning in 1932. Between 1928 and 1936 he was a commentator on international affairs for NBC. The following year he joined the J. Sterling Getchell Advertising Agency. At that time, 1937, and until 1940, he was director of radio and television at the New York World's Fair. During that period he traveled throughout all of Europe and South America negotiating foreign government participation in World's Fair programs. He then became Director of Public Relations of the World's Fair and served in that capacity until its closing in 1940. Back at National Broadcasting Company in 1941, he became foreign correspondent for the network in Japan, China, and the Philippines, and later with the Far East Command, British Army, in Singapore, Burma, Java, India, and Egypt. * * * MR. FRANCISCO A. DELGADO Mr. Francisco A. Delgado, Filipino member of the War Damage Commission is a native of Bulacan, Bulacan. He received his first schooling in the San Juan de Letran and Ateneo de Manila Colleges, and began his law studies at the Colegio Filipino in Manila. In 1903 Mr. Delgado went to the United States and took his first American schooling in California. In the fall of 1903 he entered law school at the University of Indiana where he graduated with an LL.B. in 1907. He was admitted to the Indiana Bar the same year. In 1945 the State University of Indiana conferred upon him the degree of LL.D. _(honoris causa). Mr. Delgado also attended the Kent Law School of the University of Chicago and took a postgraduate course at Yale University where he got his M.L. degree (cum laude) in 1908. Upon his return to Manila Mr. Delgado was admitted to the Philippine Bar. He was for some time the Chief of the Law Division of the Executive Bureau. Taking up the private practice of Law in 1913, he was at the same time a professorial lecturer at the University of the Philippines and the Far Eastern University. In 1931 he was elected a member of the House of Representatives and sat for several terms. Mr. Delgado served as the Philippine Resident Commissioner in Washington from 1934 to 1936. (Continued on page 24) The American Chamber of Commerce Journal August, 1946 5

Page  6 Air Transport in the Philippines With 39 cities of the Philippines now connected by air with Manila, and with a volume of business many times pre-war rec'ords in all respects, air transport can easily claim to be the wonder industry of the present-day Philippines. A brief comparison in available statistics will disclose clearly the monumental growth of this fascinating industry under post-war conditions. During the month of June, 1946, revenue passengers on domestic air lines numbered 23,740, as compared with 16,209 for 1939-40 (12 month period). For the first six months of this year, the number of revenue passengers amounted to 107,331, or 6-1/2 times the number for 12 months in 1939-40. Indicative of the rapid extension of air service to sections not served formerly which has characterized the post-war period is the tremendous increase in passenger miles flown. In 1939-40 (12 month) this figure was 1,171,453 passenger miles. For the first six months of this year, the figure is (in round numbers) 23,000,000 passenger miles, or approximately 20 times as great. In other words, in 1939-40 the average paid passenger was carried 72 miles, while this year the average paid passenger has been carried 214 miles. In other branches of air service, the increase has been equally startling. In 1939-40, 15,835 pounds of mail and 3,083,415 pounds of express were carried by air. For the first 6 months of 1946, the figures are 61,542 pounds and 6,996,699 pounds respectively. Again it should be remem. bered that we are comparing a 12 month pre-war figure with a 6 month post-war figure. Before leaving the subject of pre-war and post-war comparisons, attention should be called to the item, free passengers. In this item the trend has been just the reverse of that described above. In 1939-40, the number of free passengers carried by domestic air lines amounted to 4,198. In 1946 (6 months) only 427 free passengers have been carried - an average of 71 per month as compared with an average of 350 per month before the war. This almost incredible growth of the air transport business has taken place with little or no change in the organization of the industry. In everything but name the two companies which share the business today are the same as the two companies which shared it before the war. First by four months to commence post-war operations was the Far Eastern Air Transport, Inc., commonly known as FEATI. Its first paid passenger flight was on Nov. 19, 1945. This company is the direct successor of the pre-war IloiloNegros Air Express Co. (INAEC), the change in name merely reflecting the company's new determination to expand its operations outside the Philippines. The officers and directors of the company remain little changed. The president is Eugenilo Lopez; the vice-president is Salvador Araneta; and the treasurer is Antonio Zulueta, Jr. The other directors of the corporation are Carlos Lopez, Vicente Lopez, Primo Santos, Miguel Cuaderno, Rafael Ledesma, Mrs. Victoria L. de Araneta, and Mrs. Rosario Lopez Cooper. The 23,300 shares (non-par value) are divided among 30 stockholders. With Maj or Henry W. L. Meider, operations chief, in the United States on company business, Captain Robert P. Morgan is acting operation manager and Lt. Alfred Clements, acting as sistant manager. Major Meider will be well remembered by former patrons of INAEC. Philippine Air Lines (PAL), by reason of the record of its parent company, the Philippine Aerial Taxi Co. (PATCO), claims the honor of having been the first airline to operate in the Philippines before the war. Its resumption of operations after the war dates from Feb. 14, 1946, on which date its first paid passenger flight took place. The officers of the corporation are Ciolonel Andres Soriano, president; Ramon Fernandez, chairman of the board; Manuel Elizalde, vice chairman; A. M. Macleod, executive vice-president; Art L. Stewart, vice-president advisor in charge of the traffic divisilon; and Colonel P. I. Gunn, vicepresident in charge of operations. This company also plans to extend its services outside the Philippines as soon as conditions permit. With TWA (one of the leading American airlines) as stockholder in its corporation, PAL plans to model its operations along the lines that have proved most successful in the United States. The connection has already led to the transfer of ten top TWA men to the Philippines, among whom are Art L. Stewart, vice-president in charge of traffic; W. W. Linder, treasurercomptroller; Frank Howell, general traffic manager; L. C. Cole, --........-....... ' Motor Inspection at Makati Airport The American Chamber of Commerce Journal August, 1946 6

Page  7 station supervisor; E. J. O'Brien, field supervisor; M. M. Stockman, assistant traffic manager; F. Langenfeld, flight superintendent; Warren Lindsay, reservation supervisor; and Mrs. Ruby S. Williams, supervisor of ticket offices. H. S. Webster, formerly a commander in the navy air corps is 'operations manager. Of the 39 cities accessible by air transport from Manila, 18 are served by both companies:Bacolod Basco Baguio Cebu Clotabato Davao Del Monte Dipolog Dumaguete Iloilo Laoag Lucena Naga San Fernando (La Union) Tacloban Tagbilaran Zamboanga In addition to the above, FEATI offers service to Baler Buayan (Davao) Cagayan Calapan Dansalan Lingayen Lipa Misamis Puerto Princessa San Jose (Mindoro) Vigan In addition to the 18 points shared with FEATI, PAL offers service to Aparri Bagabag Ballesteros Capiz Daet Legaspi Masbate Nasugbu San Jose (Nueva Ecija) Tuguegarao In a few cases, extension of service to some of the towns listed above, although approved by the government, has not yet been actually accomplished because of the poor condition of the landing fields. However the delay, is reported to be strictly temporary.I Practically all the air fields in use at:l the places named are still army-con-i trolled. Their use by civilian planes has been made possible by special arrangements with the United States Army. However the fields are in (Continued on page 22) Early morning passengers arriving in Manila from Lucena, Tayabas FEATI brings live chickens from Iloilo PAL brings fresh fish from Naga, Camarines Sur 7 The American Chamber of Commerce Journal August, 1946

Page  8 Report On Philippine Sugar (Data secured through the courtesy of the Philippine Sugar Administration) In April, 1942 (at the end of the milling season) there seemed little danger of a serious sugar shortage in this one of the great sugar producing areas of the world. With 550,000 short tons in warehouses, and with a production plant (plantations and centrals) intact that was capable of producing 1,100,000 short tons per year, the; problem of meeting local needs of 150,000 tons a year did not loom as a serious one. But the picture began to change rapidly. Sugar stocks were destroyed, or confiscated by the Japanese for their own purposes. Further production under Japanese occupation, for varilous reasons, became impossible. And liberation found the sugar industry completely prostrate. In March, 1945, the total sugar stocks of the country amounted to 16,000 short tons, the production of cane was comparatively non-existent, and of the 41 centrals, 9 were "virtually destroyed," 15 "badly damaged," and 17 "partially damaged." During the following year, the situation improved but little. Five centrals (out of 41) were able to resume production on an extremely limited basis. These were Paniqui Sugar Mill, Central Azucarera Don Pedro, Luzon Sugar Co., Hind Sugar Co., and Central Azucarera del Norte with a total production for the 1945-46 milling season of 13,528.83 short tons or 194,044.72 piculs-not quite 10% of the domestic quota of 150,000 short tons. It is estimated that the 1946-47 milling season will see this production volume increased by 5 times, to 66,600 short tons; a tremendous improvement, but still far short of meeting domestic requirements. 13 centrals only will share in this production; several that are in operating condition still lacking the cane. The accompanying table of production for 1946-47 is based on estimates made in June, 1946. For the 1947 -48 season it is estimated that 100,000 hectares will be planted in sugar cane which is approximately half of the 1940-41 area. Summarizing briefly, in 1946-47 Luzon will have 9 centrals operating with anticipated production of 47,100 short tons; Negros 3 centrals with anticipated production of 16,300 short tons; and Leyte 1 central with anticipated production of 3,200 short tons. Brief reports on the other 28 centrals follow: Cebu Sugar Co., Cebu: - badly damaged; no plans for immediate resumption of operations. Mt. Arayat Sugar Co., Pampanga: - badly damaged; no plans for immediate resumption of operations; no cane. Bataan Sugar Co., Bataan: - badly damaged; no plans for immediate resumption of operations; no cane. Malbajacat Sugar Mills, Pampanga: - badly damaged; no plans for immediate resumption of operations; no cane. Hawaiian Philippine Co., Nlegros Occ,: - badly damaged; engineers now engaged in surveying condition, preparatory to repairing the mill. Central Leonor. Negros Occ.:mill destroyed; may consolidate with Bacolod-Murcia. Asturias Sugar Central, Panay: mill destroyed; but planning to rebuild. Pilar Sugar Central, Panay: - mill destroyed; may secure the mill (Continued on page 20) ESTIMATED SUGAR PRODUCTION FOR 1946-47 SEASON Centrals Tons Cane Under Cultivation Central Azucarera de Bais, Bais Neg. Or. Calamba Sugar Estate, Calamba, Laguna Luzon Sugar Co., Calumpit, Bulacan.... Central Azucarera del Danao, Danao, Negros Occ.................. Pampanga Sugar Mill, Del Carmen, Pampanga............................. Central Azucarera Don Pedro, Nasugbu, Batangas......................... Phil. Sugar Estate Dev., El Real, Laguna Central Azucarera de la Carlota, La Carlota, Negros Occ................. Hind Sugar Co., Manaoag, Pangasinan... Central Azucarera del Norte, Candon I. Sur............................ Ormoc Sugar Central, Ormoc, Leyte.... Paniqui Sugar Mill, Paniqui, Tarlac..... Central Azucarera de Tarlac, San Manuel, Tarlac............................ 84,000 44,000 25,452 34,052 12,393 95,676 2,850 27,777 44,800 20,000 31,000 72,000' 77,000 571,000 Short Tons (14.34 piculs) 8,715.00 5,521.82 2,874.76 4,089.29 1,728.08 11,339.89 337.79 3,486.00 4,997.53 2,091.60' 3,241.98 8,533.73 9,663.19 66,220.66 TO TA L......... I- — --- --,.~~ ~~~::~ ~~~.~ ~: ~::~ ~.~.~ ~.'~:.:::~~ ~~:....~ ~~:~.~.~~ ~.1.: '~'~:.::~~ ~:::~ ~~:~.~: ~.::~~.:.~.~::~:.~.~:~:~'~~:.::::... ~..~~ I ~;::~'. ~:'j~.. ~ ~.: ~~:'~ "~~;~:~..:~~-~:j ~~ d ~.: ~:~ 5: ~:-::f:~-~:~:~~~~j —:~: ~~.:~:.~::~:;:~:.::-j: :'~~~''1 ':~~~::'~~ ~:'~:' ~: Central Azucarera de Tarlac (picture taken in April, 1946) 8 The American Chamber of Commerce Journal August, 1944

Page  9 Kodak Philippines Introduces Production Line Developing and Printing The latest word in film developing and printing has been brought to.. the Philippines by Kodak Philippines, subsidiary of the Eastman Kodak Co. With a production capacity of 300 films and 5,000 prints per hour, the photo-finishing department opened for business in the Myers Bldg., Port Area on April 24, 1946. i-i,,i This development came at the request of the U. S. Army, and the plant is intended primarily for the service of the army and navy. But officials of the company state that it will remain as a permanent part of the Philippine establishment. At the present time only 10% iof the business comes from civilian sources, while 90% comes from, iarmy and navy personnel. The local plant is patterned after one that has bleen in operation in Honolulu for several years. However it exceeds the Honolulu plant in size and efficiency. Arthur C. Ables, who was brought from Honolulu to organize and operate the Manila plant, describes the latter as being the largest photo-finishing plant outside of continental United States and the most modern in equipment in the Film Drying Room world. Included in the equipment are the following:10 Eastman Automatic Contact Printers 4 Velox Rapid Printers 4 Eastman Precision Enlargers 2 Pako Senior Film Developing Machines 2 Eastman Commercial Print Dryers 1 Pako Liberty Model Print Dryer 2 Print Developers specially designed and constructed for Manila by Eastman Kodak Engineers. 1 Ice Water Machine (capacity 5 tons) for controlling the temperature of chemicals. 1 Eastman Copy Camera 6 Stainless Steel Chemical Tanks (100 gal.) with lightning mixers. all of which represents an investment of approximately P80,000. The plant utilizes a force of more than 70 individuals, all of whom are Filipinos employed locally and half of whom are girls. The staff was carefully selected and given intensive training for a period of six weeks (Continued on page 25) Operators using automatic contact printing machines The American Chamber of Commerce Journal August, 1946 9

Page  10 THE COMMERCE L Published Monthly in Manila, Philippines The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor fact that in these matters the Commission has no discretion. It can only see to it that the law is followed. Second, the Commission's power in determining specifically what claims shall be paid and in what amount is final and absolute. There is no appeal from its decisions except to the Commission itself. Third, the Commission's power in establishing the procedures to be followed in presenting claims is also Cinal and absolute, subject to no modification by any other body or individual. Fourth, the claimant's entire claim (even if approved) is jeopardized and payment may be cancelled or recovered if the Commission learns (a) that he is guilty of a false statement or of overvaluation 'of loss or damage or (b) that he has paid or offered to pay on account of services rendered more than 5%C of the compensation paid by the Commission on account of his claim. After surveying the situation in the Philippines, the War Damage Corporation estimated that there will be approximately 750,000 claimants. The task of handling such a volume of claims staggers the imagination. It is to the vital interest of each individual claimant and of the country as a whole that the task be accomplished with the greatest possible efficiency and justice. The responsibility of achieving this objective cannot rest on the Commission alone. In part, as argued above, it rests on each individual claimant, who should strive to cooperate fully with the Commission at all times. Entered as second class matter Dec. 10, 1945 at the Post Office at Manila, P. I. Subscription rates: One year in the Philippines, P5.00; United States, $5.00 U. S, Currency, American Chamber of Commerce of the Philippines Directors Wm. H. RENNOLDS, President Samuel Garmezy AMOS G. BELLIS, Vice-President E. M. Grimm E. BYRON FORD, Treasurer J. A. Parrish A. D. Calhoun Julius S. Reese John F. Cotton -- The Philippine War Damage Commission And Its Problems In this issue of the Journal we introduce to our readers three gentlemen who for the next two years at least will assume roles of pre-eminent importance in the rebuilding of the economic structure of the Philippines. These gentlemen are Messrs. Waring, Young, and Delgado who constitute the Philippine War Damage Commission. On them will fall the heavy task of considering and adjudicating the claims of hundreds of thousands of claimants for compensation. Of equal weight will be the tremendous responsibility of accomplishing to the fullest possible extent the stated objective of the Congress of tne Uniced blates-tne renauiotailon ot rniiipplne economy-with the funds to be provided for that purpose. The records of experience and accomplishment of these three gentlemen give assurance that their work will be done efficiently. Their established characters give equal assurance that the Commission will be guided in its decisions by the highest principles of justice and equity. But there is another side to the picture. The people who will constitute the claimants also have their responsibility which must be fulfilled if the Commission is to function with maximum effectiveness. Their first responsibility is to familiarize themselves thoroughly with the provisions of the basic law itself. A second responsibility is to learn and to follow the procedures that will be established by the Commission. Otherwise the awarding and payment of claims will be seriously retarded to the detriment of all. Certain basic aspects of the situation need to be emphasized and re-emphasized. First, the classes of property excluded from consideration for compensation are stated definitely and explicitly in the law itself. This is also the case with regard to the individuals or organizations that are entitled to consideration. The prospective claimant should acquaint himself thoroughly with these provisions. He should furthermore appreciate the RIGHT VERSUS MIGHT This is an editorial which we are ashamed to have to write but we would be more ashamed not to write it for it is an 'earnest attempt to help correct a situation that is definitely wrong. All attempts to have this wrong situation righted by negotiations have so far failed. Consequently, publicity appears to remain the only recourse. Here is a brief description of this situation. Against the will,of the property owners involved, the U.S. Army authorities are still occupying residences, warehouses, office space, factories, apartment houses and land. Some of these properties which to speak plainly are being held forcibly by the army authorities are covered by signed leases (which have expired) and some of them are not covered by signed leases of any kind. On some of them rental (fixed arbitrarily by the army) is being paid by the army and on some *cf them not a single centavo of rental has been or is being paid. Some of the property belongs to Americans, some to Filipinos, and some to other nationalities. Army occupation of some of these places affects the well-being of only the immediate owner; but in other cases the well-being of the community and even of the entire nation is being affected. In practically all cases the army occupancy has lasted for more than a year. As stated above, attempts by individuals and by organizations to correct this situation have failed. Not only have they failed, they have encountered an attitude on the part of army authorities that can be adequately described only by using the regrettable adjective "arrogant." In several cases correspondence has been completely ignored. In many cases answers have been long delayed. In one case the answering letter signed by a Major General curtly dismisses the matter as follows, "Investigation discloses that military necessity for the use of the property (a large apartment house which the army has occupied since March 10, 1945) pre(Continued on page 13) 10 The American Chamber of Commerce Journal August, 1946

Page  11 Directors and Officials of the Eleven Operating Commercial Bank of the Philippine Islands:Santiago Freixas, President; Luis Lopez, vice-president; A. F. de Villa-Abrille, vice-president; Luis Ablaza, Charles Davies, Manuel Elizalde, Gabriel La 0, Jcse de Leon y Joven, Charles Parsons, Manuel Perez Rosales, and Alfonso Zobel, directors. Chartered Bank of India, Australia & China:Manila Agency A. J. McIntosh, agent, E. W. Hare, sub-agent, W. G. M. Anderson, accountant; I. C. Mackay, asst. accountant, L. C. Harding, sub-accountant, W. Watson, sub-accountant, G. D. Kyd, sub-accountant. Cebut Sib-A encl J. MACLENNAN, sub-Agent, D. Murray, sub-Accountant. Iloilo Sub-Agency J. A. Hamilton sub-Agent. China Banking Corporation:Board of Directors Dr. Albino Z. SyCip, chairman; George Dee Se Kiat, vice-chairman, Dee K. Chiong, vice-chairman, Uy Yet; Guillermo Dy Buncio, Dr. Marcelo Nubla, Dr. H. L. Huang, R. C. Chen, Dee Hao Kim, Eaton K. C. Tsai, Oei Yok Kie, members. Officers Dr. Albino Z. SyCip, president and manager; George Dee Se Kiat, vice-president; Dee K. Chiong, vice-president; Yap Tian Sang, asst. manager, Martin Hopun, asst. manager; Lee Siau Tong, manager, foreign Department; Y. L. Young, cashier, Perfecto Jose, secretary, L. L. Pan, auditor; Siy Ka Bio, accountant Tan Kim Liong, asst. cashier, God. P. Ricafort, Wu Liang Chen, and Uy Ko Sent, sub-accountants. Hongkong and Shanghai Banking Corporation:A. F. Handcock, manager, J. S. Watson, sub-manager, W. Webster, acting sub-manager, A. B. Kelly, accountant; T. M. Dunlop, J. A. McGregor, K. D. Robertson, P. A. Haddock; A. G. A. Owen, and J. H. P. Young, assistants. National City Bank of New Yotrk: Alexander D. Calhoun, super Banks in the Philippines visor, Philippine & C h i n a branches; George N. Coe, manager, Manila branch; Fred W. Bender, Fay C. Bailey, Gilbert A. Benson, Milton M. Bates, Granville R. Hutchison, and Chester V. Grant, sub-managers; Daniel Keating, William A. Staley, Irving G. Spering, Robert E. Russel, John Brownley, Thomas E. Bamford, accountants and pro-managers; William H. Young, Theo L. Edlmiston, and Herschel F. Rogers, sub-accountants and pro-managers, Edgardo J'. Carvajal, sub-accountant and auditor, Isidore Falek, William V. Dyson and Clinton B. Hughes, sub-accountants. Nederlandsch Indische Handelsbank, N. V.:D. A. ten Grotenhuis, manager, A. Taapken, accountant, W. A. Jonckheer, T. Kampinga, J. W. Muysken, W. M. Meertens. Peoples Bank and Trust Company:-. Directors Judge John W. Haussermann, Amos G. Bellis, H. J. Belden, E. M. Grimm, S. Garmezy, W. Douglas, J. S. Peterson. Officers Judge John W. Hausserman, president, Amos G. Bellis, first v i c e-president, W. Douglas, manager, S. L. Masanga, asst. manager, Angel A. Reyes; branch manager, San Fernando branch and Tarlac branch; Vedasto Basa, treasurer, L. L. Velilla secretary. Philippine Bank of Commerce:Board of Directors N. Jacinto, chairman; Jose Cojuangco, A. Calalang, Ernesto D. Rufino, Juan Cojuangco, Eduardo Cojuangco, Vicente A. Rufinso, Lorenzo Sumulong, Aurelio Montinola, L. R. Aguinaldo. Officers Jose Cojuangco, president, A. Calalang, vice-president; Juan Cojuangco, 2nd vice-president and asst. treasurer; Ernesto D. Rufino, treasurer; Jesus P. Ja cinto, cashier. Philippine Benk of Communications: Dr. Chengting T. Wang, president, T. N. Lee, executive vice president, H. T. Chang, vicepresident, T. T. Linn; treasure, J. P. Hernando, secretary; Chengting T. Wang, T. N. Lee, H. T. Chang, T. T. Linn; T. M. Chen, W. P. Hsu, and J. Y. Shen, directors; H. T. Chang, manager, Walter Yue, submanager, T. M. Chen, sub-manager, Z. H. Daung, pro-manager, W. P. Hsu, asst. manager; J. Y. Shen, asst. manager and cashier, Y. C. Soong; acting accountant, C. C. Chen, asst. cashier. Philippine National Bank:Board of Directors Hon. Ramon Ozaeta, chairman; V. Carmona, Gil J. Puyat, V. Villanueva, Hon. Mamerto Roxas, Hon. Guillermo B. Guevara, and Primitivo Lovina, directors; Eulogio Reyes, secretary. Officers V. Carmona, president, D. Pekson, executive vice-president, D. T. Dikit, vice-president, D. Buencamino, vice-president, M. J. Marquez, vice-president, J. Quintcs,. auditor, B. Dizon, cashi(er, R. Recto, acting chief accountant, Leon Ancheta, manager, foreign Department; R. Manotoc, manager, credit department, A. Bautista, manager, branches & agencies department, S. Kabigting, manager, loans & discounts department, C. Saavedra, manager, special assets department, E. Gonzaga, manager small loans department; J. O. Buenaventura, manager, trust department; R. de los Reyes, chief, legal department. Philippine Trust Company:Directors E. B. Ford, president, Luis Ablaza, Gabriel A. Daza, Gabriel La 0, Paul A. Meyer, H. B. Reyes, Mons. Rufino Santos, members. Officers E. B. Ford, president, P. M. Poblete, vice-president, Cipriano B. Castro, vice-president and trust, F. Ossorio, treasurer, Manuel F. Garcia, asst. treasurer, Mrs. E. de Castro, secret ary; G. L. Rialp, manager, foreign department, Manuel V. Alcid, chief accountant; I. O. Guzman, asst. trust officer. The American Chamber of Commerce Journal August, 1946 11

Page  12 Statistics on Banking Resources, Liabilities, and Miscellaneous Activities (Prepared by the Bureau of Banking from reports submitted by 11 operating commercial banks) Resources Loans, discounts and overdrafts............................................ Investments................................................... Due from Head Office and/or other Office or Offices which supplies working capital to foreign banks....................................................... Due from other banks in the Philippines.................................... Due from banks outside the Philippines...................................... Cash on hand.............................................................. Balances in clearing account............................................... All other resources not included above....................................... Total resources................... Liabilities Dem and deposits...................................................... Savings deposits....................................................... Time deposits............................... Deposits of public funds................................................... Due to Head Office and/or other Office or Offices which supplies working capital Capital - domestic banks............................ Surplus, reserves and undivided profits..................................... Due to other banks in the Philippines......................... Due to banks (Clearing House depository)................................... Due to banks outside the Philippines...................................... All other liabilities not included above...................................... Total liabilities................... Miscellaneous Exchange bought since last report - spot...................................... * Exchange bought since last report- future............. Exchange sold since last report-spot............................ ~- Exchange sold since last report-future ~S Debits to individual accounts since last report............... cS Trust department accounts: a. Court trusts................................................... r) b. Private trusts...................................................... c. Corporate trusts................. Import bills whether for the purpose of collection only or otherwise received since 9 last report............................. Export bills sent abroad whether for the purpose of collection only or otherwise since last report........................................................ Week Ending July 6, 1946 Week Ending July 13, 1946 Week Ending July 20, 1946 Week Ending July 27, 1946 P175,801,949 P173,128,654 P170,843,921 P181,814,510 29,836,854 29,836,854 29,834,002 29,833,914 78,722,329 70,819,482 76,512,746 71,265,506 30,401,949 36,180,897 36,381,928 38,088,836 126,468,199 124,645,969 123,128,037 117,785,613 154,234,829 155,694,330 161,486,714 161,097,640 25,500,000 29,000,000 27,500,000' 30,000,000 118,853,546 119,216',678 122,339,204 116,019,989 P739,819,655 P738,822,864 P748,026,552 P745,906,00'8 P229,953,541 P228,122,825 P231,163,776 P226,950,003 109,319,831 110,205,311 111,125,120 112,197,556 9,028,048 9,040,134 8,885,503 8,998,113 120,271,237 123,090,489 124,801,624 126,682,382 35,992,728 32,727,431 32,906,977 32,387,875 33,414,400 33,414,400 33,414,400 33,414,400 10',726,718 10,669,602 10',682,135 11,890,834 2,796,613 4,261,143 5,572,328 5,146,513 25,500,000 29,000,000 27,500,000 30,000,0')0 11,118,793 7,691,944 8,641,803 9,933,531 151,697,746 150,599,585 153,332.886 148,304,801 P739,819,655 P738,822,864 P748,026,552 P745,906,008 P 6,523,168 201,625 12,198,757 1,978,824 81,077,883 1,017,873 3,645,185 7,582,633 5,811,400 121,085 6,759,025 P 6,901,575 80'6,500 12,136,438 2,612,443 99,927,884 1,031,512 3,634,570 7,582,633 7,451,609 115,661 9,393,281 P 6,374,355 1,743,275 11,734,647 2,720,417 98,774,547 1,903,124 3,716,767 7,582,633 5,555,123 662,498 6,490,202 P 8,078,256 3,165,850 14,449,807 5,997,294 78,0'40,531 1,090,585 3,715,860 7,582,633 11,522,997 730,322 6,808,635 Letters of credit issued since last report.....................................

Page  13 Philippine Coal Sooner or later attention in thle Philippines will necessarily turn to the problem of coal - where, and how to get it. Prior to the war', approximately 250,000 tons of coal were imported annually, by far the greater part coming from Japan and the balance from Hanoy. Only one producing coal mine was in operation in the Philippines with an average output of 37,000 tons per year (for the four years preceding the war). Although this mine had been in constant production from. 1922, it was probably the least known mining property (to the general public) of any in the country. Located on the small island of Batan (12 nautical miles east of Legaspi), it was owned and operated by the Liguan Coal Mines, Inc., a company whose shares were never quoted on stock exchanges for the simple reason that it was a closely held corporation with only 13 stockholders, none of whom was anxious or willing to part with his holdings. The directors of the company were Murad Saleeby, Fuad Saleeby, the late S. Gaches, H. P. Strickler, and the late A. F. Duggleby. The authorized capital of the company was P500,000, of which P340,000 was subscribed and of tLis amount P339,400 paid up. The development of the mine has bren characterized by careful financing and long range planning. Its success was a tribute to the vision, faith; and energy of one man, Fuad Saleeby, who promoted it originally (on a shoe-string of P25,000 cash) and has continued in active control of operations. Up to July, 1921, the property was held by the U. S. Army as a military reservation. As far back as 1901, the army had been interested in developing Philippine coal for the specific purpose of securing a safe, dependable, and convenient supply for its transports. After extensive field surveys, the site now occupied by Liguan was selected for development. Several causes led to this selection. First, the quality of the coal was found to be superior to, that from other fields in calorific power, in resistance to weathering, and in the small ash re sidue. Second, the veins wiere so located as to be easily mined. Third, the location of Batan Island near San Bernardino Straits (through which the regular route of army transports lay) made it convenient as a coaling station. And, fourth, the harbor (known as Coal Harbor) provided safe anchorage in all kinds of weather. After years of work and the expenditure of considerable sums of money, the army's coal mining venture finally bogged down in interdepartmental quarrels over control and responsibility, and in July, 1921 the property was returned to the' civil government. The following year it was acquired by Saleeby on a 50 year lease. Later thie area of the lease-hold was expanded to its present size-1,200 hectares. This was one property that the Japanese were anxious to preserve and utilize. They needed the coal. Brushing aside the technicality that the majority stock was owned by Filipino citizens, they classified the mine as American property and moved in with their customary (Continued on page 26) RIGHT VS. MIGHT... (Continued from page 10) eludes termination of the lease at the present time. It is not contemplated that the lease will be terminated in the near future." The lease to which the General speciously referred is good only "for the duration of the war and 6 months thereafter." We do not wish to -imply that we have given here a full description of the army's relationship with property owners in the Philippines. - It is probably a fact that in the vast majority of cases the relationship has Ibeen completely or at least reasonably satisfactory to the owners involved. There are no doubt innumerable cases where the army has not acted arbitrarily, where the army has paid adequate rentals, where the army has expeditiously released property to its owner. But this cannot be accepted as an excuse for the condition against which we are protesting, and which does actually exist, as described, today-one year after the surrender of Japan. In probably no other country in the world with the exception of occupied enemy country does such a condition exist, with the American army occupying and holding forcibly and without adequate compensation the private property of individuals and organizations. The practice of doing so is absolutely contrary to the principles of the American Government. It is contrary to the traditional practice of the American army in the Philippines for the past 45 years. It is a practice that is not only completely wrong in and of itself but furthermore one that will inevitably injure the good name of the American army and American Government and People. It should be stopped immediately. I. I It's Manila's favorite... I. FEPTCO FAR EAST AND PACIFIC TRADING CO. A. SORIANO Y CIA. General Managers Banco Hipotecario Building, Manila I 11- -.c The American Chamber of Commerce Journal August, 1946 13

Page  14 Ii~ t te Pk;~~~ Po PHILIPPINE AIR (THE Philippine Air I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~In liki YOU are right i y do care about in the1 so n good for YOU. [ <<!, See their up-to-date TEl courteous, e c cent serv ce of t e r end 01 in ever etai in ever t nin to give you ~.~. ~. ~~~. ~:................ ~.~~...~............ ~.. ~~~..~ -.~ —...................... ~........~~.. ~~~.. ~~~......................:~~::~; ~~::~~.. ~..........................................:~~: ~. ~:~:~~:~...........~.;. ~~';''' ~...~~~~...~'~: ~~~~::...................~~''.......................::1::::1......................:.................~~. ~~..~..~ '..''~.' ''~ ''~~:~.. ~~.. ~~.. ~ ~ ~...'~~' ~~-~' ~~''~.:' ~~:: ~~::...'' ~~:~::~::~:.:::::1:: ~4 ~~-~................. ''.':.::. I 11 t 11 d I I I t, I 6 r AI II) r tI B] Freight Department TRADE AND COMMERCE BLDG. Tel. 2-72-67 Genei cit fice >., 1 2 naa _ —I 14 The American Chamber of Commerce Journal August, 1946 I T A

Page  15 I PI I I i I I I I I9 e IES, INC. L.... because ML.... because things that are iL Airport.... the the special care BEST SERVICE. )Y CIA. cagers Ri wne Cil Ffice I Makati Airport (Formerly Nielson) Tel. 5-16-91 1 2 I The American Chamber of Commerce Journal August, 1946 16

Page  16 Philippine Copra and Coconut Oil Agreement This Agreement, made as of August 8, 1946, by and between Commodity Credit Corporation, an Agency of the Government of the United States of America, and the Republic of the Philippines, hereinafter called the Republic. WITNESSETH: That in consideration of the mutual agreements herein contained the parties hereto agree as follows: 1. This Agreement shall be effective during the period August 8, 1946 to June 30, 1947, both dates inclusive. 2. During the term of this Agreement, Commodity Credit Corporati!on, or any persons, firms or. corporations designated by Commodity Credit Corporation (hereinafter called designees) will purchase and will have the exclusive right to purchase the entire exportable surplus of Philippine copra and coconut oil from all sellers in the Philippines, at the prices and upon the terms and conditions hereinafter set forth. (a) Price: Copra, fair merchantable, basis six per cent free fatty acid, one hundred and three dollars and fifty cents U.S. Currency ($103.50), per long ton of 2,240 pounds in bulk, free on board ocean carrier, Philippine ports. 'Premium for copra in bags, if required by buyer, to be agreed upon between buyer and seller. Coconut oil, basis six per cent free fatty acid, one per cent moisture and impurities, seven and one eighth cents U.S. Currency ($0.07 -1/8) per pound, free on board ocean carrier, Philippine ports. Commodity Credit Corporation and its designees shall have the right to purchase such copra and coconut oil from any seller upon a delivery basis other than free on board ocean carrier, Philippine ports, in which event proper adjustment of the terms and prices shall be made between Commodity Credit Corporation or its designees and the seller on the basis of the free on board prices stipulated herein. In the event that existing freight rates be changed materially, either party to this Agreement may request a reconsidera tion of the free on board prices of copra and coconut oil stipulated herein, for such modification of these prices as may be agreed upon by the contracting parties. (b) Weight and Analysis: In accordance with customary practices of the trade, certified net landed weights and analysis of official samples taken,on arrival at United States ports shall be final on shipments to the United States; certified net shipping weights and analysis of official shipping samples by a recognized chemist or surveyor in the United States, agreeable to buyer and seller, or by approved Manila laboratory shall be final on shipments to other destinations; on shipments of copra to other than United States destinations an allowance of two (2) percent on certified net shipping weights "resecada basis" shall be made by seller and the remainder to he considered final as to weight. (c) Payment: Payment shall be made by letter of credit for ninety five (95) percent of the purchase price against sight drafts accompanied by seller's invoice, on-board bills of lading, certificate of weights, consular invoice, and other customary shipping documents. Final settlement shall be made promptly after determination of final weights and analysis in accordance with Paragraph 2 (b) above. (b) Taxes: The seller shall pay all taxes including export taxls or other fees and charges, imposed on the products while in the Philippines; or imposed because of the exportation of the products from the Philippines; and the Republic agrees that no such taxes, fees or charges will be collected from the Commodity Credit Corporation or its designees. (e) Rules Governing: Individual contracts covering copra or coconut oil purchased or sold pursuant to this Agreement shall be gov erned by the Rules of the National Institute of Oilseed Products, except to the textent they may conflict with the terms of this Agreement. 3. Commodity Credit Corporation agrees that it will use its best efforts to expedite the purchase and exportation of copra and coconut oil which it has agreed to purchase under this Agreement, and that, in returning to private hands the importation of copra and coconut oil into the United States, it will use its best efforts to expedite the movement by private importers acting as agents or designees of the Commodity Credit Corporation. 4. Commodity Credit Corporation agrees to continue using its best efforts to make available and facilitate the procurement of copra bags, industrial supplies and other material required for the rehabilitation of the Philippine copra industry, and to provide shipping space and facilitate the transportation of copra from the Philippines to the United States. 5. The Republic agrees immediately to establish and maintain during the herm of this Agreement an export restriction on copra and coconut oil, limiting the export of these products to the United States for the Commodity Credit Corporation, or to its designees and consignees in the United States or other countries. 6. The Republic agrees that it will use its best efforts to cause the maximum quantity of copra and coconut oil which Commodity Credit Corporation has agreed to purchase under this Agreement, to be produced and exported under the terms of this Agreement. To this end the Republic agrees that it will not impose any restriction upon the exportation of copra or coconut oil to the United States for the Commodity Credit Corporation, or to its designees and consignees in the United States or other countries; and that it will render to Commodity Credit Corporation all reasonable cooperation and assistance. 7. The Republic agrees that it will use its best efforts to insure that the exporters will fully comply with all the terms and conditions of this Agreement, and that the exporters will deliver copra and coconut oil of the quality stipulated herein. 8. All doubts and difficulties under this Agreement will be settled between the Government of the Republic of the Philippines and the Government of the United States of (Continued on opposite page) 16 The American Chamber of Commerce Journal August. 1946

Page  17 News and Notes Kenneth B. Day, vice-president and general manager of the Philippine Refining Co., left by airplane for the States on August 7th. F. L. Worcester has recently jointed the staff as assistant general manager, and remains in the Philippines. Other staff members in the Philippines are Cleve Calloway, Manila manager; Cyrus Padgett, Cebu manager; C. E. McAdam, mill superintendent; Hans von Aalten, refinery superintendent; W. H. Jones, sales executive; H. L. Robertson, office manager. Offices of Warner, Barnes & Co. are at the 3rd floor of the Soriano Bldg. Colonel Frank Hodsoll who is also president of the Manila Chamber of Commerce, continues as managing director of the company. V. H. Maisfield, general manager, is due in Manila on August 12th. Of the managers, George Bridgeford and J. F. Bond are in Manila, and Frank Leyshon is on leave. During July, the company lost Larry J. Crichton, accountant, who died after a brief illness on July 18th. Other members of the local staff are S. Craig (textiles), J. Jamieson (Insurance), A. K. Neville (mining), and E. K. Bramwell (accounts). J. S. Peterson with headquarters in Baruio is in charge of Benguet Consolidated operations in the Philippines. Other members of the staff in Baguio are W. L. Carter, H. W. Burton, W. Hamn, J. Dans, C. L. Elliott, G. Ritter, J. C. Thompson, R. I. McLoughlin, J. B. Sehorn, L. W. Lennox, D. C. Headley, R. Bonnemort, E. A. Lenze. In the Manila office (Myers Bldg.) are R. L. Bary (purchasing agent) and D. L. Albert (assistant secretary and treasurer). With the Consolidated Mines at Ma(Continued on page 2,6) America. Provisions respecting prices are subject to review on the initiative of either Government at any time during the life of this Agreement. IN WITNESS WHEREOF, each of the parties hereto has caused this instrument to be executed by a duly authorized representative as of August 8, 1946. THE REPUBLIC OF THE PHILIPPINES By (Sgd.) EMILIO ABELLO COMMODITY CREDIT CORPORATION By (Sgd.) PAUL R. HARMEL I ~!!k.:..':.':i::!!......~.~.~. ~!ii:! '::: ': Y!:! 9'''.''' ii:ii;?ii?:'.~..:~ * A.!\iii... "'.::i~ IS:~:~~~ ~~~~; ~...........;.;.I.I.....:....;.......... ~~~~~~~~~~~~~~-~-~;-;~;-~:.~.~.~.~.~.~.~~ ~.~.~.~~ ~.~.~.~.~.~........:; JJiiji:-o~~;i ~~~~~ ,ctSL3%)Ip =Y-~ ~~ rucsa3pClic -~ -i ~RICEf~i ~~~?dlR_ vz;s ''''':;:ZZn r ~~T W ~wmecg Jiiiii.-~sc` rzl;sFF1-tS.;PiEf - YLdj4 -1 * This tire is designed for heavy duty truck operations, for both city and highway use. Made by B. F. Goodrich, world famous maker of rubber products, it has many improvements. The new design helps it run cooler. The thick, tough rubber tread gives long wear. The tread design gives safety. The strong tire body makes it ideal for truck operations. And the long-wearing qualities save you money. See us about B. F. Goodrich Truck Tires. Goodrich International Rubber Co. 2738 RIZAL AVE. EXT.-MANILA, P. I. The American Chamber of Commerce Journal August, 1946 17

Page  18 Philippine Abaca Fiber Agreement This Agreement, 'made as of August 8, 1946, by and between Reconstruction Finance Corporation, a corporate agency of the Government of the United States of America, and the Republic of the Philippines, hereinafter called the Republic, WITNESSETH: That in consideration of the mutual agreements herein contained the parties hereto agree as follows: 1. This Agreement shall be effective for the period August 8, 1946 to June 30, 1947, both dates inclusives. 2. During the period of this Agreement Reconstruction Finance Corporation -or any other agency of the Government of the United States of America will purchase. and will 4. All the said grades of abaca fiber shall be as defined in Fiber Inspection Administrative Order No. 4 (Revised Dec. 1, 1939) of the Fiber Inspection Service of the Department of Agriculture and Commerce of the Commonwealth of the Philippines entitled "Determination and description of the official standards for the various commercial grades of certain Philippine fibers", and shall otherwise conform to the quality and standards set forth in said Order. The fiber shall be marked and baled for export in a careful manner in accordance with standard commercial practice, in bales weighing approximately 126.5 kilograms (278.88 pounds) net, and of cubic measurement not exceeding 13 cubic feet, or as otherwise acceptable to Reconstruction Finance Corporation. have the exclus the entire expo] fiber (fiber of grades descrit hereof, from a ippintes, at the terms and cone forth. 3. The pric gradles of abaa pound United on board ocea ports, shall be CD E I S-2 J-1 S-3 G H J-2 K L-l L-2 M-1 M-2 OTYW Decco 1 Decco 2 Decco 8 Decco 4 Decco T imve right to purchase, 5. The terms of payment shall be rtable surplus of abaca arranged with the individual sellers Musa Textilis) of the generally according to the following )ed in Paragraph 3 pattern. Reconstruction Finance Corl11 sellers in the Phil- poration will pay no less than eighty prices and upon the percent of the purchase price by ditions hereinafter set means of letters of credit opened by Reconstruction Finance Corporation in favor of the seller authorizing es for the respective sight drafts on a New York bank Sa fiber in cents per when accompanied by commercial States Currency, free invoices, clean on board bills of n carrier, Philippine lading drawn to the order of Reconas follows: struction Finance Corporation, and DAVAO NON-DAVAO other customary documents as direct15-3/4 15-3/4 ed iby Reconstruction Finance Cor14-3/8 14-3/8 poration. Settlement of the balance 13-1/2 13-1/2 of the purchase price or any adjust13-1/8 12-1/8 12-1/4 10-3/4 ment thereof shall be made to the 12 10 seller after the fiber has arrived at 101/9 8 United States port of entry and has 10-.1/2 18-3/8 7 6 been weighed and inspected. The 9 7 fiber shall be invoiced on the basis 6-7/8 5 of 273 pound bales, when baled in 4-1/2 3-5/8 41/8 3-1/4 accordance with standard commercial 3-3/4 2-7/8 practice, or net shipping weights 3-1/2 2-1/2 less 2% when otherwise baled; but 1-3/8 1-3/8 the price of all fiber, however baled, 12-5/8 shall be based on net landed weights. 11-1/4 9 6. The seller shall pay all in7 spection fees, lighterage fees, wharf1-3/8 n o- la- V 4-v-,o inftornl rY'vTjn fllQ 'S.YP.Q shall bear all risk, costs and liability incurred in connection with the fiber up to the time it has been loaded on board the ocean carrier. 7. Reconstruction Finance, Corporation shall have the right to purchase abaca fiber from any seller upon a delivery basis other than free on board ocean carrier Philippine ports, in which event proper adjustment of the terms and prices shall be made between Reconstruction Finance Corporation and the seller on the basis of the free on board prices stipulated herein. 8. The Republic agrees immediately to establish and maintain during the term of this Agreement an export restriction on abaca, limiting the export of this product to the United States for the Reconstruction Finance Corporation, or to its designees and consignees in the United States or 'other countries. 9. The Republic agrees that it will use its best efforts to cause the maximum quantity of abaca fiber, which Reconstruction Finance Corporation has agreed to purchase under this Agreement, to be produced and exported under the terms of this Agreement. To this end the Republic agrees that it will not impose any restrictions upon the exportation of abaca fiber to the United States for the Reconstruction Finance Corporation, or to its designees and consignees in the United States or other countries; and that it will render to Reconstruction Finance Corporation all reasonable cooperation and assistance. 10. The Republic agrees that if the Republic finds it advisable, during the period of this Agreement, it will establish and enforce price ceilings covering the sale of abaca fiber to local manufacturers, which price ceilings shall not be higher than the free on board prices for the various grades stipulated herein, subject to proper adjustment for other terms of delivery. The Republic further agrees that it will use its best efforts to prevent the cordage mills in the Philippines from accumulating a supply of abaca fiber in excess of three times their current monthly consumption of fiber and that it will require the mills to report on the (Continued on page 24) The American Chamber of Commerce Journal August, 1946 In the event that existing freight rates be changed materially, either party to this Agreement may request a reconsideration of the free on board prices stipulated herein for such modification of these prices as may be agreed upon between the contracting parties. Ugz CLCwLV- 111LIcI lcal 1 v tK' uUnw export taxes and all other taxes, fees and charges of whatsoever nature imposed on the fiber or in connection with the exportation thereof from the Philippines; and the Republic agrees that no such taxes, fees or charges shall be collected from Reconstruction Finance Corporation. The seller 18

Page  19 Mining News and Notes Honors for being thle first mine in the Philippines to resume production go to Consolidated Mines, Masinloc, Zambales. After a brief stoppage to operations due to labor difficulties, the mining and shipping of chrome ore has been resumed. Total shipments to July 31st amounted to 10,000 tons. Benguet Consolidated hopes to get back on a gold producing basis by the middle of 1947. Enough machinery has been salvaged to construct a thousand ton mill. The July typhoon, which caused considerable damage and seriously disrupted transportation facilities between Baguio and the lowlands, set back progress on the mill by 2 months, it was recently reported. Printed reports for the period 1941-1945 have recently been released by Warnler, Barnes & Co., Ltd.; general managers for the International Engineering Corp., which operates Antamok Goldfields Mining Co., IXL Mining Co., Mambulao Consolidated Mining Co., Masbate Consolidated Mining Co., and North Camarines Gold Mining Co., all of which corporations qualify for war damage compensation. Brief excerpts from these reports follow: Antamok-With the exception of the church, 2 fuel oil storage tanks, and a lime storage tank, the surface properties must be called a total loss. Underground caving has taken place near the entrances to the 490 level and the 1170 Level. Some 2,200 feet of the main haulage adit is passable. As of Dec. 31, 1945 the company reported assets of P1,370,415.69 (P360,772.29 bleing cash in banks) and liabilities of P339,800.32. Capital issues have amounted to 27,500,000 shares of P0.10 each, totalling P2,750,000. A dividend of 1/2 centavo per share was declared at the directors' meeting of Nov. 26, 1941; but the outbreak of hostilities prevented the actual payment. This dividend has remained a liability of the company to stockholders of record on Dec. 5, 1941. All stock sales made after that date should be on an "ex dividend" basis. XL - When inspected after liberation in 1945, the surface plant was found to be a total loss. Some heavy equipment remained but it was all in deplorable condition. All buildings The American Chamber of Commerce Journal August, 1946 with the exception of the church, convent house, master mechanic's dwelling, and some Filipino staff quarters had disappeared. Some of the machinery has since been located on the island of Panay and this is now recovered. 23 bars of bullion, hidden for 3 years in Iloilo, have also been recovered and shipped to the San Francisco 'mint. The mine appears to be in fair condition, in spite of flooded areas, and capable of rehabilitation. Remaining ore reserves are estimated to have a value of P3,333,266. It will not be necessary to incur the expense of constructing a new mill if these ore reserves can be milled at the nearby plant of Masbate Consolidated. C ertain metallurgical problems must first be solved before final decision can be made. As of Dec. 31, 1945, the company reported current assets of P482,904.50 (P108,212.24 being cash in banks) and liabilities of P258,203.61. Capital issues have amounted to 15,000,000 shares at P0.10 each, totalling P1,500,000. Masbcate Consolidated - In J'une 1945 it was learned that the greater part of the plant was still in existence, having been saved by the fact that the Japanese selected the place for thleir headquarters. For this reason, there can be hope of resuming production in the not too distant future. It is estimated that the 5,407,000 tons of ore reserves are worth approximately P28,926,000. Other mining companies in the area whose mills have been destroyed may be disposed to consider an offer by this company to mill their ores rather than rebuild their own plants. With some changes in the plant this custom milling can be satisfactorily handled. As of Dec. 31, 1945, the company reported current assets of P58,568.80 and liabilities of P1,060,448.60. Capital issues have amounted to 50,000,000 shares at P0.10 leach, totalling P5,000,000. Mambulao Consolidated- After the Japanese occupied the area, the company's effects began to disappear. In 1944, practically nothing remained, all machinery, electrical equipment, spare parts, etc., having been removed the Japanese or by local looters. As of Dec. 31, 1945, the company reported current assets of P44,601.62 and liabilities of P171,001.48. Capital issues have amounted to 9,479,185 shares at P0.10 each, totalling P947,918.50. North Camarines - Just before the (Continued on page 25) I -1 I L_ ICI~ -13iia m m 1 — MARQUES n DE m1 i -4 Sole Importers FEPTCO (Far East & Pacific Trading Co.) A. SORIANO Y CIA. General Managers BANCO HIPOTECARIO BLDG. TEL. 2-79-61 MANILA 19

Page  20 Customs Administrative Order No. 18 providing Regulations For the free entry of United States Articles into the Philippines. Par. I. For the purpose of carrying out the provisions of the United States Public Law 371, known as the "Philippine Trade Act of 1946", particularly those relating to the free entry of United States articles into the Philippines, the following regulations are here by promulgated for the information and guidance of all concerned. Par. II. The pertinent provisions of the Philippine Trade Act of 1946 are hereunder quoted: "Section 2-(a) (2)-The term "United States", when used in a geographical sense, means the States, the District of Clolumbla, the territories of Alaska and Hawaii, and Puerto Rico." "Section 2-(a) (5)-The term "United States article" means an article which is the product of the United States, unless, in the case of an article produced with the use of materials imported into the United States' from any foreign country (except the Philippines) the aggregate value of such imported materials at the time of im portation into the United States was more than twenty per centum of the value of the article imported into the Philippines, the value of such article to be determined in accordance with, and as of the time provided by, the customs laws of the Philippines in effect at the time of importation lof such article." "Section 311. Free Entry of United States Articles. During the period from the day after the date of the enactment of this Act to July 3, 1954, both dates inclusive, United Statcs articles, entered, or withdrawn from warehouse in the Philippines for consumption. shall be admitted free of ordinary customs duty." Par. III. Conformably with the above-cited provisions of law, the certificate of origin to be shown on commercial invoices covering United States articles shipped to the Philippines shall be subscribed and sworn to by the manufacturer, seller, or exporter of the articles or by a duly authorized agent of such manufacturer, seller, or exporter before a collector or deputy collector of customs in the United States, or his duly authorized representative, but the collector of customs at the post of entry in the Philippines may require supplementary evidence if he believes that it is necessary. The said certificate of origin shall be in the following form: Declaration and Oath "I the undersigned, do hereby solemly and truly declare that the above described articles are the products of the United States, or produced with the use of materials imported into the United States from foreign country (except the Philippines) the aggregate value of such imported materials at the time of importation into the United States does not exceed twenty per centum (20%) of the value of the articles imported into the Philippines." (Sgd).................. Manufacturer, seller or exporter Certificate of Collector of Customs or Authorized Representative "I hereby certify that the foregoing statement was subscribed and sworn to before me at the port and on the date hereinafter indicated. I further certify that I have investigated the foregoing statements, and am satisfied that they are correct; that said articles are the products of the United States, or produced with the use of materials imported into the United States from foreign country (except the Philippines) the aggregate value of such imported materials at the time of importation into the United States does not exceed twenty per centum (20%) of the value of the articles imported into the Philippines." Given under my hand and official seal at the port of............ this...... day of............. 19.... (Sgd).................. Collector of Customs or Authorized Representative Par. IV. In places where there are no Collectors of Customs the Certificate of Customs, the Certificate of Origin may be issued by any government official duly designated for the purpose by the Collector of Cus toms of the customs district where thie exporter or shipper resides or has his place of business. Par. V. Consignments by freight or mail valued at twenty pesos (P20.00) or less, are not required to be accompanied by a Oertificate of Origin. Par. VI. All customs rules and regulations inconsistent with this Custtoms Administrative Order are hereby revoked. Par. VII. This Order shall be applicable to shipments of United States articles arriving beginning May 1, 1946. ALFREDO DE LEON Collector of Customs Dated - July 22, 1946 REPORT ON PHILIPPINE... (Continued from page 8),of the Philippine Milling Co., San Jose, Mindoro. Philippine Starch Sugar Co., Panay:.-b badly damaged; expects to combine with Santos-Lopez for the 1948 season. Central Sara-Ajuy, Panay: - badly damaged; no plans for immediate resumption of 'operations. Central Santos-Lopez, Panay: - badly damaged; no cane; planning to combine with Philippine Starch Sugar Co. for 1948 season. Victorias Milling Co., Negros Occ.: - badly damaged; plan to, combine with North Negros Sugar Co., Manapla, Negros Occ. Central Santa Aniceta, Negros Occ.: - badly damaged; little cane available. San Carlos Milling Co., Negros Occ.: - badly damaged; milling contracts expired in 1944; now negotiating new contracts. North Negros Sugar Co., Negros Occ.: - badly damaged; plan to consolidate with Victorias Milling Co. Ma-ao Sugar Central, Negros Occ.: - destroyed. Isabela Sugar Co., Negros Occ.: - practically destroyed; no cane. Binalbagan Estate, Negros Occ.: - badly damaged; no cane. Philippine Milling Co., San Jose, Mindoro: - mill in good condition; no cane because of airport construction; may transfer the mill to Pilar Sugar Central. Bogo-Medillin Milling Co., Cebu: - mill in good condition; all cane to be used for seed purposes this year. Central San Isidro, Negros Occ.: -mill in fair condition; insufficient cane. Lopez Sugar Central Mill Co., Negros Occ.: - mill in fair condition; insufficient cane. Bacolod-Murcia Milling Co., Negros Occ.: - mill intact; insufficient cane. Pampanga Sugar Development Co., Pampanga: - mill intact; no transportation; no cane. Central Luzon Milling Co., Tarlac: - mill intact; transportation badly damaged; insufficient cane. 20 The American Chamber of Commerce Journal Auust. 1944

Page  21 I P= 0. E.S. & S. CO., INC. 230 David, (2nd Floor Peoples Bank Bldg.) Manila SIMPLEX: Payroll Clocks, Time-Stamps, Watchman's Clocks ORIGINAL-ODHNER: Calculating Machines, Adding Machines SCHWAB: Safes, Vaults INTERIOR STEEL EQUIPMENT CO.: Storage Cabinets, Lockers, Steel-Shelving, Shop-Equipment SAFEGUARD: Checkwriters DITTO: Duplicating Machines, Supplies OGLE'S: Aluminum Chairs THE AMERICAN PERFORATOR CO.: PerforatingDating Machines COPY-KING: Phostatic Copying Machines PROTECTO: Insulated Cash Boxes BRANDT: Coin Counter & Packager, Automatic Cashiers SCRIPTO: Automatic Pencils KOH-I-NOOR: Drawing Pencils CRESCENT PRODUCTS: Ink, Paste, Mucilage, etc. WARREN-KNIGHT: Transits, Levels KUKER-RANKEN: Hand Levels CHICAGO STEEL TAPES AINSWORTH: Pocket Transits THE SPECIALTY DEVICE COMPANY: Wellboring Outfits "Repair and Service of all,type of office machines, safes, steel furniture." WE SPECIALIZE IN OFFICE EQUIPMENT AND ENGINEERING INSTRUMENTS Demand TRIBUNO America's outstanding VERMOUTH.i! For Perfect Cocktails SOLE IMPORTE'RS: FEPTCO FAR EAST AND PACIFIC TRADING CO. A. SORIANO Y CIA. General Managers Banco Hipotecario Bldg., Manila - ~-~~~~~~~~~~~~~~~~~~~~. -.1 FOR FACTS AND INFORMATION READ THE AMERICAN CHAMBER OF COMMERCE JOURNAL By the Copy- 50 centavos By Subscription - 12 copies for P 5.00 in the Philippines tio0.00 in the United States I11I I - The American Chamber of Commerce Journal August, 1946 21

Page  22 (Continued from page 7) process of being released to the Bu- ".......' '... reau of Aeronautics of the Philip- pine Goverment, which is preparing ' ' to maintain and improve them in the' " interest of civilian avaiation. In Manila, each of the two operating companies maintains its own airport, PAL having secured a lo.ng term... lease on Makati Airport (formerly Nielson) and FEATI having taken over Grace Park. Both companies are making considerable investments in constructing modern, up-to-date terminals for the convenience of passengers, for the efficient handling of traffic, and for the repair and maintenance of equipment. FEATI's pr6blems were complicated by the lack of adequate runways at Grac ' Park and found it necessary to em- bark on a program of constructing 3 concrete runways which will absorb by far the most part of a half million Prepsaing Grace Park for pesos. Both companies rely on the serviceable and efficient C-47 army transport plane for local traffic. FEATI is operating a fleet of 23 units of this type, while PAL has 14 of the same. All of the planes were secured through the oi-ice of the Foreign Liquidation Commissioner. It is the goal of both companies to equip all passenger planes with de luxe seats and the necessary equipment has been ordered; but, so far only 3 plans (FEATI) have this equipment ins- -:. '.::.:::.::::;'".:~":".............:-____ tailed. In all the others, the pass-::. engers still have to use the original metal benches. Both companies have. been negotiating in the States for the purchase of C-54 type planes, which are propelled by four mouurs and are capable of accomodating 40 passengers, and FEATI has recently an. nounced the definite purcnase of 2 of them. The purchase of these larger planes constitutes part of the expansion program of both companies which will lead them into foreign fields. Hanfgar at Makati AIR TRANSPORT POST-WAR RECORDS concrete r'ua'?/R A irpor t (Courtesy of the Burea of Aeronautics) _ -- Paid MonthPass Pass. 1945 Nov. 1,381 Dec. 5,563 1946 Jan. 10,201 Feb. 11,828 Mar. 17,362 Apr. 18,249 May 25,951 June 23,740 Totals - 114,275 Free Hours Pass. Flown - 163:55 - 471:30 36 132 96 75 88 427 1,173:31 2,025:16 3,106:12 3,052:55 3,539:14 3,489:05 17,021:28 Miles Flown 21,260 70,740 176,568 308,183 458,040 443,567 530,031 519,204 2,527,593 Pass. Mail Express Miles Ibs. Ibs. 424,887 1,209,595 2,265,745 2,943,871 4,002,305 3,823,923 5,269,195 4,669,497 24,609,018 107 855 4,809 8,873 17,676 13,641 15,688 61,649 13,028 189,096 459,226 1,138,992 1,185,080 1,499,250 1,465,231 1,248,920 7,198,823 - - —c — --.. _ _.. _..:.r 22 The American Chamber of Commerce Journal August, 1946

Page  23 Both of the local companies have drawn heavily 'on the American armed forces for their pilot personnel, thereby securing well trained pilots with long experience in flying the C-47. Of the 47 pilots employed by both companies (21 by FEATI and 26 by PAL), all but one are young American ex-lofficers. The exception is Captain Roberto Lim, son of General Lim, who resigned from the Philippine army to join the flying staff of FEATI. 38 of the American pilots came from the American army, 6 from the navy, and 2 from the marine corps. In age they range from 22 years to 30 years, with an average age of 25 years. All of them have well over 1,000 hours of flying in their records, several of them exceeding the 2,000 hour mark. W. L. Hurd, Jr. chief pilot of PAL. (formerly a lieutenant-colonel in the army air corps) probably leads the entire group with 2,900 hours to his credit. Twenty-six states are represented in this group of Almerican flyers. Californila leads in number with 6, andi Texas is a close second with 5. With justifiable pride both local air transport companies can join in pointing to the continuation after the war of a safety record established through years of careful operation before war-not a person has been killed in regular comnmercial scheduled operations in the Philippines. This is a record that the Philippines can well 'be proud of. It is a tribute to careful selection of personnel and equipment and to operation policies that place safety first. Join The ESCODA MEMORIAL FUND (See inside Back Cover) Subscribe to the JOURNAL Bright-Prospects for Lands Adjoining Manila! Especially Already Improved Lands Such As Ours Three of the biggest U. S. Oil Enterprises are among the latest to come to these latitudes for business. RUSH! INVESTORS - HOME-LOVERS - ONLY ON LY) We sell beautiful homesites from 300 to P4.50 5,000 sq. m. payable 20% down & the balance and up in 60 monthly installments. Per sq. m. MAGDALENA ESTATE, Incorporated 211 Consolidated Investments Bldg. Plaza Goiti, Manila I~~~~~~~~~~~~~~~~~~~~~~~~~ I I Ne v e r I. A, -.. I a Flat / Drink withI "Its Sparkle Lasts" ROYAL SOFT DRINKS bottled by SAN MIGUEL BREWERY I.~~~~~~~~I 6. The American Chamber of Commerce Journal August, 1946 23

Page  24 PHILIPPINE ABACA... (Continued from page 18) first day of each calendar month beginning September 1, 1946, their inventories at the beginning of the preceding month and their inventories at the end of the month. 11. The Republic agrees that during the period of this Agreement, National Abaca & Other Fibers Corporation (hereinafter called; NAFCO), a corporate agency of the Republic, will enter into a contract with Reconstruction Finance Corporation whereunder NAFCO will agree that it will sell and will cause to be sold to Reconstruction Finance Corporation, through NAFCO or any exporter under contract to sell abaca fiber to Reconstruction Finance Corporation, upon the terms and conditions stipulated herein, all of the abaca fiber derived from the following sources: (a) Produced upon lands formerly owned, leased or otherwise operated or controlled by Japanese individually or through corporations the majority of the issued and outstanding stock of which was owned or controlled by Japanese and over which lands NAFCO, the Republic or any of its subdivisions, agencies or instrumentalities are now exercising or may hereafter exercise control through the appointment of administrators or otherwise.; (b) Produced upon lands now or hereafter owned, leased or otherwise operated or controlled by NAFCO, the Republic and any of its subdivisions, agencies and instrumentalities; (c) Produced upon lands owned, leased or otherwise operated or controlled by corporations, the majority of whose issued and outstanding stock is now owned or controlled or which may hereafter be owned or controlled by NAFCO, the Republic and any of its subdivisions, agencies and instrumentalities; (d) Acquired from any sellers in the Philippines by NAFCO, the Republic and by any of its sub divisions, agencies and instrumentalities authorized to purchase abaca fiber. All of such fiber will be clearly marked bv an appropriate symbol identifying it as fiber derived from the aforesaid sources. 12. Reconstruction Finance Corporation agrees that upon entering into the purchase contract with NAFCO, it will advance to NAFCO, for the purpose of rehabilitating the abaca plantations in Davao formerly owned, leased or otherwise operated or controlled by Japanese individually or through corporation the majority of the issued and outstanding stock of which was owned or controlled by Japanese, the sum of $2,000,000, upon the following terms and conditions to which the Republic agrees: (a) The Republic will guarantee the repayment of the advance in full upon the terms stipulated herein. (b) Until the advance is fully repaid, Reconstruction Finance Corporation may deduct and retain, as partial payment of said advance, 10% of the purchase price of all abaca fiber sold to Reconstruction Finance Corporation pursuant to the aforesaid contract with NAFCO. (c) The unliquidated balance of the advance will be paid by NAFCO or the Republic at the earlier of the two following dates: July 1, 1947, or at the time that the U. S. Government or any of its agencies extends a loan to the Republic or any of its agencies, partly or wholly for the purpose of repaying the advance. (d) In the event that the advance is not fully liquidated by July 1, 1947, Reconstruction Finance Corporation will have the option to demand from NAFCO and the Republic, the payment, in cash, of the unliquidated balance of the advance or to postpone payment of all or any part thereof. In the event of such postponement, Reconstruction Finance Corporation shall have the right, during the period of postponement, to continue to purchase all abaca fiber derived from the sources described in Paragraph II hereof, at prices generally prevailing at the time of such purchases on sales of Philippine abaca fiber to purchasers in the United States; and, until the advance is fully repaid, Recon struction Finance Corporation shall have the right to deduct and retain, as partial payment of the advance, 10% of the purchase price of all such a;baca fiber sold to Reconstruction Finance Corporation. (e) Prior to July 1, 1947, no interest will be charged on said ad vance, but thereafter, interest at 3% per annum will be payable on any unliquidated balances. 13. All doubts and difficulties under this Agreement will be settled between the Government of the Republic of the Philippines and the Government of the United States of America. Provisions respecting prices are subject to review on the initiative of either Government at any time during the life of this Agreement. IN WITNESS WHEREOF, each of the parties has caused this instrument to be executed by a duly authorized representative as of August 8, 1946. THE REPUBLIC OF THE PHILIPPINES By (Sgd.) EMILIO ABELLO RECONSTRUCTION CORPORATION By FINANCE (Sgd.) PAUL R. HARMEL THE PHILIPPINE WAR... Continued from page 5) Later, in Manila, he was appointed Justice of the Court of Appeals. In 1945 Mr. Delgado went again to the United States as the Philippine Commonwealth delegate to the Corrmittee of Jurists' which met at Washington, D.C. and prepared a draft of the. Statute for the International Court of Justice of the United Nations. Mr. Delgado was one of the Philippine delegates to UNCIO,at San Francisco, and was the Representative of the Commonwealth Government to the Preparatory Commission of the United Nations, and served as Repporteur of Commission I. Counsel and director of many important private corporations in the Philippines and a member of a number of scientific and legal societies as well as social clubs, Mr. Delgado is a P.G.M. of the Grand Lodge of the Philippines, a Shriner and a 33 -degree Scottish Rite Mason of the Southern Jurisdiction of the United States. Mr. Delgado is the present President of the Philippine Bar Association and la Director of the International Bar Association. He was the first Filipino admitted to active membership of the American Bar Association. 24 The American Chamber of Commerce Journal August, 1946

Page  25 Join The ESCODA MEMORIAL FUND KODAK PHILIPPINES... (Continued from poae 9),before the plant opened for business, each member emerging from the training period a skilled worker. Heading Kodak Philippines is W. Lane, president, who has long been associated with Eastman Kodak operations in the Orient. Mr. Lane is also in charge of Eastman operations in the Far East, with headquarters in Rochester, N. Y. In immediate control of local operations is L. E. Snell, treasurer and acting managelr. Mr. Snell comes to Manila from the Honolulu office and plans to make his home here more or less permanently, Mrs. Snell having recently joined him. I, Caitili is assistant manager in the Philippines and Arthur C. Ables is the manager of the Photo-finishing department. MINING NEWS AND... (Continued from page 19) arrival of the Japanese, the manager (the late Mr. D. M. Young) buried 17 bars of bullion in a place that he considered reasonably safe. However the bars have not yet been recovered. Through the years of Japanese occupations, the company's effects practically disappeared. The few machinery items found intact in 1945 were badly oxidized as a result of exposure. The underground workings of the mine are largely flooded. Because of the firm nature of the ground, it is reasonable to suppose that a good many of the tunnels will be found usable. As of Dec. 31, 1945, the company reported current assists of P31,112.91 and liabilities of P759,950.49. Capital issues have amounted to 9,958,017 shares at P0.10 each, totalling P995,801.70. UNION PLUMBING COMPANY -PLUMBING CONTRACTORS Installations-Repairs-Supplies Office: 1883-B Azcarraga (Near Old Bilibid Gate) "Our staff of Experienced Plumbers are at your disposal to give you the best Plumbing Service" I. C Lk= - - I Announcing the appointment of The FAR EAST AMERICAN COMM'L. CO., INC. as Exclusive Purchasing Agents in the Philippines for The AMERICAN IMPORT ICOMPANY of San Francisco, California INTERESTED IN PHILIPPINE NATIVE PRODUCTS and RAW MATERIALS Send your offers to 3rd Floor YUTIVO BUILDING Dasmarifias, Manila 11 Tton1qt M.u is to ask for FOUR ROSES Bottled in the U. S. A. Fine American Whiskey * Preferred throughout the Americas Sole Importers FEPTCO (FAR EAST & PACIFIC TRADING CO.) A. SORIANO y Cia. General Managers Banco Hipotecario Bldg. - Tel. 2-79-61 - Manila I The American Chamber of Commerce Journal August, 1946 25

Page  26 PHILIPPINE COAL... (Continued from page 18) savoir faire; and continued operating it until military necessity made it advisable for them to discontinue and get out of there. When that time came (running true to form) they proceeded to destroy as much of the property as possible. All buildings were burned, the pier was completely destroyed, as was also the case with the machinery and equipment. But the coal remains and the confidence of the owners is unimpaired. A recent survey disclosed that although the Japs did a thorough job of wrecking the equipment of the mine, they did leave behind a considerable amount of coal ready for shipment, which when sold will help materially in financing the cleaning up of the mine. Coal was first discovered in the Philippines in 1827. Before the end of the century every important coal bed had been located and surveyed to some extent. The first discovery was on the island of Cebu, but probably the first important attempt to develope a coal mine was in 1874. In that year the La Paz Association was formed to exploit coal fields located in Bacon, Sorsogon; but the attempt was not successful, probably because of lack of capital in the opinion of an American engineer who examined the remains of the project soon after American occupation. When the American army decided on Batan Island as the scene of its coal mining venture, the selection was made in preference to two other favorable sites-one in Zamboanga and one in Cebu. Still other fields have from time to time attracted attention. Walter D. Smith, writing in 1921, listed five favorable localities-Alabat Island (off the east coast of Tayabas province), Dinagat Island (off the north coast of Surigao province), Escalante Island (off the coast of Nlegros Island), Catanduanes (off the east coast of Albay), and Gatbo in Sorsogon province. With the import supply of coal cut off more or less permanently, it may well prove advisable for the Philippines to reexamine more carefully than ever before the possibility of exploiting profitably her own coal resources for the satisfaction of her requirements. NEWS AND NOTES... (Continued from page 17) sinloc, Zambales are J. Smeddle and L. Blinzler. Judge Hausermann, Francis Hausermann, and Miss Rose McKee are all in the States, with no plans for early return to the Philippines. A. D. Calhoun and C. V. Grant of the National City Bank are temporarily in the States. F. C Bailey is expected to join the local staff in the near future. The Shell Company of Philippine Islands, Limited is the new name of the Asiatic Petroleum Co. (P.I.) Ltd. Permanent offices are at the 2nd and 3rd floors, Hongkong & Shanghai Bank Bldg., Manila. R. C. A. Communication Inc. announces that W. B. Johnston, accountant, has now taken over from Jack Sayre who will leave for the States shortly. Officers of Alhambra Cigar & Cigarette Mfg. Co. are A. P. Kuenzlie, President; H. A. Streiff, vice-president; W. Eggman, treasurer-manager. Other members of In Every Month the JOURNAL brings you important statistics and informational articles Subscribe Now! 15.00 for 12 issues I I m The Last Tribute Should Be The Finest U. S. MADE METAL CASKETS Now Available DAY AND NIGHT SERVICE I 4ww~ L LIC-.Al-e 4e I AIil 6. S Ovop At r i 1701-1705 Azcarraga Tel. 2-87-06 26 The American Chamber of Commerce Journal August, 1946

Page  27 the staff on active duty are: - M. Ferrandez, F. Koller, S. Meili, C. Redinger, J. H. Reupke, E. Rupp, H. Sulzer, J. H. Wendt. Offices are at the factory, 31 Tayuman St., Tondo, Manila. H. P. Strickler, general manager of the Manila Cordage Co., returned to Manila on August 5th. Other members of the staff now in Manila are Herman D. Nichols, vicepresident and manager; C. A. Carter, vice-president, and E. J. Green, mill superintendent. Arnold Dewar, Far Eastern manager for West Coast Life Insurance Co., is now making Manila his office of operations. Walter E. Hebel, who has acted as resident secretary of the company since the opening cof the office last December, is returning to the States. Charles Hirst has returned to Manila as manager of American Factors, general imports and exports, with offices in the Wilson Bldg. Mrs. Minna Nantz is in chargle of textiles and sundries, and 0. G. McCoy handles building materials. American Factors, a newcomer to Manila, is an old and well-known Honolulu concern. In the Philippines, the company handles Hot Point electrical appliances, and other popular lines. With Aurelio Montinola as president and Cesar Zuluvta as vice-president, the Amon Trading Corporation has acquired the well-known business of M. Verlinden, together with his staff and most of his prewar agencies. Offices are at the 3rd floor, National City Bank Bldg. J. Jalbuena (C. E.) is sales manager for the corporation. Perry B. Jackson, formerly with H. E. Heacock Co., will arrive in Manila soon as the representative of Brown & Bigelow (Remembrance Advertising). The offices lof the Calamba Sugar Estate, Inc. are now located in the Regina Bldg., Room 324, according to a recent announcement by 0. G. C. Milne, general manager. Stuart Raab is the post-war manager of Walk-Over Shoe Store. M. J. Crick has resumed his familiar duties with the company. The stone occupies Nos. 19 and 21 Banquero (Regina Bldg.) just around the corner from its pre-war location. i __ I I THE AMERIC COMMERCE ] 1 L1 IS A QUALITY ADVERTISING MEDIUM Let us carry your message to a SELECT public every month. LOAD ee Sole Importe s FEPTCO (FAR EAST & PACIFIC TRADING CO.) A. SORIANO y Cia. General Managers Banco Hipotecario Bldg. - Tel. 2-79-61 - Manila The American Chamber of Commerce Journal August, 1946 L PLAZA LUNCH FRED. M. HARDEN PROPRIETOR 534 SALES Corner RAON, STA. CRUZ MANILA, P. I. * S O L E IMPORTER AND DISTRIBUTOR LUCKY STRIKE CIGARETTES HALF AND HALF SMOKING TOBACCO 27

Page  28 MINING STOCK PRICE AVERAGES BASED ON THE SALES OF A SELECTED LIST Prepared by A. C. HALL AND CO. Date Volume Average 1946 (Shares) January 2 120,000 38.80 3 410,000 40.15 4 66,000 40.15 5 60,000 40.50 7 54,000 42.20 8 144,000 44.85 9 183,000 45.90 10 62,000 46.45 11 61,000 46.60 12 109,000 45.85 14 65,000 44.15 15 30,000 43.80 16 43,000 44.50 17 13,000 44.00 18 30,000 43.05 19 50,000 42.65 21 120,000 42.15 22 11,000 42.50 " 23 18,000 42.50 24 70,000 41.40 25 183,000 40.20 26 87,000 40.70 28 130,000 40.70 29 135,000 40.65 30 89,000 41.80 31 105,000 41.30 February 1 230,000 42.15 2 188,000 42.60 4 157,000 43.00 5 52,000 42.15 6 148,000 44.50 7 80,000 44.45 8 97,000 44.45 9 71,000 44.45 11 89,000 44.45 12 22,000 43.55 13 78,000 43.25 14 42,000 43.05 15 99,000 43.75 16 80,000 43.70 18 113,000 43.80 " P 19 59,000 43.85 20 311,000 44.90 21 169,000 46.20 23 432,000 47.55 25 218,000 49.20 26 108,000 49.85 27 142,000 48.75 28 117,000 48.00 March 1 228,000 48.30 2 143,000 48.00 4 53,000 47.50 5 83,000 47.30 6 100,000 47.00 7 87,000 45.75 11 88,000 44.45 Date 1946 March,,.? 7~,,,,,,,, 7) 'j April,,,.,, April ~7 9~ '7,,,,,,,?,7,~,~.,.,,~,,.,,,.,.,,,,,,,,, May,,,, 7] rj,],,,, ),,,,,,f,,,,,,,,f, 12 13 14 18 19 20 21 22 23 25 26 27 28 29 30 1 2 3 4 5 6 8 9 10 11 12 13 15 16 17 20 24 25 26 27 29 30 2 3 4 6 7 8 9 10 11 13 14 15 16 17 18 20 21 22 23 Volume Average (Shares) 27,000 43.75 61,000 43.05 22,000 43.00 55,000 42.80 18,000 42.20 18,000 42.00 53,000 40.00 29,000 39.10 36,000 38.50 49,000 39.90 104,000 40.10 89,000 40.90 87,000 40.55 63,000 40.45 79,000 39.75 72,000 39.25 62,000 38.35 43,000 38.25 63,000 37.75 38,000 37.70 60,000 37.75 38,000 37.60 34,000 37.35 38,800 37.10 73,000 37.00 58,000 37.05 40,000 36.95 56,000 36.90 75,000 36.65 28,000 36.70 121,000 36.95 73,000 37.30 26,000 37.80 32,000 37.80 50,000 37.50 30,000 38.05 44,000 38,45 56,000 38.50 36,000 38.00 27,000 37.45 36,000 37.15 28,000 36.15 12,000 35.80 9,000 35.58 28,000 34.72 20,000 34.35 43,000 34.35 33,000 34.35 62,000 34.00 73,000 34.00 56,000 33.40 144,000 32.50 40,000 31.70 89,000 30.85 52,000 30.45 41,000 30.25 Date 1946 May,, t,,,,, June,,,,,, 7],,,t,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, July,,,,,t,,,,,,,t,,,,,,,,,,,t,,,,,t,,,,,,,,,,,,,,,,,, 24 25 27 29 31 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29 1 2 3 5 6 8 9 10 11 12 13 15 16 17 18 19 20 22 23 24 25 26 27 29 30 31 Volume Avegrage (Shares) 48,000 29.65 18,000 29.00 30,000 28.90 48,000 29.25 62,000 29.95 25,000 30.20 19,000 30.00 32,000 29.95 25,000 30.15 73,000 30.80 182,000 33.40 85,000 33.05 70,000 33.05 102,000 34.20 61,000 35.25 45,000 35.05 88,500 34.10 41,000 33.75 22,000 33.85 31,000 34.10 32,000 34.20 28,000 33.80 30,000 33.80 30,000 33.00 20,000 32.95 29,000 32.65 62,000 32.60 42,000 32.50 20,000 32.75 28,000 32.80 12,000 32.50 41,000 32.55 59,000 32.30 32,000 32.30 50,000 32.20 15,000 34.20 18,000 31.95 23,000 31.65 31,000 31.25 25,000 30.95 9,000 30.60 16,000 30.45 16,000 30.40 18,000 30.05 11,000 29.90 68,000 29.55 66,000 29.75 19,000 29.45 38,000 29.30 57,000 29.30 1,000 29.20 68,000 29.10 21,000 29.30 51,000 28.90 12,000 28.75 11,000 28.85 28 The American Chamber of Commerce Journal August, 1946

Page  1 JUL 1 - iJ4J THE AMERIC, COMMERCE Photo by Maglalang President Roxas and Mr. Vogelback shake hands on the largest deal in Philippine history September-October, 1946 Vol.. XXII, No. 6 (See page 13) 50 Centavos

Page  2 PHILIPPINE INDUSTRIAL EQUIPMENT CO. — PI ECO — SUPPLIERS OF MACHINERY * EQUIPMENT FOR * SUPPLIES il SUGAR CENTRALS POWER PLANTS CONSTRUCTION & -MINES FACTORIES GENERAL - SAWMILLS - BUILDINGS INDUSTRY 0 SERVICE * INSTALLATION * MAINTENANCE * REPAIRS ENGINEERING * DESIGN * APPLICATION * ESTIMATES PLANT & BODEGA: 71 TO 84 CALLE CRISTOBAL, PACO TEL. 8-62-01 EXECUTIVE & SALES OFFICE: BRANCH HIPOTECARIO BLDG. MANILA TEL. 2-89-36 CABLE ADDRESS "IECO" MANILA Every Month the JOURNAL brings you important statistics and informational articles Subscribe Now.' 15.00 for 12 issues C.o, C&A I B 6 rw &.... I[-'.. Sole Importers (FAR EAST & PACIFIC TRADING CO.) A. SORIANO y Cia. General Mianagers Banco Hipotecario Bldg. - Tel. 2-79-61 - Manila

Page  3 THE AMERIC ^ i F COMMERCE ]O? L Vol. XXII, No. 6 SEPTEMBER-OCTOBER, 1946 Table of Contents Surigao Consolidated Leads the Way........... 5 Escolta's Famous Retail Stores - Where Are They? 6 The Financial Rehabilitation Board by Eduardo A. Romualdez........................ 8 Americans in the Republic of the Philippines.... 9 Editorial: Equal Rights............................. 10 Treaty of General Relations Betweeen the United States of America and the Republic of the Philippines.................................. 12 Uncle Sam -Merchandiser - Retires.......... 13 Manita, Stock Exchange Report................. 14 Mining Stock Sales............................ 14 Manila Stock Price Averages by A. C. Hall and Co.. 14 Bibliography of Postwar Economic Problems of the Philippines by Pedro T. Drata.............. 18 Off the Press!............................... 19 News and Notes........................... 21 Biographical Encyclopedia of the World.......... 25 Statistics on Banking Resources, Liabilities, and Miscellaneous Activities.................... 28 Weekly Reports on Import and Export Bills...... 28 -., -!.. -I -- - I - I...7 _I-..- — %-, - -- P B. GABERMAN STOCK BROKER * MEMBER MANILA STOCK EXCHANGE 328 Dasmarias, Manila 328 Dasmarinas, Manila...w AMON TRADING CORPORATION Successors to M. VERLINDEN MANUFACTURER'S AGENTS IMPORTERS * EXPORTERS Offices: 308-310 AYALA BLDG. (Formerly National City Bank Bldg.) Sales Dept. 305-307 AYALA BLDG. Tel. 2-75-33 MANILA Exclusive Representatives In The Philippines, For The Following Manufacturers & Exporters: ATELIERS DE CONSTRUCTION MECANIQUE DE TIRLEMONT "Lafeuille" Cristallizer Pan AMTEXCO TRADING CO., S. A., (Belgium) Vitrified Ceramic Floor Tiles, Glazed Walled Tiles, Wall Papers, Marbles, Firearms SOCIETE ANONYME ETERNIT, (Belgium) Asbestos Cement Sheets, Asbestos Cement Pipes, "Eternit Granite" asbestos Sheets MAISON F. MATHIEU, S.A., (Belgium) Steel and Wire Products GLACES ET VERRES (GLAVER), S.A., (Belgium) Window Glass, Plate Glass, Sheet Glass, Figured Rolled Gass A. SHAW & SON, (Enrland) Glazier's Diamonds, Glass Cutting Tools AUGUST STENMAN A.B., (Sweden) Hardware TORSVIKS SAGVERKS AKTIEBOLAG, (Sweden) Wallboards "Hernit" THE ARMCO INTERNATIONAL CORP. (U.S.A.) Stainless Steel Products BIRKS-CRAWFORD LTD. (Canada) Preserves STE. VERRERIES D'EXTREME ORIENT (Indo-China) Glasswares and Bottles PARKER KALON CORPORATION (U.S.A.) Fastening Devices HOGANAS - BILLESHOLMS AKTIEBOLAG Refractory Products. STOCK & INDENTS - f.- _. _ The American Chamber of Commerce Journal September October, 1946 3

Page  4 I SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and EXCLUSIVE DISTRIBUTORS of HIGHEST-PURITY OXYGEN and ACETYLENE GASES NATIONAL "NATIONAL" CARBIDE * WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS of "SUPERFLAME" BOTTLED GAS and "TAPPAN" GAS-STOVES with Complete Installation and service Facilities OFFICE and PLANT: Byng St. Mandaluyong (near Mandaluyong Bridge and Shaw Blvd.) Tel. 8-72-80 I I 111 1 ~~L You'll Enjoy Them More Than Ever a Wchen You Have Your aaslrots e Almost any good snapshot is a better picture enlarged. Look over your Kodak snapshots and select your favorites. Bring in the negatives. We'lli be glad to show you how enlargements can be cropped for better composition-to give you whatever part of the picture you may want. You can depend upon the skill of our experts to give you beautiful enlargements-enlargements you will be proud to frame and display in your home. The KODAK Store When the sun goes down And the streetlights blink Then's the time For a friendly drink! Ii AX 86.8 Proof/-67S2% Grain Neatral Spirits Glenmore Distilleries Company Louisville, Kentucky A BETTER BLEND FOR BETTER DRINKS 0 Sole Importers FIPTCO (Far East & Pacific Trading Co.) A. SORIANO y CIA. General Managers Banco Hipotecario Bldg., 5th Floor-Manila-Tel. 2-79-61 138 ESCOLTA MANILA I., _r~ — ~ The American Chamber of Commerce Journal September- October. 1946 4

Page  5 Surigao Consolidated Leads The Way In the years to come, the gold mining industry of the Philippines will date its post-war recovery from August 25, 1946-just a few days less than one year after the surrender of Japan. On that day, for the first time since liberation, the milling of gold bearing ore got under way. This important event occurred in Mindanao, at the property of the Surigao Consolidated Mining Co., Inc. located at Mainit, Surigao. One swallow does not make la spring, it is true; but the milling of even one ton of ore at this time does definitely give promise of the ultimate restoration of an industry that was one of the bulwarks of Philippine economy before the war. The extraction of even one ounce of gold brings new hope to the hearts of thousands of people whose savings have been invested in this industry, giving as it does fresh evidence of the resourcefulness and energy of the industry's leadership. Surigao Consolidated was originally organized in 1935 and at once commenced exploration on the site of old Spanish and Chinese workings. In 2 years sufficient development work had been accomplished to warrant the construction of a mill with a capacity of 150 tons daily. Actual milling operations began in February, 1938 and the success of the mine under sound management was soon established. By the end of 1940, the mill had been enlarged to a capacity of 325 tons. Further increases were planned for 1941 which would have raised the mill's capacity to 600 tons daily by the end of the year; but the war intervened. Production records before the war were as follows:1938........ 31,653 tons 1939......... 104,192 " 1940......... 117,017 " 1941......... 135,615 " (11 months) Ore reserves on Jan. 1. '41 were reported as 461,411 tons with a gross value of P8,580,319 at P18.59. Although no estimate for ore reserves was made at the end of the year, there is no reason to believe that these figures have been changed as underground developments were satisfactory. By the end of 1940, among the 48 producing gold mines in the Philippines, Surigao Consolidated ranked 10th in tons milled, and 11th in value of production, although only 21st in average value per ton. Dividend payments began in 1939. With an authorized capitalization of P1,200,000, actual stock issued amounted to P1,023,400. In 1939 a 10% dividend was paid, totalling (at 1 centavo a share) P102,340. In 1940, on an eleven percent increase in tonnage milled, the dividend was quadrupled, amounting to 40% or 4 centavos a share. Increased mill efficiency plus a notable increaase (fromn P12.57 to P18.79) in average value per ton Imade possible the radical increase in profits. In 1941, there were further increases in tonnage milled (15% over 1940 in 11 months) and average value per ton (11%). Actual dividend payments amounted to 30% (total a 307,121). A further dividend of 15% was planned for December, 1941 which would have raised the dividend rate for the year to 45%. The declaration of the 15% dividend was prevented by the outbreak of war and the funds saved were later used for the rehabilitation of the property. With minor changes, the com(Continued on page 17) Surigiao Consolidated before the war. What the war left The American Chamber of Commerce Journal September October, 1946 5

Page  6 Escolta's Famous Retail Stores-Where Are They? A casual walk down Escolta today discloses a street that is lined with retail stores and crowded with vehicles and pedestrians. Superficially it is at least reminiscent of the Escolta which for more years than most can remember was the home of Manila's most sumptuous and familiar retail establishments. And to that extent there is a marked change from the Escolta of a few brief months ago when the once proud street, as it dug itself out the rubble of recent war, was reduced for a time to being the home of bars and honky-tonks. Certainly there has been improvement in these past few months-to such an extent that one is persuaded to make a more careful survey to judge the degree of improvement, the extent to which the glory of Escolta has been restored. The vehicles, the pedestrians are there, crowding the street itself, overflowing the meagre sidewalks. But what of the signboards and of the establishments they proclaim? There is a surprise in store for the person, recently returned to Manila, who passes down the street looking for his former favorite shopping places. For the most part, the street will be like a street in a strange city to him. The stores that are the present centers of the milling shoppers, with very few exceptions, will be unfamiliar. On the fingers of.both hands can be counted the familiar names and on the fingers of one hand those that are in their familiar locations. Beginning at Jones Bridge and walking toward Plaza Sta. Cruz, the first familiar sign is "Astoria." Out of location, yes; for it was formerly further down the street. But the same Astoria, and under the same management. Next to satisfy the hunt for the familiar is "Dr. F. Sarrabia, Optician." And across the street is the Manila Book Co. Neither in their former locations, but both on Escolta. Then comes the first familiar name in a familiar location-Botica Boie-on both sides of the street. The drug retail store is really on San Vicente, but an entrance from Escolta has recently been opened-thru the wrecked remains of the old store. On the two far corners of David St., as one approaches from Jones Bridge, are two sights well remembered from the past. On the left side is Meridian (jewelry, etc.) and on the right what one would expect, a camera store; in everything but name and ownership, the Camera Supply Co., and therefore included in this list. Managed by genial de la Fuente, owner of the former Camera Supply Co., the place is now owned by Kodak, Philippines and is still a camera supply retail store. Three more familiar names, anid that is all. H. Alonso and Syvels (both now in the Regina Bldg.) and Yatco's. There is the toll of former Escolta retail establishments that are again operating on Escolta - Astoria, Sarrabia, Manila Book Co., Botica Boie, Meridian, Camera Supply, H. Alonso, Syvels, and Yatco's, nine of them. And only 3 of the 9 are in their former locations. What of the others? Several of them are open and operating but in different parts of the city. Among these are some of the most famousEstrella del Norte, Philippine Education Co., Heacock's, HamiltonBrown, etc. The list is not a long one but it is a distinguished one. Some are just around the corner Riu Hermanos on R. Hidalgo Hamilton Brown on Echague Escolta Today 6 The American Chamber of Commerce Journal September - October, 1946

Page  7 Estrella del Norte on R. Hidalgo from their old places, some art farther removed. Walk-Over still occupies space in the Regina Bldg., but is on the Banquero St. side. Heacock's is still on David St., but on Dasmarifias corner instead of Escolta corner. Hamilton Brown is a bit further away, now located in Echague St., on the ground floor of the Great Eastern Hotel. On the same side of the Pasig, but on the other side of Quezon i Blvd., are several of the old stores. On R. Hidalgo are to be found the retail stores of Estrella idel Norte, Squires Bingham, and Riu Hermanos. A bit further away is the Philippine Education Co. retail store, now located in the company's bodega at 1104 Castillejos. Singer Sewing Machine Co. operates at that same address. And across the river in Port Area is the American Hardware retail store which was purchased by Marsman Trading Co. from the P.C.C. in 1941. Escolta today is crowded to its present full capacity; but from the structural point of view it is in a transitional stage. The retail stores that line its two sides for the most part are in temporary structures, hastily erected by energetic owners to take full advantage of the sudden upsurge of business activity. For the most part, only ground floors are occupied because these temporary structures are only one story high. And in depth they are shallow. In working population, Escolta today probably has not more than 1/4 of the pre-war count. But there is every indication that with the re-building of Manila, the street will resume its traditional place in the life of the city. Modern structures of modern designs and with modern accommodations will replace the present cramped temporary structures. More of its historic old names will most likely reappear when available quarters and (Continued on page 16) Philippine Education on Castillejos. Singer is at the same location Heacock's on the corner of Dasmariiias and David Squires Bingyham on R. Hidalgo Walk-Over on Banquero St. The American Chamber of Commerce Journal September- October, 1946 American Hardware and Marsmacn are in Port Area 7

Page  8 The Financial Rehabilitation Board By EDUARDO Z. ROMUALDEZ Secretary, Financial Rehabilitation Board On July 14, 1945, the President sent a message to Congress urging the approval of a bill appropriating P17,000,000 to establish a special fund for the rehabilitation of Philippine Banks and setting up a Bank Rehabilitation Board to invest and administer such fund. In his message, the President stated, "One of the most pressing problems that confront the country is the need for urgent rehabilitation of our private banking institutions. It is of paramount necessity that our banks open their doors immediately so that they may be in a position to assist in reestablishing our economy, particularly in connection with their role of integrating credit resources and canalizing credit facilities. "The measure herein submitted seeks to authorize the investment by the Government in preferred shares of stock of 'domestic banks. This is not intended as a permanent investment, but merely to allow banks to meet statutory requirements regarding capital structure which, because of enemy occupation, has been most severely strained. In the interest of the national welfare, the measure proposed herein should be enacted into law." The original draft of the bill, Which was considered in the First Special Session of the Congress but not passed, provided for the creation of a fund of P17,000,000, all of which was for investment in preferred shares of private banks. At that time, the condition of the banks for which aid was being sought, was regarded as substantially poorer than later appraisals showed. The bank rehabilitation legislation was finally enacted in the Fifth; Special Session of the First Congress and entered in the statute books as Commonwealth Act No. 726, approved on 15 January 1946. A brief summary of Commonwealth Act No. 726 is hereunder set forth: (a) A special fund of P10,000,000 is created, of which P2,500,000 is to be used in the rehabilitation of the Postal Savings Bank, and the remainder to be invested in first preferred shares of Philippine banks applying for financial assist ance. The fund is to be managed by a "Financial Rehabilitation Board" which is empowered to purchase preferred shares only if the present common shareholders are unable to render the necessary assistance. Preferred shares are to be entitled to cumulative dividends and voting privileges. (b) Preferred capital may be retired at the option of the bank or at the request of the preferred shareholders, provided that the Bank Commissioner is of the opinion that the bank's financial condition warrants, and provided further, that the capital structure of the bank after a retiremen.t is not less than ten per cent of the bank's deposit liabilities. Undler Commonwealth Act No. 726, the Rehabilitation Board shall be composed of five members, to be appointed by the President with the consent lof the Commission on Appointments. Its Chairman, who is at the same time its executive officer, shall be designated by the President. The Board was formally constituted on 6 February 1946, with the appointment by the President of the following: Hon. Jaime Hernandez, Chairman Hon. Ramon Quisumbing, Member Mr. Felix d'e la Costa, Member Mr. Marciano Guevara, Member Mr. Salvador Lagdameo, Member Mr. Eduardo Z. Romualdez, Secretary As the appointments of Messrs. Jaime Hernandez and Ramon Quisumbing were to continue only during their incumbencies as Secretary of Finance and Secretary of Justice, respectively, they were replaced on 15 June 1946, by the Honorable Elpidio Quirino, VicePresident and then concurrently Secretary of Finance, and the Honorable Ramon Ozaeta, Secretary of Justice. t At its initial meeting held on 7 February 1946, the Board considered the approval of two regulations: Regulation No. 1 entitled, "Prescribing Internal Rules of the Financial Rehabilitation Board," and Regulation No. 2 entitled, "Governing the Investment of Bank Rehabilitation Fund Created by Commonwealth Act No. 726." Regulation No. 2 defines the banks in whose shares the Board may in vest; outlines the procedure for applicatiion for financial assistance by banks; prescribes the documents and other papers that are to accompany each application; and otherwise provide for the manner and extent of financial assistance which may be extended to banks. After Regulation No. 2 was circularized six banks applied for financial assistance to the Financial Rehabilitation Board, namely; the Bank of the Philippine Islands, Philippine Trust Company, People's Bank and Trust Company, Philippine Bank of Commerce, Banoo Hipotecario de Filipinas, and the Monte de Piedad and Savings Bank. Subsequently, applications were approved in the total amount of P5,100,000. In accordance with Commonwealth Act No. 726, and the amended Articles of Incorporation and By-Laws of the respective banks, this amount of P5,100,000 Was invested in preferred shares of stock of the banks concerned. These preferred shares of stock are entitled to cumulative dividends at the rate of one per centulm during the first five years, two per centum during the second five years, and three per centum thereafter; are preferred as against common and, other preferred stockholders in the distribution of assets in the event of liquidation; and are entitled to voting privileges. The corresponding certificates of stock evidencing the purchase by the Financial Rehabilitation Board of the preferred shares of 'banks to whom financial assistance ha'd been granted are presently held by the National Treasurer in safekeeping. On 20 April 1946, the President issued Executive Order No. 107 providing for the rehabilitation of domestic insurance companies, and appropriating funds for this end. Under this Executive Order, the sum of P3,600,000 is made available to constitute as a special fund for tlhe purpose of purchasing preferred shares of stock of insurance companies applying to the government for financial assistance. The management and investment of this fund is entrusted to the Financial Rehabilitation Board, created under Commonwealth Act No. 726. In view of the issuance 'of this Executive Order, the Financial Rehabilitation Board, adopted on April 29, 1946, Regulation No. 3 entitled, "Governing the Investment 'of the Domestic Insurance Companies Rehabilitation Fund Created by Executive Order No. 107." Regulation No. 3 defines the insurance companies in whose shares the Board may invest; outlines the procedure (Continued on page 16) 8 September- October, 1946 The American Chamber of Commerce Journal i

Page  9 Americans In The Republic Of The Philippines Numerically, Americans have never cccupied a place of importance in the Philippine scene. That is, under normal conditions, excluding for example the welcome arrival of McArthur's numerous forces in 1944-45. In 1941, after more than, 40 years of the closest possible relationship between the two countries, there were less than 9,000 civilian Americans in the entire archipelago-a percentage of the population amounting to something like.0005. How many of these 9,000 are in the Philippines at the present time is not definitely known. But for those who are here, or who expect to come in the future, the recent emergence of the Philippines as an independent, sovereign nation means 'a change in their condition of radical importance. Without moving one step, without a single visible or tangible alteration in their environment, Americans in the Philippines became, with the signing of a document and a brief ceremony, aliens in a foreign country. It is inevitable that this change in, civil status will bring new problems. It inevitably creates new responsibilities, new obligations in the relationship between the individual American and both his own government and the government of the Philippines. President Truman's Proclamation of Independence on July 4, 1946 withdrew and surrendered "all right of possession, supervision, jurisdiction, control, or sovereignty... exercised by the United States in and over the territory and people of the Philippines", subject only to the retention of certain government property and defense bases. By a treaty signed by plenipotentiaries of the two countries,on July 4, 1946, and in process of ratification as this article is written, "all existing property rights of citizens -and corporations of the United States of America in the Republic of the Philippines...shall be respected and safeguarded to the same extent as property rights of citizens land corporations of the Republic of the Philippines." (This obligation is mutual). This is known as national treatment. That is, Americans get the same treatment as Filipinos so far as rights existing on July 4, 1946, are concerned. Another important instrument was signed on July 4, the socalled Executive Agreement (the full title tof this agreement, m'ade between the Presidents of the two countries. each with the consent of his Congress, is "Agreement between the United States of America and The Republic of the Philippines concern ing Trade and Related Matters During a Transitional Period Following the Institution of Philippine Independence"). This is a lengthy and involved document. For our present purpose it is sufficient to say that it provides for a period of free trade followed by graduated duties, a system of quotas on the principal Philippine exports to the United Stat'es and the much discussed "equal rights" provision under which, through an amendment to the Philippine Constitution, American citizens are to be placed for a period of 28 years on an equal footing with Filipinos in the operation of public utilities and exploitation of natural resources. Until the Constitutilon is amended, Americans as aliens will not enjoy these equal rights. Americans in. the Philippines will be well advised to keep their passports in order. At the same time, they should be currently registered at the American Consulate General in Manila. Registration means that the fact of citizenship has been verified and is of record at the Consulate. This facilitates the issuance of a new passport in the event of loss of the old one. Registration also means that the Consulate General has a record of the citizen's local address and, business connections and of the name and address of next of kin in, the United States. This information can be very useful in emergencies. Registration costs nothing and once established renewal is more or less automatic. In the case of naturalized citizens registration may have a vital bearing on retention of citizenship. Americans residing in a foreign country are subject to its tax laws, including income taxes. At the same time, Almerican revenue laws exempt most income earned 'abroad by bona fide non-residents. 'This is too complicated a subject for exhaustive treatment in an article of this nature. Income from investments whether in the Philippines or in the United States is not 'exempt from American. taxation; nor is salary paid by the United States Government. The United States have agreements with a number lof, countries regarding the administration of their respective income and inheritance tax laws by which both double taxation and tax evasion are avoided. It is to be presumed that in the near fu ture such an agreement will be made with the Philippines. The foregoing does not purport to be an exhaustive study of the tax question. Everyone's tax question is a separate problem. In case of doubt, competent advice should be taken. Every country reserves to itself the right to regulate or limit the admission or employment of foreigners. In addition to passport and visa requirements, many countries have legislation restricting the employment of aliens. These, vary widely. During the period between World Wlalrs I and. II, for example, foreigners required the permission of the Ministry of Labor to take salaried positions in the United Kingdom and, generally speaking, such permission was only granted if the employer could prove that no British subject with equivalent knowledge or skills was available. Most South American countries restrict thle number of aliens wsho may be employed by any one employer, to a percentage of the number of employees, a percentage of the total payroll, or in, other ways. Some states of the Union place restrictions on the granting of licences to aliens to practice the learned professions. Such restrictions on the activities of aliens, generally imposed in the name of protecting domestic labor, appear in, a wide variety of forms and are accepted by the nations of the world as within. the field of domestic legislation so long as they are non-discriminatory. Thus any legislation of this sort the Philippine Government might enact would, to the extent not exempted by treaty provisions, be applicable to American citizens equally with other foreigners. Citizens of the United States are now subject to the Philippine Immigration Law of 1940. Upon entering the Philippines they must have a valid passport which has been visaed by the consular authorities of the Philippine Government. At present American residents of the United States may obtain such visas only from the Philippine Embassy in Washingbon, D. C. but it may be expected that in the early future Philippine Consul'ates will be established in various cities in the United States. These Consulates will have authority to issue visas. The type of visa necesSary will depend on the purpose and duration of the stay in the Philippinles. Americans coming to the Philippines for permanent residence are subject to a quota of 500 per year, this quota being uniform for all countries. This does not mean that only 500 Americans may enter the Philippines 'during a year since there are various exemptions, the principal ones being: (1) 'a provision establishing non-quota status for im(Continued on page 20) The American Chamber of Commerce Journal September- October, 1946 9

Page  10 THE J COMMERCE L Published Monthly, in Manila, Philippines The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor Entered as second class matter Dec. 10, 1945 at the Post Office at Manila, P. L Subscription rates: One year in the Philippines, P6.00; United States, $5.00 U. S, Currency, American Chamber of Commerce of the Philippines Directors Wm. H. RENNOLDS, President Samuel Garmezy AMOS G. BELLIS, Vice-President E. M. Grimm E. BYRON FORD, Treasurer J. A. Parrish A. D. Calhoun Julius S. Reese John F. Cotton EQUAL RIGHTS The question of "equal rights" for Americans in the Philippines is a somewhat delicate one for an American to discuss publicly without fear of misinterpretation. However, since the question became a political one so much misinformation and misrepresentation has been given publicity in various forms that the need for frank and honest discussion becomes imperative. Our basic attitude toward this question was expressed editorially in a recent issue of the Journal, and remains unchanged,-to tie up the grainting of equal rights with the granting of war damage compensation is unjust and unfair to the Philippines. That it places local Americans in an undeservedly awkward position with their Filipino friends is comparatively of minor importance. In taking this attitude we recognize the difference between the political and economic aspects of the question and emphasize the former. If discussion of the question is confined to the economic aspects, there is more, much more to be said. An economic discussion must begin with the premise that the Philippines needs capital from abroad, particua,rly if a program of industrialization is to be instituted, or there can be no argument on an intelligent basis. A glance at the banking statistics printed elsewhere in this issue of the Journal should quickly convince the sceptic, if there is one. As a matter of fact, that is one point on which there is general agreement. Capital is needed in large amounts and the only possible source is foreign capital. Another point on which there seems to be complete agreement is that the only possible foreign source is America. In other words there is unanimity in the selection of American capital for the future development of the Philippines. Argument and disagreement mar this harmony of opinion only when the method of securing American capital is discussed. A sharp divergence of opinion and interpretation appears at this point. The view of the "antis" (as we may call the opponents of "equal rights") is.based on the idea that there will be no difficulty at all in securing American capital on almost any terms that the Philippines may please to specify. What foundation they have for this belief has not been stated. The experience of the past 40 years certainly offers no basis for it. Opposed to this conception of affairs is that of the "pros." As anxious As the antis to secure American capital, they interpret the situation in different terms. They recognize the fact that the Philippines is only one of many nations that look to America for investment capital today. They appreciate the fact that wealthy though America may be, her capital resources are still limited, and there is every indication that for the next few years the demand will exceed the supply. In her attempts to secure the needed amounts, the Republic of the Philippines must compete with practically every nation in the world. Consequently the pros try to prepare for this situation by offering certain inducements for the investment of American capital in this country; in their opinion the inducements not being excessive as compared with the benefits to be derived. In public discussion of this question, two methods of securing American capital are proposed. The method advocated by the antis is for the Philippine government to secure huge loans from the American government, which in turn the Philippine government will apply either directly (through government corporations) or indirectly (through loans to private concerns) to the industrial development of the Philippines. The pros, on the other hand, propose a method that will permit the direct application of American capital to Philippine development, rather than piping it through two governments before being so applied. This method, they believe, will also assure the Philippines the technological aid which is Ms important a factor in industrial development as the capital. In considering the method advocated by the antis the fdct should be squarely faced that it might well fail before it got started. It provides for the Philippine government a place of such dominance in local industry that it smacks strongly of state socialism, a form, of society that is repugnant to most Americans. Even if the American government wished, it might find it impossible to secure the necessary funds for such a purpose. The American government, it is well to remember, has no capital of its own. Neither can it conscript American capital and divert it to any use it wishes. It can secure funds only from private American sources, either through taxation or through loans. This vital element in the situation has been unfortunately avoided in public discussion. Loans from the American government during a period of emergency to the Philippine government for governmental purposes is one thing. But loans from the American government to the Philippine government that will be used to create in the Philippines a social order that is opposed to American ideals and ways of living is another. If the Philippines, now that it is a free and independent nation, wishes to follow the road to state socialism, the average American has no desire to interfere; but it will be most difficult for him to understand why he or his government should help in such a course, no matter how sympathetically he may be inclined toward the Filipinos and their problems. The inducements that are proposed for the securing of American capital have become the real storm center of the discussion. And it is here that we find the sharpest conflict between the two local points of view. The question, as we have said, having become a political one, is for the Filipino people to answer by themselves and of their own free will without public or private interference. But in making this decision they should have the full facts before them. In the course of the heated discussion, charges have been made that will hardly bear deliberate examination. One of these charges is that the country is being "sold" to American capitalists. A care 10 The American Chamber of Commerce Journal September- October, 1946

Page  11 ful study of the nature of the "inducements" offered fails to establish the accuracy of this charge. The special privilege term is definitely fixed; a definite point of time O.. S & S. C., INC. in the not too distant future has been established for its 2 i, ( r P B. end. There is no question of extra-territorial rights or n l privileges. Every phase of the operations of American Manila ~ capital in the Philippines will be subject to Philippine law and control. The only question is whether American man's Clocks capital will be permitted to operate within the strict ORIGINAL-ODHNER: Calculating Machines, Adding Machines limits of Philippine law. And Philippine law, even today, SCHWAB: Safes, Vaults is sufficiently explicit with regard to the development of INTERIOR STEEL EQUIPMENT CO.: Storage Cabinets, Lockers, Steel-Shelving, Shop-Equipment natural resources to prevent the country or its resources SAFEGUARD: heckwriters from beinig "sold" to anyone. A charge of possible ex- DITTO: Duplicating Machines, Supplies ploitation also has been made, and emphasized over and OGLE'S: Aluminum Chairs THE AMERICAN PERFORATOR CO.: Perforating-,over. Exploitation can occur only if unjust and inequit- Dating Machines able wages are paid to labor, or if inadequate rentals COPY-KING: Phostatic Copying Machines are p'aid for property used. So far as one can reason- PROTECTO: Insulated Cash Boxes BRANDT: Coin Counter & Packager, Automatic ably foresee, the chances of exploitation (in the sense Cashiers intended) are remote to say the least, for every' phase SCRIPTO: Automatic Pencils of possible "exploitation" is. or can be, adequately cov- KOH-I-NOOR: Drawing Pencils CRESCENT PRODUCTS: Ink, Paste, Mucilage, etc. ered by governmental action. Ten years from now will WARREN-KNIGHT: Transits, Levels Philippine labor be receiving better wages if large cap- KUKER-RANKEN: Hand Levels ital is invested here for industrial development or will CHICAGO STEEL TAPES it be receiving poorer wages? The question can be asked AINSWORTH: Pocket Transits it be receiving poorer wages? Tihe question can. be asked THE SPECIALTY DEVICE COMPANY: Wellin a form that is easier to answer, by starting it as boring Outfits follows: Are wages higher in industrialized countries* * * * or in countries that are not industrialized? This can be answered without depending on the gift of prophecy. "Repair and Service of all types of office Wages are highest irn industrialized countries in which machines, safes, steel furniture." free enterprise is permitted to flourish. This is a fact,machines, saes, steel furniture. and a good one to cling to, when one discusses "exploita- WE SPECIALIZE IN OFFICE EQUIPMENT tion of labor." America is the proof, and for the past half century it is American capital alone that has been AND ENGINEERING INSTRUMENTS invested in her industrial development. ATLANTIC GULF & PACIFIC COMPANY OF MANILA EXECUTIVE & SALES OFFICE ENGINEERING DEPT. & SHOPS 222 REGINA BUILDING PUNTA, SANTA ANA TEL. 2-83-64 TEL. 8-63-32 ENGINEERS -CONTRACTORS DISTRIBUTORS FOR FAIRBANKS MORSE & CO. YORK CORPORATION GARDNER DENVER CO. LINCOLN ELECTRIC CO. CHAIN BELT CO. WALSH REFRACTORIES CORP. ARMCO INTERNATIONAL CORP. MARION POWER SHOVEL CO. PIONEER ENGINEERING WORKS PITTSBURGH PLATE GLASS CO. I i it I The American Chamber of Commerce Journal' September -October, 1946 11

Page  12 Treaty of General Relations Between the United States of America and the Republic of the Philippines The United States of America and the Republic of the Philippines, being animated by the desire to cement the relations of close and long friendship existing between the two countries, and to provide for the recognition of the independence of the Republic of the Philippines as,of July 4, 1946 and the relinquishment of American sovereignty over the Philippine Islands, have agreed upon the following articles: Article I The United States of America agrees to withdraw and surrender, and does hereby withdraw and surrender, all right of possession, supervision, jurisdiction, control or sovereignty existing and exercised by the United States of America in and over the territory and the people of the Philippine Islands, except the use of such bases, necessary appurtenances to such bases, and the rights incident thereto, as the United States of America, by agreement with the Republic of the Philippines, may deem necessary to retain for the mutual protection of the United States of America and of the Republic of the Philippines. The United States of America further agrees to recognize, land does hereby recognize, the independence of the Republic of the Philippines as a separate selfgoverning nation and to acknowledge, and does hereby acknowledge, the authority and control over the same of the Government instituted by the people thereof, under the Constitution of the Republic of the Philippines. Article II The diplomatic representatives of each country shall enjoy in the territories of the other the privileges and immunities derived from generally recognized international law and usage. The consular representatives of each country, duly provided with exequatur, will be permitted to reside in the territories of the other in the places wherein consular representatives are by local laws permitted to reside; they shall enjoy the honorary privileges and the immunities accorded to such officers by general international usage; and they shall not be treated in a manner less favorable than similar officers of any other foreign country. Article III Pending the final establishment of the requisite Philippine Foreign Service establishments abroad, the United States of America and the Republic of the Philippines agree that at the request of the Republic of the Philippines the United States of 'America will endeavor, in so far as it may be practicable, to represent. through its Foreign Service the interests of the Republic of the Philippines in countries where there is Philippine representation. The two countries further agree that any such arrangements are to be subject to termination, when in the judgment of either country such arrangements are no longer necessary. Article IV The Republic of the Philippines agrees to assume, and does hereby assume, all the debts land liabilities of the Philippine Islands, its provinces, cities, municipalities and instrumentalities, which shall be valid and subsisting on the date hereof. Thei Republic of the Philippines will make adequate provision for the necessary funds for the payment of interest ion the principal of bonds issued prior to May 1, 1934 under authority of an act of Congress of the United States of America by the Philippine Islands, or any province, city or municipality therein, and such obligations shall be a first lien on the taxes collected in the Philippines. Article V The United States of America and the Republic of the Philippines agree that all cases at law concerning the Government and people of the Philippines which, in accordance with Section 7 (6) of the Independence Act of 1934, are pending before the Supreme Court of the United States of America at the date of the granting of the independence of the Republic of the Philippines shall continue to be subject to the review of the Supreme Court of the United. States of America for such period of time after independence as mnay be necessary to effectuate the disposition of the cases at hand. The contracting parties also agree that following the disposition of such cases the Supreme Court of the United States of America will cease to have the right of review of cases originating in. the Philippine Islands. Article VI In so far as they are not covered by existing legislation, all claims of the Government of the United States of America or its nationals against the Government of the Re public of the Philippines and all claims of the Government of the Republic of the Philippines and its nationals against the Government of the United States of America shall be promptly adjusted and settled. The property rights of the United States of America and the Republic of the Philippines shall be promptly adjusted and settled by mutual agreement, and all existing property rights of citizens and corporations of the United States of America in the Republic of the Philippines and of citizens and corporations of the Republic of the Philippines in the United States of America shall be acknowledged, respected and safeguarded to the same extent as property rights of citizens and corporations of the Republic of the Philip. pines and of the United States of America, respectively. Both Governments shall designate representatives who may in concert agree on measures best calculated to effect a satisfactory and expeditious disposal of such claims as may not be covered by existing legislation. Article VII The Republic of the Philippines agrees to iassume all continuing obligations assumed by the United States of America under the Treaty of Peace between the United States of America and Spain concluded at Paris on the 10th day of December, 1898, by which the Philippine Islands were ceded to the United States of America, and under the Treaty between the United States of America and Spain concluded at Washington on the 7th day of November, 1900. Article VIII This Treaty shall enter into force on the exchange of instruments of ratification. This Treaty shall be submitted for ratification in accordance with the constitutional procedures of the United States of America and of the Republic of the Philippines; and instruments of ratification shall be exchanged and deposited at Manila. Signed at Manila this fourth day of July, one thousand nine hundred forty-six. For the Government of the United States of America: PAUL V. McNUTT For the Government of the Republic of the Philippines: MANUEL ROXAS (Continued on next page) 12 The American Chamber of Commerce Journal September - October, 1946

Page  13 Uncle Sam-Merchandiser Retires After nine months of intensive activity as the largest merchandiser in the Philippines, the United States government closed shop on September 11, 1946. On that day in the largest single transaction in the history of the country President Roxas bought for the Philippine government the entire remaining stocks of U. S. surplus property, excluding (Continued from previous page) PROTOCOL TO ACCOMPANY THE TREATY OF GENERAL RELATIONS BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC OF THE PHILIPPINES, SIGNED AT MANILA ON THE FOURTH DAY OF JULY 1946. It is understood and agreed by the High Contracting Parties that this Treaty is for the purpose of recognizing the independence of the Republic of the Philippines and for the maintenance of close and harmonious relations between the two Governments. It is understood and agreed that this Treaty does not attempt to regulate the details of arrangements between the two Governments for their mutual defense; for the establishment, termination or regulation of the rights and duties of the two countries, each with respect to the other, in the settlement of claims, as to the ownership or control of real or personal property, or as to the carrying out of provisions of law of either country; or for the settlement of rights or claims of citizens or corporations of either country with respect to or against the other. It is understood and agreed that the conclusion and entrance into force of this Treaty is not exclusive of further treaties and executive agreements providing for the specific regulation or matters broadly covered herein. It is understood and agreed that pending final ratification of this Treaty, the provisions of Articles II and III shall be observed by executive agreement. Signed at Manila this fourth day of July, one thousand nine hundred forty-six. For the Government of the United States of America: PAUL V. McNUTT For the Government of the Republic of the Philippines: MANUEL ROXAS military equipment and aircraft, in the Philippine Islands. The document covering the sale was signed with considerable formality in the presence of Ambassador McNutt, and Vice-President Quirino, at Malacanian Palace, by President Roxas (for the Philippines) and William E. Vogelback, Central Field Commissioner of the Foreign Liquidation Commission (for the United States). Involved in this sale are almost innumerable items of equipment and supplies of all types. The only description of the material that is available merely classifies it in, the following categories:PX and ship's service and commissary goods Quartermaster's supplies Signal and communication equipment Ordnance Motor vehicles Tractors and other machines Engineering equipment and machinery Spare parts Medical supplies Surplus ships and. watercraft Fixed installations (barracks, piers, warehouses, etc.) On the l'ast two categories further information has been, made available to the effect that the original value of ships and watercraft transferred was P40,000,000 and the original cost of the fixed installations was P110,000,000. These were being included in the sale at a valuation of P12,000,000 and 123,400,000 respectively. In the case of ships and watercraft, the sales valuation is 30% of the original cost. In all other categories, the sales valuation is approximately 21% of the original valuation or cost, marking a distinct triumph for the Philippine government as all previous sales between the two parties had been on an evalution formula of 54% of procurement costs. As recently as mid-August, a valuation percentage of 33%) had been tentatively accepted by both parties. But in further negotiations, the Philippine representatives were able to secure a further reduction to 21.4%. It has been explained that this figure of 21.4% is the same as that established in negotiations between the United States and the Chinese government. In simple terms this sale may be described as a P324,000,000 deal. The Philippine Government gets Surplus property that has been given a total fair valuation of P274,000,000 plus P50,000,000 in cash (the surplus property involved originally cost P1,260,000,000). In return for this specific amount of goods and cash, the Philippine government;1. Credits the United States with P170,000,000 worth of surplus property, the balance due from the original P200,000,000 provided by the Tydings Rehabilitation Act; 2. Assumes the United States Army's portion of the obligation to redeem authorized guerrilla currency issued during the occupation; 3. Discharges the United States Army's obligations for advances made by the Philippine government in emergency currency tor the support of the operations of the army during the war; 4. Agrees to make available to the United States government through purchase or other acquisition P6,000,000 worth of real estate and improvements as requested from time to time: 5. Agrees to defray, the cost of a Philippine-American cultural exchlnge program, involving scholarships, scientific research projects and other educational undertakings provided by subsequent agreements between the two governments, at a cost of P4,000,000 plus any unexpended balance of the P6,000,000 credit established for the purchase of real estate for the United States government. The negotiations leading to the final agreement required several months. In August, a special mission from the United States arrived here, headed by Assistant Secretary of War Howard Peterson and U. S. Foreign Liquidation Commissioner Thomas C. McCabe. A preliminary conference was held with Philippine government officials upon the arrival of the mission in Manila en route to China to arrange for a similar "deal" with the Chinese government. The qeconld and final conference was held after the return of the mission from China, on September 2, at which a general agreement concerning the transaction was reached. At this conference, Philippine congressional leaders and cabinet members participated, along with United States Army and Navy chiefs. The principal negotiators were, on behalf (Continued on page 0) The American Chamber of Commerce Journal deptember - October, 1946 13

Page  14 MANILA STOCK EXCHANGE REPORT August 1st to 31st In a month unmarked by unusual activity, the Manila Stock Exchange during August reported sales of 4,061,000 shares for a total of P731,000. Mining stocks accounted for 3,996,156 of the shares and P556,000 of the cash value -i percentages of 98 and' 76 respectively. Commercial and Industrial issues showed a turnover of 60,578 for a cash return of P175,694. With only one sale during the month (Filipinas on August 2 at P13), Insurance issues ranked 3rd for the month - 3,300 shares for a return of P42,900. Sugars accounted for 556 shares for P23,827 and Banks came last with 410 shares for P20,500. Such activity as was shown, was fairly well spread over the month. The briskest day was August 2nd when 163,077 shares changed hands at a cash value of P68,800, the slowest day being August 19 (Saturday) when sales, involved only 11,480 shares for a cash value of P4,235. Mining Shares A. C. Hall & Co.'s daily price average, which isr based on transactions involving a selected list of mining stocks, showed a continuation of the gradual decrease which commenced in March of this year - the drop for the month being from 28.80 to 26.60. Eighteen mining stocks participated in the month's sales - the most active being Atok Gold, S!an, Mauricio, Big Wedge, Surigao Consolidat ed, Minjdanao Mother Lode, Antanmok, Batong Buhay, and Itogon., all of which were dealt in on at least 10 days during the month. The following list shows the number of days during the month on which each participated and the total number of shares exchange: - Atok Gold San Mauricio Big Wedge Surigao Consolidated Mindanao Mother Lode Antamok Batong-Buhay Itogon 17 days 108,554 17,, 218,247 16,, 66,037 shares,, 9 i 14,, 140,903 13,, 144,00 11,, 247,033 11,, 1,527,500 10,, 181,250 Atok Gold dropped in price from.71 to.60 but regained partially during the last 2 days of the month the last 10,000 shares selling for.65. San Mauricio, after sales at.43 on, the 1st, jumped quickly to.46 on the next two days, at which price 44,000 shares were sold. Subsequent sales showed a decline in price, the last 10,000 shares selling at.39. Big Wedge, following the general trend, dropped from.81 on. the 1st to a low of.70 toward the end of the month. The final sale was 2,500 at.72. Surigao Cons olidated moved through-out the month on a fairly steady level, the last 10,000 shares going at 35.5, slightly higher than the month's opening sale at.34. Mindanao Mother Lode sales showed a price decline from.58 on Aug. 2 to.48 on the 26th. But the month's final sales were at.51. Antamok sales showed no appreciable change in value, opening at.04 and closing at.04. Batong-Buhay opened at.0078 and closed at.0076, the highest point reached being.008 and the lowest.0o0:. Itogon held steady at.12 until the 24th, after which trading was done on 5 days at.11. Commercial and Industrial Shares Commercial and Industrial issues showed strength throughout the month- the bid price on each issue (with 1 exception) being higher on Aug. 31st than on Aug. 1st. ActivMANILA STOCK PRICE AVERAGES BASED ON THE SALES OF A SELECTED LIST Prepared by A. C. HALL AND CO. MANILA STOCK EXCHANGE Date: Average Volume 1946 Aug. 1 28.80 27,000 " 2 28.70 22,000 " 3 28.70 24,000 " 5 28.80 5,000 " 6 28.85 29,000 " 7 28.60 15,000 " 8 28.48 46,000 " 9 28.53 24,000 " 10 28.48 19,000 " 12 28.33 5,000 " 14 28.30 18,000 " 15 28.20 16,000 " 16 27.95 15,000 "17 27.63 27,000 " 19 27.53 1,000 "20 27.30 11,000 " 21 26.65 26,000 " 22 26.25 29,000 " 23 26.10 12,000 " 24 25.70 15,000 " 26 25.68 8,000 27 25.80 53,000 " 28 26.05 26,000 "29 26.55 22,000 " 30 26.75 18,000 " 31 26.60 19,000 Sept. 2 26.85 20,000 " 3 27.35 42,000 " 4 27.05 39,000 " 5' 26.75 16,000 " 6 26.65 21,000 " 7 26.65 19,000 " 9 26.15 9,000 " 10 26.15 22,000 " 11 26.20 13,000 " 12 26.25 - " 13 26.35 20,000 " 14 26.35 6,000 - MINING STOCK SALES August 1st to September 15th Listed Issues No. Sold 1st Sale LastSale Closing Bid Antamok.............. 300,000.04.05.04 Atok Gold............ 149,887.71.62.62 Baguio Gold........... 31,000.10.09.08 Batong Buhay......... 2,157,000.0078.007.006 Big Wedge............ 93,762.81.75.74 IXL................. 148,845.16.13.125 Lepanto Consolidated.. 124,000.13.13.13 Masbate Consolidated... 206,000.0925.085.08 Mindanao Mother Lode. 202,413.58.50.50 San Mauricio.......... 229,559.43.39.39 Surigao Consolidated... 344,024.34.38.38 Not Listed- Over the Counter Sales Acoj~e............... 96,000.20.20 Coco Grove........ 125,000.04.03 Consolidated Mines.... 1,738,000.0094.0075 Itogon................ 251,250.12.11 Paracale Gumaus...... 40,000.13.11 United Paracale....... 103,500.18.12 Suyoc Consolidated.... 30,000.05.05 I. 14 The American Chamber of Commerce Journal September - October, 1946

Page  15 ity throughout the month was shown by only 2 issues - San Miguel Brewery and Philippine Racing Club. San Miguel was traded in on 14 days during the month and Philippine Racing on 16 days. San Miguel's strength was notable throughout the period. 20 shares were sold at P260 on August 1st, but all subsequent sales were ion a materially higher level. The final 10 shares were sold at P276, a bid price of P274 failing to bring a response. 5,000 shares of Phil. Racing were exchanged on the 1st at 1.16, but this level could not be maintained. From the 16th on, sales were made on 9 days at P1.00. Trading in Sugars, Banks, and Insurance was so limited as to prevent analysis. The Imost noteworthy sales were 20 shares of Central Bais at P530 on Aug. 30, 310 shares of People's Bank at P50 on August 9, and 3,300 shares of Filipinas at P13 on August 2nd. September 1st to 15th During these 2 weeks, the rate of activity remained fairly steady, showing only a slight decrease as compared with August. Total number of shares handled was 2,397,180, slightly more than 50 %o of the volume for August. Total sales value was P317,000, slightly less than 50 % of the value of August transactions. Mining issues continued to dominate the market in number of shares sold accounting for 99 %. In sales value, however, mining shares accounted for only 65 %, as compared with 76 % for the month of. August. Sales of Commercial and Industrial issues amounted to P53,000, or 17 % of the total (in August the percentage was 247%). Sales of Sugar shares showed a decided increase, amounting to P49,000, 15% of the total (for the month of August the figures were P23,827, and 3 %). Banks accounted for 108 shares at a sales value of P5,400. And no sales of Insurance stocks were recorded. Daily transactions varied. from a high of P47,150 on September 4th to a low of P16,005 on September 12th. Mining Shares A. C. Hall & Co.'s daily price average showed a slight gain in the first few days but closed at 26.35, a slight loss over the 1st day of the pericld, 26.85. Again, eighteen mining stocks participated in the sales - the most active 'being Surigao Consolidated, Big Wedge, Mindanao Mother Lode, Atok Gold, United Paracale, and Batong Buhay. The following list shows the number of days during the 2 weeks' period ion which each partici(Continued on page 25) 'U I * This tire is designed for heavy duty truck operations, for both city and highway use. Made by B. F. Goodrich, world famous maker of rubber products, it has many improvements. The new design helps it run cooler. The thick, tough rubber tread gives long wear. The tread design gives safety. The strong tire body makes it ideal for truck operations. And the long-wearing qualities save you money. See us about B. F. Goodrich Truck Tires. Goodrich International Rubber Co. 2738 RIZAL AVE. EXT.-MANILA, P. I. A_ \~)~ The American Chamber of Commerce Journal September - October, 1946 15

Page  16 I -M QE MRAuS - ~~~ The Financial Reha... (Continued from page 8) for application for financial assistance for insurance companies; prescribes the documents, and other papers th4at are to accompany each application; and otherwise provides for the manner and extent of financial assistance which may be extended to, insurance companies. Two domestic insurance companies have applied for financial assistance under the provisions of Executive Order No. 107, Namely: the Insular Life Assurance Company, Ltd., and the National Life Insurance Company of the Philippines. After consideration of their respective applications, the Finlancial Rehabilitation Board, approved to extend financial assistance to these two insurance companies in the total amount of P3,575,000. In accordance with Executive Order No. 107 and amended Articles of Incorporation and By-Laws of the respective insurance companies, this amount of P3,575,000 was invested in preferred shares of stock of the insurance companies concerned. 'These preferred shares of stock are entitled to cumulative dividends at the rate of one per centum during the first five years, two per clentum during the seco/nd five years, and three per centum thereafter; are preferred as against the common and other preferred shareholders in the distribution of assets in the event of liquidation, and are entitled to voting privileges. When in the opinion of the Insurance Commissioner, the financial condition of the insurance companies in whom the Finapcial R'ehabilitation Board has made investment warrants the retirement of preferred shares, the company may, at its option or upon the request of the preferred shareholders, retire such shares or a portion thereof by paying the par value plus accumulated dividends, provided that the legal reserve required by Section 183 and 18Q of the Insurance Act, and the entire paid-up capital remain unimpaired and a sum sufficient to pay all losses reported or in the course of settlement, and all liabilities for expenses and taxes, are fully provided fior. The corresponding certificate of stock evidencing the purchase by the Financial Rehabilitation Board of the preferred shares of the insurance companies to whom financial assistance had been granted are also presently held by the National Treasurer in safekeeping. In the formal undertaking subscribed by individual banks and insurance companies to whom financial assistance have been extended, said Escolta's Famous... (Continued from page 7) available stocks permit; but there Will also probably remain a liberal sprinkling of survivors of the new aggressive stores that have taken quick advantage of the abnormal situation to establish themselves on this famous street. MM MNI banks to and insurance companies agree (1) Submit to the Rehabilitation Board within the first ten days of every month a copy of its balance sheet and profit and loss) statement duly certified by an authorized officer; (2) Permit duly authorized agent or agents of the Board to examine the books, accounts and other records of the banks or insurance company, and to gather or obtain any information or data at any time; and (3) Limit salaries and other expenses of the bank or insurance company for each fiscal period to within the authorized appropriation therefor as may be approved by the Financial Rehabilitation Board. It is to be stressed that with the financial assistance rendered by. the Government under the authority of Commonwealth Act No. 726 and Executive Order No. 107, which aid was extended through the Financial Rehabilitation Board, four commercial banks and two insurance companies, all of local incorporation, were permitted to resume their operations, thus reestablishing their former positions in the financial structure of the country. Private deposits which were, held immobilized within these banks until their reopening were immediately defrosted and again became available to their respective owners. Policy holders have been materially assisted by the revival and/or continuation of their corresponding insurance coverage. Claims agrainst these companies for death and other benefits were, after due processing, immediately settled. Local participation in the channeling of the credit resources of the country was considerably enhanced with the resumption of operations of these financial institutions which received government aid. The resources, facilities, service 'and experience of these credit institutions were once more made available to the general public These credit institutions are of invaluable assistance in reestablishing the general economy of the country. It is fior this reason that the Government did not hesitate to come to their aid, considering the vast and important role which they will play in the huge task of reconstruction and rehabilitation of this war-torn country. Sole Importers FEPTCO (Far East & Pacific Trading' Co.) A. SORIANO Y CIA. General Managers BANCO HIPOTECARIO BLDG. TEL. 2-79-61 MANILA 16 The American Chamber of Commerce Journal September - October. 1946

Page  17 Surigao Consolidated... (Continued from page 5) pany's organization remains practically the same as before the war. At the last meeting of the corporation, W. F. Gemperle became president. The other directors are Otto F. Weber (vice-president, treasurer and secretary), Fulgencio Appelaniz, J. B. Harrison, and H. B. Chambers (the only new member). Thomas N. Powell, formerly secretary, was killed during the war in the sinking of a Japanese prison ship. The mining property was inspected by J. B. Harrison, general superintendent, in August, 1945 and was found to have suffered the fate common to practically all mining properties in the Philippines. Buildings and equipment were total losses, and mine workings and tunnels were flooded. Bullion valued at P150,000 had been found and seized by the Japanese, as was also true of P120,000 worth of concentrate in Manila. However a considerable amount of open pit ore was available for working. Most of this ore had been mined in 1938-39 but more th'an 20,000 tons reported to average P15 per ton remained. In October, 1945 Mr. Harrison left for the States to procure the needed equipment, returning to the Philippines in March of this year. Prospects were considered sufficiently encouraging by the directors to warrant the issuance of the remaining capital stock. This was done in March, 1946, the stock being sold to registered stockholders at a price of 20 centavos a share. Aid'ng Superintendent Harris-n in tha rebuilding of the mill and restoration of the mine are R. W. Gorier, mi l superintendent, and H. E. Heide, m'ne superintendent. The labor force, which was scattered by the war, has been successfully reassembled, many of the laborers (Continued on page 19) ---- I I 0- M- I L I if INHELDER INCOR n PO RATE D Dealers in: PHARMACEUTICAL SUPPLIES INSTRUMENTS GROCERIES —TEXTILES 5th FLOOR -- - TRADE & COMMERCE BUILDING - - MANILA m!!n - - August, 1946 September- October, 1946 1 17

Page  18 Bibliography Of Postwar Economic Problems By PEDRO T. ORATA National Council of Education (February through May, 1946) AGBAYANI, AGUEDO F. The Bell Trade Bill. Philippine-American, 2: 13-16, May 1946. A critical analysis and evaluation of the Bell Trade Bill with a view to its rejection on the ground that it will cause us "to forge all over again the shackles of our economic slavery." AGUIDO, SR., LUIS. Cooperative Movement in the Philippines Am Ch Cor J, 22: 17, 20, Feb. 1946. Traces the historical development of the Cooperative Movement in the Philippines, starting with the enactment in 1915 by the Philippine Assembly!of a bill entitled, "An Act Regulating the Creation and Operation of Rural Credit Cooperative Associations." Subsequent acts: Cooperative Marketing Law, 1927; Act No. 565, 1940; Ex. Order No. 398, creating the National Cooperatives A'dministr'ation, 1941; Emergency Control Administration, 1945. ANON. The Escodas. Am Ch Cor J, 22: 9, February 1946. Relates instances in which the Escodas helped American and Filipino internees and prisoners of war in connection with which "the thought of personal danger never interfered with the work of these two; and it was always done somehow." At one time in Sto. Tomas, Josefa wVa.s a Red Cross official and Tony the chauffeur. "Into camp the two of them would come, showing their passes at the gate, always loaded with whatever they could get (one morning it was 15 cots), and bringing messages from loved ones and friends outside. Tony always had the morning news as broadcast by KGEI typewritten on a thin sheet of paper." Back to Hunger. Evening News, Saturday Home Magazine, 1: 6, May 18, 1946. Gives facts and figures indicative of famine ahead unless more crops are planted and Waste of food is prevented. The Bell Bill. Am Ch Com J, 22: 12-13, 27, Feb. 1946. As introduced in Congress on November 14, 1945. A summary of the main provisions. Business and Finance; Transportation. Manila Courier. Manila Daily The Philippine Bulletin; Evening News. Regular Daily Feature. The Challenge of Labor. Philippines Free Press, 37: 4, 20, March 2, 1946. Tells how local unions are growing in number and strength with the backing of big labor organization in the States. Friendship: The Fil-American Way. Sunday Times Magazine, 1: 11, May 12, 1946. Describes two incidents showing how Filipinos and Americans managed to help each other during the Japanese occupation in the Philippines within sight of Japanese guards. GOWE, ROBERT L. Predict Ocean Can Feed and Clothe Entire Human Race. Manila Courier, May 12, 1946 (Special Sunday Edition). Predicts the possible productivity of "ocean farms." GUERRERO, MOISES T. Prospects of Famine. Daily News Sunday Magazine, 1: 1, May 1946. Summarizes the food situation in the Philippines as revealed by the UNRRA last year: estimated rice crop, 30% below pre-war norm; corn 40%i below pre-war level; work animals reduced by 44%; herds and flccks reduced by 60-70%; farm implements reduced by 3('%; processing and transportation facilities very inadequate; rice and other requirements 17% higher th!an before the war. Needed: "a planned and coordinated program that will embody fair distribution of what is available now and that which will speed up food production in the quickest possible time." Index Numbers of Cost of Living of Wage Earners in Manila: 1941-1945. Am Ch Corn J, 22: 18, Feb. 1946. Based on 1941 as 100, present index numbers from 1941 to 1945 on the following: food, house rent, clothing, fuel, light and water, and miscellaneous. Food increased from 100 in 1941 to 122.3 in January 1942; to 221.7 in January 1943; to 2,211.1 in January 1944; to 133,388.1 in January 1945. Figures for the remaining items are similarly scaled. JACKSON, HARRIS. World Rice Outlook. Manila Courier, May 12, 1946. (Sunday Special Edition). Tells that, because of the Japanese occupation of the countries bordering East Asia, rice production was greatly curtailed because of the ruining of irrigation systems, the slaughtering of work animals, and the conscription of farmers. LAVA, HORACIO C. Real Wages and the Nations' Health. Am Ch Corn J, 22: 8-9, 18, April 1946. (Rep. from: Bull. Phil. Sta., Vol. I, No. 2). A study showing that: the cost of living as of December 1945 was 6 -1/2 times higher t ha n pre-war level; the purchasing power of the peso was P0.1516, compared with prewar value; wage rates "had not even doubled" - wages paid to skilled workers by City were only 69% higher than in 1941; and those paid by the Army were only 44% higher than pre-war; that families of wage earners managed to meet their living expenses in spite of low wages by means of "(1) contribution of other gainfully employed members of the family to the common income; (2) additional work undertaken by the head of the family; (3) payment in kind received, the sources of which are undisclosed; and (4) limiting food purchases to canned goods mainly." It is claimed that the "U. S. Army, in adopting standards of wages which do not conform to changes in cost of living, in effect have invited pilferage and theft of its stores. This matter cannot be dismissed by branding the whole Filipino people as a nation of thieves. It is obvious that economic necessity is responsible for the deterioration of the moral fibre of the war and postwar generation.. In many cases, the only way to staye off starvation was to steal or else engage in some form of rackt." Proposes specific remedies. LOCSIN, CARLOS A. Through Three Occupations. Philippine-American, 2: 41-43 May 1946. "If 'our country can't help falling under foreign rule, let's make sure no flag will fly over us but America's." Expresses an "unbiased opinion of the Americans and Japanese as colonizers, based upon their conduct during the days of occupation,",and appraises the effects of the occupations upon the Islands' economy. LOCSIN, TEODORO M. The Wo-.men Are Taking Over. Philippines Free Press, 37: 16-17, April 20, 1946. Tells how the women in leading countries are taking over man's work in politics, in the industries, and even in war, and are doing a good job of it. Invites the Filipino women to take notice. LOPEZ, SALVADOR P. Prospects (Continued on page 22) 18 The American Chamber of Commerce Journal September -October, 1946

Page  19 OFF THE PRESS! With 830 pages of listings of individuals, companies, etc., the Philippine Business Directory (1946) is now available. It is the first privately published directory to appear since liberation and will no doubt soon find its way into most business offices. The main body of the directory has 5 divisions-Alphabetical, Classified, Agency, Import & Export, and Residential Sections. The Alphabetical Section takes up 298 pages with probably an average of 10 to 12 listings per page. Company names and addresses are often followed by the names of officials. Also the nature of the company's business is indicated by such words or phrases as "General Merchandise-Wholesale & Retail-Cosmetics," "Importers, Exporters, & Indentors," "Motion Picture- Distributors," etc. Cable addresses are frequently given. In the "Classified Section," the listings include only names and addresses. This section fills 230 pages of the directory. Altogether 327 classifications from "Accountants & Auditors" to "Yeast" are used, the most important ones (according to number of entries) being the following:Sari-Sari Establishments... 43 pages General Merchants.. Importers.......... Restaurants........ Exporters.......... Groceries......... Hardware Dealers... Shoe Dealers....... 21 pages 20 " 13-~2 pages 9-1/2 " 5 pages 4-1/2 pages 4 pages Other classifications requiring 2 pages or more are Brokers (Exchange), Dressmakers, Druggists (Retail), Furniture, Lumber Dealers, Manufacturers' Representatives, and Tailors. These 15 classification fill 139 pages, which leaves 91 pages for the remaining 312 classificationstoo many of the classifications have only 1 or 2 or maybe 3 listings. Following the Classified Section come 13 pages devoted to the listings of Agencies. The entries are of companies that have a local agency or representative and are arranged alphabetically. The name and address of the local agent is included. Strangely enough the Import & Export Section (18 pages) is only slightly corellated with "Importers" and "Exporters" in the Classified Section. Judging by the first 10 entries, the corellation is 40% since only 4 of them are listed as "Importers" or "Exporters" in the Classified Section. The final 229 pages are devoted to the Residential Section. An interesting commentary on local living conditions are the numerous instan Surigao Consolidated... (Continued from page 17) (particularly the Igorots from Mountain Province) having fought with the guerrilla forces in Mindanao throughout the occupation. The new mill, with a capacity of 100 tons daily, actually began milling the surface ore on August 25th. When the necessary concentrating tables are installed, which should be in a matter of weeks, the mill capacity will be increased to 250 tons. According to President Gemperle, additions to the mill which have already been orderd should raise the capacity to 450 tons by the end of the year-or back to pre-war levels, which would be a worthy record for rehabilitation in the Philippines. ces of "r c/o same," meaning that the individual's residence address can be given only as being the same as his office address. A unique quality of this directory is the almost complete absence of telephone numbers and the complete absence of post office box numbers. In the Alphabetical Section, the first entry to have a telephone number is the 69th, on page 5. And from beginning to end, not a single post office box number can be found. But don't blame the publishers of the directory for these discripancies, for the fault is not theirs! INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA INTERNATIONAL MOTOR TRUCKS McCORMICK-DEERING FARM MACHINERY AND EQUIPMENT TRACTORS, Wheel & Crawler Types ENGINES, Full Diesel & Kerosene. * RICE MILLS, "Engelberg" CORN MILLS, CANE MILLS, PLOWS, HARROWS, MOWERS, RICE THRESHERS, ETC. Agents forr: THE ISTHMIAN STEAMSHIP CO. Swedish East Asiatic Co. Glen Line Ltd. L THE AMERIC.If COMMERCE b L IS A QUALITY ADVERTISING MEDIUM Let us carry your message to a SELECT public every month. 0. I I I ~ ~ ~ ~ - M The American Chamber of Commerce Journal September- October, 1946 19

Page  20 American In.. (Continued from page 9) mediate families of Aimerican residents in the Philippines; (2) re-entry outside of the quota of Americans who had established permanent residence in the Philippines prior to independence; (3) the entry for an indefinite stay of Americans who may qualify under the "international traders" provisions of the Philippine imlmigration law. This covers Americans entering to represent American business interests and includes immediate members of their family. Under the provisions of HR 5856 commonly known as the Bell Act there is a further waiver of quota requirements in that American citizens who maintained actual residence in the Philippine Islands for 3 years immediately prior to November 30, 1941 may enter outside of the quota at any time between July 4, 1946 and July 3, 1951. This exemption includes American citizens' wives and unmarried children under 18 years of age. The saime law provides for the conclusion of an executive agreement between the President of the United States and the Presiden.t, of the Philippines providing for the admission into the Philippines of an additional number of American citizens to reside for a specified period,of years. The number permitted will not be less than 1,000 annually and the period of residence will be not less than five years. Under these various provisions Americans entering the Philippines for permanent residence may range from the minimum of 500 per year to an indefinite upper lilmit of perhaps several thousand. The limitations are not burdensome if it is recalled that American residents in the Philippines in 1941 totalled less than 9,000. It is anticipated also that a treaty or executive agreement will be entered into between the governments of the United States and the Philippines exempting United States military personnel, including dependents and civilian employees, from the quota provisions of the Philippine Immigration Law. It should be emphasized that all American citizens who were actually residents of the Philippines at the time of independence on July 4, 1946 have full legal rights of residence. If they l e a ve the Philippines they may return, subject only to the requirement that they obtain a reentry permit from the Philippine authorities. This permit is normally valid for one year and may be extended if necessary. The above discussion refers prim arily to those entering for permanent residence or for an indefinite stay of considerable duration. There are no numerical restrictions on entry into the Philippines for a temporary visit although it is necessary to obtain a valid passport and an appropriate visa. American Foreign Service officers are forbidden to celebrate marriages. However, a consular officer may, when requested, act as an official witness at a marriage ceremony, provided that one of the contracting parties is a citizen of the United States and provided he has assured himself, as far as practicable, that the requirements of the law at the pl!ace of celebration have been complied with. The consular officer's activities as a witness at the marriage ceremony are strictly limited to: (a) Ascertaining the legal requirements for the ceremony; (b) Being physically present at the marriage ceremony; and (c) Issuing Form 87 (Certific'ate of Witness to Marriage) for which the official fee is $1.00 U. S. cur-. rency. Upon request, an American consular officer may authenticate the signature,of local authorities on a document of marriage when he was not a witness to the marri'asge. Authentication by a consular officer is not normally required and does not affect the validity of a marriage certificate. Philippine law requires that in the case of marriages of aliens including Americans, an official certificate must be submitted attesting that the parties are qualified to marry. This requirement may be met by individual sworn affidavits, witnessed by an American consular officer. The prompt report of the birth of children to American. parents abroad is desirable and important. The American Consulate General. at Manila is prepared to register such births. No fee is charged for this service, nlor for the issuance of a copy of Form 240, Report of BirthChild Born Abroad of American Parent' or Parents. Following are the principal prerequisites to registering a birth: (a) The report should be executed by one of the parents, by the attending physician, or by the nurse. (b) Proof of American citizenship of at least one of the parents must be presented. (c) If possible, a certificate of the attending physician should be presented. If this document is not available, a birth certificate issued by the local authorities should be furnished. The registration. certificate is important in substantiating clailms to American citizenship of persons born abroad of American parents. Consular officers are charged with reporting to the Department of State, the deaths in their districts of American citizens. An official forni has been. established for the purpose. The information for such reports is usually furnished by near relatives of the deceased, close friends, or in the absence of either, by local authorities. The presentation of an official certificate of death issued by the appropriate Philippine authorities, the verdict of a coroner's jury, or a certificate by the attending physician are documents usually required to be filed in support of the consul's statement of the cause of death. The official consular report of death often proves helpful to relatives of la deceased American in the collection of insurance and in the administration of his estate in the United States. Uncle Sam-Merchandiser... (Continued from page.13) of the Philippine government, President Roxas, Vice-President Quirino, Secretary Ozaeta, and Secretary Abello; on behalf of the United States government, Ambassad'or McNutt, Assistant 'War Secretary Peteirson, Foreign Liquidation Commissioner McCabe, and FLC Central Field Commissioner Vogelback. This sale to the Philippine government disposes of the last surplus p)roperty,owned by the United States government in the Pacific area, and, in fact, anywhere in the world outside continental United States and Hawaii. No restrictions are placed in the contract on the Philippine governmen.t's right to use or to dispose of the surplus property or of the obliga. tions assumed from the United States government, with the exception that P200,000,000 worth of surplus goods must be used for rehabilitation purposes, $hs required in the Tydings act. It is further specified that the property may not be sold in, the United States. Through this transaction, the Philippine government acquires one of the chief supplies of surplus property for possible disposal to countries which are still in the market for such materials. 20 The American Chamber of Commerce Journal September - October, 1946

Page  21 NEWS AND NOTES F. H. Stevens & Co., located in El Hogar Filipino Bldg., represent the following American companies:Smith, Kirkpatrick & Co. (textiles and glassware), Hallicrafters, Inc. (radios, receivers and transmitters), Lyon Metal Products (steel furniture and shop equipment), Watson Manufacturing Co. (steel filing cabinets), Fraar & Hansen (electronic equipment). The officials of the company are Fred Stevens, president; Manuel Camus, vice president; B. Lamagna, secretary and acting manager. Otto Goebel, for many years with the PaCific Commercial Co., has recently joined the organization as sales manager. * * * J. E. Redcay, air conditioning and refrigeration engineer for York Corporation, arrived in Manila on September 20, 1946. He will make his headquarters with the Atlantic, Gulf and Pacific Company (220-224 Regina Bldg.), distributors for York products in the Philippines. Mr. Redcay comes to the Philippines after several years experience in Brazil, Bahamas and British West Indies, where climatic problems are similar to those in this country. F. S. O'Brien, president of the Far East Commercial Co., Inc. recently returned from the United States. He announces that his company has been appointed the exclusive purchasing agent in the Philippines by the American Import Company of San Francisco, and will enter actively into the buying of such local products as rattan, reptile skins, sea-shell, bamboo and coconut products, buntal and calasiao hats, etc. Among the exclusive agencies held by the Far East Commercial Co., are the Mennen Company, Zellerbach Paper Co., Julius Rothschild & Co., Arnot Office Steel Furniture, Rice Stix Dry Goods Co., and others. * * $ The International Business Machines Corporation of the Philippines is the successor to the Watson Business Machines Corporation of the Philippines. With offices located in the Regina Bldg. (Rooms 206-210), the company deals exclusively in the products of International Business Machines Corporation. T. Kevin Mallen, pre-war manager of the local company, has been promoted to the position of general manager for the Far East. The present manager is Ramon V. del Rosario. During Mr. del Rosario's absence in the United States, Ernesto D Guzman, service supervisor, is acting manager. Alfred C. Davis, manufacturers' representative, left recently on a business trip to Shanghai. Mr. Davis is the Far East representative of John Graham Co., Inc. of New York (hardware lines) and the Ild Electric Ventilator Co. His offices are in the China Bank Bldg. * * * After one year of active operation in the Philippines, the Williams Equipment Co. of Honolulu plans to incorporate its Manila branch under the laws of the Philippines. This change in organization will take place January 1, 1947. Robert J. Newton, present Manila manager, will be the vice president and general manager of the new corporation. Other members of the staff of this company are Erwin Vorster (office manager), David Ellis (servicing department), Wally King (manager of the retail store and sporting goods), Lee Barnes (wholesale department), Ben Hagens (Cebu office). Among the chief agencies held by this company are Hobart Manufacturing Company (hotel and restaurant supplies), Barker Brothers (hotel furnishing), Wilson Sporting Goods, Evinrude Outboard Motors, Servel Kerosene and Gas Appliances. Demand TRIBUNO America's outstanding VERMOUTH For Perfect Cocktails SOLE IMPORTE'RS: FEPTCO FAR EAST AND PACIFIC TRADING CO. A. SORIANO Y CIA. General Managers Banco Hipotecario Bldg., Manila Let us solve your printing problems LETTER HEADS INVOICES STATEMENTS RECEIPTS STOCK CARDS LEDGERS ACCOUNT BOOKS TONG CHEONG SON, INC. PRINTERS. BINDERS * TYPE FOUNDERS Operated by AGE PRINTING CO. 321 Barbosa, Quiapo The American Chamber of Commerce Journal September- October, 1946 21

Page  22 Bibliography of-... (Continued from page 18) Under Roxas. Sunday Post Magazine, 1: 4, 19-20, May 26, 1946. Summarizes the pre-election commitments of Roxas and claims he has "given every clear indication that he means to stand" by those commitments. Among these are: cooperation with the United States, economic rehabilitation of the Philippines, encouragement of American capital, and vigorous nation'aism. "One likes to look back on the personal history of the President-Elect and in doing so discover that one of the basic drives of his political career has been a vigorous and challenging spirit of nationalism." LOPEZ, SALVADOR P. You Can't Eat Culture. Sunday Post, Magazine Section, 1: 1, 4, May 19, 1946. What place is there amid the bleakness of the human spirit for the simple joys of living, for sweetness and light? MALLARI, I. V. Jesus Barrera, Champion of the Tao. Nation, 2: 8 -9, 26, March 1946. "In his preoccupation with the welfare of the tao, Judge Jesus Barrera is very much the son of his father, the late Dr. Marciano Barrera, who, like Abou Ben Adhem, loved his fellow mortals-to the chargrin and to the surprise of his relatives and friends. For the Barreras, like the Alimurongs to which Dr. Barrera's wife belonged, are among the landed gentry of Pampanga. And Pampanga was - as it is still!! a stronghold of caciquism, where a landowner is not supposed to speak on equal terms with his ten;ants." Judge Barrera is President of the Democratic Alliance, whose objectives are: "to curb the power and policies of the fascist vested interests, which jeopardize the national welfare; to increase agricultural production...; to enforce the eight-hour working day; to give tenants an eequitable share in the harvest; to guarantee equal opportunity to all workers...; etc." McNUTT, PAUL V. Memorial Address, May 30, 1946 Manila Times, 1: 2, May 31, 1946. - Defines the goals which the living and the dead fought to preserve in prospect as: "the right of men, of all men, to live in contentment and happiness, to retain the products of their work, to maintain themselves and their children' in health and security, to speak their minds freely, to worship freely, and finally to value each life as worthy of its creation and to give each person the respect and the dignity that is owned to the immortal soul." Shows the implications of these goals for fu ture Philippine-American relations especially 'after July 4, 1946. Our "Mickey Mouse Money" Problems. Am Ch Cor J, 22: 10, Feb. 1946. A critical analysis of two plans for the settlement of the complex financial transactions that were consummated during the occupation, namely: The U. S. High Commissioner Plan and the Philippine Congress Plan. The HC plan sets up a scale of relative value between the two currencies at different times that would apply to all transactions, while the PC plan leaves the determination of the relative values to court action in each case. Philippine Economy, - Past, Present, and Future. Am Ch Cor J, 22: 10-11, April 1946. Describes the effect of "four distinct shocks" that Philippine economy has suffered within the short span of five years since Pearl Harbor: the Japanese conquest which immediately stopped the foreign trade; three years of Japanese occupation which resulted in the destruction or confiscation of economic plants and the starvation and demoralization of the people; the coming of the American Armp and the sudden rapidly increasing amount of currency together with the entry of the Army personnel in local markets as buyers of considerable power. The total effects of these are destruction, demoralization, unemployment, and inflation, the four biggest problems and public enemies of the Philippines today. Philippine Gold Mining Companies. Am Ch Com J, 22: 14-17, April 1946. Showing for each of the 32 mining companies: date of incorporation; capitalization; property: management; and ore reserves; dividend records - number of shares issued, par value, and dividends in 1937, 1938, 1939, and 1940. Philippine Trade Relations Act of 1946 (Bell Act). Mani7a Times Supplement, 1: 1-16. May 24, 1946. Known as "Bell Bill" or technically as Public Law 371 (79th Congress, U. S., Chapter 24, 2nd Session, H. R. 5856). The Public Challenges the Syndicate. Nation, 2: 17, 34-35, March 1946. Tells about the organization of the Philippine Chamber of Commerce Syndicate, a pool of well-finaxced Filipino businessmen, whose purpose is to break the black market. How far and in, what manner will the Syndicate take the consumer's welfare into consideration? QUIRINO, I ELISEO. The NEPA and the Commonwealth...The Commercial and Industrial Manual of the Philippines, 1937-38. Manila, Pub lishers Incorporated (c/o Philippine Education Co.), 1938. p. 68-69. Describes the story, organization, and purpose of the National Economic Protectionism Association which was founded in 1934. Review of the Philippine Mining Industry. Am Ch Cor J, 22: 13, April 1946. Summary of the facts as published in the Philippine Mining Yearbook of 1941 by the Chlanber of Mines of the Philippines: gold production, 1935-1940, P31,692,620 - P78,308,289; number of workerslaborers, 42,931, officers and employees, 1,345; total payroll, P5,178,502; base metal production: copper concentrates, 7,957 tons valued at P3,338,635; copper ore, 29,874 tons valued at P945,905; chrome ore, 186,002 valued at P2,612,192; lejd zinc, 1041 tons valued at P118,008; manganese ore, 52,166 tons Valued at P1,420,389; iron ore, 1,236,206 tons valued at P5,564,992; total base metal production, 1,513,246 tons valued at P14,009,121. All these figures for 1940. REYES, NARCISO G. An Innocent Abroad. Philippine-American, 2: 30-33, May 1946. A Filipino's reaction to off-hand and sweeping judgments of critics abroad who, while critical of things Philippines, nevertheless are oblivious of things at home which may be a good deal worse. ROXAS, MANUEL A. Inaugural Address as President of the Commonwealth of the Philippines, May 28, 1946. Republic of the Philippines, July 4, 1946, Independence Souvenir. Manila, (No publisher listed) 1946. p. 20-23, 34. Emphasizes the necessity of every Filipino's going to work to repair the damage done by the war, to help re-establish Philippine economy on a self-supporting basis, to observe law and order, and to look toward the future with confidence. Paints a bright prospect of close cooperation with America in the attainment of permanent peace. ROXAS, MANUEL L. Industrialization-But Wither? Evening News, Saturday Home Magazine, 1: 5, May 11, 1946. Charts a course for economic planning that will "implement our efforts in the uplift of our agrarian population long wallowing in the mire of misery." "A progressive agrarian economy needs cheap fertilizers, insecticides, labor saving devices not only to do farm chores, but for the preparation and preservation of farm products, other gadget and industrial materials that will help take drudgery out of farm life-and hence, cheap power." TEODORO, PEDRO E. What Amer 22 The American Chamber of Commerce Journal September. October, 1946

Page  23 icans Think Today. Philippines Free Press, 37: 12-14, May 25, 1946. Takes up American foreign policy, relations with Russia, and communism, and the attitude of the American public toward these problems. TEODORO, PEDRO E. What Do Americans Think Today? Philippines Free Press, 37: 4, 17, May 18, 1946. Presents a concise summary of what Americans are thinking about politics, peace, strikes, public services, food conservation. TY, LEON O. Disputed Acres. Philippines Free Press, 37: 5, 19, March 9, 1946. Tells how the "Japanese abaca plantations in Davao whose production constituted 95 per cent of the world's total output has become a varietable 'apple of discord' between the United States and Philippine governments. In addition, they have proved, to be a source of bitter disappointment to hundreds of landhungry Filipinos who had dreamed of becoming heirs to the lush abaca fields." TY, LEON O. Shadow Over "Happy Valley." Philippines Free Press, 37: 8, 13, February 23, 1946. Describes Koronadal Valley in Cotabato, once flourishing, and tells how settlers are distitute but undismayed. VEGA, CELESTINO M. Rice. Sunday Post, Magazine Section, 1: 2, May 19, 1946. Feas that starvation will continue to plague us unless we mechanize our agriculture. Cites figures to show that our population of 18 millions consume 9 million tons of rice, less than half of which could be produced locally with our primitive methods of cultivation. DE VERA, JOSE V. Food Production Campaign. Manila Courier, Sunday Special Edition, 1: 3, May 26, 1946. PA agricultural expert, Inocencio Elyda, urges diversified farming in the Philippines in the second of a series of articles on the subject. Re commends practical steps to improve the quality and volume of production of crops and livestock. What of the Cooperatives? Philippines Free Press, 37: 5, 16, May 18, 1946. Describes what happened in the past in order to show that present cooperatives a r e "a mockery." Quotes a lengthy statement by Santiago Manongdo, ECA researcher. What Strikes Mean to You. Philippines Free Press, 37: 2-3, March 30, 1946. Records the unfavorable reaction of a number of Manila residents against strikers who assert that they "don't really deserve Wage boosts." t - - - - -- ~- -- - - - -- - ~ - - - Your Money!.... Your Big Capital! How to keep it safe? How to make a SOUND and PROFITABLE Contact those economic-minded capitalists have bought lots from us. INVESTMENT?... and housewives who I ONLY P4.50 per sq. m. and up We sell beautiful homesites from 300 to 5,000 sq. m. payable 20% down & the balance in 60 monthly installments. MAGDALENA ESTATE, Inc. 211 Consolidated Investments Bldg. Plaza Goiti, Manila. I -.. I -- I Il It's Manila's favorite... The FAR EAST AMERICAN COMMERCIAL COMPANY, INC. IMPORTERS & WHOLESALERS OF 0 STEEL OFFICE FURNITURE OFFICE SUPPLIES 0 TEXTILES MENNEN PRODUCTS HARDWARE & BUILDING MATERIALS EXPORTERS OF NATIVE PRODUCTS Philippine Curios & Novelties Third: Floor, Yutivo Bldg. Dasmnrifias Street Cable: "AMEREAST" Manila FEPTCO FAR EAST AND PACIFIC TRADING CO. A. SORIANO Y CIA. General Managers Banco Hipotecario Building, Manila I I -- The American Chamber of Commerce Journal September -October, 1946 23

Page  24 I - - - - ~ - A& When you want GENERAL REPAIR PERIODIC CHECK UP OILING CLEANING GUARANTEED ~SERVICE d call us! -\ When the efficiency of your office force is running low the trouble may be lurking in the office "\ tools it is using. It costs less than / you ever imagined to put them in ship shape at all times. Call for our representative to arrange for 7/ a regular check-up service. 0 1 KOPPEL (PHIL.) INC. MACHINERY & SUPPLIES R A I L WA Y EQUIPMENT Exclusive Dealers of: PRESSED STEEL CAR CO., INC. CATERPILLAR TRACTOR CO. JOHN DEERE PLOW CO. R. G. LeTOURNEAU, INC. FRICK COMPANY JOHN A. ROEBLING'S CO. ETC., ETC. TRACTORS PLOWS CULTIVATORS POWER UNITS ELECTRIC PLANTS ICE PLANTS ARC WELDERS WIRE ROPE LOGGING EQUIPMENT ETC., ETC. OFFICE AT: BOSTON & 23rd STREETS, PORT AREA, MANILA Branches: ILOILO, CEBU, BACOLOD Agents: DAVAO, COTABATO, ZAMBOANGA - --- ~ ---~ — ------ — ~- ---- -~~ -— ~ ~~~ — -~~~ -- - MANILA SALES COMPANY OFFICE EQUIPMENT & SUPPLIES -REPAIR DEPARTMENT 650 Evangelista Corner Raon I~~~~~~~~~~~~ i Since 1887 our advantages of superior workmanship, facilities and experience are evident in the numerous printing jobs we have done for business leaders. CARMLO E BAUERMANN, INC OFFSET LITHOGRAPHERS * PRINTERS 2057 AZCARRAGf * MANILA, PHILIPPINES 24 The American Chamber of Commerce Journal September - October, 1946

Page  25 Manila Stock... (Continued from page 15) pated and the total number of shares exchanged: Surigao Consolidated Big Wedge Mindanao Mother Lode Atok Gold United Paracale Batong Buh!ay 9 days 203,121 8 " 27,725 7 " 57,913 6 " 41,333 5 " 67,250 5 " 630,000 2 centavos over August, lost ground with final sales (on the 13th) at.50. After holding steady a,t.65, Atok Gold dropped 3 centavos, final sales on the 14th being at.62. United Paracale held steady at.12, while Batong Buhay sold on the 14th at a low of.0068 (100,000 shares) and.007 (50,000 shares). Commercial and Industrial Philippine Racing Club held steady at P1.00, sales taking place on 7 days during the period. San Miguel led in sales value (P23,134). Sales of 34 shares were made on the 2nd at the August high of P276. Subsequent sales on 4 days were at P275. In Sug'ar, Central Bais marked up sales of 42 shares at P540, P10 up from August. 185 shares of Central Carlota were sold at P105. Bank of the P. I. exchanged hands on 2 days at P50, involving 108 shares. NEW BIOGRAPHICAL ENCYCLOPEDIA OF THE WORLD Information has been received that the 1946 edition of the Biographical Encyclopedia of the World is now available. The new book contains 20,000 biographical sketches of leaders of every field of activity in every country in the world. The new edition gives biographical coverage to more Soviet leaders, more Chinese officials, and more Latin-American personalities. There is a complete alphabetical index, but the biographies are axranged by fields of activity. These fields of activity are "Government," "Business," "Law," "Medicine," "Religion," "Education," "Science," "Literature," "Music," "Radio, Stage, and Screen," "Art," "Engineering," "Armed Forces," and "Other Fields." There are over 1200 pages and the price is U. S. $25.00 when ordered from the publishers, Institute for Research in Biography, 296 Broadway, New York 7, N. Y. The leading five stocks in cash value of transactions were: Surigao Consolidated. P78,211 Mindanao Mother Lode 29,510 Atok Gold........... 25,890 Big Wedge.......... 20,686 Consolidated Mines... 8,060 Surigao Cionsolidated was the dominating issue for the period, accounting for 37% of the total sasles value for this class of stocks. After reaching a high of.40 on the 3rd (for 65,500 shares), a slight falling off period followed which brought it down to.38, but less than 10,000 shares were sold at this figure. Final sales on the 14th were at.38 (6,000 shares). Big Wedge showed a steady gain lover August, sales being made at.75 at the end of the period, a gain of.03 over August's last sales. Mindanao Mother Lode, after gaining -1 UNION PLUMBING COMPANY -PLUMBING CONTRACTORSInstallations-Repairs-Supplies Office: 1883-B Azcarraga (Near Old Bilibid Gate) "Our staff of Experienced Plumbers are at your disposal to give you the best Plumbing Service" I PV I _ L DE LA RAMA LINES LEADERS IN THE SHIPPING INDUSTRY EXPRESS CARGO -LINER SERVICES TO AND FROM THE UNITED STATES CONNECTING AT MANILA WITH OUR INTER-ISLAND VESSELS THROUGH BILLS OF LADING ISSUED TO ALL PRINCIPAL PHILIPPINE OUTPORTS THE DE LA RAMA STEAMSHIP CO., INC. HONGKONG & SHANGHAI BANK BLDG. TEL. 2-82-04 NEW YORK * SAN FRANCISCO * LOS ANGELES SHANGHAI * HONGKONG I that tastes like dW3 when you've tried Bottled in the U. S. A. fine American Whiskey * Preferred throughout the Americas Sole Importers (FAR EAST & PACIFIC TRADING CO.) A. SORIANO y Cia. General Managers. Banco Hipotecario Bldg. - Tel. 2-79-61 - Manila -~ -- The American Chamber of Commerce Journal September- October, 1946 26

Page  26 Home of EVERSHARP in the Philippines! * All the thrilling pen and repeater-pencil styles that are distinctively EVERSHARP.. up-to-date streamlined stamping of your name in gold on your EVERSHARP or on your gift of an EVERSHARP which you wish to personalize... the expert repair setup back of the EVERSHARP guarantee-right here in Manila - which you have a right to expect to keep your EVERSHARP in continued good working order... all this, plus the traditional courteous service which has always made shopping a pleasure in our spacious store, bespeak welcome to you at the "Home of EVERSHARP in the Philippines' —at PHILIPPINE EDUCATION! " -- _... AN OPPORTUNITY FOR EX-INTERNEES, EX-PRISONERS OF WAR AND THEIR FAMILIES TO GIVE PRACTICAL EXPRESSION OF THEIR UNDYING GRATITUDE FOR HELP GIVEN THEM IN THEIR TIME OF GREATEST NEED. Join the ESCODA MEMORIAL FUND Full details can be obtained from Clyde A. Dewitt, 7th Floor, Soriano Bldg. E. B. Ford, Philippine Trust Co. Aubrey Ames, Standard-Vacuum Co. R. S. Hendry, 8th Floor, Trade & Commerce Bldg. H. A. Linn, Manila Daily Bulletin or mail your check made out to the "ESCODA MEMORIAL FUND" direct to E. B. Ford, c/o Philippine Trust Co., Manila I --- -- 26 The American Chamber of Commerce Journal September- October, 1946

Page  27 Books on Business For the benefit of our readers, most of whom are business men and women, attention is called to the fact that local supplies of books that are useful to the business executive are more plentiful and up-to-date than is generally known. The following lists of titles that are immediately available has been furnished by two well-known establishments. The Philippine Education Co., 1104 Castillejos, offers the following: Donald: Handbook of Business Administration................. P15.00 Schell: Technique of Executive Control..................... 5.65 Scott & others: Personnel Management................. 11.25 Tead & Metcalf: Personnel Administration................ 10.00 Howard: Methods of Sales Promotion................... 6.25 Hogadone & Beckley: Merchandising Techniques........... 4.60 Diemer: Factory Organization and Administration.......... 11.25 Chapin: Credit and Collection Principles & Practice......... 12.50 Braun: The Settlement of Industrial Disputes............... 8.75 Hoffman: Public Speaking for Business men.............. 8.75 Killough: International Trade.. 11.25 Balderston: Management of an Enterprise.................. 11.75 Pelo (Ed.): Executive's Desk Book....................... 17.25 Lasser: Business Executive's G uide....................... 7.50 The Manila Book Co., 73 Escolta, offers the following: Teal: Modern Business Encyclopedia....................... P10.00 Agnew et al: Outlines of Marketing........................ 9.50 Robinson: Textbook of Office Management................. 9.50 Torson: A Successful Business G irl........................ 5.00 Tichenor: Energy and Business Values...................... 6.00 Rosenberg: Business Mathematics 6.60 Morris: Encyclopedia of Synthetics & Substitutes............ 25.00 Schaaf: Mechanics Encyclopedia 12.00 Mooreland: Practical Guide to Successful Farming.......... 12.00 I * Business of all kinds have needed a truck like the STUDEBAKER for years. It's designed specifically to haul your loads at the lowest cost per ton per mile... to last longer, and to cost you less than you have been used to paying. * For the Philippines STUDEBAKER is the ideal all-around truck! * Now available through the BATAAN MOTOR CORPORATION, distributors of STUDEBAKER cars and trucks in the Philippines. Complete with parts and service facilities. -1 BATAAN MOTOR CORPORATION 13th & Atlanta Streets Port Area, Manila Subscribe to the JOURNAL -I September - October, 1946 27

Page  28 STATISTICS ON BANKING RESOURCES, LIABILITIES, AND MISCELLANEOUS ACTIVITIES (Prepared by the Bureau of Banking from reports submitted by 11 operating commercial banks) WEEKLY REPORTS ON IMPORT AND EXPORT BILLS Week Ending Import Bills 1946 Received March 16 P 6,550,248 23 13,714,585 30 7,072,406 April 6 7,390,625 13 11,029,311 20 3,087,727 27 5,632,203 May 4 17,129,231 11 13,867,821 18 11,425,466 25 10,138,733 June 1 5,064,717 8 17,698,800 15 6,523,784 22 8,795,388 29 10,543,860 July 6 5,811,400 13 7,451,609 20 5,555,123 27 11,522,997 Aug. 3 9,956,298 10 4,754,496 17 7,743,261 24 5,919,287 31 9,058,750 Sept. 7 7,228,960 Totals-P230,667,186 Export Bills Sent Abroad P 1,872,606 872,710 1,247,525 1,854,480 2,151,753 229,916 685,835 519,059 469,293 168,434 47,624 224,435 193,614 136,896 838,767 74,154 121,085 115,661 662,498 730,322 429,865 2,084,460 947,671 1,705,999 1,359,736 846,054 P20,590,452 RESOURCES Loans, discounts and overdrafts...... Investments......................... Due from Head Office (foreign banks) Due from other banks in the Philippines Due from banks outside the Philippines Cash on hand........................ Balances in clearing account.......... Other resources not included above.... Week Ending Aug. 3, 1946 P189,272,433 29,793,526 65,094,584 41,792,003 109,714,060 151,766,197 33,500,000 118,290,831 Week Ending Aug. 10, 1946 P191,098,244 29,793,826 63,549,403 42,591,975 113,701,585 155,856,549 33,000,000 120,840,153 Week Ending Aug. 17, 1946 P188,818,277: 29,796,326 4 61,498,910 '42,789,020 116,034,032 156,994,324 32,500,000 121,152,522 P749,583,411 Week Ending Aug. 24, 1946 P197,052,149 29,797,692 56,832,375 48,550,040 116,085,671 165,058,607 39,000,000 121,786,208 P774,162,742 Week Ending Aug. 31, 1946 P199,807,312 39,800,713 52,445,881 50,515,535 110,645,737 157,884,739 38,500,000 125,343,241 P774.943,158 Week Ending Sept. 7, 1946 P195,273,966 39,800,713 41,991,709 45,504,149 115,772,584 161,822,164 33,500,000 125,277,602 P758,942,887 Total resources........ P739,223,634 P750,431,735 LIABILITIES Demand deposits.................... Savings deposits.................... Time deposits....................... Deposits of public funds............ Due to Head Office (Foreign Banks).. Capital-domestic banks............. Surplus, reserves and undivided profits Due to other banks in the Philippines Due to banks (Clearing House depository)........................... Due to banks outside the Philippines Other liabilities not included above.. P220,476,360 112,994,457 9,133,203 123,277,034 31,678,341 33,414,400 12,046,972 5,580,600 33,500,000 8,087,195 149,035,072 P220,521,729 114,800,047 9,394,343 129,019,984 32,026,186 33,414,400 12,083,122 5,513,681 33,000,000 10,579,042 150,079,201 P221,506,332 115,593,298 9,409,912 130,709,569 31,746,829 33,414,400 12,057,965 5,526,608 32,500,000 7,473,709 149,644,789 P229,226,656 116,605,054 9,520,232 129,845,576 41,066,188 33,414,400 12,110,291 4,520,943 39,000,000 8,001,370 150,852,032 P774,162,742 P229,607,710 117,301,131 9,664,346 123,987,232 40,345,657 33,414,400 12,210,469 5,541,558 38,500,000 7,704,984 156,665,671 P774,943,158 P219,365,415 118,252,562 9,863,746 127,850,423 40,039,839 33,414,400 12,234,147 5,123,401 33,500,000 7,574,949 151,724,005 P758,942,887 Total liabilities........ P739,223,634 P750,431,735 P749,583,413 MISCELLANEOUS Exchange bought since last reportspot............................ Exchange bought since last report - future.......................... Exchange sold since last report-spot Exchange sold since last report-future Debits to individual accounts since last report.......................... Trust department accounts: a. Court trusts................. b. Private trusts................ c. Corporate trusts.............. Im port bills........................ Export bills........................ Letters of credit issued since last report P 8,224,615 P 12,679,097 P 5,952,698 P 11,384,374 P 9,785,928 P 8,713,367 2,594,558 11,347,705 3,296,668 2,984,752 11,400,510 2,761,625 402,500 10,591,542 1,674,220 807,500 11,514,951 3,399,287 807,000 14,324,304 1,994,800 1,530,875 11,545,523 4,045,684 89,121,519 100,458,723 81,216,713 134,422,466 105,969,057 87,666,724 1,089,776 3,803,475 7,582,633 9,956,298 429,865 10,838,259 1,090,142 3,797,935 7,582,633 4,754,496 2,084,460 9,025,265 1,152,288 3,837,755 7,582,633 7,743,261 947,671 6,190,215 1,173,618 3,857,731 7,582,633 5,919,287 1,705,999 8,885,576 1,189,521 3,779,155 7,582,633 9,058,750 1,359,736 14,583,183 1,183,485 3,783,711 7,582,645 7,228,960 846,054 7,752,805

Page  1 0 Q 0) Iz '-Z "::t C;;o "It IZ q ll llt t-.4 Iz 6-4 llt '11 a Iz Iz P4 ll 3 PIC "!t C V-4;.o (W 4 0 1'14, LOU =C 0* oz

Page  2 I PHILIPPINE INDUSTRIAL EQUIPMENT --— PIECO — SUPPLIERS OF CO. MACHINERY * EQUIPMENT FOR * SUPPLIES ji SUGAR CENTRALS POWER PLANTS CONSTRUCTION & - MINES FACTORIES GENERAL SAWMILLS - BUILDINGS INDUSTRY 0 SERVICE * INSTALLATION * MAINTENANCE * REPAIRS ENGINEERING * DESIGN * APPLICATION * ESTIMATES PLANT & 71 TO BODEGA: 84 CALLE CRISTOBAL, PACO TEL. 8-62-01 EXECUTIVE & SALES OFFICE: BANCO HIPOTECARIO BLDG., MANILA TEL. 2-89-36 CABLE ADDRESS "IECO" MANILA Every Month the JOURNAL brings you important statistics and informational articles Subscribe p5.00 for I Now! r2 issues

Page  3 THE AMERIC At,Iff9F COMMERCE L Vol. XXII, No. 7 NOVEMBER, 1946 Table of Contents Page War Damage Commission Begins Work.......... 5 Commercial Broadcasting in Manila by Mario Chanco 6 New York Thinks About the Philippines by William B oericke.................................. 8 The New Tax Laws by Panfilo Ramos........... 9 Editorial: Philippine Trade and War Damage Payments.. 10 Organization, Rules, Regulations of the Philippine War Damage Commission.................. 11 Know the Law!............................... 12 Manila Stock Exchange Report (September 16 to October 31)............................... 13 Bibliography of Pcst-War Economic Problems of the Philippines by Pedro T. Orata.............. 14 Bank of America To Open Manila Branch........ 16 The Supply of Business Enterprise by Clare E. G riffen................................... 18 The Escodas in America........................ 19 Cost of Living Index, 1946...................... 24 Purchasing Power of a Peso, 1946.............. 24 Foreign Trade of the Philippines............... 27 Statistics on Banking Resources and Liabilities.. 28 Weekly Report en Import and Export Bills of Exchange................................. 28 0= __ I B. GABERMAN STOCK BROKER 328 Dasmarifias Member MANILA STOCK EXCHANGE 1 ' ' '' -" AMON TRADING CORPORATION Successors to M. VERLINDEN MANUFACTURER'S AGENTS * IMPORTERS * EXPORTERS Offices: 308-310 AYALA BLDG. (Formerly National City Bank Bldg.) Sales Dept. 305-307 AYALA BLDG. Tel. 2-75-33 MANILA Exclusive Representatives In The Philippines, For The Following Manufacturers & Exporters: ATELIERS DE CONSTRUCTION MECANIQUE DE TIRLEMONT "Lafeuille" Cristallizer Pan AMTEXCO TRADING CO., S. A., (Belgium) Vitrified Ceramic Floor Tiles, Glazed Walled Tiles, Wall Papers, Marbles, Firearms SOCIETE ANONYME ETERNIT, (Belgium) Asbestos Cement Sheets, Asbestos Cement Pipes, "Eternit Granite" asbestos Sheets MAISON P. MATHIEU, S.A., (Belgium) Steel and Wire Products GLACES ET VERRES (GLAVER), S.A., (Be!gium) Window Glass, Plate Glass, Sheet Glass, Figured Rolled Glass A. SHAW & SON, (England) Glazier's Diamonds, Glass Cutting Tools AUGUST STENMAN A.B., (Sweden) Hardware TORSVIKS SAGVERKS AKTIEBOLAG, (Sweden) Wallboards "Hernit" THE ARMCO INTERNATIONAL CORP. (U.S.A.) Stainless Steel Products BIRKS-CRAWFORD LTD. (Canada) Preserves STE. VERRERIES D'EXTREME ORIENT (Indo-China) Glasswares and Bottles PARKER KALON CORPORATION (U.S.A.) Fastening Devices HOGANAS - BILLESHOLMS AKTIEBOLAG Refractory Products. STOCK & INDENTS.~~~~~~~~~ The American Chamber of Commerce Journal November, 1946 3

Page  4 _ SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and EXCLUSIVE DISTRIBUTORS of HIGHEST-PURITY OXYGEN and ACETYLENE GASES "'NATIONAL" CARBIDE *, Z.: WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS of "SUPERFLAME" BOTTLED GAS and "TAPPAN" GAS-STOVES with Complete Installation and service Facilities OFFICE and PLANT: Byng St. Mandaluyong (near Mandaluyong Bridge and Shaw Blvd.) Tel. 8-72-80 - r. I I I sl I Id B I I I ePL IN IMIUXIN m ~ a^SODA',X!... THE PERFECT MIXER Now available in any quantity at any time. 1 L Bottled at the'ROYAL SOFT DRINKS PLANT Owned & Operated by SAN MIGUEL BREWERY YOUR CUARANTY OF UNEXCELLED QUALITY 4 The American Chamber of Commerce Journal November, 1946

Page  5 FRANK A. WARING, Chairman~n JOHN S. YOUNG, Comm~issioner~ FRANC~ISCO A. DELGADO, Commissioner WAR DAMAGE COMMISSION BEGINS WORK With the arrival -of two of the war damage commissioners (Dr. Waring and Judge Delgado) in Manila with a large portion of the permanent American staff, public interest in the payment of war damages has been re-aroused. Headquarters of the Commission have been established in the Aguinaldo Building on Juan Luna St. In addition to the Americans who have come out with the Commissioners, it is anticipated that a large staff of Filipinos will be employed. Applicants for positions began to flock to the Aguinal(lo Building even before skeleton office equipment was installed. One of the first acts of the Commission has been to announce public hearings, beginning on November 15. The purpose of these hearings is to give local interested parties an opportunity to express their views on the methods established for filing and adjudicating war damage claims. From the testimony given at these hearings, the Commission hopes to obtain information and suggestions that will be mutually beneficial to themselves and to the claimants. The hearings will be held in the Session Hall of the Philippine Senate, City Hall. The Commission is particularly anxious to save time in these public hearings by limiting testimony to representatives of groups and associations, such as chambers of commerce, ship owners, labor, property owners, planters, banks, lawyers, newspapers, hospitals, charitable organizations, etc. Copies of the Commission's rules and regulations may be obtained by representatives of such groups by requesting them from the Commission secretary. So far, however, most of these rules 'and regulations pertain solely to the internal administration of the Commission and are not considered as matters for discussion. So the stage is set for the commencement of the great drama for which the Philippine public has been so eagerly waiting - the payment of war damage claims by the government of the United States. According to a press release of the Commission, "the Philippine Rehabilitation Act called for unprecedented action...insofar as the United States is concerned." The action is unprecedented so far as the prospective recipients are concerned also. But welcome never-the-less. JOHN SNURE, JR. Director, Information Office ANGUS R. SHANNON, Chief Exameier PAUL D. SHRIVER, Chief Counsel 'lle Amprican Chamber of Commerce Journal Novemler, 1946 5

Page  6 Commercial Broadcasting in Manila by MARIO CHANCO Until about seven months ago, commercial radio was merely a subject for newspaper columnists to write wistful articles about. Only two stations had been in operation, -KZFM (operated by the U. S. Information Service) and WVTM (operated by the American army). Numerous business firms, including at least five new American entities, had visited KZFM's studios at the corner of Azcatrraga and Quezon Boulevard to inquire when the station would start accepting' commercials. The replies had been uniformly negative. KZFM was, and still is, government-operated. So it was with a distinct feeling of relief that big business welcomed commercial radio as soon as it opened its airwaves. Both radio advertisers and radio broadcasting executives today admit that the shortage of radios is hampering their activities to a certain extent. They point to the steadily increasing supply of radio sets, however, and the growing consciousness of listeners as a whole as being indicative of a "boom" in the airwaves, a development which they hope will eventually reach the peak now enjoyed by the American radio broadcasting industry. On one point, however, local radio has found rea son for joy: there are even more radios now in the provinces than there were at any other time. The reason for this goes back to the time of the Japanese occupation, when poverty-stricken city folk literally had to sell the skin off their backs to get the barest necessities. Most of the luxuries such as radios went to people in the provinces, perhaps the group of Filipinos that suffered the least insofar as food Was concerned. Radio sets became so much lof a drug on the market that virtually every farmer who had a few extra cavans of rice to sell could afford one or two. And with the arrival of American troops, bringing with them even more radios, that number, radio men here say, was further increased. Station KZRH, the first commercial radio station to reopen after liberation, has virtually all its top men back in harness. It returned on July 1, 1946, in time for the July 4 celebrations. At present KZRH operates on a frequency of 750 kilocycles on the long wave and 9,640 kilocycles on short wave. Owned and operated by the Manila Broadcasting Company, KZRH is an affiliated station of the National Broadcasting Company in the United States. It will also be remembered that prior to the war, KZRH had a sister station in Celhu managed by Harry Fenton, who ~later became a guerrilla leader. Final stages for the reopening of KZRH began to take form after the liberation of Manila. Following conferences between Bert Silen., prewar head, Ramon Escudero, now sales manager, and several other key studio personnel, modern equipment was purchased in the United States to replace that which the Japanese had totally destroyed. Construction of the new station on a new building (KZRH was formerly atop the Heacock Building) was a race 'against time. The Insular life Building, on which the new station was to be housed, had been badly damaged. Problems facing the engineers and construction men were enormous but work went ahead at full speed. The station met its July 1 deadline without evincing any of the terrific strain under which announcers, technicians and other studio personnel had labored. There is a predominance of Tagalog programs over KZRH, a condition which Bert Silen, the manager, is strongly inclined to encourage. Judging from the increased number of Tagalog sponsors, Mr. Silen believes Tagalog programs to be "good mediums for local advertising." The Ang Tibay program, which includes the services of a string band and several well known local stars, is about tops in local radio ratings. Other sponsors like Farmacia San Fernando are starting programs in English which boast of such local stars as Cielo Evangelista and Calinaga R'omano. The Farmacia Zamora program brings the popular prewar voices of the Mystery Singer, Martha Dizon and Mercy Hannigan. KZRH officials find that while some sponsors require all-Tagalog programs andi others English programs with Filipino artists, there are others who demand recorded programs with recorded music as the primary interest. The American Factors program and the three-hour Klim Dancing Party on Saturday evenings are good examples of this type of presentation. KZRH's news services now offers in addition to its regular newscasts the "Newsreel of the Air", a sponsorship of Pan American World Airways. There are at present six daily news periods, four of which are sponsored presentations. In the words of Nlorman Reyes, one of Mania,'s favorite prewar announcers who is now program director: "Listener response regarding rc NEWS ROOM, KZPI 6 T'he American Chamber of (ommerce Journal November, 1946

Page  7 KZRII.Al ) nl K'lr 7KZPI ('Control RoomC KZRH Control Roo,,.m cepItion has been very encouraging.... but plans are going ahead for the increase of transmitter power to greater proportions. "KZRH is doing its best to cover whenever and wherever possible events of public interest... in addition to programs which the public likes." KZPI, the first of six projected stations throughout the Philippines, was put into trial operation by the Philippine Broadcasting Corporation on July 1st, 1946. At that time, most of its equipment was still in the States or aboard ships in the Manila Bay; its studios were unfinished; its Philippine personnel new and untrained. A handful of key men direct the operation of less than half a hundred workers, all of whom have been and still are working long beyond the normal eight-hour day. Managing Director of KZPI is Norman Paige, veteran of nineteen years of stateside radio and a wellknown correspondent of the American radio networks with the American fleet in the Pacific during most of the fighting from the early days to the surrender ceremonies aboard the Missouri. Present advertising in the Philippines, according to Mr. Paige, offers a golden opportunity to Imanufacturers of nationally distributed American products to establish their name as the standard one for the eighteen million potential buyers in this new nation. These would include cigarettes, electrical equipment, fountain ipeis, home appliances. candy bars, soaps, etc. The Filipino people, he says, are ti'4de-name conscious and advertising should be aimed at exploiting this leature rather than plugging the immediate sales of the product. KZPI has found that good music is more saleable commercially here Ihan. in any place in the United States; that the peak listening hours of the people are easier to define; that news roundups have more of a value in the Islands since the people, after having been under the Jap anese yoke for over three years, are more keenly aware of its significance in their daily lives. Long term radio advertising in the Philippines must accept a new and different set of conditions and basic operating premises than. exist in the United States. And, today it appears, they will be able to get little help in their appreciation of the problems in the Islands from the local advertising agencies here who, having lost four years by the war and never having been completely cognizant of American methcds, are now completely out of touch with the experiences and rapid developement of advertising in the United States. In the field of music, the station has just inaugurated two new halfhour programs featuring music in the semi-classical and classical vein.. Four prominent Manila firms have embarked on an advertising venture completely new in Philippine commercial practices. They are sponsoring a series of weekly programs aimed at promoting Philippine music alongside the accepted classics and thereby giving Filipino musicians a much needed "break." The other program is the "Studebaker Hour of Melody," a half-hour program on Sunda,y evenings sponsored by the local distributors of Stud'ebaker cars and, trucks, aimed at presenting the music that has endeared itself to the hearts of everyone. If there is one thing that intrigues the Filipino man, woman and child, (Continued on page 20) MAIN STUDIO, KZRH I'he Amelican Chamber of C, mmerce Journal November, 1946 7

Page  8 New York Thinks About The Philippines by WILLIAM F. BOERICKE October 15, 1946 I came back to New York from Manila early in 1941, stayed a month or two, and then returned to, the Philippines. During the few weeks I spent in this country I talked to scores of men in different walks of life - bankers, business 'and professional men, taxi drivers- and I was amazed at their general lack of precise knowledge on everything pertaining to the Far East at that time. A. well known banker was incredulous when I shaid we had a prosperous gold mining industry in the Philippines. Peopl'e ordinarily well informed were horribly off on their geography, on economic conditions, and on politics. The war changed all that. Any man on the street can draw you a tolerably good map today of the Philippines. When one's son fought at Tacloban, or landed at Lingayen, or flew over Baguio, his people in the United States know the country as they never did 'before. The occupation forces have brought the Philippines right home to the United States. News from the Philippines receives attention in the daily press, although Joe Doakes has plenty to occupy his worried mind in the domestic scene, what with strikes, price control, the atom bomb, the Russian situation, and the world series. Several trained correspondents for such highly regarded newspapers as the Times and the Herald Tribune send competent well-written dispatches regularly, besides, of course, the regular AP and UP news services. These dispatches receive a good position. A recent small news item regarding the alleged discovery of uranium ores in the Philippines was publicized all over the country and brought doz-ens of telephone calls to my desk for corroboration - which I sidestepped until I had the facts. New York is interested in the political situation in the Philippines, and especially in the Huk activities, which are causing a good deal of concern here About the ability of the government to handle the disorders. Stories are circulated that robberies are frequent, that pillaging is rampant along the waterfront, and armed guards are necessary to protect property. Less space is given to the rehabilitation program, and the real progress that has been made the last six months in rebuilding and restoring trade channels. It would do a lot of good if a really first class feat ure story was released contrasting Manila a year ages with Manila today. A lot of interest appears to exist in the future of the Philippine mining industry. Here in New York Benguet - they pronounce it as thought it were a French name, Bengay - is nearly as well known as scme of the recognized Canadian mines. A very efficient distribution job of Benguet stock was done by a prominent underwriting house, after a tiff with the Ohio Security Commission, although Benguet passed the scrutiny of S.E.C. without trouble I am informed that there are now 6,000 stockholders in this company in the United States, and there 'have been rumors that it may be listed on the New York Stock Exchange. 2-Am Cham. New York.. Paculan In mining' circles there is much talk about Philippine chromite, following the news that representatives of important American companies, had sent their engineers to the Philippines to look over the situation. The drastic decline in the New York markets has dampened enthusiasm temporarily for new financing, but it is believed this will be only of short duration. Questions are continually being asked about war damage payments and when they will be made. The complexity of the problem is little appreciated by the man in the street. The general belief is that the Philippines should (be extraordinalriIy prcsperous with disbursement of the $450,000,000 under the Bell Act, Little realization is had that hearings on adjudidation of claims have not yet commenced, and a considerable period of time will elapse between the approval of a claim and payment therefor. Even less is it understood that payment of claims will be predicated upon the funds being spent in the Philippines in re habilitation work. An Iassociation of ex-internees now residing in the United States has been trying to get some action from the Philippine War Damage Commission for prior payment of claims to their members, but have met with little encouragement from the Commissioner, who states that special consideration is entirely in opposition to the basic a4ct, aid adlds that all claims must be considered toglether. The fact is that the country appears fed up with the war and little interest is manifested in past suffering of people who survived it with more or less success. This is not exactly callousness but rather 'a,n indication that present problems in the United States are of so urgent a character that one doesn't have time to consider what is past. This is precisely the attitude maintained by book publishers and magazine editors when they are offered a war story. "Interesting", they remark wearily, "well written too, but we can't sell it. The public won't buy war stories any more." Russell Hind, however, was able to get his book out recently, "Spirits Unbroken," that had to do with internment in Baguio. It is a good job, but so far hasn't entered the list of best sellers. Retail sales in the big New York stores are at an all-time high level, although recently consumer resistance has been noted in instances where prices have been kited unfairly high. An offering of Philippine embroidery was recently advertised and went over well. Deliveries of goods have been seriously hampered by the crippling trucking strike. Lifting of price control on meat will undoubtedly lead to a general abandonment of the whole policy and sho'uld result in broader and more active retailing of consum!er goods for the Christmas trade. - -~--- -- Join The ESCODA MEMORIAL FUND (See inside Back Cover) I I -, _ _ 8 The American Chamber of Commerce Journal November, 1946

Page  9 THE NEW TAX LAWS by PANFILO RAMOS (Courtesy of the Manila Daily Bulleti ) The most radical change in the new national tax structure is the proposed increase in the income taxes payable by individuals, associations, Partnerships and corporations on their net income. The income fax bill is expected to bring into the national coffers additional income of P15,771,587, or approximately 5b6% of the total expected revenue from 12 new tax bills. The office of the tax commission, which prepared the measures, justifies the increase in the rates of the income tax by recalling the imperative necessity of providing for the increased cost of the national defense, maintaining foreign relations with other countries, cost of serving the public debt and other expenses incident to the independent status of the country. Figures released by the commission show that in 1940-41, the total tax income from corporations, associations and partnerships was P6,296,091 and from individuals, P5,811,776. Under the new rates, the estimated collections would amount to P9,444,136 from corporations, associations and partnerships, and P17,435,328 from individuals. This estimate is based on the increase of the net income tax on corporations from eight per cent to 12 per cent, and increases up to 200 per cent on individuals. Under the income tax bill, the net income of an individual may be levied upon in accordance with the As compared with the present rate, it will be noted that the increases in the revised schedule range from two per cent to 300 per cent. Under the old scale only eight per cent is levied on net income which exceeds P40,000, and not more than P50,000, whereas in this bill the rate is hiked to 28 per cent, or a total cumulative tax of P10,180. According to the present income tax law, corporations may be exempted from the payment of income tax "if no part of their net income is distributed to any private stockholder or individual." As interpreted, this provision exempts corporations from the payment of income tax for any year in which no dividends are distributed to stockholders. The new income tax measure, however, would make such corporations liable to the payment of the tax on their entire profits in any year although no dividends have been declared for that year. With the exception of loan and buildings associations, all other corporations which were exempted from the payment of income tax will enjoy the same benefit under the new income tax measure. Those not liable to the payment of income tax are: (1) labor, agricultural or horticultural organizations not organized principally for profit; (2) mutual savings banks not having capital stock represented by shares, and cooperative banks without capital stock organized and operated for mutual purposes and without profit; (3) fraternal, beneficiary societies, orders or associations; (4) cemetery companies; (5) religious, charitable, scientific, athletic, cultural or educational corporations and. those dedicated to the rehabilitation, of veterans; (6) business leagues, chambers of commerce, or boards of trade; (7) civic leagues or organizations; (8) clubs organized and operated exclusively for pleasure; (9) farmers' or other mutual typhoon or fire insurance companies; (10) farmers', fruit growers', or like associations; and (11) corporations organized solely for the purpose of holding title to property. The exemption in favor of loan and building associations was withdrawn on the theory that these associations are organized to help their members build their homes, and Ibecause of their mutual character. It is proposed, however, that a six per cent income tax should be levied on them and not the ordinary 12 per cent income tax on corporations. This distinction was made in view of the fact that under the present law, such corporations are not liable to payment of the levy. The tax on non-resident aliens is hiked from eight per cent to 12 per cent. Where the net income of such non-resident alien exceeds a certain amount the rates applicable to the citizens land residents may be applied. Under the proposed rate in' the new income tax measure, the effective tax is approximately 12 per cent of the net income. Contributions or gifts to any association for the rehabilitation of veterans are considered allowable deductions from gross income under the bill. War Profits Tax An innovation introduced in the national tax system by congress is the imposition of a levy on war pro. fits arising from "unusual accumulation of wealth" as a consequence of the war. Based on the theory that individuals should not enrich themselves in times of war and nation'aJ stress at the expense of their fell'owmen, the government seeks to draw from them a portion of their war-acquired wealth so that they may "share in post-war rehabilitation, and reconstruction of the country." From this source of revenue, the government expects an additional income of P4,000,000 a year. Directly affected by the new assessment are those who (1) traded with the enemy; (2) engaged in black market operations; and (3) sold at a large profit property which escaped destruction or confiscation by the enemy. Under the war profits tax measure, every person who, during the period from December 8, 1941 to February 26, 1945, ha4 accumulated property in excess of P6,000 is required to file a return or a statement of his net worth in each of those periods, and graduated rates of tax are imposed on the increase of his wealth. The following are the graduated tax rates on war profits: Fifty per cent on the amount by which such excess is over P6,000 but not over P50,000; Sixty per cent on the amount by which such excess is over P50,000 but is not over P100,000; Seventy per cent on the amount by which such excess is over P100,000 but is not over P300,000; Eighty per cent upon the amount by which such excess is over P300,000 but is not over P500,000; (Continued on page 17) following revised schedule: Net Income From, To........ P 2,000 P 2,000 4,000 4,000 6,000 6,000 10,000 10,000 20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 150,000 150,000 200,000 200,000 300,000 300,000 400,000 400,000 500,000 500,000 700,000 700,000 1,000,000 1,000,000 2,000,000 2,000,000......... Rate 3% 6% 9% 13% 17/( 22:% 26~% 28%6 30% 32% 34% C 36% 38 40% 42% 44% 46% 48% 50% 52% 55% 60% Tire Ame ican Chamber of November, 1946 Commerce Journal 9

Page  10 COMMERCE J L Published Monthly in Manila, Philippines The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor Entered as second class matter Dec. 10, 1945 at the Post Office at Manila, P. I. Subscription rates: One year in the Philippines, P5.00; United States. $5.00 U. S, Currency, indicate that there is development in this direction, exI)orts ill June having amounted to almost eight timces those for the month of February. But for some time to come, the Philippines will probably have to finance the bulk of her imports, if she is to get them, in some other way. We link this discussion up with the work of the Philippine War Damage Commission for obvious reasons. After the Commission announces the date when it will begin accepting claims, twelve months will be allowed for the filing of claims. But the Commission has announced that its policy will be "to make payment as soon as practicable of so much of any approved claim as does not exceed $500 or 1,000 Philippine pesos." The maximum amount to be paid out by the Commission in settlement of private claims is $396,000,000 ($400,000,000 minus $4,000,000 which is allowed for the expenses of the Commission). As rapidly as possible, all approved claims will receive up to $500, or P1,000. And no claim, no matter the amount for which it is approved, will receive more than $500 or P1,000 until the period for filing claims is past. The total amount that will be disbursed during 1947 cannot be foretold. It will depend entirely on the number of claims submitted, and approved by the Commission. But that it will be a considerable sum (running perhaps into the hul dreds of millions of pesos) is fairly certain. Disbursements by the Philippine War Damage Commission (whether in payment of private or public claims) will for at least a year, and maybe longer, constitute 'aln impressive item in the "balance of trade" picture of the Philippines. Since the cash disbursed will come from outside the country, these payments will represent items of export. The result will be the creation of great "importing" strength on the part of the Philippines. If these imports are securable, all will be well and good. If anything happens to diminish or hamper the required flow of imports, one result can be foretold with little difficulty - Inflation on a scale so far undreamed of. American Chamber of Commerce of the Philippines Directors Wm. H. RENNOLDS, President Samuel Garmezy AMOS G. BELLIS, Vice-President E. M. Grimm E. BYRON FORD, Treasurer J. A. Parrish A. D. Calhoun Julius S. Reese John F. Cotton PHILIPPINE TRADE AND WAR DAMAGE PAYMENTS On page 27 of this issue of the Journal the reader will find a statistical table entitled "Foreign Trade of the Philippines," which was prepared by the Bureau of the Census and Statistics from data provided by the Bureau of Customs. At first glance the table seems to indicate a most alarming condition. For the first six months "imports" amounted to more than 20 times "exports" in value, the figures being P276,274,003 and P12,627,001 respectively. From the former figure should be deducted the value of "re-exports" which amounted to P9,536,692; but this deduction leaves the proportion but slightly modified. While these figures are no doubt accurate as far as they go, it should be remembered that they are based on shipments of merchandise into the Philippines and out of the Philippines. They do not include many financial transactions that constitute a vital part of the "balance of trade" picture. How is this tremendous excess of imports financed? How is the Philippines paying for this unusually large flow of goods into the country? These questions take us back to an analysis made editorially by the Journal early in the year, which may be restated briefly as follows. Philippine exports (contrary to the common assumption) commenced on. a considerable scale with the arrival of the liberating American forces. During the entire year of 1945, this flow of exports was maintained. This fact becomes clear when it is remembered that every dollar spent in the Philippines by U. S. Government agencies and by the personnel of these agencies constituted an "export" item, whether it was spent on native rum, on food products, as wages or as rental, etc. The total amount of these expenditures has not been cilculated, but careful calculation is not necessary in order to know that it was tremendous. Although considerably decreased during 1946, the flow of these expenditures has continued and is continuing on a considerable scale. Sooner or later our normal export industries will be rehabilitated to an extent that will enable them to assume this function of paying for imports. Statistics IL THE AMER IC i"AM F COMMERCE IS A QUALITY ADVERTISING MEDIUM Let us carry your message to a SELECT public every month. U, I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - 10 " he American Chamber of Commerce Journal November, 1946

Page  11 Organization, Functions, Rules and Regulations of the Philippine War Damage Commission Considerable attention has been paid by the Jourtnal in previous issues to the war damage legislation by the U. S. Congress, the members of the Commision, and the problems and difficulties that the Commission may encounter. One of the chief difficulties will be just plain, ordinary ignorance on the part of claimants. In an attempt to help solve this difficulty, which will be to the interests of all concerned, the Journal herewith gives its readers an abbreviated edition of the Commission's circular on "Organization., Functions, Rules and Regulations." IOrganization The main office of the Commission will be located in Manila. A Washington office is maintained in the Interior Department Building, Washington 25, D. C. Field offices will ultimately be established in the Philippines. Claim forms and circulars will be available in all established offices when public notice is given that the Commission is prepared to receive claims. Claims are of two types, private claims (authorized by Title I of the Philippine Rehabilitation Act) and. public claims (authcrized by Title III). Functions and Methods Public notice will be given. when private claims will be received by the Commission. In the Philippines this notice will be given in newspaper releases, by radio 'announcements, etc. All claims must be filed within 12 months from the date to be announced. The claimant must have had an insurable interest in the property on December 7, 1941, and continuously to and including the time 'of loss or damage. The Commission has defined "insurable interest" as follows: By this term is meant that the claimant must have been owner, mortgagee, lien holder, or pledgee of the property lost or damaged to an extent that he would have bean able to obtain insurance to protect such interest. By public claims are meant claims on the part of the Republic, provincial governments, chartered cities, municipalities, an d corporations wholly owned by the Republic for loss or damage to public property. Such claims must indicate the time and place of damage or destruction, the legal identity of the applicant and its ownership of the property which was damaged or destroyed, the amount of destruction or damage in detail, a statement of the extent to which the property has been repaired or reconstructed, and a statement as to whether the claimant has received surplus property to compensate for the damage or destruction. Claim Forms No. 100 and 100-A must be used for submitting private claims. Form 100-A is to be used when automobiles or watercraft are involved and must be 'attached to Form 100. Claims must be submitted in duplicate and all copies acknowledged according to law. A postal card, which will be provided with Claim Form No. 100, must be self-addressed and must accompany the claim when it is submitted. This postal ca,rd, when returned to claimant, will be his notice that his claim has been received. Illegible or defective claims will not be accepted by the Commission. The Commission will notify all private claimants of the approval or denial of their claims, and, if approved, will notify the claimant of the amount approved. In the event of denial in whole or in part, reasons will be given for such action.. The claimant whose claim is denied in whole or in part will be entitled to a hearing before the COmmission or its representatives. The Commission may affirm, modify, or reverse any former action if it should appear that a mistake of law or fact has been made. All findings of the Commission concerning the amount of loss or damage, the causes, the persons entitled to payment, and the value of the property lost or damaged, are conclusive and final. Conditions and Payment of Claims PRIVATE CLAIMS. 1. To the fullest extent practicable, the Commission will require that the lost or damaged property be rebuilt, replaced, or repaired before payments of money are actually made to claimants. 2. However, the Commission, may, at its option, make payment, in the whole or in part, of the amount payable Iby replacing lost, damaged, or destroyed property with property of like or similar kind. 3. If rebuilding 1or repair of the property is impracticable or impossible, the Commission. must require that the whole of A'ny payment or partial payment shall be re-invested, in such manner as will further the rehabilitation or economic develop ment of the Philippines. 4. The Commission may make payment as so9n as practicable {of so much of any 'approved claim as does not exceed P1,000. It reserves the right to pay the amount in instalments. If the aggregate amount which would be payable to any one claimant exceeds P1,000, such aggregate amount must be reduced by 25 percentum of the excess over P1,000. After the time for filing claims has expired, the Commission will determine the umoun.t,cf money available for further payment of claims in excess of P1,000, and such funds shall be applied pro rata for the payment of the unpaid balances of the amounts authorized to be paid, subject to ratification of the Executive Agreement required by Title VI of the Act. PUBLIC CLAIMS. 1. To, the fullest extent practicable, the Commission will require that any lost or damaged property for which it decides to pay compensation shall be rebuilt, replaced, or repaired before payment of money is actually made. 2. The Commission at its discretion may request the Federal Works Agency or the Corps of Engineers of the United States Army to undertlake, after consultation with the Philippine government, the rebuilding, repair, or replacement of property for which the Commission awards compensation, and may transfer to such agency or Corps of Engineers the funds necessary to pay for the work requested. 3. The Commission may make partial payment of claims 'as the rebuilding or repair of the property progresses. 4. The Commission will make no payments for lands, easements, and rights-of-way necessary for any public project, or for property transferred or work done by any other agency of the United States. 5. Following consultation with the Philippine Government the Commission will select and fix the priority of cases in which compensation will be awarded or property rebuilt, repaired, or replaced; after taking into account the importance of various projects to the reconstruction and rehabilitation of the economy of the Philippines, and such other factors as the Commission. deems relevant, payment will be made as arranged between the Commission and the public claimant. The Commission may advance funds when. it determines that it is practicable to do so. Value of Property No claim shall be approved in an aggregate amount which exceeds (Contitnued on page 2i5) Tle Ame-ican ('li:mler of Commerce Journal N-Ivemhbr, 1916; 11

Page  12 MARQUS' I j Ip _... EDITORIAL NOTE This list is not complete, for some of the new laws were not available in printed form in time for inclusion. These annotations wzill be completed in our next issue. Emergency Currency Republic Act No. 22, known as the "Emergency Currency Registration and Deposit Act of 1946," provides rather complicated machinery for the registration and ultimate redemptilon of "all pre-surrender emergency issues, guerrilla issues, and so called mountain money." A board of three members is created to supervise this action. The board shall announce the beginning of the four-month period during which such currency must be presented for registration. Full redemption is not promised, for the board shall determine (among other things) "the rate of exchange at which same shall be redeemed." Reconstitution of Torrens Titles Republic Act No. 26 sets up the procedure for this important function. Torren-s titles "shall be reconstituted from such of the sources hereunder enumerated as may be available, in the following order." (a) Owner's duplicate; (b) Any other duplicate; (c) Certified copy; (d) Authenticated copy of decree of registration; (e) Mortgage, or lease, in which the certificate of title is described; (f) "Any other document which, in the judgment of the court, is sufficient..." Anti-Dumping Republic Act No. 32 provides organization and procedure for the protection of local industries against unfair competition resulting from "dumping" practices. Rice Share Tenancy Republic Act No. 34 recognizes the principle of "freedom of contract" between tenant and landlord but declares the following to be against public policy: 1. For the tenant to receive less than 55%o of the net produce when he furnishes animals and implements and shares the expenses of planting and cultivation. 2. If the contract rental is higher than 25% of the estimated normal harvest. KNOW THE LAW! An Annotated List of Laws Passed by the First Congress of the Republic of the Philippines and Signed by the President Which Particularly Concern Business Men. 3. For the tenant to receive less than 50% of the net crop when the landlord provides work animals and the tenant provides implements and they both share expenses of planting and cultivation. The act also sets up the scale of division of crops when there is no written contract. New Industries Republic Act No. 35 exempts "new and necessary" industries from the payment of all direct internal revenue taxes for a period of four years. T'he President shall determine the qualifications of industries to be favored under this act. Census Republic Act No. 36, entitled "Census Act of 1946," provides for a complete census to be taken not later than January 1, 1947. Percentage Taxes on Gross Receipts Republic Act No. 39 imposes a tax of 2 %r on the gross receipts of a long list of industries and commercial enterprises; a tax of 3% on restaurants; a tax of 5%"o on bars; a tax of 20 %o on bars that a,re accessible to race-tracks or jai-alai; a tax of 10%/, on bars in night clubs and cabarets: a tax of 5% on gross receipts of banks on all items treated as gross income; a tax of 5 % on gross earnings of corporate franchises; and certain amusement taxes. Stamp Taxes Republic Act No. 40 specifies the stamp taxes to be paid on bonds, stocks, bank checks, drafts, acceptances, insurance policies and premiums, bills of lading, passage tickets, leases, mortgages, deeds of sale, and all other documents with very few exceptions. Sales Taxes Republic Act No. 41 provides for a general increase in sales taxes to the following percentages: 20% on. jewelry, toilet preparations, automobiles priced at more than P5,000, etc. 10% on automobiles priced at P5,000 or less, sporting goods, refrigerators, watches, musical instruments, photographic supplies and apparatus, washing machines, etc. 5% on all other articles except as provided in other laws. 2%S, on rope factories, sugar centrals, rice mills, coconut factories, etc. Fixed Taxes on Business Republic Act No. 42 establishes the fixed taxes to be paid by all types of business. If the business is sub(Continued on page 25) Sole Importers FEPTCO (Far East & Pacific Trading Co.) A. SORIANO Y CIA. General Managers BANCO HIPOTECARIO BLDG. TEL. 2-79-61 MANILA 12 The American Chamber of Commerce Journal November, 1946

Page  13 Manila Stock Exchange Report September 16 to October 31 The 6-week period under review witnessed a marked reversal of the trend of recent months, both in prices and in volume. A total of 14,746,000 shares were exchanged, the cash value of transactions amounting to P1,959,000. The previous 6-week period (August 1 to September 15) accounted for 6,458,180 shares changing hands with a value of P1,048,000. Cash value of transactions therefor increased by 86% during the period under review. This increase was accounted for by two of the general classes of stocks — Mining stocks and Commercial and Industrials. Sugars, Banks and Insurance all declined, both in proportion and in amount. The comparative figures for the two periods are as follows: Mining Shares Nineteen mining stocks (11 listed on the exchange and 8 unlisted) participated in transactions. Of these, 10 showed an increase in. share value at the end of the period as compared with the beginning, four showed 'a decrease, and five showed n. change. Value of transactions increased by 87% over the previous period. In every respect, Atok Gold was the outstanding issue, leading the list in value of sales and in increased value per share. Other leading issues were Big Wedge, Mindanao Mother Lode, Itogon, San Mauricio, Lepanto Consolidated, Consolidated Mines, and Surigaos Consolidated. All are listed stocks except Itogon and Consolidated Mines. Atok Gold's rise commenced on Sept. 21, on which day sales were made at.65 as against.64 a few days earlier. After holding steady at that price until Sept. 27, it advanced another centavo. Another price advance (2 centavos) occurred on Sept. 30. For ten divs the price held steady at.68, with a total of 180,000 shares changing hands. Then began a steady upward move that carried the price to a peak of.85, at which price 19,000 shares changed hands on Oct. 21 and 22. A slow but steady downward movement followed, with final sales of 2,000 shares on Oct. 31 at.80. Total sales amounted to P391,350. Next in sales value was Big Wedge, which accounted for a total of P257,168 during the period. Price movements during the first four weeks were erratic, within a ranige of.78 to.83. On Oct. 17, sales were made at.88, and the peak price for the period was reached on Oct. 21-.93. During the next ten days, the price steadily receded to.85 with little business being done. On Oct. 31, there were sales at.87,.86, and.85. Mindanao Mother Lode ranked third in value of transactions, accounting for a total of P199,915. From a beginning price of.50, there was a slight decline to.48, at which price a total of 47,000 shares were exchanged on Sept. 24, 25, 26, and 27. Then commenced a rise that after a, little unsteadiness carried it to the peak price of.64. At this price, (Continued on page 22) Mining Stocks Commercial & Industrials Sugars...... Banks....... Insurance.... Present Period P1,421,841 466,762 36,215 16,000 8,700 Previous Period P756,000 228,694 72,827 25,900 42,900 I __ __ THE AMERICAN CHAMBER OF COMMERCE JOURNAL IS A QUALITY ADVERTISING MEDIUM — Let us carry your message to a SELECT public every month. *. 11 - %'k THE CODE BOOKS You've Been Waiting For Since Liberation! ACME Commodity D E & Phrase Desk Edition (With Supplement)............ P 93.50 Travelers Edition (With Supplement)........ 82.50 ACME CFo CODE BENTLEY'S C-mpe CODEBENTLEY'S Seon CODE 22.00 40.00 100.00 Latest Editions - Now On Sale At PHILIPPINE EDUCATION COMPANY 1104 Castillejos Quiapo, Manila (Entrance thru Arlegui St. at A. Farnecio) The Anerican Chamber of Commerce Journal November, 1946 13

Page  14 Bibliography of Postwar Economic Problems of the Philippines By PEDRO T. ORATA National Council of Education (June and July, 1946) ALMARIO, J. Growing Years: 1901 -1946. Sunday Times Magazine, 1: 4, 23, July 7, 1946. "It was a long way from Taft to McNutt but the road ended where it began in the first place-partnership with America." APOSTOL, JOSE P. What of Our Money. Sunday Times Magazine, 1: 6, June 23, 1946. "The discrepancy between the incoming volume of cash payments and the availability of exports to the islands can mean only one thing-inflation." Suggests ways to prevent it. BALMACEDA, CORNELIO. Reconstruction of Philippine Economy. Republic of the Philippines, July 4, 1946, Independence Souvenir. Manila, (no publisher listed) 1946. pp. 42, 46. Takes up two outstanding problems of Philippine economic reconstruction: "first, the immediate need for restoring the vital parts of our economy 'that have been great impaired or shattered and ruin by the war; and, second, the preparation and simultaneous execution of a longrange, comprehensive economic plan that will have for its goal the setting up of a stable and sold national economic structure. The first problem comprises the task of immediate rehabilitation, while the second calls for careful plann:ng and execution of the revised plan for permanent economic reconstruction." BALTAZAR, EULALIO P. Coronadal; Potential Rice Granary. Evening News, Saturday Home Magazine, 1: 8, June 22, 1946. Modern farm machinery can make this Mindanao valley into a great rice land. BUREAU OF COMMERCE. Trade Directory of the Philippines, 1946. Manila, The Bureau, 1946. 298 p. Includes a br:ef and factual survey of the Philippines-geography, population, languages, education, religion, history, government, economy, trade and commerce, industries, finance, transportation and communication, commercial and industrial possibilities, statistical facts, list of provinces and their capitals, and chartered cities and the population of each; the Bureau of Commerce-its history, organization and functions; trade directory in Manila and in the provinces; alphabetical list of firms and industrial establishments with information regarding their nationality, capital investment, articles handled or services rendered; officials of the Commonwealth of the Philippines; of government owned corporations; of consular offices, chambers of commerce, banks, insurance companies, hotels, theatres, newspapers and periodicals published in the Philippines. Business and Finance; Transportation. Manila Courier. Manila Da ly Bulletin; Evening News. Regular daily feature. Businessmen's 5-Day Convention. Sunday Times Magdzine, 1: 9-11, _ July 14, 1946. Meeting brings big and small business together to thresh out common problems under the Republic. CASTILLO, ANDRES V. Plan Based on Borrowed Money. Evening News, Saturday Home Magazine, 1: 8, 14, June 1, 1946. The author, a well known Philippine economist, offers a few suggestions on what to do w'th the loan we seek from the United States, if or when we get it. Suggests a five-year plan of activities to be financed by the loan, namely: agricultural development; establishment and promotion of manufacturing and extractive industries; development of hydro-electric power; promotion of domestic and foreign trade; extension and development of transportation and communication; financial reconstruction; public and other construction works. A Chance for Juan to Build. Philippines Free Press, 37: 23, June 8, 1946. Gives reasons why the mere lifting of forest laws will not enable the average home owner to build or rebuild his house. Warns that it takes but a few hours to cut down a tree but over a hundred years to grow one. Suggests a thorough study of the problems followed by an intelligently laid out plan. CHANCO, MARIO P. The Silent War in Wealth. Sunday Times Magazines, 1: 3, 15, July 21, 1946. Describes the Philippine Office of Foreign Funds Control, another link in the chain of Philippine-American relations, which was established on May 1, 1940 to enforce President Roosevelt's freezing order in 'this area. "Its functions have now been reconverted; its work, formerly geared to serve the needs of war, answers the call of peace." CONCEPCION, ISABELO. Food for Thought. Sunday Times Magazine, 1: 15, June 9, 1946. "Any food measure that does not take into account the diet of one half our population whose food intake is not up to the standard is liable to fail. Our food policy should be designed to raise to 'the highest poss ble level the national health and physical fitness." CONSTANTINO, RENATO. True Freedom's Road. Sunday Times Magazine, 1: 2-3, July 7, 1946. Shows that a sound economy is the only lasting foundation of political liberty. 'When the people are economically secure and feudal patterns are destroyed, then we will have a courageous, vigilant people with more independence of mind and spirit-a people more sure of themselves and therefore of their privileges. And with the spirit of independence securely resting on a sound economic foundation, our political structure and our political life will grow stronger and more assertive so that as a nation we will be able by degrees to do away with the protective wing of the mother country and at last stand alone, brave and free." CORPUS, R. MARINO. That BillionD)ollar Loan. Evening News, Saturday Home Magazine, 1: 6, 16, June 1, 1946. What it is and what it means, and how may it be paid back. CORPUS, R. MARINO. Tydings and Bell Measures: A Searching Analysis. Evening News, Independence Day Supplement, 1: 8, 34-35, July 3, 1946. Tells what the young Republic ought to know about the two measures, their advantages and disadvantages, and their "raison d'etre." D. P. D. Hunger in Our Midst. Sunday Post Magazine, 1: 17, June 2, 1946. Reports famine in different parts of the Philippines in Mountain Province among the Igorots, in Palawan. DALISAY, AMANDO M. Blueprint for an Agricultural Economy. Sunday Post Magazine, 1: 9-10, 15, July 21, 1946. Presents a ten-point program for agricultural development: (1) immediate relief to farmers 'to enable them to restore facilities for production; (2) restoration of work animals and farm implements; (3) improvement of the agrarian situation; (4) agricultural reforms accompanied by improvement of rural standards of living; (5) government control of production readjustments; (6) an efficient system of commodity distribution; (7) a credit program to finance agricultural and industrial projects; (8) a "vigorous vocational education in agriculture and the mechanical arts;" (9) a highly centralized governmental policy that fill result in the coordination of effort and activities between publ:c agencies and private indidividuals and of institutions engaged in similar lines; (10) a common goal-"the real'zation and maintenance of living standards re-oriented to our-resources and readjusted to our national aspirations." DOMAGAS, ANTONIO B. New Deal for Pinoy Labor in the U. S. Philippines Free Press, 37: 6, 30, July 13, 1946. Tel's how, because of high wages received by Filipinos in the States, "there has bcen a remarkable transformation in the occupational levels, many Filipinos having qualified for responsible and highly remunerative positions to which formerly they could not hope to attain, thus adding a new dignity to the name Filipino." Food, Food, Food. Evening News, Saturday Home Magazine, 1: 11, June 29, 1946. Shortage in pr'me commodities is inevitable, as American supply falls short of world's needs. "From the Icoks of it, we have to depend on our resources to solve our fcod problem this year and thereafter." GABILA, ANTONIO S. Exit Davaokou. Evening News, Saturday Home Magazine, 1: 7, 9, June 29, 1946. 'It took a costly war to end the ticklish Japanese problem in this southern province. GALI, I. Cooperatives Lead to Trade Stability. Star Reporter, Independence Day Supplement, 2: 4-5, July 3, 1946. Po'nts way to nationalization without legislation. GONZALES, LEON MA. For Efficiency's Sake. Sunday Times Magazine, 1: 3, June 9, 1946. Suggests ways the proposed Efficiency Commission as suggested by President Roxas "may save the Administration a pretty penny by check'ng up on governmentowned corporations." GONZALES, V. F. GI's of '98. Sunday Times Magazine, 1: 11, June 16, 1946. 14 The American Chamber of Commerce Journal November, 1946

Page  15 "The GI's of today are in many ways a contrast to their brethren of 1900. Where before the soldiers generally looked suspicious and aloof, the GI's of today are carefree and more sociable. They are more democratic and possess a lively sense of humor. Many of them are well read, well posted on world affa'rs. Like those of 1900 they, too, are liberal and generous, fond of drinks and hungry for what they call a 'real good time.' Of course, allowance should be made for the fact that soldiers in 1900 found the Filipinos unable to speak English. Th's possibly accounted for their being reserved with us. While today, in view of the fact that English is widely spoken in the Philippines, a more thorough understanding all around another has been made possible." GOZUN, PEDRO T. Democracy on Trial. Sunday Post Magazine, 2: 5, 22, June 30, 1946. Recites the handicaps with which the new Republic wi 1 start: "An almost empty treasury, a 'dead-center' economy, disrupted means of commun'cation and transportation, a mounting wave of lawlessness, a persistent black-market, unrest, chaos and confusion among the great laboring class, indifference and uncertainty among the capital'st, erruptive relationship between landlords and tenants, redtape, graft and corruption in our governmental agencies, abnormal production of crops for home consumption and for export, and a general dislocation of the prewar trade or profession of almost everyone of us." GUERSON, ENGRACIO D. Labor and Social Security. PhilippineAmerican, 2: 40-43, June 1946. "Progress I'terally means a moving for ward towards greater control over nature to the end that mankind may achieve, through increased productivity, a higher standard of living and a general improvement in human well-being. But progress has to be earned and can only be attained by clear vision and. work, by foresight and the constructive utilization of human powers and physical resources." Suggests steps that should be taken by the government to provide the masses with social security. GUZMAN, P. TORRE.-Editor. A page for the Ladies: Peso-A-Year Worker. Evening News, Saturday Home Magazine, 1: 12, June 29, 1946. Tells about the birth of a home industry in the Ilocos provinces, utilizing parachute rope to make suits, luncheon sets, and other handsomely woven articles. "The project has helped 54 families build homes, and a number of sick people get much needed medical help." The promoter of this project is the wife of a wealthy Ilocano from Vigan. HOSKINS, C. M. The Rebuilding of Manila. Am Ch Corn J. 22: 7, 17, July 1946. Describes the 'bottlenecks" which have to be removed before the reconstruction of Manila on a permanent basis can proceed: incomplete city planning, shortage of building materials, and, to a certain extent, housing. "The money with which to rebuild Manila does not seem to offer any problem. Investment capital is abundant." July 4, 1946. Editorial. Am Ch Cor J, 22: 10, 13, July 1946. "Out of the experience of the occupation, there developed among Americans a new pride which was the outgrowth of a clearer view and hence a deeper understanding of the Filipino character. They watched these Filipinos in the days of adversity when deal'ng with an enemy of overwhelming strength and illimitable ferocity, and were proud of what they saw. For every virtue of character was exhibited plentifully before their eyes-integrity, fearlessn?,ss, generosity, patience, self-sacrifice. In all humility these Americans were proud of the fact that they could, even to a small degree, identify themselves with the development of such a people, and such a nat'on." L. A. P. Gallant Lady. Woman's Home Journal, 17: 11, 30, July 1946. Describes the activities of Josefa Llanes Escoda during the Japanese occupation in behalf of the American and Filipino prisoners of war everywhere in the Philippines from the beginning to the day she was taken in on August 27, 1944. "On August 27, the grapevine flashed the dreaded news. In choosing to remain in the city, in her hopeless attempt to have Tony freed, she courted incarceration in the dungeon from where few mortals came out alive." LANSANG, AMADO A. Formula for Economic Independence. Sunday Post Magazine, 1: 6-8, July 7, 1946. With land, talent and resources, it should be possible to reorient our economy towards self-sufficiency and economic freedom. Advocates diversification of industries, government initiative, socialization of industries, and planning economy. (Continued on page 26) 0. E. S. & S. CO., INC. 230 David, (2nd Floor Peoples Bank Bldg.) Manila STEEL AGE: Filing cabinets & steel furniture WEIS: Office supplies & Equipment BUCKEYE: Ribbons & Carbon papers AMERICAN PAULIN SYSTEM: Surveying Aneroids & Barometers, SIMPLEX: Payroll Clocks, TimeStamps, Watchman's Clocks ORIGINAL-ODHNER: Calculating Machines, Adding Machines SCHWAB: Safes, Vaults INTERIOR STEEL EQUIPMENT CO.: Storage Cabinets, Lockers, Steel-Shelving, Shop-Equipment SAFEGUARD: Checkwriters DITTO: Duplicating Machines, Supplies OGLE'S: Aluminum Chairs THE AMERICAN PERFORATOR CO.: PerforatingDating Machines COPY-KING: Phostatic Copying Machines PROTECTO: Insulated Cash Boxes BRANDT: Coin Counter & Packager, Automatic Cashiers SCRIPTO: Automatic Pencils KOH-I-NOOR: Drawing Pencils CRESCENT PRODUCTS: Ink, Paste, Mucilage, etc. WARREN-KNIGHT: Transits. Levels KUKER-RANKEN: Hand Levels CHICAGO STEEL TAPES AINSWORTH: Pocket Transits THE SPECIALTY DEVICE COMPANY: Wellboring Outfits "Repair and Service of all types of office machines, safes, steel furniture." WE SPECIALIZE IN OFFICE EQUIPMENT AND ENGINEERING INSTRUMENTS CSy CM:/ ^M.... Sole Importers (FAR EAST & PACIFIC TRADING A. SORIANO y Cia. General Managers Banco Hipotecario Bldg. - Tel. 2-79-61 -- CO.) Manila I~~~~~~~~~~~~~~~.4 — The merican Chamber of Commerce Journal November, 1946 15

Page  16 BANK OPEN OF AMERICA TO MANILA BRANCH Mr. Russell G. Smith, executive vice-president of the Bank of Almerica, h'as announced that the Manila branch of that famous California institution will be opened about January 1, 1947. Premises have been secured on the ground floor of the Wilson Building. AcoJrdingl to Mr. Smith, the Bank of America will offer complete commercial banking facilities to its customer. Particular attention will be given to the development of savings accounts, which has been a characteristic feature of the bank's growth' in America. At present the bank has 496 branches in the United States, but this is the first branch to be opened in the Orient. No definite plans have been made for the opening of other branches in this part of the world, but it is possible that there will be development along that line. Mr. Smith expects to visit Shanghai and Hongkong before returning to the States. The manager of the local branch will be Mr. Francis Moore, formerly of Zamboanga. He is expected to arrive before the end of the year, and returns to the Philippines with extensive banking experience in the United States. The opening of this bank in Manila is indicative of the increased interest of California industry in the Philippines. During! the war, the population of California grew amazingly, partly because of the rapid industrial development in the state in various war industries. These industries are now turning to peace-time production, and are looking to the Orient for markets. This means that California will likewise provide a much larger market for Philippine products than before the war. Consequently, according to Mr. Smith, the opening of the Manila branch of the Bank of America is a logical move. BANK OF AMERICA National Trust and Savings Association Condensed Statement of CO3ndition June 29, 1946 RESOURCES Cash in Vault and in Federal Reserve Bank......................... $664,828,114.00 Due from Banks.................. 295,791,677.94 Total Cash............................ United States Government Obligations, direct and fully guaranteed.................................. State, County, and Municipal Bonds............. Other Bonds and Securities........................ Stock in Federal Reserve Bank..................... Loans and Discounts.............................. Accrued Interest and Accounts Receivable........... Bank Premises, Furniture, Fixtures, and Safe Deposit V aults...................................... Other Real Estate Owned...................... Customers' Liability on Account of Letters of Credit, Acceptances, and Endorsed Bills............... Other Resources.................................. $ 960,619,791.94 2,848,132,068.30 323,940,281.68 130,026,315.64 6,137,600.00 1,198,680,168.77 17,690,494.68 28,061,091.09 96,850.99 40,737,711.78 187,606.53 TOTAL RESOURCES.................... $5,554,309,981.40 LIABILITIES Capital: Common (8,528,646 Shares).... Preferred (6,258 Shares)*...... Surplus........................... Undivided Profits................. Reserves......................... Preferred Stock Retirement Fund... $106,608,075.00 125,160.00 98,752,325.00 30,232,550.65 4,304,056.90 162,053.65 Total Capital Fund....................... $ 240,184,221.20 Reserve for Bad Debts.......................... 17,719,315.14 Depss Demand.......... $3,083,943,460.10 l Deposits Savings and Time. 2,154,580,868.02 f Liability for Letters of Credit and as Acceptor, Endorser, or Maker on Acceptances and Foreign Bills...... Reserve for Interest Received in Advance............ Reserve for Interest, Taxes, etc..................... 5,238,524,328.12 42,126,954.66 7,270,973.57 8,484,188.71 TOTAL LIABILITIES................... $5,554,309,981.40 *Issued at $50 ($20 Capital-$30 Surplus), Annual Dividend $2. Called and to be retired in full as of July 31, 1946 This Statement Includes the Figures of the London, England, Banking Office --— L — - —. ez,. , --- —-- Subscribe to the AMERICAN CHAMBER OF COMMERCE _JOURNAL............................. —' —.........': - -; -- ~.......-=p — ~ —" --- —-. -- —. --- —-. —' —r. —.........~-. 16 the American Chamber of Commerce Journal November, 1946

Page  17 ril, New Trx... (C'oitinl cd frml pffyc!9) Ninety per cent upon the amount by which such excess is over P500,000 but is not over P1,000,000; Ninety-five per cent upon the amount by which such excess is over P1,000,000. Congressman Modesto Formilleza (Romblon-L), who sponsored the measure on the floor of the house, explained that the first P6,000 is exempted from tax "because it is considered not unreasonable for a person to save that amount during a period of three years and three months." He said that this allowance merely represents the legal rate of interest on capital. He went on to state that where a taxpayer acquired after December 8, 1941, and still held on February 27, 1945, shares of stock of a corporation subject to the proposed tax, he is allowed to deduct from the increase in his net worth part of the tax payable by the corporation.. The reason for this deduction is the fact that where a corporation niade profits, the market value of its shares went up, and the stockholders would be taxed on the increase in market value. In order to avoid possible evasion by unscrupulous persons, the war profits tax measure woull. est.ablish a lien on all properties acquired by the taxpayer during the war, such lien to become effective on August 2, 1945, the date of the filing of the measure in the house. Persons or corporations subject to this tax are required to render in duplicate a true return containing such facts and information as are necessary to determine the correctness of the amount subject to tax and carry out the provisions of the act, on or before the third month following the date of the approval of the measure by the President. In case a taxpayer receives payment on account of war damage and other war claims subsequent to the filing of the return., he shall, within thirty days from the receipt of the payment, file an amended return to include it as part of his net worth. Inheritance Tax One of the revenue measures passed by the Philippine Congress was house bill No. 738 which proposes to increase the inheritance tax by 50 per cent. The measure was justified by Congressman Modesto Formilleza (Romblon-L), chairman of the house committee on ways and means, on the ground that it meets the "ability to pay' principle in taxation. While Formilleza admits that the proposed increase is considerable, he argues that the pressing need for revenue demands the imposition of the additional levy upon those who acquire property through succession. On the basis of the average annual pre-war collection of about P1,000,000 from this source, the government expects a total collection, of P1,500,000 based on the new rate. The tax amounts to two per cent on in(Coftinued on page 25) UNION PLUMBING COMPANY - PLUMBING CONTRACTORS - Installations-Repairs-Supplies Office: 1883-B Azcarraga (Near Old Bilibid Gate) "Our staff of Experienced Plumbers are at your disposal to give you the best Plumbing Service" Ii I Demand TRIBUNO America's outstanding VERMOUTH For Perfect Cocktails SOLE IMPORTE'RS: FEPTCO FAR EAST AND PACIFIC TRADING CO. A. SORIANO Y CIA. General Managers Banco Hipotecario Bldg., Manila Now Available At All Better Stores Libby, McNeille Libby (Phil.) Inc. - AL l ALAh~ NLAk M Ak I M AL Llak'l The American Chamber of Commerce Journal November, 1946 17

Page  18 The Supply of Business Enterprise by CLARE E. GRIFFEN Professor of Business Economics, University of Michigan Digest of the original article which appeared in The Michigan Alumnus Quarterly Review, July 27, 1946. Enterprise has three main aspects: conception, risk-taking and management. The original conception of a new product or a new process and of the project designed to put it into effect is a pri-nary aspect of enterprise and a function, of enterprisers. Another primary element is the assumption of risk, the staking of something now in the hope of returns in the future. The third aspect requires the bringing together of the other factors of productionland, labor and capital - and their direction. Organization and administration involve the making of decisions that affect the scale of operations, which makes them a part of business enterprise. Enterprise, then, is a matter of decisions, and a supply of enterprise is bt be conceived las the number and magnitude of the positive decisions to make commitments for the production of goods and services. The enterpriser is the decision maker. Whether sole owner, part owner, or professional manager, whether large businessman, small, or merely a potential businessman, he is the one who can "give the green light." These positive decisions, the sum of which constitutes the supply of enterprise and produces expansion, can be classified by the degree to which they are deliberately and freely made and are, therefore, in the clearest sense decisions, or on the other hand, are almost automatically made and lore less clearly genuine decisions. We can discern five levels of decisions on this score, proceeding from those that are almost automatic to those that are most free. First, there are the decisions to increase current expenditures, such as the decision of thei retailer to increase his inventory or of a manufacturer to increase his inventory of materials and supplies or to take on additional daily workers. The second class of decisions involves the replacement of existing plant or equipment. The third class of decisions involves the producing of new products in addition to those already produced. Fourth, there is the decision to build new plant or buy new equipment, which may or may not have been required by the previous decision to extend the line of goods. This plant or equipment may be designed to reduce costs or to make possible an increased volume of business. The fifth class of decisions, and the one which is in the clearest sense free decisions, concerns the establishment of a new business. If we think in terms of the environmiental factors which will induce an increased supply of enterprise, this fifth lone is particularly significant. In tall of the others there is a certain degree of pressure which is supplied by the fact that commitments have been made in the past and that it may be necessary to make further commitments to protect the original ones. Bearing in mind, then, that the expansion of economic activities springs from the decisions of businessmen Icr potential businessmen and is, therefore, a very personal and individual matter, we can ask, what are the incentives that influence these decisions? According to a classification by Keynes, there are three levels of incentives, which overlap and mingle with one another. First, there is the economic calculus, which consists of a balancing of costs and rewards in monetary terms. Second, there is what may be called the hedonistic calculus, including such considerations as the desire for power, for prestige, for security, for independence, and probably to some extent social approval. The third level of influence is the general spirit of optimism and confidence which, as we all know, pervades the community at certain times and is generally absent at other times. In the view of Keynes, this last one is the most important, which suggests the importance of ideas, ideals, and attitudes which have a bearing on the national psychology. The problem of securing and preserving a sufficient supply of enterprise to, maintain a high level of employment is therefore one of creating an environment favorable to positive decisions of business enterprisers. We cannot hope to discuss the whole range of reforms which would be needced to improve this environment, but we can perhaps suggest some general lines without being too dogmatic on detailed policy questions. The first of these broad categories is tax reform. From the point of view of bringing forth an adequate supply of enterprise, the most important reform is the abolition of the special tax on corporate business incomes. I am not referring to the excess-profits taxes, levied during the w!ar, but to the normal tax upon business enterprise. That tax works in this way. If a corporate enterprise earns an income, a certain percentage of that income is taken under the corporate income tax. Then when the remaining sum is distributed to the individual owners as dividends, it is again subjected to a tax as part of his personal income. We do not do this for other forms of income, and if we really wish to.encourage the supply of enterprise we should not do it for this one. This tax rests particularly upon venture capital, for the corporation can treat interest on: bank lo'als or interest on bonds as an expense and therefore as not taxable. Only that part of earnings which is attributable to stockholders is treated 1r. that way, which means that we have selected the reward for venture capital as the object of especially heavy taxation. Another requirement for encouraging positive decisions is the maintenance of competition andj preventing' the growth of monopolistic forces of various kinds. A free system must be a competitive system. It is, therefore, the chief economic function of government in a free m'arket system to maintain and improve competition. Finally, the most important factor for the encouragement of a large supply of enterprise is the intangible one of the philosophy of the people and, particularly, the relative emphasis which they place upon security or upon' adventure and progress. It is probably desirable that a majority of people should; prefer security, but it is essential that a considerable number shall make the opposite choice. For upon them the progress of the country depends and with it our hope for expansion as opposed to stability or stagnation. This much is sure: no nation ever became great by seeking security. It may for a time hold an attained position by that philosophy, but in the long run the future belongs to the creators, not the critics-to the venturers and not to the security seekers. Its future depends on a continuous and growing supply of enterprise. 18 Thle American Chamber of Commerce JournIal November,!116

Page  19 The Escodas in America A recent issue of the Newark Sunday Call carried a feature story about Maria Teresa and Antonio Escoda, telling something about their reception and experiences in America. Excerpts from the story by Hugh Franklin follow. "From War-Torn Manila to Glen Ridge-Martyred Couple's Children Win Friends For New Nation" "Winning new friends il New Jersey for the world's newest republic are Maria Teresa Escoda, 18, and Antonio Escoda, Jr., 16, Filipino children of a martyred couple who gave their lives in. aiding the Bataan death march survivors. Tony, a junior at Glen Ridge High School, is fast acclimating himself to American life and Maria, a freshman at Barnard, finds Essex county much pleasanter than the hurly-burly of New York. "The story of the Escodas and their New Jersey connections begins some 20 years ago, before they were born. Their father, Anbtnio, was studying journalism at Columbia and their mother, then Josefa Llanes, was studying social work there. They were among a group of Filipinos invited to a gathering at the Glen Ridge home of Mr. and Mrs. The Escodas visiting John Wayne in Hollywood Charles Griffith. Griffith has been making periodic business trips to the Philippines for the last quarter of a century, and has a large circle of acquaintances among the islanders. (Continued on page 21) q I I '1 I I -- I ~' rII — ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -' — ~~~~~~~~~~~~~~~~~l.vso -- _ w;S I IIA/45. H,0111 _- =0 — R I TRU-ORANGE I I SO GOODAND GOOD FOR YOU1 TQO! Elm. -'-'tcid at fth7e ROYAL SOFT DRINKS PLANT -0.,tt ne O) ': 'd by SAN '1; L;t'L IE, REWVERY YOUR GUARANTY OF UNEXCELLED QUALITY i - - I _ I - -- M The American Chamber of Commerce Journal November, 1946 19

Page  20 Commercial... (Continued from page 7) it is an amateur hour. And so just two weeks A^go (on October 14) a long-term weekly amateur hour began. Indications are that it will prove just as popular as it was in pre-war times. News periods over both KZRH and KZPI appear more 'or less the same. KZRH has six newscasts, be Broardcasting the neCns, KZPI ginning at 6:15 in the morning and ending with the last at 10 p. m, KZPI starts its early morning period at 6:00 with news in Spanish, followed at 7:00 a. m. with world news. NORMAN PAIGE, General Manager, PBC Both stations also present at different intervals such programs as the Philippine Red Cross, presentations of the Department of the Interior, the Bureau of Commerce and allied programs. These: programs are for the most part free donations but it is possible that these will be entirely eliminated in view of the government's acquisition of KZFM, formerly owned and operated by the United States Information Service. KZFM has already begun operation and is now on the air from 5 p. m. until 11:00. A cursory glance at the daily programs over KZRH and KZPI will show that' Tagalog programs easily predominate over the former station. KZPI confines itself mostly to adaptations of other programs but also airs Tagalog presentations, though not with as much frequency as KZRH. Other specialized programs on the two stations include: Over KZRH, a Chinese language broadcast daily, from 3 p. m. to 4:15 p. m. Over KZPI, Cavalcade of Commerce daily from 1:00 p. m. to 1:15 p. m. Over KZRH,, Cal Parrish's nitehawks, a popular prewar prolgram of recorded music. Over KZPI, the Amateur Hour sponsored by Philippine Newspic. Locally sponsored Tagalog program-KZRH 20 The American Chamber of Commerce Journal November, 1916f

Page  21 The Escodas (C'otiirfcd from page 19) it was at the Griffith home (on this occasion) that the Filipino couple made knownv their engagement and they returned to the islands and were married soon after...... "The children don't know what happened to their parents. Perhaps it is better. But they do know that their parents had, in their selfless service, made a host of undying friends, some of whom are now responsible for the children being in this country. "The Escoda Memorial Fund was started by these friends for the education of the children in the states. Many ex-prisoners and exinternees have contributed to express their appreciation to the children of their benefactors. "Tony is living with the Griffiths at 126 Essex avenue, Glen Ridge, while he attends high school. He finds his classmates friendly and hospitable, although he can't get used to a co-ed school-especially with 16 girls and only six boys in one class. The classes here are more informal than in the islands he says. He likes basketball and hopes to learn. football. His biggest thrill since arriving was going to a big league ball game. "Maria is overawed by New York crowds and dislikes the subway. A pretty, vivacious girl, she had known many GI's out in the islands, and her telephone has been very busy since she arrived in New York. Both Tony and Maria enjoyed attending an audition of a Lanny Ross broadcast in New York. "Both the young Escodas have delightful manners and a natural, shy charm that is sure to win many friends for them and their homeland. Tony plans to study journalism, like his father before him, and Maria will take up either journalism or social work. She is chaperoned by her aunt, Miss Elvira Llanies, who is taking refresher courses in social work in New York. I, I ____ __ __ _I _ __ Those good old days are Back Again! A - HUNTING * Firearms * Amnunition * Hunting Supplie. MOTORCYCLING HARLEY DAVIDSON (Exclusive Agelnts) I I Use FIENDOIL THE IDEAL HOUSEHOLD AND SPORTMAN'S OIL,1 - -, - More American Capitalists Are Coming To Invest Here! "For the first time, American capital is prepared to invest in the Philippines." -J. H. Marsman i - - ' -- -. -- - - - - - = — -7 11 il 11 Subscribe to the JOURNAL ONLY P4.50 per sq. m. and up Act Now!... Today! Investors! We sell beautiful homesites from 300 to 5,000 sq. m. payable 20 % down & the balance in 60 monthly installments. MAGDALENA ESTATE, Inc. 211 Consolidated Investments Bldg. Plaza Goiti, Manila The American Chamber of Commerce Journal November, 1946 21

Page  22 Manila Stock... (Continued from page 13) 26,000 shares changed hands on Oct. 19 and 21. During the last few days of the period, the price declined to.55, at which level 2,000 shares were exchanged on Oct. 31. Itogon, an "over the counter" stock, ranked fourth in value of sales with a total iof P113,690. Starting the period at.11, sales were made.09 was reached on Oct. 4. At this price a small lot of 500 shares was exchanged. From that date to the end of the period, trade was brisk on a dropping market until a low of with little variation in price. Final sales of 7,000 shares were made on October 31 at.11, the commencing price for the period. San Mauricio came fifth in value of transactions, accounting for P79,300. After a steady decline to a low of.32 on Oct. 19, there was a sudden rise in price to.39 on Oct. 30, at Which price 6,000 shares changed hands. On the same day, 10,000 shares were traded at.385, one-half centavo higher than at the beginning of the period. Lepanto Consolidated changed hands steadily during the entire period, with the price advancing from.13 to.195 on Oct. 17 and 18. From that high peak, there was a decline to.16 at which price 5,000 shares were exchanged on Oct. 31. Transactions marked up a total value of P72,400. Consolidated Mines, an unlisted stock, was not far behind Lepanto in total value of transacti'ons, accounting for P72,150. Beginning the period at.0075, the price moved up to.009 on Sept. 28. After holding firm at this level to Oct. 26, there was a further increase to.0092. Final transactions were made on Oct. 31 at.0094. Surigao Consolidated was one of the four listed stocks to show a loss in price at the end of the period as compared with the beginning. From a commencing price of.39, the decline was steady to a low of.35, at which price 13,000 shares were exchanged on Oct. 26 (the final sale for the period). Transactions in this stock had a total cash value of P64,000. S,1i, Mii(Iu'l f"Clf'C('l/ was the outstanding issue, accounting for P283,500, or 60% of the total for the class. After suffering an early decline which brought it to a low of P260 on Sept. 26 (300 shares), it more than regained lost ground before October ended. On Oct. 31, 120 shares changed hands at P300. Phil. Racing Club showed no activity until Oct. 2, when 10,000 shares changed hands at.95. Thereafter, activity was steady, the price dropping to.90 in the second week of the month but rising to 1.10 on Oct. 21. Final sales on Oct. 30 were at 1.04. This stock accounted for P119,000, ori 25% of the total for this class. Both Marsman and Mars mane Preferred showed increasing strength throughout the period, the former rising from.60 to.80, and the latter from.70 to.85. The former accounted for P18,600 and the latter for P20,300. Sugars, Banks and Ilnstlrance Trading in all three classes was so limited as to prevent analysis. Outstanding transactions were the following: Central Bais-30 shares on Oct. 16 at P525, total P15,750. Central Carlota-30 shares on Sept. 16, 30 shares on Sept. 21, and 6 shares on Oct. 8 all at P105, totalling P6,930. Bank of P. I.-100 shares on Sept. 21 and 200 shares on Sept. 30 all at P50, totalling P15,000. Filipinas-580 shares on Oct. 22 at P15, totalling P8,700. I)AILY I'RIC(' AVERAGES Prepared Date Sept.,,,, 9,.9 9,9., )~,. Oct., 9 9 '9 9, 9? 9, ' 16 17 18 19 20 21 23 24 25 26 27 28 30 1 2 3 4 5 7 8 9 10 11 12 14 15 16 17 18 19 21 22 23 24 25 26 28 by A. C. I A 'erage 26.30 26.60 26.75 26.80 26.50 25.70 25.75 25.65 25.60 25.55 25.60 26.30 26.40 26.35 26.55 26.55 26.75 26.95 26.95 27.40 27.70 27.45 27.55 27.80 28.15 28.35 28.60 28.85 29.05 29.35 29.60 29.05 28.75 28.53 28.18 28.30 28.35 lall & Co. Volume 13,000 15,000 17,000 16,000 8,000 54,000 25,000 46,000 31,000 28,000 21,000 167,000 33,000 22,000 28,000 14,000 13,000 22,000 76,000 49,000 54,000 57,000 46,000 9,000 23,000 71,000 33,000 35,000 46,000 21,000 39,000 37,000 47,000 55,000 12,000 28,000 P200 Volu1me 18,000 25,000 12,000 Closing Bid.04.80.07.007.84.165.07.53.36.325 29 28.35 30 28.10 31 27.65 MANILA STOCK SALES September 16 to October 31 Listed Issues Antamok.......... Atok Gold.......... Baguio Gold......... Bagong Buhay...... Big Wedge.......... I X L.............. Lepanto Consolidated Masbate Consolidated Mindanao Mother Lode San Mauricio....... Surigao Consolidated No. Sold 360,000 526,861 115,000 2,000,000 286,837 157,000 589,601 335,000 358,463 223,883 184,720 1st Sale.048.64.08.007.78.13.13.08.50.38.39 Last Sale.045.80.08.0076.85.12.16.075.55.385.35 Not Lsted-Over the Counter Sales COMMERCIAL & INDUSTRIAL SHARES Activity in this class of shares was oonfined largely to four stocks, all of which showed increased strength in price position at the end of the period. Acoje............... Coco Grove.......... Consolidated Mines... Itogon.............. Paracale Gumaus.... United Paracale...... Suyoc Consolidated... 94,000 102,718 8,129,000 580,000 38,000 248,458 276,768.19.03.0075.11.11.11.055.19.041.0094.11.11.12.06 (A total of 800 shares of Bahttoc changed hands on Oct. 26 and 30 at P3.40) 22 rite American Chamber of Commerce Journal November, 1946

Page  23 2it/in c/ite P4iZn9j i.. Since 1887 our advantages of superior workmanship, facilities and experience are evident in the numerous printing jobs we have done for business leaders. — CARMEO E BAUMANN INC. OFFSET LITHOGRAPHERS ' PRINTERS 2057 AZCARRAGR, MfNILA, PHILIPPINES -1 - - - It's l1 Manila's favorite... L Codes: A B C 6 Ed. Bentley 2nd Ed. Cables: "IPEKDJIAN" z IPEKDJIAN MERCHANDISING CO. IMPORTERS -- EXPORTERS 312 Ayala Bldg. (Nat. City Bank Bldg.) Manila, P. I. -il Sole Importers: FEPTCO FAR EAST AND PACIFIC TRADING CO. A. SORIANO Y CIA. General Managers Banco Hipotecario Building, Manila I -- - -- lThe American Chamber of Commerce Journal November, 1946 23

Page  24 I N Ov N, I0 I I I I I II 1 -Ir I I' I 1% "Ilq la NJ j z -11 t Iz i 3 I 11 11 I I I II I I I I) a 4 k i 4 Lo 11 )111 3 11 i I N N 24 24 ~~~~~The American Chamber of Commerce Journal November. 19141

Page  25 Know The Law... (Continued from page 12) ject to a sales tax, the fixed tax is P10 per year. If the business is not subject to sales tax, the fixed tax is to be paid on the basis of the previous year's gross sales and is graduated from P6 if gross sales did not exceed P10,000 to P450 if gross sales exceeded P500,000. Compensating Tax Republic Act No. 48 provides for a compensating tax on imported goods, to be equivalent to the percentage tax imposed on original trans'ictil'ns in. the Philippines. If the goods are to be re-sold, or used in manufacture, the compensating tax is not imposed. This act also provides for certain procedures to be followed in the payment of specific and percentage taxes. Specific Taxes Republic Act No. 56 establishes specific taxes on distilled spirits, wines, liquors, tobacco products, matches, firecrackers, skimmed milk, oils and fuels, movie films, playing cards, etc. Reconstruction of Corporate Records Republic Act No. 62 authorizes the Securities and Exchange Commission to establish rules and procedures for the early reconstruction of all corporate records. Building and Loan Associations Republic Act No. 64 provides for government aid in the rehabilitation of building and loan associations similar to the aid given in other laws to banks and insurance companies. Organization,... (Continued from page 11) whichever of the following amounts, as determined by the Commission, is less: 1. The actual cash value, at the time -of loss, of property lost or destroyed and the amount of the actual damage to other property of the claimant which was damaged as a direct result of the perils listed in the Act; or 2. The cost of repairing or rebuilding such lest or damaged property, or its replacement by other property of like or similar quality. In determining the "actual cash value;' of real property damaged or destroyed, the Commission has determined that it will give consideration to (a) the reproduction cost of such property in 1940, with appropriate allowance for its actual condition at that time, (b) the assessed value of the property, (c) the insured value of the property, and (d) such other factors as may warrant special consideration in each case. The New Tax... (Continued from page 17) heritances under P10,000 and ranges to 17 per cent on amounts over P1,000,000. In order to enable internal revenue agents to check carefully on the entries of merchants in their books and compel such merchants to make true and accurate entries, house bill No. 728 requires all corporations, companies, partnerships and persons engaged in business to keep their books or records in either a native language, English or Spanish. This provision of the measure is directed mainly at Chinese merchants, the majority of whom have consistently kept their books in own language. Vio!ation of these requirements is penalized by a fine of not more than P10,000 or a prison term of not more than. six years. The 12 revenue measures passed by congress are planned to bring in a total estimated income of P108,282,102 as against the pre-war collection from the same sources of P69,562,976 or an increase of P38,619,126, according t) the figures released by the office of the tax commission. We Have What Your Office kTeeds DESKS CHAIRS STEEL OFFICE EQUIPMENT STATIONERY DESK SETS IMPORTERS & WHOLESALERS * MENNEN Products * DRY GOODS * GROCERIES & CANDIES * TOYS and NOVELTIES EXPORTERS NATIVE OF PHILIPPINE PRODUCTS The FAR EAST AMERICAN COMMER C I AL COMPANY INC. Third Floor, Yutivo Bldg., Dasmarifias Street Tels. 2-85-86 - 2-85-87 Cable: "AMEREAST" Manila The American Chamber of Commerce Journal November, 194r 25

Page  26 Bibliography Postwar... (Continued from page 15) LANSANG, JOSE A. 3 Major Problems of the Republic. Evening News, 1: 9-12, July 3, 1946. Food production; peace and order; and social justice. Expresses regret that President Roxas has not talked much about social justice, which, according to the writer is basic. For "without actual social justice, there can be no peace and order, there can be no satisfactory solution to our food production problem. For that matter, without social justice, there can be no success and progress for the Republic of the Philippines." LANSIGAN, NICOLAS P. Can You Build a House This Year? Philippines Free Press, 37: 14-15, June 8, 1946. Answer: No, unless you are a hoarder or profiteer. Cites the fact that according to present schedule of prices P3000 will be enough only to buy "the posts and some assorted pieces to make part of the floor." LOCSIN, TEODORO M. The Sugar Industry: A Sour Note. Philippines Free Press, 37: 2, July 20, 1946. The story of the sugar industry which, before the war provided livelihood for 2,000,000 men and women and paid 43%o of the government's expenses. Selling at $5 a picul in the United States, it takes $30 to produce it here in that amount. LOPEZ, SALVADOR P. Imponderable as a Mountain.. Sunday Post Magazine, 1: 4, 22, June 23, 1946. An essay about the malady of the human spirit, not of a given nation at a given moment in history, but as the great malady of Twentieth Century Man. 'We all stand on the edge of doom, and we know it. Beneath the trumped-up optimism, in between the few moments of fevered pleasure that are permitted us, we know that our human species has about reached the culmination of its centuried stupidities: the curning and cruelty, the ruthlessness and greed, the oppression and exploitation, the prejudice and hatred of races, the bloody pursuit of Causes both holy and unholy. We are he'r to all these, and our inheritance presses upon us like an imponderable mountain." LOPEZ, SALVADOR P. Independence Can't be Granted. Sunday Post Magazine, 2: 4, 21-22, June 30, 1946. "A people must fight for it and not necessarily wi.h guns; they must win it and make it secur?, sur ound it with defenses, make it yield blessings for all in strength of spirit and stoutness of heart. Independence is not a privilege that may be conferred; it is a right that must be won." LOPEZ, SALVADOR P. Why Fear America? Sunday Post Magazine, 1: 4, 20, 22, June 2, 1946. Discusses the future of our democratic institutions and our national economy against the background of the prospective re'ations of the independent Philippine Republic with the United States and the rest of the world. Believes that "Since Amer ica alone can finance and feed the world, it is from America that the spirit of good will and renunciation of ambition must come." Furthermore, having given independence to our land, America "will thereafter give our people every opportunity to live the life of freedom. MALLARI, I. V. PL;st-War Housing. Philippine-American, 2: 21-24 June 1946. Shows why c'ty planning must give allowance for the basic principles of living, and goes on to enumerate eight such principles, namely: the family as the most effective instrument for personality development; family solidarity; constant contact with nature necessary; need for opportunity to grow things; community life; fellowship with neighbors; away from provincialism; accelerated t3mpo of life. Suggests that all the pertinent demands of modern community be integrated and given aesthetic expressions in terms of architecture and city planning. MALOLES, OCTAVIO L. The Bell and Tydings Acts, Manila Daily Bulletin, 126: 6, June 13, 1946. First in a series, analyzing U. S. legislation affecting the Philippines. Takes stock and inventory of the implications of the Bell and Tydings Acts for the future economy and independence of the Philippines. Raises 14 points to consider in an effort to determine whether or not to accept the acts, for the present at least, until better l-g'slation could be had. MALOLES, OCTAVIO L. The Bell and Tydings Acts. Manila Daily Bulletin, 126: 6-7, June 14, 1946. Second in a series, points out that as a people we are very good on details, but rather short on fundamentals, and that we see objectionable features in the Bell and Tylings Acts, yet we are blind to the advantages that they offer. Goes on to show what these advantages are, namely: the means they offer us in money to rehabilitate our industries, the goods that we need which will be supplied, the free-trade arrangements, etc. Critics of the acts think only in generalities and idealism and do not care a bit about the 18,000,000 Filipinos who should be the deciding factor. Sergio Osmefia. Apostle of Unity. Evening News, Saturday Home Magazine, 1: 5, 9, June 1, 1946. Tells of the last act of Osmefia as President of the Philipp'nes to show his passion for unity among the people when he signed a statement jointly with Presidentelect Manuel A. Roxas urging approval of the Bell Act which before this time he expressed disapproval. His wholehearted cooperation with Roxas in his m'ssion to the United States before being inaugurated is characterist'c of the man as a statesman and a Fi'ipino. PEREZ, ASUNCION A. Problems of the Republic. Evening News, Independence Day Supplement, 1: 10, 14-15, July 3, 1946. Foo p-oduction; tenancy problems; relief distributcn; homes for the homeless; adequate schools; peace and order. PEREZ, GILBERT S. The Pioneer American Teacher and Philippine Nationalism. Letter. Manila Daily Bulletin, 126: 8, June 10, 1946. Quotes a statement of McNutt, saying: "In this historic development, the school system was the incubator and the womb of the national spirit." P. I. Sencs Farmer's Group Abroad. Star Reporter, Anniversary Supplement, 1: F-H, June 8, 1946. Recommends adoption of a long-range agricultural development program; creation of an agr'cultural engineering division of the Bureau of Plant Industry; establishment of farm machinery and equipment experimentation; modification of land settlement projects; empetus for mechanization of agriculture; encouragement given to agricultural graduates; government should give attention to marketing of farm products. planning for the Capital of the Republic. Manila Daily Bulletin, Independence Edition, 126: 1-8, July 4, 1946. (Reconstruction Section) Envisions Manila as a city of beauty with well-laid plans; possibilities for power resources; making Manila the biggest 1946. Sunday Times Magazine, 1: port in the Orient. POBLETE, ELIZABETH M. Sunday Post Magazine, 1: 8, 22, June 2, 1946. Suggests several ways of 'licking the current house shortage." Post Forum. Sunday Post Magazine, 1: 21, June 23, 1946. Question: Are you in favor of amending the Philippine Constitution to grant American citizens and businessmen equal rights with Filipinos in the Philippines as provided in the Bell Bill? Yes, By Restituto de Ramos No. By Percival C. Doria Post Forum. Sunday Post Magazine, 1: 17-18, July 21, 1946. Question: Should the government institute drastic and extensive price control and distribution measures to bring down the cost of living? Yes. By Primitivo A. Lopez No. By Anton'o V. Navarro Profit Thr ugh Power. Everning News, Saturday Home Magazine, 1: 9, 16, July 6, 1946. Describes how rural electrification was introduced and how it has improved the lot of the great portion of American farm:ng populations. "Those who guide the destiny of the newly-born Philippine Republic would do well to cons'der how low-cost electricity could be brought to the rural ar:as as part of the program of building a firm and solid Republic." Progress Made in Transportation. Manila Daily Bulletin, Independence Edcition, 126: 1-8, July 4, 1946. (Post-War Progress Section) Prospects for small business; land, sea, and air travel; food shortage; stock exchange; public and private schools ready to meet the demand. Problem No. 2 Evening Nezws, 1: 4 June 1, 1946. The problems of igh prices and its consequences is regarded by the President as the second in importance. Proposed remedy: "Prices must be kept under control until production and importation reach saturation levels. We must avoid a price structure based on scarcity. We must avoid a wage structure based on inflated price." Problem No. 3 Evening News, 1: 4-5, June 3, 1946. Does America have imperialistic designs in the Philippines? President Roxas' answer is no. He said: "I find no dream of empire in America... I will not place my government in the position of accusing the United States Congress of willingly conspiring to cheat us out of our birthright." In defense of the Bell Act which is criticised by many of deliberately enslaving the Filipinos, the President denies the charge. He calls attention to the fact that the nearly fifty years of PhilippineAmerican relations do not bear witness to such a charge. The history of the Republican party in the United Stat:s is evidence of anti-imperialistic motives. That of the Democratic party is no less indicative of sincerity and good will. The American Chamber of Commerce Journal November, 1946 26

Page  27 PUYAT, J. A Filipino Looks at the Rehabilitation and Trade Acts. Am Ch Corn J, 22: 11, 23, 26, July 1946. Considers the Trade Acts with a view to the following: (1) Adopt the general assumption that these acts are far from perfect both from the Filipino and American standpoints; (2) Analyze the defects of the two acts (Tydings Bill and Bell Bill) through a system of weighing the good points against the bad points; (3) Consider the possibilities of obtaining better legislation under the present circumstances; (4) Consider what would be the possible effects of the acceptance or rejection of these two acts. QUEROL, M. N. New Hope for Caopra. Sunday Times Magazine, 1: 3, June 23, 1946. Describes two new types of copra driers and how they operate to improve standards as required by overseas market. RETIZOS, ISIDRO. What Will Happen After 18 years of Trach Tieup with U. S. Terminates? Evening News, 1: 8, 12, July 3, 1946. Draws a gloomy picture. Returned; Hawaiian Filipinos Organize a Two-Million Peso Corporation. Philippine Free Press, 37: 12 -13, July 20, 1946. RITTER, SIMPSON M. Filipino: Be Yourself. Philippine-American, 2: 9-11, June 1946. Advises Filipinos not to give up their own traditions, customs, philosophies, and to be selective in their adoption of American ways. SABALONES, SAMSON T. The Fish and the Bomb. Philippines Free Press, 37: 7, July 13, 1946. Shows that war's ravages did not altogether end with the war as reckless greed still triumphs, as dynamite fishing is practised in Cebu City. SIAN, SOFRONIO M. Blocking the Black Market. Sunday Times Magazine, 1: 2-3 July 14, 1946. Government directives will not bring prices down. All means tried so far have failed. "There is only one way out-organize more cooperatives." SUMAGUI, JUAN O. Our Critical Food Situation. Am Ch Cor J, 22: 21, 25, 28, 31, July 1946. (Reprint ed from the Bull. of Phil. Sta., Viol. lI, No. 1) Compares the food situation in 1941 with what it is now. In 1941 we had only to import 21,590 cavanes of r'ce. The price per cavan of 56 kilos of second class macan was P6.10. Gives facts to show what were lost in crops, livestock as a result of the occupation - P420,000,000 in all. Animal loses were as follows: carabaos, 44e%; horses, 54.5%i; cattle, 67%, hogs; 61%; chickens, 69%. Shows that, with rice production and importation much reduced, "we are facing a rice shortage which will likely last for 4 months." Suggests that the government 'adopt a comprehensive plan for the promotion of a food productive drive in conjunction with the peace and order campaign." - FOREIGN TRADE OF THE PHILIPPINES (Bureau of the Census and Statistics) January 1, 1946 through June 30, 1946 Imports January............. P 36,156,438 February............ 41,421,112 March.............. 62,537,552 April................ 8,393,464 May................. 66,540,914 June............... 61,224,523 TOTALS........ P276,274,003 Exports P 816,638 757,016 1.218,622 2,304,255 2,120,734 5,409,736 P12,627,001 Re-exports P 67,878 608,731 2,160,168 935,752 2,751,891 3,012,272 P9,536,692 F I PII Wbt be... I * R. C. ALLEN BUSINESS MACH INES * PAYMASTER * MERCURY DUPLICATORS * HERMES TYPEWRITERS * MADAS CALCULATORS * SCHWAB O STEEL AGE Adding Machines c (Facit) el. calculators Cash registers Bookkeeping Machines * Checkwriters & Protectors * Commander 45 * Commander 55 c Mercury * model 6 (standard) * model "2000" * model MEDIA (P HERMES BABY able) * hand-operated * el. operated automatic * el. operated super automatic * Safes Vault doors FILING CABINESTS q~r will you find a flavor like that of. Bottled in the U. S. A, Fine American Whiskey * Preferred throughout the Americas Sole Importers (FAR EAST & PACIFIC TRADING CO.) A. SORIANO y Cia. General Managers Banco Hipotecario Bldg. - Tel. 2-79-61 - Manila (Items marked. * presently in stock) SOLE AGENTS MANILA OFFICE EQUIPMENT CO. 3rd floor Yutivo Bldg. (Offices FAR EAST AMERICAN COMMERCIAL Co., Inc.) Tels. 2-85-86-2-85-87 The Anc.ilcan Chamber of Commerce Journal November, 1946 27

Page  28 STATISTICS ON BANKING RESOURCES, LIABILITIES, AND MISCELLANEOUS ACTIVITIES (Prepared by the Bureau of Banking from reports submitted by 11 operating commercial banks) -- Resources Week Ending Week Ending Week Ending Week Ending Sept. 14, 1946 Sept. 21, 1946Sept. 28, 1946 Oct. 5, 1946 Week Ending Oct. 12, 1946 Loans, discounts and overdrafts........ Investments.............. Due from Head Office and/or other Office or Offices which supplies working capital tb foreign banks........... Due from other banks in the Philippines. Due from banks outside the Philippines. Cash on hand........................ Balances in clearing account........... Other resources not included above..... P200,985,546 P197,012,300 39,800,713 39,801,055 P195,188,795 P190,686,054 39,829,960 39,830,639 47,556,229 50,678,968 106,611,273 160,355,974 36,500,000 120,955,407 54,127,377 52,950,004 105,479,996 160,168,597 40,500,000 121,789,432 46,935,143 51,043,326 111,913,060 159,062,414 40,000,000 109,789,473 P753,762,171 58,272,476 47,432,827 114,132,599 159,628,471 37,000,000 118,606,160 P176,942,906 39,832,139 57,525,709 52,507,680 121,047,862 154,291,965 45,000,000 117,837,981 Total resources.......... P763,444,110 P771,828,761 P765,589,226 P764,986,242 Liabilities Demand deposits..................... Savings deposits..................... Time deposits........................ Deposits of public funds.............. Due to Head Office and/or other Office or Offices which supplies working capital.......................... Capital-domestic banks.............. Surplus, reserves and undivided profits Due to other banks in the Philippines... Due to banks (Clearing House Depository)............. Due to banks outside the Philippines.... Other liabilities not included above..... P226,354,089 118,821,307 9,689,096 123,951,278 41,075,118 33,414,400 12,254,197 6,727,805 36,500,000 7,035,783 147,621,037 P233,086,896 118,821,649 9,540,815 120,452,712 40,201,480 33,414,400 12,237,931 6,677,649 40,500,000 7,139,868 149,755,361 P771,828,761 P224,465,840 119,622,372 9,611,454 122,168,720 40,825,236 33,414,400 12,230,577 6,127,941 40,000,000 7,626,151 137,669,480 P230,687,305 119,826,664 9,476,295 118,303,788 41,874,017 33,414,400 15,519,280 5,832,479 37,000,000 8,014,878 145,640,120 P227,042,223 120,130,600 9,505,044 112,261,988 42,287,836 33,414,400 15,826,817 5,479,479 45,000,000 8,196,836 145,841,019 Total liabilities.......... P763,444,110 P753,762,171 P765,589,226 P764,986,242! Miscellaneous Exchange bought since last report —spot. Exchange bought since last reportfuture......................... Exchange sold since last report-spot Exchange sold since last report-future Import bills whether for the purpose of collection only or otherwise received since last report.................. Exp3rt bills sent abroad whether for the purpose of collection only or otherwise since last report............. Debits to individual accounts since last report................. Letters of credit issued since last report Trust department accounts: a. Court trusts................. b. Private trusts c. Corporate trusts.............. P 6,102,595 1,006,250 12,268,708 2,351,004 P 11,840,255 403,500 13,720,086 3,385,547 P 11,519,106 1,568,928 14,502,117 5,102,530 P 14,674,526 P 12,352,767 1,273,500 13,845,120 2,425,979 804,000 11,317,378 4,307,537 7,889,807 7,291,413 6,416,567 5,674,485 3,501,862 1,794,279 101,161,782 5,870,216 1,178,623 3,876,162 7,582 645 706,795 2,205,763 2,861,313 2,464,111 76,170,150 84,709,312 100,439,948 8,944,954 9,256,985 19,227,142 95,064,299 7,582,262 1,235,302 3,908,022 7,582,262 1,196,111 3,912,072 7,582,630 1,203,891 3,,921,730 7,582,645 1,234,463 3,910,040 7,582,243 28 The American Chamber of Commerce Journal November, 1946

Page  1 JUL 1 ~41 THE AMERICA COMMERCE........... 1': ~ ' - -- ' ---' - -................................,. *..-*-..-...... *.::* —...-.. ' % -........ -............. *.:.... '............ i::?: ~,:....::...........:.... -. =....fS::.. =........... y --..........:..~...................-.:- 0 ' S S ys-sssys — s.................';'........../~~~iiii:i '.''' i. ~:~ "'::~'~~: Mayflower Studio Photo Much Needed Lumber Arriving in Manila December, 1946 Vol. XXII, No. 8 50 Centavos

Page  2 - - = t, I =,!~~- FAITHFUL TO THEIR REPUTATION 'S i'!.. II Id! i|! iS! II f! if! if! i! CONTINUE TO BE THE RECOGNIZED LEADERS IN QUALITY AND WORKMANSHIP CORONAS - Our pride - Manila's Best in boxes of 25 ALCALDES -the all day smoke in. boxes of 50 IR;is It 0 It 0 It!;is;i iis;ti t 0 ii; 0; 0 I f 0.1 0 0 f 0 f I i I I I i I I I i I I I I I I K! iS! I I I WI I I v) KUENZLE & STREIFF INC. Temporary office at: 31 TAYUMAN, MANILA at "ALHAMBRA" Cigar Factory Building IMPORTERS & EXPORTERS Manufacturers' Representatives WINE & LIQUOR DEALERS I.;;, —~k - - - Q~ — k - -k A - -k- - -:! - BELLEZAS -a small, light cigar in boxes of 50 S.! i)! is i)! I!t i)! i! ')! iS! if! i)! 1)! i)! i)! *1 hi! i)! i!.i!,-.! General Agents for: SUN INSURANCE OFFICE, Ltd. London. SPRINGFIELD FIRE & MARINE INSURANCE CO., Springfield, Mass., U.S.A. BALOISE FIRE INSURANCE CO., Ltd. Basle, Switzerland Underwriting: Fire Insurance Marine Insurance Motor Car Insurance Accident Insurance Aviation Accident Insurance Baggage Insurance Loss of Profits Insurance BEWARE OF IMITATIO INS ALHAMBRA CIGAR & CIGARETT MFG. CO. 31 Tayuman - Manila ---, * a* W- ~fW ~-nC 0%_ _5_ _ -10-1C1C ~C 1

Page  3 THE AMERIC ' F"I'OF COMMERCE Saga of Enterprise in the Coconut Industry...... 5 New Business Comes To The Philippines by Bernardino Ronquillo................... 6 Some Problems 'of Philippine Lumber by Florencio Tamesis, Director of Forestry... 7 Payments of Claims in Relation to Business and Industry by Dr. Frank A. Waring................... 8 T;he Present Need for Vocational Education by Dr. Gilbert Perez....................... 9 Editorials: The Land Settlement Problem.............. 10 Money vs. "Things"....................... 10 Knlow the Law!...................... 12 "Santo Tomas"............................... 13 Postwar Philippine Plant Industry Possibilities by Mariano E. Gutierrez................... 14 Manila Stock Exchange Report................ 15 Rehabilitation Not........................... 20 P10,000,000 Salvage Job....................... 20 Buntal Fiber.............................. 20 World Sugar.............................. 21 Inter-Island Shipping.......................... 21 News and Notes............................ 21 Statistics on Banking Resources and Liabilities.. 28 L V; ---` —7- —7-TI` — i 'L 'C Z Z 'C ' YI —T\--T —- — B. GABERMAN STOCK BROKER 328 Dasmarifas Member MANILA STOCK EXCHANGE A.f i 'r i 0 #.L Give a KODAK for Christmas this Year! t KODAK PHILIPPINES, LTD. 104-13th Street, Port Area, Manila 104 —13th Street, Port Area, Manila f I 0 0 l PI The American Chamber of Commerce Journal December, 1946 I -k. S

Page  4 -~~-VW. "aC_ C ). AM_. 'a _ ~m p A A I i I i i, I - SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and EXCLUSIVE DISTRIBUTORS of HIGHEST-PURITY OXYGEN and ACETYLENE GASES "NATIONAL" CARBIDE 0 I 0 0 0 0 * WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS of "SUPERFLAME" BOTTLED GAS and "TAPPAN" GAS-STOVES with Complete Installation and Service Facilities OFFICE and PLANT: Byng St. Mandaluyong (near Mandaluyong Bridge and Shaw Blvd.) Tel. 8-72-80 -~~-r;~-c~~-3~-=~~'s~- =~~~~~-~-~-~~~-~~ 7~-~~i~ T~~ ~~-~,~-~~~ ~-~- ~~-~ ~-~ ~~-~' ~T~~ ~TI ~TI ~T~~ ~-~~ ~7-~~~ iT~~ ~T~~- ~TI ~~-~ ~-. FS\ OIND\\\\\\Aa L... THE PERFECT MIXER m- 1 ~ Now available In any quantity at any time. moomm-r.AFar(LIt 9arf c c Bottled at the-ROYAL SOFT DRINKS PLANT Owned & Operated by SAN MIGUEL BREWERY YOUR GUARANTY OF UNEXCELLED QUALITY' 4 The American Chamber of Commerce Journal December, 1945

Page  5 A Saga of Enterprise In the Coconut Industry Before the war Peter Paul Incorporated was perhaps the largest user of desiccated coconut in the world. It bought almost 100% of its coconut from companies in the United States which were supplied from the Philippines. On several occasions some thought was given to manufacturing their own coconut,,but each time the suggestion was put aside for lack of trained personnel and lack of desire to enter a new field. Along came the war, with its attack on the Philippines and their subsequent capture by the Japanese. This cut off the source of supply 100% and forced Peter Paul to look for new raw material supplies, as they had already made a decision to keep their well advertised candies on the market in. order not to lose the value of their long-term radio advertising campaign. This, coupled with the fact that the armed forces had early asked for commitments, and later even more, in order to supply the American service eman wherever he might be with that bit of America, a, five or ten cent candy bar. Peter Paul wanted to save its business, preserve a well advertised name and to do its bit in the war effort. The Army helped at first, allocating Ceylon, coconut, but,ihe Ceylon supply was not sufficient for the use of all pre-war tradesmen. Peter Paul went to its own suppliers and ask for them to supply the knowhow and capital or share the capital expense and set up factories in places not directly affected by war. No pre-War producer was willing to do this, to help replenish a fastdiminishing supply of desiccated coconut. It was at this time that a bold and daring step was decided on by Peter Paul, Inc. They would build their own factory, they would go into the business with perhaps the only tool they had,-Capital. But they carried with them a determination to succeed, and succeed they did. This company located a factory site and with all war inconveniences and lack of technical knowledge of the manufacture of desiccated coconut, erected a factory whose operation was a credit to the industry. Looking back, the only mistake made was to locate the factory in an area where the supply of nuts was not sufficient; but at that time, it was the best spot in the West Indies and only its business expansion caused the raw material shortage. They built the first factory in Puerto Rico, and later on in the state of Florida, where they imported nuts from the surrounding area, the West Indies, and Central America. True, this was costly coconut, but throughout the war it gave coconut to the public and G.I. Joe. Along came the war's end and by then the company felt they had learned how to make desiccated coconut and wanted to do so under ideal conditions and as cheaply as possible. These were growing pains. Soon it was decided to send a representative to the Philippines. His reports and subsequent experience indicated that they could acquire land, ideally situated as to raw material, transportation and excellent labor. No time was lost, the Florida factory 'and part of the Puerto Rico factory were dismantled, packed and shipped to the Philippines. While it was on its way, negotiations for the actual building site were begun in the chosen area, Quezon Province which was formerly TayaJbas. (Continued on page 26) The Construction Staff In the center is Mr. Louis Zeun, engineer in charge. New coconut plant built by Peter Paul Phil. Corp. in Candelaria, Quezon in final stages of construction - September 17, 1946 The American Chamber of Commerce Journal December, 1946 5

Page  6 New Business Comes to the Philippines By BERNARDINO RONQUILLO Philippines business has pulled itself partially out of the wreckage of war and in 1946 reached a stage in its rehabilitation where it could look with more confidence into the future. Its restoration from a state of almost complete paralysis early in 1945 to a point at least approaching normalcy today must be considered quite remarkable in the face of obvious serious handicaps, including extreme shortages in consumer goods and housing, lack of transport and of machinery and equipment to revive industries and restore the productive capacity of the nation, and vicious inflation that accompanied the disturbance of the equilibrium between supply and demand. The most serious handicap today is the lack of capital. Four years of war and of enemy occupation so impoverished the nation that when V-J Day came the country lacked the necessary financial resources to start rebuilding. The government was poor-the national coffers were virtually empty. The people-the ordinary individuals who constitute the backbone of the new nation-were no richer. The American Congress had to act to take care of the dire needs of the government and of the people. The War Damage Act was intended to cope partly with the emergency here, but it was not expected to put private business back on its feet. Restoration of private business was a job left largely to Filipino resources and to Filipino ability to attract the capital needed to reconstruct the national economy. Congress, at any rate, took the initiative in trying to bring about the accomplishment of this objective through a long-range economic partnership between the United States and the Philippines under the Bell Trade Act, one of whose significant objectives is to encourage American capital to enter the Islands and help in the rehabilitation and development of Philippine economy. Neither the War Damage Act nor the Trade Rehabilitation Act has so far visibly contributed to the revival of business here. What has been done so far in the way of rehabilitating private business and industry has purely been on private initiative. Business did not wait for war damage payments; it does not look forward now to getting much help from this source, judging by the volume of claims which the war damage commission will have to settle first before making disbursements to business establishments. It has not waited for final approval of the parity rights amendment and ratification of the trade agreement between the P. I. and the U. S. Outside capital has started coming in an increasing rate, reflecting the great possibilities of business here and the confidence that foreign capitalists have in the sense of justice and fairness of the Philippine government and people. While domestic capital has shown aggressiveness, too, the figures show that a good deal of the new investments in certain classes of enterprises has been provided by outside sources. Even alien capital from domestic sources has played an active role in the restoration of private business here. As early as the first part of 1945, Chinese businessmen took the lead in restoring downtown Manila, setting up business quarters in hastily repaired buildings and other make-shift establishments. Today big business, a good pa'rt of which is foreign, is coming back, and establishing itself on a permanent basis. A number of foreign corporations have already extended their operations to the Philippines. From December 13, 1945 to December 10, 1946, the bureau of commerce licensed around 45 new foreign corporations, aside from those reconstituted. Subscribed capital of the new corporations added up to the impressive figure of P216,737,000, or more than the subscribed capital of all domestic corporations registered with the securities and exchange commission during about one and a half years of the postwar period. Most of the foreign corporate investments so far have gone into the insurance business, the flow of new capital into this class of enterprises particularly increasing during the last few months. At least 14 of the new foreign corporations licensed to do business here are dealing in various types of insurance. Two of these were registered during the first five days of December-the Fidelity & Casualty Co. of New York with a capital of P4,500,000 and the Aetna Insurance Co. of Connecticut with a capital of P15,000,000. Indicative of the rising flow of new capital from abroad was the fact that during the first tedays of December alone, the total c, pitalization of the three reportin; foreign corporations already almo, equaled the total for the whole of Nc vember. Also registered this month was the Wolgross Trading Co. of Nex Jersey, which reported its capital at P4,000,000, to engage in exporting and importing. A. L. Shelton, Inc of Calificrnfa (no capital reported) was also licensed during the month to engage in, exporting, imports'2 and jobbing. November was likewise a bu, month for new foreign corporation entering Philippine business. ~, new foreign corporations were,Lcensed, the biggest of which - the Fireman's Fire Insurance Co. of California-reported a capitalization of P10,171,940. Corporations licensed to engage in transportation, however, dominated during the past month: the United States Lines Co. of New Jersey, capitalized at P5,717,480, to engage in the steamship business; Dodwell & Co., Ltd. of London (only British firm registered during the month), capitalized at P4,000,000, to operate a shipping agency as well as engage in export and import trade; The Roy Farrell Export Import Co., capitalized at about P2,500,000 (HK $5,000,000 in Hongkong), to engage in air transportation as well as in export and import. Reconstructed during the month were the Orient Insurance Co., the China Traders Ins. Company Ltd. and the Insular Lumber Co. Coming next to insurance companies are corporations licensed to do business in importing and exporting with at least 10 foreign concerns having been registered so far. The others are dealing in transportation, construction, general merchandizing and electrical business. Some of the largest-capitalized corporations were licensed earlier this year. The international Standard Electric Corp. of Delaware was licensed February 28 of this year, reported its capital at P60,000,000. Domestic capital, part of which has been supplied by aliens residing in this country, has likewise shown initiative in the face of a generally tight cash situation. Official statistics on new investments in domestic corpo(Continued on page 24) 6 The American Chamber of Commerce Journal December, 1946

Page  7 Some Problems of Philippine Lumber By FLORENCIO TAMESIS Director of Forestry After liberation the Filipino people were delighted with the relief "eceived from the United States, -ich as food and clothing, of which -his country was miserably desti'ute after a period of more than!hree years of enemy occupaton. On the other hand, they were bitter~ angry with the armed forces of the enemy who committed not only untold brutalities to thousands of:nnccent civilians but also the deStruction for no military reason of thousands of houses and buildings 32' all descriptions throughout the ength and breadth of the Philip-nes. The destruction was more.: less complete in many places, esb;Icially in the principal centers of pbpulation, making the housing conditions in these places a critical problem. The needed reconstruction program facing the government is tremendous and will require enormous quantities of building materials, especially lumber. But, to produce lumber in quantity sufficient to meet the demand for reconstruction requires capital and machinery for logging and sawmilling. On account of the inadequacy of capital, the scarcity of machinery in the Philippines and the difficulty of importing it from the United States since liberation, and lack of ships, lumber production has not progressed as rapidly as it should. Immediately after liberation, the lumber industry was almost completely at a standstill. Lumber was practically unavailable in the market on account of lack of transportation facilities and the danger of cutting timber in the forest where Japanese stragglers lurked. As conditions of peace,and order improved and transportation facilities became more available, limited quantities of lumber began to reach the market. In May, 1945, Tangile, Apitong, Red Lauan, Mayapis, White Lauan and inferior kinds of lumber cost P2,500 per thousand board feet in the retail market in Manila as compared with P69 to P84 per thousand board feet of the same kind of lumber in, 1941. It was decidedly the greatest incentive they ever had in their lives for those who desired to make money in the lumber business. When the Bureau of Forestry was reorganized at the end of April, 1945, it started immediately issuing (Continued on page 25) Mayflower Studio Photo """"" """"' ~ .,.T.....,. I ~; ~ ~i~ 1 ~-~~~~~:.i i..:.:...:.. Logs are arriving at Manila lumber yards in increasing a/mounts. Mayflower Studio Photo The American Chamber of Commerce Journal December, 1946 7

Page  8 Payment of Claims in Relation to Business and Industry by FRANK A. WARING Chairman of the United States Philippine War Damage Commission The job of the United States Philippine War Damage Commission is to assist business and industry as much as it can in, the rehabilitation and development of the Philippines. You may be certain of our wholehearted and complete cooperation, in so far as it is possible within the scope of the Philippine Rehabilitation Act. The Commission recently held public hearings to give representatives of organized groups of businessmen, industrialists, farmers, religious organizations, and others an opportunity to express their views and make suggestions regarding rules and regulations relating to procedures which have been adopted or may be adopted in the future by the Commission. Several witnesses expressed concern over the provisions of the Act which require the Commission to pay up to P1,000 on all approved claims before making larger payments. It was their view that, inasmuch as the task of the War Damage Commission is to assist in the rehabilitation of the Philippines, first consideration should be given to the claims icf business 'and industry. They stressed the importance of production and pointed out that through production, and production alone, come employment and,better wages. They emphasized, that only through production and increased employment can there be economic recovery and future economic development in, the Philippines. I can appreciate their position. It seems obvious to me that if industry and business could be rehabilitated promptly it would be a major factor in the early rehabilitation of all the people. I am in accord also with the belief that, if hundreds of millions of pesos are paid to individuals who are unable to buy necessary goods and commodities because of lack of production and consequent unavailability of such goods, there is a serious likelihood that the money will be dissipated by squandering it on useless articles or wasting it in other ways. I agree that if this occurs there will be grave danger of serious inflation. Yet we must consider the special plight and problems of the man whose losses, although small in amount, constituted a large part of his total resources. We cannot ignore his need for rehabilitation. On this point the law is specific. The commission must pay in full up to P1,000 on approved claims before it can make larger payment on any claim. This is the mandate of the United States Congress and the Commission must comply with it. It is not within our province to do otherwise. From time to time the question has arisen as to the rights of corporations in connection with the presentation of claims to the Commission. The Congress has included as qualified persons "any unincorporated association, trust, or corporatilon (or, upon dissolution, its successor), organized pursuant to the laws of any of the several States or of the United States or of any territory or possession thereof (including any other unincorporated association, trust, corporation or sociedad anonima organized pursuant to the laws in effect in the Philippines at the time of its organization), but excluding any corporation wholly owned by the Commonwealth of the Philippines (or the Republic of the Philippines)." The reason for the exclusion of any corporation wholly owned by the Commonwealth or the Republic of the Philippines is, of course, that such corporations are eligible as public claimants under Title III of the legislation dealing with the restoration of public services. No payments, however, may be made to any corporation ior other organization, if it is owned or controlled by an enemy alien or by any person who has been found guilty of collaborating with the enemy, or of any act involving disloyalty to the United States or the Commonwealth of the Philippines by a civil or military court having jurisdiction. In accordance with the Act, therefore, corporations or similar legal entities are qualified claimants and their claims will be considered on the same basis as any other qualified claimant if they were organized under the laws of the United States, its several States, territories, or pos sessions, or laws in effect in the Philippines. The claim form adopted by the Commission has been so drawn that it may ibe used by either individuals or legal entities. Since the arrival here of the first group of Commission officers and other staff members on November first, I have been advised by scme businessmen who suffered substantial war damage losses that they did not intend to file claims because of the requirement that the Commission must pay up to P1,000 on. all approved claims before making larger payments. They expressed the opinion that, if the Commission receives approximately one million claims and follows this procedure of payment, the fund of P800,000,000 will be so depleted as severely to limit larger payments on bigger claims. They contended it would be a waste of their time and money to prepare and submit their claims under such circumstances. There may (be some justification for this attitude. I wish to point out, however, that the Commission is required by law to report to the United States Congress on its operations in the Philippines under the Rehabilitation Act and that it will be impossible for the Commission to make an accurate report unless business and industry present the true and complete facts. It would be unfair and unjust to the people of the Philippines if we submitted incorrect or incomplete reports to the Congress. It would be unfair and unjust to expect the Congress to base any future action it might take with regard to the Philippines on such reports. The Congress must have an authentic picture of conditions here and the results of the Commission's efforts to improve these conditions. When adjudicating claims we are required by law to make certain that no claim shall be approved in an aggregate amount which exceeds whichever of the following amounts, as determined by the Commission, is less: (a) The actual cash value, at the time of loss, of property lost or destroyed and the actual damage to other property of the claimant which was damaged as a direct result of (Continued on page 18) 8 The American Chamber of Commerce Journal December, 1946

Page  9 The Present Need for Vocational Education by GILBERT PEREZ The main problems that face the newest Republic in the Far East are, first, those pertaining to the restoration iof law and order and, secondly, those which refer to rehabilitation and the rebuilding of that which has been destroyed by the ravages of war. It is practically certain that these rehabilitation programs will also ser. iously consider a more positive industrialization of the country. There will, of course, be many contributing factors to this industrialization but no one can deny that vocational education will play an extremely important role in the industrialization of the country. This will necessitate skill, brain and power and human energy to achieve any worthwhile results and vocational. This industrialization will also necessitate higher standards of living and higher wages and these higher wages will be possible only by increasing production per man hour. This will mean increased mechanization and it will take highly trained workers to operate the necessary industrial and agricultural machinery. Machinery cannot be entrusted to ignorant, inefficient and underpaid labor. After these problems have been solved and after physical assets and the economy of the country have been rebuilt then and only then will or should those who have the destiny of the country in their hands give special attention to some of those activities which are sometimes erroneously termed cultural. We say erroneously because some imagine that the culture of a country is limited to the fine arts, and to the humanities. It is erroneous becajuse the culture of a country is judged not solely by the scholars that it has produced, by its poets, its artists, and its statesmen, but also by the roads and systems of communication which it has developed, the type of shelter that it has provided its inhabitants, the processes for manufacture of clothing and other necessities and the types of agricultural activities that provide food for its people. Furthermore, the niceties of lifethe art and the literature of a country have never developed within a milieu of poverty or of economic backwardness. The great periods of literature and art have always been contemporary to a period of positive..,..... c I: ~:~:,.z:..I:I ~ a ~i i~:ii:~ i:::t~,- I g a "" ~:~ i~:( ~:~I: a:~~:~ 'iw a * ~:55~ j.~:~-;~ C~IYII~III~- economic advancement. Poets do not write odes on empty stomachs and art only l'nguishes in an atmosphere of poverty. It is only when the economy of a country has reached the point that many have a certain amount of leisure time that we see the blossoming of the arts. Previous to that time the main activities of the people must be devoted to keeping body and soul together. Never before has the Philippines needed a greater amount of creative education, never has it needed greater emphasis on subjects that are related to life and living instead of being related to mere college preparation. When we sa'y creative education we do not confine ourselves to vocational subjects. All of the subjects of the curriculum should have more of a creative objective than one that is merely for college preparation. This holds good in the case of English and science as it does with reference to purely vocational subjects. Perhaps the emphasis that has been given to college preparation in our high schools may be the basic reason why there has been so little creative writing, why so few English teachers have written books and why when a book is published it so difficult to sell an edition of more than 1,000 copies. With the exception of textbooks, books and, outlines fior civil service and scholastic examination, no author has ever been able to make any money from the publication of a book. This is an evidence that language instruction that is offered merely as an admission ticket to a college or a university does neot develop a larger reading public and does not result in more books and more creative writing. It is when we place all of our secondary subjects - both academic and vocational - on a purely creative basis that they will function in the life of the community. However, present indications show that the people and those who lead the people are still giving more funds and more attention to colleges and college preparation and less attention to those schools which axe supported to train those who will rebuild the stricken economy of its people. We have in the city of Manila alone more colleges and universities than there are in the combined provinces of Canada, more than there are in the City of New York with its eleven million people. The majority of the colleges are in rented buildings and were in rented buildings before the war, a condition which obtained in no other country. It cannot be denied that the main interest and the main effort here along educational lines is the offering of college or pseudo college training with little or no attention to the training of craftsmen and in, dustrial and 'agricultural technicians and workers. Due to the scarcity of suitable rented buildings for new universities and colleges, one would not be surprised to find a university housed in a group of air conditioned barong barong with a second hand quonset hut as an assembly hall. This attitude continues on all along the lines from the highest to the lowest. Realizing the difficulties in the establishment of vocational schools and seeking the paths of least resistance, less attention is devoted to vocational schools and classes and the main interests are college preparation and college concepts. Academic instruction for college preparation can be done with a minimum of equipment and a minimum pay to teachers and the support of these schools can easily be shifted to the people by means of tuition fees-so why bother with a type of education that necessitates larger expenditures for equipment and teachers, smaller class groups and more headaches in connection with administration and supervision? Our Manila colleges are flourishing but some of,our trade schools are still unopened and there is only one vocational trade school to every hundred or more collegiate institutions. (Continued on page 16) The American Chamber of Commerce Journal December, 1946 9

Page  10 COMMERCE L the influence of Act No. 65 will be limited by the number who will prefer to take advantage of other features of the Philippine "G. I. Bill of Rights." A recent writer on westward expansion in American history has said, "Three primary elements affect a decision to move: (a) a practical means of transportation, (b) reasons for leaving an old home, and (c) reasons for going to a new home." Experience indicates that with the Filipino farmer and laborer, element (b) will prove of outstanding importance. Without too abrupt a jump in thought continuity (we hope), it may be stated that landlords and employers, if the government's inducements to new settlers prove effective, will be faced directly with the problem of offering competitive inducements in iorder to persuade them to remain where they are. A program of land settlement that really works will prove more effective in improving the economic condition of the tenant farmer in old settled regions than a whole bookful of "tenancy laws." Published Monthly in Manila, Philippines The American Chamber of Commerce of the Philippines, Publishers Robert S. Hendry, Editor Entered as second class matter Dec. 10, 1945 at the Post Office at Manila, P. I. Subscription rates: One year in the Philippines, P5.00; United States, $5.00 U. S, Currency, American Chamber of Commerce of the Philippines Directors Win. H. RENNOLDS, President Samuel Garmezy AMOS G. BELLIS, Vice-President E. M. Grimm E. BYRON FORD, Treasurer J. A. Parrish A. D. Calhoun Julius S. Reese John F. Cotton THE LAND SETTLEMENT PROBLEM Since the achievement of independence, the Philippine government has turned its attention seemingly with increased determination to the problem of land settlement. In two separate acts (Nos. 63 and 65), the First Congress offered its direct answer to the challenge that is inherent in the fact that on the one hand are tens of thousands of landless farmers and agricultural workers and on the other hand wide areas of farmerless hectares. By Republic Act 63, the government in theory at least has made it possible for every Filipino, who so desires, to own his own farm, free of purchase price. To any Filipino over 18 years of age who is at present landless and who has never secured free land from the government, the government will give 24 hectares of agricultural land from the public domain. By Republic Act 65, the government went considerably further in the offering of inducements, but limited its offer to specific classes toward which it feels specific obligations. For a period of three years, lands controlled by the National Land Settlement Administration are to be held exclusively for veterans and the families of deceased veterans, who wish to acquire their ownt farms. Increased incentive for these prospective settlers to take advantage of the offer was provided by the government's plan to aid them financially to move to their new locations and to establish themselves as independent farmers. Both of these laws conform with the basic philosophy toward land holdings which was formulated by the Philippine government many years ago. That philosophy is characterized chiefly by a dislike for large land holdings by individuals or by corporations and for absentee land ownership. Whether the laws will prove to be effective instruments for the translation of that philosophy into practical terms remains to be seen. Certainly it is not likely that many landless farmers h'ave the financial resources to take advantage of Act No. 63. And the number of veterans who will move their homes under MONEY VS. "THINGS" The belief is commonly held and commonly expressed that the Philippines needs more money. That there is a constant, nagging, insatiable desire for more money on the part of each and every individual old enough to know what it is (including aliens) cannot be denied. But that an increase of money in the Philippines today would help matters is a proposition that will bear examination. Let us turn our attention. to perhaps the most interesting page in the Journal, page 28 on which the banking statistics appear. It is true that the information furnished by these statistics is not sufficiently detailed for a complete understanding of the situation. Yet their study will provide a more balanced judgment in considering the needs of Philippine economy. On November 16 (the last date for which figures were available for this issue of the Journal), the eleven banks operating in this country reported dep'osits totalling P481,844,800. The comparative figure before the war (June 30, 1940) was P227,793,193, reported by 1'6 banks. In other words, in spite of the poverty of the country as a result of the destruction of its industries, the people of the Philippines have twice as much money in the bank as they had in pre-war days. The deposits as divided into three separate categories are as follows: 1940 1946 Increase Demand Deposits.. P71,481,646 P220,601,875 300% Savings & Time Deposits..... 83,049,322 128,710,470 138% Public Funds...... 63,262,225 132,532,455 200% Even the governments (national and local) have twice as much money in the bank today as they had before the war. It is interesting to note that "Public Funds" bear the same propcrtion to "Total Deposits" today as in normal times, approximately 27%. Certain comparisons on the other side of the banking ledger are also worthwhile. 1940 1946 Cash on hand..... P48,073,464 P158,016,542 Loans, Discounts & Overdrafts.. 215,876,129 194,150,102 While total deposits have increased two-fold, cash on hand today is three times as large as in normal times. And at the same time, banking business activity (as indicated by "Loans, etc.") is approximately 10% lower than in normal times. (Continued on page 16) 10 TIhn American Chamber of Commerce Journal December, 1946

Page  11 \^Seasofl 'S INCORPORATED 1911 DERHAM BLDG. PHONE 2-63-54 4 PORT AREA MANILA, PHILIPPINES LICENSED CUSTOMS BROKERS FOREIGN FREIGHT FORWARDERS HEAVY TRUCKING STORAGE 7 f - The American Chamber of Commerce Journal December, 1946 11

Page  12 KNOW THE LAW! Continuing Our Brief Summaries of Laws Passed by the First Congress of the Republic of the Philippines and Signed by the President, Which Particularly Concern Business Men. Free Land Distribution Republic Act No. 63 is designed to encourage land settlement. Any citizen of the Philippines over 18 years of age who does not own more than 24 hectares of land, and who has never received any free public land in the past, may apply for a farm area not exceeding 24 hectares for cultivation purposes. After fulfilling certain requirements of residence and cultivation, he may secure free title to the land. Philippine G.I. Bill of Rights Republic Act No. 65 provides benefits for veterans and their beneficiaries. The veterans' benefits include employment preference, educational benefits, land settlement benefits, cash benefits, loan benefits and medical benefits. House Rents Republic Act No. 66 limits rentals to 20% of the assessment value of the building and lot, and gives the lessee certain protection against eviction. The law applies to buildings destined for dwelling purposes. Free Postage Republic Act No. 69 provides "for the transmission free of charge within the Philippines of mail matter of senators and of memibers of the House of Representatives of the Philippines. Medical Service Republic Act No. 70 makes it unlawful for any vessel in the coastal trade, with i capacity of 50 passengers and making voyages lasting more than 12 hours without touching port, to sail unless it has in its complement a physician. Price Tags Republic Act No. 71 requires price tags or labels to be affixed on all articles of commerce offered for sale at retail, and makes it illegal for the articles to be sold at a different price. Certain exemptions are provided for at the discretion of the Director of Commerce and the Secretary of Agriculture and Commerce. Parity Republic Act No. 73 provides for the general election of March 11, 1947 at which the constitutional amendment granting "parity" rights to Americans will be voted on. Americans Republic Act No. 76 repeals all laws or provisions of laws granting rights to Americans which are not enjoyed by other foreign nationals, "unless they affect rights already vested under provisions of the Constitution or unless extended by agreement with the United States of America." Currency Exchange Rates Republic Act No. 77 authorizes the President to establish the rates at which foreign currencies are to be converted into Philippine currency for purposes of collecting import duties. Assessment Revision Republic Act No. 78 establishes the "assessment advance fund" to finance a general revision of real property assessments. The fund amounts to P5,000,000. Loans may be made for the stated purpose to provincial and chartered city governments and will be repayable in 20 years. Mining Industry Republic Act No. 81 provides for the condoning of taxes on mining claims and concessions for the years 1941 to 1947 inclusive, and of royalties and taxes on minerals which were lost by reason of the war. Also. holders of mining claims, who were prevented by the war from filing their lease application, are given two years after the date of approval of this act to file them. Also the enforcement of conditions to be complied with in connection with mining claims and concessions is waived for the period from 1941 to 1947 inclusive. Income Tax Republic Act No. 82 revises the income tax rates-upward. A detailed description of the new rates was given in our November issue. Inheritance Tax Republic Act No. 83 revises the tax rates on inheritances-upward. A description of the new rates was given in our November issue. Firearms Republic Act No. 84 establishes the annual fees to be paid by dealers in firearms or ammunition, and the license fees to be paid by owners. Rehabilitation Republic Act No. 85 creates the Rehabilitation Finance Corporation to "provide credit facilities for the rehabilitation and development of agriculture, commerce and indus try," etc. All powers of the Financial Rehabilitation Board are transferred to the board of governors of the Rehabilitation Finance Corporation. The corporation is capitalized at P300,000,000, all to be subscribed iby the government. Its powers are to grant loans for a variety of purposes to individuals, corporations, local governments, government corporations, cooperative associations, etc. Treasury Certificate Fund Republic Act No. 86 authorizes the President to withdraw from the treasury certificate fund all sums in excess of legal reserve requirements, not to exceed P100,000,000, and invest such sums in the Rehabilitation Finance Corporation. Surplus Property Republic Act No. 87 appropriates the net proceeds from the sale of surplus property acquired from the United States for investment in the Rehabilitation Finance Corporation. Public Works Appropriation Republic Act No. 88 appropriates a total of P57,000,000 for public works, to be expended as authorized by the President. The largest single item is for irrigation systems-P18,000,000. The next largest is river control and drainage projects-P9,000,000. For highways and bridges, the amount of P5,000,000 is provided; for airfields, P3,500,000. Public health projects (hospitals, water systems, etc.) are given a total of P8,000,000. Miscellaneous projects also get P8,000,000. Appropriations Act of 1947 Republic Act No. 80 appropriates a total of P248,695,783 to run. the government from July 1, 1946 to June 30, 1947. The amount provided for each department, in round numnbers, follows: Foreign Affairs-P3,000,000; In terior-P1,000,000; Finance —25,. 500,000 (mostly for distribution to provincial and municipal govern ments); Justice-P7,500,000; Agriculture and Commerce-P9,00,0,000; Public Works and Communications -P7,000,000; Instruction-P54,000,000; Labor —P1,000,000; National Defense —78,000,000; Health and Public Welfare-P9,000,000. Subscribe to the AMERICAN CHAMBER OF COMMERCE __ -JOURNAL i Ai 12 The American Chamber of Commerce Journol December, 1946

Page  13 "s anto Tomas" A Review of the Book Published by FREDERIC H. STEVENS "Time cools, time clarifies," says Thomas Mann in one of his monumental studies of people under stress. Almost two years have now passed since the liberation of the Sto. Tomas internees,-years so filled with dramatic change and (for most) pleasant and interesting incidents that the normal cooling and clarification processes of time have been considerably speeded up. Gone, and almost forgotten, are the rancors, the grudges, the personal animosities engendered by the too close confinement of too many individualistic people, for too long a time. Forgotten are the pet grievances, the unreasoning prejudices that often embittered the individual internee and increased the emotional agony of his confinement. Memory with admirable skill, selects what is agreeable for retention and discards what is disagreeable, even disguising what was disagreeable at the time with a more pleasant coloring. In keeping with the more mellow spirit which time has brought to most internees, Fred Stevens' book on Sto. Tomas tells the story of internment with dispassionate objectiveness. Since most of the book was undoubtedly written in camp under camp conditions, this is indeed a tribute to the emotional stability and intellectual clarity of the authors (for this is a book with many authors). Not that the book is lacking in emotional appeal, far from it. But its emotional appeal is inherent in the subject matter, it is not aroused by or dependent on emotional writing. A characteristic that gives the book permanent value as a record of the years spent in internment, which may be referred to time and again as an authoritative source book. Certainly for the ex-internee, this is a "must" book. As time passes, he will have increasing need for the information it contains. More and more will he rely on its pages to refresh his memory for a name, for a date, for the exact nature of this or that incident. This he will be able to do with considerable con fidence since the book is full of detail. After two brief chapters on the events that immediately preceded internment and on the history of the University of Santo Tomas, there comes an excellent narrative account of the camp as a whole, with particular emphasis on Camp Organization. At the end of the book comes a 100 plag chronology which is based largely ton the official minutes of the camp, following by lists of births and deaths and then the official census lists of Santo Tomas, Baguio and Los Banios camps as of December 25, 1944. (Unfortunately a typographical error makes the date "1945"). The central part of the book is taken up with individual articles on various phases of camp life and administration - "The Red Cross at Santo Tomas," "The Medical Department," "Food," "The Little Theater Under the Stars." "Shanties," "Rumours," "Interesting Personalities," etc. Interlarded with more formal matter are (Continued on page 22) I ft MENZI &CO WI GENERA S MME RC H Ah #! IM I IMPORT S,.. ' on r " W-. W-v We[ W",. INC.., UL q T S -j EXPORT.1 0 0 INSURANCE 4th Floor, Wilson Bldg. MANILA CEBU ILOILO DAVAO 1t -.- -W. The American Chamber of Commerce Journal December, 1946 13

Page  14 Postwar Philippine Plant Industry Possibilities Pili and Cashew Nuts By MARIANO E. GUTIERREZ Agronomist (From Plant Industry Digest, Aug. Sept., 1946) The Philippines could very well produce two outstanding nuts for world trade. At present, however, the total production of both is not even, sufficient to supply the local demand. In flavor and uses, the pili and cashew nuts can rival the best commercial nuts of the world. They are greatly wanted by other countries, especially the United States. For this reason, they are placed in the United States' dutyfree list. The Pili.-In 1936, there were 257,370 pili trees covering a total area of 2,059 hectares. The Pacific War may have reduced this number. Our production then amounted to 5,129,770 kilos of nuts valued at P298,830. The average importation of the United States during the fiveyear period of 1932-1936 was only 11,767 kilos of nuts valued at P3,029. While production appears large, the truth is that the pili nut is of very restricted distribution for consumption in the Philippines. It is welcomed and in demand everywhere whether in raw or candied form. The export is infinitesimally small. Both local and foreign denand justify the appeal for more planting of pili trees, many times more than what we actually have at present. The Filipino diet will be markedly improved if the pili nut is made one of its components prepared in any form. For the kernel contains more than 12% protein, about 5% starch, besides some vegetable oil. The protein content of this nut is important in that it will reinforce our unbalanced diet with vegetable protein. The pili tree grows in a semiwild state in the Bicol Peninsula and most of the pili nuts of commerce come from that region. It also grows in Tayabas and Samar. While the pili luxuriates and bears abundantly in a fertile, well drained soil in regions with equitable distribution of rainfall, it was found to grow and bear fruit even in regions with distinct dry and wet season, like Lamao Experiment Station, Lamao, Bataan. The pili is a profitable tree to grow. Prewar cost of production was P0.03 per kilo of nuts, and it was exported at P0.21 per kilo. With an estimated production of 2,491 ki los of nuts per hectare, a net profit of P448.38 per hectare can be realized when exported abroad. The pili tree is not as exacting in cultural requirements as the orange, the mango, or the chico, as it grows in a semi-wild state. The seeds without cracking the shells should be germinated in a sandy soil. The nuts are laid flat and barely covered with earth. When the seedlings are 40 to 50 cm. high, they can be transplanted, preferably at the beginning of the rainy season. For ease in transplanting, the young seedlings with two pairs of leaves may be transplanted in bamboo tubes and cared for as nursery should Ibe 12 to 15 meters apart each way, requiring 45 to 70 trees per hectare. The tree comes into bearing at the age of 6 to 10 years. The trees can be used as shade for shadeloving plants. More pili trees should be grown in Mindanao, some parts of the Visayas and in Luzon, where both the climate and the soil are favorable. Planting profitable fruit or nut trees is building permanently for the future. The Cashew.-In spite of the ccimpar(,tively short period for cashew trees to come into full bearing, the non-fastidious requirements as to soil fertility, the multiple uses of different parts of the tree, and the great foreign demand for the nuts, only very few trees are grown, mostly in backyards, in the Philippines. Large cashew plantations similar to those of coconut, abaca or rubber, have yet to be organized by enterprising planters, who can be convinced of its great possibilities. Wealth and future security await such men interested in such an unusual opportunity. Heretofore, Filipinos have grown the cashew for the flesh and relegated the valuable kidney-shaped nuts as toys for the children. As the flesh is astringent, it has not acquired the popularity of the mango or the chico. Hence, the cashew has never been a popular native fruit. After painstaking researches, the fruit juice from the flesh of the cashew has been made into the best fruit wine of the Philippines. While this is now an accepted fact, private capital is deterred from going into wine manufacture as Internal Re venue regulations classify the cashew wine among liquors and exact the corresponding' high license fee. It is not considered in the same category as the home brews of tuba and basi. Valuable as the flesh is for wine manufacture, with its high license handicap, our suggestion for more extensive cashew plantings centers more on the nuts than on the flesh, which will make it only a by-product while Internal Revenue regulations are not eased in the case of cashew wine in the interest of Philippine economy. The neglected cashew tree is more versatile as to uses than the pili tree and yet we have more pili trees than cashew trees. We may thus classify the growing of cashew for the multiple purposes to be enumerated presently,as "Philippine Neglected Opportunities." The gum obtained from the bark is obnoxious to insects. The juice from bark incisions yields a substance valuable for making indelible ink. The young shoots can be used as vegetable condiment for certain dishes. The flesh of the fruit can be eaten as dessert. The juice thereof is a valuable antihelminthic. The best use of the juice as stated above is for the manufacture of the best table wine. Wine connoisseurs consider it the best of Philippine fruit wines, including the duhat, the pineapple, the banana, the guava, the lipoti, etc. The color of the wine is light yellow similar to the famous "Mianzanilla," the best grape wine. The kernel of the nut is eaten when roasted or is used in mlaking candies and delicious cakes. In the Philippines, the roasted kernels are often ground with roasted cacao beans, and the chocolate resulting therefrom is truly ambrosial in quality and taste. The kernels produce a fine oil which may be used for condiment purposes, or as salad oil. The shell yields two valuable products. The shell oil can be made into a potent insecticide, which can kill or repel any kind of ant known to be difficult of eradication. Also, this oil is an excellent wood and book preservative. The shell pulp can be manufactured into impermeable cellophane-like (Continued on page 22) 14 The American Chamber of Commerce Journal December, 1946

Page  15 Manila Stock Exchange Report (November 1 to 30, 1946) Maintaining the increased tempo of activities noted in our last issue, the Manila Stock Exchange during the month of November marked up transactions amounting to P1,378,000 on a turn-over of 23,000,000 shares. The totals reported for last period (which was a six-week period) were P1,959,000 and 14,746,000 shares. When worked out for purposes of comparison on an. average weekly basis, the results are P347,268 (5,750,000 shares) for November and P326,500 (2,457,000 shares) for the preceding six weeks (Sept. 16 to Oct. 31). The distribution for November was as follows: Mining Stocks...... P994,000 Commercials & Industrials.............. 316,000 Sugars.............. 58,500 Banks............... 5,350 Insurance......... 3,150 One noteworthy feature of this period was the emergence of a "Commercial & Industrial" (San Miguel Brewery) as the leading issue in terms of value of transactions. MINING STOCKS As in the previous period, nineteen mining stocks (11 listed and 8 unlisted) participated in transactions. The month's business was fairly well dominated however by two stocks, Lepanto Consolidated and Consolidated Mines, which together accounted for 44% (in terms of sales value) of the mining stocks total of P994,000. In the previous period these two ranked Nos. 6 and 7, respectively, and in the period before that, they did not appear among the leaders. Lepanto Consolidated was the outstanding issue of the period among mining stocks, not only leading in sales value but also experiencing a spectacular increase in value per sh'are. Continuing an upward movement which commenced in the latter part of September, the value of this stock increased from.165 to.275 during November. Altogether 1,032,000 shares changed hands at a total valuation of P236,525. Transactions took place on 19 days during the month and the issue closed strong with.275 the bid price, and sellers asking.28. With a turn-over of 18,000,000 shares, Consolidated Mines came second in terms of sales vajue, accounting for P203,000. With only an loccasional set-back, the per share value increased during the period from.0095 (the lowest of the month) to.013. Transactions took place on 21 days. Since this is an unlisted stock, bid and asked quotations are not available. Again the leader among gold issues, Atok Gold accounted for sales amounting to P128,000. 146,000 shares changed hands on 18 trading days. In per share value, this issue more than recovered the ground lost A. C. HALL AND CO. DAILY AVERAGES Average Volume Nov. 1 27.70 18,000 " 2 27.45 16,000," 4 27.50 11,000 5 28.35 74,000 " 6 29.25 35,000 " 7 29.30 29,000 '" 8 29.33 49,000 " 9 22.48 105,000 " 11 29.83 51,000 " 12 30.35 60,000 " 13 29.90 79,000 " 14 29.90 14,000 " 15 29.65 58,000 " 16 29.55 65,000 " 18 29.55 12,000 19 29.30 29,000 " 20 29.25 24,000 " 21 29.20 33,000 " 22 29.10 15,000 " 23 29.23 42,000 " 25 29.03 64,000 " 26 28.98 41,000 " 27 28.98 43,000 " 28 28.75 34,000 " 29 28.85 21,000 during the last few days of October, when it receded from.85 to.82. On November 6, sales were made at.87 and.88. On November 12 and 13, sales were made at.92. But during the last half of the month, business was steady at.88, at which price Continued on page 17) t UNION PLUMBING COMPANY -- PLUMBING CONTRACTORS Installations-Repairs-Supplies i Office: 1883-B Azcarraga (Near Old Bilibid Gate) 0 "Our staff of Experienced Plumbers are at your disposal to give you the best ~I Plumbing Service" r i~ 5...................................................^^^^^^^^ ~ IC_ t_,t_ t_ t (\;-c-;~c;;- —;-c- —c `r I'C `~ `~~e - Si --- i~e 'L -e 'e ~e 'C rL ~L \~L~LL i-C IC -L ~ . 'L -i ---- - - --- - - - - -— 0 0 1 A p -t RI INiHELDER INCO R PORATE D Dealers in: PHARMACEUTICAL SUPPLIES INSTRUMENTS GROCERIES —TEXTILES i 5th FLOOR \ im [4N ~~~~~~~~~~~~~~~~~IA I I-,- 0 0 el 0 1 - - TRADE & COMMERCE BUILDING - - - MI '1, _t it a-s- t_- _ _ -— 3 --- ----7-77--- ~TI J- ~r J- J-TCI3-_J-_T-_7-_J —-T- At He He At _. The American Chamber of Commerce Journal December, 1946 15

Page  16 The Present Need... (Continued from page 9) There is a considerable amount of lip service with reference to the vocational needs of the country but in actual practice from the highest authorities to the lowest-government and scholastic, it is all mere lip service. A province will apply for the establishment of a trade or an agricultural or a normal school and after they have it their main effort is to place the burden of the support of these schools on the national government. It is easily understood how difficult it is to overcome the momentum of years of tradition, and of tendencies but the time must inevitably come when not only the people but also their leaders, educational or otherwise, will have to Ibecome realists and will face situations as they really exist and not as they would like to have them. There is at present no way whereby a progressive country can. isolate itself and have its own mode of living uninfluenced by the great outside world. The airplane and radio have narrowed the distances to such a point that all of our neighbors, with little or no effort, can look over our fences and see what is going on here and we can just as easily look out and see what they are doing in their part of the world. It may be pcssible for a country to isolate itself for a short period of time but sooner or later the walls of isolation will inexorably crash down and it will find that it is 'after all only an integral part of the surrounding world. This does not mean that people are becoming less nationalistic. If anything, they are more nationalistic than they were ever before, but they find that in order to preserve this precious nationalism they must attune themselves to the realities of a competitive, ever present and sometimes not too sympathetic world. Not only the weaker but even the most powerful have to take into account the influence, the opinions and the potentialities of their near-by as well as their far-away neighbors, those that make up world geography; the countries which determine world. relationships and world economics. In considering postwar development in the Philippines, we cannot soothe ourselves by saying that things will soon reach the stage of normalcy, if by normalcy we mean things as they were in pre-war days. That is an impossibility. Those pre-war conditions obtained as a result of the definite external forces which created them. These external and internal forces have either been modified, destroyed or supplanted by other entirely different developments which will determine the making of a Philippines radically different from the Philippines of yesterday and of today. When we read of post-war plans for the people of the allied countries, we may take a pessimistic attitude with reference to plans for the Philippines. We may say, "That is all right for a rich country like America or Britain or France but we cannot do these things here." Some of us, on the other hand, may take an opposite and optimistic viewpoint and picture exaggerated dreams of better things to come. Both views are wrong, and, in a way, harmful. One shows a pitiful lack of confidence in the potentialities of a country of over 17 million virile people in a land that is remarkably rich in natural resources. The other shows a pathetic ignorance of the hard realities that face every country in this warwrecked world. We cannot use the present inflationary perileod as an index of what can, be done in the future. Abnormalities are poor props upon which we may base any worthwhile predictions. Goods today may be sold both with or without excellent salesmanship; stores can be operated profitably with or without efficient services; poor quality of goods can be disposed of as quickly and with as much profit as goods of better quality; jobs can rbe obtained with or without much qualifications and with little effort. Furthermore, graduating from schools or colleges may be accomplished these days with ease, and in a limited time. We cannot solve problems by ignoring the outer world. We cannot say that we shall make here our own standards and ignore those existing in other parts of the civilized world. However, as different as future conditions may be with reference to pre-war situations or standards, schools will be influenced sooner or later by outside conditions and by standards that obtain abroad. It will be as impossible as it would be unwise for the Plilippines to hermetically seal itself against prevailing external trends. As the devastated countries of the world will have to emphasize the creative trends in educat: on in order to rebuild their destroyed economy so will the Re public of the Philippines find itself obliged to ignore traditions and cut a new path based upon present realities. Unlike general education, a highly specialized vocational education program in not self perpetuating. It has a certain definite job to accomplish and a certain definite goal to attain and when that object is accomplished its mission is finished. If there are 400 welders to be trained, the school trains these welders and then turns its attention and its plant to other purposes. If or when, there are enough craftsmen and enough workers to supply what the country demands, those in charge of these schools would have no objection whatsoever to the utilization of these school plants as hospitals or for other useful purposes. The closing of these schools after they have accomplished their objectives would not be an indication that they have Ib!een failures but that their work has been eminently successful. Can any one say truthfully that the Philippine Republic already has all of the skilled workers needed to carry on the work of rehabilitation, reconstruction, and industrialization? With reference to vocational education an attempt is being made to make the work in these schools more functional, more creative and absolutely separated from college preparatory concepts. Instead of attemipting two jobs-the training for college preparation and training for specific jobs in four years-the courses are now being arranged to limit the enrolment in these schools to those who have the physical and social development needed in. order to profit by the course in the shortest possible time and to. limit the courses to two years of purely technical education. This plan is revolutionary here but it obtains in all real trade schools abroad. Editorial (Continued from page 10) A complete comparative analysis is im, possible because of the large "Other Resources" and "Other Liabilities" items in the current statement - P156,000,000 and P187,000,000 respectively. But it is worthwhile to point out the tremendous cedit balance wih banks outside the Philippines enjoyed by local banks-P145,000,000 net, an increase of approximately P30,000,000 since the middle of October, and P46,000,000 since the middle of September. Without fuller information of the nature of the transactions leading to this increase, deductions are apt to be misleading. But it may well be noted that this particular feature is a postwar development, no comparable item appearing in the pre-war statement. With this brief description of the present financial picture in the Philippines, we can return to the question raised at the beginning-whether the Philippines needs more money. And the answer would appear to be definitely "No." The last thing needed right now is money. What is needed (and we repeat past editorials) and needed urgently is "things," consumer goods of course in larger quantities and especially producer goods - industrial plants and equipment. Until the money owned in the Philippines today is exchanged for those things, it is futile to expect a return to normal good times and normal standards of living. The American Chamber of Commerce Journal December, 194, 16

Page  17 Manila Stock... (Continued from page 15) sales were accomplished on the last trading day of the month. San Mauricio was also very active during the month, accounting for P95,000 worth of business. It was trading in on 18 days of the month, but at a steadily declining price. Sales were made at.36 on November 1, but by the 16th the issue was changing hands at.31. This price was maintained till the end of the period (except for a small sale of 1,000 at.30 on November 29). Mindanao Mother Lode again ranked third among gold issues, accounting for transactions totalling P83,000 on 15 days during the period. Activity was largely concentrated in the first half of the month. After commencing at.54, business was done at.59 and.60 on November 11, 12 and 13. But interest suddenly waned and during the last 15 days of the month, sales were made only on 5 days and at a declining price. Final sales (on November 27) were at.53. At the end of the month, the bid price was.52 and the asking price was.55. MINE STOCK SALES Surigao Consolidated, accounting for P47,000 worth of business, ranked as a poor fourth among gold issues. Trading in this issue was confined to 10 days of the month and was characterized by a steady decline in price. By November 25, it was changing hands at.30. Fairly large sales were made at this price on the next two dys. In the final sales for the month (on November 28) 10,000 shares were traded at the same price. At the end of the month,.29 was the bid price and.30 the asking price. COMMERCIALS & INDUSTRIALS Trading in this classification was dominated by San Miguel Brewery which accounted for 75% of the value of transactions. From a price of P300 (on. October 31), this issue advanced to P322 on November 5, P325 on November 6 and finally to P332 on November 19. A total of 310 shares changed hanids at this peak price within the next week. Final sales on November 29 (275 shares) were mate at P330. I I I I I I I I I I I I I I I Listed Issues Antamok Atok Gold Baguio Gold Batong Buhay Big Wedge I X L Lepanto Consolidated Marsbate Consolidated Mindanao Mother Lode San Mauricio Surigao Consolidated Unlisted Issues Acoje Balatoc Coco Grove Consolidated Mines Itogon Paracale Gumaus Suyoc Consolidated United Paracale No. Sold 400,000 146,000 60,000 1,600,000 43,000 40,000 1,032,000 135,000 146,500 287,000 151,000 1st Sale.05.82.08.0074.84.12.165.075.54.36.34.18 3.50.04.0095.11.11.06.115 Last Sale.05.88.085.006.89.125.275.075.53.31.30.19 3.20.036.013.10.11.05.12 Closing Bid.0575.86.085.87.12.275.07.52.31.29 0r 'I f NEW FORD TRUCKS 0 1 A U! A it 189,000 2,440 173,000 18,054,000 237,000 5,000 52,000 272,000 The New Ford Trucks offer you 32 new, vitally important engineering advancements... that add up to more work for still lower cost. See these fine new trucks. You'll like them... and you'll like the extra profits they can help you make. MANILA TRADING and SUPPLY CO. Port Area * Manila BSS^ t li --, " -- ,- " -" - i 1. I 0 0 ml 0.1 f.1 ol 0 W ISE INVESTORS OF CLEAR FARSIGHT know well-nigh that with such advantages as-high land (about 200 ft. above sea level), picturesque avenues, wide asphalted streets, plenty of shade trees, free nerve-healing breezes.. modern city conveniences, transportation facilities, etc., P4.50 a! sq. m. is certainly LOW. Many of them invested and live in our ~! ~ subdivisions: I I UNIVERSITY, ESPASA, QUEZON CITY, CAMP MURPHY.... and NEW MANILA A' 0 A I A I I I i I 0 1 1 i I p I I I I ONL dY P4.50 per sq. m. and up We sell beautiful homesites from 30'0 to 5,000 sq. m. payable 20% down & the balance in 60 monthly installments. MAGDALENA ESTATE, Inc. 211 Consolidated Investments Bldg. Plaza Goiti, Manila -M ~l;' — —I -- -`C- - - -- —-c i ) \ C \ L ~i - C;PI7i -7i YTI-i 7- LCCCrC-rCC,I~e;CEI The American Chamber of Commerce Journal December, 1946 17

Page  18 Payment of Claims... (Continued from page 8) one or more of the war perils enumerated in the Philippine Rehabilitation Act; or. (b) The cost of repairing or rebuilding such lost or damaged property, or its replacement by other property of like or similar kind. In determining "the actual cash value" of real property damaged or destroyed, the Commission has stated that it will give consideration to (a) the reproduction cost of such property in 1940, with appropriate allowance for its actual condition at that time, (b) the assessed value of the property, (c) the insured value of the property, and (d) such other factors as may warrant special consideration in each case. In carrying out these provisions of the Act and the Commission's regulations promulgated thereunder, it is obvious that there will be a few cases indeed where the actual cost value at time of loss would not be far below the present replacement cost. Therefore, When adjudicating claims, the Commission will necessarily make its appraisal on the basis of the value at the time of loss. With regard to possible payment in kind, it is extremely doubtful that the Commission will be able to make such payments except in rare instances. First, in the vast majority of cases, the cost of the destroyed property now would be in excess of its actual cash value at the time of loss. Secondly, if the Commission attempted to make payments in kind, it would have to establish itself as a huge purchasing, warehousing, and distribution agency. But with our limited facilities and funds, such activities are impossible. The Act also provides that in making payments on claims, the Commission may make initial payments in amounts even below P1,000. We are giving serious consideration to spreading payments over a period of time so that we, to the best of our ability, can help to prevent inflation. While on the subject of payments up to P1,000 I wish to point out that the Commission has been advised that there is a widespread belief that any and all claimants can ask for and receive up to this amount almost as soon as the Commission opens its doors for business. This belief is completely erroneous. Each claim and each claimant must 'be investigated carefully to give the Commission full assurance that they meet the requirement of the law before any payment can be made to that claimant on his individual claim. Thousands upon thousands of claims probably will be approved for far less than P1,000 because the actual cash value of the property damaged or destroyed, was below this amount at the time of loss. Any thought that the Ccmmission intends to pay or has any right to pay P1,000 across the board to all claimants must be discarded. It is incorrect and without any foundation in fact. Although some potential claimants who apparently suffered large losses say that they have decided not to submit claims there are lothers wlho are not so reticent. Day after day the Commission receives letters from individuals and from businessmen and lawyers giving an estimate of their losses and stating that they are filing claims in this manner. No such document will ibe considered by the Commission as being a claim. The Commission is not now receiving claims and has not received any properly submitted claims at this time. Private claims must be submitted on Philippine War Damage Claim Form Number 100 and, if watercraft or automobiles are involved, a supplemental form, Claim Form Number 100-A must be used. It is essential that all claims be submitted on the same form because the Commission must have certain information from all claimants with regard to their claims. The Forms and any additional information which,the claimant appends to the forms must Ibe acknowledged before a person duly authorized to accept acknowledgments. In expectation of the submission of about one million claims, the Commission approved and had printed in the United States some five million Claim Forms. When they arrive in Manila and are generally distributed throughout the Philippines, the Commission will announce a date after which it will be prepared to receive claims. This announcement will be carried to the public by every possible means. Until the date is fixed and the announcement made, the Commission cannot and will not accept any claims. When the Claim Forms arrive from the United States we wrill make every effort and use all facilities at our command to assure their equitable and free distribution throughout the Republic. This task alone is a colossal one. We are planning to organize ten branch offices of the Commission in certain cities that we believe will be generally accessible to the people in surrounding areas. Nevertheless we know that transportation of the Forms to remote barrios in some of the provinces presents an extremely difficult problem. Tihis we will try to meet by utilizing all possible forms of transport. Moreover, the Philippine Government has promised us its full cooperation in this, as well as,other matters. We intend to use all available resources to make certain that every prospective claimant has an opportunity to get the necessary Forms, we do not intend that they shall be victimized or be made to pay a price for the Claim Form itself. The Forms are free to all claimants alike and' any attempt to make a charge for them cannot be tolerated. The Philippine Government has assured us of its full support in preventing claimants from being duped by the unscrupulous and the dishonest. We have been advised that in some areas shyster are scheming to take advantage of their neighbors in the preparation of their claims. We are glad to tell you that these reports (Continued on next page) Commonwealth of the Philippines Department of Public Works and Communications BUREAU OF POSTS Manila SWORN STATEMENT (Required by Act No. 2580) The undersigned, Robert S. Hendry. editor of American Chamber of Commerce Journal, published monthly in English at the American Chamber of Commerce, after having been duly sworn in acco-dance with law, hereby submits the following statement of ownership, management, circulation, etc., which is required by Act No. 2580, as amended by Commonwealth Act No. 201: Name Editor-Robert S. Hendr.l Business ManagerOwner-American Chamber of Commerce Publisher - American Chamber of Commerce Printer-Carmelo & Bauermann Post-Office Address Trade & Commerce Bldg. Trade & Commerce Bldg. Trade & Commerce Bldg. 2057 Azcarraga If publication is owned by a corporation, stockholders, owning one per cent or more of th total amount of stocks: NO Bondholders, mortgages, or other security holders owning one per cent or more of total amount of security: NONE In case of publication other than daily, total number of copies pi inted and circulated of the last issue, dated August, 1946. 1. Sent to paid subscribers......... 267 2. Sent to others than paid subscribers 1,700 Total....................... 1,967 (Sgd.) ROBERT S. HENDRY Editor Subscribed and sworn to before me this 30th day of Sept., 1946. at Manila, the affiant exhibiting his Residence Certificate Nb. A-334611, issued at San Juan, Rizal, on Feb. 7, 1946. (Sgd.) HILARION O. EGUIA Notary Public Until Dec. 31, 1946 Doc. 325 Page 67 Book No. IV, Series of 1946 18 The American Chamber of Commerce Journal December, 1946

Page  19 have not been alarmingly numerous. Nevertheless the Act and supporting statutes of the Philippines provide that no person. may pay or offer to pay more than five percent of the amount allowed by the Commission on a claim for services rendered in connection with this claim. It provides that no one may receive more than this fee for service rendered in connection with a claim. If fixes the maximum penalty for violation of these provisions at a P10,000 fine and imprisonment for twelve months. Furthermore, if these provisions are violated and claimant loses all rights to any claim and if any compensation has been paid him the Commission will take such action as is necessary to recover the payments. Twice in the course of these remarks I have mentioned inflation. I do not have to tell you that, should the Commission pour hundreds of millions of pesos into the Philippine economy in its present state, prices would soar and the purchasing power of the peso would decline. The payments, which were intended to strengthen the economy of a wartorn country, would strike instead at its very foundations, weakening the entire structure. There is only one answer to this problem-more and more production, more and more work and improved transportation facilities to distribute the products of the Philippines, its sugar, copra, and abaca. These things the Philippines need to export in increasing volume to pay for imports required in huge quantities to rebuild the nation. But we must not think of industry and trade solely in terms of the past. This is a new era, an era of great opportunity. Many products imported can be manufactured here efficiently and with benefit to all. We in the United States do not fear industrialization in other lands, if it is efficiently and effectively conceived. In fact, we welcome it, because we know that sound industrialization means increased purchasing power, and increased purchasing power means increased commerce. We seek for you and for ourselves the benefits to be derived from an expanding and mutually advantageous trade. I say to you that the basic economy iof the Philippines is sound. The fertile land is still here, and in abundance. The timber and the minerals have not been destroyed. The markets of the world are crying for your products. This land is rich in resources and opportunity. Why wait longer! What is needed now is initiative and work. For labor, when coupled with intelligence and natural resources, is the basic source of wealth. It can be produced in no other way. And it,must be produced here in increasing quantities, if inflation is to be avoided. Generous as the Congress of the United States has been, the resources of our Commission will not be enough to accomplish the great job before you. Our funds are limited and payments can only be made over a period of years because of the time required for the adjudication of claims. Eight hundred million pesos will help, and help substantially, in the rehabilitation of the Philippines, but the accomplishment of this major task rests primarily with the people of the Philippines, and especially with the businessmen of theb Philippines. -V ''" ' — f-~- - - 1 1 -- - - - I I p 1/'d-'f ~II ------- -1 TRU-ORANGE.I I I SO GOODAND GOOD FOR YOU Q0.1! I I..: -Bottlcdit the ' ROYAL SOFT DRINKS PLANT -o^vrwiS O~tpcdd by SAN MNJ(;TEL BREWERY r II YOUR GUARANTY OF UINEXCELLED QUALI' TY I M - -- - - M -- - - rr ~ c ~e ~e i-LF —-- --- —-C — --- --- —=- L~C~PCL —C1;~LtC=-~pr=-E~GL5-5: Th American Chamber of Commerce Journal December, 1946 19

Page  20 No other whisky that we know of mixes so PERFECTLY with soda to produce a DELIGHTFUL drink. That is because LORD CALVERT CAN A D I A N Whisky is truly a fine product... perfectly blended l i g h t bodied... A_ ssmooth and mellow. REHABILITATION The first allocation of funds for the American government's rehabilitation program in the Philippines was announced by the state dep'artment on December 14. Under the Tydings act, the program calls for a total expenditure for the rehabilitation of public works, buildings, services and projects of P240,000,000. This first allocation iof funds distributed approximately P74,000,000 among eight federal agencies that will be charged with the responsibility of the program. The fund was allocated as follows: Public roads, bridges, streets, etc......... P20,000,000 Ports and harbors.... 18,000,000 Public health services.. 5,670,000 Inter-island ships..... 80,000 Air transportation and navigation......... 3,900,000 Meteorological facilities 1,800,000 Coast and geodetic survey............. 350,000 Public buildings, etc... 22,400,000 Technical training for pensionados......... 1,800,000 P10,000,000 SALVAGE JOB Secretary Emilio Abello recently announced that the job of salvaging the silver coins dumped into Manila B'ay during the war would commence next month. The American Marine Salvage and Construction Co. of Seattle, one of 13 bidders for the job, has been awarded the contract. This company agreed to complete the job in two months. Compensation will be 10% lof the face value of the total recovery. The coins were dumped into the bay shortly before the fall of Corregidor in May, 1942. The original amount was approximately P15,000,000, but the U. S. Navy has already salvaged some P5,000,000 for the Philippine government. The operations started by the navy were discontinued because of lack of trained personnel resulting from the demobilization, program. When salvaged, the coins will have to be re-minted before going into circulation again. The plan however is to keep them in government vaults, as reserve. Sole Importers FEPTCO (FAR EAST AND PACIFIC TRADING CO.) A. SORIANO y CIA. General Managers 5th Floor-Banco Hipotecario Bldg., Manila-Tel. 2-79-61 BUNTAL FIBER In response to insistent demand on the part of local producers, the government lifted its restriction on the exportation of ibuntal fiber on December 15. Local producers complained that the restriction caused (Continued on next page) - M - 20 The American Cnamber of Commerce Journal December, j946

Page  21 them to suffer heavy losses, for local demand for the fiber was insufficient to utilize available stocks. With the lifting of the restriction, producers anticipate that the China and American markets will absorb their out-put. WORLD SUGAR A somewhat easier sugar situation for 1947 is expected by officials in charge of sugar programs, according to an AP dispatch from Washington on December 13. This is based on an anticipated increase icf 3,000,000 tons for 1946-47 in world production over the 1945-46 output, which amounted to 30,000,000 tons. Most of the increase will come from Europe, whose crop is now estimated at 8,000,000 tons, 40% more than last year, but still 30% under prewar averages. Java and the Philippines are still absent from the list of producers. The sugar industry of the former is being hampered iby political disturbances in addition to the damage suffered during the war. INTER-ISLAND SHIPPING A Philippine government spokesman announced on December 13 that 49 surplus vessels would be received shortly from the U. S. Foreign Liquidation Commission, as part of the surplus property to be turned over under the Tydings act. The vessels will be under the control of the Philippine Shipping Commission, which stated that preference would be given to shipping companies in operation before the war in its allocation of the ships. The vessels will be put in operating condition by the U. S. government before the transfer is made, and will then be sold by the Philippine Commission at P200,000 each, of which 25% must be paid at the time of purchase. T,he bajance is to be paid in three equal yearly instalments. NEWS AND NOTES Engineer Island shipyard facilities are being turned over to Philippine Consolidated Shipyards by the U. S. army, according to an announcement by Major General W. Moore on December 11. Philippine Consolidated Shipyards represents a joint venture between Philippine Industrial Equipment Co. and the Philippine Consolidated Steel Co. C. W. Lee is general manager. A five-man mission left for Japan on December 11 to survey industrial plants that may be acquired by the Philippines as part of the reparations program. The mission is composed of Dr. Eduardo Quisumbing, Bernardo Albrera, Cosme Ventura, and two engineers of the H. E. Beyster Corporation, industrialization advisers to President Roxas. Cathay Pacific Airways, Ltd., a British-owned air transportation firm, has instituted passenger and cargo service between Manila and Hongkong. This provides Manila for the first time with a direct air connection with London. The company's offices are at 123 Rosario. San Miguel Brewery declared a 25% cash dividend early in December. This is the first dividend to be paid since July, 1941. A 75% stock dividend will be advocated by the directors at a special meeting for shareholders to be held on February 24, 1947. This will increase the company's capital from P5,700,000 to P10,000,000. (Continued on page 22) k A dp- that tastes like, I 1 ) W. j# A i i i Codes: A B C 6 Ed. Bentley 2nd Ed. Cables: "IPEKDJIAN" IPEKDJIAN MERCHANDISING CO. IMPORTERS -- EXPORTERS O p - when you've tried IBottled in the U. S. A. Fine American Whiskey * Preferred throughout the Americas Sole Importers (FAR EAST & PACIFIC TRADING CO.) A. SORIANO y Cia. General Managers Banco Hipotecario Bldg. - Tel. 2-79-61 - Manila 312 Ayala Bldg. (Nat. City Bank Bldg.) Manila, P. I. l._ The American Chamber of Commerce Journal December, 1946 21

Page  22 Postwar Philippine... (Continued from page 14) cloth which does not produce creases when folded. (While the Philippine cashew nuts can be exported to the United States duty-free and quota-free, no nuts are exported to that country due to insufficiency of supply, even to fill the local demand. During the prewaUr period, the United States used to obtain cashew nuts from Madagascar and India. The importation ran into millions of dollars. The Philippine nut would enjoy a freetariff of 5 centavos per pound (P0.11 per kilo), which will be a free gift to future cashew planters. The growing of cashew is easy when eomnpared with the culture of the chico, the cacao or the coffee. It does best in regions with definite dry and wet seasons. It can be grown in lands less valuable than those for annual crops, such as on undulating and broken lands, hillsides, and marginal lands. It is propagated by seed. As there are many types and strains, the less astringent should be selected when growing for the flesh is the prime consideration. For nut production, the strains or types with large plump nuts should be preferred. It is preferable to pllant one or more seeds per hill, and later on to allow only one plant to grow, spacing the trees 8 m. x 10 m. or 10 m. x 10 m., thus requiring 125 to 100 trees per hectare. The trees come into bearing at the age of 3 to 4 years. It requires 180 to 200 nuts to make a kilo. The kernel constitutes 20 to 25 % of the nut. The prewar expenses of planting one hectare may be placed at about P140, depending upon the method of culture used, and a yearly maintenance of P30 per hectare. On the average, a hectare of cashew may produce 200 kilos of kernel at P0.80 per kilo or P160. Spreading for a definite number of yelars the cost of planting and maintenance, the cost of production of 200 kilos of nuts may be around P90, giving P70 as a net profit from nut alone. From the sale of other products, such as wine, shell oil, etc. the profit should be considerably increased. News and Notes (Continued from page 21) Consolidated Mining Co. stock was placed among the listed shares on the Manila Stock Exchange early in December. The company has established a transfer office in Manila. Manila Wine Merchants made a disbursement of 25 centavos a share on December 10 to stockholders of record as of November 30, its first post-war dividend. A housing compound is being prepared in Quezon City for the personnel lof the Philippine War Damage Commission. 55 or more houses will be constructed in the compound and will be leased to the PWDC by the Rehabilitation Finance Corporation. "Santo Tomas" (Continued from page 13) sketches from the pens of various camp artists (Donald Dong especially) and little rhymes and even more pretentious verse written in, camp by Mrs. Marie Jand^, and a few others. Fred Stevens' book may or may not be the first on the subject of Santo Tomas. It will surely not be the last. But as an objective presentation of facts and figures it may well be considered definitive, and as such will serve as a reference for future writters. I - -- bainblwe Pi/ti. Since 1887 our advantages of superior workmanship, facilities and experience are evident in the numerous printing jobs we have done for business leaders. -CAR-LO BAUERMANN INC. OFFSET LITHOGRAPHERS * PRINTERS 2057 AZCARRAG: * MRNILA, PHILIPPINES --- 22 The American Chamber of Commerce Journal December, 1946

Page  23 . 1 ~ cr C C C,_r_)C~tL_~t_~t,,_ltlt tclL cl,2. C_ PI I I I fi I I I I I I i I r rl, Demand TRIBUNO, America's outstanldng VERMOUTH A0 t Z '0 iA fi For Perfect Cocktails i SOLE IMPORTERS: FEPTCO FAR EAST AND PACIFIC TRADING CO.! A. SORIANO Y CIA. General Managers Banco Hipotecario Bldg., Manila A m_ _) (Yhir fma$ tea (,W 7i vp + go- 7,4 <?- / i g/gas / INTERNATIONAL TRUCKS "Proved Performance in War and Peace" -7 7, - /l //1 - %.- " 9~ 4t4 $7jeFM A A 0 AO I '/I A A IL- b.-IAR ~CU Now, powered by the war-tested and proved Harvester-built Blue Diamond engine, this thoroughly modern INTERNATIONAL embodies the best mechanical features which engineering skill and more than thirty years of heavy-duty truck-building experience can produce. Write or call on us for Particulars INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA I III The American Chamber of Commerce Journal December, 1946 23

Page  24 p 0 0 1 p I 0 4 I **,B- 101*-'*"M- V I~5 ~ /Y~a~ ir~c~"o~~-~~~ o(,je~o 04~a MARQUES 4.10.1 f 0.11 0 0 ol 0 ol f.1 I.1 0 1 0 I I i I i I i I i I I I I I I I I I I I.1 0 f f a, 1.r 0 'O' 11 1 0 0 0 } { } { { { 5 ^ New Business Comes.. (Continued from page 6) tions show that during the period from May, 1945 to November, 1946 a total of 1,094 corporations were registered, carrying a combined authorized capital of P216,608,570, of which P64,647,338.50 was subscribed and P27,925,618.89 paid up. Of this, 345 stock corporations were registered during the May-December 1945 period, their combined authorized capital amounting to P79,508,000, of which P22,806,685 was subscribed and P9,644,710.34 paid up. More new capital from domestic sources went into new business as 1946 started. In January, the total invested in the various enterprises hit the highest monthly record so far, with 108 stock corporations registered, carrying an aggregate authlorized capital of P19,868,900, with P5,484,355 subscribed and P1,948,113.94 paid up. There has not been much activity on the part of local capital in the later months to go into larger enterprises, the accelerated rate of the first half of 1946 having. slowed down during the second half. In recent months, however, there has been a slight tendency to pick up. November registrations of new corporations showed 66 stock corporations coming in, with their combined capitalization reported at P10,526,000, of which P3,395,850 was subscribed and P1,744,864.96 paid up. This compares with 51 stock corporations during October with a capitalization of P6,07(5,500, of which PI1,839,374 was subscribed and P830,972 paid up. Domestic capital has flowed into businesses wherein opportunities for profitable operations appeared to have been best. Earlier last year, there was a virtual boom in importing with most of the available funds held here going into the importing and exporting business. Until lately there has been an increasing flow of new money into this line of enterprise as well as into general business. More and more, however, new capital investments are being diverted to such other promising fields as transportation, cinema, lumber, copra, manufacturing, construction, real estate and agriculture. November corporate investments showed transportation leading, with 10 firms registered carrying a com bined capitalization of P3,944,000, of which P1,063,400 was subscribed and P652,800 aid up. Next were corporations registered to engage in general merchandising, the 10 incorporated during the month carrying an aggregate capital of P1,540,000, of which P506,800 was subscribed and P335,400 paid up. October registrations showed import and export leading with a total capitalization of P1,668,000 and transportation next with P700,000. Filipinos dominated in domestic corporate investments, 53 of the corporations registered last month being Filipino-controlled and capitalized at P6,882,000. This represented 65 per cent of the total investments during the month. The American share, representing capital of American residents in the Islands, amounted to only P1,44S,000 or 13.8 per cent of the total. The Chinese had a larger participation with P2,180,000 invested in seven Chinese-controlled corporations during November, or 20.7 per cent of the total. The initiative in rehabilitating our large industries is still left to outside capital, with local capital apparently inadequate to do the job and effect the full development of the country's resources. Observers arriving from the States report that there are millions of dollars waiting to come here but apparently timid about doing so now because of the general impression in the U. S. that conditions here are still uncertain. Big prewar business, however, has been coming back and setting up permanent quarters in Manila's port area, with office accommodations downtown being insufficient to house the new business that comes in. Today the pier area is rising faster than any other section of the country with the possible exception of Davao, according to observers. In this area are some of the largest Philippine enterprises which are not only expanding their activities here but also extending them elsewhere in the Far East, making the waterfront area virtually the nerve center of these concerns' broadening trade and industrial activities in this part of the world. Manila has yet to develop into the greatest warehouse and trading center in the Orient. But business in 1947 can at least look forward to a busy year of further expansion. The opportunities are here. The money, the tools and the technical know-how are coming. Sole Importers FEPTCO (Far East & Pacific Trading Co.) A. SORIANO Y CIA. General Managers BANCO HIPOTECARIO BLDG. TEL. 2-79-61 MANILA Subscribe to the JOURNAL k! -- --- - -- -- - iml.RaW.W; m ki 9 ~. 24 The American Chamber of Commerce Journal December, 1946

Page  25 Some Problems of. (Continued from page 7) timber licenses in order to help those who desired to engage in the lumber business. It encouraged the licensees to start their operations and urged the big concessionaires to resume business. In the meantime, handsawing was employed. Later, some lumbermen repaired their sawmills or put up new ones which they acquired from the U. S. Army. A limited number of sawmills were also imported from the United States so that at the end of October, 1946, there were in all 122 sawmills put up throughout the Philippines with a combined daily capacity of 833,250 board feet as compared with 163 sawmills with a combined daily capacity of 1,693,000 board feet in 1941. Until the present time, however, the majority icf the sawmills have not been operating at full capacity on account of insufficient spare parts, and lack of transportation facilities and laborers who, in some localities, do not want to work without rice rations or on account of disturbed peace conditions in the locality. Lumber production. by sawmills from July, 1945, to October, 1946, amounted to 60,911,356 board feet, based on incomplete reports received from forest 'officers in the field, or 17.5% of the production in 1941 which amounted to 348,836,846 board feet. This may be considered insignificant compared with the enormous amount needed for the reconstruction work of the country. The total timber cut during the period from July, 1945, to October, 1946, amounted only to 206,056,000 board feet. This is but 21.9% of the timber cut in 1941 which amounted to 941,604,449 board feet. At present, the demand for lumber is great, especially in the centers of business and population where the people find it very profitable to build houses and shops for rental purposes, not to mention the manufacture of;household and office furniture and equipment. But on account of the insufficient supply of lumber, coupled with the high cost of production and transportation to the market, lumber prices still remain very high and beyond the reach of ordinary consumers..................................................... t N.B Z,...........,.:::..:.:.:?:.: - - '..... C.-. —.. ' B... i ok- Ev^te"' ^*Nbty l^! E ^ XwSP5#-.*:::'-! I^B i c, w-o ij f1 m............ i 1@0.iiiiiiii I Sill..... Goodrich, world famous maker of rubber products, it J has many improvements. The niew design helps it( o h~~~~~:::...,,,~~' ~.- -.... r oole. he tit eratr iongl W o aRubber Co. ry 13th & ATLANTA STS., PORT AREA-MANILA, P. I. ~ Thi s ti re i s designred for heavy duty truck operations, for both city and highway use. Made by B. F. Rubber Co. lk~~~~~~~~~~~~~~~~~~ks I - -— ~# F ~~~~~~~~uuu~~~~~~~~~~~r~~~~~uu~~~~~~~~i l~ The American Chamber of Commerce Journal December, 1946 25

Page  26 A Saga of... (Continued from page 5) By pure coincidence the negotiations were closed on June 29th, which was the Peter and Paul Saints Day. The site was located in Candelaria, Quezon and the Candelaria people considered this a good omen. Plans were drawn up and timed to coincide with the arrival of the machinery. Ground was broken August 9th and in 59 days the factory buildings were erected and one of the three driers was in operation, and the second drier was being erected. Business men and engineers who have seen the location and factory buildings have been amazed at the short time in which this project was completed, - a factory building covering a floor area of 42,000 square feet of first class wooden construction and auxiliary buildings such as office and staff houses. Materials for the buildings were purchased locally and about 90% of the labor was from the municipality of Candelaria; the balance of the labor was brought in for major mechanical work, such as machinery, boilers and power plant erection. But during the construction period even these jobs were understudied by Candelaria folk who will when trained, do most of the operations. The design capacity for this factory is 72,000 lbs. of desiccated coconut per day employing about 650 laborers operating 24 hours daily. Buildings are so designed that two more driers can easily be added bringing the ultimate capacity to 120,000 lbs. of desiccated coconut with its corresponding increase in labor. As operating at present, it is devoid of mechanical conveyors, which were not obtainable during the war and are still long-delivery items. But within six months this factory will be mechanically set up so that from delivery of raw material to completed product handling costs will be at a minimum due to the use of up-to-date conveyor equipment. This company is known in the Philippines as the Peter Paul Philippine Corporation and is a registered Philippine Corporation. Mr. Howard R. Hick, a former desiccated coconut factory superintendent, is the general manager and Mr. Howard H. Curran, formerly factory superintendent of the California Packing Company is the factory manager. All other employees are Filipinos. The American company policies concerninlg business and labor have been very progressive and it is their desire to operate their Philippine factory in the same manner. Certainly their beginning indicates they will-they are the first to build a factory for the manufacture of desiccated coconut since liberation and their present production indicates that they are leading the way. "BUSINESS GUIDE' BOARD OF DIRECTORS Louis H. Zeun.... Chairman Howard R. Hick... Member Finley Gilbbs...... " Howard H. Curran. " Vicente Basallote... " * * * Pan-Pacific Advertisers, Inc., have announced the publication of the first issue Icf their new quarterly magazine for business men, Business Guide. Impressively dressed in a full color cover and printed on rare (for these times) coated stock, it is indeed a creditable job. For such a project to appear at this time provides an unusually optimistic touch to the local scene and deserves an attention not usually given to first numbers of magazines in Manila. The December issue contains 108 pages, almost half of which are devoted to the main feature, a directory of local establishments which is entitled "Where To Buy It." This is a classified directory, arranged alphabetically. The clkssifications have been made with considerable care and appear to be adequate. The listings under each classification are also arranged alphabetically, and consist of the name of the establishment and its street address. Other features of this issue include a reprint of the essential features of the Philippine Trade Act of 1946, a resume of the latest tax laws of the Philippines, and the latest schedule of postage rates. In the first pages of the magazine are original pen and ink sketches of President Roxas, President Truman, General MacArthur, Ambassador McNutt, Vice-President Quirino, Ambassador Elizalde, and Secretary Garchitorena with a special message from the last. The objective of the publishers is to introduce "the old and the new business firms which are helping in the country's economic rehabilitation. From the history of every firm and the -men behind it, as well as from the trade directory, the buying public may garner whatever fact is necessary for its information and convenience." The men behind this interesting new venture are Jesus Cacho, president, Rafael Hernandez, general manager, and Fernando V. Santos, advertising manager. The magazine is printed by the well-known firm of Cacho Hermanos, Inc. The American Chamber of Commerce Journal December. 1946 Interior view of Peter Paul's new coconut plant, now in production. 26

Page  27 FAR EAST AMERICANR COMMERCIAL CO., INC.?i i*0IMPORTERS ~~~~i *I M P O R T E R S I d WHOLESALERS i U E X P O R T E R S *;! STEEL OFFICE FURNITURE * OFFIGE EQUIPMENT & SUPPLIES! GENERAL HARDWARE * MACHINERY * TEXTILES * COSMETICS i SHOES * TOYS * NOVELTIES HOSIERY * PLASTIC & LEATHER BELTS * PAPERS, ETC. <('i;il! AIlN OFFICEfi| 0! ]THIRD FLOOR, YUTIVO BLDG. i! DASMARIRAS, MANILA 01! TELS. 2-85-86 & 2-85-87! Y' i S' J Manila's favorite.. i!j Sole Ili)o ters: FFAR EAST AND PATCO.i; A. SORIANO Y CIA. ii; General Managers Banco Hipotecario Building, Manila The American Chamber of Commerce Journal 2 December, 1946.-rCEi-C- —Y; ---VC — C-S —~ ~ C r~r- --- ---- ----i-T I~~~~~~ ~~~~~ g Distributors PHILIPPINE EDUCATION COMPANY 1104 Castillejos Quiapo, Manila (Take Arlegut St. to A. Farnecio) -.lb. -k! — L — Ib-. A — b -k -M-. su;w 7

Page  28 STATISTICS ON BANKING RESOURCES, LIABILITIES, AND MISCELLANEOUS ACTIVITIES (Prepared by the Bureau of Banking from reports submitted by 11 operating commercial banks) Week Ending Week Ending Resources Loans, discounts and overdrafts....... Investm ents......................... Due from Head Office and/or other Office or Offices which supplies working capital to Foreign banks.. Due from other banks in the Philippines. Due from banks outside the Philippines. Cash on hand....................... Balances in clearing account.......... Other resources not included above.... Total resources........ Oct. 19, 1946 P178,355,072 39,830,773 50,836,219 50,873,258 122,418,462 157,797,431 43,000,000 118,502,543 P761,613,758 Oct. 26, 1946 P182,032,590 39,830,321 49,699,034 46,685,920 127,224,079 165,802,852 39,000,000 157,919,949 P808,194,745 Week Ending Nov. 2, 1946 P175,224,697 39,829,552 52,110,162 48,302,386 141,215,226 158,145,134 40,500,000 156,299,239 Week Ending Week Ending Nov. 9, 1946 Nov. 16, 1946 P177,879,024 P194,150,102 39,829,552 39,828,682 45,655,422 46,162,236 153,678,999 158,639,012 40,000,000 159,147,386 40,446,187 42,988,064 153,771,568 158,016,542 ~ 38,500,000 155,965,397 P811,626,396 P820,991,631 P823,666,542 Liabilities Demand deposits.................... P222,208,358 Savings deposits..................... 120,604,890 Time deposits........................ 9,520,127 Deposits of public funds............... 111,134,936 Due to Head Office and/or other Office or Offices which supplies working capital.......................... 47,640,324 Capital - domestic banks............. 33,414,400 Surplus, reserves and undivided profits. 15,847,318 Due to other banks in the Philippines.. 5,732,783 Due to banks (Clearing House depository) 43,000,000 Due to banks outside the Philippines.... 7,120,439 Other liabilities not included above..... 145,390,183 Total liabilities........ P761,613,758 P228,959,068 120,158,751 9,525,515 116,343,731 48,277,426 33,414,400 15,230,846 6,315,071 39,000,000 7,321,928 183,648,009 P808,194,745 P223,827,885 119,947,622 9,508,515 121,543,782 49,740,546 33,414,400 15,407,195 6,923,981 40,500,000 6,927,326 183,885,144 P811,626,396 P221,019,214 119,299,236 9,484,695 128,125,560 51,620,453 33,414,400 16,070,556 5,108,550 40,000,000 7,299,906 189,549,061 P820,991,631 P220,601,875 118,822,969 9,887,501 132,532,455 55,662,649 33,414,400 16,047,530 3,414,417 38,500,000 7,825,517 186,957,229 P823,666,542 Miscellaneous Exchange bought since last report-spot Exchange bought since last report - future.......................... Exchange sold since last report-spot... Exchange sold since last report-future. Import bills whether for the purpose of collection only or otherwise received since last report................. Export bills sent abroad whether for the purpose of collection only or otherwise since last report............. Debits to individual accounts since last report............................ Letters of credit issued since last report Trust department accounts: a. Court trusts................. b. Private trusts................ c. Corporate trusts.............. P 12,530,042 1,546,835 12,131,959 3,519,758 P 12,721,310 17,850,334 3,916,095 P 9,296,418 P 13,787,358 P 12,474,589 199,938 12,877,702 2,995,966 15,566,479 4,906,041 1,696,250 11,677,831 3,358,109 4,059,233 6,057,684 5,171,135 5,445,249 3,948,098 2,990,993 1,844,134 2,439,032 2,427,131 2,468,527 130,111,227 7,708,203 1,225,305 3,905,202 7,582,254 96,436,738 99,005,375 77,034,609 92,437,281 40,964,412 11,150,009 12,341,584 12,269,177 1,224,456 4,246,514 7,582,254 1,153,307 4,057,809 7,582,254 1,238,074 4,019,237 7,582,254 1,300,945 3,999,125 7,582,254 28 The American Chamber of Commerce Journal December, 1946

Page  1 TO A. LA R LINERN ND FRO14 TINItr T S TA T.ES C TE UNITED T111R)~ TOUGR ILLS - ISLAND VESSELS SUED TO AUH BLLS OF LADING IS. srr~r>TO ALLP'NCIPAL PHfILp.;I,;rPINVE OUTPORTS HON(;KONG aM SHA p~ C. INC, HONGKONG8INGTIAI BANTK BLDC,. NEIV TEL. 2-82-04 YOK SAN FRnANCIC SHANC "' LOS ANGELES rs,~L~*~4 HOGKO NG( elcember, Of Cr uminerc, CALL 4,66-96: FOR FREE HOME DELIVERY 663 ECIIAGUE TEL. 4-66-96 111! ills. smaz its j r I RX ft A arrre Gennaore Dist i~tje BLESO U~isvillei Keatuky FOR ~ IR1K ) ~~~~~~~~Sole IIIPOrters -EPrVCO (par East a & Paif;,Tradina Co.) A. SoltIlvo Genera CIA, I'anco -'P~tclr' -Blg. an agers Bano iptecri B~Ge esJ 5th FI'a 1M.OMan'la,Tel. 2-79.61

Page  2 NEUSS, HESSLEIN & CO., INC. | "UFIRST NAME IN TEXTILE EXPORTS" 1ESTABLISHED 1865! 75 WORTH STREET NEW YORK, N. Y. Foremost Suppliers of Cotton & Rayon Textiles to the —Philippines i "The Mark of Satisfaction" 80 YEARS Of FOREIGN TRADE EXPERIENCE 201 ROSARIO STREET, MANILA, PHILIPPINES TEL. 2-97-31,,,,,,,,,v_ " _ _ _ _ - _ I ^ '^'^ ^ ^^y I BACHRACH MOTOR CO., INC. I r*s^- Y i;^'i \BACK AT PORT AREA m ouErS t NASH-ENGLISH AUSTIN; NWHITE-FEDERALi 'D. iX:R^. TRUCKS ~.W." (1""N 4.. ~ ~,,,..'~;.-~.-~"_"_"-' —__RUCK rr ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~y~~~~~~~~~~~~~~~~~~~~.~~. Itl~~ i~ ~~OPERATING..,;,,,'....-.... II. RURAL TRANSIT PASSENGER-FREIGHT SERVICE BETWEEN MANILA-APARRI = _ _ _. =l~-~t_ _~-; ^.t-s~-_*_t_..tt_._._t_._t~t~t_._.._t r;-, 2 The American Chamber of Commerce Journal December, 1946

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Page  4 ~1C~~)~ JC~ ~CJ dC) arc s- s - s-.t V. it 0 A When Carry Traveling National rr! 0i dZ f) lflr 0) 0. If, r City Letters of Credit and Travelers Checks. GOOD EVERYWHERE * SAFE * SELF IDENTIFYING The National City Bank Of New York I)I 0) 0i 0) r;. 0 kh 1- k -Ik -,I:- - - " _;- -, - lk _;- lk - lk::!! k -Ik - -1 - -k;- k - lk - -k - - - lk - -k -, -, - lk;- 1, - 1, - lk - lk - 0, i!,' - - I,,. -a, _.,, _.,, _.,, _..,,.. q It i, ^ l Cl l i i! 0i 07 AC~) C - C C~r_ C~ CI ) C~~~-~~~l)~ Cl~~ ~ CC)~ C C A_ FINANCIAL SERVICE * Mail and Cable remittances to most parts of the World * Foreign Collections * Documentary Credits * Travelers Letters Credit * Drafts * Travelers Cheques * Money Orders of I I, 1~~ 0 0i? (I 0F $ f ~) () f I?!?I?! I IT I TRAVEL SERVICE * Air Lines * Steamship * Train & Pullman * Hotels & Resorts ii! it! it! it! A <t it it R ': 0 it it it When ordering lamps FOREIGN SHIPPING SERVICE Merchandise of every description, personal effects and baggage accepted for foreign shipment in accordance with existing regulations of various countries. Protect your travel funds with American Express Travelers Cheque...- - '. ' - - ). ~. - v specify GENERAL ELECTRIC lamps stay brighter longer because they have the mark of highest quality GENERAL ELECTRIC (P. I.) INC. 120-13TH ST. PORT AREA, MANILA il! iS! it! iS! iS! iS! iS! iS! iS! fi i;i! ~{ ~ }~ i! (~ ^ ( i i i \ \ i THE AMERICAN EXPRESS CO., INC. EL HOGAR FILIPINO BLDG. Juan Luna, Manila 2 Tel.: 2-71-56!l...-.-.. Ah ) -k - k - -k -k - 0 -.b, -k -m. -k -qb, k -.1 WP- -.W -

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Page  [unnumbered] UNIVERSITY OF M[ICHIEAN BOUND IlilrlBlMl I l l IJI IUPllI' S~B~~OUI~NDU~ ~3 9015 01637 2867 NOV 26 1947 U li. r MICH. LURARY

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