Journal. [1947]

C 370002 HC 451.A5

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LUJ L)4 LLJ ILUr I10 -v ah~~~Toll ) its 2 ~~~~~~~~~ I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Ct~~~~~~~~~~~~~~~~~~~~~~~~~~~, LUJ LI-E P4 o 0 CII

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 ji 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 BEWARE OF IMITATIONS!.~~~~~~~~~~~~~~~~~~~~~~~,,=,, ALHAMBRA CIGAR & CIGARETTE 4;: MFG. CO. a's- 31 Tayuman - Manila

THE AMERIC JIo VOL. XXII, No. 9 I I '- ". -; ' -,. 4'..! -ft COMMERCE )AL FEBRUARY, 1947 Table of Contents Page Manila Rises From The Ruins by Bernardino Ronquillo................................. 5 The Road Back................................ 6 Report On the Mining Industry by the Bureau of Mines, Mr. Demetrio Andres, Officer-in-charge 8 Stock Market Review by A. C. Hall & Co........ 9 Editorial..................................... 10 Fifty Million Pesos Released.................... 11 An Iron and Steel Industry for the Philippines by Charles Mitke.......................... 12 Labor In The Philippine Republic by Carson Taylor 14 List of Government Owned and Controlled Corporations................................. 17 New Air Route............................... 19 Export Controls.............................. 23 Division of Standard Created.................... 23 Statistics on Banking Resources and Liabilities.... 24 The American Chamber of Commerce Journal 3 February, 1947 B. GABERMAN STOCK BROKER 328 Dasmarifias Member MANILA STOCK EXCHANGE I CODES: A B C 6 ED. BENTLEY 2ND ED. CABLES: "IPEKDJIAN" IPEKDJIIn mERCHAnDISlnG CO. IMPORT- EXPORT S 312 AYALA BLDG. (NAT. CITY BANK BLDG.) MANILA, P. I. -:~~ - =~~ -- —; —~ --- —

I I SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and EXCLUSIVE DISTRIBUTORS of HIGHEST-PURITY OXYGEN and ACETYLENE GASES * "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 r-I I Subscribe t o AMERICAN CHAMBER OF COMMERCE JOURNAL THE ONLY JOURNAL OF ITS KIND I - -~ 4 The American Chamber of Commerce Journal February. 1947

Manila Rises From The Ruins Rebuilding Gets Started By BERNARDINO RONQUILLO Manila's skyline has already undergone quite a change even before rebuilding has hits its stride. In 1945 downtown. Manila was a heap of rubble and debris; but in 1946 the city literally rose from. the sorry sight it was just after liberation. The residential area south of the Pasig was transformed early in 1945 to almost flat country-side with very little life; today quonset huts and other light material houses are helping to fill the void caused by the worst conflagration that ever hit Manila during the first two weeks of the battle for the Philippine capital. A beginning is all that has been made in the way of rebuilding, but progress has been amazing, when lone considers the obstacles that had to be surmounted, namely: 1. The uncertainties of the zonification plan which up to now has not been put into effect due to, the conflicting ideas of property owners and city planners over the widening and improvement of streets in downtown Manila particularly; 2. The general dearth of funds to enable small home-owners to start building new homes; 3. The delay in the (payment of war damage claims for which possibly a million claimants are waiting. 4. Scarcity of building materials for reconstruction on a larger and more extensive scale or the reluctance of many prospective builders to start rebuilding due to the high cost of construction. The tremendous demands for housing' to accommodate the thlousands of city inhabitants left homeless necessitated the hurried setting up of temporary quarters, but until now this problem has hardly been relieved and, despite the rental law, tenants are complaining they are not getting enough protection from the excessive rates charged;by landlords. Increases lof 50 to 100 per cent in rentals have been already effected or are about to effected as a result of the heavy demand for more accommodations. The necessity 'for setting up quarters to house business offices and stores was even more urgent in order to restore normal economic life and start the rehabilitation of the Islands' shattered national economy. Hence, the comparatively greater headway made in rebuilding business establishments than in rebuilding homes. As a general rule, strong material construction last year was confined to the repair and rehabilitation of prewar structures, some of which were so badly damaged the cost of- putting them in shape was almost as much as the cost of building new ones on a normal prewar basis. The encouraging fact about city rebuilding is that many of the big prewar business establishments have been restored and reopened. These include a number of buildings in downtown Manila, like the Wilson building, the Trade and Commerce building, the Soriano building, the Aguinaldo building, the China Banking Corporation building, the National City Bank of New York (Ayala) building, the Hongkong and Shanghai Banking Corporation building and the El Hogar building on Juan Luna and others around the banking district; Insular Life building and Filipinas building on Plaza Moraga; the Calvo building, Perez Samanillo, Regina and Fernandez buildings on the Escolta (the Heacock building having been purchased by the U. S. government; the Monte de Piedad building on Plaza Goiti (practically intact); Great Eastern Hotel on Echague; Central Hotel on Rizal Avenue; and a number of other edifices on downtown business throughfares. The theatres and movie houses which grew up in the decade that followed the depression years and which contributed to Manila's skyline had all been virtually completely restored before 1946 drew to a close. They include such fine structures as the Avenue Hotel and theatre, Ideal Theatre, State building on Rizal Avenue; Lyric and Capitol on the Escolta; Times Theatre and Life Theatre on Quezon Boulevard. A number of new movie houses have also sprung up in the area levelled by fire, particularly in the Quiapo district. Official figures on city construction (which do not show all the rebuilding accomplished in 1946) tell an even more convincing story of the definite gains scored in lifting the once beautiful "pearl of the Orient" from the rubble and ruins of war. City construction, including repairs, in 1945 (officially recorded by the (Continued on page 16) Mayflower Photo Studio Escolta in January, 1947 The American Chamber of Commerce Journal Febrary, 1947 6

The Road Back To Normal Production-To Normal Labor Employment Not An Easy OQue The tobacco industry did not rank as the largest, or the next largest in.dustry in the Philippines before the war. Nevertheless it did play in a very important role in the industrial organization of the country, creating about P10,000,000 worth of export products a year and providing employment (on the manufacturing end) to about 20,000 people. As an agricultural crop, it ranked eighth in area planted, approximately 58,000 hectares having been planted to tobacco in 1940. Not the largest industry, no. But one that for many years, decades and even centuries (it is an old industry in this country) has brought in a steady income for many thousands of people, farmers and factory workers. The great plants of this industry were concentrated in the Manila area, where the four leading manufacturers of cigars and cigarettes were located - Tabacalera, La Insular, La Yebana, and Alhambra. Agriculturally, the industry was centered in. the Cagayan valley, the two provinces of Cagayan and Isabela in 1939 producing 17 million kilograms of tobacco out of a total production of 32 million kilograms. The province of Isabela far out ranked all other provinces with 12 million kilograms. Outside of northern Luzon, the only important producing area was Cebu, which accounted in that year for approximately 2 million kilograms. As was true of every other industry of the Philippines, large or small, the liberation of the Philippines found the tobacco industry lying in dust and rubble. In their last orgy of destruction, the Japanese blew up or fired many industrial plants that up to then had partially or wholly escaped injury. Of the large factories named above, only one remained-Alhambra. La Insular was destroyed by fires from the second American bombing of the city in September, 1944. But Tabacalera (La Flor de la Isabela on Isaac Peral St.) and La Yebana were the victims of the Jap scorched earth policy. The great Alhambra plant on Tayuman St. emerged from those days of destruction almost unscathed. When the Japs blew up a nearby bridge, the force of the explosion shattered every window pane throughout the factory and office buildings; but otherwise it was intact. The managerial and factory staffs were ready and prepared to resume operations almost before the smoke of battle cleared away. Nor was the destruction of the Meralco power plant a hindrance, for the factory was the fortunate owner of its own power plant on the premises. For several reasons it is worthwhile at this time almost (two full years after the liberation of Manila) to visit the Alhambra plant and to study the degree of success that has attended its efforts to return to its prewar production and labor employment levels. The results should throw a light on. not only the tobacco industry of the Philippines but also on industry in general. The very fact that it is one of the few factories of any kind whose rehabilitation did not depend on the securing of new machines, etc. from abroad gives its experience in this post war world peculiar interest to the student of Philippine industrial conditions. The Alhambra Cigar and Cigarette Company was first organized in 1898. Its early years were beset with financial difficulties, and in 1912 it passed under the control of Kuenzle and Streiff, a well known Swiss company, who incorporated it with a capital of P800,000, all of which was in common stock form and was closely held by the original incorporators. The original factory was on Novaliches St., but in the early 1920s the buildings of the La Flor de Intal were secured on;Tayuman St. and the factory was moved to that location. The cigarette factory annex was built a few years later. Alhambra has always been strictly a manufacturing concern, buying its supplies of tobacco leaf in the open market. Most of its stocks were purchased in the Cagayan valley, where the company maintained five or six expert tobacco buyers, and several warehouses or bodegas. When the battle for Luzon began in January, 1945, these bodegas were filled with some 30,000 bales, much of which was 1941 production and purchase. But during the first six months of 1945, as a result of the bitter fighting in the Cagayan valley, 65% of their bodega stocks were destroyed. Probably the same percentage of loss was applicable to tobacco stocks generally. As has been said, this factory was ready and able to resume production (which means also "employment") almost before the smoke of battle had cleared away. The first re'al obstacle it encountered was unfortunately placed by the government, in the form of requirements for re-registration (being a corporation). In spite of all that the company could do, this process consumed months, and it was October, 1945, before it was finally permitted to resume operations. This period of enforced idleness was the source later of much difficulty and trouble not only for Alhambra but for the bona fide tobacco industry generally, and also for the government. It was during this period that cigars and cigarettes became ~bootleg products. Numerous small Mayflower Photo Studio W. EGGMAN Treasnrer-Manager, Alhambra Cigar & Cigarette Co. Mayflower Photo Studio J. H. WENDT Factory Manager, Alhambra Cigar & Cigarette Co. 6 The American Chamber of Commerce Journal February. 1947

illicit establishment took quick ad vantage of abnormally prices for cigars and cigarettes, and the temporary forced suspension of legitimate manufacturers from production, with a resultant serious loss of revenue iby the government. Of special concern to legitimate, well-known manufacturers was the fact that the boot-leg producers imitated the laibels of famous brands for the purpose of marketing their products. Protection against this mal-practice was far from sufficient. The consequence, in the case of Alhambra, was that it became necessary for them to take unusual and expensive precautions in preparing their own labels when they were finally permitted to resume production. To some extent the emergence of the boot-leg manufacturer, during this period when the market was unwisely left to them to exploit, created problems of revenue collection that until today continue to cause financial loss to the government. The problems that Alhambra has had to meet and solve since it resumed operations in October, 1945, are fundamentally no different from those of industry in general in the Philippines. They involve such questions as inflated labor costs and raw material prices. A brief description of the specific situation at this one factory is worthwhile. By January, 1947, Alhamrbra had travelled the road back to normal production to the extent of 25% in cigars and 15 % in cigarettes. As an employer of labor, it had progressed, 30% of the way back to normal. Quite and!achievement when it is learned that the present scale of wages is three and a half times prewar and the present cost of tobacco is five to six times prewar costs. And little short of miraculous when it is learned that some of its products are selling for little less than two times prewar prices, and none of them as much as three times prewar prices. For example, Corona cigars now sell for P28 per hundred as against P16.60 before the war; and Alcalde cigars for P20!per hundred as against P8 before the war (all factory prices). The Alhambra Blanco cigarette (short) before the war sold for P80 per thousand packages 'of 30 cigarettes each, including P39 tax. In spite of inflated labor costs and raw material prices, this popular brand is now being sold at P150, which price includes P60. in taxes. Until January 1, 1947, the fadtory price was P230, which included an P120.-tax. A decrease of P20 in the factory price (minus tax) brought the cigarette down into the lowest tax bracket. which meant P60 less in taxes. In a nutshell, the company gets P20 less than before January 1, the government gets P60 less, and the buyer at the factory pays P80 less. But there has been no reduction in wages or in row material prices. The most serious obstacle in the way of further progress is the continued shortage of tobacco. Last year's crop was approximately onethird of normal. It was anticipated that this year there would be an increase in tobacco plantings that would bring the crop up to 50% of prewar levels. But after the seed Ibeds were planted last October in the Cagayan valley, a typhoon with rains had almost disastrous effects. What the final crop will be it is impossible to (Continued on page 13) * Mayflower Photo Studio Ciga,rette machine-thbree oat of lnine machine.s are being operated Mayflower Photo Studio Assembling cigar boxes The American Chamber of Commerce Journal February, 1947 7

Report On The Mining Industry Contributed by the 7Bureaucl of Mines, Mr. Dev!ietrio Andres. Office'-in-charge Mining was a major industry of the Philippines before the war, being a close second to sugar which led by only j few million pesos. If the war had not broken out sugar might have been displaced by mining as the premier industry of the Philippines by the end of 1941. Prior to the war, 57 mines were in actual production. They consisted of 38 gold, 5 chrocmite, 5 iron, 6 manganese and 3 copper mines with a total production from 1935 to 1940 of the following values: 1935 1936 1937 1938 1939 1940 P 33,289,897 47,496,225 57,494,278 72,055,T56 82,980,021 91.607,210 :~'~,:3PIIIJ1 "I ~.:..... 1,~, ~i... ~: ~~~~~ .. ~*.~:~' i ~'' /~ ~~ ~ ~"~:~; '":~~, ~' ~~' ~: " ~~'):~. '~~ X~:~: "' '~""U~.~:r~:...~i~Y)Bj The mining industry gave employment to, 42,931 laborers in 1940, used 84,267,607 board feet of lumber, bought P36,660,647 worth of machinery and consumed 228,746,462 K. W. H. of power. 'The almost complete destruction suffered by the mining industry during the war has been evaluated by the Bureau of Mines at about P121,000,000. Many of the mines th'at suffered complete destruction may never be opened up again. Among the few companies which have been able to rehabilitate their mines, ionly two are today in actual production. The lack of machinery and the high cost of labor are delaying the opening of many mines, including the readily accessible ones. In the Baguio Gold District. Benguet Consolidated Mining Co., Balatoc Mining Co., Big Wedge Mining Co., and Lepanto Consolidated Mining Co. are rehabilitating their mines. The 1000 ton mill which Benguet and Balatoc are putting up between their properties will soon be completed. It is 2000 feet northeast of the Balatoc main haulage level and is about 7000 feet from the Keystone vein of Benguet. It is expected to open operations in the early part of 1947. The company's current payroll covers more than 2,000 employees. Big Wedge is the only mine in the Baguio District which was saved from heavy destruction during the war. The mill is about 80% intact while the mine is in fair shape, although two shafts were badly Mayflower Photo Studio DEMETRIO ANDRES damaged due to timber decay and caving in of heavy walls. Many small parts of the mill were stolen during the Japanese occupation. Every effort is being exerted to get the mill back in operation during 1947. The payroll of the company last October contained 250 men, as against 160 men. last June. Lepanto Consolidated is now preparing the site and foundation, for a new 500 ton mill, and is reopening and making its mine ready for stoping ore as soon as the mill is completed. The Lepanto mill was razed to the ground and the mine blasted during the last minute resistance of the Japs in that place. In the Paracale district only small scale rehabilitation is going on in San Mauricio, United Paracale and Coco Grove. The Companies are gathering and putting together what is left of the power plants and are repairing and reconditioning what is left in the mines. Treasure Island is also putting the camp and mine into operation, employing over 100 men. Masbate Consolidated is now cleaning and putting its mill and power plant into condition, which were left practically intact by the Japanese. In the Surigao District, Mindanao Mother Lode and Surigao Consolidated are now in operation. A new dredging company is assembling a dredge to work a placer ground 'ad joining the North Mindanao Mining Co. property. Surigao Consolidated is actually milling their oxidized ore mined by open pit, at a rate of about 150 to 200 tons a day by table and flotation. Operations have been hindered recently by labor difficulties. Mindanao Mother Lode has been busy putting the mine and camp in shape for mill operation Iby the middle of 1947 but due to the shipping strike on. the Pacific Coast the shipment of their machinery has been delayed another six months. Among the base metal mines, Consolidated Mines is the first shipper of ore to the United States, present shipments amounting to 12,000 tons of chrome ore monthly. Benguet Consolidated is mining their chromite deposit on a profit sharing basis. Tlhe camp was completely damaged, while the road and bridges were in very bad shape after the war. Acoje Mining is doing some repair work on their property but so far no chrome ore shipments have been made. At Cagayan, Oriental Misamis, Luzon Stevedoring Co. has started reopening its chromite mine. Repair on the road is going on rapidly. Also the Soriano interests are busy exploring their chromite claims southwest of Cagayan. Among the manganese mines, Luzon Stevedoring is now opening the Philippine Nippon Mine on Busuanga Island, where the camp, pier and road Fare being repaired. The mine was badly damaged during the occupation. Coal mining is booming in Cebu at the present. The demand of coal is great at the Cebu Portland Cement Co. and, since no importation is available, native coal is being used. The monthly production tof the Cebu Coal District during 1946 was: January.... February... March...... April....... May........ June........ July........ August...... September... October..... November 954.02 tons 938.56 " 1277.72 826.86 " 3016.97 " 3796.36 " 5043.25 " 5895.20 " 5702.65 " 7583.24 " 2709.31 " (Continued on page 23) 8 The American Chamber of Commerce Journal Fermaury, 1947

Stock Market Review for 1946 By A. C. HALL AND CO. The past year witnessed the resumption of official trading in the Manila Stock Exchange. The Exchange actually opened its doors on January 26, but previous to that date trading in securities had been carried on over the counter by Exchange members. On the resumption of trading, the Securities Commission permitted. the Exchange to grant official listing to all issues listed at the outbreak of war provided that the companies in question were in a position to effect share transfers. On January 26th, seventeen companies met these requirements. The Exchange was permitted subsequently to add to this group as soon as other prewar issues opened their share transfer offices. Later in the year, however, the Securities Commissioner amended this ruling, withdrew automatic relisting privileges, and placed certain requirements on companies seeking relisting on the Exchange. At the present time, there are thirty four stocks officially listed as compared to ninety issues on the Big Board during late 1941. The shares of previously listed companies which have not yet applied for relisting are meantime traded over the counter. In addition to these issues are such unlisted stocks as Benguet Consolidated Mining Company. and Far East Oil Development which have always been traded over the counter. Business transacted on the Exchange during 1946 was of considerably smaller proportions than during prewar years. The approximate total value of transactions during 1946 amounted to slightly over P20 million. Of this total, the mining section accounted for about P17,000,000. MINING GROUP The improvement which commenced late in 1945 gained vigor early in the year, and selected issues advanced sharply during January and February under the impetus of a substantial demand from the United States. The rise was aided by an artificial shortage of stock. Potential sellers, attracted by high prices of some issues, were unable to dis pose of their holdings, for one reason or another. The rise topped out late in February when our mining share average reached a high of 49.85. By then additional transfer facilities were available, and local holders, desirous of raising funds to finance other business interests, became ready sellers. At about the same time, investment demand from the U. S. slackened as the first rush of postwar speculative enthusiasm evapo0 -ated in Wall Street. Furthermore, it had become more evident that the rehabilitation of Philippine Mining Companies was going to take a longer period of time than many people had hitherto considered possible. For most of the year thereafter, the market was in a sustained decline. Prices hit bottom during August and September. Actually on a daily closing basis the low point in the average was reached on September 26 at 25.55. However, prices had traded in only a one point range on very small volume for about a mnonth prior to that point, generally indicative of a sold out market. An old adage is that a market that cannot decline can advance, and this was again witnessed as prices moved steadily forward since early October to close the year at 35.60, or almost forty percent better than the low point of September. In our opinion the Manila Stock Market, is currently performing the traditional function of Stock Markets all over the world. It is the barometer of public opinion, and coming events. The recent advance reflects investment faith in, the future of this country. The market's technical action at present suggests that the highs of 1946 will at least he tested during this year. (In(Continued on page 19) I!I JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC 50 1946 45 40 35 30 I 25 A.. HA LL &CO - N Ih SHARE AV The American Chamber of Commerce Journal February, 1947 9

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. T. Subscription rates: One year in the Philippines. P5.00; United States $5.00 U. S, Currency, American Chamber of Commerce of the Philippines DIRECTORS F. H. STEVENS. President J. L. MANNING, Vice-President FAY C. BAILEY, Treasurer B. G. Baumgardner Max Blouse John F. Cotton Samuel Garmezy G. C. Miller J. A. Parrish IEONI ROSENTHAL. Secretary ANNUAL REPORT OF THE AMERICAN CHAMBER OF COMMERCE This past year has been a year of change and development and we may well add, progress in all lines of commercial and industrial activity. In fulfilment of its promises, the United States granted political independence.to the Philippines on July 4, on which day in the presence of high-ranking representatives of the American people the new Republic of the Philippines was proclaimed. From all points of view, this was the outstanding event of the year. To Americans in the Philippines it was of particular significance, for they found it necessary to adjust themselves to their new position as aliens in the Philippines. The year has been a particularly strenuous one for merchants. Difficulties in getting merchandise into the Philippines have been numerous and at times very trying. Shipping shortages, due to strikes in America, berthing shortages and warehouse shortages in Manila have all contributed to the merchant's problems. These difficulties are gradually being solved. In the city of Manila many changes have been effected. Much of the rubble has been cleared from the commercial districts. Many large office buildings have been repaired or are in process of repair-though in some the repairs are of a temporary nature. Many new buildings have been erected, and while most of these structures built of lumber are for temporary use only and some would best be classed as shacks, they are relieving the much needed housing problem for business. Dozens of stores and offices are occupying these temporary structures. The continued shortage of adequate building materials has prevented permanent construction requiring steel and cement. The situation in the Port Area has improved considerably during the year. By releasing important piers and industrial and commercial properties in that area, the U. S. Army made it possible for civilian enterprises to expand their operations to the benefit of conditions generally. Pilferage of incoming cargoes still consti tutes an important problem, but losses have been reduced materially during the past few months. Transportation facilities of all kinds have improved remarkably during the year. Inter-island shipping and land transportation have been extensively improved in quantity and quality. But it is in the field of air transportation that the greatest developments have taken place. The end of 1946 found Manila one of the world's great air centers, a fact that has contributed! in an important way to the solution of many of our problems. Most of the financial institutions of the countrybanks and insurance companies-were rehabilitated or re-opened during 1946, local banks and insurance companies having been extended aid by the government. Eleven banks are now operating, as compared with 16 before the war. Deposits reported by the eleven banks, however, are twice as large as pre-war deposits in the 16 banks, amounting in November, 1946, to P480,000,000. Indicating the general confidence in the future, the Bank of America announced in November, 1946, its plan to establish a branch in Manila early in 1947. Due to the almost complete destruction of the Philippine industrial plants, exports lagged far behind imports in volume during 1946. However, in the latter half of the year, the volume of exports showed a notable increase. This increase was contributed to mostly by copra and hemp. The total value of copra exported was for the year about P70,000,000. Half of this total (P35,000,000) was exported during the last three months of the year. Total shipments of abaca to the end of October (the last date for which figures are available) amounted to 167,288 bales valued at P8,005,472. While the United States was by far the most important buyer of both products, other countries shared in the trade to some extent. Altogether 12 countries (including the United States) secured copra from the Philippines, and three countries secured hemp. Before the end of the year, the Philippine government had acquired from the United States Surplus Property Commission more than two billion pesos worth of surplus property at less than 25% of its original cost. Included in the transfer were ships lof various tonnages, machinery, equipment and supplies that will aid the rehabilitation of Philippine industry. Such items as are not required by the government and its various branches will be offered for sale to the public. The moratorium on debts remained in effect at the end of the year, to the detriment of merchants who sold machinery and automobiles and trucks on deferred payrments plans before the war. These merchants are still denied the right either to collect their accounts or to effect the return of their properties. The First Congress of the Republic passed Act No. 62 which established rules and procedures for the reconstitution of corporate records. This Chamber has met with other organizations in Manila for the purpose of securing desirable changes in. the law for the benefit of' corporations and owners of stocks. Late in the year, the Philippine War Damage Commission established its offices in the Aguinaldo Building on Juan Luna Street and will probably distribute claim forms to prospective claimants in February. This Chamber has initiated a movement to amend the basic war damage law so as to make it more effective in rehabilitating the industries of the Philippines. With the granting of independence, the tax obligations of Americans in the Philippines presented a confused picture. This Chamber took an active part in clarifying the situation. Work in this direction has not (Continued to page 21) 10 The American Chamber of Commerce Journal February, 1947

FIFTY MILLION PESOS RELEASED BY RFC Primitive Lovina, president and general manager of the Reconstruction Finance Corporation, announced at a press conference on January 17 that its initial capital of P50,000,000 has been allocated to various rehabilitation projects. The allocations are as follows: P15,000,000 for industrial loans 10,000,000 fcr agricultural loans 10,000,000 for home-building 7,000,000 for purchase of large estates for subdivision and resale to tenants 5,000,000 for loans to provinces, cities and municipalities 3,000,000 for loans to public utilities The sum allotted to industrial loans will be used for the reconstruction of the sugar centrals destroyed during the war, so that this premier Philippine industry may speedily be reestablished. The home-building program has already commenced. Mr. Lovina announced that a total amount of P300,000 had been advanced to borrowers up to the date of the announcement. Loans for the rebuilding of destroyed homes are charged an interest rate of four percent per annum. Loans for the construction of new homes are charged an interest rate of six percent per annum. The second type of loan is charged a higher rate of interest because the funds used for the purpose are taken from government funds entrusted to the RFC for investment, not from the rehabilitation funds. The first loan by the RFC to a local government was made to the municipality of Pasay, Rizal Province, in the amount of P200,000. The purpose of the loan was to reconstruct the public markets and slaughterhouse. Mr. Lovina stated that the corporation will consider favorably applications from local governments for the reconstruction of waterworks, electric plants and other self-liquidating projects. I LI= NEW TIRE BY B.F.Goodrich a -. WEARS LONGER THAN PRE-WAR TIRES * Wider, flatter tread wears longer. * Stronger safer body. * 16,800,000 miles of tests helped to prove it's better than prewar tires. Goodrich International Rubber Co. 13th & ATLANTA STS., PORT AREA -MANILA, P. I. I)I The American Chamber of Commerce Journal February, 1947 11

An Iron and Steel Industry for the Philippines By-CHAS. A. MITKE, Consulting Engineer. As the year 1947 commences, the possibilities for industrial expansion in the Philippines appear greater than ever. Taking one specific item-iron and steel-this is the first time in years that we are confronted with a world shortage. The present large demand for iron and steel products in the Philippines offers an opportunity for the construction of an Island iron and steel plant. Furthermore, the location of these islands places the Philippines in the center of a circle which takes in points as far distant as Gualdalcanal, New Guinea, Dutch East Indies, Singapore, Straits Settlement, Burma, Siam, IndoChina, China, etc. Therefore, a plant in the Philippines could supply any of these countries. Most of the essential raw materials are mined in the Philippines, and those which are not available here is sufficient quantities may be obtained from adjacent countries. Leafing over the Philippine Mining Year Book for 1941, I find that on page 114, I made the following statements: "High grade iron ore is available in Paracale, Samar, and Marinduque; manganese in Busuanga, chrome and alumina in Zambales, and water power in Mindanao. "If ever there was a combination lof natural conditions for the development of a large new enterprise for the future growth, industrial expansion and preservation of a country, it exists in the strategic mineral and power resources of the Philippines." In regard to the natural resources of high grade iron ores, there are four important producers which were active before the war; the Philippine Iron Mines at Larap, with an annual productive capacity of 600,000 tons; the Insular Mine Operators Inc., with a capacity of 200,000 tons; the Gold Star Mining Co. at Marinduque, with 300,000 tons, and the Samar Mining Co. Inc., with 400,000 tons. All this ore ran 60 % iron and had a low moisture content. These are all low cost smelting ores, and were formerly purchased by Japan adnd treated in the large Yawata fur naces. Approximately 1,500,000 tons a year for the next fifteen years can be furnished by these former producers. In addition to the above, the Philippine Government owns the large Surigao iron deposit with a,billion tons reserve. It is one of the largest iron ore deposits in the world and formely belonged to the United States Government, which gave it to the Philippines. The approximate analyses of this ore is as follows: Iron............. Chromic Oxide.... Nickel............ Manganese....... Moisture......... 48.00% 1.00% 1.00% 1.00% 10.00 to 18.00% This is a laterite deposit and its metallurgy has not as yet been worked out. In 1940, the Mitsui engineers, who were performing research work on the Surigao ores, estimated it might take them another five years to solve the metallurgical problems. At that time they stated that their furnaces could not stand the extremely high heat required to melt the Surigao ores. Limestone for fluxing ores can be obtained in a number of places in the Islands. Coke can be imported from Southeastern Borneo; Newcastle, N.S.W. Australia, or obtained by mixing French Indo-China high grade semi-anthracite coal with Philippine fines and treating the mixture in coke ovens. Before, and during the war, the Japanese mixed French Indo-China coal with Nagasaki fines, and coked them for use in the Yawata plant. In 1946 I saw the same thing being done in the automatic coal mixing plants in the Yokohama area. The Pauley Commission has recommended that all Japan's steel tonnage in excess of 2,500,000 tons be made available for reparations. The peak of Japanese production in 1944 was 11,000,000 tons. The difference between 2,500,000 and 11,000,000 tons would be 8,500,000 tons, which, if intact, would be available for reparations. However, much of the productive capacity of the country has been destroyed, and the actual production figures at the present time are very much less. When I was in Japan in 1946, I studied a number of these plants, and found that, while at first glance, many appeared to be total wrecks, due to incendiary bombs which had started fires on roofs and destroyed all combustible material, a closer inspection revealed that many of the I-beams which formerly supported the roofs, were not even bent. Likewise, much of the machinery, which extended off and on for many miles in the highly industrialized areas, and which at first appeared to be totally destroyed, was not as badly damaged as might be expected, and with a little repair could be put in operation again. The great opportunity in the Philippines is three-fold: First:-For the Government to develop the Maria Christina Falls to its ultimate capacity of 1,000,000 horse power, the water for which is supplied by nature's ready made lake-Lake Lanao. According to some engineers, all that is required is to deepen the channel and install control gates. A. D. Williams, Director of Public Works in 1941, often told me "this would provide the cheapest power in the world". Anywhere up to half a dozen plants could be installed at the various major and minor falls. The construction of power lines to the water fronts, both North and South, certain areas of which might be set aside for industrial purposes. The building of about 100 kilometers of concrete roads to connect power plnts and cities with the industrial plants along the water front. The building of power plants, construction of roads, and installation of power lines, etc., might involve an expenditure of approximately P300,000,000. and take about four years. Second:-Invitations might be extended to a number of large industrial corporations which would be prepared to invest the necessary capital to utilize the power in various enterprises, such as "iron and steel mills"; "copper smelting and electrolytic plants"; "chemical industries" large enough to supply fertilizers for the agricultural areas of the Philippines; "pulp and paper mills"; "ceramic industries"; "aluminum industry"; "ferro-chrome and ferromanganese smelters"; "ship 12 The American Chamber of Commerce Journal Febrary, 1947

building and ship repairs"; "the manufacture of machine tools"; etc. Third:-Small businesses would automatically spring up once the larger ones were in operation. Henry Ford frequently used to mention that it took several thousand small businesses as feeders or suppliers to his large motor works. An effective iron and steel industry would require an investment of approximately P250,000,000. This would be needed, in part, to set up the plants obtained from Japan, and to supplement them with a great deal of new equipment. While I saw some electric blast furnaces in Japan that were new, most of the equipment had been used and will require extensive repairs. A large part of the machinery was modeled after American designs as many of the Japanese engineers formerly worked in steel plants in the Eastern part of the United States, and on their return home designed the Japanese installations along parallel lines. While P250,000,000, may seem a large figure, some 'of the plants I saw in Japan, at today's prices, would cost as high as P400,000,000. The big Mitsubishi plant cost much more than this. A Philippine iron and steel company would, first of all, have to select a suitable site and prepare the ground to receive the machinery. This would undoubtedly include rolling mills, blooming mills, sheet and tube mills, coking ovens with their subsidiary or by-product plants using waste gases for the manufacture of ammonium sulphate, oils, tars, dyes, and other produts. It would also require a flee of iron ore boats to transport the iron. ore, coal, chrome and manganese from the mines to the redtction works in Mindanao, as is done in the Lake Superior region (Michigan and Min(Continued on page 23) The Road Back... (Continued from page 7) foretell at the present time. Although present prices of tobacco would normallly be considered highly attractive famine conditions in the Cagayan valley have made food crops still more attractive to the farmer. Until the basic problem of food is solved, much land formerly planted to tobacco will continue to be closed to that crop. Making a difficult situation still more difficult, transportation costs are also extremely high. Before the war it cost P2 ta haul a bale of tobacco overland from the Cagayan valley to Manila. Today the cost for the same b'ale, from Isabela province, is P7 and seemingly little prospect of reduction. '. '. '.Mayflower Photo Studio' Cigars hMayflower Photo Studioolled Cig's are X hand' I'olled Mayflower Photo Studio Packaging cigarettes a I --- Subscribe to the AMERICAN CHAMBER OF COMMERCE JOURNAL -- -- The American Chamber of Commerce Journal February, 1947 13

Labor In The Philippine Republic By CARSON TAYLOR (From an address befolre the Manila Rotar'y Clib) Less than 35 years ago the United States Congress deemed it necessary to confirm existing legislation. prohibiting slavery, involuntary servitude and peonage in the Philippines and the kidnapping of persons to be sold into slavery here or elsewhere. It is only logical to assume that offenses against humanity of this character were being committed; it is only reasonable to believe that the Congress acted upon reliable knowledge of their commission. The advancement of labor in these less than four last decades has been rapid if not complete. There has been a succession of labor laws designed to protect and better the lot of the la;borer, the servant, the mechanic, employee and tenant. As far back as 1915 legislation was enacted to protect contract laborers. In 1923 the Sixth Philippine Legislature approved regulations for the employment of women and children, prohibiting the employment of the latter below certain ages and their working in dangerous enterprises or those which might tend toward moral corruption. The Ninth Philippine Legislature provided free emergency medical treatment for employees and laborers of commercial, industrial, and agricultural establishments. These were but a few of the laws intended to benefit employees and tenants that were adopted over a period, of years. In 1936 the First National Assembly enacted legislation setting forth the rights of unions to engage in collective bargaining. The law, in part, said: "All associations which are duly organized and registered with, and permitted to operate by, the Department of Labor, shall have the right to collective bargaining with employers for the purpose of seeking better working and living conditions, fair wages, and shorter working hours for laborers, and, in general, to promote the material, social and moral well-being,of their members, and no labor organization shall be denied such registration and permission to operate, except such whose object is to undermine and destroy the constituted government or to violate any law or laws of the Philippines, in which case it shall be refused registration and permission to operate as a legitimate labor organization." CARSON TAYLOR This Act, unlike any legislation existing in the United States, took precautions to make certain that labor unions should not have the unbridled right to operate without regard to the public interest or without control. It required that legitimate labor organizations which were. duly registered and permitted to operate, must keep books and records containing alphabetical lists of their 'members, minutes of their meetings and that once a year they must submit to the Secretary of Labor a report of fiscal and other activities during the previous year. Failure to comply with this requirement was cause for revocation of the labor organization's license. The precautions taken against unions, however, were not one-sided. The same legislation made it a felony (and provided penalties) for any employer to intimidate or coerce his employees with the intent of Ipersuading them not to join a legitimate labor organization of their own choosing. It invoked the same penalty against employers who dismissed or threatened to dismiss employees because of membership in legitimate labor unions. This was a far cry from the days when it was believed necessary to enact legislation prohibiting slavery, peonage or involuntary servitude. 1940 witnessed the adoption of even more far-reaching labor legislation designed to protect the rights and interests of working men and women. In many ways this was the Philippine counterpart of the bitterly disputed American Wagner Act. It was called the National Labor Relations Act, and it was protested by industry because of its drastically restrictive provisions and the ]egulations promulgated thereunder, as well as by those sections of labor which wanted more and more freedom for themselves and even more restrictive regulations of employers. Commonwealth Act No. 103, adopted by the First National Assembly, was "An Act To Afford Protection of Labor by Creating a Court of Industrial Relations Empowered to Fix Min.imum Wages for Laborers and Maximum Rentals to be Paid by Tenants, and to Enforce Compulsory Arbitration Between Employers or Landlords, and Employees or Tenants Respectively." It also created the C'ourt of Industrial Relations, having jurisdiction throughout the entire Philippines, to consider, investigate, decide, and settle all questions, matters, controversies, or disputes arising between or affecting employers and employees or laborers, and between landlords and tenants or farmlaborers and to regulate the relations between them. The Court was directed to take cognizance for the purpose of prevention, arbitration, decision, and settlement, of any industrial or agricultural dispute causing or likely to cause a strike or a lockout. Such Idispute might arise from differences regarding wages, shares or compensation, dismissals, lay-offs, suspensions of employees or laborers, tenants, or farm-laborers, hours of labor, or conditions of tenancy or employment. The only requirements imposed upon the Court for its intervention in such disputes were that the number of employees, laborers, or tenants, or farm-laborers involved exceeded thirty and that the dispute be submitted to it by the Secretary of Labor or by either or both of the parties to the controversy. Here again was a difference between the Wagner Act and the Philippine law. In the latter the employer was given the right to refer a dispute to arbitration. In the United States he was denied that right. Broad powers given to the Court authorized it to fix minimum wages, with the consent of the Presiden.t of 14 The American Chamber of Commerce Journal February, 1947

the Philippines, for employees, laborers and tenants. It was empowered to require production of books, statements of accounts, records, and other financial statements by both parties involved so as to make a just determination of fair minimum wages. Under the American Wagner Act the union is confronted with no such requirement when seeking increased wages or in substantiation of strikes or other actions against employers. The burden of producing files and records for the scrutiny of an interested government agency falls solely upon the employer. In the Philippine law violations of the Court orders, awards or decisions, by either the employer or the labor organization constitutes contempt of court. AlsN under the provisions of Commonwealth Act Number 103, both of the parties may appeal to the Supreme Court within. ten darys after its award, order, or decision. There is another fundamental and vital provision of the Philippine law. Pending award or decision by the Court with regard to a dispute, no employee, tenant, or laborer shall strike or walk out of his emlployment when so enjoined by the Court after hearing and when the public interest so requires; and if he has already done so he shall forthwith return to it by order of the Court. In the event of failure of the employee to return to work upon Court order, the Court may authorize the employer or handlord to accept other employees, tenants or laborers. The law also protects the employee by providing that while a dispute is pending before the Court, the employer shall not accept other employees and, unless the Court authorizes otherwise, shall permit his employees to continue in service under the last terms and conditions existing before the dispute arose. No employer or landlord is permitted to suspend, lay —off, or dismiss any employee, laborer, tenant, or farm-laborer, without just cause, from the time a laborer association or organization or group of laborers or tenants or farm-laborers has presented to an employer or landlord a petition or complaint regarding-any matter likely to cause a strike or lockout, provided the Department of Labor has been notified of the petition or complaint, or while an agricultural or industrial dispute is pending before the Court. In case of non-compliance with any award, order or decision of the Court of Industrial Relations after it has become final, the judgment may be enforced by a writ of execution or any other remedy provided by law in Courts of First Instance. Legislation enacted in 1938 fixes the legal working day for industry and business at eight hours and the normal work week at 48 hours with the provision that if an employee is required to work on Sundays or holidays, except under certain unusual circumstances, he be paid at least 25 percent more than his reregular rate. In. 1935 the Bureau of Labor under the administrative supervision of the Department of Labor was created as an indication of the ever-increasing interest in labor and labor problems. Although C'ommonwealth Act Number 103 was enacted in. 1940 the critical turn of world events soon thereafter and the encomrpassment of the Philippines in these affairs delayed for many years the test of the operation of the law. In the United States after Japan launched on its camphign o;f conquest the tremendous industrial potential of that nation was forced into reality. Nevertheless it was delayed and hindered by strikes in certain industries, labor in the early days took advantage of its new found freedom from restraint. It must be said, too, in all fairness that certain industrialists, in their fight against ever-increasing controls appeared to put self-interest before that of country. Throughout the entire war period in the United States reports to the people of labor-management disputes irked and irritated a substantial portion of the public and prepared public opinion for the swing of the pendulum away from. labor and the unions which purported to represent it as well as from domination by government agencies and control by regulations, the outstanding characteristic of which in many instances was partiality and prejudice. In the Philippines in the grim days of the occupation there was no opportunity for expression of labormanagement discord. The Japanese have never been noted for their efforts to better the lot of the employee, laborer or tenant. With the liberation, however, both labor and management in the Philippines came to the threshold of great mutual opportunity. And with the granting of independence for this nation they both stepped through the open door which, on the one hand can lead to their tremendous advantage and the benefit of the entire Philippine Republic or, on the other, can be devastating anidl even ruinous to all three. For the immediate future the Philippines has need of many workers. There is much work to be done-enough for all. By this I do not mean necessarily in the field of urban development, although we all know there is plenty of room for that. But, we must first rehabilitate those things which bring wealth to the Nation, and, by bring(Continued on page 22) I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - INHELDER INCO RPO RA TED Dealers in: PHARMACEUTICAL SUPPLIES INSTRUMENTS GROCERIES —TEXTILES im IANILA 5th FLOOR...... - TRADE' & COMMERCE BUILDING - - _ The American Chamber of Commerce Journal February, 1947 15

Manila Rises... (Continued from page 5) city engineer's office from April to December) consisted of 2,887 permits approved by the city government carrying a total valuation of P12,186,150. In 1946, the building activity as measured by value was quadrupled, a total of 2,687 city permits, being given with a combined valuation of P46,092,567-decidedly a new record in city building construction from the peso point of view. The high cost of construction was largely responsible for the large value. The above figure would probably have been still larger but for the delay in the approval of the zonification plan and the shortage of materials for reconstruction. In comparison, the prewar annual rate of construction seemed low. Total 1941 city construction consisted of 2,190 permits issued by the city engineer's office which carried a combined valuation of P5,692,470, or a monthly average of less than half a million pesos against the 1946 average of about P4,000,000 monthly. From this building activity, city government last year collected P191,184.47 in fees.. In addition, the city government collected P19,822.19 from the setting up of 2,125 sign-boards. City construction in 1946 gained impetus in the latter part of the year although the early months of the year saw activity greatly accelerMted in comparison with the 1945 rate of construction. The year's trend as shown by the figures on approved permits also showed construction as slowing down during the rainy season and picking up during the dry months. The following figures from the city engineer's office indicate the monthly rate of building activity in 1946, showing the number of permits issued by the city engineer and the total approximate cost of building: April.... May...... June...... July....... August.... September October. November December.. 387 538 541 454 483 507 535 468 435 3,355,952 4,514,310 3,921,450 3,124,040 4,926,690 2,416,170 4,658,500 4,627,390 5,037,100 The 1946 figures seem big especially compared with prewar building statistics; but they were not big enough when compared with actual requirements for new housing and store and office space to meet the increasing demands of business expansion. From a broad and long-term point of view, building experts would hardly call 1946 a year of rebuilding. Probably 1947 will witness the real beginning of reconstruction to restore Manila's skyline and make it, according to plans envisioned in the zonification blueprint, a bigger and better city than it ever Was in the past. But this job of rebuilding is expected to take a number of years, probably as long as the restoration and rehabilitation of the country's basic economy itself. The factors that would make 1947 a bigger year in building activity thian last year are apparently just the reverse lof those that held back the potential demand for full-scale rebuilding in 1946 to wit: 1. Availability of more funds for construction with the expansion and liberalization of credit facilities; 2. Availability of more tools and supplies for rebuilding, with the arrival of more machinery and equipment, hardware and building materials from the U.S. and other possible suppliers; 3. The start of payments on small claims by the war damage commission which will benefit small owners; and 4. The possibility of the zonification plan being finally completed and put into effect. If newspaper advertising of new products are on the market is any index to business and trade trends, then 1947 is likely to become the real beginning in rebuilding. A year ago, most of the display advertising in. Manila papers gave almost overwhelming emphasis to foodstuffs. Today, advertising copy shows that more products vitally needed in rebuilding have arrived and are now available. Advertising has definitely shifted to other goods the demand for which started to be evident last year and will very likely continue for some time to come. These in.clude machinery and equipment, farm and industrial tools including tractors, motor and marine engines, electrical appliances, office supplies, and various types of hardware and building materials and supplies. In 1947, too, there is likely to be a greater supply of lumber which will permit home-building requirements to be more easily met. The lumber industry is anxious to expand to a point which will not only satisfy the local demand but also provide for export, particularly to the United States which is reportedly willing to pay attractive prices in order to supplement its domestic supply which is considered hardly enough to meet the tremendous demands of the U. S. housing program. Local importers of building materials from the U.S. continue tiol be somewhat pessimistic over the prospect of obtaining adequate supplies this year because of the labor troubles which necessarily set back production schedules in the heavy industries..But the overall picture of U. S. industry now indicates a possible step-up in American shipments of industrial goods vitally needed in the rehabilitation work in war-ravaged countries. The New York Journal of Commerce, in a recent survey, predicted that American exports of heavy machinery and equipment, railway equipment, electrical appliances, textiles and a number of other items will increase in 1947. This estimate was made on the basis of 'a, peak export trade amounting to around $10 billion, against the previous prewar high of $8.2 milion in 1920. Steel circles in the U.S. also forecast a considerable expansion in the production of the metal-working industries. The significant thing about this forecast is that it was predicat ed on the possibility of continued labor troubles and material shortages. With all the possible favorable factors pointing to a substantial step-up in building activity, Manila can well look forward to another year of brisk rebuilding that is likely to be ion a more permanent basis. No. of Plans Approved January... 451 February.. 452 March..... 436 Approximate Cost P2,133,335 2,502,140 4,883,490 I. II: 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 16 The American Chamber of Commeree Journal February, 1947

List of Government Owned and Controlled Corporations and the Purposes of their Creation 1. Nationalc Development Company -It was organized to serve as an. agency of the Government in the furtherance of its economic policies and to promote and maintain a sufficient general production by an efficient coordination of the productive forces of the country and to secure a stable market for Philippine products. 2. PhilippSne National Bank-It was created to engage in the general banking business and to serve as the official depositary of the funds of the Government and its instrumentalities. 3. Manila Railroad Company - This is a corporation organized for the purpose of constructing, maintaining and operating a railway line. 4. Philippine Charity Swieepstakes Office - This is a public corporation created by a special act of the Legislature for the purpose of directing and managing the holding of charity horse race sweepstakes. 5. National Coconut Corporation -This corporation was organized for the purpose of establishing, keeping, maintaining and operating drying plants or copra driers or coconut centrals with a view to adjusting the coconut industry to a position independent of trade preferences in the United States, and to provide facilities for the better curing of copra products and the proper utilization of coconut by-products. Fibers Corporation-It was organized to insure a permanent, sufficient and balanced production of abaca and other fibers for the requirements of the local industry and for exportation and to stabilize the price of abaca and other fibers. 7. Government Service Insurance System - This office was created to provide an insurance system for government employees in order to promote their efficiency and welfare. 8. Metropolitan Water DistrictIt was organized for the purpose of furnishing an adequate water supply and sewerage service to the inhabitants of the City of Manila and outlying municipalities. (Continued on page 20) 6. National A aca and Other I L Every Month the JOURNAL brings you important statistics and informational articles Subscribe Now! p5.00 for 12 issues When the sun goes down And the streetlights blink Then's the time For a friendly drink! I 86.8 Proof-672% Grain Neutral SpirH 64a9 viK-Uoo-AWFlV 0 Glenmore Distilleries Company Louisville, Kentucky A BETTER BLEND FOR BETTER DRINKS Sole Importers SORIANO TRADING COMPANY A. SORIANO y CIA. General Managers M.R.S. Bldg., 5th Floor -,Manila- Tel. 2-79-61 AA SORCO AAAAAAAAAAAAAA A A _. A A - --. -- --- — - -- ---- ~ -- - -- The American Chamber of Commerce Journal February, 1947 17

Manila Stock Exchange Report-1946 Pre-war Closing Opening High LISTED STOCKS Low Close Banks and Insurance Bank of the Philippine Islands.............................. P C hina B ank............................................... ] Peoples Bank.............................................. Filipinas Cia. de Seguros..................................... The Insular Life Assurance Co. Ltd......................... The Philippine Guarant.................................... Commercial and Industrial The Manila Wine Merchants.............................. P Marsman and Co. (Common)............................. Marsman and Co. (Preffered)............................ Pampanga Bus Company..................................... Philippine Racing Club..................................... San M iguel Brewery...................,.......... 04.00b P 65.00 P L05.00b 70.00b 30.00b 30.00b 26.00b 80.00 50.00 13.00 65.00 P 110.00 50.00. 15.00 3.05 P.90 1.00 3.70 1.82 335.00: 50.00 80.00 50.00 13.00 2.50.40.45 1.20.90 150.00 P 58.00 110.00 50.00 15.00 6.00b 16.OOb P 3.05.85.95 1.90 1.06 335.00 1.20b 1.50a.50a 1.32.57.35.00 P 2.50 P.45.45 3.50 1.70 150.00 S u g a r Central Azucarera de Bais................................. Central Azucarera de La Carlota........................... Central Azucarera de Pilar................................ Central Azucarera de Tarlac................................ North Negros Milling Co...................................... Pampanga Sugar Development Co.......................... Victorias M illing Co........................................ Mining Antamok Goldfields Mining Co.............................. Atok Gold Mining Company.............................. Baguio Gold M ining Co....................................... Batong-Buhay Gold Mines, Inc............................ Big Wedge Mining Co.(*).................................. Consolidated Mines, Inc...................................... I X L M ining Compan..................................... Lepanto Consolidated Mining Co.......................... Masbate Consolidated Mining Co............................ Mindanao Mother Lode Mines, Inc.......................... San Mauricio Mining Co.................................. Surigao Consolidated Mining Co......................... P400.00a P500.00 P 80.00a 75.00 80.00a 80.00 65.00a 65.00 100.00Oa 23.00a 25.00 100.00a 100.00 P 0.0525 P.53.16.0042.45. 0057.20.215.08.54.155.205 0.07 1.20.20.007 1.10.007.22.22.15.75.65.39 530.00 P500.00 105.00 75.00 95.00 80.00 90.00 65.00 25.00 21.00 100.00 100.00 P 0.07 P 0.03S 1.50.60.22.07.011.00 1.60.70.017.00(.27.08.40.12.16.07.96.48.65.27E.41.27 P521.00 102.00 100.00 80.00 21.00 100.00 5 P) 56 I 0.045 1.16.08.007 1.10.015.08.385.075.64.275.32 OVER THD COUNTER PREVIOUSLY LISTED STOCKS Conmmercia l-Industrial-Szgar Jai Alai Corporation....................................... Bacolod-M urcia........................................... Talisay-Silay............................................. Mi n i n g Acoje Mining Compan..................................... Balatoc Mining Company................................. Coco Grove, Inc............................................ Demonstration Gold Mines, Ltd............................. East Mindanao Mining Co. Ltd............................ Itogon Mining Compan..................................... Paracale Gumaus Consolidated Mining Co................... Suyoc Consolidated Mining Co.............................. Ufited Paracale Mining Company........................... P 8.30 P.315 4.00.065.035.06.23.235b.13.20 P13.00 10.00 6.00 P.32 5.00.055.03.22.22.105.225 P15.00 P10.00 11.00 9.00 6.50 6.00 P.43 P.18 6.00 3.00.0725.03.03.03.24.085.22.09.11.05.28.10 P15.00 9.00 6.50 P.20 3.60.037.03.11.11.0525.135 MISCELLANEOUS Benguet Consolidated Mining Co............................. Far East Oil Development Co............................... Manila Jockey Club.............................. a Asked price; b = Bid price *New Stock P 3.30.22 1.60 P 5.00.35 1.80 P 7.10 P 3.20.50.18 3.00 1.80 P 3.90.50 2.80 18 The American Chamber of Commerce Journal Febrotry, 1H7

Stock Market... (Continutcd from IpaCe ') cidently, for chartists, the low point of our Mining Share Average for 1945 was 21.15). The accompanying chart shows the year's fluctuations as plotted on a weekly closing basis. As regards individuals issues, the outstanding performers were Atok, Benguet Consolidated, Big Wedge, Lepanto, Mindanao Mother Lode, San Mauricio and Surigao. All of these issues ended the year substantially above their prewar close. COMMERCIAL AND INDIVIDUAL The feature of this group has been the sustained demand for San Miguels, resulting in a spectacular rise in these shares. This reflects the remarkable increase in demand for the Company's products. Philippine Racing Club shares have been actively traded all year in a wide price range. Jai Alai stock has been in demand latterly, and the years closing sale of P15 as compared with P8.30 in December 1941 reflects the public estimate of this corporation's potential earning power when 'Quifielas' will again be enjoyed by Manilans. SUGARS Tlhe past year has witnessed a welcome return of investment demand for shares of this group. All active issues are in good demand at higher prices than prewar thus reflecting optimism on the future of the industry. BANKS AND INSURANCE With the exception. of China Banks, all issues in this group have lost ground marketwise as compared with 1941. Until the status of occupation payments is decided, losses arising therefrom cannot be accurately determined. Whatever the final decision in the matter may be, it appears certail that. tle entities illnvolved have s'uffered substantial losses as a result of the Japanese occupation. However, past operating records of these corporations suggest that in the years to come their war losses will be recovered with comparitive case. The year's closing bid quotations hardly reflect the market for these stocks, as there are no material sellers except at much higher prices. NEW AIR ROUTE The new 'Northwest Passage to the Orient" was recently inaugurated by the Northwest Airlines. A new DC-4 plane was the first to fly the new route, arriving in Manila on January 15. The plane landed at the Manila international airport at Makati after completing its commercial survey flight. Among the passengers on this first flight over a new route were Donald J. King, vice-president of the Northwest Airlines, two CAA representatives (Richard D. Schall and Cady R. Bullock), F. G. Jarvis, civil air attache of the United States in Shanghai, and Donald E. Bateman, Manila oldtimer and ex-internee at Sto. Tomas. Bateman is district traffic manager for the Manila office of the Northwest Airlines. Before the war he was passenger agent of the Everett Steamship Co. in Maiila. Mr. King explained that the new route is by way of Canada, Alaska, Tokyo and Shanghai. The flight by this route from Minneapolis, Minnesota, to Manila can be covered in 44 flying hoursi Northwest Airlines, according to Mr. King, was organized by a group of U. S. army flyers who operated from Alaska to Asia during the last war. They came to the conclusion. that the new route is more convenient than the customary route through Honolulu and across the South Pacific. Northwest Airlines has announceed that it expects to start scheduled flights over the new route by May 1. The schedule calls for three flights a week. Other arrivals by this first survey flight were: Chester M. Brown, Thomas W. Cumming, Robert A. Ebert, James J. Fauteux, Waldo L. Hollingsworth, Lewis H. Larson, Paul I. Linden, George D. Linklater, William McKnight, Ralph E. Nelson, Alroy D. Piepgras, Ronald E. Stelziz, Barnett H. Stevens, John Woodward, Ernest Yoris and Eugene Zimmerman of the Shell Oil Co.. I Manila's An Inferno!? "The city today, especially the downtown district, is an inferno of dust."-Ed. Manila Times Parents who can afford it should'nt risk their health... Their life and the health of their beloved ones, living in the city. They should live where dust is "ignored". We still have homesites for sale ONLY P4.50 per sq. m. and up UNIVERSITY, ESPANA, QUEZON CITY, CAMP MURPHY and NEW MANILA. 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 A. C. HALL & CO. MEMBERS MANILA STOCK EXCHANGE COMMODITY EXCHANGE, N. Y. NEW YORK COFFEE & SUGAR EXCHANGE PHILIPPINE & U. S. SECURITIES COMMODITIES INSULAR LIFE BLDG. MANILA ~ — *- *- *~ *- - ~ | The American Chamber of Commerce Journal February, 1947 19

List of Government... (Continued from paJge 17) 9. National Power CorporationThis is a public corporation created for the purpose of undertaking the development of hydraulic power and the production of power from other sources. 10. Rural Progress Administration -This corporation was organized to promote small land ownership and to improve the living conditions and the general welfare of the rural population; to acquire big landed estates and to subdivide the same into small lots for resale or lease to bona fide occupants or in the absence thereof to persons qualified to acquire public lands. 11. Philippine Relief and Rehabilitation Administration-This office was organized as an agency of the Government to deal with UNRRA and other relief agencies; to plan, coordinate and administer the activities for the relief of victims of war and other calamities; to coordinate the procurement and equitable distribution of supplies and equipment for relief and rehabilitation and to study.and formulate plans for the rapid rehabilitation and reconstruction of the Philippines in agriculture industry, trade and commerce. 12. National Trading CorporationIt was organized to purchase, store, provide storage facilities for foods, clothing, fuel, fertilizers, chemicals, building materials, implements, machineries and equipment required in agriculture and industry and other articles of prime necessity and to sell them in the manner and method customarily followed in trade to prevent scarcity, monopoly, hoarding, speculation, manipulation, private control and profiteering. 13. Metropolitan Transpor t a t i o n Service-This was created to coordinate, maintain, and operate the passenger bus service formerly established by the Economic Control Administration and to avail and make use of the equip ments and supplies turned over to the then Commonwealth Government by the United States Army. 14. National Tobacco CorporationThis was established to promote effective merchandising of leaf tobacco in domestic and foreign markets; to establish and maintain balance of production and consumption of leaf tobacco and such marketing conditions therefor, as will insure living wages to tobacco farmers and laborers; to improve living and economic conditions of tobacco farmers and laborers by gradual and effective correction of irregularities in the industry; and to improve quality of leaf tobacco. 15. National Land Settlement Administration - It was organized to facilitate the acquisition, settlement and cultivatior of lands; to encourage migration to sparsely populated regions and to facilitate the amalgamation of the people in different sections of the Philippines and to develop new money crops to take the place of the present export crops which may suffer from the loss of preference which they enjoy in the American market. 16. National Cooperative Administration-This is an office created for the promotion of cooperative enterprises. 17. National Housing CommissionThis was created for the purpose of acquiring, developing, improving, constructing, leasing and selling of lands and buildings or any interest therein in the cities and po-.pulous towns with the object of providing decent housing for those who may be found unable otherwise to provide themselves therewith. 18. Surplus Property Commission This was created to take charge of the acceptance, administration, sale and disposition of surplus property acquired by the Government of the Republic of the Phili~ppines from the Government of the United States. 19. Cebu Portland Cement Company-This corporation was organized for the purpose of engaging in the manufacture, development, exploitation and sale of cement, marble and other kinds and classes of building materials and the processing or manufacture of materials for any industrial or commercial purposes. 20. National Rice and Corn Corporation - This corporation was organized to aid in the rehabilitation and stabilization of the rice and corn industry in the Philippines through the maintenance of stable price for said commodities, the prevention of speculation in the marketing thereof and the exploitation of consumers. 21. People's Homesite Corporation - This was organized to ameliorate the living conditions of the people by stimulating home building and thrift; to established modern residential communities and to aid people of moderate means to acquire a lot and a house. 22. National Food Products Corporation - This corporation was organized to engage in canning and preservation of fish, meat, vegetables, dairy products, fruits and other foodstuffs and to secure stable market for the manufacture thereof in the Philippines or abroad; to conduct experiments in connection with the Iproduction, canning and preservation of food products; to manufacture cans and other containers and to finance the producers of raw materials needed for this enterprise. 23. Rehabilitation Finance Corporation - This corporation was organized and took the place of the Agricultural and Industrial Bank and whose main business is to grant loans for the rehabilitation, establishment or development of agricultural, commercial, or industrial enterprises including public utilities and, to grant loans to government owned and controlled corpo 20 The American Chamber of Commerce Journal February. 1941

rations and political subdivi_ sion for their rehabilitation. 24. Manila Hotel Company _ This is a subsidiary of the Manila Railroad Company. It was organized for the Purpose of engaging in the business of operating, conducting and, managing hotels and hotel properties. an ( 25. National FOtear Corporat i This corporation was or ganized to promote the local e footwear industry It is a subsidiary of the National th Development Company. pc 26. National Warehousing Corpora.n-a tion __ This corporation was grals organized to establish bonded warehouses in different parts f the islands. This corporas- a tion is not in operation, now. ext Editorial.. (Continued onr..^. been i v~~...., o. Io) p o mpleted yet, but definite Progress has been made There i i * anila at the present time an Amerhcan Commission which is studyin Problem in preparation, of th concluding of a convention between the two countries to govern the taxing of Americans in the Philippines and Filipinos in America. This 'ommission, which is assisting Ambassador McNutt, is open to sug. restions, written or oral, by interest_ d parties. l Since the American Army released le Post Office building to the local >stal authorities, there has been a 'eat improvement in the handling d distribution of mail. Th tle aph service of the Post office has o been extended and improved. Although the Chamber's activities a general bureau of information e necessarily continued to some ent during 1946, they were not as linant as in 1945. The Chamber still called on during the year in ew to furnish proof of death to le in America of friends and rees in the Philippines, and certies of births of children now in United States who were born in (Continued on page 22) n\ ZV. Insular Sugar Refi/jing Corp ra-tion Pe in Coro on This corporation was organized to engage in the refinery of ugar. It is a subsidiary of the Nationt al Developrent Company. MThe An meri can Chamber of f or F ebruary, 1947 fCom erce Journal

Labor in the... (Continued from page 15) ing wealth to the nation promote the well-being of all the citizens. We must work to produce. We must produce the things for which we can receive payment in the world's markets. These things are not only the articles and produce of industry, but are the products of the natural resources of the Philippines. As we progress in the production and development of those things which the world will come to us to buy, we can give time, effort and investment towards the rounding out of the national economy. In return for our exporting of increased quantities of the things which the Republic can produce, we shall secure foreign exchange. With a favorable trade balance on the export side, we can look to the importation of greater quantities of the manufactured articles and things which we do not have here. Increased amounts of these imported goods in our markets will bring prices down. A downward trend in prices means, a lessening in the terrific inflation to which we have been. exposed in the mere cost of living. Management and employers in general are unable to meet the top demands of workers under an inflationary condition unless they force still higher the inflationary spiral, which, in the end results in disaster for all. But, management and industry and labor can, meet the demands of the worker by reducing prices through increased production. It is again, I believe, a basic matter of the operation of the law of supply and demand. I believe that labor is entitled to a living wage. I believe further that it ought to be possible for a worker to secure to himself a decent and adequate scale of living on the basis of his earnings. The inflationary way of making these ends meet is to raise wages to try to meet rising prices, but the two never can be equalized because in the final analysis prices will always remain higher than wages. The alternative, 'as I have said I believe, lies in producing enough to bring prices down through normal operation of the laws of economics. At the same time consideration must be given to the fact that the prices of manufactured articles here are conditioned, in part, by the basic cost of production at the place of manufacture, plus the cost of transporting them to our markets. This would seem to indicate, on the basis of price indexes in the United States and in other industrial countries, that some increase in costs is going to Prevail regardless of local factors. If the worker is to be paid more for producing a given article it follows that the manufacturer is going to have to charge more for it. The same is true here. If agricultural workers are to be paid more for growing rice, then. the price of rice in the market is going to be higher than it was before the war. I believe a, basic upward adjustment of our wage structure is in order. I do mean this on the basis of emergency bonuses to compensate for temporary increases in living costs, but on a permanent basis. This is an axiom which has been developed out of the experience of other countries as they worked their way up the scale of civilized progress. We all of us, I believe, would prefer to see this matter worked out without upheaval. At this time-as never before-we in the Philippines cannot afford to have a situation, already delicate, further disturbed. It is a time for understanding on the part of both employer and employee. In terms of human progress there is no such thing as the good old days. Rather than lo'ok backward, we must all look forward, and in looking we must also work towards a better estate for everyone. In this country of vast, untapped natural resources there are ample good things for everyone. But none can have them unless all work for them. Labor must realize that industry, which after all had the basic money investment here, has been hard hit, yes, in many cases prostrated. On the other hand, employers must realize and understand that the mass of the people who work for a living have als6 lost, many of them far more in proportion than the employer group. I do not mean to weigh one loss against the other in any sense whatsoever. I appeal only for mutual understanding of the problems that confront both groups. Labor cannot be expected to work for less than the cost of his daily food and other normal expenses of living. If the Philippines will attain the goal of self-sufficiency in fcod production, the first great triumph of the new Republic will have been accomplished. Labor, on the other hand, cannot expect sudden and unwarranted gains, sudden social and economic benefits from an economy which is struggling hard to arise in the face of great industrial war losses or from a government which is having a difficult time in making both ends meet. To make unreasonable demands will not only delay solid: gains for labor, but it may well negate the possibility iof labor achieving them. It will serve to promote dissension among the Philippine people. The example of American experience where middle class people turned on labor is only too vivid and recent. Within the framework of present Philippine labor legislation there are ample safeguards for both employee and employer. It is the high privilege of both labor and capital to make them work for the benefit of this new Republic. What the employers and the government to do and for labor and wrhat labor does to itself may be the most important factors in the future economic development of the Republic of the Philippines. Editorial... (Continued from p. 21) this country. People in the United States continued to ask the help of the Chamber in locating friends and relatives in the Philippines, which help was given whenever possible. The general lines of the Chamber's activities are indicated in the discussion of developments and conditions in the first part of this report. Members have been apprised specifically of these activities by the 107 Bulletins issued by the Chamber during the year. In addition numerous correspondence has been handled with American man.ufacturers and exporters seeking representation in the Philippines. The Chamber donated to the American School the sum of Six Thousand Pesos (P6,000.00) by relinquishing that sum from the School's indebtedness to the Chamber lof P12,000.00. The following new members have joined the Chamber during the year: 1. American Factors (Phil.) Inc. 2. Armour & Company 3. Bataan Motor Corporation 4. Liddell & Company, Inc. 5. Nestle's Milk Products (Export) Inc. 6. Neuss, Hesslein Company, Inc. 7. Peter Paul Philippine Corporation 8. Philippine Industrial Equipment Co. 9. Philippine Motors, Inc. 10. Andres Soriano 11. Universal Trading Company, Inc. 12. John R. Wagner The By-Laws have been revised during the year and will be published as soon as the Chamber's reconstituted incorporation papers have been approved by the Securities and Exchange Commission.. 22 The American Chamber of Commerce Journal February, 1947

An Iron and... (Continued from paea, 13) nesota) where the iron ore is hauled 500 miles, by Water, to Cleveland, Ohio. Aside from iron and steel, large chemical works are needed for the manufacture of all kinds of fertilizers, necessary to enrich the soil for the various crops in the Philippines. Such installations would require about the same amount of capital as the iron and steel plant. The average rice production per acre in Japan is stated to be three times that of the Philippines. This is largely due to the constant use of fertilizers. For example, it has been found in Japan that every ton of phosphate rock imported and processed into fertilizer, increases the yield in wheat and rice from two to six times its former production. The most commonly used processed fertilizers in Japan are ammonium nitrate and ammonium and phosphoric sulphate. Undoubtedly, a number of Japanese chemical plants will be declared surplus, and the Philippines might have the rare opportunity of securing plants for the manufacture of various fertilizers. Also, soap, lye, caustic soda, chlorine for water purification, and many other useful articles. For centuries, little or no fertilizer has been used by agriculturists in the Philippines. The soil generally, has become impoverished, and the production per acre is low. More recently, small amounts of artificial fertilizer were imported from foreign countries. If fertilizers can be produced in quantity at a low cost and their use made obligatory, the increased yield per acre would go a long ways towards solving the food problem and agrarian unrest. Report on the... (continued from page 8) The National Development Co. has also started to open the Malangas Coal in Zamboanga. Over P300,000 has been released for this purpose and they expect to produce next year. Mining in Semirara coal fields is being resumed. The Sinukuan Coal is working its holdings aon the Island. Considerable interest in the mining industry of the Philippines has been shown by some capitalists from the United States. Represent'atives of some mining interests in the States are examining mining properties in the Islands with the hope of finding property to be either bought outright or financed and operated on a royalty or profit sharing basis. Among those now examining properties are: The Panaminas Inc., Philippine-American Corporation and Col. Tallant of Freeport Sulphur. EXPORT CONTROL RELAXED The government is gradually relaxing control of the exportation of commodities for which there is no longer much public demand or the supply of which now exceeds n3ormal domestic requirements, a Malacaian spokesman said on January 21. This official revealed, however, that the export ban on critical commodities or articles such as building materials, rice and popular brands of textiles will continue for a long time in order to provide adequate protection for the consuming public. The government has stricken from the long control list certain unpopular classes of textiles such as those used for draperies, ready-made dresses bought at high prices from abroad, cheap brands of cigarettes, chemicals and medicines certified by the bureau of health to be not needed here, according to the spokesman. Some surplus materials which were sold by either the foreign liquidation commission or the surplus property commission such as large tractors were also dropped from the control list, it was revealed. Malacanian has turned down persistent pleas of lumber men for the lifting of the ban on lumber because this material is greatly needed in the rehabilitation and reconstruction of the nation, the informant said. The government is closely watching the trends of domestic supply and demand on controlled commodities. If it finds that there is a substantial supply of a certain product or there is no more demand for it locally, the ban will be lifted so that the owners could sell them abroad. In this way, it was pointed out, goods that otherwise would rot here could be disposed of profitaably. DIVISION OF STANDARD CREATED On January 15, President Roxas released a directive creating a division of standards. The new division was placed in the bureau of commerce and will be under the administrative control of Director of Commerce S. R. Mendinueto. Director Mendinueto explained that the purpose of the new division is to aid the rehabilitation and future. expansion of Philippine export trade. By effecting a dependable system of standardizing Philippine export products, it is anticipated that the local exporter will find it easier to find customers abroad. "We cannot hold any market with sloppy products," explained Mr. Mendinueto. "The imperative need of our export trade is therefore the standardization of all export commodities and the exclusion. from. export shipments of those article or products falling below a given set of standards. Only thus will Philippine products retain the goodwill not only of the American market but of such other foreign markets as they may secure in the future." The main function of the new division will be to classify all export commodities. However it will also make surveys of foreign markets to find out what particular products are desired in each and the qualities preferred. - I I 4 b-E1-l0W Sole Importers SORIANO TRADING CO. A. SORIANO y CIA. General Managers M.R.S. Bldg. Tel. 2-79-61 The American Chamber of Commerce Journal February, 1947 23

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........ 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....................... Balancs in clearing account.......... Other resources not included above..... TOTAL RESOURCES...... Week Ending Nov. 23, 1946 P184,804,112 39,863,434 50,032,685 39,688,867 149,246,217 173,491,713 34,500,000 155,737,390 P827,364,418 Week Ending Nov. 29, 1946 P185,921,612 39,863,146 Week Ending Dec. 7, 1946 P188,303,557 39,910,480 46,716,701 38,068,650 160,801,534 169,673,645 33,500,000 154,177,277 P828,722,565 56,208,999 42,568,405 166,263,645 159,811,182 37,500,000 153,982,275 P844,548,543 Week Ending Dec. 14, 1946 P188,924,868 39,906,914 62,705,444 41,837,976 169,295,987 154,648,872 36,500,000 155,545,100 P849,365,161 Liabilities Demand deposits..................... Savings deposits..................... Time deposits....................... Deposits of public funds.............. Due to Head Office and/or lother 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..... P226,274,110 118,754,269 9,848,601 138,586,882 P221,202,267 120,161,640 9,978,344 144,021,982 53,098,509 33,414,400 16,021,109 2,868,859 34,500,000 7,618,051 186,379,628 P827,364,418 53,326,556 33,414,400 16,168,819 3,068,721 33,500,000 7,913,347 185,966,489 P828,722,665 P225,134,231 122,098,458 10,060,141 148,536,891 52,112,777 33,414,400 16,281,259 2,906,814 37,500,000 9,539,724 186,963,845 P844,548,543 P231,727,082 123,857,584 10,371,125 146,188,462 48,135,108 33,414,400 16,222,833 4,428,335 36,500,000 8,550,017 189,970,215 P849,365,161 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 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 15,832,676 15,702,541 2,136,713 8,541,506 4,616,835 88,028,755 13,730,732 1,364,778 4,013,875 7,582,254 P 13,564,564 2,295,161 11,936,252 2,165,214 3,910,506 4,375,277 79,840,968 11,248,510 1,310,431 4,025,063 7,582,254 P 13,440,069 250,000 14,378,421 2.397,055 9,733,394 2,550,101 90,210,387 16,684,880 1,338,232 4,038,176 7,582,254 P 17,057,652 889,525 14,454,691 5,769,571 7,901,514 5,140,592 102,631,328 15,503,477 1,351,839 4,128,513 7,582,254 --- i 24 the American Chamber of Commerce Journal February, 1947

C/) -Q Q In

4UL 1, 194 THE AMERIC, COMMERCE Mayflower Studio Photo Prepatrinlg abaca fiber for rope spinning in a Manila factory-See page 6 V o.,XXII, No. It Vot. XXII, No. a April, 1947 50 Centavos

INHELDER INCORPORATED Dealers in: * PHARMACEUTICAL SUPPLIES * INSTRUMENTS * GROCERIES * TEXTILES 5TH FLOOR TRADE & COMMERCE BLDG. TEL. 2-65-48 I L that of...f Bottled in the U. S. A. Fine American Whiskey ~ Preferred throughout the Americas Sole Importers SORIANO TRADING COMPANY M.R.S. Bldg. - Tel. 2-79-61 - Manila AA SORCO -- FLEISCHMANN'S 'sLn^^ i - - FAR EAST AMERICAN COMMERCIAL CO., INC. * I M P O R T E R S ~ WHOLESALERS EXPO R T E R S STEEL OFFICE FURNITURE * OFFICE EQUIPMENT & SUPPLIES GENERAL HARDWARE * MACHINERY * TEXTILES * COSMETICS SHOES * TOYS * NOVELTIES HOSIERY * PLASTIC & LEATHER BELTS * PAPERS, ETC. MAIN OFFICE THIRD FLOOR, YUTIVO BLDG. DASMARIRAS, MANILA TELS. 2-85-86 & 2-85-87 il * & miSTXiLLE DRY GIN 90 PROOF DISTILLED FROM AMERICAN GRAIN.*fll a' * ""."rI,, 'w(,, AA SORCO Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2-79-61 --

COMMERCE IAL 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. L -~ American Chamber of Commerce of the Philippines DIRECTORS F. H. STEVENS, President John F. Cotton J. L. MANNING, Vice-President Samuel Garmezy FAY C. BAILEY, Treasurer C Miller E. G. Baumgardner rr Max Blouse J A. Parrish LEON ROSENTHAL, Executive Vice-President B. GABERMAN STOCK BROKER 328 Dasmarifias Member MANILA STOCK EXCHANGE VOL. XXII, No. 10 April, 1947 Table of Contents Page "Capitalistic Exploitation" by A.V.H. Hartendorp... 5 Manila Rope.................................. 6 Bureau of the Census and Statistics.............. 8 National City Bank of New York................. 9 Economic State of the Nation by Dr. Leon Ma. Gonzales................... 10 The Stock Market by A. C. Hall & Co........... 12 Estimated Income of the Philippines (1939 and 1946) 16 Experts Join Advertising Firm................22 Statistics on Banking Resources, Liabilities and Miscellaneous Activities.................... 24 The American Chamber of Commerce Journal 3 April, 1947 I CODES: A B C 6 ED. BENTLEY 2ND ED. CABLES: "IPEKDJIAN" IPEKDJIRn mERCHAnDISlnG CO. IMPORT- EXPORT 312 AYALA BLDG. (NAT. CITY BANK BLDG.) MANILA, P. 1. '

A SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and EXCLUSIVE DISTRIBUTORS of HIGHEST-PURITY OXYGEN * and ACETYLENE GASES CNATIONAL" CARBIDE * WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS of "SUPERFLAME" BOTTLED GAS and "TAPPAN" GAS-STOVES with Complete Installation and Service Facilities A OFFICE and PLANT: Byng St. Mandaluyong (near Mandaluyong Bridge and Shaw Blvd.) Tel. 8-72-80 _= _ I ED. A, KELLER & COMPANY, LTD. GENERAL MERCHANTS-INSURANCE AGENTS 3rd FLOOR WISE BUILDING 178 JUAN LUNA, MANILA TEL. 2-71-05 Agents for: The Acadia Co., Inc., New York. American Lead Pencil Co., Hoboken, N. J. American Safety Razor Corp., Brooklyn, N. Y. American Window Glass Co., New York Ames Company, Inc., Elkhart, Indiana Bristol Laboratories, Inc., Syracuse 1, New York. The Coleman Lamp & Stove Co., Toronto and Chicago Central Paint Varnish Works, Brooklyn, N. Y. Columbia Ribbon & Carbon Mfg. Co., Inc., Glencove, N. Y. Eterna Watch Company, Grenchen, Switzerland Felton Chemical Co., Inc., Los Angeles, Cal. S. C. Johnson & Son, Inc., Racine, Wis. The Maggi Company, Kemptal, Switzerland Lab. Chima S. A., St. Gall, Switzerland Miles Laboratories, Inc., Elkhart, Indiana Pierce Watch Company, Bienne, Switzerland Robapharm Soc. de Lab., Basel, Switzerland Roger & Gallet, Paris-New York Ulysse Nardin S. A., Le Locle, Switzerland The Wander Company, Chicago, Ill. General Agents for: Franklin Fire Insurance Company of Philadelphia Great American Indemnity Co. Insurance Company of North America Phoenix Assurance Company Ltd.,.of London Samarang Sea & Fire Insurance Co., Ltd. Switzerland General Insurance Co., Ltd. UNDERWRITING: FIRE MARINE MOTOR CAR WORKMEN'S COMPENSATION I N S U R A N C E 4 The American Chamber of Commerce Journpl April, 1947

"Capitalistic Exploitation" By A. V. H. Hartendorp,Those opposed to the ratification of the constitutional amendment providing for an. American-Filipino parity of certain rights in the development of the natural resources of the country and the ownership of public utilities, have called atten.tion to the dangers of what is called "capitalistic exploitation". These are semantically dangerous words. They are vague in meaning, yet are intended to imply a selfish and anti-social utilization of the natural resources even to the point of, first, waste, and then exhaustion; general abuse and enslavement of workers; and, ultimately, general extortionism and universal despoilment. Surely, nothing worse could be imagined, but the terms are selfcontradictory and nothing as bad as is thus conjured up could even get a start anywhere in the world. Sociologists recognize, besides the family and the religious institutions, only two other great institutions in the life of mankind, - the governmental and the economic. Economic institutions are indeed fundamental in importance, hence our great preoccupation. with them. It should not be a matter for surprise that the people of the Philippines are showing such a keen interest in the proposed legislation because it is in fact very closely related to the economic future of the country and to the success of its government and even, to no inconsiderable degree, the very biology of the race. It is a good thing for the Philippines that public attention should thus be focussed on the fundamentals of the economy of the coua1 -try at the outset of the now politically independent Republic. No nation ever achieved prosperity and greatness without strongly developed economic institutions, which only can guarantee to the population an abundant life. There are many grave questions concerning the economic institutions of the modern world, their relation to government, and their efficiency. While historically these have developed under a system of relatively free enterprise under competitive conditions, an important new departure in government-owned and controlled, economic institutions has been developing for a number of decades in Soviet Russia. This development has achieved considerable success and is being watched with great interest everywhere. Midway, if not transitional, systems between individualistic and socialistic institutions are evolving in the Scandinavian countries and within the British Empire. Yet up to the present, the established economic systems, the norm for the greater part of the world, is the so-called capitalistic system. It is also a fact that the greatest and most powerful, are the capitalistic nations; that they have reached the greatest heights in production both in the extractive and the manufacturing industries; that in these nations the masses of the people are the best housed, the best clothed, the best fed, and,- most vitally important, are the freest and the most secure in the enjoyment of their individual and civil rights. The competitive feature of the capitalistic system should not be overemphasized, for while there is competition, the much more essential and significant feature, under capitalism as well as socialism, is cooperation. Rivalry, opposition, conflict, - as exposed in such phenomena as bankruptcies and strikes, attract especial notice because of their comparative rarity. Successful adjustments between various branches of industry and various enterprises, and harmonious cooperation between capital and labor for long stretches of time, tend to be given less significance than should be the case. All of the various economic systems so far developed, - capitalistic, fascistic, cooperative, socialistic, and communistic, resort to the mass production methods which the improvement of agricultural methods and the invention of power machinery made possible. Out of the scarcity economy of the past, marked by unavoidable poverty, misery, starvation, and wholesale death, the world has entered into an economy of abundance, barring war, and this is having the effect of making ideological differences as to rival forms of possible economic organization much less important than they were in the past. The eradication. of poverty, abundance for all, now seems possible under whatever economic and governmental systems that may be worked out in various parts of the world, or ultimately, perhaps, for the world as a whole. It would be futile and foolish to deny that modern capitalism brought in many evils as well as much good, especially when it first began to take form. Many of these evils have gradually been eliminated. Undue concentration. of economic power, great inequality of income, extensive unemployment, recurring depressions, - these are evils from which the capitalistic world still suffers, but that they are inherent in. the system and not possible of correction has not been proved. Great advances have already been made within the system in government control of monopoly, in the equalizing of income through the graduated income tax and minimum wages, in unemployment, accident, and old-age insurance, and in government control of production and prices. In these ways, the capitalistic nations have departed from the theoretical purely individualistic laissez-faire system, - which, in fact, never existed anywhere. The probabilities seem to be that the capitalistic and socialistic systems will gradually approach each other and that ultimately some combination of the two will be effected and become general. "Scientific" communists have never condemned capitalism outright, but have recognized it as a necessary stage in the economic de-. velopment of the world. What, however, still seems to be the 'more general opinion of mankind is that the individualistic principle in human society is a most precious one, that the communistic principle can be carried too far, and that great concentration of power in any government is fraught with the most terrible danger to the people of any nation. Until the invention of some mor( effective system of checks and halances than anything devised so far, no people who prize their liberty and their individual rights can favor any form of totalitarian government. Just as there is safety for the individual and society in the separation of Church and State, so there is safety in at least some degree of separation between governmental anld. economic institutions, although the governmlent should of course be supreme so long as it is a government of the people, for the people, and by the people. It is of special importance in the Philippines that the mother country, America, is a capitalistic democracy and the greatest of them all. It is hardly possible that the Philippipes could follow any other path than that on which her feet are already set. The Philippines seems happily des(Continued on page 13) The American Chamber of Commerce Journal April, 1947 6

Manila Rope Never one of the country's great industries, the rope and twine, or cordage industry of the Philippines nevertheless has two characteristics that give it particular interest. The first of these is that though it has always been largely an export industry-in 1940 approximately 84% of the total output was sold abroadit has never been as dependent on the American market as other export industries of the Philippines. Less than half of the total shipped out of the country in 1940 was sold to the United States. That year, the total export amounted to 10,400,000 kilos, which American buyers, limited by quota, took, 6,000,000 pounds (2,700,000 kilos), or 26%o of the export total. The total manufacture of cordage in the Philippines in 1940 amounted to 12,300,000 kilos, the disposition of which was as follows: 20% sold to the United States, 64%/o sold to other countries, leaving 16% unexported. By directing our attention to that 64% (or for 1940, 7,800,000 kilos) sold to other countries, we may note the second interesting characteristic of this industry. The market for Manila cordage was a genuine world market. To perhaps a greater extent that was true of any other product manufactured in the Philippines, Manila cordage penetrated all parts of the world. The Yearbook of Philippine Statistics (1940) lists 51 countries as sharers in the 7,800,000 kilos exported to countries other than the United States. Heading this list was the Dutch East Indies with 970,000 kilos. Prior to the war, the industry was composed of four factories, all of which were located in Manila. They were the Johnson-Pickett Rope Co., the Manila Cordage Co., Elizalde Rope Co. and the General Manufacturing Co. The last of these was comparatively unimportant, as disclosed by its export quota to the United States of only 28,000 pounds. Throughout the occupation, the Japanese kept the Elizalde and Manila Cordage factories in operation. But the other two were completely dismantled-the Johnson-Pickett (the control of which had been purchased by the Elizalde interests before the war) and the General. This left the Philippines with two modern rope factories, Manila Cordage in Paco and Elizalde in Binondo. These two plants emerged from the destruction of war relatively unscathed. Looters had removed some of the light machinery, such as hand and machine tools, motors, belting, etc. But buildings and heavy equipment were practically intact. With the replacement of some of the light equipment which had been looted and the repair of some of the heavy equipment, the rope industry of the Philippines was ready to resume production. And production was actually resumed (under contract to the Procurement Division of the U. S. Army) in July, 1945. Commercial production, however, was delayed for almost a year. The army cancelled its contracts effective April 1, 1946, at which time both Manila Cordage and Elizalde returned to a commercial status. In spite of its comparatively advantageous position from the point of view of potential production, and in spite of an urgent worldwide desire for its output, the rope industry of the Philippines, after a year of commercial operations, is still far (Photo by Mayflower Studio) Machine shop at the Manila Cordage Factory (Photo by Mayflower Studio) "Layer" converting three strands of yarn into finished rope. 6 The American Chamber of Commerce Journal April, 1947

from regaining its prewar position. According to available information, current production of the two operating factories is approximately onethird of prewar production, which in turn means that the industry has been able to give employment to only about one-third of the number of laborers employed before the war. Both raw materials prices and labor wages are considerably higher than before the war (the latter being approximately four times the prewar scale) but neither of these facts are considered the main barriers today to the resumption of normal production. In looking for the factors that restrict the development of this industry, one must direct his attention abroad, to conditions existing in those countries that constituted the markets for Manila rope before the war. The largest single market, the United States, absorbs the full quota permitted by the Bell 'Trade Act with no difficulty. But what of the 64% of the 1940 production that went to other countries? So far attempts to reestablish the world markets for this Philippine product have met with little success. According to those engaged in this industry, the demand for Manila cordage is as great as ever. Before the war, the entire Far East looked to Manila for practically all of its first quality cordage. This included China, Dutch East Indies, Malaya, Siam and India. South America and South Africa also purchased considerably quantities of high grade cordage. In all of these sections of the world, there are evidence of a strong demand for the Philippine product. But for two important reasons, this demand has not become effective. Exchange with which to purchase in. the Philippines has been a limiting factor in each instance. Potential buyers have found it impossible to secure adequate amounts of U. S. or Philippine currency or exchange with which to make their purchases. In the second place, world shipping conditions are still far from normal. This factor has been particularly operative with regard to the South American market. Before the war, shipments could be made, either direct or at least on through bills of lading to practically every port in the world. Today, this situa tion has not been entirely restored. Until transportation facilities become available on something approaching normal conditions, and exchange conditions improve many countries which formerly were active customers for Manila cordage will find it impossible to resume that relationship. The American Chamber of Commerce Journal April, 1947 (Right) Preparing fibre far rope spinning. (Micdle) Sorting and grading abaca fiber. (Bottom) Spinning jennies turning fiber into yarn. (Pbotos by Mayflower Studio) 7

Bureau of the Census and Statistics Statistical Nerve Center Of The Government Created by Commonwealth Act No. 591 on January 2, 1941, the Bureau of the Census and Statistics was less than a year old when war broke out. But from the standpoint of the nature of its work, it was as old as any bureau in the government even on its first day of operation. For it absorbed all of the statistical work of some of the oldest bureaus in the government, among which were the Bureaus of Health, Plant Industry, Customs, Animal Industry, and Commerce and the National Library. By concentrating all activities in the field of organized facts and figures in one bureau, President Quezon's purpose was to simplify some of the complicated governmental machinery. Mr. Ray Hurley, American census expert who had organized the taking of the 1939 census, was still in the Philippines, and the president prevailed on him to organize the new bureau. As a result, Mr. Hurley founded an unpretentious organization which could operate on a modest appro priation of about P150,000, and with a personnel of about 120 employes. This was possible only through the acquisition and use of the latest and most efficient labor-saving devices, such as the International Business Machines, capable of doing quicker and more accurately what had formerly required the services of hundreds of clerks. In June, 1941, Mr. Hurley could no longer resist the urgent calls of his home office, the U. S. Census Office, and returned to America. His successor was, and the present incumbent is, Dr. Leon Ma. Gonzales, Harvard graduate and former Philippine Government Commercial Agent in New York City. The primary reasons for centralizing the statistics work of the government were as follows: 1. To further simplify government activities by removing duplication of effort, both in the interest of economy and to avoid the issuance of conflicting information on the same subject by different offices of the Government. 2. To have a Central Statistics Bureau charged with collecting, compiling, assembling, tabulating and publishing all government statistics of general interest, for the use of the government and public. 3. To have a unified policy and system in the presentation of published statistics. 4. To have only one known office to which the general public can go for facts and figures they may need, and thus save them the trouble of having to go from one bureau to another for the desired information. 5. To establish an office to keep census records, and ever-ready to take periodic censuses upon order of the President or of Congress. The objectives of the Bureau are set forth in Section 2 of its Organic Act, and are briefly summarized as follows: 1. To collect, tabulate, and publish statistics and other information concerning population, agriculture, livestock, commerce, industries, banking and finance, employment, wages, prices, stocks of commodities, labor, social, religious, educational and economic situations; 2. To prepare for, and undertake all censuses of population, agri(Continued on page 18) 'Photo by Mayflower Studio) Two representatives of the International Business Machine checking the quality of the cards at the census bureau. 'Photo by Mayflower Studio) Numerical data is transcribed onto tabulating cards in the form of punched holes' In the picture Miss Carmen Rivera is operating one of the bureau's electric ptunchinf mtachines. Q. The American Chamber of Commerce Journal April, 1947

National City Bank of New York Report to Shareholders at the One Hundred Thirty-Fifth Annual Meeting JANUARY 14, 1947 The past year was one of the busiest this Bank has known. Almost every operation whether in currency, checks, loans, foreign credits or bond transactions made new records. Thus the Bank reflected the country's highest peacetime income and production-a great burst of activity instead of the slump and unemployment many had expected to accompany demobilization.. It was renewed evidence of the power of private enterprise when it is given. release. But in it also may be seen the forces of inflation nourished by the vast wartime expansion in the volume of money. Happily the record of the year includes certain, stabilizing influences. Some of the abnormally expanded money supply has been cut down by the action of the Treasury in using the excess proceeds of the Victory Loan of December 1945, on deposit with banks, to redeem its maturing obligations. This action reflects itself in lower government deposits and government security holdings in our own as well as other banks. It is a step in the right direction, though the inflationary potential is still strong. THE EARNINGS OF THIE BANK AND THIE TRUST COMPANY The combined net current operating earnings of the National City Bank and the City Bank Farmers Txust Company for the year were $18,801,025 or $3.03 per share on the 6,200,000 shares outstanding, an, increase from $17,592,420 or $2.84 per share for 1945. Adding net profits from sales of securities (after taxes), the total was $22,788,344 or $3.67 per share compared with $25,525,953 or $4.12 per share in 1945. These earnings do not include recoveries which were transferred to reserves. DIVIDENDS, CAPITAL FUNDS, AND RESERVES Dividends totaling $9,920,000 or $1.60 a share have been declared by the Bank and the Trust Company for the year, the same rate as for the second half of 1945. The Trust Company paid $620,000 of this amount. At the year-end, Capital of the Bank remains at $77,500,000. Surplus has increased to $152,500,000 by the transfer of $10,000,000 from Undivided Profits. After this trans fer, Undivided Profits are $29,534,614, an increase of $240,376 from 4 year ago. The Trust Company has Capital of $10,000,000, Surplus of $10,000,000 and Undivided Profits of $8,097,020. Tihe two institutions thus show total capital funds, that is, Capital, Surplus andi Undivided Profits, of $287,631,634 or $46.39 per share compared with $44.60 per share at the end.of 1945. The assets of the Bank are valued conservatively, and in the published statement Unallocated Reserves are deducted in arriving at the figures shown. Such reserves serve to provide a means of absorbing losses which may develop through the assumption of risks;inherent in the conduct of the banking business. Also certain assets are carried on (Continuedc on page 20) Condensed Statements of Condition as of December 31, 1946 THE NATIONAL CITY BANK OF NEW YORK Including Domestic and Foreign Branches ASSETS Cash and Due From Banks and Bankers.................... United States Government Obligations (Direct or Fully Guaranteed)...................... Obligations of Other Federal Agencies State and Municipal Securities.... Other Securities................. Loans, Discounts, *and Bankers' Acceptances................. Real Estate Loans and Securities.. Customers' Liability for Acceptances Stock in Federal Reserve Bank.... Ownership of International Banking Corporation............. Bank Premises.................. Items in Transit with Branches... Other Assets.................... $1,296,000,976.30 2,188,205,130.00 35,353,712.29 186,734,855.52 101,029,479.03 1,093,944,555.06 3,346,134.21 12,759,386.53 6,900,000.00 7,000,000.00 29,280,430.52 15,021,204.88 2,159,802.74 Total............... $4,977,735,667.08 LIABILIT I ES Deposits........................ (Includes U. W. War Loan Deposit $98,257,569.44) Liability on Acceptances and Bills............ $15,975,381.92 Less: Own Acceptances i n Portfolio. 2,193,999.08 Reserves For: Unearned Discount and Other Unearned Income........... Interest, Taxes, Other Accrued Expenses, etc................ Dividend..................... $4,664,102,604.42 13,781,382.84 4,147,064.01 31,520,001.60 4,650,000.00 259,534,614.21 $4,977,735,667.08 Capital........ Surplus......... Undivided Profits $ 77,500,000.00. 152,500,000.00 29,534,614.21 Total.............. Figures of Foreign Branches are included as of December 23, 1946, except those of the Dairen Branch which are prior to the outbreak of the War, but less reserves. $376,317,672.00 of United States Government Ofligations and $1,712,448.73 of other assets are deposited to secure $318,115,058.42 of Public and Trust Deposit and for other purposes required or permitted by law. 'he American Chamber of Commerce Journal April, 1947 9

Economic Stat e of the Nation A Statistical Report By DR. LEON MA. GONZALES Director, Bureau of the Census and Statistics godinary expectatis no longer s. But over alldis ANProgTHER YEAR comess is the m.ain motif, in varyand one m coregn tradmilestone has yeaen was custanced dim ei, he road back to e ghest on r d noreplacy. Fro" this vaprecedentaged total of over headway has been made justr the in-p tme 199 by same. The nation has imade enouen c ere regteed an progress to warrant ve little ase of 22.01 per ct. eptaimbsm. The tempo is varied a toIn some fields of pendeavor, only the Miseryi adv ance has but e en made against stupendous difficulties; in some the spurt has been beyond ordinary expectations. But over all, the general pattern is the same. Dr. Leon Ma. Go es hvaged nationals of Europe, weh o a Progress is the main motif, in vary-i ing designs. Indeed, he oer o tei vavede ell e ng nsierine in adance lasto eeaah ad cumstances. to rebuild, repair, and the highest on record, reachinry war against inflation." Ahes unprecedented, beverages, of The advance an ourand toilet artices work is clearly reflected in the in- prewar all time high in 1929 by alcreased well-being of our people. ot P101 million, or 16.19 per cent. While undoubtedly a lot still leaves As compared with 1941, last year 's to be desired, conditions in the pub- foreign comm terce registered an inlic welfare have improved very con- crease of 22.01 per cent. sierablyn. The backwas of he t y ears. Te sarp de, cli has still left ar lot of people in t mi- e he attribmort to te ac thion sery and want, but under prresent s e o t prinpal heaio export is maintained, in approximately oneshare. Total imports available. Acyearconditions, we have done h ached Pd602.5 million, also highest well enough. Compared to the war- of all time. That trade is actually ravaged nationals of Euoe e i our principale aret of living moris expecte and to suffering P1. milli on re than tlet halize faster than the estimate duearticles shells, fruits, buntal fyber, to the production less. 1941 figure. The ten principal im-furniture. ostuff red cn rts in the order of their value all because of its immediacy to our cmer s ic te a rstands o lives, is the progress made in the a "idwar against inflation." As the products, paper, beverages, chemiyear draws to a close the over-all cals, and toilet articles. index settled down to one of the lo- For the period under review, our west records made so far since li- export frade of last year representberation. From 637.3 when the ed a decrease of almost P194.6 milyear began, the index dropped down lion from the 1941 figure. As a to 446.9 - a gain of almost 200 matter of fact, it was the lowest points. Compared to the 100 points thirty years. The sharp dcline in 1941, there are still 346.9 points hs been attributed to thre fact thatl to go. But if the rate of progress some of the principal heavy export is maintained, in approximately one items are not as yet available. Acyear and nine months the cost of cordin to their relative importance, living shall have returned to nor- crinllitotonr rlae m oretan e mal. Barring accidents, however, the the following were our principal excost of living is expected to nor-. ports: copra, abaca, coconut, toilet Tnalize faster than the estimate due articles, shells, fruits, buntal fiber, to the production of more food- and rattan furniture. stuffs and the import of essential In the field of local business, the commodities. very significant fact stands out: The records are clear. For the year 1946, a total of 808 corporations with a paid-up capital of over P21 million and 469 partnerships with a paid-up capital of P25 million was registered. These figures db not include the 372 cooperative associations operating with a total paid-up capital of almost P1 million. As a consequence of this business flurry, the average monthly investment during 1946 registered an increase of 'almost 322 per cent over the prewar figure. Of the stock corporations almost three-fourths of the number is Filipino-controlled, with the Chinese and Americans coming a poor second and third, respectively. The Chinese, however, occupy the premiere place in partnership with the Filipinos coming in a close second. While the strides made in agriculture have not equalled those made in commerce, yet they are nevertheless firm and strong. We are as yet planting less crops than we used to; but even at that we have every reason to feel glad that we have put to cultivation more acreage than ordinarily we should, what with the high cost of living, profitable jobs in Army fields, and the discontent in the ricelands. For the first half of last year, we have planted only a little over a million and a half hectares of rice. This is only about four-fifths of our prewar average. The total yield for the same period of 37. million cavans is 14 million short of what we should ordinarily produce to reach prewar level. In the corn industry, the picture is even less bright, though not too discouraging. Our total yield for the first half was less than 6 million cavans, ilaking us about 40 per cent short. Our livestock and poultry situation, however, is rather dismal. We had only one carabao last year where we had two before the war. The same is true with cattle, horses, hogs, goats, and sheep, as well as ducks, geese, and turkeys. We have only one chicken now were we used to have three. The gradual.restoration of peace to our countrysides, the steppingup of our agriculture endeavors, as well (as the return of displaced per sonnel are expected to bring about Commerce, our main prop in the past, is still the backbone of our economy. As such, it has shown the greatest activity. The total va post liberation investment is greater than prewar. Corollarily, Filipinos occupy the dominant position in the field. 10 The American Chamber of Commerce Journal April, 147

better agricultural conditions when this year ends. As in agriculture, our industries still need a lot of rehabilitating. The bright note, however, is the progress made in building construction. An impressive total of building permits has been issued by the city authorities. During the plast year P48 million worth of buildings were constructed or repaired. Compared with the P12 million in 1945, the stride was tremendous. Rehabilitation of the cigar and cigarette industry has been going on at a painstakingly slow pace. Most of the factories destroyed have not as yet been repaired. The few remaining ones operating have been laboring under many serious handicaps. This has been very patent in the decrease of almost 85 per cent in the average monthly production. In the distillery industry, the painful fact stares us in the face that the one-year output 'hardly equals the average monthly production in 1941. This is particularly true in the production of denatured alcohol, which before the war and even during the Jap occupation., was largely used as gasoline substitute. A new industry has arisen in the manufacture of compound liquors which shows some promise. The textile industry in the Philippines is reckoned only with the National Development Company, our main textile producer. Its total output for the year was only about a fourth for a similar period before the war. What is true with the textile industry is also true with our cement production. Production of "Apo" cement by the government plant was only about 30 per cent of prewar output. Production of the "HiSilk" variety, which made up a good percentage of the output before the war, h~as also been discontinued. The manufacture of shoes is in, far worse condition. Competition has so limited shoe manufacturing by the National Footwear Corporation that the statistics record a pitiful output of on-ly 506 pairs of shoes in June of last year. Until the road expansion program gets underway, our road situation continues to be more or less the same as in 1941, although a few hundred kilometers have been added since. Railway operations are much below normal due to destruction of parts of lines as well as of locomotives and cars which have not been replaced up to the present. In happy contrast, however, the Filipinos have become air-minded. The FEATI and PAL, as well as the recently-organized CALI, are boosting air travel as never before. For the first nine months, the different airlines carried over 291,000 passengers and almost 25 million pounds of freight. Contrast that with the 11,000 passengers and 72,000 pounds of freight for the entire year of 1941, and you have a fair estimate of the stride (made by the aviation industry in this country since liberation. The monetary circulation in the country has been declining steadily, reflecting a palpable deflation. Starting with almost a billion pesos in January of last year, the circulation fell off to less than P732 million in twelve months. The decrease was about 25 per cent. Just the same, present circulation is still far too big for a country struggling from the ruins. The total monetary circulation at break of war was only P256 million, about a third of what it is today. The government reserve totals P673 million in December, in spite of the heavy imports. The presence of U. S. Army is largely responsible for our reserve fund. The reserve has more than offset our lack of export commodities. Our total public debt at the end of June last year Was P133 million, (Continued on page 17) Ct46 JAR ~1$f U1 "Proved Performance in War and Peace" INTERNATIONAL TRUCKS L-IIO 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 Pawrticulars INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2-79-61 The American Chamber of Commerce Journal April, 1947 11

The Stock Market JANUARY 2 TO FEBRUARY 20, 1947 By A. C. HALL AND CO. On the resumption of business following the year-end holidays, prices moved forward agressively out of the trading range established during the second half of December. The advance was accompanied by a large expansion, in the volume of transactions. As measured by our share average, prices had improved about twenty percent by JXanuary 13. A period of consolidation with minor price fluctuations ensued. During this time, the market hald two unsuccessful attempts to move into new high ground, and finally made it on February 19, when there was a scramble to buy stocks following President Roxas' announcement of the previous day that Philippine Gold Mining Companies would be free to sell their gold in the world market. On February 20 our share average closed at 43.65, a new high for the present bull movement which had its inception on September 26 when our index registered 25.55. It is interesting to compare prices of the leading issues. In our comparative table found elsewhere in this issue, we show September 26 prices, also the range during the period' January to February 20, 1947. A number of issues have made substantial advances. From a percentage standpoint, Surigao Consolidated shows the widest gain. The rise on this stock reflects recommencement of milling and the longer term outlook. The mill is at present handling about 150 tons daily, and by April should reach 450 tons daily. Surigao will soon be followed in the ranks of producers by Atok/ Big Wedge which is scheduled to recommence operations around March 4 1st. Later in the year Mindanao Mother Lode and Benguet Consolidated will get into production, and should be followed soon after by 4 Lepanto Consolidated. As regards the chrome companies, Consolidated Mines is in active production and Acoje should be pro- 4 ducing before the end of the year. The Presidential announcement is a (most constructive development for the mining industry, as the benefit3 of the open market gold price will assist companies to offset what might otherwise (have been onerous cost increases. Strength has not been confined to mining shares. All sections of the list have participated in the demand for equities. The leading Sugar Shares show substantial appreciation; Bais at P610 are up P85, Carlotas at P115 up P13, and Tarlac at P95 up P15, were principally in demand. In the Commercial and Industrial Section, San Miguel Brewery shares continued their sensational advance "PRICE closing at P501 sales from. P360 bid. Philippine Racing Club advanced from P1.04 to P1.20 on publication of a satisfactory 1946 report. Elsewhere in the list, Bank of the Philippine Islands were traded up to P70 up P12, while Filipinas and Philippine Guaranty changed hands at P17 and P19. R A N G E Antamok Goldfields Atok Gold Mining Co. (x) Baguio Gold Mining Co. Batong Buhay Gold Mines Big Wedge Mining Co. Consolidated Mines IXL Mining Company Lepanto Consolidated Masbate Consolidated Mindanao Mother Lode San Mauricio Mining Co. Surigao Consolidated Sept. 26 1946 P.045.63.08.006.76.0085.125.17.08.48.37.355 Jan. 2 1947 P.05 1.03.085.0072 1.14.015.095.40.075.65.28.335 High P.065 1.42.12.011 1.44.018.12-3/4.51.10.85.36.53 Low P.05 1.14.10.00 1.14.01.09.40.07.65.28.33 0 U N OUN P.25 3.40 3.50.03.11.05.11 Feb. 20, 1947 Closing P.05 1.40.10 7.011 1.40 5.015 5.12-3/,.46 5.0875.85.32 5.53 T ER i P.30 3.80 ) 3.90;4.045.12 i.065.125 OVER THE C Acoje Mining Company P.17 Balatoc Mining Co. nom Benguet Consolidated 3.50 Coco Grove, Inc..03 Itogon Mining Co..105 Suyoc Consolidated.055 United Paracale.105 tx)-Prices adjusted to ex-rights basis. P.25 3.55 3.90.034.12.05.135 P.31 3.80 4.00.058.145.065.155 JANUARY::::::::: FEBRUARY _ _ _ _13 _ _1 3 _ 2 7 I 3_ 3_7I 1 11 0 1 1 17 8 8 1 IS4 2 1 28 5 12 _ _ _ _ __ I I 1 11 1 1 1 5 1 219 1 1 112 2 _ 1 191 1 1 1 23 I I 1 13 1 2 - 111 1 11 1 I0 11 24 31 7l 14 1 4 I I 18 25 I 8 15 - 1 _ lTInT _T.II..I...1I..Iu Ii B Am -IIAa. C. HALL & CO.-... "" k AIl-lKlklr. CL.A 0DI A V/CDAP A ~i: IMINm II j 1l/O r IL r ' Iv rLl-%WI I I i I I I I i I I I I I I I I I I I I I a I I I I I I lI I I 12 The American Chamber of Commerce Journal April, 1947

Capitalistic Exploitation.. (Continued from page 5) tined, as an independent Republic, to continue to march side by side with her great mother country along the higway of progress. The closer the relationship between the daughter and mother republic will continue to be, the better it will be for them both. They complement each other on opposite sides of the broad Pacific, in ideology, in political policy, in industry, and in trade. Hence is the parity proposal so natural and so necessary. It establishes nothing new, but continues, in the respects provided for, the old relationship despite the separation of sovereignties. Committed as is the Philippines to capitalistic democracy, the people can not but welcome capital investment here, a vital part of the capitalistic process, without which nothing new could be done and even the already established could not be maintained. President Roxas and various high officials of the administration have spoken eloquently on the subject of parity. The parity provision was called for by the American Congress for two main reasons. The first is based on the fact that Americans who had property in the Philippines which was destroyed during the war, are required to re-invest here the damage payments which will be paid them by the American Government; it would be manifestly unfair to impose this requirement if the conditions under which they originally made their investments were changed. The second and more important is that Congress wanted to encourage in this manner the investmlent of new capital which the country so badly needs after the war's destruction. The attitude of the Roxas administration with respect to foreign and especially American investment, differs in no way from that of previous administrations. President Quezon, for instance, said in 1938: "We can not, we must not, adopt a policy that in any way may be interpreted as antagonistic to foreigners. We do not underestimate what they are doing and can do in aid of our material progress. The attraction of foreign capital has been one of my main concerns." In spite of the fact that the Americans had equal rights with the Filipinos before independence, total American investments in the Philippines at the time of the outbreak of the war amounted to only around P537,000,000 of which around P200,000,000 represented investments in sugar, coconut, and abaca planta tions, mining and lumber operations, and public utility enterprises. For comparison, it may be stated that total Chinese investment were estimated at around P200,000,000, Japanese investments at P100,000,000, Spanish at P70,000,000, and other foreign investments at P180,000,000. Only a little more than half of the total foreign investments were American in spite of the advantage the Americans enjoyed over others. American investments in Cuba, Chile, and Argentina were all somewhat larger than the American investment in the Philippines, and tile total American investment in South and Central America reached nearly four billion dollars. Canada and New Foundland alone, however, had nearly three and a half billion. American investments in Europe totalled less than one and a third billion dollars. American investments in all of Asia, Africa, and Australia amounted to only $913,000,000. These figures seem large when viewed by themselves, but they almost disappear when the total American investment in the United States itself is considered. And the figures of America's foreign invest(Continued on next page) -- -- IT WEARS LONGER THAN PRE-WAR TIRES! * Stronger, Safer, Economical * See this new tire today I I WL.- & ff L --- - The American Chamber of Commerce Journal April, 1947 13

ment may be compared, too, to the figure of four hundred fifty billion dollars which is the estimated cost of the last World War to the United States. It is obvious that American capital never flowed to the Philippines in large volume and it is likely that it never will, regardless of any special inducements, although it is to be ardently hoped that the Philippines will attract more American capital from now on. During nearly the whole of the period of American sovereignty over the Philippines, the continuing political uncertainty, or what financiers chose to consider as such, discouraged long-term investment. Under the parity provision, there will be a period of over two decades which case be more definitely counted upon.. It will be recalled that the Commonwealth period was to last, and did last, despite the war, only one decade, - ten years. It can not be,denied that there has been capitalistic exploitation in the worst sense at certain times, mostly in the past, in various parts of the world, especially in South America, Africa, and sections of Asia, as well as in Europe itself. Various nations were notoriously concerned in this exploitation (Belgium in the Congo, for example), but never America. American capitalism developed in what was called the New World among free and democraticallyminded men. Even the Negro slavery which sprang up there and flourished for a time was not the wholly inhuman system which it was in some countries. More has been achieved in America in reducing, if not entirely eliminating, poverty than in any other great country, and immense wealth has been amassed without, in the main,, a grinding down of labor. The concept of consumers' purchasing power has been held well in mind by American capitalists and entrepreneurs in their mass production programs. The workers are also the chief consumers and must earn enough in wages to buy the product of each other's labor, or the whole economic machine is brought to an inevitable stop. Under American inventive and technological genius, most toil has been transferred to the inanimate and tireless machine, vastly more efficient than the human and animal labor which the economic systems of the past had to draw on. Oil has taken the place of sweat. The modern worker has become a machine-tender, gen erally well paid for his working time, which has been so considerably reduced that many hours are left for leisure pursuits. fThe bias of American capitalism is decidedly humanitarian. 'The economic machinery is perfectly understood to exist primarily for the satisfaction of human wants. And appeal is made n.ot only to wants, needs, but to the most refined taste in the production and sale of thousands of articles of every day use, for everybody, rich and poor, or rather, the not-so-rich. The people of other countries have no idea of the general abundance and luxury of American life. Tlhey must see it to believe it. This humanitarian bias, the American capitalists and entrepreneurs carry with them wherever they go. In the Philippines, American business stands high in public estimation. Most workers would rather work for American than for other foreign or even Filipino employers because the plain fact is that they are better paid and better treated: by the Almericans. American investments have done much to break up the old feudal conditions which however are still making much trouble. Practically speaking, only more of the American-style modern enterprise can break up this old system of oppression. Such "exploitation" as there has been in the Philippines during the! past half century was this, and not American. American capital and business enterprise, limited as it has been, has done as much or more in the economic sphere to bring the country forward, as American government officials have done in the governmental and political spheres, though it has received much less praise. Business prosperity and good government are, as things are, inseparably connected. Government activity is based primarily on taxation, and if there is little to tax, there are no government revenues. In thinking of capital investment and the exploitation of natural resources, the Filipinos must think of utilization rather than neglect and waste; of contribution rather than relinquishment; of employment and activity rather than idleness and stagnation; of enjoyment rather than abstinence; of gain rather than loss; of creativity rather than a suspicious, but limp and indolent desuetude. That they will, is the confident expectation of this writer. -1 1= - --- AN OPPORTUNITY FOR EX.INTERNEES EX-PRISONERS OF WAR AND THEIR FAMILIES TO GIVE PRACTICAL EXPRESSIONS OF THEIR UNDYING GRATITUDE FOR HELP GIVEN THEM IN THEIR TIME OF GREATEST NEED. Join the ESCOD A 1EMOItIAL FUND ESCODA -1 MEMORIAL FUND Mail Checks direct to E. B. Ford c/o Philippine Trust Co., Manila L., %11 14 The American Chamber of Commerce Journal April, 1947

With PARITY. What is bound to happen? No doubt you, too, can foresee a tidal wave of activity in every conceivable venture - in finance... in industry... in agriculture... in transportation... in construction... in distribution. Every business will be swept into this impending motion with tremendous speed and accelerating momentum! Conversion of present business methods to faster and more efficient techniques becomes necessary. It becomes imperative in a constant market! Manufacturers prestige and product brands will continue to be do What? minant factors in merchandising efforts... class and mass markets will be as distinct as ever.. but advertising will continue to be a growing science and art. Reynoso's staff is alert to the first sign of a new trend and quick and ready to apply methods that will equal the situation. * NEWSPAPER ADVERTISING * OUTDOOR ADVERTISING * RADIO ADVERTISING * ELECTRICAL ADVERTISING * DIRECT MAIL ADVERTISING REYNOSO ADVERTISING CORPORATION Operated by EMILIO REYNOSO & SONS, INC. - Established 1907 3rd Floor Chaco Bldg., Manila The American Chamber of Commerce Journal April, 1947 Tel. [phone]

BUREAU OF THE CENSUS AND STATISTICS Manila ESTIMATED NATIONAL INCOME OF THE 'PHILIPPINES: 1939 and 1946 (National Income, as used in this survey, refers to the annual value of goods and services produced by the inhabitants of a country.) Grand Total - A. Production of Goods: 1. Agriculture-crops & livestock 2. Forest products.......... 3. Fishing (licensed)........ 4. Minerals................ 6. Manufactures............ 6. Sundry: (f) Handicrafs.............. Fishing (unlicensed).... Unprovided for......... B. Services: 1. Salaries & Wages in government............... 2. Salaries and wages outside government............. 3. Professions and o t h e r services............... 4. Public Utilities: (k) Electricity.............. Transportation (land and water)............... Air transportation...... Telephone (12% of capital) Cable and radio communications........... 5. Distribution (com'l establishments)................. 6. Sundry: Housing.............. Banks reserves, surplus and undivided profits.. Insurance claims paid or collected............... Mutual bldg. and loan ass'njs (Reserves, undivided and unearned profits).............. Educational institutions Hospitals............... International balance of payments............. Others.................. 1939 1946 P1,802,156,000 P3,346,935,000 P 282,775,000 30,222,000 15,817,000 47,632,000 167,175,000 2,000,000 2,500,000 5,000,000 45,250,000 357,548,000 23,847,000 5,290,000 38,150,000 1,000,000 1,500,000 672,343,000 5,000,000 25,712,000 4,980,000 1,890,00 2,000,000 1,000,000 58,525,000 5,000,000 P1,204,733,000 (a) 30,454,000 (b) 61,881,000 (c) 5,250,000 (d) 132,335,000 (e) 4,000,000 5,000,000 5,000,000 68,489,000 (h) 679,854,000 (i) 47,694,000 (j) 2,645,000 50,000,000 4,000,000 1,103,239,000(1) 25,000,000 (m) 18,537,000 (n) (x) 1,500,000 (o) 1,000,000 (p) 108,676,000 (q) 5,000,000 (r) such as Telephone, cable and radio communication, air transportation, house rentals, banks' profits, etc., insurance paid, educationaJ institutions, profits of mutual building and loan associations, hospitals, credit balances in international payments, etc. Estimated had to be made for these items. With respect to Distribution represented by Commercifal Establishments, gross receipt were used from which were deducted salaries and wages and an additional 10% for other expenses. The 1946 estimates have taken into account the rise in values of from three to five times those of prewar, and the destruction of factories, etc. that have resulted in much reduced output. In estimating 1946 figures, (a) was based on data from the Bureau of Plant Industry and Bureau of Animal Industry; (b) on data from the Bureau of Forestry: (c) on data from the Division of Fisheries; Department of Agriculture and Commerce; (d) on figures on cement and coal production obtained from the National Development Company. From said figures were deducted estimated expenses for labor, etc. The estimates for (e) were arrived at by excluding from the 1939 figures the output of industries reported to have been wiped out, and the balance thereof was halved to determine estimated reduction of the output of the industries due to the war. The remaining half was multiplied by three (3) to represent the rise of factory prices during postwar. For (f) the 1939 figures for handicrafts was just multiplied by two (2) to indicate rise in values in provinces where such things are produced; the figure for unlicensed fishing likewise doubled the 1939 data; and the figure for "unprovided for" just repeated the 1939 figure to take care -of increased values and also of the disorganized state of many occupations in 1946, compared with prewar. For "Services" during 1946, (h) represents figures of the General Auditing Office; (i) salaries of estimated number of laborers to indicate increased professional fees. For (k) during 1946, electricity was reduced by one-half due to extensive destruction of electric plants and also of buildings and residences dur ing the war; transportation (land and water) was hiked to P50,000,000 to give allowance to the transporta, tion boom and higih fares charged just after liberation; air transportation is credited with a mere P4,000,000 following unofficial reports that one air transportation company alone is making a gross receipt of (x) Figures not yet available from the Bureau of Treasury. Note: For the year 1939, figures of the 1939 Economic Census were used as much as possible. They 'are data as of January 1, 1939. For Agriculture, 30% of the gross income was deducted to represent miscellaneous expenses. For Forest Products, Minerals, Manufactures, there were deducted from the total value of the output, the expenses for salaries and wages and for fuel or electricity consumed. For Fishing (licensed) the deductions for sala ries, wages and other expenses were based on 25% of the annual value of the catch. For Manufactures, cost of raw materials was also deducted to avoid duplication. The Census of 1939 did not take any figures on unlicensed handicraft enterprises and unlicensed fishing. The estimated figures on these items were based on figures on licensed enterprises. As regards Service, also 1939 Census figures were used, except where no census data are available, 16 The American Chamber of Commerce Journal April, 1947

P50,000 daily or about 12 per cent; telephone and cable and radio communications have no figures as they may not be making money this time. Distribution, (1), was estimated by taking the total foreign trade of 1938 and total foreign trade in 1946 as basis, together with the gross receipts of commercial establishments in 1938. Housing (m), was just hiked five times to indicate, average rise in house rental; (n) is Bureau of Banking figures; (0) and (p) are estimated net earnings of educational institutions and hospitals; (q) has been estimated as per attached statement; and (r) is an estimate to cover unknown sources of income in the Philippines. Economic State.. (Continued from page 11) for which a sinking fund of P63 million had been provided. With an estimated population of 18 million, the per capita debt of every man, woman, and child in this country amounts to P3.85. We have averaged a yearly decrease in public debt of over P4 million. There are altogether 11 commercial banks operating in Manila with a total combined resources of P848 million pesos. This represents an increase of over 300 per cent in less than 12 months. In sharp contrast, the combined resources of the banks before the war amounted only to P353 million, or only about 42 per cent of the present amount. Similarly, bank deposits registered a mark very much higher than the prewar. All told, the deposits last year passed the half billion mark, while the bank deposits in 1941 did not even reach P200 million. Twenty-three months after liberation, the U.S. Army is still the biggest employer of labor in the Philippines. Tihe peak of Filipino civilian payroll strength was reached in November, 1945, with 230,000 employed. This figure receded gradually as units of American forces were either withdrawn or assigned to other areas. The decrease is clearly indicated in the figures for one month. In October, 1945, 200,000 Filipino la borers were employed, by the U.S. Army. One year later to the month, hardly 90,000 were still in the employ, a reduction of over 55 per cent. There is no glossing over the fact that the unemployment problem in the country is not only great but acute as well. The President was fully conscious of this when, on his election, he urged the people to join hands with him in the war against the twin specters of inflation and unemployment. In addition to those who are gradually crossed out of Army payrolls, there are an estimated 400,000 guerrillas in Manila and the provinces who have not been inducted into the Army and rare thus considered displaced persons. Also, the paring down of Philippine Army personnel to peacetime strength will add about 100,000 more unemployed. (Continued on page 18) 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"... -M Sole Importers SORIANO TRADING CO. Sole Distributors SORIANO TRADING COMPANY M. R. S. BLDG. TEL. 2-79.61 M. R. S. Bldg. Tel. 2-79-61 M The American Chamber of Commerce Journal April, 1947, 17

There are no available data as to the exact number of persons out of work in Greater Manila area, but it is conservatively estimated at 145,000. The acuteness of the situation is indicated clearly by the fact that over 70,000 job seekers were actually found in Manila alone by the Department of Jabor from August 20 to December 31, 1946. These are the men and women who roam the city streets and storm the gates of big firms looking for jobs. No doubt, they contribute in a large measure to the criminality in the city. Wage rates in private enterprises in Manila have not gone up in proportion to the rise in the cost of essential commodities. This is the main reason why there was unrest among industrial workers during the latter part of 1945. Early in 1946, agitation by labor unions for increase in wages resulted in progressive rise of wage rates in industry and trade. By the latter part of 1946, skilled laborers received wages nearly three times the prewar rates, while the wages of unskilled laborers have increased almost four times. Reduced to terms of real wages (that is, wages in terms of goods and services they can buy), present wages are slightly over half of the wages paid before the war. Unskilled labor, whose wage before the war average P1.24 a day and now P4.53 is actually receiving only about 80 centavos in real wages. Actually, a laborer in 1946 spent more for food than in any year before the war. The only possible explanation for the rather high expenditure is the low food purchasing power of the peso, due in turn to the high retail prices of prime commodities. As riay be expected the Filipino wage-earner spends proportionately more for food than his American counterpart, confirming in reverse Engel's law: "The larger the income of a family, the smaller is the percentage of it expended for food." To the peasant class, the past year wis significant for the passage of the Tenancy Law which provides, among other things, for the division of the produce on 70-30 basis in favor of the tenant, if the tenant defrayed all the expenses of cultiva tion. The Administration has also formed the Agrarian Commission, which is continuing its surveys to help solve the chaotic conditions in agrarian areas. THAT, in brief, is the state of the nation. Undoubtedly, it is far from recovered, but the signposts along the highway are clear and unmistakable. There seems to be no doubt that this year the nation will even make greater strides towards reconstruction. The War Damage Commission is being geared up for maximum speed. The government is committed to embark upon a largescale development program. The creation of the Rehabilitation Finance Corporation, capitalized partly from the proceeds of some P200 million worth of surplus property inherited from the U.S. Army, will most certainly step up the rehabilitation of our industries. The Shipping Commission, created to help restore the interisland trade to its prewar status, has started activities with the distribution of 44 FS vessels. Several new taxation laws hlave been passed calculated to increase substantially government revenues so urgently needed to balance the budget. The Cebu Portland Cement Company is also earmarked for expansion. Fresh impetus is being given to our fishing industry. Only recently, the Agricultural Machinery and Other Equipment Corporation for the manufacture of farming equipment suitable for local use, has been inaugurated. A commission to study the rebuilding and building of roads and bridges is already here to map out the masterplan of work. On their initiation, the people will have much use for the rehabilitation windfall coming their way as well as the veterans' benefit payments. Indeed, the year 1947 promises to be a year of greater activity and progress. What has been done up to the present has been in the na ture of preliminary groundwork, left largely to private enterprise. When the various rehabilitation agencies start going on all cylinders, then verily can we say with the President that we 'have started to "move forward without pause to bind up this nation's wounds, to toil, to make, and to build." Bureau of the Census.. (Continued from page 8) culture, industry and commerce; 3. To conduct, for statistical purposes, investigations a n d studies of social and economic problems and conditions. 4. To carry out and administer the provisions of Act No. 3753, governing Civil Registry; 5. To make and publish, from time to time, estimates of population, agricultural production, national income and number of livestock; 6. To compile, classify, and publish statistical information for the use of the government and the public. To carry out the foregoing objectives the Bureau, since the beginning has had five technical divisions; namely, the Division of Vital Statistics and Civil Registry; the Division of Agricultural Statistics, the Division of Labor Statistics, the Division of Business Statistics; aiid the Divison of Customs Statistics. When, after the war, Dr. Gonzales resumed his position as Director )f the Bureau, he found an office seriously undermanned, almost completely shorn of equipment, and housed in dark, dingy, cramped quarters. The bureau's prewar 'Photo by Mayflower Studio) In the foreground Mr. Leoncio Gonzalo, chief of the tabulating section, is operat, ing a Type 405 IBM Electric Accounting Machine. Behind him is an electric sorting machine and other modern equipment used by the bureau in its work. 18 The American Chamber of Commerce Journal April, 1947

equipment, with its impressive array of steel cabinet files, calculating machines, adding machines, typewriters, etc., etc., had been completely wiped out by the war. Gone also were some of the priceless records of the government, such as the documents of the national civil registry, customs statistics' entry cards dating back to Spanish times, demographic statistics also dating back to Spanish times, the 1939 census returns, statistical books and records on agriculture and industry, business and labor statistics, and a really tremendous collection of pamphlets, magazines, yearbooks sent to the bureau by foreign governments and publishers. Hundreds of reserve copies of the Yearbook of Philippine Statistics (1940), Handbook of Philippine Statistics (1941), Abstracts of Philippine Statistics, together with thousands of pamphlets on population, agriculture, etc. were all consumed by fire during the last battle of Manila. Naturally, under such handicaps as indicated by the losses enumerated above, it was impossible for the bureau to operate at its prewar level of efficiency. With two to four employes occupying one table because of inadequate space and lack of furniture, with only four or five calculating machines to work with as compared with almost forty before the war, the output of tabulated or printed statistics was necessarily far below the prewar output. The accomplishments of t h e bureau have therefore been limited to those activities considered most urgent. The ground floor of the Watson Building, where it is now located, was repaired and painted. The war damage survey, started about the middle of 1945, has been completed. A revision of the Yearbook of Philippine Statistics has brought available data up to date. By conducting an economic survey, material was secured for the Handbook of Philippine Statistics. The 1,000 and more local civil registrars have been surveyed to ascertain what portions of their records are still intact. General statistics on demography, labor, agriculture, foreign commerce, business activities, etc. have been collected, compiled, assembled and tabulated. And hundreds and thousands of census schedules, forms and other printed matter needed for a new national census (authorized by Republic Act 36) have been printed. Mention should also be made of the services the bureau has rendered to the UNO, UNRRA, UNESCO, Reparations Commission in Tokyo and the Department of Foreign Af fairs. All of these entities have needed facts and figures on the population, economic resources and activities, social conditions, etc. of the Philippines. To the fullest extent possible, these naeeds have been met by the small but hardworking force of researchers, compilers and computers of the Bureau of Census and Statistics. The major project confronting the bureau at the present time is the tak(Continued on page 23) (Photo by Mayflower Studio) Front view of one of the electric accounting machines recently installed by the bureau of census and statistics. \ H ~o~,rfSODA1 l **...THE PERFECT MIXER l9fi~ll Now available In any ^^EI][fl quantity at any time. Soto by I Bottled at the.ROYAL SOFT DRINKS PtJANT Owned & Operated by SAN MIGUEL BREWERY YOUR GUARANTY OF UNEXCELLED QUALITY The American Chamber of Commerce Journal April, 1947 19

Report to Shareholders... (Continued from page 9) the Bank's books at figures under estimated liquidating values. The total of Unallocated Reserves and; known excess values (exclusive of market appreciation on the bond account) is more than $40,000,000. EARNINGS OF THE BANK For the Bank alone, net current operating earnings were $17,573,826 compared with $16,393,098 in 1945. Adding net profits from sales of securities, the total amounted to $21,291,718 compared with $23,725,059. A summary for the two years in the standardized form adopted in 1942 is shown in the following table: Current Operating Earnings Interest on Loans..... $15,9 Interest and Dividends on Securities (net after amortization)....... 39,q Other Current Operating Earnings (including net earnings of foreign branches).......... 12,( $68,4 Current Operating Expenses and salary increases in recognition of higher living costs and individual abilities. Provision for taxes and assessments as shown in the foregoing table consists of taxes on current income and the $2,691,000 Federal Deposit Insurance assessments. Certain other tax items are classified under operating cost of premises, and there are in addition taxes on the profits from, sales of securities, and taxes at foreign branches. If all these were added together the totlal tax figure would be about $20,000,000. This is larger than the net current operating earnings of the Bank. Other operating expenses, includ 1946 882,767 784,839 615,193 282,799 1945 $12,323,926 Change $+3,558,841 38,171,995 + 612,844 8,645,708 $60,141,629 +3,969,485 $+8,141,170 Interest Paid......... Wages and Salaries.... Provision for Taxes and Assessments........ Net Operating Cost of Premises (including Real Estate Taxes and Depreciation)....... Other Current Operating Expenses........... Net Current Operating Earnings........... $ 2,470,037 18,370,129 15,065,851 4,424,106 10,378,850 $50,708,973 $17,573,826 $ 1,999,140 14,664,289 14,884,452 $+ 470,897 +3,705,840 + 181,399 year by $52,000,000 or 15 o. The rate of increase of these deposits, very heavy early in the year, has lessened in recent months as goods have become available for purchase by individuals in greater abundance. Deposits in foreign branches grew $189,000,000 or 34%, principally in the Far Eastern branches reopened during the past two years. EMPLOYMENT OF FUNDS Holdings of U. S. Government securities are $584,000,000 less than a year,ago; loans and discounts are down $140,000,000. The year-end bank statements of 1945 reflected, however, a large amount of loans to dealers, insurance cormnpanies, and others arising out of the December Victory Loan. At that time there also remained outstanding a considerable volume of loans, many under partial government;guarantee, to finance! war production. During the past year our loans in both of these categories have been almost completely liquidated. However, the increasing demand for funds from industry and trade has so largely offset this decline that the average volume of loans and the total income from loans were larger for the full year 1946 than for 1945. With the higher price level and the existing large volume of production and tr'ade, the demand for loans is continuin.g. Cash on Hand and Due from Banks has increased $194,000000; most of the increase is in foreign branches. Of the holdings of obligations of the U. S. Government and Government Agencies 30o% mature within five years and 96% within ten years. If computed to earliest call date instead of to maturity, 64% are due or callable within five years and all within ten years. The average maturity of this portfolio is 5 years and 6 months in comparison with 4 years and 6 months one year ago. This lengthening reflects the withdrawal by the Treasury of over $1,000,000,000 of War Loan deposits mentioned above and the corresponding redemption at Imaturity or the sale of that part of our short term Treasury Bills, Certificates, and Notes in which these funds were employed. The practical elimination of this large Trea sury deposit lessens the need for so large an amount of short term securities. The decline in the Bank Premises account during the year represents depreciation, charged against current earnings. The International Banking Corporation is carried on our books at 3,710,520 + 713,586 8,490,130 $43,748,531 $16,393,098 +1,888,720 $+6,960,442 $+1,180,728 Increased interest received on, loans is the result of a higher ~average of loans during the year, particularly in commercial loans and in the Personal Credit Department. Income on securities reflects a larger average investment than in 1945, though the December 31 investment was $522,000,000 under that at the beginning of the year. The average yield on the investment portfolio was 1.40% in 1946 compared with 1.47 % in 1945. The increase in other current operating earnings is mostly due to better foreign branch earnings and increased income from commissions for services, such as handling commercial credits, collections, special checking accounts, etc. Whges and salaries, the largest expense item, increased $3,705,840 or 256o over 1945. The staff is larger due to heavy work volume, and we have made substantial wage ing net operating cost of premises, have increased to take care of a larger volume of business, to make necessary alterations, and to replace or restore furniture andi fixtures, machine equipment, stationery and supplies. DEPOSITS Reflecting government withdrawals of deposits to pay off debt, total deposits at the year-end were $4,664,000,000 in. comparison with the total a year ago of $5,143j000,000. If the decline of over $1,000,000,000 in U. S. War Loan Deposit is excluded, our deposits have increased $557,000,000. Of this increase, $368,000,000 is in domestic offices. At the year-end, there were over 885,000 deposit accounts of all types on our books here and abroad. For the fourth consecutive year Thrift deposits have increased, this 20 The American Chamber of Commerce Journal April, 1947

a conservative valuation of $7,000,000. lhe National City Safe Deposit Company, operating safe deposit facilities in our branches in Greater New York, is included in Other Securities at $700,000. The Bank was examined twice during the year by the National Bank Examiner and twice by the Directors' Examining Committee, and the few items classified as losses have been written off or specifically reserved against. CONSUMER SERVICES With our city-wide system of 66 branches and our consumer services, we consider that we are dealing with people rather than with dollars. We pioneered in welcoming thrift accounts more than 25 years ago and personal loans nearly 19 years ago. That our Compound Interest, Personal Credit, and Special Checking Departments should report at the year-end some 775,000 accounts indicates that New Yorkers have responded wholeheartedly to these services. With more goods available to buy, the volume of savings could hardly equal 1945 but the past year was a notable one for thrift. Our total Compound Interest deposits in New York City were $323,000,000 on December 31, an increase for the year of $43,000,000. As normal pursuits were resumed, as veterans took up civilian employment, and as post-war needs developed, the Personal Credit Department was in a position to continue its help to anyone with a good record who could use credit constructively. Consumer credit now is being extended in larger volume than in the most active pre-war months. Among the many kinds of loan service was the further active development of the Veterans Loan Service staffed by experienced former service men specifically to give attention to their fellow G. I.'s. In addition to tens of thousands of personal loans made to those who had returned from service, the Veterans Loan Service made for business purposes alone 2,500 loans which included several hundred loans made under the government-sponsored plan generally called the "G.I. Bill of Rights." Many of these business loans have already been repaid in full, most of them partially so. FOREIGN OPERATIONS We now have 45 active foreign branches, 2 in London, 35 in South and Central America, and 8 in the Far East. As the production facilities of the world turn to peacetime operation, the volume of world trade is rapidly expanding. A part of this is government financed and controlled, such as shipments for UNRRA and for the British Government under the Anglo-American financial arrangements. Some countries are spending their war-accumulated dollars to restore their railways and refill their food bins. Increasingly, trade is returning to more normal channels. Most of these varied transactions require the use of banking facilities, and the world-wide branch organization of the National City Bank with its trained personnel and its own offices and local funds in world commercial centers is in a strategic position to meet the needs. Our Commercial Credit Department, for example, is handling a record volume. Our officers in Head Office and the foreign branches are receiving more visitors and answering more mail than ever before. The London, South American, and Carribbean branches are rapidly resuming normal operations in facilitating trade. The Far Eastern branches reopened in 1945 have reassembled their staffs and are active in serving American exporters and importers and agencies of our Government. (Continued on page 22) L W e Aim to Serve I I AGE PRINTING CO. Operating TONG CHEONG SON, INC. Printers-Bookbinders-Typefounders 321 Barbosa, Manila Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2-79-61 The American Chamber of Ccmmerce Journal April, 1947 21

Experts Join Reynoso Firm Reynoso A lexander Bell Glen D. Alexander, electrical advertising expert, and Col. Don Bell, advertising executive, have recently been engaged by the Reynoso Advertising Corporation, to head its Neon and Advertising Agency divisions. The two experts plan, to introduce in the Philippines the latest developments in advertising production along their specialized lines. Mr. Alexander, who had identified himself with neon advertising since the early stages of neon sign manufacture in the United States, since 1928, has continuously been in the electrical advertising field with various advertising firms in the United States. He has also taken part in the development and production work of the neon directional tubes on floats, one of the numerous inventions used by the United States Armed Forces to win the last war. The gadget was used by the United States Navy to effect difficult night landing maneuvers along mined and obstructed waterways. Mr. Alexander is already working on the installation of the Reynoso neon plant and expects to get the complete equipment in working order before the end of this month. "The high cost of neon advertising in Manila could be cut to the minimum if we use the newly developed manufacturing processes, and if the signs are completely fabricated here. I hope to effect this with the latest equipment and supplies which I have already ordered and which we are expecting to receive the early part of this mon.th," said Mr. Alexander. Col. Bell, who is really a different person, from Clarence Beliel, who used the same name as a radio commentator before the war, had extensive agency experience in newspaper and radio advertising from New York and Philadelphia. Under Gen eral Chenault, he has also distinguished himself as a member of the famed "Flying Tigers" who were the terror of the Japanese Air Force in China at the beginning of the war. After serving in the Office of Strategic Services for sometime after "VJ DAY," he resigned from the army and took up again his first love-advertising. Bibian.o L. Reynoso, president of the corporation, one of the biggest advertising firms in the Philippines, has announced that his organization will engage in all forms of advertising services. Filipino and American specialists will occupy key positions. First to operate is the outdoor advertising under E. Q. Uson, prolfessor in advertising at the Far Eastern. University. Uson has long been in the advertising field. He did advertising production work for the DMHM Newspapers, Manila Daily Bulletin and other advertising agencies before the war. On July 22, 1946, the Tokyo Branch resumed operation on a limited basis to provide financial facilities for United States Government agencies and personnel. Considerable progress has been made in reducing the number of items which represent possible losses due to war causes, and our total loss will be very much less than the amount originally estimated and reserved for. Among the questions now being raised is that of financing exports and imports beyond the period, when countries are using accumulated dollars or are the beneficiaries of government loans. Already in some cases private financing is again possible. In others the risk is so great in,present unsettled world conditions that normal trade financing is not possible. We are cooperating with the Export-Import Bank and other Government Agencies. We recognize, however, that no mechanisms or legerdemain are a substitute for the stability and reliability of the borrower, which are the only sound basis for credit. PERSONNEL We again pay our respect by listing below the name of one member of the staff of the Trust Company who gave his life in the service of his country and whose death was reported to us during the past year. This name raises the total number of gold stars on our flag to 55. KENNETH PETERSEN, Sergeant, U. S. Army Air Corps, formerly with the Brooklyn Office of the Trust Company. Of the total of 1,863 employees of the Bank and the Trust Company who entered military service, 1,686 are known to have been released from the Services so far. We are glad to report that 1,276 or 76% of them have returned to us and have quickly and competently fitted into positions suited to their personal qualifications and experience, gained both in. the Bank and in the armed services. The return of these men and women has strengthened the staff for its increased tasks. The total staffs of the Bank, including Foreign Branches, and the Trust Company now number 11,774, compared with 10,034 at the end )f 1945. Of the present total, 7,914 are in New York City, 1,264 employees have completed over 25 years of service with us and have entered the select circle of our Quarter Century Club, whose membership constitutes the backbone of the Ban,%. There are now 344 of our people who are receiving retirement income. During the year we have taken further steps toward completing the program for funding the past service retirement allowances which was begun in 1944. We have again made an extra year's payment of $1,550,000 out of reserves to the Insurance Company underwriting the annuities, thus completing half of the funding 22 The American Chamber of Commerce Journal April, 1947

program. We have also used funds released from reserves set aside to cover possible war losses and no longer required for that purpose, to addl $3,250,000 to the retirement reserve, which we estimate is now adequate to cover the balance of the past service funding program (after allowing for future tax deductions). Acceleration of the funding program has saved interest, and there have been other savings from the original cost estimates due to turnover of staff. BOARD OF DIRECTORS AND OFFICERS In January, 1946 Joseph P. Grace, the oldest director in service, resigned after completing 39 years of valued association with us. His son, Joseph P. Grace, Jr., President of W. R. Grace & Company, was elected to the Board. We record with sorrow the death during the year of Boies C. Hart, Vice-President and Manager Overseas Division and of Vice-Presidents William A. Creelman, William J. Noonan, Murray S. Wilson and also of Jacob Wohnsiedler, recently retired, each of whom had served as a senior officer of the Bank for many years. GORDON S. RENTSCHLER, Chairman of the Board W. RANDOLPH BURGESS, Vice-Chairman of the Board WM. GAGE BRADY, JR., President Bureau of the Census.. (Continued from page 19) ing of a new census. All preliminary steps have been taken, such as the printing of forms and schedules, preparations of some 50,000 apointments for census boards, supervisors and enumerators etc. All that is now lacking is the apportionment of all the different forms and schedules among the different political subdivisions and their shipment to more than 1,000 local census boards. As soon as the President proclaims the definite census day, enumeration will start all over the Philippines and the collection of related social and economic data. When the census is completed, the present population of the Philippines will be definitely known. Also, accurate information on war mortality and damages will be available. The population census will be supplemented by a census of agriculture, census atlas, and an economic census which will cover real estate, forestry, mines, fishing, electricity, transportation, manufactures, commercial establishments and the professions. Republic 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: Niame Post-Office Address Editor-Robert S. Hendry Trade & Commerce Bldg. Business ManagerOwner-American Cham-""' ber of Commerce Trade & Commerce Bldg. Publisher --- American Chamber of Commerce Trade i& Commerce Bldg. Prirter —Carmelo & Bauer. mann, Inc. 2057 Azcarraga If publication is owned by a corporation, stockholders, ownine one per cent or more of the total anount of stocks: NO Bondholders, mortgages, or other security holders owning one i er 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 Februa'ry, 1947. 1. Sent to paid subscribers - - - 410 2. Sent to others than paid subscribers 1,485 Total - 1,895 (Sgd.) ROBERT S. HENDRY Editor Subscribed and sworn to before me this 8th day of April, 1947, at Manila, the affian exhibiting his A.R.C. issued at Manila on Feb. 27, 1947. (Sgd.) HILARION O. EGUIA Notary Public Until Dec. 31, 1947 Doc. 75 Page 93 Book No. IV, Series of 1947. _. THE BACHRACH MOTOR CO., INC. PORT AREA, MANILA NASH-ENGLISH AUSTIN AUTOMOBILES WHITE-FEDERAL TRUCKS OPERATING RURAL TRANSIT PASSENGER-FREIGHT SERVICE BETWEEN MANILA-APARRI 11 I A BETTER BLEND FOR BETTER DRINKS.O) r\ OLD ITHOMPSON el L IRN::: i:. - O ]} I" Glenmore Distilleries Company I OLPSD Incorporated is Louisville, Kentucky Blended Whiskey, 86.8 Proofw65% Grain Neutral Spirits Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2-79-61 The American Chamber of Commerce journal April, i947 23

STATISTICS ON BANKING RESOURCES, LIABILITIES AND MISCELLANEOUS ACTIVITIES (Prepared by the Bureau of Banking from Report 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................ Other resources not included above.......... Total resources....... Week Ending Week Ending Week Ending Week Ending Week Ending Week Ending Week Ending Week Ending Dec. 21, 1946 Dec. 28, 1946 Jan. 4, 1947 Jan..11, 1947 Jan. 18, 1947 Jan. 25, 1947 Feb. 1, 1947 Feb. 8, 1947 P194,449,747 P211,572,806 P200,986,748 40,189,973 40,102,842 40,001,784 P213,308 40,002 P213,622 40,010 P220,124 54,224 P227,789 P244,447 54,224 54,183 61,560,526 42,992,420 165,614,639 146,670,201 37,000,000 158,820,267 63,174,356 36,197,488 163,040,755 132,299,437 34,000,000 161,822,488 60,157,757 39,420,303 164,963,056 144,724,550 36,000,000 164,052,668 60,815 55,095 43,116 43,083 160,505 177,634 138,032 136,943 39,000 38,000 41,520 40,075 29,860 40,994 180,800 137,832 36,000 40,815 35,590 34,537 177,870 138,629 29,500 40,658 38,281 32,936 174,786 130,546 29,500 40,637 P847,297,773 P848,210,172 P850,306,866 P736,298 P744,462 P740,649 P738,797 P745,316 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.... v 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........ P234,348,223 124,887,084 10,376,891 136,277,600 48,831,75.8 33,414,400 16,396,470 5,375,798 37,000,000 8,091,476 192,298,073 P231,460,399 125,306,507 10,282,933 134,630,399 49,341,787 33,414,400 18,537,045 2,777,189 34,000,000 7,453,810 201,005,703 P228,310,222 125,804,234 10,333,247 139,959,286 P234,647 126,914 11,057 136,988 P243,987 127,615 11,409 139,188 P235,247 127,643 11,472 136,779 P237,416 127,379 11,353 132,640 P240,954 127,537 11,916 135,178 47,916,018 47,000 45,742 52,248 53,667 59,538 33,414,400 33,415 33,414 33,414 33,414 33,414 18,633,174 18,325 17,820 18,014 18,220 18,442 3,265,288 4,211 3,482 3,227 3,199 3,250 36,000,000 39,000 38,000 36,000 29,500 29,500 7,360,468 7,359 7,052 7,887 9,730 9,139 199,310,529 77,382 76,753 78,718 82,279 76,448 P850,306,866 P736,298 P744,462 P740,649 P738,797 P745,316 Total liabilities........ P847,297,773 P848,210,172 q a 9 ft 1 n.3 I 8' n c r 0 p 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 13,718,344 220,000 13,499,020 6,872,308 P 16,267,895 P 507,250 15,806,344 1,783,015 4,978,026 7,031,250 10,202,724 1,204,351 9,594,124 16,524,670 12,874,361 P 16,082 3,833 25,829 2,027 16,015 4,746 133,457 36,366 1,346 3,965 7,582 P 17,230 21,037 5,528 11,796 4,112 115,131 16,078 1,417 4,014 7,582 P 14,363 7,031 23,003 3,471 18,824 7,502 102,155 27,880 1,467 4,023 5,939 P 20,692 3,387 21,799 2,726 14,140 8,270 119,244 12,224 1,464 4,003 5,939 P 19,616 21,956 22,324 2,852 17,362 4,743 127,448 13,620 1,652 3,974 5,939 8,608,989 103,774,148 10,090,174 1,369,638 4,205,956 7,582,254 5,124,473 109,693,664 9,717,558 1,326,768 4,039,610 7,582,266 1,432,330 65,222,778 6,557,177 1,330,152 4,011,249 7,582,266

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SEP 7 1948 THE AMERIC, COMMERCE Published monthly in Manila by the American Chamber of Commerce of the Philippines A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United.States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; John L. Manning, Vice-President; Fay C. Bailey, Treasurer; E. G. Baumgardner, Max Blouse, John F. Cotton, Samuel Garmezy, G. C. Miller, and J. A. Parrish. Leon Rosenthal, Executive Vice-President; L T. Salmo, Secretary. Vol. XXIII July, 1947 No. 3 Contents EditorialsThe Fourth of July....................................................................... The New Ambassador............................................................................. Double Taxation................................................................................... P First Y ear of the R epublic........................................... T h e F la g............................................................ The Manila Electric Company (Meralco).............................. The M anila Railroad Company....................................... The Business ViewB anking and Finance............................................ T he Stock M arket............................................... In suran ce....................................................... Electric Power Production........................................ J R eal E state..................................................... C onstruction...................................................... M achin ery....................................................... Port of M anila....................................] ~ ] O cean Shipping.................................................. ] Inter-Island Shipping............................................. B us L in es..................................................... G o ld.......................................................... L u m b er.......................................................... Copra and Coconut Oil........................................-. M anila H em p................................................... S u g a r........................................................... Textiles.......................................................... Food P roducts................................'.................... Legislation and Court Decisions................................... L ab o r........................................................... Cost of Living Index, 1945-1947 (Table)........................... Trend of Real Wages, 1941, 1945, 1946 (Table).................... Philippine Government Corporations.............................. United States Government Agencies in the Philippines (Directory)... The "Let Your Hair Down" Column.................................. 50 centavos the copy From an official source........... k. V. H. HARTENDORP........... I. P. L. JOLLYE................. FERNANDO E. V. SISON........... C. V. GRANT.................... A. C. HA LL..................... A. H. HENDERSON.............. J. F. COTTON................... C. M. HOSKINS................. 3. A. BONI and H. H. KEYS.... G. EVANS....................... H. W. TITUS.................. F.'M. GISPERT.................. E. DANKS...................... L. D. LOCKWOD................ C. A. M ITKE.................... E. C. VON KAUFFMANN.......... K. B. DAY and M. IGUAL........ M. COOK........................ G. G. GORDON.................. J. TRAYNOR..................... C. G. HERDMAN................. E. E. Selph..................... Official Source................ Bureau of Census and Statistics..... Official Source................... Official Source.....................,,. 'age 61 63 64 66 67 70 70 71 72 72 72 73 74 74 75 76 77 77 78 79 79 80 80 81 82 '82 84 85 93

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THE COMMERCE Editorials THE AMERICAN CHAMBER OF COMMERCE of the Philippines extends its felicitations to the people and Government of the Republic of the Philippines The Fourth on the occasion of the first anniversary of of July the establishment of Philippine independence, on which same day Americans in all parts of the world celebrate the 171st anniversary of the independence of the Motherland, the United States of America. The name, the character, ability, experience, and prestige of every new American Governor-General, and later, of every new High Commissioner, The New formerly occupied the minds of people in Ambassador the Philippines for months before an actual appointment would be announced and that important official eventually reached Manila. The same holds true of the Amsrican Ambassador today, and naturally so, for while he holds a very different position and the official functions he exercises are very different, his position and functions are still of extraordinary importance to the welfare of the Philippines. The ranking American here no longer heads the government, as did the Governor-General; he no longer exercises a general supervision (though no direct authority), as did the High Commissioner; but he does, more definitely than any American official here before him, represent the Government of the United States in all its dignity and power and goodwill toward the Daughter-Republic. The Ambassador here personifies Uncle Sam, and he could perhaps do no better than think of himself as an uncle in the house of his grown-up nephews and nieces, exercising no authority over the affairs of the household, but wielding a wise and kindly influence, encouraging and steadying, always with the best interests of his young kin, rather than his own, at heart, The position of the American Ambassador is and should be quite different from that of the diplomatic representative of any other country here, not only morally by virtue of the fact that the Philippines was once a part of the territory of the United States, but legally by virtue of the special political, economic, and military relations which continue on a treaty basis between the two countries now that the Philippines is independent. The new Ambassador, Emmet O'Neal, would seem tp be eminently suited tp play such a part, and the fact that he has had no previous Philippine experience may prove to be an advantage rather than a handicap. He will have fewer preconceptions and will come here with a more open mind than if he had even only stepped ashore here before on some round-the-world voyage. He will see things from the beginning, as they now are, or, at least, as they will seem to him to be, and he will assume his functions but little affected by past habits of thought and action with respect tp the Philippines. He will escape some of the heart-ache that those of us feel who knew the country before the devastations of the war, and will perhaps be less appalled by the post-war conditions with which government and people are now striving to cope. It will be easier for him than for us to think less of the past and more of the future. His spirit will be fresh and keen and forward-looking, and thus, most of all, he will help this country. It would be something to be desired if the American Ambassador could find some way in which he might, properly, and without, offense, take a somewhat more positive and public part, in the life of the country than is traditional in the retirement and reserve of the diplomatic representative of a foreign nation even in a friendly country. Americans have played too great a part in the making of the modern Philippines, they will still play too important a part, for anything Philippine ever tp seem wholly foreign to jhem. Perhaps the Ambassador could find a hint as to the atAitude and procedure natural and proper to him, in the columns of the American press here. Immediately after the inauguration of the Republic of the Philippines, there was a period when the editors seemed doubtful and hesitant as tjo how freely they should comment on public affairs here. But that period (it was rather funny and wholly unnatural) lasted for only a few weeks, and soon they were expressing themselves witch all their former freedom. That American editors and writers here simply could not bring themselves to act the part of foreigners who must remain more or less aloof from the life of the country, can only be interpreted tb be a result of the fact that the development of the country from a dependency to an independent nation was an entirely natural process which passed from one stage into the other without, seemingly, any absolute break. The sense of oneness, which Americans still feel, their desire to collaborate in every way, is a part of that natural course which things have always taken. The whole attitude is unconsciously an expression of the highest tribute Americans here can pay the Filipinos. 59

60 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1947 II k MOBILGAS MOBILOIL Petroleum products are assisting in the reconstruction of the Philippines. Automobiles, trucks, buses, industrial plants, and marine vessels depend upon quality products for satisfactory operation. MOBILGAS and MOBILOIL are preferred by discriminating car and truck owners. This quality team is taking a big part in National Reconstruction by performing with economy and efficiency. STANDARD-VACUUM OIL COMPANY Drive in at the Sign of Friendly Service

Before the establishment of the Republic of the Philippines on July 4 of last year, Americans and American corporations here were exempted from paying Double the federal income tax on earned income from Taxation sources within the Philippines if, during a three-year period preceding the close of the taxable year, at least 80% of the tax-payer's income had been derived from such sources and at least 50% from the active conduct of a trade or business here. This was in accordance with Section 251 of the United States Internal Revenue Code, which applies to American citizens and corporations doing business in a possession of the United States. When the Philippines ceased to be such a possession, American citizens and corporations here lost every form of exemption except those provided for under Sections 116(a) and 131 of the Code. The first provides that the "earned income" of an American citizen is exempt if he is a bona fide resident of a foreign country throughout the taxable year, and the question immediately arose whether American citizens in the Philippines could be considered as bona fide residents of a "foreign country" during the entire year when for more than half of the year 1946 that country was still under the American flag. The question was apparently settled early this year when the American Embassy made an announcement to the effect that Acting Secretary of the Treasury, Joseph J. O'Connell, Jr. had declared that since there had been no actual change of residence (though there was a change in its legal character), "there was good reason to conclude... that a bona fide residence by an American citizen in the Philippines during the entire year 1946 may be taken to qualify such citizen for the benefit of Section 116(a)". However, the benefit under Section 116(a) is far inferior to that formerly enjoyed under Section 251, and the term "earned income" is given a much narrower interpretation by Treasury officials, being restricted to income earned as compensation for personal service. The Section does not apply to corporations, and where capital is employed in a business, there is a provision limiting the amount which can be claimed as earned income to 20 % of the proceeds of the business, leaving the other 80% subject to tax even though paid in the form of salary. And, as things stand, to obtain maximum benefits, it is still necessary for American citizens and corporations here to account for their earnings and file their income-tax statements on the basis of the year 1~46 as divided into two unequal parts, each subject to different exemptions, July 4 being the dividing-point. WNHILE many other governments exempt or largely exempt from taxation all foreign income of their citizens residing abroad, including profits, dividends, royalties, rents, etc., and also exempt domestic corporations in respect to the profits earned by their establishments in foreign countries, the American Government, - except that it exempts American citizens who are bona fide residents of a foreign country, as already stated, taxes its citizens on their entire net income wherever they may reside, and taxes domestic corporations on their income from all sources, domestic and foreign, with certain qualifications which will be noted in the following paragraphs. Under Section 131 of the Internal Revenue Code, taxes paid in a foreign country by American citizens and corporations on income from sources there, may be deduct ed from the federal tax on their entire net income. But this relief, known as the credit for foreign taxes, still leaves American business men and American corporations abroad subject to a total taxation generally much higher than their competitors pay. Some special relief has been provided for certain corporations operating in foreign countries of the Western 61 Hemisphere and in China. Under Section 15(b) of the Internal Revenue Code, certain Western Hemisphere trade corporations are exempted from paying the surtax (amounting to 14%) though they are still subject to the normal income tax (24%). Furthermore, to be eligible for the exemption, these corporations must derive at least 95% of their gross income from sources outside the United States but in the Western Hemisphere, and at least 90% from the active conduct of the trade or business. Section 261 of the Code, concerning the China Trade Act corporations, exempts income earned in China through granting credit of such income against the net income taxable in the United States, provided a special dividend is declared which is at least equal in amount to the tax which would otherwise be payable to the United States on the income earned in China. These various forms of relief accorded American business abroad,-unequal as this relief may be as between American business in the Western Hemisphere and China, and other countries, have resulted from a recognition on the part of Congress that this type of American enterprise should be facilitated in the national interest. But all these forms are intricate and confusing in application, and it is highly desirable, if not indeed imperative, that a simple, effective, and over-all system be evolved which will encourage and support American business abroad and not place it at a disadvantage versus foreign competition as does the present Code. THE American Government has tax conventions or treaties now in effect with a large number of other countries which carefully delimit their respective tax jurisdictions, define the various classes of income covered by the conventions, and restrict the jurisdiction of each country to income allocable to a permanent establishment situated in the taxing state. A similar convention is under negotiation with the Republic of the Philippines. The concept of a permanent establishment is basic in more than sixty of these conventions for the avoidance of double taxation of income. But the concept has not yet been incorporated into the Internal Revenue Code, and while it is a general principle that a treaty overrides a statute, the formal incorporation of the principle in the tax laws and regulations of the United States would simplify the whole matter and greatly facilitate the determination of income attributable to the carrying on of business and trade in foreign countries by American citizens and corporations. IN so far as American business in the Philippines is concerned, probably the simplest solution of the situation meanwhile would be for Congress to continue the effectivity of Section 251 with respect to that business. That is what the American Chamber of Commerce of the Philippines has recommended to a number of prominent members of the American Senate and House. The move is being actively backed by the Philippine-American Chamber of Commerce, New York, which has also interested the National Foreign Trade Council in the matter. Full justification for the extension may be found in the fact of the special relationship existing between the United States and the Philippines during the period the Bell Act remains effective. It must be emphasized that American business men abroad and American corporations which have branches or subsidiaries in foreign countries are not to be described as "tax-dodgers" in seeking the relief they ask for. The American business man abroad is generally not the type of expatriate who has forgotten his own country and wants to escape the obligations of his citizenship. Perhaps more so than many Americans who have never left home, they are aware of both their privileges and duties as citizens of the United States. Neither these men, nor the American corporations engaged in foreign activities seek to escape equitable taxation imposed on that part (if any) of their

62 AMERICAN CHAMBER OF COMMERCE JOURNAL July,' 1947 Mr, ton s earin X$iiodall -RAY0-N: ----'-C0R' A-0 -T TERE.- -that... POO YOU can: buy 4ight nmy, Thiite W`-Tirostq'r Chimpion hl j ot ati De Luxe a that c onta. s. impro ents in:: tire vem 9.%:10 note a s V" r' 1: and n4acturin' A t n 11 developed dur ng a 'd after th especially e t tineere4 to 'aki.-:4411 — tage. of the extra, strength'of —'rayon cord+ h been tested and proved* It 6 In.mUtions Ues of It sells at r la of 1. service. u r prw. See:>. this safest, longest-wean.ng tire ever 'Ut TODAYI* Rai?" cord b** 4n.tho 6.50and t treAwh voom-A Cord hwU* in"smavr", thw valif wtw*'h2V0w. is avai4ble -.H V6 WHY THX MW-FI-OUSTONt UILUIXt.."".. tHAMPI-00t STAY$ SA#'I.R,. LONG& 'lap' W-1 (tit t, I'd c4li y - 0amPOO" W, ix" EXTRA", POW.- M, AX 'T to 14 -AGA IN 51r, BLOwmn%% Now.'2 iE

income which is earned in the United States. But in foreign countries they already pay the local income taxes, as is only right. If they are subject to double taxation, as now they are,-a taxation which in fact may be far more than merely double the amounts their competitors pay, then they find themselves at a very serious disadvantage because they are American citizens, and that is something that should never be. The last number of the American Chamber of Commerce Journal issued before the Japanese occupation of Manila, which resulted in the complete Note for suppression of this and every other publicaLibrarians tion not continued under enemy control, was the issue for December, 1941, Vol. XXI, No. 12. In 1945, the year of the liberation of the Philippines and the defeat of Japan, only one issue of the Journal was gotten out, that for December, which was numbered Vol. XXII, No. 1. The volume number was not changed in 1946, and the following were the only issues: February, 1946, Vol. XXII, No. 2 April, 1946, Vol. XXII, No. 3 July, 1946, Vol. XXII, No. 4 August, 1946, Vol. XXII, No. 5 September-October, 1946, Vol. XXII, No. 6 November, 1946, Vol. XXII, No. 7 December, 1946, Vol. XXII, No. 8 Through an error, the next issue, that for February, 1947, was numbered Vol. XXI, No. 9. It should have been numbered Vol. XXIII, No. 1. The issue after that, for April, 1947, was numbered Vol. XXII, No. 11, which should have been Vol. XXIII, No. 2. This was the last issue published under the former management. Publication is resumed with the present issue for July, 1947, which, accordingly, is numbered Vol. XXIII, No. 3. All the old files were destroyed and it is not possible to supply any pre-war issues. A limited number of complete sets of the post-war issues are available at P10 for the set of ten numbers ($10 for orders from the United States and foreign countries). The First Year of the Republic FROM AN OFFICIAL SOURCE O N July 4, 1947, the Republic of the Philippines will be one year old. The Government of the Philippines has been patterned after that of tjhe United States and the Constitution embodies a great many features of the American Constitution. Had it been otherwise, there might have been a different approach to the various problems now confronting the Government and people of the Philippines. The post-war problems are indeed overwhelming. Like many other countries, the Philippines suffered severely in the last global conflict. The Philippines faced the tremendous task of replacing destroyed public and private buildings and rebuilding roads and bridges demolished by the juggernauts of modern war. It faced the task of reconstructing its whole economy. There was, too, the problem of reestablishing peace and order and confidence in the government throughout the land. And the government coffers were almost empty when liberation came. Thus the President of the Philippines, the leader of the country, has been hard put to it. He has had to resort to loans from the Government of the United States in order that the Philippines may tide over its budgetary difficulties during the first years. He has made it possible for American capital and technology to aid in the developrment of Philippine natural resources. He has been forced by circumstance to depend to a large extent on American experts to aid the Government in the various problems of reconstruction. He has also been compelled to rely on other than our most seasoned public servants because those most experienced are either still under indictment for treasonable collaboration witjh the Japanese or are not inclined to accept government positions. When, witsh respect to the rebellious Hukbalahap and otjher dissident groups, the policy of attraction fell short of success, he had to consent to an, at times, bloody campaign against them by the Military Police Command. For all these measures, the President has been criticized bitterly, and his detractors have lost no opportunity to athack him by charge and innuendo. They have made him out to be a puppet of America because he consented, they allege, to the conversion of the independent Republic of the Philippines into an outpost of the United States Army and Navy. They have accused him of weakness because, they declare, he has not removed incompetent or dishonest men from office. One local newspaper went to the extent of picturingi him as the proverbial monkey who "sees nothing, hears nothing, and smells nothing." ' ' i But President Roxas has laid out his course of action and will continue to work, in accordance with democratic procedure, to restore the country to peace, normality, and prosperity. During the first year of the Republic much has been accomplished in the way of restoring tjhe people's confidence in their government and their leaders. Orderly processes have been reestablished in accordance with law. While the central Luzon situation cannot be called normal, it can be said that order and respect for authority have been restored over almost the whole of Luzon. There are still clashes between the Military Police and the Hukbalahaps in isolated regions, but compared with the situation a year ago it may be stated that Luzon is relatively at peace. President Roxas knows only too well the deep-seated as well as the more superficial causes of unrest. He, knows that for centuries hundreds of thousands of tenant farmers have been the virtual slaves of absentee landowners. Now they are the possessors of modern firearms, and for the first time in centuries, they acquired the means by which, rightly or wrongly, they felt they could secure justice. Goaded on by leaders whose aims may or may not be purely idealistic, these long oppressed people have organized themselves and taken the law into gheir own hands. President Roxas has sought to ameliorate the conditions of their livelihood through the purchase of big landed estates in Luzon for resale in small lots to them. He al1s has ordered an investigation and survey of the big Davli haciendas for resale to bona fide guerrillas of t'.i region. (Continued on page 89) 63

The Flag* By A. V. H. HARTENDORP "Did we think victory great? So it is,-but now it seems to me, when it can not be help'd, that defeat is great, And that death and dismay are great." WALT WHITMAN AT daylight on Saturday, January 3 (1942), Manilans awoke,-those who had been able to sleep, to see the Japanese flag flying from the tall mast in front of the U. S. High Commissioner's residence on Dewey Boulevard; over Fort Santiago, U. S. Army headquarters at the mouth of the Pasig River; and over Malacafan Palace, the official home of the President of the Commonwealth of the Philippines. The enemy flag,-a red sun on a white field, was also flying over the Army and Navy Club and the adjoining Elks Club, the large governmentowned Manila Hotel, and numerous other public and private buildings. Japanese sentries were posted by twos at all the principal street-corners and in front of clubs, hotels, and apartment houses. The rounding-up of Americans and British in the city had begun the night before, immediately after the entry of the enemy forces late in the afternoon.... * At sun-rise on the 1st of January, two days before this, E. C. Ross, of the High Commissioner's staff, who was in charge that day of the "watch" which had been established,-the Constabulary guard having disappeared, had raised the American flag for the last time. That evening, when it was lowered, G. O. Grey, another member of the staff, knowing that the enemy would probably enter the city the next day, carried the flag out to the broad lawn on the Bay side of the mansion and reverently burned it there so that it would not fall into Japanese hands. E. D. Hester threw the dies from the United States Seal into the Bay, after taking the precaution also of defacing them with a file. No flag flew over the High Commissioner's residenceon the 2nd. The next day, the red-spot flag appeared all over the city, like an eruption of the pox... * Oddly enough, despite the fact that the Japanese had arrived on the premises at around 9:30 on the night of the 2nd, two smaller American and Philippine flags, on the short staffs over the private entrance of Malacafian Palace, remained flying night and day until about 10:30 in the morning of January 4, when a Japanese officer noticed them and exclaimed angrily that they were the only such flags still visible in Manila. A Filipino police-lieutenant then ordered them lowered by two of his men who saw to it that the flags did not touch the ground. They were carefully folded and turned over to the Malacafian functionary who was in charge of the buildings and grounds... The Japanese-edited Manila Tribune, in the issue of April 22, 1942, contained a propaganda story about an American medical officer in Bataan who, after the surrender, was being beaten by several Filipino soldiers. Passing Japanese officers persuaded the Filipinos to let him go, and he was left "cowering in a corner, trembling, just like their stars-and-stripes flag, falling to ruin and destruction.. " *Euerpts from a still unpublished book on the history of the Japanese occupation of the Philippines and of the Santo Tomas Internment Camp in Manila. A delayed and disguised Fourth of July program was I held outdoors. in the Santo Tomas Intern- ment Camp on the night of! August 6,1942.! The closing number was a recital which described the occasion, —the attack on Fort Mc Hen ry. when Francis Scott Key wrote the "StarSpangled Banner". Then the improvised stage was darkened and a man's voice was heard to repeat the immortal words of the anthem to an almost inaudible piano- accompani- May-f lowtr Stsdio:Pbcrograp ment, but just July 4, 1946. The lowering and raising of the as if the hymn Flags at the inauguration of the Republic of had been play- the Philippines ed in crashing crescendos by a military band, the several thousand American and British internees in the audience, though taken by surprise, rose quickly to their feet and stood at attention. Many of them believed that the stage had been darkened to conceal the man who was reciting the hymn, because the Japanese Commandant of the Camp had ordered that no patriotic music was to be played or sung when he first granted permission for the presentation of musical programs. But "Dave" Harvey, head of the Entertainment Committee and the master-of-ceremonies on this occasion, told a friend the next day that he himself had recited the words and that the stage had been darkened only for "effect". A spot-light was to have been directed on his face, but something had gone wrong with the apparatus. However that may have been, the internees for many days remained under the impression of that recital in the dark, that faint music, that large, hushed audience rising as one man. Many said that it was the most moving patriotic demonstration they had ever taken part in... * No celebration or entertainment,-other than the "big inspection" of the Camp (by General Ko, head of the yvar-prisoners camps in the Philippines, one of those condemned to death and executed in 1946) was allowed on 64

July 4, 1943, but there was a children's party in the evening. Just after the close of the usual musical broadcast (phonograph-music over a loud-speaker), the children marched from the bamboo and nipa play-house in which their party had been held, to the plaza in front of the Main Building where most of the internees gathered in the evenings. The children entered the quadrangle in a column of twos. They were dressed in ragged and sketchy imitation of Indians and cowboys, soldiers, sailors, etc. Suddenly it was noted that the little girl at the head of the column was carrying a small, hand-painted paper flag, about 12 inches long,-the Stars and Stripes. All the internees in the plaza rose silently to their feet. Small as it was,hardly to be seen in the dim light, this was the first appearance of "Old Glory" in public display in the Camp... Invocation (In the Santo Tomas Camp, middle of 1944) Thy emblems in the dust, thy name contemned, How long, America, how long is thy power To be absent from this ravaged land, Seized by the mad invader, still unpunished, Still unexpelled! Oppressed, thy people in death and shame But firm in trust, await thy invincible armadas In sea and air, the crash of thy avenging bolts, Thy sure deliverance, America. Assaulted Democracy, come swiftly then, in wrath, And, in the strength and beauty of thy evangel Of the inalienable rights of man, Let the rash, presumptuous tyrant be abased, His forces shattered, his minions dispossessed. Let men sing of freedom again. Lift high thy glorious emblems, deadly and jocund:Thy flag, that starry richness in azure field; In those gay stripes, the red and white of morning; Thy imperial eagle, dauntless wings outstretched, In his iron talons the dread arrows of war. Heaven and destiny, light, blood, fierce power Are tokened there; unconquerable life; Man springing free at last. Swell loud the revolutionary cry: E pluribus unum! The Many as One,In maintenance of freedom. After more than three years of humiliation and suffering, starvation, and death, Santo Tomas was liberated on the night of Saturday, February 3, 1945. More than 600 intuernees, held as hostages in tjhe Education Building by the Japanese garrison, were not released until Monday morning, when the garrison finally surrendered. On that same Monday morning, a brief flag-raising ceremony was held by the internees themselves, the flag being unfurled on the balcony over the front entrance of the Main Building at 9:15. The flag was at first merely held up lovingly by a number of the girls of the Camp as the movie-cameras clicked. Because the loud-speaker system was not yet in working-order, there had been no previous announcement, possible, and internees, soldiers, and war-correspondents gathered only slowly as they learned what was going on. Then a number of internee men drew the flag to the top of the short sloping flag-staff as those present began spontaneously to sing, "God Bless America". There was no leader; no band; no speeches. Simple and almost impromptu as was this ceremony, with out military pomp or circumstance, though in the heart of what was now an armed camp, it, was deeply affecting, and several among the hardbitten army men and newspaper correspondents present, as well as many among the thin and ragged internees, openly shed tears of joy. The men of the flying-column which had rescued the camp had no flag with them, and the flag used was a medium-sized one brought in by S. J. ("Sam") Wilson, then a U. S. Navy commander, whose wife and two sons were among the more than 4000 people interned in Santo Tomas. General Chase had praised him for his thoughtfulness in bringing the flag and said that he would assemble his men right away for the appropriate ceremony, but Wilson told the General thst he had brought the flag for the internees and believed they should be allowed to raise the flag themselves; the General had immediately and generously agreed... * The crack First Cavalry Division, units of which had relieved Santo Tomas, formally entered Tokyo on September 8, 1945. In ordering the flag raised over the Japanese capital,-the flag which had flown over the White House on the day Pearl Harbor was attacked and which had already flown in triumph in Rome and Berlin, General MacArthur said to Lieutenant-General Eichelberger, Commander of the Eighth Army: "Have our country's flag unfurled. In Tokyo's sun let it wave in full glory as a symbl of hpse for the oppressed..." * U. S. High Commissioner Paul V. McNutt, speaking at the inauguration of the independent Republic of the Philippines on July 4, 1946, said in part: "The American flag which waves over us is a world-emblem of freedom, of justice, of equality among men. In a few moments the flag we raised here forty-eight years ago will be reverently lowered Americans and Filipinos alike will feel a sharp pang of sorrow. But the moment will be one of highest glory..." Then to the accompaniment of the American National Anthem, played by a United States Army band, he slowly lowered the flag by means of a white cord, after which President Manuel Roxas, standing a few feet away from him, slowly raised the Philippine flag by means of the same white cord while the Philippine National Anthem was played by a Philippine Army band. Many a Filipino as well as Americans on the platform and in the vast crowd wept at that dramatic moment. Cruisers of Task Force 77 of the United States Seventh Fleet began firing twenty-one gun salutes, as did also a number of Australian, Portuguese, and Siamese warships in the Bay. After President Roxas and Elpidio Quirino, the VicePresident, had taken their oaths of office, Roxas, head of the new-born nation, delivered his inaugural address, and his first reference was to the flag: "The American flag has been lowered from the flag-staffs in this land,-not in defeat or in surrender, nor by compulsion, but by the voluntary act of the sovereign American nation. The flag which was first raised in conquest here has been lowered in even greater glory. The Stars and Stripes will no longer fly over this land, but in the hearts of 18,000,000 Filipinos and in the eyes of many millions more in this part of the world, the American flag flies more triumphantly today than ever before in history..." "And thou, high-towering one,-America.. With Victory on thy left, and at thy right hand law: Thou Union, holding all,-fusing, absorbing, tolerating all, Thee, ever thee, I bring." WALT WHITMAN 65

The Manila Electric Company (Meralco) By H. P. L. JOLLYE Vice-Presiden t Manila Electric Company DURING the last session of Congress the franchise of the Manila Electric Company, in so far as electric light, heat, and power is concerned, was renewed for a period of twenty years from the date of the expiration of the existing franchise, that is to say the extension was granted to March, 1937. The terms of the renewal are similar to the old terms in all respects except that the Company is obligated to spend or invest the sum of P40,000,000 for repairs, rehabilitation, extensions, etc., of the system within five years from the date of the signing of the Act by the President of the Philippines, including the amount already expended since November 1, 1945, the date on which the United States Army turned over the property to the Company for operation. Up to the end of June, some P8,000,000 had already been spent. It was' a sad sight to behold, particularly for the men of the Meralco staff who had spent three long years in Santo Tomas or Los Banfis, all of whom were looking forward to the day when they could get back to work once more. Who could have anticipated such wanton, apish wrecking. As soon as permission could be obtained from the Army, engineers from Gilbert Associates, consulting engineers for Meralco, came to Manila for the purpose of making a survey of the property and recommendations for its reconstruction. It was only after their arrival in July, 1945, that Company officials were able to make an ocular inspection of the hydro-electric property at Botocan for the first time. The same scene presented itself as in Manila; it was a pile of rubble. Fortunately, the dam was more or less intact; its destruction had been too big a job for the Japanese, but they had made merry with the rest of the plant. The power house had been dynamited, and a chunk had been blown out of the penstock. Fortunately, a Filipino employee had been able to close the gate at the tunnel, which saved what was left of the plant from further destruction. But for this prompt action, one that might well have cost the man his life, the embankment of the gorge and all that remained of the plant, including the foundations, would have been washed away by the deluge of water which was discharged from the tunnel and fell some 650 feet to the bed of the river. After liberation, the Army hooked up a few diesel engines which had been left intact, added portable diesels of their own, and later two Destroyer escort-ships were anchored near the breakwater. All these, tied in together, furnished service to the Army, a few hospitals, and several other installations considered essential. In October, 1945, the 30,000 Kw. floating-unit, now known so well to all Manila as the Impedance, arrived, having been towed all the way from Pittsburgh, down the Ohio and Mississippi, and through the Panama Canal, a voyage which took some five months. At about the same time, the National Power Company was able to put into service one unit of 10,000 Kw. at Caliraya which the United States Army had assisted in rehabilitating. Manila was for the time being furnished ample service. '_ — | '.l I.A I'I X'I'I;. I I I I.'. 'a l4i?11A.' _H T A I III I I I i- 10 zt:: m m i ar m i i t fi:::::::::::::::^:::::: 1: 7 t:e I0l u 4.... ill. Number of Manila Electric Company's Customers The Act provides that the Government of the Republic of the Philippines may at any time purchase the property of the Company at a fair valuation. It also provides for a franchise tax of 5% on the expiration of the present franchise in 1953, instead of the 212% now being paid. i- F The granting of this extension, for which the Company is grateful to President Roxas for advice and assistance, and to the members of Congress for their favorable action, enables the Company to proceed with its plans for the future with a feeling of security and with confidence that such funds as may be required can be obtained without difficulty. In February, 1945, after the liberation of Manila, an inspection of the Manila Electric Company power plant disclosed that the retreating Japanese had done a very complete job of destruction. Turbines, generators, boiler plant, and oil storage tanks were masses of twisted iron and steel. This was not a result of fighting, not caused by shelling, but just deliberate, wanton destruction. The office building, which had been reconstructed in 1934 with fine air-conditioned offices and show-rooms, had gone the same way. Only portions of the machineshops remained. The Japanese had run out of dynamite, or time, or both. What was left of these shops was of great value to the United States Army, as they were still probably the best equipped remaining in Manila. V Average Cost per Kilowatt Hour 66

The next importati date was November 1, 1945, when, at 0001 hours (Army style), the administration was turned over to Meralco. Under an arrangement with the Army, Meralco purchased the output of the Impedance and distributed electricity to the people of the City of Manila; a similar arrangement existed with the National Power Company for the output of the Caliraya plant. Much work had to be done before service could be furnished to all. The Army had done a great deal, but the repairs to the system were only such as it required for servicing its own installations. Many miles of lines of the transmission and distribution systems had to be rebuilt, and at that time the only source of supply for materials was, as usual, the United States Army. It was all a mad scramble, everybody wanting service at once. One could not help being thankful that the telephone service was very limited! While it is true the Company had a 'phone, hardly anybody outside of the Army had this convenience. By the end of the year 1945, over 40,000 services were tinnected, and, as shown in Figure 1, the connections increased by leaps and bounds until by the end of 1946 there were 100,000 customers on the lines. At the time of writing the number is 110,000' This compares with 150,000 before the war. However, in 1941, service extended as far north as Baliuag and south to Cabuyao and 'Cavite. The Company, through lack of materials and plant capacity, has been unable to extend service so far up to the present, but extersioas will be made during the res'tof 1947 and the year 1948, always providing power and materials are available. Figure 2 shows the average cost per kilowatt hour to residential customers. In 1941, the average was slightly less than 12 centavos; this has decreased to around 91/2 centavos. The schedule of rates for electric service is substantially the same as in 1941; the decrease is due to increased usage, and therefore more kilowatt hours are being sold on the low step of the rate. The average monthly use has actually increased It* di h. f. *, from 29 kilowat: -t hours in 1941, to 86 E in May, 1947. This _ _ E I astonishing increase I"., in usage is attri- Ilm,r I, buted to several l _ _ _ __ _""_ L__I: I States Army under a lease arrangement. Prior to this, seven engineers experienced in the operation of high-pressure steam-plants, had been brought to Manila by air or steamer. For a month they had been familiarizing themselves with all the complications of a large installation confined in a small space such as a floating barge. At the moment called for in the contract, that is, 4 p. m. on the afternoon of July 1, they were ready to assume all the responsibilities of operation. In September, 1946, the installation of a 4000 Kw. unit, which had been acquired second-hand in the United States; was completed at the Meralco steam-plant. In March, 1947, a second unit of 10,000 Kw. came into service at the National Power Company plant at Caliraya; and in May, 1947, the first service came to Manila from Meralco's plant at Botocan, on the completion of repairs to one of the two 8000 Kw. units. Prior to this, Botocan had been serving the towns of Lucena, Luisiana, and San Pablo with a repaired, smaller unit. Figure 3 shows the generating capacity at the disposal of the Company at the present time, and the capacity planned for the future. By 1950, including the Impedance, 152,500 Kw. will be available, but it is expected that by that time it will no longer be necessary to operate the floating plant. There is, in addition, a plan to increase the capacity of the transmission and distribution systems by new substations and the enlargement of those already existing. This will improve voltage conditions in all parts of the city and other areas served by the Company. The greatest difficulty is being encountered in obtaining delivery of transformers. Although ordered as early as August, 1945, and again in June, 1946, many have not arrived, in spite of promises of early delivery. It is doubtful that the orders placed will be completed much before the end of 1947. Strikes and lack of materials have been the cause of these delays. While this construction is proceeding, (Continued on page 88)...... I I E I I I El E I I I I 11-1 1. I. I Eb It -1 m-FFf:l!.U-~ I.... I I I I I \ttl111 I _ r I I I causes: 1. Increased population; 2. More money to spend; therefore more light used; 3. The Manila Gas Company not being in service, more electric ranges and hotplates used; 4. High cost of firewood; more electric hotplates in small houses, where formerly they were never used. On July 1, 1946, the operation of the floating plant, Impedance, was turned over to Meralco by the United............... I i ] I I I I I I I I I I a L:::- _ _ _ _ I _ IIIICE. _ _4 _A I I I I I,1: _ z1 EL' I I I I - I I I. i I I. I I,:. -L. =:I =:I:::a=. - I I I u I I I L I I I 1-1-1-V lift I I F I I II I I IL I I II f I I1-1 - IL I IL. F II.-f - IU i I I Ii E 11-1 [11 t Ir I - t t II I t L Ia I I-FYI T I I r I I. -LI I I I:- wILLU I L-L-L-1-: - -71= -- III 11 I 11 L L U* Woud A bd Lk bf I 1,I L I IIf I I I.J6 IM I I I lk Li I I I I L-1 L t I I I t ti I i tII -L-U Li if if 1-1 L 1 F.. 1 I I I I II I I I I I I I I I I |_I _ ij[ _;_i L __ri'i[ I il i I I.. [ 1 _ 11 _ l ii _ _ _ _!! _ i _!i _ liiT i E ii i _ i-ar __[ DI! 1 __.. __1[[ _ H itl[! Ill[ ii. I LL.llllll illli~ ~ll lli~l~!,~I I II I 1 1- tL,,I ~1 _ _ _. I1.... i I II I l I l I 1 1 1 I I Il I I ' "r ] 1 F I I 1 1 I 111 1 i l |I ll I Ii 1 -l X1.i Xl I i ll 1l 1 I I I I I I i!l! i 111t 11If1tI1I11111111t 1f11tIf11f111ifi 1ii if1 I I 1947 L 1948 L 1949 I 1950 I 195. 1 Present and Future Generating Capacity

The Manila Railroad Company By FERNANDO E. V. SISON General Manager, Manila Railroad Company HE Manila Railroad Company is onl' of our largest domestic corporations, representing an investment of over one hundred million pesos. As is well known, its railway lines are confined to the Island of Luzon, extending from San Fernando, La Union, in the north, to Legaspi, Albay, in the south, with a number of branches serving areas away from the main lines. The more important branches are the Paniqui-San Quintin, Tarlac-San Jose, Bigaa-Cabanatuan, San Fernando-Carmen, Calamba-Batangas, and College-Pagsanjan. The 1941 kilometreage of the main and branch lines in operation was 1,140.5. ' During the period from 1917, when the Philippine Government acquired ownership of the property, to 1941, many millions of pesos have been added to the investment in the property. These funds were derived from surplus earnings of the Company and from purchases of additional capital stock by the Government. Probably the most important improvement was the construction of the line connecting the Legaspi Division to the Main Line South, completed in 1938. This construction covered about 110 kilometers of line between Aloneros, Tayabas, and Pamplona, Camarines Sur. Other notable improvements were the acquisition of new rolling stock, —locomotives, passenger coaches, and freight cars, replacement of wooden t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ i vn Ail~~~~~/` of f`t ~~r ~- ~X ~~w 0 ii~A~dd;fb,' *[ < Ri as o>>^ '-,;D;, l\ 6;R, c | + 8 + ~~.. a,,>* a ~~~~~~~~~i iL__j|_s.,*+;*X./x.. 'sI bridges with permanent concrete and steel structures, grade rectification, construction of numerous new station buildings, installation of storage tanks for fuel oil and water, practically complete replacement of wooden poles with concrete and steel poles for carrying communication wires, the acquisition of a large fleet of auxiliary highway transportation units, and other improvements too numerous to mention. The property in 1941 may therefore be considered as having been in first-class condition, well maintained and rendering absolutely indispensable service to the people of this Island. Then came the- war. Almost overnight the picture was changed. Railroads are among the first victims of war, affording as they do ready means for the transportation of troops and military supplies. The first development was the taking of the Company under military control by command of General Douglas MacArthur on December 14, 1941. Then came the body-blow, which was almost a knock-out. On December 30, 1941, Mr. Jose Paez, then General Manager of the Company, received a letter from USAFFE Headquarters directing that the military authorities be permitted to disable or destroy such items of rolling stock, shop equipments and rightof-way facilities as was necessary to the execution of military operations pertaining to the defense of the Philippines. The carrying out of this order resulted in very extensive damage and destruction to the railroad property. Bridges were blown up, shop machinery was disabled, and rolling stock collected and burned. The damage resulting from this military policy was later augmented by lack of maintenance during the Japanese regime, by the intensive airraids of American naval and land aviation in 1944 and early in 1945, and by guerrilla activities, looting, and sabotage. A rough estimate of damage and losses sustained aggregates about forty million pesos. To cite a few facts by way of illustration, out of 159 locomotives on hand in 1941, still only about 17 were in serviceable condition several months after liberation; 66 were missing entirely or in such condition as not worth repairing; and 73 were repairable. Out of 208 passenger coaches, 143 are missing. Sixty-five rail motor cars were in service in 1941 and there is only one in operation today, although 36 may be repaired if new motors are provided. Sixty-one out of 100 rail motor trailers are gone, as well as 70 out of 94 baggage and express cars and cabooses. The rolling stock situation as can be seen is not so good. Fortunately, however, the United States Army after taking over the operation of the property in January, 1945, brought in 43 oil-burning steam locomotives, 10 dieselelectric switching engines, and about 1,000 gondola, box, and tank cars. This equipment, except eight dieselelectric engines shipped to Japan, together with undamaged and repaired Manila Railroad locomotives and cars, we are now using. Although the Army operation was for military purposes and not for the benefit of the Company, the Army deserves great credit for the efficient manner in which the lines were put in operating condition. This has been of the utmost importance to the Company in resuming active control of the property. Editor's Note:-The Manila Railroad Company is as yet unable to release weekly or monthly car-load figures, but the management hopes to be able to do so shortly. Mayflower Studio Photograph Reconstructed Palikpik Bridge at Km. 80.25, Main Line South, between College and San Pablo, Laguna. To'al length 118.25 meters; 3-deck lattice spans on concrete and timber piers. Cost of reconstruction, about P400,000. 68

WJith the property so adversely affected by the destruction resulting from the war, the first objective was naturally to restore the railroad lines, rolling stock, bridges, buildings, communication systems, highway lines, and other railroad property to its pre-war condition or better, so as to enable the Company to furnish the transportation facilities so essential to the economic well-being of the country. Probably the most important accomplishment of the Company since liberation has been the restoration of the Main Line South so that through train service could be furnished from Manila to the Bicol region. The United States Army during its operation from January 16, 1945, to January 31, 1946, made repairs, mostly temporary, to 448.11 kilometers of line out of 1,140.5 kilometers, or about 40%. The Army operations were for the most part on t/he Northern Lines, the only section of the Main Line South that was restored by the Army being from Manila to College Junction, a distance of 67 kilometers. The restoration of the Main Line South was regarded as of great importance in supplying railroad transportation to the copra- and lumber-producing districts of Luzon, not to mention the fact that the southern provinces are a source of firewood and other forest products, hemp, fruit, vegetables, fish, etc. Many bridges had been damaged and destroyed, particularly on the section between Masaya, Laguna, and Lucena, Quezon, as well as several important bridges farther to the south. The Palikpik bridge, spanning a very deep ravine a few kilometers south of Masaya, presented an especially difficult problem as the entire bridge was destroyed and the erection of very extensive trestle work was necessary. Several steel spans at other locations had fallen into rivers and were otherwise damaged. However by the dismantling of bridge-spans and other materials on certain branch lines and the San FernandoI Sudipen extension installed by the Japanese, the work of restoring the bridges on the entire Main Line South from College to Ligao, Albay, was finally accomplished and through train service was inaugurated on February 20, 1947. The destructive effects of the war on the railroad tracks were from three causes: direct destruction by bombs, shell-fire, and explosives; physical deterioration due to neglect by the Japanese of maintenance and replacement; and looting of materials, especially ties. When the Railroad was turned over to the Commonwealth Government by the United States Army, even the lines in operation were badly in need of ballast, ties, spikes, fishplates, and bolts, despite the fact that the Army had accomplished a considerable amount of repair and maintenance work. Track conditions were especially bad on portions of the Main Line South between Lucena and Legaspi. The tracks at various places lay almost entirely hidden beneath a heavy growth of weeds, grass, and shrubs. The rails at many locations were out of alignment and not up to grade, and low joints were found on long stretches of track. Many ties had been stolen and others were rotting away. To meet the need for ballast materials, two ballast pits were reopened-the Plaridel ballast pit for the Northern Lines and the Pugod ballast pit for tjhe section between Aloneros and Sipocot on the Main Line South. Considerable quantities of ballast have been distributed where most urgently needed, especially at low bridge approaches. In regard to rails, ties, spikes, fishplates, and track bolts required for the repair of the track structure, new supplies were practically unobtainable and recourse was had to the salvaging of old materials obtained from the dismantling of the San Fernando-Sudipen section and various military spurs which had been installed by the Japanese. In addition, old materials were picked up here and there along the lines, including certain items left by the United States Army, and a considerable number of ties were removed from the Cabanatuan Branch, which might otherwise have been stolen. By such means, the condition of the track has been greatly improved, permitting increased train speeds on both the Main Line North and the Main Line South. As mentioned previously, the United States Army operated 448.11 kilometers of railway line, or about 40% of the pre-war trackage, whereas at present the Company is operating 867.26 kilometers of line, or about 76.4% of the pre-war trackage. The most important line not yet reopened is the Cabanatuan Branch from Plaridel to Cabanatuan, which suffered so badly from war-damage and looting that it has been impracticable to place it in operating condition. The Batmangas Branch, Malvar-San Pablo, Santa Mesa-Taytay, and several smaller branches also have not been restored. Alarge number of station buildings and other buildings both north and south of Manila were destroyed or damaged during the war. Due to lack of funds and materials, it was not possible to make speedy and complete repairs to these buildings. Accordingly, only such repairs as were essential for operating purposes were made on important structures. Permanent reconstruction will have to await the providing of additional funds from war damage claims or other sources. The former communication systems of the Company, -telegraph, telephone and radio, were among the more essential services that were heavily hit by the war, not only because of actual destruction by military action, but also from the effects of wholesale looting. Communication facilities had to be restored on lines where trains were not yet operated and also changes and additions had to be made to the telegraph and telephone systems installed by the United States Army in order to meet the Company's requirements. On the Southern Lines particularly, where (Continued on page 87) Mayflower Studio Photograph used in the erection of the View showing timber false-work Palikpik Bridge. 69

The Business View A monthly review of facts, trends, forecasts by Manila businessmen Banking and Finance By C. V. GRANT Sub-manager, National City Bank of New York HE most vital need after Liberation was for banking facilities to finance the importation of desperately needed consumer goods.. The difficulties attendant upon reestablishing the banking system were gradually ironed out and on June 28, 1945, the first commercial bank reopened-The National City Bank of New York. During the next few months, most of the other pre-war banks reopened, so that by March of 1946, the banks were meeting the primary needs of the business community and merchandise was flowing into the Islands in vast quantities. The first post war weekly summary of the Bureau of Banking was issued for the week ending March 16, 1946, giving consolidated figures for the eleven (twelve since April 15, 1947) operating commercial banks. Comparative figures for the first report and the latest as of June 7 are given below: March 16, 1946 June 7, 1947 Total Resources.................. P750,087,000.00 P759,332,000.00 Loans, Discounts & Overdrafts..... 122,746,000.00 294,628,000.00 Investments...................... 32,577,000.00 56,146,000.00 Demand, Savings & Time Deposits. 358,553,000.00 369,979,000.00 The banking community has shown its faith in the future of the Philippines and its ability to recuperate from the ravages of war as evidenced by a 140% increase in fifteen months in loans to businesses, both large and small. The highest comparative figure reported for loans, discounts, and overdrafts was P313,000,000.00 on March 22. The recession from this figure is due to the sharp decrease in foreign demand for copra with its attendant severe drop in bid prices which in turn has served to make importers take a more cautious view toward the near term retail trade. Total demand, savings and time deposits reached a high of P387,000,000.00 as of March 22 this year. The current figure of P370,000,000.00 reflects increased inventories as a result; of unusually heavy importations of certain lines of consumer goods during the past three months. There is evidence that this situation in a large measure will correct itself during the next few weeks. Cash in banks stood at P185,000,000.00 at the latest report against a high of P207,000,000.00 as of November 23'last year. After setting aside the cash reserves required by law, the banks are in a satisfactory position to meet the needs of an expanding economy. Against a pre-war currency circulation of about P225,000,000.00, the total outstanding as of January 31, 1946, at the time of the first post-war report of the Bureau of the Treasury was P888,000,000.00, a 300% increase. Throughout 1946, the circulation figures showed a steady drop to a low of P645,000,000.00 at the end of February this year. By April 30, monetary circulation had increased to P730,000,000.00 as a result in part from the proceeds of the loan of $25,000,000.00 from the United States which was deposited to the Philippine Treasury Certificate Fund, while an additional amount of $10,000,000.00 was transferred to that fund from the General Fund. Also, as authorized in Commonwealth Act No. 699, the Philippine Government has paid in to the Philippine Na tional Bank as the Depository for the International Monetary Fund, the sum of P22,000,000.00, representing its subscription to the Fund. Circulation again dropped to P714,000,000.00 at the end of May, which represents roughly a 20% decrease in 18 months in circulating currency. The Stock Market May 14 To June 14, 1947 By A. C. HALL A. C. Hall & Company T RADING during the month under review has been the dullest in many months. However, the decline which set in on February 20 when our mining share average registered 43.63 seems to have bottomed out at the moment. The low for the year was registered on May 14 at 32.20. Since then a feeble attempt to rally appears to have petered out, as the closing on June 14 was only.33 above the year's low. The downward trend in stock prices during recent months reflects the slump in local business. The price of copra in foreign markets has declined sharply from record levels prevailing earlier in the year. The market for most imported goods is over-supplied, and some painful liquidation appears necessary before supply and demand are more nearly in balance. This recession in general business has naturally affected stock prices, and has caused steady pressure since March. Public participation is small at present, the market is thin, consequently execution of moderate selling or buying orders frequently causes undue fluctuation. An example of this was the recent rise from 61 centavos to 67 centavos in Mindanao Mother Lode on the execution of a market order to buy 50,000 shares. Following the buying, the stock reacted easily to 63 on renewed small scale liquidation. From a technical viewpoint, dull markets, such as we have recently witnessed, are interesting. Any prolonged period of inactivity deserves close attention, particularly following a decline of some duration. It indicates the drying up of selling pressure, and generally proceeds a change in trend. Turning to individual issues, the only listed mining stocks to register worthwhile gains during the past month are Mindanao Mother Lode and San Mauricio. The balance of the list is unchanged to slightly lower. In unlisted mining issues, Itogon traded between 7 and 8 centavos, United Paracale between 7-1/2 and 8-1/2 centavos, both on fair volume. A few small transactions in Acoje were made between a low of 20 and a high of 21-1/2 centavos. Small transactions were reported in Coco Grove at 2-1/2, Paracale Gumaus at 8 and Suyoc at 5. In the over-the-counter market, Benguets were inactive. Following opening sales at P3.65 the stock declined to P3.50 and closed at P3.70. A large volume of business was transacted in Far East Oil, ranging from a EDITOR'S NOTE.-The pages of "The Business View", begun in this issue of the Journal, are in the stage of formation and organization. It may be that additional departments should be set up and that some of the departments now included will have to be eliminated as dealing with business facts and aspects which do not lend themselves to monthly summary and comment. We would like to have the opinions of Journal readers on this. If they do not find what they want in these pages, or in any section, they are invited and urged to advise either the column editor or the editor of the Journal. All suggestions will be gratefully received and given careful attention. 70

high of 64 centavos to a low of 48 with clc From a speculative standpoint, this is popular issue at the moment. In other sections of the list, tradin restrained. A total of 360 shares Bank c Islands changed hands at P70. This stoc bid, China Banks at P115 bid, and Peopl bid, with no business in the latter two iss surance Section, Filipinas and Philippine unchanged at P19 bid, sellers asking P26 tively. San Miguel Brewery closed P568 the month on sales of 160 shares. Philipp were quiet and only 38,000 shares changed ranging from P1 to P1.06 with closing Sugar Shares were neglected, and the ol ported was 10 shares of Carlotas at P102 Closing bid and asked prices for leac Bais P600-P720, Carlota P75-P105, ] 26, Tarlacs P55-P75. MANILA STOCK EXCHANGE LISTED MI MAY 14 TO JUNE 14, 1947 Antamok Goldfields. Atok Gold Mining Co............... Baguio Gold Mining Co............... Batong Buhay Gold. Big Wedge Mining Co............... Consolidated Mines. I X L Mining Co.... Lepanto Consolidated............ Masbate Consolidated............ Mindanao Mother Lode............ San Mauricio Mining Surigao Consolidated TOTAL SALES 121,540 77,383 14,500 2,250,000 100,500 6,475,000 252,000 259,000 90,000 346,500 132,200 126,800 HIGH P.03 1.12.06.0076 1.22.013.07.345.06.67.20.315 Low < P.028 1.08.06.0068 1.14.01.0675.30.055.60.155.29 )sing sales at 49. immediate attention and action in order to afford coverage about the most vital to the import of commodities and their protection upon arrival in the Philippines. Property in the country g was generally also had to be insured in connection with bank credits to )f the Philippine permit government, industry, and commerce to start the:k closed at P70 huge task of rehabilitation. [es Bank at,50 During the war years Japanese vandalism included the rues. In the In- destruction of insurance-company records, as well as the Guaranty were seizure of funds, securities, and other assets. The looting, and P27 respec- burning, and pillaging of books of accounts and supporting 3 up P48 during documents, statistical reports and records, policy forms, >ine Racing Club bordereaux, agency contracts, treaty reinsurance agreeI hands at prices ments, and similar instruments left insurance executives sales at P1.04. stripped of their tools. In many instances key-personnel nly business re- had been killed, had left the country, or had entered other fields of endeavor. The loss of so many trained, experienced ding issues were men, while serious in itself, became of even greater import Pasudeco P21- when coupled with the loss of records and documents, and imposed upon those charged with the underwriting and [NING SHARES rehabilitation of the companies a'herculean bask. Had these handicaps been the only ones, the task would have been sufficiently difficult, but there was also CLOSE CHANGE the inadequacy of the mail and other communication facil-.028 off.002 ities, the lack of means of transportation, the dire shortage 1.08 unchanged of housing, and all the other aftermaths of war. The Philippines after years of occupation was physi-.06 off.03 cally and financially in ruins, with docks and buildings destroyed, commerce and industry prostrate, and was tem1.16. unchanged porarily without the materials and equipment necessary.011 off.002 even to begin tthe reconstruction..07 unchanged The insurance executive confronted by all of these.31 up.005 problems involved in the rehabilitation of his own companies, not to mention the preservation of his own physical.0575 off.0025 well-being, also had to consider additionally the increased 64 u 03 hazards inherent in and resulting from the ravages of a.20 up.045 brutally destructive war. Suale, nipa, salvaged lumber,.29 unchanged and galvanized-iron sheeting generally were the materials initially used to erect buildings which had to house properm I I V ties in the aggregate valued in millions. While it is obvious that such construction offered relatively little protection _^ A:-. _from pilferage and theft, the risk of fire was of even greater concern, particularly in the congested districts, and in. _ Cebu, Tacloban, and Cabanatuan there were conflagrations which threatened the very existence of those cities. The hazards of conflagration, while admittedly of serious proportion due to construction deficiencies, were greatly increased by the lack of fire-fighting equipment, alarm-systems, and water-supply. Bacolod, a city of approximately 60,000 population, had only seven 50-foot lengths of 2-1/2-inch fire-hose for itjs entire fire departjment as late as January, 1947. While dealing with these problems, the moral probity of the assured, concurrently with the physical risk, occupied the underwriters' attention to a greater degree than ever before. Scarcity of commodities, with subsequent huge, potential, black-market speculative profits, attiracted hordes of get-rich-quick merciants whose only consideration was profit regardless of all moral considerations. The series of disastrous fires occurring in Manila and the principal provincial cities have caused even the Governto June 14 ment Administration concern, and President Roxas recently summoned the executives of all insurance companies writing fire-insurance policies to a conference at Malacainan. The President stressed the serious economic drain upon the limited resources of the Philippines and emphasized the necessity of taking emergency measures in an attempt to 1 Underwriters stop the many fire-losses of a questionable nature. In compliance with a suggestion of the President, firead the liberation insurance underwriters in the Philippines have agreed to hich had been refuse to accept any new or additional commitments on ie pre-war years contents within certain congested districts of Manila and )f which at first other principal cities. Manila Mining Share Averages for March Insurance By ARTHUR H. HENDERSO] Vice-President, American Internationa for the Philippines, Inc. T TPON the overthrow of the Japanese ai Uof Manila, insurance companies w: operating in the Philippines during tU were faced with problems the difficulties c seemed insurmountable but which never1 theless required 71 (Continued on page 87)

Electric Power Production (Manila Electric Company System) By J. F. COTTON Treasurer, Manila Electric Company ge-15,316,000 KWH 1947 1946 Kilowat Hours Kilowat Hours 1941 Avera January........................ 17,543,000 9,286,000 February....................... 17,503,000 8,778,000 March......................... 20,140,000 10,122,000 April......................... 19,601,000 9,849,000 M ay.......................... 19,241,000 11,132,000 June........................... 18,273,000 11,432,000 July.............. 12,333,000 August................................. 14,411,000 September...................................... 15,018,000 October......................................... 16,787,000 November........................................ 15,767,000 December........................................ 17,984,000 Electric production in May, 1947, was 8,109,000 KWH, or 72.8% greater than in May, 1946. However there was a decrease in May over April of 360,000 KWH, or 1.8%, which was due to reduced capacity of the floating power plant, Impedance. Productiorn in June, 1947, was 6,841,000 KWH, or 59.8% greater than in June, 1946. However, there was a decrease in Ju'ne over May of 968,0.0 KWH, or 5%, which was due to a three-weeks' shut cdown of the Impedance. During the last week of June, when electric service was restored to nornial, the output, was at the rate of 21,50.0,000 KWH monthly. Real Estate By C. M. HOSKINS C. M. Hoskins G Co., Inc., Realtors REAL estate sales continue active, with a. wide spread between asking prices and prices at which actual sales are closed. Residential rentals continue at three to four times the pre-war, due to the continued housing shortage. Warehouse space is in heavy demand, at rentals of around P2.00 per sq. m. per month ($.10 per sq. ft.). Office rentals continue at P3.00 to P7.00 per sq. m. per month. Rehabilitation of damaged buildings is speeding up with lowering lumber prices. Operators are paying fabulous prices for roofing and hardware, but figure that with prevailing high rentals excessive costs can be written down to post-war normal in two or three years. Excellent opportunities are seen for hotel and apartment developments, as a huge tourist trade merely awaits available accommodations. Local residents, Filipino and foreign, show a tendency to prefer apartments because of the high cost of domestic servants. Subdivision lots continue very much in demand, especially small lots. -All subdivisions report record instalment sales at higher than pre-war figures. Accurate statistical figures of real estate sales are not yet available. The Bureau of Census and Statistics Bulletin for 1945-1946 reports sales actually registered, without excluding sales made during the Japanese occupation but recorded after liberation. A spot check for one month showed that Japanese occupation transactions registered in February, 1946, represent 66% of the total reported for that month. Construction By 0. A. BONI Vice-President and Chief Engineer, Atlantic, Gulf and Pacific Company of Manila M AJOR contributing factors to high construction costs are the uncertainty of prices and delivery. This condition is world-wide but accentuated to some degree in the Philippines due to its distance from sources of supply of many items. A contractor bids on a project. He must bid a firm price, yet he himself very often cannot obtain a firm price, nor definite delivery date, so he guesses what his materials will cost him. Meanwhile he must buy and hold items as they become available and on a large project as much as 12 months will be required to accumulate enough items to justify proceeding with the work with a fair assurance that the work will not be interrupted through lack of some essential item. Meanwhile conditions have changed, escalator clauses have been enforced, a new tax has been added, labor prices may have changed, and the contractor finds himself hoping that he can break even, with the odds against him. It is an unfortunate situation that will be helped by firm prices and definite delivery dates. The steel industry in the United States has a fairly long work contract and prices should be firm for the next year but escalator clauses will probably be continued "just in case." Suppliers of other construction materials should soon be in a better position to quote firm prices. When contractors can depend upon prices and delivery, construction costs can be stabilized to a great extent. By H. H. KEYS Architect HE situation governing the construction of buildings is still unsatisfactory. Building permits are being issued largely on a temporary basis, pending the adoption of a definite City Plan. Until this plan is finally decided upon, it will continue to be difficult for owners to know just what they may do with their property. Much of the building being done at present is of a temporary nature and creates in many cases a very great fire-hazard. The Government is attempting to make lumber more easily available to the public and much of the construction in the immediate future depends on the success of this move. Delivery of imported materials remains uncertain. Mechanical equipment for buildings takes eight months or more to arrive here. Prices of building materials are down somewhat, notably lumber, gravel, adobe-stone, etc. Some imported materials, however, continue to carry the "escalator clause". Quantities of many materials such as lumber, cement, plumbing, electrical supplies, and metal-roofing are still very limited. A permit is now required to buy galvanized-iron sheets. The reason given for this requirement is that it is the desire of the Government to distribute the supply so the small builder will have an equal chance with the large purchaser to secure needed roofing. Considerable imported materials from the United States are still under license from the United States. For this reason, representatives here are not always in a position to give exact quotations. Building permits for May amounted to about P9,000,000 and covered about 640 permits. This shows an average per permit of a little over P14,000. June building permits (to June 27th) totaled about P4,336,000, covering about 375 permits. This shows an average per permit of a little over P11,560. Many of the permits issued are for very small amounts and cover repairs to small homes, shops, etc. The fact that many permits are being issued for small amounts is a healthy indication that the small property owner is trying to rehabilitate. Permits for May include a three-story mixed concrete addition for St. Rita's College amounting to P300,000; 72

rehabilitation of a reinforced concrete building for the Motor Service amounting to P100,000; a P90,000 rehabilitation for a building on Calle Isabela and many for around P20,000 each. June permits show a mixed concrete construction on Calle Ongpin amounting to P180,000; a P66,000 residence on Kansas Street; a P55,000 concrete construction on del Pilar; a P120,000 steel-frame building on Nagtahan; a P140,000 concrete construction on Calle San Luis; a P900,000 three-story concrete building on O'Donnell. Again there are many permits for very small sums. The South Port Area shows considerable activity. The Heacock Building and the Bachrach Building are being rehabilitated. Other rehabilitations and new buildings are in progress in this area while plans are being prepared by various architects for other work. Machinery By GEO. H. EVANS President and General Manager, Manila Machinery and Supply Co., Inc. A VITAL factor in the rehabilitation of the Philippines is the procurement of machinery of all kinds, including plant equipment, and the supplies necessary to maintain and operate it. Industry in this country is faced with the necessity of replacing not only the equipment destroyed or damaged by military action, but that willfully destroyed or carried off by the enemy or by looters. In addition to the need of rehabilitating the pre-war industries, the changed conditions brought about by the establishment of the Philippines as an independent Republic require the organization of new industries as well as the expansion of some of the older industries which were of minor importance before the war. The United States Army and Navy surplus equipment made available here has played an important part in providing some machinery for immediate use, but the great difference between military and civilian needs renders a large part of the huge surplus stock-pile of little real value in our industrial rehabilitation. The bulk of the burden of supplying Philippine industry has fallen on the American manufacturers of machinery and on their representatives here. All of the pre-war machinery importers have reestablished themselves and some new ones have come in, and are all very active, though their task is proving none too easy. The American machinery industry as a whole is sympathetic to Philippine needs, but problems of reconversion, material shortages, and unsettled labor conditions in the United States have resulted in continually delayed shipments of urgently needed equipment. Deliveries running from 6 to 18 months have not been unusual and in some instances have extended beyond this. Costs are a highly important consideration in industrial rehabilitation, and, up to the present, costs of machinery and machine supplies have continued on the upward trend. Manufacturers are still in the unfortunate position of being unable to foresee what their costs will be on extended deliveries, and orders have therefore been accepted only on the basis of the price which will be in effect at the time of shipment. It is easy to see that both the machinery importer and local industry work under a considerable handicap under such conditions. Another handicap is the loss of libraries which it will take time to replace. Catalogs and specification lists which were not printed during the war have been slow in coming out, partly because of the paper shortage. Though industrial engineers and machinery importers here have all been harassed by these difficulties ever since the liberation, tremendous forward strides have neverthe: less been made. Many industries are operating at almost full speed, and stocks of machinery and supplies are available in importers' show-rooms and bodegas which were wholly unobtainable a year ago. It is reported, too, that production in the United States is hitting its stride, and, barring further major strikes, will soon overtake the present run of accumulated orders. It should be only a matter of months until prices will remain at least firm and deliveries in the majority of machinery lines will return to normal. It is safe to predict that engineering developments since 1941, many of which are still tjo reach the actual production stage, will prove to be of considerable value to industry here when they do reach that stage, and all industry is awaiting their announcement, Finally, we may advert to the fact that never before in Philippine history have the people here had the opportunity to see such numbers of machines in action, many of them new to the country, as they have during the past two years. The people have been quick t;o adopt those machines, large and small, which they found suitable to civilian use, and as a result we shall no doubt soon see an advance in the mechanization of the country's economy which would, otherwise, have taken many years. The Port of Manila By H. W. TITUS Luzon Stevedoring Company Mt 3OST of the readers of this Journal are familiar with the reopening of the Port of Manila after its retaking by the American military forces in 1945. The Port was immediately thereafter and for almost a year, primarily the logistical springboard for the operations of the United States and Allied forces against Japan. After V-J day it continued to be the shipping point for men and materiel moving forward for the occupation of the Japanese Islands and Korea. Al It was realized that it was essential also that the port be opened to the flow of the civilian cargo necessary to get the rehabilitation of the country under way. Commercial operation was notb however, in full swing until the beginning of 1946. z -) cLLd - Z- ()02L >0 Z)LLW W, II i j W < M - j - d' < 0 0 Z a LL ~ < f,) Revenue Tonnage, Commercial Cargo, Port of Manila, 1946, 1947 (For Table, see page 86) 73

The accompanying chart shows the revenue tonnage of commercial cargo handled through the Port since that time and up to and including May, 1947. Examination of the chart and the basic statistics is of interest from a number of points of view. First is that with the admittedly dilapidated and makeshift transportation equipment and warehousing facilities, a total tonnage over the past seventeen months of 2,171,355.60 tons has passed through the Port into the hands of consumers. This amounts to 4208.5 tons of goods a day, or 175.3 tons an hour for every hour of the previous year and five months. It should be pointed out that it has been in no sense a regular flow of cargo but one which varied rather widely from month to month. The variations are in general easily explained. The year 1946 began with a quite rapid climb from 82,303.75 tons in January, to 140,659.13 in March. Labor difficulties in the United States in the winter of 1945-46 readily explain the drop noted in the month of April, and the release of vessels the sharp rise in May. The next "lows" on the chart occur in October and November, and were occasioned by the maritime strike in the United States. The break in the backlog of shipping from that strike is shown in the peak in January, 1947. Since then, there has been a steady drop toward the mean line which is set at an arithmetical average of the total for seventeen months at 127,726.80 revenue tons. The prediction would seem to be that, with the warehouses of Manila as well filled with consumer goods as they now are, and with the difficulties of procuring heavy equipment and construction supplies from the United States, the curve may be expected to cross the average line and drop to around 90,000 tons a month in the near future, eventually rising again and leveling off at about 120,000 tons a month. If the foregoing has seemed to be in the nature of a statistical exercise, the defense is that only by an examination of past, present, and projected future tonnages, can intelligent planning be done to properly rehabilitate the Port of Manila and provide for even better operation at a lower cost to the importer and consumer than that established before the destruction of the Port. In subsequent articles, an attempt will be made to indicate and evaluate some of the measures proposed for the improvement of the Port facilities. Ocean Shipping By F. M. GISPERT Secretary, Associated Steamship Lines IMPORTS. Although the actual number of vessels calling at the Philippines showed an increase from the beginning of the year to the end of May, the amount of tonnage for discharge decreased consistently. From a high of 169,618 manifest tons discharged in Manila during January of this year, 116,847 tons were discharged in February, 121,455 tons in March, 88,455 tons in April, 67,428 tons in May, and only 24,366 tons for the first half or June. Most vessels now are arriving with only part cargoes and many are calling at the islands merely to load. EXPORTS. Export cargoes have shown a steady increase from the beginning of the year with copra, hemp, coconut oil, and ores, being the major bulk commodities, and desiccated coconut leading the general cargo. During the period January-May the principal export commodities have moved to the following destinations in the following quantities: COPRA LONG TONS January February U.S. Pacific Coast....... U.S. Atlantic Coast.. U. S. Gulf Ports........ Europe................ South America.......... Africa................. Oriental Ports.......... U.S. Pacific Coast....... U.S. Atlantic Coast..... Canada................ Oriental Ports.......... Europe................ 24,018 12,533 9,572 14.450 5,950 39,526 6,825 8,301 31,196 2,000 March April 34,420 19,859 11,904 7,020 10,120 23,226 31,446 42,732 609 1,000 7,982 May 26,818 14,240 2,146 20,796 4,001 2,000 12,379 63,093 400 21,970 HEMP, BALES 6,515 8,750 24,195 26,920 - 2,050 909 225 5,425 8,227 11,700 33,869 2,131 4,975 6,190 20,485 300 50 44,292 ORES, LONG TONS U.S. Atlantic Coast..... 16,000 9,000 13,000 10,000 13,700 Europe................ 2,000 - - 2,000 U.S. Pacific Coast....... - - - 2,000 Against a total of 102,824 tons of export cargo which was lifted in January, 117,345 tons were loaded in February, 135,395 tons in March, 142.566 tons in April, and 108,697 tons in May, on the following ships: CARGO EXPORTED FROM THE PHILIPPINES TO ALL DESTINATIONS BY NATIONALITIES 1947 American British Chinese Danish Dutch Filipino French Norwegian Swedish Panamian Honduras Total JANUARY Number of Sailings. 22 8 2 4 1 6 6 3 1 52 Tons............ 52,964 8,888 100 12,126 50 10,307 13,503 4,886 102,824 Per cent........ 51.51 8.64.10 11.79.05 10.03 13.13 4.75 100 FEBRUARY Number of Sailings. 31 7 1 3 1 6 6 58 Tons........... 71,811 7,454 5 4,515 3,181 634 11,692 18,025 28 117,345 Per cent........ 61.19 6.35.004 3.85 2.71.56 9.96 5.36.02 100 MARCH Number of Sailings. 36 5 - 3 13 3 2 1 70 Tons............ 58,863 3,615 6,976 4,274 367 42,924 51.60 7,000 116 135,395 Per cent........ 43.48 2.67 5.15 3.16.28 31.70 3.81 5.17.08 100 APRIL Number of Sailings. 35 10 5 2 7 1 5 4 1 1 71 Tons............ 68,830 24,319 11,874 242 3,524 4,550 17,195 4,082 2,000 4,950 142,566 Per cent..... 48.98 17.06 8.33.17 2.47 3.19 12.06 2.87 1.40 3.47 100 Number of Sailings. 27 11 1 6 7 6 1 4 7 - 1 71 Tons.......... 48,983 7,803 20 13.403 3,227 13,083 3,000 6,676 11,242 1,260 10869 Per cent....... 45.07 7.18.02 12.33 2.97 12.04 2.76 6.14 10.34 1.15 100 74

Inter-Island Shipping By EDWARD DANKS Vice-President and Treasurer, Everett Steamship Corporation IN August of 1945, the U. S. Maritime Commission started the operation of a number of small freight vessels which were released by the Army for that purpose. They continued to add to this fleet until in early 1946, there were 30 vessels of the FS type and 4 vessels of the C1 -MAV-1 type, 3 vessels of the Baltic coaster or N-3 type, and a lumber schooner. These vessels were registered under the Philippine flag and manned by Filipino officers and crews, all of whom had been members of crews of interisland vessels operated by the various private companies prior to the war. These vessels were divided into two fleets and were operated by the Everett Steamship Corporation and the American President Lines. There was a great demand for consumers' goods in the provinces which together with the great volume of passengers, including displaced persons, resulted in heavy outward cargoes but comparatively light cargoes retuirn, with the exception of lumber and logs. These two fleets were operated until early in 1947 when all FS vessels were sold to the Philippine Government, which resold them to pre-war operators and to new operators for private operation. Everett Steamship Corporation continued to operate three C1-MAV-1 vessels of the type of the Snug Hitch and four N-3 vessels of the type of the Northern Wanderer, while American President Lines continued to operate one C1-MAV-1 vessel and one N-3 vessel as well as the lumber schooner. In the second half of 1946, De la Rama Steamship Lines bought three new coastal vessels built in Canada and the Companiia Maritima and the Manila Steamship chartered two FS vessels each and the latter purchased a vessel which had been operating from the Pacific Northwest to Alaska and these vessels proved a welcome supplement to the fleet of U.S. Government-operated vessels. The U.S. Maritime Commission is now in the process of entering into charters with a number of pre-war operators such as the Philippine Steam Navigation Company (the managers of which are the Everett Steamship Corporation), Compafiia Maritima, De Ia Rama Steamship Company, and the Manila Stramship Company for the continued operation under charter of the vessels now being operated by the Everett Steamship Corporation and American President Lines on behalf of the U. S. Maritime Commission. It is expected that more or less regular schedules will be maintained by these operators, the Everett Lines now maintaining regular weekly schedules from Manila to Cebu, Mindanao, Jolo, and Negros ports as well as monthly schedules to Aparri and Northern Luzon ports and a fortnightly schedule to Legaspi, Tandoc, and Tabaco. Compafia Maritima maintains weekly sailings to Cebu, Negros, and Mindanao ports and regular sailings to Cebu and Northern Mindanao ports, while De la Rama Lines have two weekly sailings to Cebu and fortnightly sailings to Iloilo and Mindanao ports, and the Manila Steamship Company maintains two weekly sailings to Iloilo and Pulupandan and fortnightly sailings to Cebu and Mindanao ports. New operating companies which have developed since the war are operating FS vessels acquired when these vessels were sold by the U.S. Maritime Commission through the Philippine Shipping Commission. These companies are General Shipping, Southern Lines, Pan-Oriental Lines, William Lines, Oriental Shipping, and Matute Lines. The new companies are endeavoring to maintain regular schedules, but they are encountering the difficulties which confronted the government operators in 1945 and 1946, which are the difficulties of discharging at smaller outports due to lack of facilities resulting in delays in the dispatch of vessels. While pre-war operators and new operators are endeavoring to reestablish themselves in the trade with pronounced vigour, they view the prospects of lucrative operation with some concern. Outward tpnnage moves in volume to the larger ports only, very little outward cargo being available from the smaller ports. This results in the larger ports being over-tonnaged and minor ports having inadequate service. The inter-port and inward business of copra, sugar, hemp, and the like is curtailed appreciably due to the present practice of ocean vessels calling at outports to load cargo that previously was accumulated from outports to the larger ports. Lumber is available in substantial quantities but the lack of cascos for discharge necessitates discharge to trucks which so delays the vessel that she cannot maintain her schedule. As a consequence, stevedoring costs mount, to a port where the freight rates permitted are non-compensatory. It is believed that an increase in freight rates to permit the economic movement of lumber is imperative. Other expenses in inter-island operation have increased appreciably also, particularly, wages and subsistence of crews. Most pre-war operators desire to rebuild their fleets lost during the war and almost all have claims pending for settlement, but the costs of operation plus present costs for shipbuilding tend to discourage expansion, although the construction of vessels specially designed for the trade. is imperative to successful operation. Land Transportation (Bus Lines) By L. D. LOCKWOOD PE:RHAPS no other business has been rehabilitated pfaster and under greater difficulties than the land transportation business in the Philippines. Upon being liberated, the American operators, foregoing repatriation, went right back to work. Max Blouse, out of Bilibid minus an arm lost on Bataan, Joe Benedict, and Major Olson of Batangas Transportation and LagunaTayabas Bus, out of Santo Tomas, Ed. Normandy of Pampanga Bus, out of Cabanatuan prison camp, W. C. Ogan of Cebu Autobus and Bohol Land Transportation, out of Los Bafnos, Ralph Rawson and "Jimmy" James of Ammen Transportation, from their hide-out in the mountains of Camarines Sur, Joe Thomas of Meralco, out of Santo Tomas, Stoops of Red Line, out of Cabanatuan, and Derrick of Bachrach Motor (Rural Transit), out of prison camp in Manchuria, were all back on their jobs in a few days. Some did not come back,-and never will. Lee Stevens of Meralco, Floyd Cottrell, Manager of Pampanga Bus, and L. O. Corbitt, Shop Superintendent of the same Company, were on Jap prison ships that were torpedoed and were lost. Colonel Andreas, President of Pampanga Bus, went into the Army in April, 1941, was invalided home in October, and died in the States during the war. Dave Minnich, Manager of Northern Luzon Transportation, was taken prisoner by the Japs, escaped the same day and hid out in the hills back of San Fernando, La Union, well protected by guerrillas, until he died shortly before liberation. John Moore, Maintenance Superintendent of Ammen Transportation in Camarines Nortie, took to the hills, joined up with Vinzon's guerrillas, escaped when this force was dispersed at Mb. Labo, but was too weak from hunger and illness tto get to safety and died in the jungle. For Walter Price of Leyte, liberation at Los Banios came a little late; he died shortly afterward at Muntinglupa. When the surviving operators got back to their respective places of business, they found, as a rule,-just nothing. With armies it is always open season for motor vehicles. Practically all of the busses and trucks of transportation operators were taken over by the American 75

Army or confiscated by the Japs and declared "property of tihe Imperial Army of Japan." Shops were stripped of all machinery and tools. Buildings had disappeared,bombed, burned, or torn down by Japs or looters. Money in banks was not available, either because the bank had not yet reopened or the money had been "transferred to the Bank of Taiwan'. Fortunately, however, these prewar operators were able to buy a limited number of trucks from the United States Army. They were reconditioned Chevrolet "6 x 6's" and "4 x 4's". The price originally charged by the Army for these trucks was exorbitant but on long time payments Later on the price was reduced to a reasonable figure. Anyway, with these trucks, the operators got going. The results were remarkable, almost unbelievable. Everybody wanted to travel. The Public Service Commission took the ceiling off rates. The trucks were operated to capacity. The resulting profits were handsome. And it is with these profits, obtained during the last six months of 1945 and the first months of 1946, that the operators have been able to rehabilitate their business, partially, at least. They had looked for the payment of war damages to do this; but their hopes were vain. The Claims Service of the Army has been very exacting and painfully slow in paying claims for busses and trucks taken over by the Army at the outbreak of the war; and the War Damage Commission is only receiving claims. If the operators had to depend on the payment of war damages to rehabilitate their operations they would be out of business today. So they went out and made the money. But of course, the trucks obtained from the Army were not suitable for a public passenger'transportation service and had to be retired as soon as suitable vehicles could be obtained. They served for emergency purposes only. New trucks began coming in and in goodly numbers. Again there were difficulties and disappointments. Blackmarket buyers seemed able to buy these new trucks when old operators could not. In one case a large pre-war operator placed an order immediately after liberation for 100 trucks with a certain factory and the order was accepted by the head office. One hundred trucks arrived from that factory in due time. When tjhe operator went to get his trucks he was informed by the then representative of the factory tiat he could have one truck provided he took it and paid for it within 24 hours. The other 99 were to be distributed to "'other customers". But the purchase of new truck chasses was not the only difficulty. The bus bodies had to be built and there was no lumber, hardware, or other materials available to build them. This difficultly has been gradually overcome, sometimes by hand sawing the lumber from logi brought from the forest. One operator, thinking to overcome it quickly, ordered a large number of prefabricated bus bodies in the United States for supposedly prompt delivery and opened the corresponding letter of credit. Well over a year has elapsed and not one single complete body has been delivered. Shortly after liberation, the Public Service Commission adopted the policy of issuing temporary certificates of public convenience, good to the end of 1947, to any one who could put a motor vehicle on the road and transport passengers or freight. It is estimated that more than 10,000 of these certificates have been issued. Many of these grantees have developed into large operators, operating from fifty to a hundred busses. Others are jeep operators. So that pre-war operators now find themselves not only faced with all the problems and difficulties of rehabili tation, but also with competition stronger than they ever had before. This is slowing up rehabilitation. Resulting conditions are chaotic. Instead of busses operating in an orderly manner on well arranged schedules, it is now a case of "every man for himself". Of the pre-war operators, Batangas Transportation Company and Laguna-Tayabas Bus Company were perhaps 76 the first to get back to a pre-war basis. The two companies, under a joint management, are operating approximately 180 busses on regular schedules with results that are most satisfactory to the traveling public and to the operators. Others, such as Ammen Transportation, Pampanga Bus, Pangasinan Transportation, Rural Transit, Red Line, Pasay Transportation Company, Raymundo Transportation, Halili Transit, La Mallorca, Binfan Transportation, Eastern-Tayabas Bus, Dangwa Transportation Company, Matias Fernando, M. R. Mateo, and Luzon Bus Line of Manila Railroad Company, all on Luzon, Leyte Land, Cebu Autobus, Visayas Transport;ation, Bohol Land, Mindanao Bus, Negros Transportation, and Visayan Rapid Transit (under joint management), Panay Autobus, Zamboanga Autobus, and Jolo Garage, and others are all operating and getting back to their pre-war status as fast as conditions and circumstances permit. Filipino pre-war operators were naturally in a more favorable position to rehabilitate their operations and practically all have done so, some on a larger scale than before the war. In addition to all these we have the horde of post-war "temporary operators". A tremendous increase in traffic is noted. Exact figures are not at all available but according to the best estimate that we can make, passenger traffic has increased from 2 to 21/2 times as compared with pre-war business. Most operators also have rates double pre-war rates. So that the gross business done by land transportation operators as a whole is now 4 to 5 times greater than pre-war. This, of course, is spread out among all operators, including the thousands of new ones. Operating costs have increased accordingly. A well managed business could operate before the war for about 12 centavos per bus-kilometer. The cost is now 35 centavos. Wages and salaries have increased three times. Besides this, the business now requires about double the capital investment. Truck chasses and bodies cost, twice as much or more than they did before the war. So that notwithstanding the increase in business, it will be difficult for operators to keep in the black. Gold By CHAS. A. MITKE Consulting Mining Engineer F OUR gold properties are producing in the Philippines at the present time. Big Wedge (operated by the Atok Gold Mining Company), now mining around 300 tons a day, is stepping up production and will ultimately reach a maximum of 450 tons per day. April and May production amounted to close to 14,000 tons, with a gross value of around P650,000. The bullion is being sent to London for refining and sale. Three shipments have already been made, two of which have arrived. A small amount of the refined gold will be returned to the Philippines for disposal here. Surigao Consolidated, the first underground mine to operate in Mindanao, is working on a limited scale, on surface ores, producing about 100 to 150 tons a day. Within a few weeks or so, the 300-foot level should be opened up far enough to permit mining the better grade ores. When this happens, the bullion production should be doubled. The final product is two-thirds bullion (which needs refining) and one-third lead concentrates (which must be sent to the Selby smelter in San Francisco.) ' Two placer properties are operating at the present time-the Tambis Dredging Co, Inc., and the Harrison and Lang Dredging Ass'n. No production figures are available.

In addition to the above producers, more or less panning is going on all over the country. The people trade this gold locally, for food, clothing, tools, etc. It is impossible to make an estimate of the gold produced in this manner. Four other properties, two of them (Bsnguet and Balatoc) by far the largest gold producers prior to the war, are now in process of rehabilitation. The Benguet Consolidated Mining Company owns 60% of the Balatpc Mining Company. These two properties produced about one-third of the gold mined in the Philippines. It is believed that the Balatoc mine will start its first 1,200-ton mill unit by the end of this year. Ore from Benguet may not be available at the Balatoc mill until some time next year. Quoting from the Philippine Mining Yearbook, 1941: Balatoc Mining Company Ore Reserves as of Jan. 1, 1941. has been invested in Rand Mines, profitable and unprofitable. In April' 1946, the market value of Rand shares was about three billion dollars. A neat appreciation, and that is not all. Fifteen percent of the national income of the Union of South Africa comes from gold mining." Most of the Rand mines have been financed with British capital. It is reported that in order to stimulate gold production, Southern Rhodesia (S.A.) is preparing to subsidize low-grade gold mines to the extent of two pounds (sterling) per fine ounce. Legislation was introduced in the Rhodesian parliament in February, 1947, authorizing this payment to "approved low-grade mines". It is believed that payments will probably be made retroactive to July 1, 1946, if the legislation is enacted. Tons Positive................. 1,414,056 Probable................. 1,090,255 2,504,311 Benguet Mine. Ore Reserves as of Jan. 1, 1941. Per ton at P19.27 P27,248,859. at 17.21 18,763,289. P18.36 P45,998,898. Tons Positive................. 485,350 at Probable................. 918,370 at 1,403,720 Per ton P27.31 21.97 P23.83 P33,457,390. The Baguio Gold Mining Company is also in process of financing and rehabilitation. Its ore reserves, as of January 1, 1941, were given as 221,723 tons at P18.07 -totjal P4,006,454. Mindanao Mother Lode Mines, Inc. is sinking a main hoisting shaft to a depth of 700 feet, and expects to get,its 200-ton mill in operation by the end of this year. According to the 1946 annual report, the ore reserves are as follows: 50-Vein.................. Tabon-Tabon............. Tons 159,259 at 117,547 at Ton P32.73 P 5,112,296. 90.07 10,652,741. P15,765,037. Lumber By E. C. VON KAUFFMANN President, Philippine Lumber Producers' Association ONSIDERING the difficulties in securing equipment, the lack of transportation, and the high cost of food and labor, the lumber industry has made rapid progress in rehabilitation. The present lumber output is mostly cut on portable mills, which are not too efficient or lasting, and will eventually have to be replaced. If producers expect to get into the United States market when Philippine restrictions on export are lifted, they must ship out only high-grade lumber. The United States market today is anxious to have Philippine Mahogany back in the form of veneer logs, flitches, and lumber. It, is important, however, that when the time comes, only the best will be shipped, as otherwise our lumber will not successfully compete with mahoganies imported from Mexico, Central America, and South Africa. Philippine Mahogany must be put back on the United States market soon if we want to get a good share of that business. United States manufacturers have during the past two years made large investments in timber concessions both in Central America and South Africa. In pre-war years, the Philippines exported to the United States about 40 million board feet of lumber a year. This represented only about 5% of the total output of 800 million feet. Should the present restrictions be lifted, it is safe to say that the lumber export would be much lower than the pre-war average. Only a few mills could supply high-grade export lumber with the present mill machinery. The local market would not be affected by what high-grade lumber would be exported, especially if producers were limited to say 20% of their production for export. Lumber must be air-dried from 60 to 90 days if the lumber is to get to its destination in good condition. This means that stocks must be kept in the local yards in sufficient quantities to enable the producers to make regular shipments, but not many of them are in a position to keep large stocks on hand. Based on shipments of say 200,000 board feet, producers would require a stock continuously on hand of not less than 1 million board feet of export grades. With proper Government supervision in grading export lumber, it is safe to say that the percentage of the production allowed for exportation would not affect tjhe local supply. It might benefit only a few producers, but it would reestablish Philippine Mahogany on the United States market and would prepare the.way for others who may be in a position to export later. At a recent meeting with lumber producers, President Roxas expressed his desire to help the small operators by allowing 20% of their production to be exported in the form of logs and flitches. United States veneer manufacturers would take these logs and flitches at good prices, The World gold situation may be described as in a state of flux and uncertainty. In London, gold is currently reported to be selling at $39.25. Here, in Manila, a year ago, it brought as high as $70. At present it brings about P3 per gram, but in the provinces, panners get as high as P4 per gram. In 1940, according to the Philippine Year Book of 1941, there were 49 gold-producers. These treated 4,541,348 tons of ore, producing therefrom a total of P76,320,119. The average value per ton ofthe ore mined was P16.81. It is estimated that the 1941 production was nearly 25% greater than these figures. One of the greatest gold-producing areas in the world is the South African Rand, which produces about 425 tons of gold annually, valued locally at $435,000,000. This is said to be equivalent to the total production of Soviet Russia (estimated), Canada, and the United States. Quoting from the Mining World of January, 1947: "Half of the Union of South Africa's ten million persons live on gold mining, directly or otherwise. Moreover, the mining industry takes up the slack when times are dull in other lines, the labor surplus being absorbed by the ever-hungry Rand shifts. Gold is South Africa's economic balance wheel and constitutes 70% of all exports, ranking ahead of diamonds, coal, copper, corn, wood, and sugar... Before the institution of lend-lease (in World Wars I and II), when the neutrals demanded gold in payment for goods and services, it was South African gold that kept the Empire afloat. Something over $700,000,000 77

but exporters must be careful to ship only the best veneer logs if United States buyers pay prices for them as such. Few log producers ever shipped veneer logs in pre-war days, and unless they ship logs according to specifications, this business will not prove as profitable to them as they expect, The Manila market is n6w well stocked with lumber. Reconstruction is not going on as fast as expected owing to the high cost of labor and lack of other materials which are not available yet in quantity. Pre-war lumber arrivals in Manila averaged about 8 million feet a month. Today, double this quantity is being brought into Manila, and if transportation facilities were increased and freight-rates were more reasonable, there would be a surplus which would bring prices of lumber down further. Prices will adjust themselves according to supply and demand. EDITOR'S NOTE: Executive Order No. 65, effective July 15, provides for export licenses for logs and veneer flitches generally limiting export by producers to 20% of the previous month's production. Licenses are to be issued by the Philippine Sugar Administration, Aviles Street, in accordance with provisions of Executive Order No. 3 as amended by Executive Order No. 23, and upon recommendation of the Director of Forestry. Executive Order No. 66, effective July 15, establishes a new schedule of domestic retail ceiling prices on lumber. Kev items in pesos per 1000 board feet of finished lumber are: molave, P850; narra, P815; dao, P675; red lauan and tangile (Philippine mahogany) P290; apitong, P285; and white lauan, P270. Copra and Coconut Oil By MANUEL IGUAL General Manager, El Darado Trading Company, Inc. AND KENNETH B. DAY President, Philippine Refining Company HERE is every indication that the peak of copra prices was reached during the early part of April of this year when sales to Europe were recorded at as high as $257.50 f.o.b., but almost immediately after recording these prices the market, both in Europe and in the United States, took a most unexpected course in the face of seasonal decreased production. Buyers in Europe became extremely cautious in view of the virtual absence of buying interest in t4he United States, not only in coconut oil and in copra, but in a number of other competing oils and fats. By the end of April, the market had declined to below the $200-level and actually, at the beginning of the month of May, we were faced with sellers offering unsuccessfully at $190 f.o.b., per ton of 2240 pounds. The sharp decline in Europe and the complete absence of buying interest in America was, of course, of great concern to local industry, and toward the end of the first week of May local newspapers brought to the attention of the Government the unprecedented decline in copra prices and the very gloomy prospects of the industry as, at this stage, small sales to Europe had been recorded at $185 with every indication of the market going lower, as even at the above 'recorded price buying interest was extremely narrow. The continued absence of buying interest on the part of the United States resulted in European buyers lowering their ideas continually and even though volume transacted was very limited, by the middle of May buyers' ideas in Europe had declined to $150 to $155 with buying interest still extremely narrow, and with every indication of prices going lower. However, immediately after the middle of the month when it was hinted that as a result of the Philippine Government's efforts to get the International Emergency Food Council to decontrol copra or at least to liberalize quotas, and there were indications that the IEFC was prepared to increase allocations, there was an immediate change in sentiment in the market with indications that prices would improve. On the 18th of May, a report was released that the IEFC had granted new allocations amounting to the equivalent of 130,000 tons of copra, and from the low of $155 at which small sales had been reported a few days previous, immediately better inquiries developed on the part of European and other than United States sources, with the result that a fair amount of business was done during the last ten days of May all the way from $175 f.o.b. to $180 f.o.b., at which prices there were further buyers at the end of the month. The American market for coconut oil at no time was in a position to permit Ametican buyers to follow European equivalents and, while a small volume of copra was done to the United States during the month, it was only during those occasions when Europe could not absorb the quantities offered, all of which was bought at somewhat under European equivalents. The coconut oil market opened in the United States with sellers offering 1612 cents and no buyers. During the first half of the month small business was reported at 14 cents, later at 1412 cents f.o.b cars Pacific coast, but by the middle of the month a fair amount of business was reported done to soapers at 12 cents, doubtless in the expectation of copra prices going lower, but as a result of the increased allocations by the IEFC the market improved slightly during the second half of the month and while very limited amount of business was reported, moderate sales were recorded at 1312 cents f.o.b. tank cars Pacific coast by the end of May. The Manila market for copra, even though dull at certain periods, was maintained independently strong relatively, mainly because of small local arrivals, also because one of the main local mills was strike-bound throughout the month and local demand for coconut oil with present small output permitted local mills to pay prices which were not in relation with foreign markets. Copra exports during May totaled 70,000 long tons, of which just about 50 % was shipped to the United States chiefly on prior controls, and the balance to Europe, Canada, with small shipments to South Africa and South America. Manila Hemp By MURRAY COOK International Harvester Company of the Philippines HE period under review covers May, 1947. In Davao, the month started on a weak note, with pressure to sell noticeable by loose-hemp dealers. Hemp was offered in such volume that exporters' warehouses were filled to capacity and purchases confined to replacement of daily pressings. The result was a steady decline in the price of Davao "Jl" from an opening price of P38 per picul loose, to a nominal price of P30. Dealers showed considerable resistance at this level, and at the end of the month, the Davao market closed very steady. The non-Davao grades were much less spectacular in the decline than were the Davao grades. Grades "F" and "I" opened at nominal prices of P44 and P40 per picul loose, and closed at the end of the month at P40 and P36, showing a decline of P4 per picul. Grade "Jl", on the other hand, opened at P34, reached P32, and at the end of the month showed resistance at this latter figure. During May, three post-war records were broken. A total of 70,943 bales were inspected, approved, and certified by the Fiber Inspection Service. Davao production, amounting to 38,612 bales alone, is included in this figure. Shipments totaled 93,555 bales, an all-time post-war high. So, in spite of the declining market, the month ended with stocks.in the Philippines smaller than they had been at the beginning. 78

An interesting factor in the production figures is the increase in quantity of lower grades, at the sacrifice of Grades "E", "F" and "I". The decrease in production of the better grades in Davao is attributed to the many inexperienced strippers now operating in that district. The quality will likely improve as time goes on. The decrease in quantity of non-Davao higher grades undoubtedly is due to the attractive prices being paid for U.K. Grades "J2" and below. In general, planters concede that non-Davao "J2" at P28 per picul loose is far more profitable to them than the non-Davao "F" at P40 per picul. Sugar By G. G. GORDON Secretary -Treasurer, Philippine Sugar Association HE Philippine Sugar Association was re-constituted after liberation and the present officers are as follows: President................ Vacant 1st Vice-President......MANUEL ELIZALDE 2nd Vice-President......E. J. C. MONTILLA 3rd Vice-President.....CARLOS RIVILLA Secretary-Treasurer..... G. G. GORDON Alternate Treasurer.....G. H. WILKINSON Executive Committee: EDUARDO ROXAS STEWART JAMIESON FEDERICO PEREZ CELSO LOBREGAT DR. ANTONIO A. LIZARES JUAN COJUANGCO C. R. DE LUZURIAGA The office of President was held by Mr. Rafael R. Alunan, whose recent untimely death is a great loss to the sugar industry and to the country in general. For the 1946-1947 crop fifteen centrals milled. With the exception of three centrals, all have now completed operations. The estimated out-turn of the crop is 1,079,432 piculs, equivalent to 67,212 long tons, all of which will be utilized for domestic consumption. It is at present expected that the 1947-48 crop will see twenty centrals in operation, and the production will be very considerably augmented due to the extended cane plantings. No authoritative estimate has yet been made for the 1947-48 crop, but it is expected to be between 300,000 and 400,000 long tons, of which the greater part will be available for export. Prior to the war there were 43 centrals in operation. Many of these were destroyed or badly damaged, and in some cases it is improbable that they will, be reconstructed. In some areas plans for reconstruction of one central to handle the cane formerly milled by two or more centrals have been adopted. Textiles By JAMES TRAYNOR RRIVALS of American textiles in the port of MalA nila for the months of February, March, April, and May are estimated to be between 90,000 to 100,000 cases and bales. Local prices and sales remained good until April when there was a sudden drop in prices, which decline continued until many qualities were being sold by importers at prices showing up to 3Q% loss. A few qualities which were not over-plentiful held fairly well in price. The large arrivals for the four months under review were bound to depress local selling prices. These arrivals probably represent more than the normal ATLANTIC GULF & PACIFIC COMPANY OF MANILA EXECUTIVE & SALES OFFICE 222 REGINA BUILDING TEL. 2-83-64 ENGINEERING DEPT. & SHOPS PUNTA, SANTA ANA TEL. 8-63-32 *0 0* ENGINEERS-CONTRACTORS 0 * 0 I DISTRIBUTORS FOR FAIRBANKS MORSE & CO. GARDNER DENVER CO. CHAIN BELT CO. ARMCO INTERNATIONAL CORP. PIONEER ENGINEERING WORKS YORK CORPORATION LINCOLN ELECTRIC CO. WALSH REFRACTORIES CORP. MARION POWER SHOVEL CO. 79 79

80 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1947 arrivals for an entire pre-war year. The situation was further aggravated by further arrivals during May from Japan of about 2 million yards of cotton goods and a reported further arrival due within the next month of about 14 million yards of Japanese cottons and rayons. During the month of April a large number of pending orders were cancelled with American suppliers. The off-take compared with pre-war years continues to be very good, but at prices which show importers a high average loss. Toward the end of May there were indications of a slight recovery in local selling prices. Except for a few selected items, no new orders are being placed with American mills and no important ordering is expected to take place until local selling prices show importers a fair return. Food Products By C. G. HSRDMAN Marsman Trading Corporation A T the time of liberation from the Japanese, Manila A and the Philippine market generally were absolutely bare of imported foodstuffs of any description. Small quantities of various food items were made available in various ways from Army importations, but the civilian population in general, for a continued period, was unable to secure such food supplies in any quantity. This continued until August, 1945, when the steamer Bering brought the first commercial itnportations of foodstuffs, that shipment consisting principally of wheat flour and powvdered milk. From that time on, importations became more frequent and arrived in greater volume, but the items remained limited in variety. Very fair quantities of wheat flour were secured from both the United States and Canada. Milk, both evaporated and powdered, also was made available to the Philippines in quantities in excess of prewar consumption but entered rapidly into consumption locally, leading importers to order ever increasing quantities. Canned meats in limited quantities were available from late 1945 onward, and coffee in tins was also freely available from early 1946 on. Other major items of food imports, namely, canned fish and canned fruits and vegetables, could only be secured in very small quantities until the summer of 1946 and even then were limited. Exceptions to this as far as canned fish products go, were canned squid of which large quantities were imported. This is an item which was not extremely popular before the war although imported in certain quantities, but in 1946, it served as a substitute for other varieties which could be obtained only in small quantities. Also canned herring in extraordinary quantities was brought in late in 1946 and this spring. Both the squid and herring have been selling locally well below landed cost for the last few months. Stocks are still heavy. During the maritime strike in the fall of 1946 very considerable quantities of foodstuffs were ordered by the numerous importers. These orders piled up in United States ports and were shipped all at more or less the same time after the end of the strike, with the result that much larger quantities of such goods as could be obtained were received, than could be promptly consumed. Ever since the first of this year, the Philippine market has been heavily. overloaded on flour, canned milk, some types of canned fish, various prepared cereals, canned fruits, etc. The majority of those importing merchandise were inexperienced in handling food products and did not have established outlets for their imports. The majority of them were inadequately financed, and lacked sufficient warehouse facilities to take care of their imports. In the past several months there has been a tremendous amount of distressed food-product imports in the market constantly forcing prices down, with the result that importers in general have been selling almost all imported foodstuffs the last several months at considerable loss, the losses averaging from 15 to 40% on absolute landed cost; in some cases losses have been even greater. The market is still faced with that condition. At the present time, there is sufficient flour in stock in the Philippines to fill all demands until at least September 30. Canned-milk stocks are sufficient to carry on until even a later date. Canned fruits and canned vegetables in general can be purchased locally at least 25%o cheaper than they could be brought in from the United States. Consumers in general have been benefited by this state of affairs, but food importers in general have taken and are continuing to take tremendous losses. It is unlikely that this condition will change materially for at least 90 days. In the meantime, indications to hand are that there will be some price reductions in the United States on foodstuffs in general. Flour prices almost certainly will be lower both in the United States and Canada than the peak prices this past spring. There have been several price reductions on canned milk but the period of peak production in the United States is now past, and prices seem to be more or less stabilized in that commodity. Further reduction appears improbable. All information tp hand from the United States is that packers in general are already sold out on the summer and fall pack canned fruits, etc., that these will continue to be in short supply, and that price reductions are unlikely. Canned fish also promises to be in short supply and there is no sign of decrease from the prevailing high cost. Canned meats are constantly better supplied; there have been some price reductions and some further reductions are very probable. -- -- LUZON STEVEDORING COMPANY, INC. MANILA I

Ju'ly, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 81 Legislation and Court Decisions By EWALD E. SELPH Ross, Selph, Carrascoso & Janda ACOMPLETE list of all bills passed by the last Congress and signed by the President, is not yet at hand, but among those enacted are the following which may be of interest to business men: Act 104 makes the government corporations, agencies, and instrumentalities subject to the same taxes, duties and charges imposed on others except on goods purchased, sold, or distributed for relief purposes as may be determined by the President. There are several bills increasing registration fees, and court and sheriff's fees. Fees in connection with registration of, and various documents required of, aliens are considerably increased. Americans are subject to the provisions for making annual report in person to the Immigration Bureau and the annual notation on the alien registration certificate requires a P5.00 stamp. The amendment to the Bulk Sales law provides for filing with the Bureau of Commerce of the sworn statement of names and addresses of creditors of vendor, or mortgagor now required to be furnished the vendee or mortgagee. An appropriation was made for the dredging of Manila Harbor, Pasig River, and navigable esteros. A patent law was adopted and a patent office created which will also have jurisdiction over copy-rights, trademarks, service marks, and trade names. Congress enacted an amendment to the insurance law providing that a life insurance policy becomes incontestable for fraud or misrepresentation if allowed to remain in force for two years during lifetime of insured. There is an act prescribing compensation for dependents of a transportation company employee killed in an accident arising out of his employment, not less than P20,000 if aircraft, and not less than P5,000 if land or water transportation. This covers accidents outside the Philippines if the deceased was contracted or hired in the Philippines. The new anti-dummy law prescribes stiff penalties for violation of nationalization measures, and gives the informer 25% of the fine. The chemical engineering bill was vetoed by the President. The revised house rental bill was also vetoed, but an executive order was issued further regulating rentals. The bill to increase the duty on rubber boots and shoes was vetoed. The Securities and Exchange Commission was given authority to grant extensions of time for presentation of proof of ownership of securities under Act 62, not more than six months at a time and not more than an aggregate of two years from June 30, 1947. There is a new act revising the mode of measuring timber for internal revenue purposes. The charters of the new cities created, Rizal, Dagupan, Lipa, and Ormoc contain provisions similar to those in the Manila Charter authorizing them to tax and fix license fees covering almost every mercantile activity. We do not have any recent decisions of the Supreme Court in which business men would be interested. I FAITHFUL TO 1 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 BE WARE ALCALDES-the all day smoke OF in boxes of 50 IMITATIONS! BELLEZAS-a small, light cigar in boxes of 50 ALHAMBRA CIGAR & CIGARETTE MFG. CO. 31 TAYUMAN, MANILA r~~~~~~~~~~~~~~~~~~~~~~~~~~

82 AMERICAN CHAMBER nO PCrOMMTPrR T'TTImD~AT T1.._. 'l nA - -- - - ---- - -%V.V- oZ%%.pj\o Jy jI.JA JmLAj JUIY, 191' I Labor From an Official Source URING the period from July 4, 1946, to April 22, 1947, the Department of Labor intervened in 48 strikes and 21 other labor disputes which were not accompanied by strikes, involving approximately 23,203 laborers. Of the 48 strikes handled, 22 were amicably settled, 16 were certified to the Court of Industrial Relations, 3 were brought by the parties themselves to this Court, and 7 are still pending action and settlement. The Department registered and permitted to operate 225 labor organizations, collecting as registration fees the sum of P1,125. A total of 1,213 cases were filed with the Workmen's Compensation Division, of which 441 were closed; 24 were fatal. For death cases, the sum of P57,850.36 was collected. This included P2,990.75 for burial expenses. For the 417 non-fatal cases, P47,318.91 was spent by the employers for compensation and medical and hospital expenses. Some 598 claims for unpaid salaries and wages, involving P305,409.36, were filed with the Wage Claims Division. Of this total, 182 were amicably settled, with a collection of P32,080.64; the rest were either withdrawn, dismissed, or referred to the Division of Public Defenders. Of the 926 claims filed with the Division of Public Defenders, 663 were disposed of with a collection of P141,804.40. The remaining 263 wage claims are still pending in court. Safety engineers and inspectors of the Safety Inspection Division inspected 1,984 establishments, 32:5 steamboilers, and 797 pressure-vessels. The Medical Inspection Division handled 306 cases of injured and sick laborers for the purposes of the Work COST OF LIVING INDEX OF A WAGE EARNER'S FAMILY IN MANILA BY MONTH. 1945 TO MAY, 1947 Prepared by the Bureau of Census and Statistics 1941 =100 Fuel, All Fod House Clothing Light Miscel. Items Food Rent 6 and laneous (59.15)2 (8.43)2 (0.62)2 Water (17.86)2 _______ __(13.92)2 1945 March........... 559.8 635.5 236.4 1695.2 237.1 674.4 April............ 598.8 702.1 236.4 1611.9 254.3 661.4 May............ 689.7 799.4 236.4 2041.5 380.7 734.8 June........... 745.8 872.7 236.4 1860.8 410.8 788.7 July............ 751.5 886.9 236.4 1664.2 393.4 794.1 August.......... 724.7 848.5 236.4 1484.5 397.6 774.3 September....... 708.4 852.4 236.4 1034.0 367.7 709.1 October.......... 735.3 937.8 236.4 1045.1 466.1 499.5 November........ 747.8 955.8 236.4 1017.0 480.2 499.9 December........ 669.4 852.7 236.4 1030.3 401.9 463.0 1946. January.......... 603.4 759.2 236.4 984.0 363.8 434.8 February......... 547.2 656.3 236.4 940.3 369.5 460.7 March........... 525.9 631.0 236.4 940.1 340.4 445.2 April............ 556.2 684.1 236.4 910.3 345.5 435.9 May.......... 545.1 675.6 236.4 762.5 342.3 409.6 June............ 538.7 666.4 236.4 737.9 343.3 404.2 July............. 552.7 704.3 236.4 598.9 341.3 364.6 August......... 477.9 590.0 236.4 384.7 320.9 346.3 September....... 477.9 591.3 236.4 378.7 314.5 347.2 October.......... 487.4 587.2 236.4 382.7 405.8 342.7 November........ 484.8 607.8 236.4 406.4 346.5 305.2 December........ 461.9 570.8 236.4 371.9 344.7 302.1 19471 January.......... 394.1 468.2 236.4 381.9 326.2 282.5 February......... 389.5 454.9 236.4 356.3 344.8 281.4 March........... 378.6 440.1 236.4 295.2 334.7 279.4 April............ 360.3 413.3 236.4 269.2 328.3 271.6 May............ 354.2 I 404.4 236.4 250.9 325.4 269.4 1 Weekly average only 2 Weights \ -___________~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I I COMPLETE LINE OF AGRICULTURAL MACHINERY AND EQUIPMENT FOR MODERN FARMING, RICE MILLS, RICE THRESHERS, ENGINES, PLOWS, HARROWS, TRACTORS, CORN GRINDERS, CORN SHELLERS. I INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMII,LAS, MANILA CEBU BACOLOD DAVAO / INTERNATIONAL Trucks 1 I I -~~~~~~~~~~I I

T,11,t 1 QA7 AMERICAN CHAMBER OF COMMERCE JOURNAL 83 I J LLy7 J.:fT I -.V-. "L'%AL- - &. %O -. -- - - - - - - - - - % -- - -- TREND OF REAL WAGES OF LABORERS IN INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS IN MANILA, BY OCCUPATIONS: 1941.1945-19461 Prepared by the Bureau of Census and Statistics........ Average Daily Wages Index Daily Real Wages2 (Pesos) (1941-100) (Pesos) Occupation l1941 1945 1946 1945 1946 1945 1946 Blacksmiths.................... 2.55 4.25 5.57 166.6 218.4 0.62 1.07 Boilermen...................... 2.82 6.40 5.20 226.9 184.3 0.94 1.00 Carpenters...................... 2.75 6.02 6.66 218.9 242.1 0.97 1.28 Chauffeurs...................... 1.64 4.05 5.78 264.9 352.4 0.59 1.11 Cigar-makers................... 0.96 2.83 4.87 294.7 507.2 0.41 0.93 Compositors.................... 1.864 7.29 333.6 396.1 0.90 1.40 Draftsmen.................... 3.28 7.54 7.48 232.9 228.0 1.10 1.44 Electricians..................... 2.67 5.20 7.82 194.7 292.8 0.76 1.50 Foremen....................... 3.35 7.38 7.96 220.2 237.6 1.08 1.53 Lathemen.................... 2.60 4.88 7.31 187.7 281.1 0.71 1.40 Linotypists..................... 2.64 10.22 10.17 387.1 385.2 1.50 1.95 Machinists...................... 2.23 5.75 6.48 257.8 290.5 0.84 1.24 Masons..................4 5.90 6.58 304.1 339.1 0.86 1.26 Mechanics (auto)............... 3.00 7.46 6.90 248.6 230.0 1.08 132 Painters........................ 1.83 7.77 ' 6.28 424.5 343.1 1.14 1.21 Plumbers....................... 2.00 4.80 7.67 240.0 383.5 0.70 1.47 Tinsmiths...................... 1.72 4.23 5.04 245.9 293.0 0.62 0.97 AVERAGESkilled laborers................. 2. 34 5.93 6.76 261.7 306.1 0.87 1.30 Common laborers............... 1.24 3.27 4.53 263.7 365.3 0.66 0.87 IPreliminary, subject to change as more data become available. 2Wage in terms of goods and services it can buy. This is obtained by dividing the 1945 and'1946 wages by the cost of living index for the year 1945 (683.3) and 1946 (520.9) respectively. Commonwealth Act No. 444 limits regular working hours to eight a day. men's Compensation Act and Employers' Liability Act, The Bureau of Immigration undertook the investiga97 of which were given the necessary estimates in per cent tion of reported illegal entry into the Philippines, took steps or degree of disability. The Division gave free medical to exclude or repatriate undesirable aliens from the country, treatment and medicine to 1,513 laborers and em- and submitted proposals for consideration of the Congress. ployees. Among the proposals are the reduction of the quota allotOut of a total of 5,718 registered applicants for work, ment from 500 to 100 for each nationality, the grant; of the Marine and Employment Division placed 2,736 for power to immigrant inspectors to exclude aliens not proemployment in private firms as clerks, steno-typists, car- perly documented, and the increase of grounds for deportapent,ers, drivers, mechanics, and common laborers. tion. F. H. STEVENS & CO. announces that |LYON Steel Equipment can now be had! Our friends in the Philippines have patiently waited for LYON'S equipment. Steel has been difficult to obtain and the factory had to be reconverted from wartime work. IN STOCK STEEL SHELVING CONVEYORS Closed Type TOOL STORAGE Open Type FOLDING CHAIRS Counter Type IRONING TABLES. OTHER MAJOR STEEL PRODUCT LINES ON THE WAYSTORAGE CABINETS KITCHEN CABINETS STOOLS LOCKERS DESKS SHOP BOXES TOOL BOXES TOOL STANDS WORK BENCHES DISPLAY EQUIPMENT For Detailed Information Telephone 2-86-13 F. H. STEVENS & CO. EL HOGAR FILIPINO BUILDING, MANILA, PHILIPPINES

84 AMERICAN CHAMBER OF COMMERCE JOURNAL Tllvl 1Q47 _." ' I_ _lTT ~ 84_ AMRIA CHMEFCMEC TUNLT1~ O I [! I - * If it's made of. oMAAZIES.:: FFC... Have BOOKS * MAGAZINES * OFFICE & SCHOOL SUPPLIES * GREETING CARDS * RUBBER STAMPS * SEEDS * TOYS * CONFECTIONERY *ART SUPPLIES * DRAFTSMEN'S SUPPLIES * DRY SEALS * BUILDING BULLETIN & DIRECTORY BOARDS * CHURCH ANNOUNCEMENT BULLETIN BOARDS & STEAMSHIP SIGN S -also MANUFACTURING STATIONERS PUBLISHERS * PRINTERS * ENGRAVERS Distributors Of l "ACME" Batteries Adams "CHICLETS" Automatic Time Stamps AMERICAN CHEMICAL PAINT CO. Insecticides, Powdered Hormone Sprays "ARNOLD" Fountain Pens & Pencils BATES Products: Numbering Machines, Perforators, Punches; Stapling Machines & Staples; Paper Fasteners; List Finders; Telephone Index; Ink Pads BOORUM & PEASE "STANDARD" Blank Books & Loose Leaf Devices "BRILLIANTSHINE" Metal Polish "BURPEE'S" Seeds, Bulbs, Sprayers COLE STEEL Filing Cabinets: 3x5, 4x6, 5x8, 6x9 1-drawer to 10-drawer sets-letter size, legal size; Card Boxes & Supplies "COPY-RIGHT" Copyholders "COSMO" Phonograph Records "DENNISON" Crepe Paper, Tags, Labels, Sealing Wax "DIXIE" Paper Drinking Cups, Paper Cup Holders & Dispensers "DIXON" Pencils, Crayons, Erasers "ESQUIRE" Paste & Liquid Shoe Polish "EVERSHARP" Fountain Pens, Repeater Pencils, Leads; "EVERSHARP" Schick Injector Razors "HELEN ARDELLE" Chocolates "HEYER" Duplicators & Supplies "HIGGINS" Inks, Paste, Glue, Sealing Wax "HUNT" Penpoints, "BOSTON" Pencil Sharpeners, "EVERHANDY" Clips IDEAL STENCIL Cutting Machines & Supplies "L.E.B." Binder Clips, "CADO" Moistners & Fountnbrushes LE PAGE'S Paste, Glue, Mucilage, Liquid Solder LIETZ Drafting Instruments & Supplies "OLD TOWN" Brand Office Machine Ribbons & Carbon Paper "PLASTICO" Rok, "PLASTICO" Clay, Paste, Varnish, Water-Proof Mending Plastic "ROYAL" Typewriters SINCLAIR & VALENTINE Printing Inks Radios & Phonograph Records "SUNSHINE" Straws, "HYGEIA" Sippers, "SUNSHINE" Cups & Souffles THOMPSON Automatic Time Clocks "TRU-WCDPY.PHOTE" Machine UNITED AMERICAN Printing Metals WEBER COSTELLO Genuine "HYLOPLATE" Blackboards, Dustless Chalk, Blackboard Erasers PROMPT, DEPENDABLE SERVICE WITH AN OLD, RELIABLE FIRM PHILIPPINE EDUCATION COMPANY, INC. I Philippine Government Corporations From an Official Source CINCE July 1, 1946, the National Development ComS- ppany and its subsidiaries have accomplished the following: The textile mills produced 1,829,449 lbs. of yarn for weaving purposes valued at P1,867,705.92 and 400,024.41 11s. of sales yarns valued at P402,392.23. The Sabani Estate, in Nueva Ecija, despite unsettled conditions in the province, produced a total of 23,000 cavans of palay, out of which the NDC received as its share 4,191 cavans to be applied against the purchase of the lotjs. Damage tp the Malangas coal mines suffered during the war was repaired so that approximately 1,000 tons of coal were being shipped from the Malangas pier tpo Cebu. The work at Malangas was far ahead of schedule as the work contemplated was to have been finished within the five montLs' period covered by the plantilla. Because of widespread destruction caused to the three canneries of the National Food Products Corporation, most of the work of the corporation during the period under review was dedicated to the reconstruction and repair of its fishponds in Capiz and its nursery in Pampanga. By maintaining the operation of the nursery, the corporation was instrumental in keeping the price of bangus (fingerlings) at a level ordinary fishpond owners can pay. The National Footwear Corporation manufactured 40,289 pairs of men, women, and children's shoes, valued at P454,482.78, which are being sold at from P18 to P25 a pair for men, P10 to P20 a pair for women, and P7 to Pl10 a pair for children. A store was opened at the Pureza compound in Santa Mesa for the convenience of the public. The Insular Sugar Refining Corporation appropriated P850,000 for the rehabilitation of its refinery in Mandaluyong, Rizal. In accordance with a contract entered into by the corporation with t~he Paniqui sugar mills, whereby the latter agreed to convert muscovado and panocha into refined sugar at the mills using the process and some equipment of the corporation, approximately 25,000 bags of refined sugar were produced in Paniqui. The Cebu Portland Cement Company carried out an intensive program of repair work to the extent that the cement plant is already operating at full capacity and at almost pre-war efficiency. The company is supplying the Philippine government, the United States Army, and t~he general public. The People's Homesite Corporation reconstituted the destroyed survey plans and technical descriptions of the subdivisions, Kamuning section, and began the survey of other portions of tJhe estate still unsubdivided. The corporation was merged with the National Housing Commission. As its most notable achievement for this period, the National Rice and Corn Corporation distributed rice in sufficient quantities in Manila and in the provinces, resulting in the lowering of the price of the cereal to a level reasonably within the reach of the masses and in the crippling of the rice black-market. Editor's Note:-The work of other Philippine Government Corporations will be summarized in the next issue of this Journal. 0 1104 Castillejos (Entrance thru Arlegui at A. Farnecio) Quiapo J[ SUBSCRIBE TO THE JOURNAL

Ju-tv, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL...r R; Uv --. United States Government Agencies in the Philippines From an Official Source The introductory contribution to this monthly column is a hitherto unpublished classified directory of the various United States Agencies now active in the Philippines. Their activities will be reviewed in subsequent issues of the Journal. Representing the President of the United States and the Department of State: American Embassy: Dewey Blvd. at Fisher Ave., Rizal City; Chancery, Rosaria Bldg., Dakota St., Tel. 2-79-21; Emmet O'Neal, Ambassador (absent); N. P. Davis, Minister Counselor and Charge d' Affairs ad interim. Operating as integral parts of the EmbassyAmerican Consulate General: MRS Bldg., Plaza Cervantes; Tel. 2-79-76; Ernest E. Evans, Consul in Charge. United States Information Service: Roces Bldg., Soler St., Tel. 2-69-86. The Armed Forces operating under agreements with the Republic of the PhilippinesUnited States Army: Philippine University Area, Quezon City; Tei. City Hall Ex. Univ. 6; Maj. Gen. George F. Moore, Commanding General. United States Air Force: Fort Wm. McKinley, Rizal; Tel. City Hall Ex. McKinley 6; Lt. Gen. E. L. Eubank, Commanding 13th Air Force. United States Corps of Engineers; F. B. Harrison St. at Fisher Ave., Rizal City; Tel. City Hall Ex. Maned 6; Col. Clarence Renshaw, District Engineer, Manila District. (Also a Rehabilitation Agency.) United States Navy: Philippine Sea Frontier, Dewey Blvd., Rizal City; Tel. CitWy Hall Ex. Anchor 145; Rear Adm. H. H. Good, Commander Naval Forces Philippines. United States Coast Guard: Philippine Sea Frontier, Dewey Blvd., Rizal City; Tel. City Hall Ex. Anchor 553; Lt. Cdr. J. N. Rasmussen, Commanding Officer. United States Military Advisory Group to the Republic of the Philippines: Phibcom Hqrs., Pasig Blvd., Tel. City Hall Ex. 443; Maj. Gen. Albert M. Jones, Chief of the Military Mission. Rehabilitation Agencies operating under the general supervision of the American EmbassyCivil Aeronautics Administration (U.S. Dept. of Commerce): Philippine Bureau of Aeronautics, 506 Aviles St.; Tel. 8-72-68; C. B. Griggs, Airways Engineer in Charge; Coast and Geodetic Survey (U.S. Dept. of Commerce): Philippine Bureau of Coast and Geodetic Survey, Oracca Bldg.; Tel. 2-66-06; Cdr. Charles Pierce, Director Manila Coast Surveys. Corps of Engineers (U.S. War Dept.): In respect to rehabilitation of ports and harbors. See "Armed Forces". Fish and Wild Life Service (U.S. Dept. of the Interior): Office Quonset No. 2, Chancery Compound (formerly High Commissioner's site), Dewey Blvd.; Gilbert E. Wardwell, Officer in Charge. Maritime Commission: In respect to rehabilitation of inter-island commerce. See "Establishments operating under specific statutory provisions." (Continued on page 86) I I I THEY CERTAINLY WERE FORTUNATE C'"-d. "Creation of the....'^,,n s do, City was premised on laCiudoad Q#-on;49 its becoming the capitol site. It would It P i co-:-^ j not become a real city Li+C?^^^~. C~' - s if it did not become PRE-WAR newspaper were fortunate." clippings -Ed. Manila Post e stil hae h eites We se eefor sale in UNIVERSITY, ESPANA, QUEZON CITY, CAMP MURPHY- and NEW MANILA. Lots: 300 to 5,000 sq. m. 20% down-the rest payable in monthly installments. MAGon DALENA ESTATE, IN 211 CONSOLIDATED INVESTMENTS BLDG. PLAZA GOITI I I I m!1 I KODAK PHILIPPINES, LTD. 104-13th St., PORT AREA, MANILA TEL. 2-84-17 IS THE HOME OF EASTMAN PHOTOGRAPHIC MATERIALS AND APPARATUS 0 FELIPE B. OLLADA & ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS TAX CONSULTANTS Wish to announce to their Clients, Friends and to the Public that they have moved to and Reopened their Offices at 506 CHINA BANK BUILDING Dasmarifias St. Manila, Philippines I I I. I --

86 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1947 1. EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Vancouver Seattle Tacoma PACIFIC TRANSPORT LINES To and From California P1 FERN LINE To and From North Atlantic Ports Philippines hilippines Gulf Ports -1 EVERETT ORIENT LINE Serving the Orient EVERETT LINES Serving the Philippine Islands 223 Dasmarifias St., Manila Public Hoalth Service (U.S. Social Security Adminis. tration): Old Museum Bldg., north of Manila Hotel, Port Area; Tel. 2-69-16; Brig. Gzn. Howard F. Smith, Officer in Charge. Public Roads Administration (U.S. Federal Works Agency): Philippine Bureau of Public Works, Post Office Bldg.; Tel. 2-79-01; F. C. Turner, District Engineer in Charge. War Damage Commission: In respect to corn. pensation for damage to public property. See "Establish, ments operating under specific statutory provisions.2 Weather Bureau (U.S. Dept. of Commerce); Resaria Bldg., Dakota St.; Tel. 2-79-21; Foster V. Jones, Officer in Charge. Establishments operating under specific statutory provisionsEmployees Compensation Commission: Zurbaran St.; Tel. City Hall Ex. 285; C.F. Hanson, Officer in Charge. Foreign Liquidation Comrhission (U. S. Dept. of State): City Hall Bldg.; Tel. City Hall Ex. 155; John B. Stetson, Commissioner for the Pacific. Maritime Commission: 212 Ayala Bldg., Juan Luna St.; Tel. City Hall Ex. 4-87-75; Capt. A. W. Smith: Officer in Charge. (Also a Rehabilitation Agency.) Philippine Alien Property Administration: Maritima Bldg., Juan Luna St.; Te!. City Hall Ex. 474; James McI. Henderson, Administrator. U. S. Commercial Company (U.S. Reconstruction Finance Commission): American Consulate General's Office, MRS Bldg., Plaza Cervantes; Tel. 2-79-76; M. L. Kalush, Officer in Charge. (This office is inactive except for liquidation of accounts.) Veterans Administration: TVT Bldg., F. Torres St.; Tel. 8-65-26; Earl M. Sawyer, Manager. War Damage Commission: L. R. Aguinaldo Bldg., Juan Luna St.; Tel. 2-98-61; Francisco A. Delgado, John O'Donnell, Frank A. Waring (Chairman), Commissioners, (Also a Rehabilitation Agency.) The Port of Manila (Continued from page 73) REVENUE TONNAGE HANDLED PORT OF MANILA January 1946 - May 1947 Tel. Overseas 2-87-82 2-87-92 Tel. Interisland 2-63-82 Tel. Executive 2-97-38 I 0 ~ i r I D.. a-.Il TEL. 2-55-72 PHILIPPINE DISTRIBUTORS FOR W. P. FULLER & CO. (PAINTS, OILS, GLASS) WYETH, INCORPORATED (DRUGS, PHARMACEUTICALS, BIOLOGICALS) INTERNATIONAL GENERAL ELECTRIC CO. (HOTPOINT APPLIANCES, ELECTRIC WIRING & ACCESSORIES) 0 FILTRINE MANUFACTURING CO. (COMMERCIAL WATER COOLERS & FILTERS) 0 SEEGER-SUNBEAM CORPORATION (COMMERCIAL REFRIGERATED BOXES) THE GENERAL TIRE & RUBBER CO. *. NATIONAL DISTILLERS PHILPROM I 1946: January............................... February............................... March................................. April.................................. May................................... June................................... July................................... August................................ Septem ber............................. October................................ November............................ December............................. 1947: January............................... February............................... March................................. April.................................. May................................... TOTAL........................... Arithmetical Average for Seventeen Months 82,303.76 111,048.26 140,659.13 74,115.56 143,128.83 121,780.80 103,998 57 99,244.86 109,035.76 56,356.80 75,956.55. 141,421.10 J 227,3'.%,05 191,44.12 19 5,/,6t,0 162,447.49 135,553.28 2.171,355.60 (s 7,22680) Subscribe Now to the Journal L L I Ia~ ~ ~~~~~~~~~~~~~~_t

July, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 87 Insurance (Continued from page 71) This action was taken by the underwriters as an emergency measure and is effective until July 31, 1947. The majority of the fires involved in the losses which prompted this emergency voluntary action on the part of underwriters, were in bodegas and stores containing large stocks of flour, textiles, and canned goods, the prices for which have declined so materially since the first of the year that in many instances the commodities may be purchased from street-peddlers at prices less than the landed cost at the docks in Manila. Marine Insurance As a step in the general return to normal peacetime methods of underwriting the ocean-cargo business, underwriters have discontinued the practice of assessing "surcharges" in addition tb basic cargo rates, thus necessitating an upward revision of the basic rates currently charged. The effect of these simultaneous changes will be a reduction in the total premium charges currently applicable tb most voyages. In this connection, it is pointed out that, notwithstanding the end of hostilities, shipping conditions are far from normal, owing to limited port facilities and other factors. Delays are frequent and costly. In too many cases packing is inadequate and of inferior quality, resulting in breakage and shortages. Theft and pilferage continue to cause serious losses. Waterfront and shipping strikes have caused many long delays and costly deviations and transhipments. The transition is to take place in two steps. A scale of additional rates is to apply to the present basic rates, this to be followed by a revised basic rate incorporating the additionals. The revised rates contemplate no change in the existing Marine Extension Cover. For the time being, additional premium will continue to be waived in respect to vessels built for ocean tirade, classed 100 Al Lloyds, Al American Record, or equivalent, not more than 25 years old or less than 1,000 net tons, subject to existing limitations relative to ownership; and the extended coverage relating to delays in transit, deviations, etc. remains in effect. The revised rates went into effect on June 1, 1947, in the United States. The Manila Railroad... (Continued from page 69) many sections had suffered from looting of wires, new copper wires were installed. By the end of June, 1946, an efficient communication system had been established all the way from San Fernando, Union, in the north, to Ligao, Albay, in the south. The United States Army brought in 45 locomotives and about 1,000 freight cars, which were turned over to the Company when the Army relinquished control of the property on February 1, 1946. This equipment, together with old Manila Railroad rolling stock and such units as the Company was able to recondition subsequently, are now being used in train service. Unfortunately the Army brought in no passenger coaches and a large proportion of the former coaches had been destroyed. To meet this difficulty, a number of the open gondola cars brought by the Army were converted for passenger use by extending the sides upward, putting on roofs, and installing benches for seats. This was necessarily a rather crude resort, but was taken as an emergency measure in order to provide as much passenger accommodation as possible under the I AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR II. HENDERSON Executive Vice-'resicdent Sixth Floor, Wilson Bldg., Manila Telephone: No. 2-64-68 Cable: "Underiters" Managers in the Philippines for:COMMERCIAL CASUALTY INSURANCE COMPANY THE EAST AND WEST INSURANCE COMPANY FIREMEN'S INSURANCE COMPANY THE FULTON FIRE INSURANCE COMPANY GRANITE STATE FIRE INSURANCE COMPANY THE HANOVER FIRE INSURANCE COMPANY MILWAUKEE MECHANICS' INSURANCE COMPANY NATIONAL UNION FIRE INSURANCE COMPANY NEW HAMPSHIRE FIRE INSURANCE COMPANY PACIFIC NATIONAL FIRE INSURANCE COMPANY SECURITY INSURANCE COMPANY Fire and Allied Lines CASUALTY - AUTOMOBILE - MARINE - REINSURANCE SOLE DISTRIBUTORS SORIANO TRADING CO. M. R. S. BLDG. TEL. 2-79-61

88 AMPRICAN CHAMBER OF COMMERCE JOURNAL July, 1947 prevailing conditions. The acquisition of new modern locomotives, coaches, and cars is obviously one of the principal projects that must be undertaken by the Company as soon as adequate funds are provided. Before the war the Company conducted extensive highway operations through the Benguet Auto Line in the Baguio district and adjacent lowlands, the Luzon Bus Line in the Central Luzon Area, and the Mindanao Motor Line with headquarters at Cotabato. All units belonging to these three lines (390 in number) were commandeered by the USAFFE and were either lost or destroyed. After the liberation a number of surplus United States Army highway vehicles were obtained through the Government Procurement Commission and converted for commercial use. Subsequently, most of these have been replaced with the latest type of streamlined busses. The Company is therefore now able to supplement its rail service with modern highway transportation units, even if to a much more limited extent than prior to the war. The most pressing problem confronting the management of the Company has been and continues to be the financial one. When the property was turned back to the Government, the Company was practically without funds and there was urgent need for working capital. Accordingly, in December, 1945, the Philippine Congress, on the recommendation of the President, enacted Commonwealth Act 707 appropriating P20,000,000 for the rehabilitation of the Manila Railroad Company, subject to funds becoming available. Of this amount, P10,000,000 has since been released, which has enabled the Company to meet its most pressing obligations and devote certain amounts to absolutely essential rehabilitation work. However, until the balance of the authorized fund of P20,000,000 and compensation for war damage is received, the Company will necessarily be handicapped in rebuilding the property so that it may efficiently and adequately perform the transportation service which is so vital to the general program of rehabilitation in the Philippines. The plans for future improvements are therefore contingent upon the necessary financial requirements being provided. If these funds are forthcoming, there can be no doubt that, the Manila Railroad Company will be able within a reasonable time to restore and modernize its transportation system and serve the people as fully and efficiently as in the past, and with the aim of making even greater progress in the future. All the efforts of the Company are being concentrated on the attainment of that objective. The Manila Electric... (Continued from page 67) it is planned to convert the system from a 2-phase to 3 -phase one. This will be done gradually by districts. The change does not mean that power installations now 2-phase will have to be changed to 3-phase, as the Company is prepared to continue 2-phase service where required; but it does mean that new large power installations will have 3-phase service, a service generally conceded to be more in line with moder standards and practice. There will also be a gradual change, over a period of years, from the 220 -volt to the 110-volt system. This again will be done with a minimum of inconvenience to consumers and at no expense. Many customers have a very natural complaint that they do not have a meter in their houses and have to pay their bills on an estimated basis. But this condition exists not only in Manila, but throughout America, and is due to the fact that, during the war, men usually employed in the manufacture of meters, were busy at vastly more important work,-making precision-instruments for air Cc=h that tastes like when you've tried rBled in te Bottled in the U. S. A. Fine Anmerican Whiskey * Preferred throughout the Americas Sole Importers SORIANO TRADING COMPANY AA M.R.S. Bldg.-Tel. 2-79-61-Manila

July, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 89 planes and submarines, and at many other essential tasks. The result of this is a large backlog of orders today, and Meralco has to be satisfied with a quota, just as every other public utility company. It is hoped that by early 1948 there will be a meter for everybody. As soon as a meter installed in your house has been operating for a period of three months, an adjustment of the amount already paid will be made, based on the average consumption during those three months. That is, if the average is less than was your estimated consumption, you will receive a credit for the difference; if more, you will receive a bill for the excess. Service during the past few weeks has improved; the Impedance was thoroughly overhauled in June; but while Meralco now has a feeling of confidence that reasonably good service can be maintained, it does wish to impress upon friends that there should be no waste of electricity. The less you use, the less you will C1ave to pay, and, strange to say, that is just what suits Meralco. The First Year of the... (Continued from page 63) Meanwhile, the campaign for the return of firearms illegally held by unauthorized elements in Luzon and in other regions of the country has resulted in the surrender of 200,000 arms, and 3,000,000 rounds of ammunition, valued at P6,000,000. To start the reconstruction and rehabilitation in earnest, the Government has secured a loan of $75,000,000 to cover budgetary deficits. From the War Damage Commission, the Government also obtained $120,000,000 for the repair and reconstruction of public works. The Rehabilitation Finance Corporation, capitalized at P300,000,000, was established to make the necessary loans to private individuals for the reconstruction of their homes and for investment in legitimate business. The Surplus Property Commission was established to take charge of the sale and disposition of all surplus property received from the United States Army. The unsavory reports of scandals at various Army bases containing surplus property resulted in various investigations which it is hoped will expose the real culprits. The public schools are not being neglected. And a sum of P16,750,000 was set aside for the maintenance of additional elementary classes. The appropriation for the Institute of National Language was restored. The President also ordered stricter supervision over private educational institutions. The Bataan and Corregidor veterans and others received due attention. The amount of P120,000, raised by public subscription, was distributed among the heirs of deceased veterans. Guerrillas who were accused of acts of violence in the furtherance of the resistance to the enemy were granted amnesty. Veterans have been given priority in employment. A food-production campaign was launched, the tangible results of which are indicated in the following table: Total hectarage planted up to January 31, 1947 Actually Basis Planted Percent Rice......................... 2,125,835 1,931,081 90 Corn........................ 912,890 720,594 79 Root crops................... 190,299 264,994 141 Beans....................... 35,106 29,093 82 Other vegetables.............. 18,941 39,546 208 Sugar cane.................. 229,699 81,467 36 Fruits (bananas, papaya and pineapple).................. 61,916 89,834 145 Total hectarage and quantity harvested: Hectarage Quantity Rice........................ 1,484,280 38,309,409 cavans Corn........................ 448,458 5,279,359 cavans I-; S. M. BERGER & CO., INC. 2219 Azcarraga MANILA, P. I. TEL. 2-78-20 Exclusive Distributors for: Simplex Moving Picture Projection Equipments 4 Star Sound System "American" Theater chairs Theater-Supplies il L m I SUDDEN DEATH TO FIRE C - D SNOFOG GENERAL DETROIT CORP. FIRE EXTINGUISHERS SAFE & HARMLESS TO USE. C-D SNOFOG FIGHTS FIRES TWO WAYS. ITS FRIGID BLAST OF CARBON DIOXIDE "FREEZES" THE FLAMES AND "ENVELOPES" THE BLAST.. ij^g ~ C-D SNOFOG is indicated in fighting fires of I.il A oil, gasoline, flamable and electrical origin. SIZES AVAILABLE: 2, 4, 5, 10, 15 lb. capacity. Also 50 lb. on wheels. OTHER TYPES OF EXTINGUISHERS FOR EVERY PURPOSE. ALI, AVAILABLE FOR IMIMEDIATE DELIVERY UNIVERSAL TRADING CO., INC. 24th & BOSTON STS., PORT AREA PHONE 2-66-89 I I I i I

90 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1947 I i I I I --- WA\ NCT ORS( INSURANCE Representing FIREMAN'S FUND INSURANCE COMPANY HARTFORD FIRE INSURANCE COMPANY HARTFORD ACCIDENT & INDEMNITY COMPANY R-307 MYERS BLDG., PORT AREA, TEL. 2-65.-72 PHILPROM M116 Root crops.................. 131,011 Beans....................... 19,463 Other vegetables.............. 23,565 Sugar cane................... 19,063 Fruits, (bananas, papaya and pineapple)............................. Vegetable gardens established: Number Home....................... 441,380 School...................... 64,835 Commercial.................. 14,709 Community.................. 2,551 Total................... 523,475 692,106 tons 9,960 tons 40,886 tons 190,826 tons 39,797,245 bunches 31,821,414 fruits Hectarage 11,783 5,109 5,340 429 22,661 The raising of livestock, chickens, pigs, ducks, sheep, goats, turkeys, and geese was encouraged. Cattle, swine, work-animals, and chicks were imported from abroad. Locust infestations Mere stamped out, and the rodent plague was adequately dealt with. The fishery industry was given an impetus as a result of which the capital invested by private persons in the industry reached an aggregate of P9,109,500. Quonset huts and prefabricated homes were imported in small quantities. Because of the shortage of buildingmaterial in the United States, the Government of the Philippines furthered the immediate rehabilitation of the lumber industry. Additional saw-mills numbering 106, with an aggregate daily capacity of 542,800 board feet, have been installed, bringing the number of saw-mills now operating to 193, with an aggregate daily capacity of 1,209,550 board feet. During the first nine months of the Republic there were cut and invoiced 686,049.87 cubic meters of logs and the saw mills produced 109,595,441 board feet of sawn lumber. The production has been so great that the price of lumber has been considerably reduced, and lumber dealers have been able to secure a government license to export a limited quantity of certain kinds of lumber to foreign countries. The mining industry was set on the road back to recovery, and different mining companies in Baguio, in the Bicol region, in Cebu, Surigao, Zambales, and Palawan have started operations and have actually produced considerable quantities of gold, chromite, manganese, and coal. To increase the yield of rice and corn, irrigation- and waterworks-systems are being repaired and restored. The Pampanga River Irrigation Project and the Angat River Irrigati(n Project have been resumed. The sum of P7,491,000 has been set aside to carry out vital road and bridge reconstruction projects, as the following figures indicate: 1. For planning, traffic survey and inventory.......... P 100,000 2. For reconstruction of Quezon Bridge.............. 1,300,000 3. For construction of concrete pavement over Santa M esa Avenue................................. 270,000 4. For construction of concrete pavement over MalolosCalumpit road, Bulacan........................ 1,500,000 I-~~~~~~~~~~~~z~ / 6 -Ib — c~ 6:/6 7 A $ ~ 4na. I Where discriminating people shop... * w _. J 7 ~ R 7?!. Sole Importers SORIANO TRADING COMPANY A HEACOCK'S The House of Quality AA 454-600 Dasmarifas Tel. 2-70-81 M.R.S. Bldg. Tel. 2-79-61 I'

July, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 91 5. For construction of concrete pavement over Quezon Boulevard................................... 6. For construction of concrete pavement from Manila City Limit to Laguna Boundary, Rizal Province.. 7. For construction of Calumpit Bridge, province of Bulacan..................................... 8. For construction of Banaoang Bridge, Ilocos Sur... 9. For construction of Gilbert Bridge, Ilocos Norte.... 10. For construction of Amburayan Bridge, Ilocos Sur.. 11. For oil-treatment of the Manila Circumferencial Road........................................ 12. For oil-treatment of Quezon Boulevard from the Rotonda to the Junction with the Circumferencial 641,000 2,000,000 400,000 465,00 210,000 445,000 77,000 TOPS IN a__ T, Pr.HOTOGRAPHY! CO MiVINKArL' JL JLJL~~~~~~~~~~..`^"'~~;,~~ — ~ ~Z R oad........................................ 22,000 13. For oil-treatment of Santa Mesa Extension......... 39,000 14. For oil-treatment of Pasig Boulevard............. 22,000 Total approved for construction.............. P 7,491,000 Work on Santa Mesa Boulevard and on Quezon Boulevard has begun and some progress has been made. The following bridges have been completed: 1. Santa Ana Steel Bridge over the Pasig River, Manila, reconstructed June, 1946, at a cost of P70,000. 2. Pasig Timber Bridge over the Marikina River, Rizal, constructed July, 1946, at a cost of P172,000. 3. Erection of Bailey bridges over the Morong River, Manila East Road, Rizal, and Malaking Ilog River at Bantilan, BatangasTayabas Road. These bridges were opened to traffic on January 30, 1947, and March 5, 1947 respectively. Public buildings, piers, and ports have been repaired or rebuilt in various places. An amount of P274,500 is the estimated cost of the repairs at piers 13, 11, 9 and 7 in Manila. The Dewey Boulevard Seawall will be repaired at a cost of P95,000. From May 28, 1946, to May 28, 1947, the Philippine Government has spent liberally on public works proj ects as follows: Total expended on road and bridge work............. P29,080,620.27 Building work.................................... 8,440,285.98 Port w orks....................................... 866,000.00 Water supply projects............................ 4,685,725.83 Irrigation systems................................. 5,038,129.43 Artesian wells.................................... 1,203.889.20 River control projects............................. 4,558,062.71 Miscellaneous items............................... 279,300.00 Sea protection works.............................. 589,506.45 Total................................... P 54,741,519.87 The foreign relations of the Philippines have been established on a firm basis. The Philippine Government has concluded the following treaties, agreements, and conventions: 1. The Treaty of General Relations with the United States; 2. The Agreement for the sale of certain Surplus War Properties, under which the United States transferred to the Philippines over 600 million dollars' worth of surplus properties from the American Armed Forces in the Islands; 3. The Agreement between the Philippines and the British Governments under which the Turtle and Mangsee Islands group will be taken over by the Republic on October 1, 1947; -1 Manila Railroad Bridge (SEE US FOR ANYTHING PHOTOGRAPHIC) MANILA Official Photographers for AMERICAN CHAMBER OF COMMERCE JOURNAL -- 1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ i I I A. C. HALL & CO. LOCAL & FOREIGN SECURITIES MEMBERS 201 AYALA BLDG. INHELD E R INCORPORATED Dealers in: * PHARMACEUTICAL SUPPLIES * INSTRUMENTS * GROCERIES * TEXTILES 5TH FLOOR TRADE & COMMERCE BLDG. TEL. 2-65-48 MANILA STOCK EXCHANGE TEL. 2-74-52

92 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1947 Advertising in MERALCO BUSES Brings Good Results 90,000 PASSENGERS DAILY SURPRISINGLY LOW COST PER 10,000 CIRCULATION FOR RATES AND PARTICULARS CALL ADVERTISING MANAGER MANILA ELECTRIC CO. 4. The Philippine Alien Property Agreement; 5. The Agreement between the Philippines and the United States Information Service, transferring Radio Station KZFM to the Philippine Government; 6. The Military Assistance Pact with the United States, the Consular Convention, and the Fisheries Agreement; 7. The Ad Interim Agreement between the Philippines and Switzerland; 8. The Agreement between the Republic of the Philippines and the United States regarding Meteorological facilities and a training program; and 9. The Agreement between the Republic of the Philippines and the United States regarding air-navigation facilities and a training program. The Department of National Defense reestablished the Philippine Military. Academy and the Reserve Officers' Service School. It prepared plans for cadre training, surveyed and mapped out army camps and sites, established central depots and supply points, and prepared a five-year plan for research work. The Army was reduced to 37,000 men. The Department of Labor settled by arbitration 48 strikes and 21 other labor disputes involving more than 23,000 laborers. The Eight-Hour Labor Law and the Woman and Child Labor Law were enforced rigidly. The Department of Health and Public Welfare has made some headway in improving general sanitation and carried out various immunization projects, thus preventing major epidemics; increased the number of charity clinics; and improved the hospital service, also raising the per capita expenditure per patient. The campaigns against tuberculosis, malaria, leprosy, and venereal diseases were accelerated. The Department of Instruction established libraries in a number of big factories and supervised 600 private schools and colleges in addition to all the public schools in the country. The sum of P16,750,000 was appropriated by Congress as already indicated, for additional elementary classes, which is to be added to the regular appropriation of P31,373,460. The Department of Justice, through the Securities and Exchange Commission, registered 589 stock corporations whose total subscriptions amounted to P37,377,934.50. The Bureau of Justice, besides prosecuting ordinary government cases, also undertook the investigation of numerous deportation cases. The Public Service Commission disposed of 12,929 applications for certificates of public convenience. The Joint Philippine-American Finance Commission studied the financial position of the Republic of the Philippines and made adequate recommendations. These accomplishments of the Philippine Government have been, by and large, inspired by the President of thRepublic. Life is rapidly coming back to normal, and, barring major mishaps, the Republic has reason to look forward to a happy future. 134 San Marcelino Tel. 8-75-31 I I I1 CHINA BANKING CORPORATION INCORPORATED UNI)ER THF LAWS OF THE PHILIPPINLS GENERAL BANKING AND EXCHANGE TRANSACTIONS CORRESPONDENTS IN ALL THE PRINCIPAL CITIES OF THE WORLD I Sole Importers AA SORIANO TRADING CO. Head Office: CIIINA BANK BLDG. DASMARlfAS & JUAN LUNA STS. MANILA Branch Offices: SHANGHAI AND AMOY, CHINA M. R. S. Bldg. Tel. 2-79-61 L 'II II

July, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 93 The "LET YOUR HAIR DOWN" __Column A COLUMN conducted in the lighter and easier vein can be a useful adjunct to any publication because it makes possible a freer form of communication than is suitable in the usually staid and serious editorial pages, and yet may convey much essential matter. Readers as well as the editor can take advantage of this, for such a column is an excellent place for letters of suggestion and criticism. A column of this kind having been decided upon for incorporation into the Journal, the question arose as to what to call it. Various names suggested themselves,-"Tells All", "A Noise Within", "All Hands", "Enter Chorus", which give some indication of the intended nature of the column, but the heading finally decided upon, for better or for worse, is that which appears higher up on this page, and we do hope that this will not be considered too colloquial, not to say vulgar. "Let your hair down" is a picturesque expression which carries with it not only a suggestion that one may relax and take his ease, put aside all formality and be himself, but that he may speak with utter frankness, with enthusiasm, with asperity, with passion which may mount to frenzy. The column will be tolerant toward this whole gamut of expression and we will welcome communications on anything at all that has to do with business here, —including, for good measure, the business of living, and, of course, with the Journal itself by way of endorsement or criticism, whether enthusiastic, morose, or merely malign. If you have anything to say, come into this column and say it,anything goes that some judge is not likely to pronounce libelous. If it serves a good purpose, your name could be, withheld from publication, and no one would find it out from the editor. Just so it's all highly dedicated. As for ourselves, we have a few things to say to start off with. The Journal is going to be a business men's magazine devoted strictly to business and all its joys and sorrows. We do not intend tp make any direct appeal to the general reader, but we do intend to make the Journal both interesting and useful, if in fact not indispensable, to all business men here regardless of their nationality or other affiliations. In this connection we point with undisguised pride to "The Business View" pages, a symposium of expert opinion to which some twenty-five of Manila's leading business men will contribute every month. It will constitute a body of reliable fact and authoritative analysis such as has never before been available to the business community here. Most of these men are members of the American Chamber of Commerce, but there are others, prominent members of the British and Spanish communities, as well as a number of Filipinos, who have generously agreed to cooperate. What these pages will contain is now vitally necessary information to most business executives, and there was no other practicable way of getting it together every month. The men concerned,-who have become virtually contributing editors, working without pay, deserve the thanks not only of this Journal and of the Chamber, but of the whole business community. Journalistically, the pages of "The Business View" constitute an unprecedented example of cooperative editorial enterprise. Enlisting men of their standing in such a project was, if we may boast a little, an editorial tour de force which should immediately reflect itself in increased advertising and a rapid expansion of the subscription list. Due to the resignation of the editor, Mr. Robert S. Hendry, and a period of reorganization which entailed a suspension of publication for several months, and a change of printing establishments as well, it was not possible to lay down the usual dead-lines for copy, and the reader will therefore note a lack of synchronization in the various columns as well as some overlapping and perhaps a few gaps. We believe that as the different writers see what the others have written, the various sections will shortly be better correlated. A word should be said here about the able service rendered the Chamber by Mr. Robert S. Hendry. Mr. Hendry's resignation resulted in some question as to whether to continue the publication of the Journal or not under the present difficulties attending' all publication in Manila, but Mr. Hendry got out ten issues of the Journal,-from December, 1945, to April, 1947, almost unaided, and when conditions were even more difficult than they are now. Our hope of being able to get out a better _ LUZON BROKERAGE INCORPORATED 1911 Telephones: 2-79-35 2-79-36 2-79-37

94 AMERICAN CHAMBER OF COMMERCE Si- 1-f t iHIB0B^~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ JXvj t I li --- —..- J L4 AY i.r - I~ JOURNAL TuiTv T147 ~~;Y~~~~"~r~~~~~~ I NEW B.F.Goodrih TIRE WEARS LONGER THAN PREWAR TIRES I and more useful publication is almost entirely based on the cooperation we are now receiving. Talk 0o discontinuing the Journal soon ended, for it was realized that the Chamber, and business generally here, stands in definite need of a good local business magazine, more so now than ever before. And the Chamber requires, too, an organ of its own in carrying out one of the purposes of the organization which was laid down in the Constitution and By-laws as follows: "The provision of means for the convenient exchange of ideas in this promotion and development", i.e., "of American trade, commerce, and industry in t.he Philippines and the Far East". At the suggestion of our new editor, himself, t~he general plan of the organization and management of thJe Journal has been changed. While formerly the Journal was, so to say, "farmed out" to the editor, who was allowed to make what he could of the Journal under a minimum of control, it was realized that the responsibility, both editorial and financial, should be formally placed where it belongs,- with the Chamber. The editor is responsible only technically and managerially. That is the way he wanted it, and the Board of Directors believed that his position in the matter was sound. Going back, for a moment, to "The General Business View" pages, we had projected one column among the others in which the actions and decisions of the Office of the President of the Philippines would be reviewed. Because the publication of this issue of the Journal fell in the month of July, which marked the first anniversary of the Republic of the Philippines, this column was expanded by a zealous writer in Malacanian to the length of a special article. We publish it as a timely statement from the Office of the President covering the first year of the life of the Republic. Referring, too, once more to the designation, "The Hair-down Column", we will admit without quible that it is particularly apt with reference to our present editor. Those who have known him during the past thirty years as editpr of the old Manila Times and, later, of the Philippine Magazine, will know that he let all his hair down years ago and has in fact not a hair to put up. But,, though generally very frank in all things, he manages for the most part to preserve a certain calm which, we believe, makes him an especially desirable person to preside over a column which invites the furies. "The alarum sounds and Chambers go off." I * New, wider, flatter tread for added safety. * Stronger Tire Body-with improvements that make it wear longer than prewar tires. * Tested in 16,800,000 miles of use-under all kinds of laboratory and road conditions. Ask us for it! ~~~c~~~ r I ( ) i~i I cI I GOODRICH INTERNATIONAL RUBBER CO. 13th & ATLANTA STS., PORT AREA-MANILA, P. I.

C/) -Q Q In

SEP 7 1946 THE AMERICA COMMERCE Published monthly in Manila by the American Chamber of Commerce of the Philippines Fifth Floor, Insular Life Building-Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; John L. Manning, Vice-President; Fay C. Bailey, Treasurer; E. G. Baumgardner, Max Blouse, John F. Cotton, Samuel Garmezy, G. C. Miller, and J. A. Parrish. Leon Rosenthal, Executive Vice-President; I. T. Salmo, Secretary. Vol. XXIII August, 1947 No. 4, i~~~~~~~~~~~~~~~~~~~~~~~~ Contents EditorialsThe Report of the Joint Finance Commission........................................................ Build More Temporary Bridges........................................................... New Chamber Offices............................................................................. Letter to a Member of the United States Congress........................ FRED H. STEVENS............. Income Tax Comparisons........................................... DALUPAN, SANCHEZ & COMPANY.. Review of the Report of the Joint Philippine-American Finance Commission. ANONYMOUS................... The Cebu Portland Cement Company................................... EDUARDO TAYLOR............. The Business ViewOffice of the President.......................................................... Official Source........................ Banking and Finance........................................................... C. V. GRANT......................... C redit.................................................................D.... B UR N............................. Stock M arket....................................... A. C. E.HA LL.......................... Insurance............................................................ Electric Power Production.................................................... Real Estate................................................................... Construction................................................................... Machinery..................................................................... Elevators.................................................................... Port of M anila................................................................ Ocean Shipping................................................................ Inter-Island Shipping........................................................... Air Transportation........................................................... Land Transport'ation (Bus Lines)............................................... Gold-Copper................................................................... Lumber....................................................................... C opra and Coconut O il........................................................ Desiccated Coconut............................................................ Manila Hemp.................................................................. Sugar......................................................................... Food Products................................................................. Textiles....................................................................... Legislation and Court Decisions............................................... Philippine Government Corporations............................................. United States Government Agencies, U.S. Public Roads Administration (Philippine D ivision)............................................................. L a b o r......................................................................... Cost of Living Index............................................. Trend of Real W ages.......................................................... Diplom atic and Consular List.......................................... The "Let Your Hair Down" Column.................................... Taxibility of Sales of Articles to Foreign Consuls and the U.S. Army and Navy. A. H. HENDERSON.................. C.. T. BALCOFF..................... C. M. JORDAN........................ J. F. COTTON......................... C. M. HOSKINS....................... O. A. BONI and H. H. KEYS.......... G. H. EVANS.......................... H. E. HERTZ......................... H. W. TITUS......................... F. M. GISPERT..................... E. DANKS...................... V. A. BRUSSOLO...................... L. D. LOCKWOOD..................... C. A. M ITKE......................... E. C. VON KAUFFMANN.............. M. IGUAL and K. B. DAY............. H. R. HICK.......................... M. COOK............................. G. G. GORDON...................... C. G. HERDMAN...................... J. TRAYNOR.......................... E. E. SELPH.......................... Official Source........................ Official Source........................ Official Source........................ Bureau of the Census and Statistics.... Bureau of the Census and Statistics... OFFICIAL SOURCE............... COLLECTOR OF INTRNAL R NUE........... COLLECTOR OF INTEIRNAL REVRNUE' _. Page 99 99 101 101 103 105 107 108 108 109 109 110 111 111 111 111 112 112 112 113 114 115 116 116 116 118 118 119 120 120 121 122 122 124 126 128 128 129 130 132 134 50 centavos the copy

AMERICANA CHAMBER OF COMMERCE JOURNAL August, 1947 yo ^ -^>- - ---- USINC auto tires on your light trucks? That may be costlier than you think - because most trucks need truck tires to do trucking work! That is why Goodyear developed the Truck Airwheel shown here - a true heavy-duty work tire, built especially for light trucks, with a tread that's wider and thicker than the tread on auto tires, and specially reinforced beads. Added strength - with RAYON Cord But most important, this tire is built with six or more plies of super-strong, heat-resisting RAYON Cord, That's why it's so tough and sturdy - why it can absorb the grueling wear and tear of pickup and delivery -r service. This great tire costs a little more to buy. But in providing extra protection that helps lengthen truck life, in lasting so long in all-day, stop-start service, it's actui a ally the lowest-cost tire to use.:41 Available in two types - RIB TREAD for city service and improved roads - STUDDED SURE-GRIP for mud..-,...I Made in sizes up to 7:50-16 for light trucks. I / I " I. ~ HAVE YOUR GOODYEAR DEALER SHOW YOU THE DIFFERENCE COODjIEAR ) Tread is wide and thick. ) Six or more plies ot heat. resisting RAYON ( Extra-heavy sidewali. () Reinforced bealdf TRUCK AIRWHEELS OR TOS THE WORLD OV ARE HAUL ON GOOAR TRUCK TIRES THAN N AN OTHER MA MORE lTNS THE WORLD OSV ME HALED ON NGOOE AT RC IRES HAN ON AN Y O HE AKE 6.46-6

THE AMERI COMMERCE Editorials A review of the very important Report of the Joint Philippine-American Finance Commission, released last month, is published elsewhere in The Report of the this issue of the Journal. The Joint Finance review ably summarizes the Report, Commission and is non-critical, as a summary should be. However, no little criticism is to be heard in financial and business circles in Manila, both as to several of the Commission's major recommendations and as to points of detail. The Journal is eager to assist in bringing this criticism into the open while intelligent discussion will still be of value to the authorities who must decide upon the carrying out of the recommendations. The Journal therefore invites frank statements of opinion for publication in subsequent issues. Battles and wars have been lost for failure to get across a river, and we in Manila may well fail the emergency of the period of reconstruction (the next few Build More years are called an emergency period in Temporary the Report of the Joint Philippine-AmerBridges ican Finance Commission, published last month), unless we conquer the Pasig, the narrow river which bisects the city. It is not too much to say that the unspeakable traffic conditions in Manila are costing the country millions of man-hours and millions of pesos, and that these conditions constitute a tremendous drag on economic recovery. There are other things wrong with our traffic system besides the inadequacy of our bridge facilities, but that inadequacy is basic; and when the public is informed that only the existing temporarily repaired bridges are to be rebuilt for the present, and that this work will not be begum for lack of steel for another year and will not be completed until still another year has passed, then all Manila feels something like desperation. The situation, so set forth, seems all the more intolerable when it comes to mind,-as it must, that armies in battle throw bridges across wide rivers in a matter of days, although they may be only pontoon bridges. And it also comes to mind that the old bridges across the Pasig, all destroyed by the Japanese, were at least temporarily repaired in a matter of weeks (in the case of the Ayala Bridge, where a permanent span was put in, several months) by the United States Army and by the Atlantic, Gulf, and Pacific Company of Manila, working under the supervision of the Army. Why not throw two or three more temporary bridges across the river immediately? A considerable number of Bailey bridges are reported to have been made over to the Philippine Government from Army surplus, and although it is said that practically all of these have already been allotted to various provincial projects, surely Manila, in the national interest, has the greater claim. It is true that in repairing the old bridges in Manila, the constructors were able to utilize the standing abutments and piers, while such aids do not exist elsewhere on the river banks. The work which had been begun before the war on the bridge which was to be built over the mouth of the river consists only of some piles. To build a permanent bridge there, as recommended by the Manila Daily Bulletin, would take longer, engineers say, than to build or rebuild the Jones and Quezon Bridges. Several more temporary bridges would seem to be the only answer,-ex-Army, Bailey bridges, characterized as bridges which are built in two sections, one on each bank, and shoved across the river to meet in the middle; the ends on the land are heavy enough to support the structures as they are pushed across. Such bridges might be built in three or four places, and since they would be temporary, they would not necessarily have to fit in with any future city building-plans. One of these places is at the end of Mendiola Street, where it was planned to build a bridge some years before the war, connecting Azcarraga and Mendiola Streets with the Pandacan District. A bridge there, however, would be rather far out. Another suitable place for a bridge would seem to be one at the end of Juan Luna Street, connecting that street with the Malecon Drive. It might be made a oneway bridge, the traffic on the Jones Bridge to be confined to that moving in the opposite direction. Another suitable location for a bridge might be found between the Quezon and the Ayala Bridges. And a temporary rather than a permanent bridge might be built immediately at the mouth of the river. These four additional temporary bridges could be built in a number of months rather than years. Engineers say that there would not be much point in temporarily widening the Jones Bridge because Rosario Street, practically the only approach on the north side, is narrow and already taxed to the limit by the vehicular 99

100 AMERICAN[CHAMBER OF COMMERCE JOURNAL August, 1947 m I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - --- TO OUR FRIENDS BOTH OLD AND NEW OUR EXCLUSIVE LINES, EACH REPRESENTING THE BEST, APPLICABLE TO THE REHABILITATION OF MINING, SUGAR, LUMBER, AND OTHER INDUSTRIES ARE AS FOLLOWS: AMERICAN HOIST & DERRICK CO. Genuine Crosby Wire Rope Clips, AMERICAN LOCOMOTIVE CO. Locomotives AMES BALDWIN WYOMING CO. RED EDGE Shovels, square and round points, round and D-handles. ARMSTRONG-BLUM MANUFACTURING CO. Marvel Hacksaw machines, popular sizes; hacksaw machine blades. BACHRACH INDUSTRIAL INSTRUMENT CO. Indicating, Recording & Control Instruments for Pressure, Temperature and Gas Analysis. BARBOUR STOCKWELL CO. Champion Power Hammers. BARNHART COMPANY Band Wheel Grinders BEARING ENGINEERING CO. All types of Bearings. BEEBE BROTHERS Portable hoists, hand-operated; 2- 5- 10. and 15-ton sizes. BLACK & DECKER MFG. CO. Portable Electric Tools BRODERICK & BASCOM ROPE CO. "Yellow Strand", "Plow Steel" & "Flexset Preformed" Wire Rope. CALIFORNIA WIRE CLOTH CORP. Woven Metal Screens. CANEDY-OTTO MANUFACTURING CO. Precision Drills, Radial, Sensitive, Upright and High Speed. CARRIER CORPORATION Air Conditioning (portable units and large central system), Refrigeration and Ice-making Equipment. CHICAGO BELTING CO. Leather Belting, Leather for all industrial purposes. CINCINNATI-BICKFORD TOOL CO. Radial and Upright Drills, power-driven.. CINCINNATI MILLING & GRINDING MACHINES, INC. Milling Machines, 'Grinders, and accessories. CINCINNATI PLANER CO. Planers, Boring Mills, Planer Type Millers. CORNING GLASS WORKS Pyrex and Corning Gauge Glasses. COOKTITE RING SALES CO. Cooktite and Cook's Piston Rings. CRANE COMPANY Valves, Fittings, Pipes. CUSHMAN CHUCK COMPANY Light and Heavy Duty Chucks, combination chucks, collet chucks and collets. DEARBORN CHEMICAL COMPANY Boiler Compounds, Water Treating Processes, Water Analysis. DETROIT BELT LACER CO. Belt Lacing Machines; Belt Hooks. EAGLE & GLOBE STEEL CO., LTD. Ultra Capital and PLUS TWO Lathe Bits. EVERLASTING VALVE CO. Boiler Blow-off Valves. J. A. FAY & EGAN CO. Sawmill and Woodworking Equipment; accessories and parts. FILTER MEDIA CORPORATION Filter Cloth, Filter Press Plates and Frames. FOXBORO COMPANY Indicating and Recording Precision Instruments. GARLOCK PACKING CO. Industrial Packing, all specifications and sizes. GIDDING & LEWIS MACHINE TOOL CO. Horizontal Boring, Drilling, and Milling Machines. GORDON HOLLOW BLAST GRATE CO. Tower Edgers and Trimmers. GOULD & EBERHARDT, INC. Gear Cutting Machines and Shapers. HANCHETT MANUFACTURING CO. Sawmill Filling Room Equipment. HENRY DISSTON & SONS, INC. Saws for all applications; Tool Bits, Knives. HONAN-CRANE CORPORATION Lubricating Oil Filters and Purifiers. HYDRAULIC PRESS MANUFACTURING COMPANY Plastic Moulding Presses, Tile Presses, and other hydraulic machinery. JOHNS-MANVILLE INTERNATIONAL CORP. Asbestos brake lining and Magnesia Cement and Boiler Insulation. KAUKAUNA MACHINE CORPORATION Portable Drilling and Tapping Machines. KINGWELL BROS. LTD. Bronze Bushings and Bars-Oilite Bushings. LINDE AIR PRODUCTS CO. "Purox" Welding and Cutting apparatus, Acetylene Generators, Welding Rods. LODGE \& SHIPLEY MACHINE TOOL CO. Engine Lathes, Selective Head Lathes, Manufacturing Lathes. MANHEIM MFG. & BELTING CO. VEELOS Adjustable V-Belts. MANZEL BROTHERS CO. Force Feed Lubricators. MARWEDEL, C. W. General Hardware Materials. MINE & SMELTER SUPPLY CO. Marcy Mills, Wilfley Pumps and tables, Masaco Fahrenwald Flotation Machines. MURPHY DIESEL COMPANY High Speed Diesel Generating and Power Units. NATIONAL TWIST DRILL & TOOL CO. Twist Drills, high speed steel and carbon steel. NEBEL MACHINE TOOL CO. Extension bed gap lathes. NORDBERG MANUFACTURING CO. Cement Grinding Mills, Symons Cone Crusher, Rod Deck Screens, Diesel Engines 1000 H.P. and over. NORDSTROM VALVE DIVISION ROCKWELL MFG. CO. Nordstrom Lubricated Plug, Cocks. NORTHWEST ENGINEERING CO. Shovels, Cranes, Draglines, Trenching Machines, Skimmer Scoops, Dragline Buckets NORTON COMPANY Abrasives, grinding wheels. NULCO FABRICATORS Redwood Cooling Towers & Tanks. OLIVER UNITED FILTERS, INC. Filtering Plants for the Sugar and Mining Industries. OSTER MANUFACTURING,COMPANY Die Stocks, Pipe and Bolt Thieading Machines. OWEN BUCKET CO. Dredging, Excavating, Rehandling Bu kets, Rock Grapples. PACIFIC CAR & FOUNDRY CO. Rafting Dogs, logging cars. PENBERTHY INJECTOR COMPANY Automatic High Pressure Injectors and Ejectors. RANSOME MACHINERY CO. Concrete Mixers, Paving Mixers, Truck Mixers. RIDGE TOOL COMPANY Pipe Wrenches; Pipe Cutters and Bench Vises. SHARPLES CORPORATION Centrifuges for all industrial applications and experiments. SOUTH BEND LATHE WORKS Precisions Lathes and accessories. STEARNS MAGNETIC MANUFACTURING CO. Magnetic Handling of Materials. SUMNER IRON WORKS All types of lumber processing machinery. TORO MANUFACTURING CO. Mowers, Fairway Park Golf Club Equipment. UNIVERSAL ENGINEERING CO. Jaw Ciushers, Portable Clushing Plants. WASHINGTON IRON WORKS Logging Machinery and Equipment. WICKSTEED & CO., LTD. Hydraulic Hacksawing Machines. WORTHINGTON PUMP & MACHINERY CORP. Diesel Engines, Pumps, Air Compressors, Water Meters, etc. YALE & TOWNE MFG. CO. Chain Hoists-spur and screw geared; Pul-lifts Platform Scales. J THEI EDWALRD. 1NITEE1 CO. 1450 Arlregui-, Manila Tel. 2-70.1 I -..... -

traffic which passes through it. Neither is it practicable to add any additional temporary spans to the Santa Cruz Bridge. Meanwhile, certain other measures might be taken. A recent checking has shown that while some 29,000 vehicles pass over the Santa Cruz Bridge on an average day, only some 28,000 cross the Quezon Bridge, though the latter is twice as wide and has the better approaches. Better use might well be made of the Quezon Bridge if the proper traffic regulations were laid down. One reason the Quezon Bridge is not better used, is suggested by the terrific congestion in the Quiapo District. It has been very difficult to get through there ever since motor-traffic was resumed after the liberation, and many people who live in North Manila with offices down-town on the same side of the river, nevertheless cross the river over the Ayala Bridge and recross it over the Jones Bridge as entailing less delay, though not infrequently this means a fifteen-minute wait at the Jones Bridge. The establishment of a main traffic loop in Quiapo for North-Manila bus-lines and "jeepneys", forces people who wish to go to the Escolta District to go on foot the rcst of the way, and forces others who wish to cross the river to walk to Echague Street to catch another vehicle there. It is probably because of the inadequate bridge facilities that the traffic authorities have thus attempted to divide city-traffic into two, with a wide "no-man's land" in between, instead of directing it as the unit which it naturally is. This, furthermore, so crowds the streets with pedestrians in that area that all vehicle-drivers who do not have to go there, go around it. It lies like another barrier across the city. An important contributing factor to the present traffic situation is the narrowing of the already narrow sidewalks by temporary vendors' booths, and their crowding by every variety of perambulating peddler. Practically the whole of down-town Manila, as well as many other sections, are over-run by these people, and what was once such an orderly and modern-looking part of the city, now piesents every aspect of a dingy and teeming bazaar quarter. Pedestrians are pushed into the streets where they often halt traffic and shoot up the accident-rate. The sidewalks should be cleaned up; pedestrians should be gotten out of the middle of the streets; traffic should be more scientifically regulated; but above everything is the need of quickly building three or four more temporary bridges. These could be built in a few months instead of years and would cost far less than even one permanent bridge. The offices of the American Chamber of Commerce of the Philippines, including the Journal office, were transferred from the Trade and Commerce New Chamber Building to the Insular Life Building, Offices fifth floor, late last month. The new quarters are somewhat more commodious and will provide space for a members' lounge and reading-room. As various installations still have to be made, the lounge has not as yet been formally opened. - Letter to a Member of the United States Congress July 24, 1947 THE HONORABLE HAROLD KNUTSON Chairman, Ways and Means Committee House Office Building Washington, D.C. My dear Congressman: The American Chamber of Commerce of the Philippines is taking the liberty of writing you on the subject of taxation of Amer-can enterprises in the Philippines. For a number of years United States citizens and corporations doing business in the Philippines, as in other possessions of the United States, were extended the provisions of Section 251 of the United States Internal Revenue Code. And if 80% or more of their gross income were derived from Philippine sources, and 50% or more of their gross income were derived from active conduct of business in the Philippines,'they were not required to pay a United States income tax on that part of their income that was derived from Philippine sources. They were required to pay income tax to the United States only on income that was derived from United States sources. But since July 4, 1946, when the Philippines became an independent nation, United States citizens and corporations are required, under existing laws, to pay the United States tax less certain credits for Philippine taxes. The disadvantage to United States corporations and citizens employing capital in the Philippines compared with nationals of other countries, can be seen at a glance in the following figures for a net income of P100,000, prepared by a Philippine certified Public Accountant: Americans Other Nationals Disadvantage Individual..... P 41,766.76 P 26,230.00 P 15,536.76 Corporation... 38,000.00 12,000.00 26,000.00 while their business competitors, nationals of other countries, are not taxed by their home governments and pay income tax only to the Philippine Government. As a result, United States citizens and corporations are put at a serious competitive disadvantage, and this comes at the very time when they are striving to recuperate from the tremendous losses suffered from Japanese confiscations and looting and the destruction of war. The purpose of the partial exemption from United States tax granted to American citizens and corporations by Section 251 of the law, was to encourage American enterprise in areas where the United States had special interests. As a matter of fact, Section 251 was not the only section which embodied this policy. We further refer you to the United States Revenue Code, Sections 262 and 116f, granting special consideration to American enterprises in China, and to Section 109 granting substantial exemptions to corporations engaged in business in the Western Hemisphere. We respectfully submit that the policy which extended the benefits of Section 251 to American citizens and corporations prior to the granting of independence to the Philippine Republic, is equally applicable to the present situation. While the Philippines is an independent country, the interests of the United States are greater here than in any area not in Continental North America. This is shown not only by the fact that we are maintaining important military installations here, but by the policy of our Government as set forth in the recent Trade and Amity Treaties entered into with the Philippine Republic. Surely, if logic required that special tax consideration be granted to American interests in the Philippines prior to independence, the same logic requires that it be extended to such interests today. American foreign policy is dedicated to the proposition that the safety of the United States depends upon the worldwide spread of democratic principles, and it is being increasingly realized that this spread in turn depends upon bringing foreign countries and individuals into contact with its operation, and upon American businessmen who are giving these principles practical application. If American citizens and capital are to carry American culture abroad, they must be allowed to compete on even terms with other business enterprises with which they are coming into direct competition. We respectfully suggest that immediate action be taken to amend Section 251 of the United States Internal Revenue Code to include American citizens and corporations in the Philippines by adding to that Section, after the words "possessions of the United States", the words "or the Republic of the Philippines". We also request that the amendment be made retroactive to July 4, 1946. This requested amendment to the income-tax laws would only continue the tax status of the American businessman in the Philippines as it was for many years prior to 1946, and will not decrease his customary tax liability to the United States. We sincerely trust that this request for relief from dual taxation of American businessmen operating in the Philippines will receive your support for immediate action. Very respectfully, AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES FRED. H. STEVENS President 101

102 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1947 _m I Ii l I AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES ESTABLISHED 1920 PURPOSES. The promotion and development of American trade, commerce, and industry in the Philippines and the Far East; The provision of means for the convenient exchange of ideas in this promotion and development; The cultivation of friendly relations between Americans and Filipinos and other peoples of the Far East; The enrolment of all American citizens residing in the Philippines with a view to bringing about closer association in the achievement of the purposes set forth. MEMBERSHIP. Active membership is limited to (1) commercial, industrial, and other organizations, partnerships, and corporations organized under the laws of the Philippines or of the United States of America which are controlled by American citizens, the responsibilities and privileges of this class of membership being exercised by individual representatives of the member-entities who must rank among their senior members but need not be American citizens; (2) individual Americans residing in the Philippines, other parts of the Far East, or the United States. Associate membership is limited to individual American citizens who may be either Residents (residing within 100 kilometers of Manila), or Non-residents (residing in the Philippines outside this radius or elsewhere in the Far East or in the United States). OFFICERS AND DIRECTORS, 1947 Frederic H. Stevens, President E. G. Baumgardner, Member John L. Manning, Vice-President Max Blouse, Member Fay C. Bailey, Treasurer John F. Cotton, Member Samuel Garmezy, Member Leon Rosenthal, Executive Vice-President G. C. Miller, Member I. T. Salmo, Secretary J. A. Parrish, Member STANDING COMMITTEES Committee on Civic Affairs, K. B. Day, Chairman, E. G. Baumgardner and C. M. Hoskins, members. Finance Committee, J. F. Cotton, Chairman, F. C. Bailey and S. Garmezy, members. Committee on Labor Relations, Max Blouse, Chairman, T. L. Hall, F. H. Myers, R. Rawson, and J. Wells, members. Committee on Legislation, E. E. Selph, Chairman, J. W. Ferrier, E. A. Perkins, and Leon Rosenthal, members. Membership Committee, J. A. Parrish, Chairman, E. Byron Ford and Leon Rosenthal, members. Membership-Drive Committee, L. C. Hayden, Chairman, T. H. Diehl and Leon Rosenthal, members. Committee on Public Utilities, J. F. Cotton, Chairman, Max Blouse, T. L. Hall, and A. G. Henderson, members. Committee on United States Taxation, E. E. Selph, Chairman, A. D. Calhoun, S. Garmezy, and W. H. Rennolds, members. Committee on War-Damages, C. A. Mitke, Chairman, Montague Lord and J. L. Manning, members. PAST PRESIDENTS American business houses and individual Amer- *H. L. Heath *C. M. Cotterman E. E. Elser icans, not already members, are cordially invited to *R. E. Murphy icans,~~~~~~~ r noT 1*;. Muirphy I I.1 join the Chamber and to assist in the promotion of %.4. KA.J, U Ca- l,a uAta, P. A. Meyer *H. M. Cavender *S. F. Gaches W. H. Rennolds *Deceased its purposes. I~ —

Income Tax Comparisons between Americans and Other Nationals AMERICANS, BRITISH, AND OTHER NATIONALS ENGAGED IN TRADING OR MANUFACTURING IN THE PHILIPPINES AS INDIVIDUALS AND COMPARISON OF THEIR NET INCOME REALIZED FROM SOURCES WITIHIN THE PHILIPPINES, AFTER DEDUCTING THEIR INCOME TAX LIABILITIES TO THEIR OWN COUNTRIES AND TO THE PHILIPPINES, THE COUNTRY OF THEIR RESIDENCE I. AMERICAN CITIZENS BRITISH CITIZENS And Other NATIONALS INVESTMENTS-Fixed, Current, and Other Assets used to produce income invested in the business............ Gross Sales.................. Less-Cost of purchased or manufactured goods sold.... Gross Profit on Sales........ Deduct-Operating Expenses (exclusive of income tax, and compensation for the services of the owner)............ Net Taxable Income........ Less-Income Tax: Philippines................. U.S.-Normal and surtaxes.. Credit-Philippine Tax, per Sec. 131, U.S. Internal Revenue Code........... Net U. S. Income Tax.. Total Income Tax (U.S. and Phil.).................... Net Income (After deducting Income Tax)............... Ratio of Net Income to Investm ent...................... Difference in yield on equal investments between American citizens and other nationals.. COMPUTATION OF INCOME TAX: Taxable Income (from above) DeductPersonal exemption (married, no children) Philippines................ Personal exemption (married, no children) U. S. Allowance for personal income for his services in the business, not exceeding 20% of his share on the net profit of such business (Sec. 116 (a) (3) U.S.I.R.C.)......... Total deductions..... Net Taxable Income.... Philippine Income Tax.... U.S. Normal and surtaxes... U.S. Credit-Full extent of Phil. Tax (Sec. 131, U.S. I.R.C.).................. Total Income Tax (U.S. and P hil.).................. P500,000.00 P500,000.00 P600,000.00 P600,000.00 300,000.00 300,000.00 P300,000.00 P300,000.00 150,000.00 150,000.00 P150,000.00 150,000.00 P 46,180.00 P 46,180.00 P 74,841.00 (46,180.00) P 28,661.00 P 74,841.00 P 46,180.00 P 75,159.00 P 103,820.00 15.03% 20.76% 5.73% 20.76% 20.76% 3 - R AMERICAN CITIZENS BRITISH CITIZENS And Other NATIONALS II. P300,000.00 P300,000.00 P 400,000.00 P400,000.00 200,000.00 200,000.00 P 200,000.00 P 200,000.00 a 100,000.00 P 100,000.00 P 26,230.00 P 41,766.76 100,000.00 P 100,000.00 P 26,230.00 (26,230.00) P 15,536.76 P 41,766.76 P 58,233.24 19.41% 5.18% 24.59% P 26,230.00 P 73,770.00 24.59% 24.59% P100,000.00 P100,000.00 P200,000.00 P 200,000.00 50,000.00 P 50,000.00 P 9,480.00 P 14,326.00 (9,480.00) P 4,846.00 50,000.00 P 50,000.00 P 9,480.00 AMERICAN CITIZENS.... BRITISH CITIZENS And Other Nationals III. 100,000.00 100,000.00 P100,000.00 P 100,000.00 P 14,326.00 P 35,674.00 35.67% 4.85% 40.52% P 9,480.00 P 40,520.00 40.52% 40.52%' P150,000.00 P150,000.00 P 100,000.00 P 100,000.00 P 50,000.00 P 50,000.00 P 2,500.00 P 2,000.00 15,000.00 P 17,000.00 P133,000.00 P 46,180.00 P 74,841.00 (46,180.00) P 74,841.00 P 2,500.00 P147,500.00 P 46,180.00 P 2,000.00 11,500.00 P 13,500.00 P 86,500.00 P 26,230.00 P 41,766.76 (26,230.00) P 41,766.76 P 2,500.00 P 2,500.00 P 97,500.00 P 26,230.00 P 26,230.00 P 2,000.00 7,000.00 P 9,000.00 P 41,000.00 P 9,4du.ou P 14,320.UU (9,480.00) P 14,326.00 P 2,500.00 P 2,500.00 P 47,500.00 P 9,480.00 P 9,480.00 P 46,180.00 NOTE: This computation is based on the assumption that the British do not pay income tax to their Government on income realized from sources within the Philippines. 103

Income Tax Comparisons between American and Other Corporations CORPORATIONS ORGANIZED IN THE UNITED STATES AND CORPORATIONS ORGANIZED ELSEWHERE, BUT ALL EXCLUSIVELY DOING BUSINESS IN THE PHILIPPINES, AND COMPARISON OF INVESTMENT RETURNS h it - - -~~~~~~~~~~~~~~~~~~~~~, I. INVESTMENTS: Fixed, Current, and Other Assets used to produce income at book value...................... Gross Sales.................. Less-Cost of Sales.......... Gross Profit................. Deduct-Operating Expenses (exclusive of income tax).... Net Taxable Income........ Ratio of Taxable Income to Investments................ Deduct: United States Taxes ($) Normal Tax............. Surtax................... Total................ Less -Philippine income tax credit, the same being less than the normal tax.................... Net U. S. Taxes.... Philippine Income Tax (x). Total Taxes......... Net Income................. Ratio of Net Income to Investm ent.................. Differences in yield on equal investments between U. S. corporations and other corporations.................. U. S. CORPORATIO N P 1,000,000.00 P 800,000.00 400,000.00 P *400,000.00 250,000.00 P 150,000.00 15% BRITISH, ($) PHILIPPINE AND OTHER CORPORATIONS P1,000,000.00 P 800,000,00 400,000.00 P 400,000.00 250,000.00 P 150,000.00 15% -1 U. S. CORPORATION P 666,666.67 P 400,000.00 200,000.00 P 200,000.00 100,000.00 P 100,000.00 15% P 24,000.00 14,000.00 P 38,000.00 BRITISH, ($) PHILIPPINE AND OTHER CORPORATIONS P 666,666.67 P 400,000.00 200,000.00 P 200,000.00 100,000.00 P 100,000.00 15% P 333,333.33 P 150,000.00 75,000.00 P 75,000.00 II. III. U.S. CORPORATION BRITISH, ($) PHILIPPINE AND OTHER CORPORATIONS P 333,333.33 P 150,000.00 75,000.00 P 75,000.00 25,000.00 P 50,000.00 15% P 36,000.00 21,000.00 P 57,000.00 (18,000.00) P 39,000.00 25,000.00 P 50,000.00 15% P 8,500.00 3,000.00 P 11,500.00 (6,000.00) P 5,500.00 6,000.00 P 11,500.00 1 p 5 p 9 _ 8,000.00 P 18,000.00 i7,000.00 }3,000.00 P 132,000.00 9.3% 13.2% 3.9% I (12,000.00) P 26,000.00 12,00000 12,000.00 P 38,000.00 62,000.00 P 88,000.00 9.3% 13.2% 3.9% P 6,000.00 38,500.00 P 44,000.00 11.55% 1 3.2% 1.65% ($) Based on U. S. Income Tax Law after December 31, 1945. (x) Based on Philippine Income Tax Law from and after January 1, 1946. (t) British corporations organized in the British Empire are presumed to pay no tax in their country on income realized in the Philippines. Computations made at the request of the American Chamber of Commerce of the Philippines by Dalupan, Sanchez & Company, Certified Public Accountants "Our goal is vast expansion of agriculture throughout the world with freer access to raw materials and markets for all nations and wider distribution of the products of the earth's fields and factories among all peoples... Our hope is to multiply the fruitfulness of the earth and to diffuse its benefits among all mankind." President Truman 104

Review of the Report of the Joint Philippine-American Finance Commission ANONYMOUS HE Joint Philippine-American Finance Commission appointed as a result of negotiations between the two Governments to consider the financial and budgetary problems of the Philippines, to make recommendations to the Governments with reference to the tax system and administration, budget, public debt, currency and banking reform, exchange and trade problems, reconstruction and development, began its study on January 16, 1947. This study was completed June 7, 1947, when a comprehensive report was submitted to the President of the Republic of the Philippines and the President of the United States. As a matter of general interest the principal features of this report are here reviewed. The report deals primarily with the near future. The Commission regards the next few years as a period of national emergency in the sense that emergency measures and an emergency national psychology will be required if the country is to grasp the opportunity for rapid economic development which the current relatively favorable situation presents. The Commission proposes five major objectives and emphasizes that the recommended program has merit only if the proposals are all carried out substantially as recommended. In its opinion the report presents an integrated program to put the Government's financial house in order and to bring about rapid economic development. By this program the Government's budget would be brought into balance to establish conditions under which new investments could be made with confidence. Likewise, sufficient resources for economic development would be assured as measures could be taken to limit sharply the dissipation of foreign exchange for non-essential purposes. While the Philippine economy at present is in an exceptionally favorable position because of its abundant foreign exchange resources, the industrial and agricultural development contemplated by the Government will require the importation of very substantial quantities of capitalequipment and supplies. In addition, during the next six years foreign obligations totalling some $85,000,000 will mature. This sum covers debts incurred to the U. S. Reconstruction Finance Corporation and annual contributions to the sinking fund for the pre-1934 dollar bond issues. With a high level of money income in prospect, there is the possibility that lacking proper control measures, expenditures of foreign exchange on imports of non-essentials may be sufficiently large to force a curtailment in the economic development of the country unless adequate measures to restrict such non-essentials are taken. Such control measures would shift the pattern of imports to a much greater emphasis upon capital goods, thus in the long run resulting in a higher national income which should increase the capacity of the country to absorb and pay for imported commodities. The suggestion of adopting a system of quantitative limitation of imports is raised whereby (1) quarterly import quotas would be set in advance for particular goods or classes of goods; (2) bids would be invited for licenses to import all or portions of the quotas set; and (3) licenses would be sold upon the basis of the bids received in order to yield the maximum revenue to the Government. A taxation program must be designed to reduce the budget deficit to managable proportions for the fiscal year 1948 and to eliminate it in the fiscal year 1949. To make this possible, it is recommended: (a) that reorganization and strengthening of the tax bureaus be effected to develop a high level of morale and to retain qualified, efficient, and trustworthy personnel; (b) that corporate taxes be increased from the current 12% to 18% but that for the present there be no increase in individual income taxes; (c) that excess and percentage taxes on luxury goods be drastically increased; (d) that donor's and donee's gift taxes, and inheritance and estate taxes all be materially increased; (e) that real property taxation should be progressively developed to the point where it will yield at least P50,000,000 annually, as against the pre-war average of P14,500,000, and P10,700,000 for 1946. A domestic borrowing program to cover the deficit in the fiscal year 1948 and to provide capital funds thereafter, is of paramount importance. A central bank could assist materially in establishing and maintaining a domestic market for both short- and long-term Government securities, thus strengthening the credit of the Government and reducing the need for foreign borrowing. This program would require: (a) that securities offered would be direct general obligations of the Philippine Government; (b) that the pattern of interest rates for different securities would be set in such a way as to reflect the superiority of Government credit b} being somewhat lower than private rates but at the same time high enough to create an active demand; (c) that a sufficient diversification of maturities would be offered to meet the demand of various types of investors. The strengthening and expanding of banking and credit facilities to assist both private and public financing is felt to be essential. The Commission suggests that the banks should actively encourage the growth of savings deposits. The present provision in the banking law affecting domestic commercial banks that unimpaired capital and surplus must be at all times equal to 10% of deposit liabilities, regardless of the liquidity or character of the assets, is regarded by the Commission as unduly restrictive. It also is pointed out that the restriction on loans-loans to any one borrower must be kept within 15% of a domestic bank's capital and surplus, works to the disadvantage of the Filipino banks vis-a-vis branches of foreign banks. It is suggested that this limitation be liberalized. The Commission pays tribute to the banking community's post-war effective contribution to the successful progressive development of the country's war-torn economy. The Commission recommends that the Philippine Government adopt a managed monetary system in which monetary authority and responsibility would rest in a central bank. There will naturally be required, therefore, a preparatory period during which the monetary and banking problems facing the country today can be analyzed and the precise form, structure, and operation of the proposed bank, including its relationship to existing Government lending-institutions, can be determined. The introduction of such a system would entail the abandonment of the automatic 100% reserve system and permit the 105

central bank to regulate the money supply to meet the internal needs of the economy. Its objective would be to moderate the inflationary effects of temporary surpluses in the balance of payments by permitting reserves to rise in relation to the money supply if necessary, or to reduce the deflationary effects of a temporary deficit by allowing reserves to fall. It would mean a shift from an almost completely automatic gold-exchange standard system, one of the most conservative monetary systems in the world, to a modern managed-currency system which can to some degree insulate the domestic economy against temporary disequilibria in the balance of payments. A central bank would also provide an instrument through which comprehensive and authoritative data on inward and outward flows of funds could be compiled and capital flights controlled if the need should arise. The primary responsibilities of the bank would be: (a) to promote monetary, exchange, and credit conditions which will foster a growing and prosperous economy and help to keep the price and cost structure in proper adjustment with world prices and costs; (b) to strive for a coordination of fiscal and monetary policy consistent with this objective; (c) to seek to maintain the stability and convertibility of the peso in conformity with all international agreements to which the Philippine Government is a party; and (d) to exercise general supervision over the banking system for the purpose of assuring its liquidity, solvency, and effective operation in the general interests. The bank would be a banker's bank, wholly owned by the Government and established as a separate entity completely independent of existing Government banking and financial institutions. All banks in the Philippines, domestic and foreign, would be required to hold their legal reserves against deposits in the form of deposits with the central bank and be subject to its supervision. The bank would assume the liability for all Treasury Certificates outstanding on the date of opening. The Government would deposit with it foreign exchange and other assets equivalent to the liability assumed, and the bank would become the sole issuing authority for all notes and coins in circulation. The bank's power to make direct accommodations to the Government would be strictly limited. The bank's reserves in international money would be related to the demand for such money rather than to the volume of its note and deposit liabilities. The Commission believes that a conservative ratio would be 50%. The bank would be given adequate powers to control credit both quantitatively and qualitatively by providing for: (a) discretionary rediscounting of acceptable paper at selective rates; (b) flexable reserve requirements for the deposit liabilities of the commercial banks; (c) power to conduct open market operations; (d) supervision and examination of all commercial banks and of the Rehabilitation Finance Corporation. The bank would act as fiscal agent of the Government by serving as its depository, paying agent, and financial representative abroad, and would undertake to stabilize Government credit by promoting a broad market for Government securities and preventing wide or unwarranted fluctuations in their prices through market support, if necessary. The need of the bank for capital could be satisfactorily met by a moderate amount of paid-in capital and surplus. Specifically, the Commission had in mind a capitalization of between P,5,000,000 and PJ15,000,000. The power to require that all transactions of banks in gold and foreign exchange be reported to the central bank currently in order to make all necessary information concerning capital movements and current foreign transactions available, would be mandatory; as would also the power to impose exchange controls should they become necessary, subject to the approval of the President of the United States as required by the Executive Agreement. The bank should establish a strong, independent division of economic and statistical research to provide prompt, accurate, and reliable information for the public, as well as to the bank, and to make recommendations to the bank's governing board. The governing Board should be appointed by the President from among representatives of banking, agriculture, and industry; except that the Secretary of Finance, or his designate, should be an ex-officio member. To quote the comments of the Commission: "By creating a central bank the Philippine Government will create an institution with power to influence profoundly the course of the country's economic development. With that power comes a tremendous responsibility both for the Government and for the bank's management. The success with which that responsibility is discharged will depend upon the men to whom it is entrusted. The essence of good central banking is good judgment." While the report contemplates some drastic reforms, these would be the natural consequence of the change in the political status of the Philippines to an independent sovereign nation. "By concluding a trade agreement with America, we have a practically free market for all our products in the largest and most attractive market on earth. No nation enjoys that privilege except ours. But despite this trade agreement, we are completely free to sell our products anywhere and to buy what we need from anywhere." President Roxas 106

The Cebu Portland Cement Company By EDUARDO TAYLOR General Manager, Cebu Portland Cement Company A T the foot of a range of coral-limestone hills at Naga, _tiCebu, still stands the modern plant of the Cebu Portland Cement Company. The plant is in full operation and with its community of workers and their homes, school, club, hospital, and other features, makes up what may be described as a small city. In spite of the long Japanese occupation of the country, and Japanese operation of the plant, the latter emerged undamaged except for ordinary deterioration caused by lack of proper maintenance. Considering the widespread war damage suffered throughout the province of Cebu, it seems almost a miracle that the cement plant was spared. Our only regret is the murder by the enemy of some of our most experienced technical men. Established in 1922 with a capital investment of P2,750,000, the plant in Cebu started with a capacity of 1,000 barrels a day, later increased to 1,500 barrels. In 1938 a duplicate unit was installed to bring the total daily output to 3,000 barrels. The plant operates 24 hours a day throughout the year with only occasional shut-downs for repairs. Production in 1940 and in 1941 exceeded 1,000,000 barrels, a year (1 barrel is the equivalent of 4 bags). The Company is now capitalized at P6,000,000 held in the form of 60,000 shares of a par value of P100 each. Of these shares, 59,987 are owned by the National Development Company and the remaining few shares are directors' qualifying shares. The increase in capitalization was effected entirely through the declaration of stock dividends. The members of the Board of Directors are appointed by the President of the Philippines. The present composition of the board is: Hon. Ricardo Nepomuceno, Chairman Mr. Vicente Fragante, Director Mr. Isaias Fernando, Director Mr. Jose Fernandez, Director Mr. Felipe Estella is Secretary-Treasurer, Mr. Francisco Aragon is in charge of sales, and Mr. M. de Jesus is Purchasing Agent. Plant operations are under Felix Valencia, Assistant Superintendent, and Leandro S. Ocampo, Chief Engineer. Operations of two company-owned coal mines are under the supervision of H. C. Gapud. The plant is now in a position to produce its pre-war output of 3,000 barrels (12,000 bags) daily, but it has not been consistently turning out this amount because local demand and consumption have not yet reached this figure. Production can not be continued at full capacity when our cement storage-tanks and our clinker storage-space offer no more room, as is now the case most of the time. Since the plant was fully rehabilitated some time ago, all orders for cement have been filled promptly, contrary to the impression held in some quarters that there is still a local shortage. It is anticipated, however, that the cement needs of the Philippines both for public and private construction will in a short time be greater than the present capacity of the plant. For this reason, the authorities have authorized an immediate expansion at an expenditure of P5,400,000. This will give the plant a daily capacity of 6,000 barrels (24,000 bags) or double that of the present. Orders and contracts for the necessary machinery and equipment (all new and of the best design) have already been placed, and construction work at the plant in Cebu is now in progress. Arrival of the first items of machinery and equipment is expected in December of this year and other items will follow throughout 1948. Unless strikes and other tie-ups in the United States intervene, we expect to have the new units in operation before the close of 1948. Cooperating in the supply of the machinery and equipment are the Edward J. Nell Company (kilns, mills, coal-pulverizers, filters, 5000 KW turbo-generator, etc.), the GallagherToftman Corporation (two 800 HP waste-heat boilers, burners, cement-pumps, etc.), the Manila Machinery and Supply Company (crushers, conveyors, etc.), the Philippine Industrial Equipment Company (compressors, electrical equipment, etc.), the Atkins-Kroll Company (dustcollectors, etc.), Koppel (Philippines) Inc. (locomotives, quarry- and coal-cars, etc.), and several other Philippine and American firms. Of great concern to the management of the Company is the reduction of the price of cement to the lowest possible level, so as to bring down construction costs throughout the country. Every effort is being made to reduce production costs and the selling price of cement. During the last six months the price has been reduced by 70 centavos a bag, and it is hoped that further sizeable reductions can be made soon and repeatedly until pre-war prices can be approximated. "APO" Portland Cement is now being sold at P3.60 a bag in Manila. We frankly admit that this price is high as compared to the 1940 price of P1.40. But we have to contend with labor rates ranging from three to five times the pre-war rates; the same is true of material costs, as well as of freight and handling costs. Operating costs and freight and handling expenses are gradually being reduced, however, and with the approaching increase in production that will slash unit-costs, the price of cement to the consumer will certainly come down. A problem that existed last year is no longer one this year. I refer to the supply of fuel. Local coal mines could not supply the 7,000 tons of coal which the cement plant in Cebu consumes each month. During the past eight or ten months, however, coal mining has been so intensified, especially among private mines in the province of Cebu, that there now exists an over-production of this fuel. Philippine coal mines can now produce an aggregate of about 15,000 tons a month, and unless local industry can absorb all of this, the coal mining business will suffer a set-back. A remedy would be to permit the export of coal to neighboring countries. It is not the intention of the writer to take advantage of these pages for advertising purposes. It is believed, however, that many readers and users of "APO" Portland Cement would like to know of what quality this product is. I may state that in the manufacture of this cement a strict scientific control is maintained in all stages of its production, and that for this purpose a well-equipped and well-staffed chemical and physical laboratory is in continuous operation at the plant in Cebu. The quality of this cement is such that its chemical and physical properties not only comply with, but exceed by a comfortable margin, all standard specifications for cement, including the standard specifications of the Philippine Government, of the United States Government, and of the American Society for Testing Materials. 107

The Business View A monthly review of facts, trends, forecasts by Manila businessmen Office of the President From an Official Source HE Cabinet set aside on June 6, 1947, P10,000,000 for repairs or reconstruction of school houses in the provinces. Substantial progress was made in negotiations between the governments of the Philippines and Great Britain regarding a possible treaty of amity and general relations. On June 9, President Manuel Roxas designated the National Development Company as the agency to accept bids and to enter into contracts for the collection of scrap iron, copper, brass, steel, lead, and other metal products on land and under water. The lots and buildings at Lepanto Street formerly owned by the Japanese in the Philippines were transferred to the Philippine Government for a token payment of P3. Secretary of Finance Miguel Cuaderno represented the Philippines in the ECAFE (Economic Commission for Asia and the Far East), and was able to secure passage of a measure for the United Nations to extend rehabilitation aid immediately to the Philippines and other countries of the Far East. Republic Act No. 134 which severely punishes corporation "dummies" was approved by the President on Saturday, June 14. A loan agreement for $45,000,000 from the Reconstruction Finance Corporation of America and by Congressional authority was signed on June 14. President Roxas ordered on June 27 the immediate reduction of the ceiling price of lumber, and authorized the exportation of 20 per cent of the total quantity of sawn lumber in the local market, from July 15 to October 15, 1947. This exportation would only take place if there were enough lumber for local consumption. Twenty-five plantations in Davao with a total area of 13,000 hectares; a lot and a two-story house at 171 Gastambide (Manila); a lot and a two-story building at 852 R. Hidalgo (Manila); a lot and a two-story house at 250 Uli Uli (Manila); some other pieces of property and certain shares of stock, the whole aggregating P6,500,000 in value, were transferred to the Philippine Government on June 17 by the Philippine Alien Property Administration for a token payment of P6. On June 16, the President issued Executive Order No. 60 designating the Philippine National Bank as fiscal agent of the Republic of the Philippines in the United States. The transfer to the Government of 4,000 hectares of land in San Miguel, Tarlac, owned by Tabacalera, was effected on June 19. The total payment for 3,500 hectares of this property will be P1,500,000. The remainder of 500 hectares was a donation by the Tabacalera to the Philippine Government. The area of 3,500 hectares will be sold to the tenants at P400 a hectare. By Executive Order No. 61, the President increased the membership of the Surplus Property Commission from three to five. Ex-Congressman Jose E. Romero was appointed to the Commission. The fifth member has, to this date, not been appointed. In an interview with visiting American Government, newspaper, and business leaders, the President stated that the Philippines should be given a longer time to pay the loan of $75,000,000. Joaquin Pardo de Tavera was appointed on June 24 acting director of the Bureau of Investigation. The plans for a long-range power development in the Philippines were completed with the signing on June 25 of a contract between the Philippine Government and W. E. Knox, President and General Manager of Westinghouse International Electric Company. There are enough sera and vaccines in process of manufacture for use in the Philippines, according to Dr. Hilario H. Lara, Chief of the Institute of Hygiene. A Philippine exposition was held by the Filipino community in Honolulu from July 4 to July 6. Philippine industry and general p r o g r e s s were picturesquely represented in the exposition. The Floridablanca airbase at Floridablanca, Pampanga, which has a procurement cost of P10,300,000, was turned over to the Army of the Philippines by the United States Army on July 1. Free milk was distributed to indigent children throughcut the Philippines on July 3, 1947. This milk had a procurement cost of P63,000. Machine tools, machinery, industrial equipment, and integrated facilities such as caustic soda, iron and steel, were earmarked as reparations from Japan for the Philippines. A five per cent interim share to the Philippines was allowed by the United States directive issued on April 4, 1947. Eighty-four United States Navy ships were transferred by the United States Navy to the Philippine Government on July 9. One thousand two hundred-fifty grams of streptomycin received on June 30 were distributed among hospitals and similar institutions. The President on July 8, issued jointly with the Chief Executive of the United States the report of the Joint Philippine-American Finance Commission. The report outlines financial and trade programs designed to facilitate the economic rehabilitation and recovery in the Philippines.* *EDITOR'S NOTE: See page 105 for a review of this report. Banking and Finance By C. V. GRANT Sub-manager, National City Bank of New York HE outstanding event of interest to the country at large and to the banking community in particular since the publishing of the July issue of the Journal was the release of the report and recommendations of the Joint Philippine-American Finance Commission. This report is reviewed in another section of this issue. At the request of the International Monetary Fund, the Secretary of Finance has asked the cooperation of all banks in discouraging gold transactions at prices above monetary parity. During recent months, it is believed, considerable gold, both in the form of bullion and coins of national issue, has been purchased in the principal financial centers for shipment mainly to countries not members of the International Monetary Fund for speculative purposes. The Rehabilitation Finance Corporation has announced that it will offer P,5,000,000 worth of its bonds to the public to help finance current operations. These bonds will be issued with a 10-year maturity date, in denomina 108

tions of P100 and P 1,000, but will be available for redemption at any time after 60 days of issue. They will be sold on a discount basis to yield 1% if held for 1 year, 2% if held for two years, and 3% if held for three years or more. This is the first time that any Philippine Government corporation has attempted this type of financing, but the R.F.C. expects to develop a wide-spread market for the bonds among both individuals and companies with longterm funds to invest. Application has been made to the Securities and Exchange Commission by one of the foremost private companies to float a P,6,000,000 bond issue. This will be the first large-scale bond issue to be offered by a private institution since liberation. The note circulation as of June 30 totalled P,716,000,000, showing a slight increase of P2,000,000 from the previously reported figure as of May 31. This is a result of a transfer of $5,000,000 to the Treasury Certificate Fund received from the United States for account of War Damage payments. Due to reasons beyond its control, the Bureau of Banking has not been able to make available during the past month their usual detailed comparative figures of assets and liabilities of banks. Credit By DUNCAN BURN Association of Credit Men, Inc. (P.I.) T HERE are numerous definitions of credit. All definitions in the last analysis boil down to the matter of faith, belief, and trust. Credit has long been an important factor in commerce. At some periods credit has played a far more important part than in others. It is generally agreed that thus far, since the war in the Philippines, credit has been used to a very limited extent. This has been due to numerous causes, most of which are readily understandable. The period since the war has been one in which consumers have eagerly sought goods. Selling has been to a large extent effortless. There has been to a large degree a substantial amount of capital and cash with restricted available quantities of merchandise. There has been little request for credit on the part of consumers, and virtually no inclination on the part of merchants and others to establish credit facilities. Admittedly bank credit and bank facilities are not included in these comments. In recent months there has been a markedly noticeable increase of interest in and demand for credit. It is admitted in most circles that credit arrangements common to the normal conduct of trade will be resumed. General import firms have already made some headway in setting up credit departments and in extending credit in certain transactions. Other firms are gradually preparing to activate credit departments. In this connection the pre-war members of the Association of Credit Men, Inc. (P.I.) have recently held voluntary meetings among themselves and decided to resume actively that association. At present a total of 43 members are active in the Association of Credit Men, Inc. (P.I.), including financial houses, importers, manufacturers, and others. The Association has recently resumed the operation of a Ledger Interchange Bureau for the benefit of the members. It is the purpose of the Association to assist members in the establishing of credit policies and to provide other help in every possible way. As the use of credit becomes more widespread it is planned to so develop the services of the Association as to make it of increasing value to the members. There appears to be in the Philippines since the war a definite feeling of cooperativeness among persons and firms in commerce. This is a very healthy condition. Through trust and cooperation among those engaged in commerce, the normal and valuable use of credit can play its important part. Stock Market June 16 to July 15, 1947 By A. C. HALL A. C. Hall & Company T OWARD the end of June market sentiment deteriorated somewhat following press advices that the International Monetary Fund had asked member nations not to pay a premium on gpld purchases. Receipt Qf this news caused slightly increased pressure for a week or so, and our mining-share average registered a new low for the year on July 5. However, offerings at no time were heavy, and were easily absorbed by investment buying at some mark-down in prices. Since then the market has more than recovered earlier losses, and trading volume has picked up considerably on the advance. At the time of writing, there is a better feeling in market circles and prices, as measured by our ipdex, may have registered their lows for the downtrend which commenced on February 20. Turning to individual listed issues, Mindanao Mother Lode has been the best performer with a net gain of ten points during the period. Atok has been under some pressure on the lower production figure for June and rumors of some disagreement on their contract with Big Wedge. We understand the latter refers to the proper accounting allocation of sums of money spent for rehabilitation of the Big Wedge mill and mine. However, we have been informed by sources we consider reliable that an amicable agreement between the two companies will be reached on this matter. Surigao was also under some pressure which can be ascribed to anticipated sales of stock ex the coming rights. Over the month, Consolidated Mines was up two points in heavy trading. Their recent report to stockholders indicates a profitable future for the Company, and was favorably received. The other important chrome producer, AcpjeMining Company, traded at from 21 to 25 centavos with some 60,000 shares changing hands. This Company has recently negotiated a loan from the Reconstruction Finance Corporation and should be in production shortly. In unlisted mining issues, 5,000 shares Balatoc changed hands at P3.65, and East Mindanao sold at 1 centavo. Itogon was traded between 6-1/2 and 7 centavos, and a fair volume of United Paracales were done from 8 to 9 centavos. Coco Grove continued to change hands at 2-1/2 centavos and Paracale Gurmaos was traded at 9 centavos. On the over-the-counter market some 20,000 shares Benguet Consolidated traded from P3.70 to P4 during the month. A small lot of Antipolo Mining Company was done at 7-1/2 centavos. Far East Oil Development Company was extremely active on favorable reports of drilling operations, and about 1,150,000 shares were done from an opening price of 49 centavos, a high for the month of 75, and closing sales at 65 centavos. In the non-mining section of listed stocks, 100 shares Bank of the Philippine Islands were traded at P72. This stock closed at P70 bid; China Banks at P1 20 bid, no offers. There was no trading in the insurance section and bid prices remained unchanged from last month. A small lot of Philippine Education preferred was reported at P100, while 38,000 Philippine Racing traded from P1.02, with a high of P1.18, and closing of P1.14. Manila Wine Merchants opened at P4.50, traded at P5, and closed at P4.60 exdividend of 30 centavos, total sales 9,000. Small business was done in Marsman Common at 45 and 50 centavos; also 109

in Pampanga Bus Company at from P1.70 to P1.54. San Miguel Brewery continued to make progress, opening sales at P570 and closing at P610, with total sales of 155 shares. Sugar shares were weaker and the following business was reported: Bais, 54 shares at P675; Pasudeco, 113 shares at P21; Carlotas, 221 shares at P90; Pilares, 30 shares at P90; Tarlacs, 82 shares at P55; and Victorias, 100 shares at P115. In miscellaneous commercial issues over the counter, Philippine American Drug Company (Botica Boie) traded at P132 and P135 on total sales of 119 shares. Manila Jockey Club changed hands at P3. i "T~~m ': [_l;:.,_I I:,;^ ^i._l!:~ '!~!":" I I i [ ~~ ~I i ' A.:::::4:^.E & T * *~f -F -,T- rj...... - t. ^... -.-..-.)... — -... H t4Tis — A d - i — m a --;r t: —,- - -. r —,- -. r ~ -1- r -- -1 — -.-r-..i-,-.L..^- L.Ji i..-... _.. 4-..;-...... I.._.j...4..: —..... —.t —:p..... -b —. — -,tt-........ -t-. _ ---t_ z ----!-...r........ e....,. ' -— cq i -l- I - -— 'FJ.... I.-' At — -j —F —,... ~-T —[-t-t.... F - ]A i lU I's'TTyTT_ by+ ->- V —;-.i..l -.- ---.-..... l.....!t. -i.... -.-.e... ---: L i!!,! i; i l I! '- T"- t - i ~~- c-t -t; —~ ~-t V-L-! u -""-i-~-+ I '.. -:. _ 'La-...U-E-EYq- X-l'-F-i-'r" -' A....:.... r —.."q"-I — 77;'::.!-:-i T... I'-...;""1 " -Gl. —'""" —t. -.w........ I —.-....I1 -A, I f --- - -~i —~- -r — J. ---t-... — -r.... — l-... I,. — ~-i-i —$.-... iX-.....!........ -.l in ~-.i-, t,-t-!:, — jlr4 r ~-t-": —'?S i t......4 -"'~-... -.-. -— t --- [_.,.~._.._f.. t t t, I I, I, ri~I. ~~ ~ I., '! ] [ r - ~ r —1I 7' ''~.'t i I I.. ' — ' —r~... ---."'.- -i —,...... - t.. _I_~ -...: —I ].L J....;....I!i - '-~, —~ ':' ~.,, ' ed hazards inherent in and resulting from the ravages of a brutally destructive war." In the United States there are many agencies of proved value available to an underwriter as aids in the evaluation of the moral probity or moral risk involved. There are old established credit bureaus whose reports are readily accessible and constantly revised; whose reports are up to date and contain information collected and evaluated by experts with conclusions competent of acceptance at full value by underwriters. While these agencies perform an invaluable service, one of even greater value is the psychology of American business which permits of a free interchange of reliable credit information to a degree unknown here. Unfortunately, an underwriter in the Philippines has but few of these sources of information and where such sources are available the information frequently is incomplete and consequently is only of partial value. Yet it is essential for underwriters and business as a whole to have sources of credit information in order to judge intelligently the moral or credit risk involved. The difficulties attendant upon a solution of this problem are great but nevertheless surmountable if the business community would cooperate by interchanging information as to their individual experiences freely, for confidential use by accredited inquirers. It is obvious that no executive can tolerate a psychology which permits certain classes of businessmen to maintain separate sets of books; which condones frequent changes in trade-names and styles and allows the use of aliases, and in many instances relies upon financial statements that in essence are fraudulent. These abuses can be corrected by cooperative action to the benefit of the business community as a whole. A good index of the "many fires of questionable origin" can be found in a study of the number of fires in Manila and its immediate vicinity during the period from January 1, 1947, to June 30, 1947. These fires were those in the case of which the Manila Fire Department responded to the alarms, and do not include fires in other localities throughout the country. While the number of alarms answered is accurate, the property losses reported are only approximate. One can not help but notice that contentsloss (stocks of merchandise in bodegas and stores) during the month of January amounted to only P48,878 but that in February, March and April, such losses jumped respectively to P1,171,433, P1,918,200 and P1,228,304. While these figures are only approximate, it was immediately preceding and during these three months that prices on canned foods, textiles, and flour dropped so materially, due principally to overstocking. The majority of the contents-fire losses were on these commodities. It is no wonder a fire underwriter could but regard many of these losses as of "questionable origin". While the following recapitulation of fires within Manila is interesting, one must add to these the other serious losses throughout the Philippines, and particularly the conflagrations in Cebu City, Tacloban, and Cabanatuan during the same period. Manila Mining Share Averages for the period from June 16 to July 15 MANILA STOCK EXCHANGE LISTED MINING SHARES JUNE 16 TO JULY 15, 1947 TOTAL SALES HIGH Antamok Goldfields.... 30,000 P. 028 Atok Gold Mining Co... 338,600 1.12 Baguio Gold Mining Co. 24,000.06 BatongBuhay Gold Mines 2,650,000.008 Big Wedge Mining Co... 140,300 1,20 Consolidated Mines, Inc. 9,551,000.013 I.X.L. Mining Company 10,000.08 Lepanto Consolidated... 273,000.32 Masbate Consolidated... 233,000.05-3 Mindanao Mother Lode. 369,400.74 San Mauricio Mining Co 218,000.26 Surigao Consolidated.... 140,000.29 Low CLOSE CHANGE P.025 P.025 off.003.91 1.04 off.04.06.06 unchanged.0066.008 up.001 1 00 1.16 unchanged..0.013 up.002.07.08 up.01.27.31 unchanged 4.05.05 off.0075.65.74 up.10.20.21 up.01.22.25 off.04 Insurance By ARTHUR H. HENDERSON Vice-President, American International Underwriters for the Philippines, Inc. IN a previous article the writer discussed in general terms some of the problems confronting a fire-insurance underwriter in the Philippines today. In particular there was mentioned the "moral probity of the assured", the "many fire losses of questionable origin", and the "increas FIRE LOSSES IN THE MANILA AREA JANUARY TO JUNE, 1947 Number of fires Losses 1947 Within Outside city city Buildings Contents Total limits limits January.... 60 6 P 42,700 P 48,878 P 91,578 February... 71 3 114,615 1,171,433 1,286,048 March..... 88 11 280,874 1,918,200 2,199,074 April.... 73 4 497,443 1,228,304 1,725,747 May..... 45 4 173,402 588,660 762,062 June..... 63 4 67,302 579,974 647,276 400 29 P1,176,336 P5,535,449 P6,711,785 110

While such losses are a serious drain upon the Philippines economy, they are even more serious to the underwriter who must be prepared to pay when catastrophe strikes. To anyone familiar with Manila, it is obvious that the physical hazard of fire is greater than pre-war as a result of the ravages of a "brutally destructive war". While admittedly conditions in Manila are not good, due to lack of water-pressure in fire-mains, complete destruction of the fire-alarm telegraph system, traffic congestion, flimsy construction, and many other conditions, the situation in most of the provincial cities is far worse. In many of the provincial cities entire districts are built of nipa or sawali or of generally flimsy material, congestion is frequently greater, and fire protection generally less. Future articles in this column will deal with corrective measures. vicinity and includes in its membership most of the companies doing a marine insurance business in the United States. One of its important objects is to obtain prompt and accurate information regarding casualties which may affect interests, either cargo, hull, or otherwise. Casualties must be dealt with and claims adjusted at great distance from the home offices of the member companies, under local conditions of which the companies have little information at hand. In this light, the various Correspondents of the Board of Underwriters of New York are regarded as occupying outposts upon whom the members must rely for information as to conditions within each Correspondent's respective territory. E. E. Elser, Inc. are the Board's Correspondents for Manila and the island of Luzon and have served in that capacity for many years. C. M. JORDAN ONE of the most recent instances of America entering the Philippines to engage in busi Philippine corporation, is the organization life insurance company, known as the United S Insurance Company in the Philippines. The new was registered with the Securities and Exchange sion on June 21, and was issued a license to tra business of life, health, and accident insuranc Bank and Insurance Commissioner on July 10. company began business on July 22. The backers of the new company are the cc stockholders of the United States Life Insurance in the City or New York, which has been operati Philippines since 1936. The Board of Directors of the Philippine is composed of Earl Carroll, Galen D. Litchfiel M. Selser, Charles T. Balcoff, Arthur H. Hendei liam H. Cope, and Alfonso Ponce Enrile. The of Earl Carroll, President; Carl A. Leaf, Vice-I William H. Cope, Treasurer; Tomas Contreras, Caesar H. Grau has submitted his resignation as Treasurer of the Philippines to act in the capacity President of the Company upon acceptance of hi tion. The New York company expects to withdraw sale of new business in the Philippines at a later will continue to maintain an office in Manila for renewal premiums, paying claims, and otherwis its policy-holders. The management of the newly organized I company will be the same as the management of York Company in the Philippines. Both the Hoi of the Philippine company and the Branch Offi New York company are located in the Wilson Manila. The New York interests behind the organi; the Philippine company, have organized in E another "local" company under the name of the States Life Insurance Company in Hongkong, ] Hongkong company began operating on July 1, 1947. It is expected that other "local" Note: A large companies will be organized by Japane the same group in the near future in other places in the Far January......... East and in Central and South February. America. arch.......... America. Apfil........... CHARLES T. BALCOFF May........... Attorney June........... July........... August.......... HE Board of Underwriters September....... of New York is an associa- November....... tion of marine underwriters December...... having offices in New York and TOTAL........ ElR 1941 Avera mctric Power Production (Manila Electric Company System) By J. F. COTTON Treasurer, Manila Electric Company ge-15,316,000 KWH 1947 Kilowat Hours 1946 Kilowat Hours January........................ 17,543,000 9,286,000 February....................... 17,503,000 8,778,000 )ntrolling March......................... 20,140,000 10,122,000 Company April.......................... 19,601,000 9,849,000 ing in the May........................... 19,241,000 11,132,000 June........................... 17,898,000* 11,432,000 July.......................... 22,750,000** 12,333,000 company August...................... 14,411,000 d, George September...................................... 15,018,000 rson, W il- October......................................... 16,787,000 ficers are; November........................................ 15,767,000 President: December...................................... 17,984,000 *Revised Secretary. **Partially estimated Assstant Electric production increased sharply in July, 1947, to a record y of Vice- high. The July output was 10,417,000 KWH, or 84.4% greater, s resigna- than in July, 1946, and 4,852,000 KWH, or 27.1% greater, than in June, 1947. from the date, bReal Estate e serving By C. M. HOSKINS hilippie C. M. Hoskins &9 Co., Inc., Realtors Philippine 'the New HE real estate market continues firm. me Office j Residential properties are commanding excellent ce of the prices, especially those in the low and medium price Building, range. There is developing considerable buyer resistance to over-inflated prices, and sellers are beginning to see the zation of need for pricing at more attractive figures. [ongkong New residential construction of properties for rent has e United slowed up as a result of the President's recent executive Ltd. The order limiting rentals on dwellings to 12% of the assessed COMPARATIVE STATEMENT OF REAL ESTATE SALES IN MANILA percentage of 1945 sales and a diminishing percentage of 1946 sales, represent.se Occupation transactions not recorded until after liberation. 1940 P 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 P17,974,844 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,935 (?) P10,647,285 1945 P 7,943,605 1,337,830 (?) 213,262 962,008 1,212,680 1,123,565 699,740 1,870,670 2,096,893 2,555,472 2,874,408 P22,890,133 1946 1947 P 4,385,011 P 6,030,011.73 2,267,151 7,217,317.36 2,622,190 7,166,866.07 1,916,293 3,684,937 3,637,956 4,974,862 4,438,510 4,698,896 5,545,800 3,340,382 4,025,926 P45,537,914 P20,414,195.16 111

value. Even assuming assessments are based on current costs, 12% gross is unattractive, as it allows no margin for writing down the investment to the reduced replacement costs expected two or three years hence. A number of real estate operators have been active in buying war-damaged properties, rehabilitating them, and selling them at a profit. There is still a big field for this business, which will bring handsome profits to operators who understand building costs and know the market. Mortgage investments are now attractive to private capitalists. Domestic savings banks have in the past year gone heavily into mortgage loans and are close to their statutory limit. Construction By 0. A. BONI Vice-President and Chief Engineer, Atlantic, Gulf and Pacific Company of Manila DURING the past year, in the rehabilitation of major industries in the country, private industry has shown the way, with the oil companies leading in new construction. The various installations at Pandacan are nearly completed and will surpass the pre-war capacity. Large installations, in some cases exceeding pre-war capacity, have also been rebuilt at Cebu, Iloilo, Davao, and San Fernando, La Union. Sugar centrals are being rehabilitated in all areas and the next two seasons should bring many centrals into production. Several large factories for the manufacture of coconut-products have been rebuilt and others will be ready to operate in the near future. Power-plants are being restored, and very pronounced improvement has been made in spite of severe handicaps. The fact that pre-war firms are doing their utmost to rebuild their plants is the best evidence of their faith in the future of the Philippines. The Manila Railroad Company has accomplished a tremendous amount of work under severe working conditions and with the added handicap of lack of readily available material. The highway and bridge-reconstruction program has gotten underway, with two major highway projects nearing completion in Manila. The c intract for one large highway bridge in Ilocos Sur has been let and the contractor is awaiting the arrival of steel. Plans for bridges across the Pasig river are being prepared and these projects should be ready for bids within the next two months. The Manila Engineer District is advertising for bids for the construction of Pier Number 9 for the South Harbor. All of these projects, plus more to come, will mean full employment of all available construction facilities, with attendant demand for all types of construction materials and construction equipment. By H. H. KEYS Architect HE Philippines is facing a serious shortage in soiland waste-pipes and fittings. These, to the uninitiated, are the cast-iron drain pipes for bathrooms and kitchens. Much of the cast-iron pipe used so far has been purchased or acquired from old buildings. That supply is now largely depleted. The quantities brought in from the United States do not equal the demand. There seem to be considerable stocks of the pipes and fittings in the United States, but much of the supply has been set aside for Veterans' Housing. And though Veterans' Housing does not seem to be making very rapid progress, nevertheless the material is being held for the project. Pipes and fittings are under license, and unless arrangements can be made to meet the situation, these will be almost unobtainable here in the very near future. License is also required for toilets and bath-tubs. Here again the licensing is very limited, and stocks in Manila are about exhausted. Wash-basins and showerappliances, etc., are not licensed. This lack of supply will seriously affect future construction. Wall-boards of certain types are arriving in appreciable quantities, and the supply of insulation boards is improving. Reinforcing steel (mild) for reinforced concrete is licensed. Supply is limited. The black-market is frequently the main source of supply. The steel window-sash supply, while far from satisfactory, shows a slight improvemernt. Building-hardware (locks, hinges, etc.) is licensed. The available quantities are far from enough to satisfactorily meet the demand. Belgium glass is a little more plentiful. Imported floor- and wall-tile supplies are negligible. Apitong lumber is down a very little. So, unless some arrangement is made to have licenses increased, or adequate supplies of cast-iron pipe, plumbingfixtures, reinforcing, hardware, etc. are otherwise provided, the erection of new buildings or the repair of old buildings will become increasingly difficult. Yet there seems to be an increasing desire on the part of property owners to improve their property, and many are proceeding in spite of the increasing difficulty of obtaining materials. I repeat in effect from my article of last month, that until such time as a definite scheme of City-Planning is adopted and this becomes a law in accordance with which the City Engineer may grant or refuse building permits, property-owners will be unable to intelligently plan, in affected locations, future improvements. Many buildings are built on land leased from the Government, or, in case of the purchase of such land, the title carries the provision that within a certain number of years the Government may repurchase the property. The terms of some of these leases or of the period of the right to repurchase, have not ten years to go. Many of the buildings on the affected properties are badly damaged or entirely destroyed. The owners, quite naturally, do not care to make large reinvestment unless they can feel sure that the leases will be extended or that the options to rebuy will not be exercised in the very near future. It is hoped that an arrangement to extend the specified times may be made now with the Government, so that expenditure for rehabilitation will be justified. Building pe'rmits for July (to July 26) amounted to about P4,500,000 and covered about 300 permits. This shows an approximate average per permit of P15,400. Many are for small repairs and additions. Some threestory concrete buildings are noted. The fact that over 300 permits have been issued is a good indication that owners are trying to improve their property, be it large or small, in spite of shortages of essential materials and high prices. Machinery By GEO. H. EVANS The following interesting article on the. "elevator situation" in Manila, is published in the "Machinery" column for this month. Elevators H. E. HERTZ Manager, Philippines, Otis Elevator Company ONE of the big problems in the rehabilitation of the Philippines is, naturally, the reconstruction of war-damaged buildings. This involves the repair or replacement of elevators which were damaged. It seems that the 112

Japanese made a deliberate practice of placing mines in the elevator-shafts of the buildings. The shafts, acting as flues or chimneys, also spread fire throughout the buildings. An elevator must be so arranged that the travel is in a vertical or plumb line. With the terrific havoc rendered by the mining of the various buildings and the earthquakereaction of the explosions, many buildings are out of plumb, and the installation of new elevators in such buildings is a problem in engineering. Some buildings are as much as 7 inches or even more out of plumb, which necessitates special arrangement of the steel guide-rails between which the elevator ascends or descends in the shaftway. Building-owners in Manila are naturally anxious to provide, as soon as possible, vertical means of transportation for their tenants, but the world-wide demand for machinery of all kinds makes it difficult to obtain elevatormachinery also. However, anticipating that there would be a great need for elevators in the Far East, some companies set up and allocated certain parts of their basic material, such as copper, bronze, etc. in advance, so that when the need came, these materials could be fabricated in accordance with the requirements. Elevators are always custom-built, that is, they are built to meet the requirements of particular buildings. Coupled with the problem of obtaining copper, brass, and steel, is the problem of providing adequate power to run the machinery. The Manila Electric Company suffered terrific losses but, fortunately, has been able to provide a limited amount of power; the hope is that in the not too distant future, additional power-plants will be constructed. Because of the damage caused by mines and fire, few elevators functioned in Manila immediately after the war, with the result that people have become what we may call "elevator-conscious". Due to the fact that in any large city elevators carry more people in one day than any other means of transportation, people for many years have simply taken them for granted, but since the war they have shown keen interest in the matter. There are many new elevators being installed in Manila, and in proportion to the number of buildings, we can say that the city will have the most up-to-date elevators known in the elevator industry. Many of the existing office buildings which are now being rehabilitated will have elevators of the type which is used in modern skyscrapers. Some of the buildings in which new elevators are being or will be installed are the following: Ayala Building Hongkong-Shanghai Bank Building Heacock Building Philippine National Bank Building Filipinas Building Wilson Building Regina Building Yutivo Sons Hardware Building Wise Building Elena Apartments Building Great Eastern Hotel Building Angela Apartments Building For many years, the elevator-car slid up and down the shaftway on greased guide-shoes which fit onto T-shaped rails. In accordance with modern practice, many of the new elevator installations in Manila will have what are known as "roller guides". These guides consist of rollers fitted to the framework supporting the elevator-car, and they run on the sides and face of the T-shaped rails. The rollers are provided with small rubber tires. No grease is used; the rollers operate on dry rails and the objectionable noise which sometimes develop from the solid cast-iron guide-shoes is eliminated. With the new type of rollerguides, the car seems to float up and down the shaft with the slight horizontal movements quickly taken up by the rollers. Friction is decreased and the efficiency of the elevator is increased; there is less danger of fire in the shaft way, as there is no grease or lint which the grease picks up; and there is a complete absence of knocks and sways. This is typical of one of the many improvements in the manufacture of new elevators. Because of the war, many new developments were brought about in the elevator industry as in other machinery lines. The need for compactness, lightness, and strength caused many changes in the fabrication of new parts. The large aircraft-carriers required elevators not only for the crews but for moving the airplanes from the lower decks to the flight-decks and back again. These had to be constructed at the minimum weight, and so as to require the minimum attention in maintenance and repair. In many cases now, welded joints are not used. It is to be hoped that improvement in the electricalpower situation will be realized at an early date, so that people in Manila will not from time to time have to climb long flights of stairs to reach their offices even in buildings where there are elevators. But there are difficulties in installing new elevators in old buildings, as compared to installing them in new buildings. Before installing new equipment in a building where the former equipment was damaged, complete removal of the existing material is often called for. The original strength of the metal may have been altered by the heat, and the condition of supporting beams, concrete walls, etc., must also be taken into considzration. In many cases where fire has touched the concrete, this has been so weakened that the ordinary steel brackets which support beams, guide-rails, etc., can no longer be used, but special channels and beams have to be installed to support the brackets. There is another factor which has come up since the war, and that is that the Manila Electric Company has a program under way to change the power-supply in many sections of the city from 2-phase to 3-phase. This necessitates considerable alteration even in those elevators which were but slightly damaged and can still be used. It is the plan of the Manila Electric Company to eventually have all the sections of the city supplied with 3-phase power. There were approximately ten elevators functioning immediately after the war, and all of these were built to operate on 2-phase power; they will eventually be changed to operate on 3-phase power. Port of M1anila By H. W. TITUS Luzon Stevedoring Company, Inc. HE biggest news in the Port of Manila this month and for some time to come perhaps, is the report of the District Engineer, Manila Engineering District, to the Chief of Engineers, War Department, Washington, D. C., entitled prosaically "Revised Sub-project FY 1947", but the sub-title is the punch-line "Reconstruction and Improvement of Port Facilities, Philippines". That foreign trade is the life-blood of the Philippines is a trite statement. The project represents a concrete step toward making that blood flow more freely and in richer quality through not only the reconstruction of pre-war port facilities, but improvement over such as were available before the war to assist Manila to take an even greater part in the post-war trade of the Far East. The work to be accomplished in the project is authorized in Title III of the Philippine Rehabilitation Act of 1946 of the United States Congress (Public Law 370, 79th Congress, Chapter 342, 2nd Session) which reads in part: "... the Corps of Engineers is authorized... to carry out a program for the rehabilitation, improvement, and construction of Port and harbor facilities in the Philippines... in accordance with established procedures applicable to river and harbor projects". The principal items contemplated include the following: 1. Reconstruction of Pier 9, in the South Harbor, Manila, which provides for construction of a new reinforced concrete Pier, 339 feet wide by 985 feet long, over the existing Pier, with four cargo-sheds (see accompanying illustration). Bids have already been advertised, and the estimated date of commencement of the work is January 1, 1948, with a target date of completion on or about December 31, 1949. 113

a8c 'ii,~ I~:.u i-~ w ~': L i~~ Ye..':~ ''' ~.JR1 r jL~ :d '' ~ Reproduction of the Architect's Drawing of the new Pier 9, 339 feet w 2. Construction of concrete paving for San Francisco, Boston, 13th, 16th, 20th and 25th Streets in the South Harbor of Manila, for which bids have been received and contract is shortly to be let, has been estimated to start on August 1, 1947, and to be completed about February 1, 1948. 3. Repair of the damaged North Harbor breakwater, completion of its unfinished portion and its extension by about 2500 feet, has already been contracted for and work is expected to be completed about August 31, 1948. 4. Construction of asphalt streets in the area of North Harbor, Manila, including Marginal, Azcarraga, and Moriones Streets, and the necessary drainage facilities, will be started shortly; it is expected that work will be completed by approximately January 15, 1948. The razing of damaged structures and the restoration of existing Pier 13, have been deferred until the new Pier 9 has been completed and the extent of the necessary restoration of outlying national ports has been determined. The balance of funds then available will be applied to a partial restoration of Pier 13. One of the reasons for this is the need which was felt of keeping this pier open until work on Pier 9 would be completed. The work on Pier 9 will at any rate cancel out berths for vessels at that pier, and very likely the South berth of Pier 7 and the North berth at Pier 11. Viewed in this context, the four berths available at Pier 13 become doubly necessary during the period of construction of Pier 9. Also, though inadequate, the present covered space on Pier 13, it was felt, should be retained until Pier 9 is finished. Finally, it was concluded that within the budget of money allocated to the Manila Harbor, it would be more advantageous to construct a modern, financially profitable Pier, and provide in transit covered-storage space on it, rather than to expend the whole or an even greater amount of money for a partial restoration of Pier 9 and Pier 13. While previous plans had called for a construction of Pier 9 in three phases, utilizing where possible the pedestals and other concrete portions of the existing structure, the revised project contemplates the construction of a completely new Pier, 339 feet wide and 985 feet long, complete with cargo-sheds, over the existing old Pier, as a single-phase operation to provide a modern, efficient facility. It is of interest to note in <v; > e i '':; ^ -~ summary form, the additional profis Joz 3>^y. <jects to be undertaken at a later {;'::f~yl'~ G:' ' * date, which are contemplated under the program. 1. Restoration of the wharf and breakwater at the ports of Tabaco and Legaspi, Albay.;Xjj~ j~: ^ 2. Restoraticn of the damaged por^ 'sr e.;.*tion of the Guimaras marginal wharf and P C i ~ the cargo-shed at Iloilo. 14 ^"jy^ -'*''. 3. Construction of a new concreteand-steel marginal wharf, approximately,',, >,,' >^y;,,,.. 40 feet by 500 feet, at Cagayan Port, Lao +'...~~. '.:^:.:Mindanao. 4. Repairs to the marignal wharf y j~~~;'i~, and Piers 1, 2, and 3, Cebu, Cebu. Repair of the cargo-shed on Piers 1 and 2, _ra ';*3:''*^*.^^' i' and construction of a new cargo-shed on Pier 3. te '^??:1 '^ ^ 5. Construction of a new reinforced;; sS 2concrete marginal wharf at Sasa, Port of Davao, Mindanao, 80 feet wide by 450 feet long, including an access road. 6. Restoration of the marginal wharf at Jose Panganiban, Camarines Norte. 7. Restoration of the wharf apide and 984 feet long proaches at Zamboanga, Zamboanga, Mindanao. 8. Restoration of the wharf and the repair of the steel-sheet piling bulkhead in the Causeway, Jolo, Jolo. 9. Restoration of the Pier and repairs to the cargo-shed at Pulupandan, Negros Occidental. 10. Repairs to damaged piles on two piers at Iligan, Lanao, Mindanao. 11. Acquisition of the dredges Barth and Sacramento and accessories. The whole of the foregoing, including the work to be done at once under funds appropriated for Sub-project FY 1947, is estimated to cost P36,000,000, of which P18,000,000 of the United States funds has so far been provided; the remainder is expected under authority of the Philippine Rehabilitation Act. All this provides the basis for a belief in the greater development of foreign and inter-island shipping not only for the Port of Manila, but for the whole Philippines. Now and for many years to come, water transportation is and will continue to be the principal means for import into and export from the Philippines and between the ports within the archipelago. Ocean Shipping BY F. M. GISPERT Secretary, Associated Steamship Lines HE month of June showed a decline in the total exports from the Philippines as compared with the month of May, i.e., 95,993 tons for June as against 108,697 tons for May, the chief reason being the sharp decline in copra and hemp shipments. The main exports for June as compared with May shipments are as follows: Desiccated Coconut..............Tons Coconut Oil..................... " C opra.......................... " Copra Cake....................... " Rattan Furniture............... " G um s........................... " H em p.......................... B ales Ores, Chrome...................Tons R ope........................... " Tobaccc........................ " May 3,437 717 66,820 3,267 847 118 100,852 13,700 109 223 June 4,331 1,358 29,000 1,900 537 28 69,022 20,000 1,212 172 114

CARGO EXPORTED FROM THE PHILIPPINES TO ALL DESTINATIONS BY NATIONALITIES 1947 American British Chinese Danish Dutch Filipino French ____~~ _- _ -- ___ __ Norwegian Swedish Panamian Honduras JANUARY Number of Sailings. Tons............ Per cent........ FEBRUARY Number of Sailings. Tons........... Per cent........ MARCH Number of Sailings. Tons........... Per cent........ APRIL Number of Sailings. Tons........... Per cent........ 22 8 8,888 8.64 52,964 51.51 31 7 71,811 61.19 7,454 6.35 36 5 58,863 43.48 3,615 2.67 2 100.10 1 5.004 1 20.02 2 4 12,126 11.79 3 4,515 3.85 3 6,976 5.15 5 11,874 8.33 6 13.403 12.33 3 5,288 5.51 1 50.05 1 3,181 2.71 3 4,274 3.16 2 242.17 7 3,227 2.97 6 1,272 1.31 6 10,307 10.03 2 634.56 3 367.28 7 3,524 2.47 6 13,083 12.04 4 6,740 7.02 6 13,503 13.13 6 11,692 9.96 13 42,924 31.70 5 17,195 12.06 4 6,676 6.14 10 16,105 16.77 3 4,886 4.75 6 18,025 15.36 3 51.60 3.81 4 4,082 2.87 7 11,242 10.34 4 9,581 9.98 2 7,000 5.17 1 2,000 1.40 1 28.02 1 116.08 1 4,950 3.47 1 1,260 1.15 Total 52 102,824 100 58 117,345 100 70 135,395 100 71 142,566 100 71 108,697 100 63 95,993 100 35 10 68,830 48.98 24,319 17.06 1 4,550 3.19 Canadian 1 3,000 2.76 MAY Number of Sailings. 27 11 7,803 7.18 Tons............ Per cent........ JUNE Number of Sailings Tons.......... Per cent........ 48,983 45.07 51,598 53.77 8 5,400 5.63 9.01 Exports were boosted by an unusual shipment of 25,844 tons of flour purchased locally by the U.S. Army for shipment to Japan. Exports by countries showed as follows: United States..................... Canada........................ C h in a......................... Jap an........................... Netherlands East Indies............ Straits, Saigon, and India.......... E urope........................... Australia.......................... Africa............................ South America................... 44,540 tons 3,286 " 1,827 " 25,844 " 880 " 783 " 16,168 " 120 " 1,840 " 705 " Number of sailings dropped off somewhat owing to the decline in offerings as is reflected in the accompanying table: Inter-Island Shipping By EDWARD DANKS Vice-President and Treasurer, Everett Steamship Corporation IN last month's article we dealt with the early phases of inter-island shipping when first started by the U. S. Maritime Commission with 30 small freight vessels (FS) and 8 big vessels (Cl-MAV-1 and N3) operated by the Everett Steamship Corporation and the American President Lines. These ships, in addition to those acquired by other shipping companies, were not sufficient at that time to take care of the big demand for space to take consumer goods to the provinces which for some time seemed insatiable. There has, however, since been a big decrease in outward cargo carried, this being brought about as a result of merchants holding stocks which are far more than their volume of sales. Also, with conditions gradually coming back to normal, free-lance merchants are disappearing, and this has reduced passenger travel. All this has resulted in competition coming into the picture. All sorts of measures are therefore being taken to gain the patronage of shippers and travelers, and present shippers will note that ships now observe fixed days of departure and have definite ports of call; cargo is being handled with more care and there are fewer cases of loss and pilferage; black-market rates are disappearing. Passengers will note that better accommodations are being given them, good food is being served, and courtesy is being shown. Competition is also making it so that shipping companies have to assign vessels to ports of minor importance. All these developments are bringing about a betterment of conditions in general, though at the expense and, in some cases, at the sacrifice of the shipping companies. Maintaining schedules is being hampered by poor facilities at the outports as well as by the increasing congestion caused by the ever increasing calls by offshore vessels. In this connection, there are rumors that interisland operators will make representation with the proper authorities so that inter-island vessels be given priority in docking. In the inter-island service there are some new additions: the S.S. Charles McDonnell, an N3-type vessel which is soon to be placed by the Everett Steamship Corporation in the Aparri and Currimao run in place on the Northern Hawker, same type of ship, which will be placed in the Legaspi-Tabaco-Tandoc run; the M,S. Anakan, operated by Madrigal Company and assigned in the Aparri run, and the lumber schooner Consuelo A owned by Gregorio Araneta;, Inc., which does not have regular ports of call. While competition brings about a betterment of conditions to the public in general, care should be exercised in not overdoing certain practices such as price-cutting, which will in the long run be prejudicial to all shipping companies because prevailing authorized rates in many instances are already non-compensatory. 115

Air Transportation By V. A. BRUSSOLO Vice-President, Philippine Air Lines ITH the purchase of FEATI by the Philippine Air VW VLines, Inc. recently, civilian aviation took a definite step forward in the more extensive development of routes and increased service to the people of the Philippines and the Far East. While FEATI and Philippine Air Lines existed as the two major airlines in the Philippines, it was inevitable that profitable routes should be duplicated, to the detriment of non-paying and losing routes which consequently suffered curtailment. Doubling its previous fleet of inter-island and overseas aircraft, Philippine Air Lines has extended its routes considerably while at the same time offering passenger fares which in most cases are 25% below the pre-war rates. With approximately 50 aircraft for domestic use, Philippine Air Lines is dispatching only one-half of its fleet on scheduled domestic flights, thus ensuring adequate maintenance of aircraft and conservation of aircraft utility. Its fleet of Douglas DC-4's, popularly known as "Skymasters", will be shortly augmented by Douglas DC-6's, the latest word in means of air-travel. These giant ships are to be used exclusively in overseas service between Manila and San Francisco (Oakland), via Guam and Honolulu, and between Manila and Hongkong and Shanghai. Meanwhile, the Commercial Air Lines, Inc., which had heretofore operated locally on a non-schedule basis, has been granted a limited schedule-permit to operate on any domestic route two times a week. In addition, CALI makes regular flights to a number of Far Eastern points. It is believed that uniformity of shipping and passenger rates will work out locally, as it has with the different international airlines in overseas service. Today, Philippine Air Lines, Pan American Airways, and North West Airlines are successfully applying uniform rates to the United States and to Hongkong and Shanghai. Latest civilian aeronautics statistics in the Philippines reveal that for every one passenger before the war, there are now a hundred passengers flying; and for every 100 pounds of air-freight in 1941 there are 3000 pounds today. Accountable for this phenomenal increase in the airline business are the vital factors of lower-than-prewar rates, speed in handling, and increased safety in the Philippine airways. The past month marked the inauguration of the North West Airlines service connecting the Philippines with China, Japan, and the United States over what is known as the Aleutian route. Pan-American Airways now maintains a five-day a-week service with the United States via the Central Pacific, one of these weekly trips connecting with the round-the-world service via Bangkok ard Calcutta. Land Transportation (Bus Lines) By L. D. LozKwooD T HIS is the rainy season, always the slack season for the transportation business. People naturally do not travel so much when it is raining. There are more interruptions of service due to floods than in pre-war years because of the destruction of so many bridges. Roads which have been Qnly provisionally repaired since the war are getting rapidly worse because of the rains. This means more broken springs and additional maintenance costs. Since our last report the Pampanga Bus Company has received a very satisfactory settlement of its claim against the United States Army. This will make it possible for "Pambusco" to speed up its rehabilitation. The business of one of the largest post-war operators in Northern Luzon is being offered for sale. The first application for a permanent post-war Certificate of Public Convenience came up for hearing in the Public Service Commission a few days ago. The Commission stated that it was not prepared to act on the case now and put it over until September. The applicant seeks to invade the territory of a large pre-war operator and the applicatiop will be vigorously contested. The case will be watched with interest by all operators. Gold-Copper By CHAS. A. MITKE Consulting Mining Engineer HE International Monetary Fund management recently went on record as against transactions in gold above $35 an ounce. Naturally, banks in member countries are expected to cooperate with the Fund management in this respect, but it is believed that only direct legislation can prevent dealings in the metal at higher prices. On the other hand, there are many opposing views. For instance, there is a rumor to the effect that the British Government has refused to ship gold to make dollar exchange at $35. The McIntyre-Porcupine, one of the largest Canadian gold producers, has declined to sell its gold to the Canadian Government at $35. President Neilly told shareholders, at a recent annual meeting of the McIntyre-Porcupine Mines, Ltd., in Toronto, Canada, that "the open market for gold is substantially above $35 an ounce, and (our) directors believe the open market price indicates a trend that cannot long be ignored... If International exchange is to approach near-equilibrium, the value must be based on something more dependable and more practical than the majority opinion of a debating society." Chairman Bicknell of the same company, disclosed that the company has replaced its short term low yield bonds by gold in storage, to the extent of $5,887,000. An announcement over the local Manila radio, on the night of July 17, stated that a Chinese firm, operating in Manila, had made a trial purchase of P39,820 worth of gold (said to have been produced by Big Wedge), at $45.50 an ounce. Surigao Consolidated is reported to have received an offer of $40 an ounce for newly mined gold at Surigao. A very significant announcement was made by Secretary of the Treasury, John W. Snyder, in Washington, D.C. on June 11 which indicated that the Government is unconcerned over an offer of the American Smelting & Refining Company to buy and sell gold internationally, above the United States price of $35 an ounce, and "will not try to prevent it". The American mining firm said it would buy raw gold from Canadian producers above the $35 figure, refine it in the United States, and then re-export it for sale elsewhere at a higher price. It is also said that President Truman and the Hon. MacKenzie King of Canada discussed the gold situation at a recent meeting. J. K. Baillie, financial editor of the Evening Herald and Express, Los Angeles, California, is quoted as having said recently: "A wild gold boom is on in South Africa. Cables to brokerage houses here and in New York report that trading in good shares is volcanic, swamping the facilities of financial houses and forcing the exchanges to close down until they can catch up with orders. "Two of the largest gold leases in the history of the territory were completed last week. These leases have ample area and the ore runs in value equal to the Rand. Over 10,000 men will be employed. 116

"Most of the miners throughout the entire South African area are sold on the idea that the price of gold will soon advance from $35 to $40 an ounce. With reasonable gold content, miners there can profitably operate on $35, and if it goes to $40, many low-grade border-line deposits will be put in production. "British financial papers arriving here disclose that a boost in the gold price is expected there also." Chas. F. Willis, special contributor to the Mining World, San Francisco, says: "Day by day the whispers concerning an imminent boost in the price of gold are growing louder and more frequent. Some people, supposedly well informed, predict that such an upward revision will come within a matter of weeks. These expressions are not coming from the type of folk who ordinarily stick their necks out very far. The suggestion has been put forward that the advance, if, as, and when made by the U.S. Government, will bring the fixed price up to 852.50, an increase of 50 per cent." There are those who insist that a rise in the price of gold is absolutely necessary to take care of the disparity between the value of the dollar and foreign currencies in the matter of international trade. P. M. Anderson, managing director of Union Corporation, Johannesburg, South Africa, in addressing the 75th Anniversary Jubilee of the A.I.M.E. on "The Future of Gold in the World Economy", stated that he saw no basis for fear over gold's future status. He viewed gold as having a function in monetary systems similar to that of standby capacity in a power plant, and predicted that democratic nations will return to gold as rapidly as they can solve the emergency problems which have grown out of the war. Presuming that the Far East will improve its economic status, he saw it as a market for nearly half the gold production of the future. He predicted that the financially stronger democratic countries would soon make gold available to citizens, and that the financially weaker ones would find gold a necessary medium of exchange because of lack of confidence in their paper. "The prime necessity [he said] will be for reserve stocks of inter national legal tender. In many countries these gold stocks may be held separately, as were the exchange equalization stocks in Britain in the 1930's, and their fluctuations may not be readily disclosed. They may not even form part of the backing of the reserve bank money, nor be encumbered with any limit expressed as a percentage of the gold issues. "The second necessity is that gold may be acquired by the public or held in sufficient quantities by the monetary authorities for sale to the public, if the latter should desire it. Gold will once more be available to the public, without obligation on the monetary authorities to sell it at the present prices in all circumstances. However, those countries which may be described as the front-line, or devastated areas of Europe, will be very slow in giving their people access to gold. "The extraordinary movements of gold, which resulted in the United States now having two-thirds of all the monetary gold in the world, will not be repeated. These movements were due to non-economic capital movements, which, in future, will be better controlled in most countries. "At the present price of the metal, gold will be produced in quantities sufficient for a steady expansion,but not in any great abundance. Gold will presumably be added to the world's stock at a rate closer to 2% than to 3% per annum. "The outlook for gold does not depend on particular forms of monetary policy, for instance on a rturn to a gold standard. It depends, however, on recognition of the economic freedom and independence of the individual. Orators have sometimes spoken of 'nailing nations to a golden cross'. But in fact, the integration of gold into monetary systems makes the individual less dependent on the vagaries of his own government, and nations less dependent on those of foreign governments and institutions. I am confident of the future of gold in world economy, because I am hopeful that a large measure of economic freedom will ba restored throughout the western world in due course." The Engineering G Mining Journal, New York, in a recent issue, stated: "It is interesting to note that the faith of gold producers in continued prestige for gold is being sustained by events in the news of the day. The Economists National Committee on Monetary Policy has recently come out for a return to a modified gold standard. Because this committee is not identified with any producer interest, in our opinion its action is an early manifestation of a situation we have long anticipated." It is reported that the American Treasury is still buying gold from Russia. Secretary of the Treasury, John W. Snyder, in response to an inquiry, stated: "It is the policy of the Treasury Department to buy gold offered to it by governments and central banks of countries with which we maintain financial and commercial relations.... The Treasury believes that the purchase of gold in accordance with the established policy is necessary to the continued use and free acceptance of gold as an international medium of exchange." PRIOR to the war, the Philippines was looked upon primarily asa gold-producing country. True, it had extensive iron deposits, but these ores were only marketable in Japan. Lepanto was its one and only steady copper producer, while chrome and manganese were produced intermittently, mostly from Zambales and Busuanga. Intensive prospecting in the past eighteen months, however, indicates that the future of the mining industry in the Philippines may be bound up largely with the production of copper, and that on a comparatively large scale. In 1941 copper was known to exist at many places, but the deposits were believed to be small, and many of them did not warrant the large expenditures involved in the development, production, and treatment of the various forms of ore in which copper occurs. Recent information, however, indicates that, in the future, sizable deposits may be opened up, some of which have earmarks of ranking favorably with the larger deposits in the United States. At the present time, there is a world shortage of copper, and the metal is selling in New York for 23 cents, or 46 centavos, a pound. As an incentive to the finding of new ore-bodies, the State of Michigan is offering inducements in the form of tax relief. A bill has recently been introduced in the State Legislature, providing a ten-year tax exemption for newly discovered ore, or ore proved in the ground that is not part of the property of an operating mine. Here, in the Philippines, all our former treatment plants are gone. In 1941, there were two copper smelters, one, smelting copper ores exclusively, at Lepanto, and the other, a gold-silver-copper-lead smelter, in Paracale. Now, there is none. Japan has an excess cop,per-smelting and refining capacity, and, undoubtedly, some of this will be declared surplus. The raw materials are here; first of all, copper concentrates from Lepanto; second, concentrates from nearly all gold-mining companies, all of which contain a certain amount of copper; and, third, new deposits, containing from 5% to 36% copper, scattered over the Islands, some of which also contain a high percentage of sulphur. The necessary fluxes are also available. The copper smelter, if obtained from Japan, should be accompanied by a 600 H.P. thermal-electric unit and machine-tools for a machine shop. Also a sulphuric-acid plant. The smelter and thermal power plant should be located at some convenient point, near deep water, and an accompanying sulphuric-acid plant installed to utilize the waste surplus gases fr om the smelter and convert them into acid. Since the Philippines will have access to the phosphate rock deposits in Angaur and other islands, east and southeast of Mindanao, these could be shipped to the smelter to be processed into fertilizer. The combination of sulphuric-acid and phosphate rock makes a super-phosphate fertilizer which has been found to double and treble tile rice crops in Japar. Authors' Note: Since writing the foregoing, U. S. Treasury officials have come to a decision to prevent export of gold at any premium price, and are requesting countries which are members of the International Monetary Fund Committee to do likewise. 117

The copper smelter would fill a great need: (1) As an aid to gold mining, by treating gold-copper concentrates; (2) Copper ores would be mined and shipped from many places all over the Philippines, and thereby increase development of present latent copper deposits; (3) Sulphur would be furnished for the making of sulphuric acid, and subsequent treatment of phosphate rock for the manufacture of super-phosphate fertilizer; (4) There being a shortage of copper at present, it brings the very high price of 46 centavos a pound. It would become a valuable export commodity. The Government will shortly erect a large sawmill of its own. Producers may welcome this venture, for after a period of operation, the Government will be better able to understand the problems which confront our lumber producers today. But it will take time for the Government to determine the actual cost of its lumber operations, and by then it may be too late for this to help private producers. Copra and Coconut Oil By MANUEL IGUAL General Manager, El Dorado Trading Company, Inc. Lumber By E. C. VON KAUFFu President, Philippine Lumber Prod,T HE general impression is that the cessive, though the Government in its power to bring the prices ( level which would be within the react to build or rebuild their homes, and has a scale of ceiling prices. Many people think that lumber the cost of constructing a house, but illustrate the point, a study was mad portionate costs of the lumber, other i which go into such construction. Taking as an example a house w which today will cost around P18,000 t the cost of the lumber used at the pr price of tanguile at P290 for finished li 000 board feet, the cost would be P2,9 the total cost of the house. A comparative statement of the Cost of lumber, 10,000 bd. ft........ Concrete and masonry............... Hardware, roofing, nails, other materials, and electric installations...... Painting.......................... Labor and supervision............... P This is actual cost of construction for the contractor. The foregoing figures were taken fr( built this year at lumber prices slightly ceiling prices. An increase of P50 per thousand lumber would dnly add P500 to the cost in the case of a house worth P18,000, yel board feet more for the producer mig could produce lumber at a reasonable losing money, as at present. Construction materials and labor 400% higher than pre-war, as against 1 which is only about 150% higher. The ceiling of prices now in force i many producers who will be compelll Some small producers can afford to shut better times, but not so the producers most of their resources in sawmills and and who each have several hundred la their operations. What profit they have in the past has been reinvested in ad' and equipment to increase their produc find themselves barely getting their co AND KENNETH B. DAY President, Philippine Refining Company VIANN HE period under review covers that from June 1 to lucers' Association j July 15. cost of lumber is ex- The copra market opened firm in June 'with is doing everything European buyers bidding up to $180 f.o.b. per long ton, ofluberdown to a with sellers generally asking $185. A sizable sale was Iof those who wish recorded to Japan at the beginning of the month at $185 recently estableish f.o.b. and this price makes the high point for the period. The American market opened with buyers at $175 c.i.f. and the market continued rather quiet during the first is the chief item n week or so. Toward the end of the first week, European this is not so. To buyers realized that the American market did not offer e showing the pro- much encouragement and succeeded in buying at $175 materials, and labor f.o.b., and as American crushers did not find any support in the oil market they also reduced their ideas of price rith three bedrooms with the result that the market sol4 off rather sharply, and to build, and basing by the 18th of the month sales to Europe were recorded at,esent retail ceiling- as low as $140 f.o.b. with hardly any buying interest on the amber, utilizing 10,- part of American crushers at $145 c.i.f. Sellers were again }00, or only 16% of afforded an opportunity to sell to Japan over 10,000 tons, which went on bids 5,100 on the 18th, sold at $142.75 f.o.b. costs follows: for nearby positions, while on the 19th 5,000 tons additional were sold for a later delivery at the average price of 2% 90$138.20 f.o.b. These sales had no effect at all on the market 2,930.044 16.0 as the market kept on declining, and by the 21st a sale was 2,85.44 1 recorded at as low as $135 c.i.f., Pacific coast, which also 6,053.64 33.5 marks the low for this period. 1,200.00 6.6 5,7423. 31.9 Tho Sharp decline brought about by che apparent lack - ---— _ - of buying interest, caused the Philippine Coconut Producers 18,092.45 100% Association towards the middle of June to again request the Philippine Government for complete decontrol of copra. without any profit American crushers under the threat of another shipping strike', did not change their views nor could they afford to om a house actually be optimistic, not knowing for how long they would be higher than present deprived of copra. Fortunately, the shipping strike was a more or less nominal affair as work was renewed a few days board feet on the after the strike was announced., which is not much In spite of this, the copra market continued rather t P50 per thousand sluggish under heavy selling pressure with an occasional;ht mean that he small sale to Europe at $140 f.o.b. Late in the month, e profit instead of upon reports of the possibility of abolishing the International Emergency Food Council on June 30, with the concosts average over sequent freeing of controls, sellers became more optimistic the price of lumber and while foreign markets remained weak with highest quotations from Europe at $135 f.o.b. and $140 c.i.f. Pacific s, in fact, affecting coast, sellers modified their ideas and ceased offering for a ed to shut down. few days with the result that at the end of the month nothdown and wait for ing was available at less than $145 c.i.f. At this stage, who have invested the large oil buyers in America indicated willingness to logging machinery buy in volume and during the first few days of July sales borers employed in were reported to the Pacific coast at $145 c.i.f. This, in ebeen able to make turn, compelled European buyers to adjust their prices ditional machinery which were soon advanced to $144. On the 4th of July, tion, and they now reports from Washington to the effect that the IEFC had st for lumber sold. allocated the equivalent of 80,000 tons of oil, approximately 118

equivalent to 125,000 tons of copra, caused some buyers to further modify their views and, for fear that as a result of the new allocations buyers might exert more pressure, the market improved and limited sales were recorded at $150 and $155 f.o.b. This resulted in developing here strong selling resistance as sellers generally advanced their ideas to the minimum of $160, so that hardly any trading resulted. Conditions remained more or less unchanged up to the 10th of July when heavy offering to Europe caused buyers to withdraw after declining offers at $150 f.o.b. Immediately after, sellers here realized that without support from Europe the American market would again sell off, there having been hardly any improvement in oils and fats, and started offering very heavily. On the 15th of July, the best bids in the market were $140 f.o.b. and $142.50 c.i.f. The coconut-oil market opened in the United States at the beginning of June at the nominal price of 13-13/2 but without much interest on the part of either buyers or sellers. Buyers felt that the quoted price was rather high with relation to other fats and oils, and on the other hand, American crushers were not particularly keen in offering in the face of the copra strength prevailing during the first few days of June. By the 11th, once a decline in copra prices had been initiated here, sellers started to offer at 13 cents to find that there was no substantial buying interest at over 12 cents. While a few days afterwards moderate oil offerings were made at 12 0, this met with no success, but a break in the tallow and grease markets resulted in heavy selling pressure eventually forcing sellers to review their ideas of price. On the 19th, scattering sales were reported at 11 ~ and while buyers thereafter expressed ideas at 10 i, additional sales at 11 0 were recorded. This established the market momentarily and while sellers continued offering at 11, no business resulted until late the third week of June when sales were recorded at 10Y1/. July began with relatively strong buying interest and several thousand tons of oil were sold at 11 5, which price more or less continued up to the 15th of July, although occasional small sales were made during the interim at 11Y40 and 111/2. Preliminary export figures for June were extremely disappointing. Total copra exports were given as 29,000 tons, which is the lowest figure by far recorded in the year. During the period under review, Manila markets reflected within narrower limits the over-all picture as modified by local conditions, falling from P35 per 100 kilos early in June to P24 by the 20th, recovering to P28 by July 10, only to sag again to a nominal P25 before the middle of the month. The market as a whole was lethargic and without sustained volume interest, which, combined with light production, increased consumption for desiccated manufacture, and export interest from adjacent outports, made for a comparatively featureless market. Locally produced oil fluctuated from 80 to 60 centavos per kilo, with fair demand. Very little copra cake was sold but prices ranged within a few dollars of $70 per ton f.o.b. for expeller cake. By mid-July, the heavy copra season was in sight, but production was considerably short of what was expected. Intelligent opinion was divided as to future prospects. With the American market lagging behind European buyers, however, and with these buyers operating on restricted IEFC quotas, it seemed reasonable to suppose that the market will continue to fluctuate, but within ever diminishing limits, and with a generally downward trend. Clearly, European buying is based on quotas and availability of dollar balances; American buying on the statistical position of coconut oil as contrasted with other fats, is comparatively weak, but unlikely to deteriorate as rapidly from now on as it recently has. Desiccated Coconut By HOWARD R. HICK President and General Manager Peter Paul Philippine Corporation HE desiccated coconut industry has been slow in coming back due to the fact that most factories were destroyed during the war. And, although building materials were available at a price, it was almost impossible to get the special machinery necessary for the processing of desiccated coconut products. Before the war, there were nine manufacturers of this product and, with the exception of two factories which were slightly damaged, all were destroyed. These mills produced 92,089,278 lbs. of desiccated coconut in 1940; and, during the first ten months of 1941, when the industry was accelerated due to stocking tendencies because of war scares, these factories produced 106,666,692 lbs. The Canlubang Sugar Estate, with their small coconut factory, was the first pre-war factory to get started, early in February, 1946. They sold their product locally and it was exported by the Franklin Baker Company, who were the first to revive the industry. The Sun Ripe Coconut Products Company started later, in February of 1946, and were the second to export desiccated coconut. Both of these factories were only slightly damaged; and, in several months when repairs were completed, they were up to pre-war production. A newcomer, the Peter Paul Philippines Corporation, was the first to erect a factory and began operating in October of 1946, closely followed by the Blue Bar Coconut Company and!the Philippine Desiccated Coconut Company, operating their factory at Lusacan, Quezon Province, two old pre-war companies which have done an excellent job of rehabilitating their destroyed property and getting into production. The next to start production was a newcomer in the industry but an old established Philippine interest, the, Marsman Company, which broke all precedent and opened operations north of Manila. This factory began production in May, 1947. Red V Coconut Products, Ltd., as a Smith Bell interest, and Cooperative Coconut Products, two old pre-war companies, began operations early in July, 1947, followed by the Franklin Baker Company several weeks later. SHIPPING STATISTICS OF MANUFACTURERS OF DESICCATED COCONUT Status Status 1947 Production Pre-war Post-war Jan.-June Canlubang Sugar Estate.............. operating operating * Blue Bar Coconut Products............ " 6,224,340 lbs. Red V Coconut Produtts............. " " None Philippine Desiccated Co............ " ** Sun Ripe Coconut Products Co....... " " 4,100,500 Furukawa Coconut Products.......... " not operating None Cooperative Coconut Products, Inc..... " operating None Consolidated Trading Corp.............. " not operating None Franklin Baker Co... " operating 2,846,900 Peter Paul Philippine Corp.............. not operating " 7,721,400 Marsman and Com pany, Inc....4....... 314,600 United Coconut Products, Inc............. " *** Total.......................... 21,207,740 lbs. * Packing for Franklin Baker Co. ** Operating with Blue Bar Coconut Products *** Operating with Cooperative Coconut Products. No shipments 119

120 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1947 The Franklin Baker Company have almost completed their factory buildings and within sixty days will probably have all machinery installed so that they will be very close to their pre-war factory production. It is interesting to note that the Franklin Baker Company has erected allsteel factory buildings which bid fair to make it one of the finest factory installations in the Far East. On July 31, 1947, the desiccated coconut industry could be considered 54% revived on the basis of a comparison with 1941 production figures and, by the end of 1947, this will have increased to about 91% of the 1941 figures. This revival is remarkable in that most of it was accomplished in 1947, as most companies went through a cooling off period after the cessation of hostilities during which Philippine independence and general business conditions were studied before large policy decisions were made. When the "go signal" was given, the industry accelerated very fast and almost all pre-war manufacturers started exporting. To date, only two pre-war companies have failed to come back into the business, one of these, a former Japanese company, is being liquidated as enemy property and is not likely to be allowed to resume operations in this country. Three new companies have entered the field and they will more than take the place of the missing two. For a list of pre-war and post-war desiccated coconut companies showing their status and shipping statistics for the first half of 1947, see page 119. Manila Hemp By MURRAY COOK International Harvester Comnpany of the Philippines N June, the Davao market started on a very steady note. It is now apparent that during May Chainese dealers had liquidated their entire holdings of loose hemp, and were in a favorable position to restock and hold for an advance. Production was also slightly lower. A few sales were made on the basis of DA 'J1 at P31 to P33 per picul for loose hemp during the first week of the month. These prices brought out very little hemp, and exporters who were getting low on loose hemp, to maintain their pressing establishments, were compelled to raise prices still further. The result was a rapidly rising market, although world demand was at a minimum, due to heavy buying during May. In our last report, we indicated a closing price of DA 'Jl of P30, which advanced steadily and closed at P42 on June 30. The strength in Davao gradually reflected in prices of non-Davao grades which began to show signs of strength about the middle of the month. The close at the end of May of P32 for Ji proved to be the low for June. The advance proved less spectacular than Davao grades, however, and ended up the month with a firm note at P34 to P35 per picul for loose hemp. During June, production continued heavy and established a post-war record, 74,677 bales being inspected, approved, and certified by the Fiber Inspection Service. DavaQ led by Provinces with a total of 34,376 bales, while Albay carme next with 11,896 bales. This brings the total for the first half of 1947 to 381,584 bales of 126.5 kilos net. Sugar By G. G. GORDON Secretary - Treasurer, Philippine Sugar Association OF importance to the sugar industry is the news that the Philippines has been allocated 38,000 tons of fertilizer, the importation and distribution of which will be handled by the Philippine Government. This will undoubtedly greatly assist the large expansion of cane production planned for the 1948-49 crop. HALLICRAFTERS ECHOPHONE, a product of HALLICRAFTERS SPECIAL THIS MONTH! Model EC-114, 6-tube, three band AC/DC Table Model P155.00 f.o.b. Manila A radio receiver you will be proud to own. Tune in on shortwave and get the splendid programs of Voice of America and the Army broadcast from Los Angeles HALLICRAFTERS DISTRIBUTORS F. H. STEVENS & CO. El Hogar Filipino Bldg. Manila PHILIPPINE EDUCATION CO. 1104 Castillejos Manila j

August, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 121 Despite many difficulties of procurement of the necessary machinery and supplies, reconstruction is proceeding satisfactorily at a number of centrals which suffered considerable war damage. In addition to this reconstruction work on centrals, a great deal requires to be done to cover the losses suffered by planters in the destruction of buildings, agricultural rrachinery, and work animals. It is anticipated that the Government will facilitate finances necessary to enable the planters to return to full production. Dr. Antonio A. Lizares and Mr. Juan Cojuangco have been elected members of the Executive Committee of the Philippine Sugar Association. It is reported that Mr. Geo. H. Fairchild, formerly President of the Association, who is at present in New York, may return to the Philippines about the end of this year. Food Products By C. G. HERDMAN Marsman Trading Corporation HERE is very little comment that can be made on food products and the local market at this time. Conditions are essentially the same as those ruling a month ago and reported in the last issue of the Journal except that conditions, if anything, are slightly worse than at that time. The situation with regard to canned milk is slightly better, Prices have firmed up P1.00 or so per case, but the market is still heavily overloaded and all brands are being sold at prices well below either actual landed costs or replacement costs. Flour stocks are still very greatly in excess of consumption and prices in general are even lower than a month ago. It had been hoped that arrangement would m THE 1VERY BEST THAT M ONEY CAN BUY I that's what sp ortsmen say of our FIREARMS AND AMMUNITION Each brand a champion because they are all products of America's leading m manufacturers: REMINGTON WINCHESTER COLT LLAMAa SMITH &WESSON FOR ARMS AND AMMUNITION 1004-6 R. HIDALGO, QUIAPO ATLANTIC GULF & PACIFIC COMPANY OF MANILA EXECUTIVE & SALES OFFICE 222 REGINA BUILDING TEL. 2-83-64 ENGINEERING DEPT. & SHOPS PUNTA, SANTA ANA TEL. 8-63-32 * 0 0* ENGINEERS-CONTRACTORS * * * DIS TRIB UTOR S FOR FAIRBANKS MORSE & CO. GARDNER DENVER CO. CHAIN BELT CO. ARMCO INTERNATIONAL CORP. PIONEER ENGINEERING WORKS YORK CORPORATION LINCOLN ELECTRIC CO. WALSH REFRACTORIES CORP. MARION POWER SHOVEL CO. I 11

122 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1947 be made for export of approximately 7,500 tons of this excess flour to Japan for relief purposes. Negotiations to effect this still continue and it is possible that they will shortly be successful. If that comes to pass, then the position here will be considerably changed, and importers will again find it possible to place orders for new stock with the possibility of being able to move it upon arrival at a profit. The market on canned fish is rapidly clearing up with the advent of the typhoon season and the corresponding decrease in supplies of local fish. Movement from local stocks has been excellent for the last three weeks or more. Prices have firmed to a point where a reasonable profit is now possible on sales, and there is every reason to believe present stocks will have entered into consumption by the time new pack fish from California can arrive. This will probably be during the second half of September. The situation as regards canned fruit and canned vegetables remains unchanged. Some few varieties are practically unobtainable, but the varieties which can be obtained still continue in stock in quantities far in excess of actual requirements and are moving to consumers in nearly all instances at prices well below costs. This is also true of canned coffee, stocks of which remain quite heavy and all brands have been selling freely considerably below the imported cost. It is the general belief that no real improvement in imported food-lines in the Philippines can be expected before September or October. Textiles By JAMES TRAYNOR T HE local textile market during the month of June showed definite improvement over the depressed condition ruling during the month of May. The off-take continued to be large and caused shortages in some lines. Pending orders with American mills were about cleaned up and importers placed their first orders for several months. New ordering was on a highly selective basis and continued through July. Arrivals from the United States during June were estimated to be less than one-fourth of the average for the first five months. Rumors prevalent here to the effect that the New York textile market was expected to show a decided weakness with lowered prices, have proved to be incorrect. New York prices improved and most mills have completely sold their entire production for the next four to six months. The combination of local sales in large quantities, small arrivals, and a firm New York market caused local prices to somewhat draw into line with replacement costs and in some cases local prices went above replacement. A further strengthening influence on the local market is the comparatively small quantities American mills offer for nearby shipment. Legislation and Court Decisions By EWALD E. SELPH Ross, Selph, Carrascoso 9 Janda AT the time of the last issue of the Journal some of the yA bills passed by the Congress of the Philippines had not yet been acted upon by the President. Among those we did not comment on were the following: Republic Act No. 100 authorizes certain additional officials, including public school officials, to administer oaths on war-damage claims and provides that no docu~~~~~\ _________________,'S~~~~~~~~~~~~~~ pp — COMPLETE LINE OF AGRICULTURAL MACHINERY AND EQUIPMENT FOR MODERN FARMING, RICE MILLS, RICE THRESHERS, ENGINES, PLOWS, HAR ROWS, TRACTORS, CORN GRINDERS, CORN SHELLERS. -I mina-M I INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA CEBU BACOLO D DAVAO I I m INTERNATIONAL Trucks I

AMniTrTAN CRT-AMBER OF COMMERCE JOURNAL 123 A..-,.4 1 n rA ' Au 'g s- 9, /rL ' -- --—,- --- - Y - - --- -----. mentary stamp shall be required on any claim papers, affidavits, or other documents to be submitted to the Philippine War Damage Commission. Republic Act No. 133 authorizes the mortgage of private real property for a period not exceeding five years, renewable for another five, in favor of any individual, corporation, or association, but if the mortgagee is disqualified to acquire or hold lands of the public domain, such person or entity cannot bid or take part in any sale of such property. Republic Act No. 142 amends the section of the Tariff Act relating to consular invoices and provides that consular officers having knowledge of any case or any practice which may defraud the revenue of the Philippines shall report the facts to the Insular Collector of Customs through the Secretary of Foreign Affairs. Republic Act No. 172 increases the penalties' for using the trade-name, trade-mark, or service-mark of another or a colorable imitation thereof. A service-mark is defined to include slogans and distinctive features of radio or other advertising of services. Republic Act No. 184 regulates the practice of electrical engineering and requires certificates of registration. It specifies qualifications for the different branches of electrical work, including master electricians, and also includes those who take charge of the sale, distribution, installation, and operation and maintenance of electric equipment requiring engineering calculations or application of engineering principles and data. It provides for exemption from examination of those having certain experience and who were registered under Act No. 2985 of the Philippine Legislature. It applies to certain X-Ray and electronic equipment. It also provides that no foreigner shall be entitled to registration unless the country of which he is a citizen TOPS IN oMMAERCIAL PHOTOGRAPHY! COMI~ECIF Manila Railroad Bridge (SEE US FOR ANYTHING PHOTOGRAPHIC) 446 DASMARIN X// 9 Official Poto46446raphers forINAS ff v M A N I L. A Official Photographers for AMERICAN CHAMBER OF COMMERCE JOURNAL b - I I I A Use..t... ST A N G A S DELIVERED TO YOU IN SAFE, STEEL BOTTLES. DELIVERED TO YOU IN SAFE, STEEL BOTTLES. PUT YOUR PRE-WAR GAS APPLIANCES TO USE We will gladly inspect your pre-war gas equipment and explain to you how it, can be used again. Our trained Service Personnel will make the complete installation for you. For Particulars, Inquire At STANDARD-VACUUM OIL COMPANY:2-73-64 500 Tanduay, Manila Tels. 2-86-2 2-86-28 Sales Office I I. _ _

124 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1947 specifically permits Filipino engineers to practice within its territorial limits on the same basis as citizens of such country. Among recent Executive Orders of the President which may be of interest to business men is Executive,Order No. 54 which transfers the powers and duties of the Treasurer of the Philippines pertaining to insurance, mutual benefit, relief and benevolent societies and associations, and trusts for charitable uses, to the Bank Commissioner. The complete rules and regulations of the U. S. Philippine Alien Property Administration were published on page 1397 in the April Official Gazette. Most of the Supreme Court and Appellate Court decisions which have been published deal with either criminal cases or disputes between landlords and tenants. Philippine Government Corporations From an Official Source REALIZING the immediate necessity of rehabilitating the war-torn economy of the country, the Republic has engaged the services of a group of American engineers headed by Henry E. Beyster to act as advisers and consultants. In an effort to promote reconstruction and stimulate production from raw materials available, this technical staff has drafted a short-range industrial expansion and rehabilitation program, involving an estimated total expenditure of P40,980,000, embracing 29 dif ferent types of industries, 12 of which have already been approved by the President, namely: livestock, and rice and corn projects, Insular Sugar Refining Corporation, (rehabilitation), nail plant, sawmill, paper plant, finishing-mill, sash-and-door plant, fishing boats (building), textile-mill (expansion), and plywood plant. As an initial step in the establishment of the plant for the manufacture of nails and bolts, all available scrap iron in the Philippines is now being collected and dumped inside the Pureza Compound. The total cost of construction of the proposed plant, designed for a capacity of 5,000 tons of nails per year, is P711,136, including the cost of the building and the equipment. President Roxas has authorized the acquisition of a sawmill and finishing mill located at Jackson, Mississippi. The cost of the machinery, equipment, supplies and services is estimated at a total of P1,243,460. The capacity of this sawmill is 100,000 board-feet a day operating 10 hours. According to present plans, the sawmill is to be erected in Agusan. The other mill sites being considered are in Palawan, Surigao, Mindoro, Polillo, southwest Negros, and Davao. The finishing-mill will be put up either at the NDC compound (Manila), in Bataan, or in Batangas. The technical staff is also preparing a long-range program for the utilization of the machinery and equipment which may be obtained as reparations from Japan. Some of the projects envisioned by the program concern alcohol distillation, shipyards, soap manufacturing, automobile assembly, plastics manufacture, and other light industries. It is hoped that with adequate financing, the proposed industries and plants may be established within a period CHEVROLET OLDSMOBILE GMC DIESEL TRUCKS LIDDELL & COMPANY, INC. TELEPJJONE 2-90-40 I 13th and CHICAGO STREETS PORCT AREA, MANILA

Aullust. 1047 -AMERICAN CHAMBER OF COMMERCE JOURNAL 125 A jr-& A _ * I Aioii'al> 1Q47 AMERICAN CHAMBER OF COMMERCE JOURNAL 125 of 10 years in accordance with the short and long range programs now under study. It is estimated that a shortrange program of five years would require a capital investment of P400,000,000 which would involve the erection of Japanese reparations equipment and the purchase of additional new equipment for basic industries. Upon invitation of the Philippine Government, Robert E. Bingman, President of Bingman & Associates of Detroit, Michigan, arrived in Manila last May to make a survey of the Philippine cottage-industry program that would be directed to making available to Philippine nationals approximately 25 classes of products possible to manufacture in whole or in part in home and community workshops. The program is designed to enable Filipino businessmen to employ this form of labor in the production of exportable items using a maximum of Philippine labor, skill, and material. The Rice and Corn Production Administration was organized in the early part of 1947 as a unit of the National Development Company. This step was in line with the government program of increasing the production of rice, corn, and other agricultural crops in the country through the use of the farm-machinery and equipment available. The Rice and Corn Production Administration has both a short-range and a long-range plan. The short-range plan is for immediate execution, and calls for the opening and cultivation with mechanized farming of 10,000 hectares of land in the following regions, each project to begin one after another within a period of six years: Cotabato, Negros Occidental, Mindoro, Pangasinan, Nueva Ecija, and the Malig plain in the Cagayan Valley. Initial operations were started last March on a 2,000-hectare experimental I ~~~~ I * First post-war shipment of ACME RAPID PRINT AUTOMATIC TIME STAMPS...for Garages...for all Business Establishments _ ACME Standard TIME STAMP * Specified as the standard for government use for many years. Flexible, sturdy, light printing action, tamper-proof lock. ACME Rapid Print AUTOMATIC TIME STAMP A Permanent Time Record. Accurate synchronous timing. Automatic date and time change. Safety tamper-proof lock. ACME Rapid Print COST RECORDER & TIME CLOCK h For simplified cost keeping. Automatic day and time change. Automnatic ribbon feed and revcrse. Safety tamper-proof lock. I rr I --- I PHILIPPINE EDUCATION COMPANY 1104 CASTILLEJOS - QUIAPO Entrance thru Arleguf at A. Farneco I Philippine Distributors ACME BUSINESS MACHINES

126 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1947 AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR H. HENDERSON Executive Vice-Presideit Sixth Floor, Wilson Bldg., Manila Telephone: No. 2-64-68 Cable: "Underiters" Managers in the Philippines for:COMMERCIAL CASUALTY INSURANCE COMPANY THE EAST AND WEST INSURANCE COMPANY FIREMEN'S INSURANCE COMPANY THE FULTON FIRE INSURANCE COMPANY GRANITE STATE FIRE INSURANCE COMPANY THE HANOVER FIRE INSURANCE COMPANY MILWAUKEE MECHANICS' INSURANCE COMPANY NATIONAL UNION FIRE INSURANCE COMPANY NEW HAMPSHIRE FIRE INSURANCE COMPANY PACIFIC NATIONAL FIRE INSURANCE COMPANY SECURITY INSURANCE COMPANY Fire and Allied Lines CASUALTY - AUTOMOBILE- MARINE - REINSURANCE I farm in the NDC-owned Sabani Estate in Laur, Nueva Ecija. This is to be the forerunner of the several 10,000 -hectare units to be scattered all over the Philippines. Upon recommendation of the Beyster technical staff, the NDC board of directors has authorized a total appropriation of P12,900 to complete work on the cataloguing, cleaning, salvaging, and storing of the pulp and paper plant left by the retreating Japanese on the premises of the Insular Sugar Refining Company i'n Mandaluyong, Rizal. The salvaging and cataloguing have already been completed, and the missing parts identified. The salvaged machinery is estimated to be worth P500,000. In order to complete the installation of this pulp and paper mill, the board of directors has approved an appropriation of P1,250,000 for the purchase of the missing parts and the needed accessories. This project will be able to operate within six months after the arrival of the parts and accessories ordered from the United States. The mill, when finally erected, will have a capacity of 25 tons a day, and will be able to produce manila paper which can be converted into paper bags for cement, envelopes, wrapping-paper, newsprint, and cardboard. All this will mean the utilization of raw materials —such as low-grade abaca, cottonwaste and waste paper, palusapis, lawan and almon (2nd and 3rd group lumber varieties), bamboo and bohos (a special variety of bamboo), cogon and talahib (two grasses), and rice-straw-which greatly abound in the Philippines. United States Government Agencies in the Philippines From an Official Source UNITED STATES PUBLIC ROADS ADMINISTRATION PHILIPPINE DIVISION Post Office Building, Manila DIVISION ENGINEER..................... Francis C. Turner STAFF OFFICER IN CHARGE OF Programming and Planning........... A. C. Taylor Highway Construction and M aintenance..................... E. D. Johnson Bridge Construction and Maintenance (Acting)............. C. C. Sadler Administrative Management.......... R. E. Hultman M aterials............................. W. L. Eager Creation and Authority The Congress of the United States of America enacted Public Law 370 (79th Congress) April 30, 1946, providing, among other things, that its Public Roads Administration is authorized to plan, design, restore, and build in accordance with its usual contract procedures, in cooperation with the Philippine Government, certain roads, streets, and bridges as may be determined necessary from the standpoint of the national defense and economic rehabilitation of the Republic of the Philippines and to the extent that the President of the United States approves the findings in a report on Philippine Highway Requirements as prepared by the Public Roads Administration. The Act further provides training, in accordance with such regulations as may be adopted by the Commissioner of the Public Roads Administration, for not to exceed ten Filipino engineers from the regularly employed staff of the Philippine Bureau of Public Works, to be designated by the President of the Philippines. r~~r l ia l j -Pi) TEL. 2-65-72 PHILIPPINE DISTRIBUTORS FOR W. P. FULLER & CO. (PAINTS, OILS, GLASS) WYETH, INCORPORATED (DRUGS, PHARMACEUTICALS, BIOLOGICALS) INTERNATIONAL GENERAL ELECTRIC CO. (HOTPOINT APPLIANCES, ELECTRIC WIRING & ACCESSORIES) 0 FILTRINE MANUFACTURING CO. (COMMERCIAL WATER COOLERS & FILTERS) SEEGER-SUNBEAM CORPORATION (COMMERCIAL REFRIGERATED BOXES) 0 THE GENERAL TIRE & RUBBER CO. 0 NATIONAL DISTILLERS PHILPROM I

August, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 127 In more than thirty years of experience in working with the highway departments of the various States, the Public Roads Administration has developed a scheme of cooperation that works with the minimum of conflict and a maximum of results. This system is being followed in the Philippines with only such minor modifications as are dictated by local conditions. The basic tenet of this system is such that the initiative lies with the Philippine Bureau of Public Works, and the Public Roads Administration acts solely in an advisory, supervisory, and administrative capacity. The Philippine Department of Public Works and Communications, through the Bureau of Public Works, chooses projects for immediate construction from among those most urgently needed and submits a program of proposed work to the U. S. Public Roads Administration. These individual projects are inspected for need, adequacy of design, and suitability to an over-all development of the road system. If found satisfactory the program is approved by the Public Roads Administration, and the Bureau of Public Works is advised to proceed with the detailed design of the selected projects. After the complete detailed plans, specifications, and estimates have been prepared, they are submitted to the Public Roads Administration where they are reviewed for completeness and adequacy. Particular attention is paid to provisions regarding construction methods and materials to see that efficient methods have been specified and local materials are used as advantageously as possible. When the plans, specifications, and estimate have been found satisfactory the Bureau of Public Works is authorized to advertise for the receipt of bids. Sealed bids are received, publicly opened, and read. Award of contract is made to the lowest responsible bidder by the Bureau of Public Works with the concurrence of the Public Roads Administration. The contract for construction of a project is between the Contractor and the Department of Public Works and Communications. A separate covenant between the Bureau of Public Works and the U. S. Public Roads Administration covers the financing of the work from the Philippine Rehabilitation Funds provided by Public Law 370 of the U. S. Congress. Engineering supervision and inspection of the work in progress is performed by engineers of the Bureau of Public Works and of the Public Roads Administration. As work progresses the Contractor is paid periodically by the Bureau of Public Works, which organization is reimbursed by the Public Roads Administration for work found to have been satisfactorily completed. A. C. HALL & CO. LOCAL & FOREIGN SECURITIES Members 201 Ayala Bldg. Manila Stock Exchange Tel. 2-74-52 | I --- The BACHRACH MOTOR CO., INC. PORT AREA, MANILA NASH-ENGLISH AUSTIN AUTOMOBILES WHITE-FEDERAL TRUCKS OPERATING RURAL TRANSIT PASSENGER-FREIGHT SERVICE BETWEEN MAN ILA —APARRI AND BMC TAXI CABS J,,, CONNELL BROS. CO. PHILIPPINES IMPORTERS FOOD PRODUCTS HARDWARE BUILDING MATERIALS PAINTS LEATHER I 505 WILSON BLDG. TEL. 2-63-03 II a

128 AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1947 Labor D E L A DAMA II N ES IFrom an Official Source DL LAn liAMAlvlf LINE vS P1rHE petition signed by some 400 workers of the MetroT politan Water District for an increase of 50 per cent in their pay was disapproved by the President on EXPRESS SERVICES TO June 20. The construction of a rest house, the assignment AND FROM:\T BOTH COASTS I ~Iof a jeep for emergency cases, and various hospitalization privileges were granted the laborers. There was no strike. OF THE UNITED STATES President Roxas in a conference with CLO leaders, said that the labor problem today in the Philippines consists not only of the dissatisfaction of tome laborers with INTERISLAND SERVICES THROUGHOUT THE COST OF LIVING INDEX OF A WAGE EARNER'S FAMILY IN MANILA BY MONTH. 1945 TO MAY, 1947 PHILIPPINE ISLANDS Prepared by the Bureau of the Census and Statistics 1941 =100 Fuel, All House Clothing Light MiscelFood Rent and laneous Items (59.15)2 (8.43)2 (0.62)! Water (17.86)2 (13.94)2 1945 March........... 559.8 635.5 236.4 1695.2 237.1 674.4 THE E LA RAMA STEAMSHIP C., April............ 598.8 702.1 236.4 1611.9 254.3 661.4 May............. 689.7 799.4 236.4 2041.5 380.7 7348 SCTTPOWrWXETT^O Q June.......... 745.8 872.7 236.4 1860.8 410.8 788.7 USHIPOWNERS July....... 751.5 886.9 236.4 1664.2 393.4 794.1 Manila August........... 724.7 848.5 236.4 1484.5 397.6 774.3 September.... 708.4 852.4 236.4 1034.0 367.7 709.1 October.......... 735.3 937.8 236.4 1045.1 466.1 499.5 November........ 747.8 955.8 236.4 1017.0 480.2 499.9 Branches and Agencies December....... 669.4 852.7 236.4 1030.3 401.9 463.0 Throughout the World 1946 January.......... 603.4 759.2 236.4 984.0 363.8 434.8 February......... 547.2 656.3 236.4 940.3 369.5 460.7 March........... 525.9 631.0 236.4 940.1 340.4 445.2 April.......... 556.2 684.1 236.4 910.3 345.5 435.9 May............ 545.1 675.6 236.4 762.5 342.3 409.6 June........... 538.7 666.4 236.4 737.9 343.3 404.2 July.......... 552.7 704.3 236.4 598.9 341.3 364.6 August....... 477.9 590.0 236.4 384.7 320.9 346.3 September...... 477.9 591.3 236.4 378.7 314.5 347.2 October.......... 487.4 587.2 236.4 382.7 405.8 342.7 November........ 484.8 607.8 236.4 406.4 346.5 305.2 December........ 461.9 570.8 236.4 371.9 344.7 302.1 19471 January..........394.1 468.2 236.4 381.9 326.2 282.5 February......... 389.5 454.9 236.4 356.3 344.8 281.4 March........... 378.6 440.1 236.4 295.2 334.7 279.4 April............ 360.3 413.3 236.4 269.2 328.3 271.6 e _a;L, | May~ SMay.............. 354.2 404.4 236.4 250.9 325.4 269.4 June............ 358.6 414.4 236.4 236.8 316.6 268.6 July............ 364.1 426.8 236.4 217.7 309.3 269.9 1 Weekly average only 2 Weights,-^,r /~ T W htere discriminating (I Ok |II people shop.... will you find J \/ a flavor like thatof... Te Hs HEACOCK'S The House of Quality Bottled in the U. S. A. Fine American Whiskey * Preferred throughout the American 11.... II SOLE IMPORTERS SORIANO TRADING COMPANY AA M, R. S. BLDG.-TEL. 2-79-61-MANILA I 454-600 Dasmarinas Tel. 2-70-81 I

Aujgust:, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL_ 129 --- I TREND OF REAL WAGES OF LABORERS IN INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS IN MANILA, BY OCCUPATIONS: 1941-1945-1946-19471 Prepared by the Bureau of the Census and Statistics I I - -- --- I Average Daily (Pesos) Wages Index (1941-100) Daily Real Wages2 (Pesos) Occupation 1941 1945 1946 1947 1945 1946 1947 1945 Blacksmiths..................... Boilerm en..................... Carpenters...................... Chauffeurs...................... Cigar-makers................... Compositors................... D raftsm en..................... Electricians..................... Foremen........................ Lathemen....................... Linotypists...................... Machinists...................... M asons......................... Mechanics (auto)............... Painters........................ Plumbers...................... Tinsmiths................. AVERAGESkilled laborers.................. Common laborers................ 2.55 2.82 2.75 1.64 0.96 1.84 3.28 2.67 3.35 2.60 2.64 2.23 1.94 3.00 1.83 2.00 1.72 2.34 1.24 4.25 6.40 6.02 4.05 2.83 6.14 7.54 5.20 7.38 4.88 10.22 5.75 5.90 7.46 7.77 4.80 4.23 5.93 3.27 5.57 5.20 6.66 5.78 4.87 7.29 7.48 7.82 7.96 7.31 10.17 6.48 6.58 6.90 6.28 7.67 5.04 6.76 4.53 6.58 7.50 7.51 6.50 5.12 7.92 8.31 8.07 8.58 6.80 9.75 8.59 6.95 9.27 7.73 7.77 8.01 7.66 4.67 166.6 226.9 218.9 264.9 294.7 333.6 232.9 194.7 220.2 187.7 387.1 257.8 304.1 248.6 424.5 240.0 245.9 261.7 263.7 218.4 184.3 242.1 352.4 507.2 396.1 228.0 292.8 237.6 281.1 385.2 290.5 339.1 230.0 343.1 383.5 293.0 306.1 365.3 258.0 265.6 273.1 396.3 533.3 430.4 253 4 302.2 256.1 261.5 369.3 385.2 358.2 309.0 422.4 388.5 465.7 387.4 376.6 0.62 0.94 0.97 0.59 0.41 0.90 1.10 0.76 1.08 0.71 1.50 0.84 0.86 1.08 1.14 0.70 0.62 0.87 0.66 1946 1.07 1.00 1.28 1.11 0.93 1.40 1.44 1.50 1.53 1.40 1.95 1.24 1.26 1.32 1.21 1.47 0.97 1.30 0.87 1947 1.77 2.01 2.02 1.74 1.37 2.13 2.25 2.17 2.30 1.83 2.62 2.31 1.87 2.49 2.07 2.09 2.15 2.06 1.25 I _ _ I__ _ _I _ _ _ _ _I__ _ _ _ _I__ _ _ _ _ _ _ _ _ _I.1I I I I I I I Preliminary, subject to change as more data become available. 2 Wage in terms of goods and services it can buy. This is obtained by dividing the 1945, 1946, and 1947 wages by the cost of living index for the year 1945 (683.3), 1946 (520.9), and 1947 (372.6), respectively. Commonwealth Act No. 444 limits regular working hours to eight a day.... The index used for 1947 was the average for January to June, 1947. their wages but also of widespread unemployment. The President stated that strikes are creating a bad impression for the country abroad. The National Labor Union on June 26 assured the President through its counsel that it does not believe in strikes against the government. 11 i i I I i GETZ IBIROS., V CD., SAN FRANCISCO, U. S. A. IMPORTERS AND EXPORTERS GLASS PAPER CARBIDE LEATHER TEXTILES LIVESTOCK HARDWARE MACHINERY EXPLOSIVES FOODSTUFFS C HU C HE RI AS E L E CTRONI CS PHARMACEUTICALS DAIRY EQUIPMENT COPPER AND BRASS BUILDING MATERIALS PETROLEUM PRODUCTS INDUSTRIAL CHEMICALS CONFECTIONERY SUPPLIES IRON AND STEEL PRODUCTS I II IIONOlATI, SHANGIIAI IIONGKONG SINGAPORE I AI)RAS BRANCHES: CAPETOWN BATAVIA BANGKOK CA LC UTTA BOIMBAY JOHIANNESBURG DURBAN MiEXICO CITY IIMANILA S Glenmore Distilleries Co., Incorporated, Louisville. Kentucky Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2-79-61 AA I Agencies Throughout the World "1871-1947. TIIIS IS OUR 76THr YEAR." TIADE & COMM.ERCE BLDG. TEL. 2-97-33 m I - -

130 AMERICAN CHAMBER OF COMMERCE JOURNAL Aug~ust, 1947 -- LUZON STEVEDORING COMPANY, INC. MANILA I Diplomatic and Consular List From an Official Source THE DIPLOMATIC CORPS His EXCELLENCY EMMETT O'NEAL Ambassador Extraordinary and Plenipotentiary of the United States of America (absent) 4th of July 1946 THE HONORABLE NATHANIEL P. DAVIS Minister-Counselor and Charge d'Affaires ad interim His EXCELLENCY CHEN CHIH-PING Envoy Extraordinary and Minister Plenipotentiary of the Republic of China 3rd of October 1946 His EXCELLENCY LINTON HARRY FOULDS, C.B.E. His Britannic Majesty's Envoy Extraordinary and Minister Plenipotentiary 30th of October 1946 HIs EXCELLENCY TEODOMIRO AGUILAR Y SALAS Envoy Extraordinary and Minister Plenipotentiary of Spain 30th of January 1947 HIs EXCELLENCY GASTON WILLOQUET Envoy Extraordinary and Minister Plenipotentiary of the French Republic 7th of February 1947 THE HONORABLE VITTORIO STRIGARI Charge d'Affaires of the Italian Republic 5th of November 1946 Advertising in MERALCO BUSES Brings Good Results 90,000 PASSENGERS DAILY SURPRISINGLY LOW COST PER 10,000 CIRCULATION FOR RATES AND PARTICULARS CALL ADVERTISING MANAGER MANILA ELECTRIC CO. THE HONORABLE N. A. J. DE VOOGD Her Majesty's Charge d'Affalres for the Netherlands 20th of May 1947 THE CONSULAR CORPS HERBERT A. PETERSON His Majesty's Consul-General for the Commonwealth of Australia Exequatur dated the 1st of November 1946 N. A. J. DE VOOGD Her Majesty's Consul-General for the Netherlands Exequatur dated the 7th of January 1947 R. GUILLAUME His Majesty's Consul-General for Belgium (with residence in Hongkong) Exequatur dated the 14th of April 1947 ERNEST E. EVANS Consul of the United States of America Exequatur dated the 7th of June 1947 Tsu TSENG T. SHEN Consul-General of the Republic of China Provisionally recognized the 16th of December 1946 EUGENE A. PERKINS His Siamese Majesty's Consul-General, a.h. Exequatur dated the 11th of December 1946 E. M. GRIMM Consul-General of Panama, a.h. Exequatur dated the 25th of March 1947 134 San Marcelino Tel - 8-75-31

August, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 131 OSCAR A. SCHNEIDER Consul of Switzerland Exequatur dated the 28th of August 1946 CARLOS GELANO Consul of Nicaragua Exequatur dated the 14th of December 1946 NIELS NYBORG Consul of Denmark Exequatur dated the 8th of January 1947 KARL GUSTAF ARNO Consul of Sweden Exequatur dated the 5th of April 1947 SVEN HURUM Consul of Norway Provisionally recognized the 22nd of July 1946 MIGUEL TEUS Y LOPEZ Acting Consul-General of Spain Provisionally recognized the 6th of February 1947 WALTER CROWHURST HACON Acting British Consul Provisionally recognized the 17th of April 1947 CARLOS MA. DA Luz NUNES Vice-Consul of Portugal Certificate of Recognition dated the 6th of February 1947 GUY G. ARNAULT Acting Vice-Consul of the French Republic Provisionally recognized the 17th of December 1946 JOSE GARCIA ALONSO Consul of Guatemala, a.h. Exequatur dated the 19th of December 1946 SAID TAKIEDDINE Consul of the Lebanese Republic, a.h. Exequatur dated the 18th of February 1947 I SILVER and JAVA PACIFIC LINES SILVER LINE LTD. London E. C. 2 KERR STEAMSHIP CO., INC. General Agents 17 Battery JAVA PACIFIC LINE N. V. S.M. "Nederland" N. V. Rotterdamsche Lloyd. Amsterdam -Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway PHILIPPINES To and From VANCOUVER SEATTLE PORTLAND SAN FRANCISCO AND LOS ANGELES ALSO SERVING PHILIPPINES INDIA SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FROM U. S. ATLANTIC COAST PORTS TO MANILA, PHILIPPINES TO HALIFAX AND U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 t_______________~________,_._. i RAFAEL PEREZ ROSALES Consul of El Salvador, a.h. Provisionally recognized the 18th of March FEDERICO PEREZ Y PEREZ Consul of Ecuador, a.h. Provisionally recognized the 31st of March 1947 1947 ANDRES SORIANO Consular Agent of Cuba, a.h. Provisionally recognized the 17th of March 1947 O. E. S. & S. Co., Inc. Sales - 673 Dasmariias - Service Warren - Knight: Transits and Levels American Paulin System: Surveying Aneroids- Barometers CHICAGO STEEL TAPES LEVELING RODS STADIA RODS BRUNTON POCKET PRECISIN TRANSITS PRECISION TRANSIT I Important to Investors: I( "U. S. Financiers and Capitalists seeking data on P.I. matters... Facts form investment basis." RUSH, INVESTORS!... HOMESEEKERS! P6.00 and up per sq. m.. We still have homesites for sale in University, Espafia, Quezon City, Camp Murphy-and New Manila. Lots: 300 to 5,000 sq. m. 20% down-the rest payable in monthly installments. 1 MAGDALENA ESTATE, INC. 211 Consolidated Investments Bldg., P. Goiti, Manila # 2-CF

1-32 AMERICAN CHAMBER OF COMMERCE JOURNAL, August. 1947 co.....................,................. _.. 132 AMERiCAN CHAMBER OF COMMERCE JOURNAL August. 1Q47 I *TRUCKS * PICKUPS * TRAILERS * HEAVY LIFTS Available' Daily Telephone [phone] "LET YOUR HAIR DOWN" ---, _-_ --- Column THE July issue of the Journal, the first to mark a general change in policy, contents, and format, was very well received, as we had believed it would be. With the cooperation we were able to enlist, we thought that it would indeed be practically impossible to make it any better as to basic plan, although, of course, it may be improved in execution and detail, and we are determined to do all we can in that respect. Members of the Chamber and readers of the Journal were generous in their expressions of appreciation of the cooperative effort we are putting forth, and a few of them took the trouble to send in letters about this. One from Mr. E. A. Perkins read in part: "I have just been reading your July, 1947, issue and, before laying it aside for future reference, I wish to express my congratulations to the editorial staff and management on the great improvement observed in it. The 'shot-in-the-arm', or whatever it may have been, was well worth while. The articles are informative and timely. The editorials are excellent and leave nothing to be desired. If I were to criticize at all, it would be the rather poor graphs appearing on pages 66, 67, and 71. They are hard to read. But, all in all, you have earned the gratitude and deserve the good wishes of all members of the Chamber and readers of the Journal..." Another letter from Mr. H. J. Belden, of the Atlantic, Gulf, and Pacific Company of Manila, addressed to the editor, read in part: "I take the liberty of saying to you, as I did to Mr. Stevens, that the July issue of the Journal impressed me very much. I like particularly the arrangement which seems to be well set up to follow the trend and progress of the important fields of business here for the information and benefit of business men in general,-which is an important service of the Chamber. I wish your administration of the Journal success." We are sorry about the graphs, but by the time we knew that they had not been re-drawn, as they should have been, it was too late to do the work over. The graph in this issue is still not what it should be, and we shall do our best to improve the graphs in future issues. Since so many people are called upon to cooperate in getting together the contents of the Journal each month, there was still some delay in the receipt of copy from some of them, although the greater part of the material came in promptly. While we have been able to add a number of additional columns to "The Business View" pages, which constitute the heart of the Journal, there are still a number of columns which we should have and have not been able to get as yet. We have added the columns on the Office of the President, on Credit, and on Air Transportation, but projected columns on Automotives and on Tobacco are still missing. We hope to have them in the next issue. Some of the new column editors had insufficient time to prepare material as comprehensive as they wanted it, but promise more complete coverage in future issues. We trust that Journal readers will realize that it takes time to organize such an editorial enterprise as this and to get it to running smoothly. The editor himself is very well satisfied with what has so far been done and is very grateful to the men who are helping to make the present Journal possible. Only a few readers took advantage of our invitation to "let their hair down" in this column. One of them 'h P Mr. Barrett Mr. Schedler -- — PHILIPPINE - BANK OF COMMUNICATIONS MANILA, PHILIPPINES Every description of banking and exchange business transacted. Correspondents throughout China and in the principal cities of the world. Cable Address: "KAOTONBANK" i LUZON BROKERAGE COMPANY I

August, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 133 addressed the editor as follows on the matter of insurance claims: "We desire to call your attention to the deplorable conditions now existing in the City of Manila in reference to insurance claims on goods lost on board steamers or at the piers. We could readily understand the difficulties of getting the information and running down the necessary data a year or a year-and-a-half ago, but we have claims still pending that are over a year old. We can't trace any particular spot that constitutes a bottleneck, for the steamship, the Manila Terminal, and the insurance companies all seem to be very reluctant to complete our claims. "First we have to demand settlement from the steamship company; then we have to take the matter up with the Manila Terminal Company; and possibly we have to get a marine survey of the goods. In connection with all of these demands, it takes months to get the proper papers together, and then the insurance companies take their own good time in paying. "We believe that it would be of vital interest to the merchants of the Philippines to know just why there is so much delay and what plans the insurance companies, the Manila Terminal, and the steamship companies are considering so that these delays will become a thing of the past." We turned the original of this letter over to Mr. Henderson, who edits the Insurance column of the Journal, but we have not as yet had a reply from him. Perhaps he is saving his answer for the September issue. Mr. Henderson is thus the first to have drawn fire, although Mr. Eduardo Taylor, general manager of the Cebu Portland Cement Company, was the more ready to accept an invitation to write his article for this issue of the Journal because Mr. Keys, in his contribution to last month's Construction column, had perhaps inadvertently included cement as among a number of building materials which he said were still hard to get. Mr. Taylor was on the point of writing a letter about this when the editor called on him to ask for the article. Mr. Taylor was among the many men who have told us that they took the July Journal home with them to read at their leisure. There was another letter, addressed to the editor himself, which read as follows: "Sir: I note that Mr. Von Kauffmann in his 'Lumber' column in your wonderful initial [July] issue expressed the wish for 'more reasonable' freight-rates, while Mr. Danks, in his 'Inter-Island Shipping' column, stated that 'non-compensatory' rates at the out-ports should be 'increased'. " Of course, that's the sort of stuff a reader gets when an editor not only permits but invites all sorts of interested parties to edit his paper for him. "Now if I were writing a column, I would demand lower freight-rates and lower lumber prices, but I wasn't asked! "How's that for 'letting my hair down', you bald-headed so-and-so? "Very truly yours, (Sgd) "An Admirer" The thought had crossed the editor's mind that somebody might write him, a letter like that, but he didn't think that we had a reader sufficiently unintelligent. As a matter of fact, it looks like a little leg-pulling. 4 Of course, the writers of the various columns of "The Business View" are all "interested parties". That is why they were invited to write them. And if it weren't for that kind of men and such "interest", there probably wouldn't be any ships or any lumber. In this still so imperfectly organized world, there has to be something for the entrepreneur,-in other words, profit. The world is not ready to do away with that kind of interest. And any intelligent reader will see that the various business interests represented in the Journal columns tend to balance each other in his mind, just as these interests are balanced in the real world. Is an editor to judge between them? In these writings in the Journal, the reader will see very clearly a reflection of the operation of the economic laws which underlie all business activity, and he will also be impressed with the futility of trying to render them inoperative. "Interests" are forever clashing, adjusting, and clashing again; any equilibrium momentarily reached is never stable, especially in a dynamic and progressive society. Nothing can be kept up or kept down or stays put for very long. Such is life, thank God! And shall we ask who "Admirer" is and what his interests are? Can he or anyone claim complete disinterest? He rrmust engage in some form of activity by which he lives. Then he has interests, just like the lumber man and the ship-owner. No doubt he would like to get more for his goods or services, whatever they may be, and pay less for the goods and services he needs. And wouldn't we all! EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines FERN LINE To and From North Atlantic Ports Gulf Ports Philippines EVERETT ORIENT LINE Serving the Orient EVERETT LINES Serving the Philippine Islands 223 Dasmarifias St., Manila Tel. Overseas 2-87-82 2-87-92 Tel. Interisland 2-63-82 Tel. Executive 2-97-38 I THE BOARD OF UNDERWRITERS OF NEW YORK Represented by E. E. ELSER, INCORP. 404 Ayala Bldg., Manila, P. I. I I

134 - -1 -1 -1 L AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1947 Of course...they're B. F. Goodrich Silvertowns I i1 1 Taxability of Sales of Articles to Foreign Consuls and to the United States Army and Navy HE Bureau of Internal Revenue, under date of June 24, advised a member of the American Chamber of Commerce of the Philippines as follows with reference to the taxability of sales of articles to foreign consuls and to the United States Army and Navy: "This is to acknowledge receipt of your letter dated June 20, 1947, and to inform you that the question relative to the taxability of sales of articles to foreign consuls is still under advisement. As soon as the case is finally decided, you will be advised of the decision. "With respect to your sales of articles to the United States Army and Navy, please be advised that under the terms of the Bases Agreement concluded between the United States Government and the Republic of the Philippines, no internal revenue tax shall be collected on material, equipment, supplies or goods, including food stores and clothing, for exclusive use in the construction, maintenance, operation or defense of the bases consigned to or destined for the United States Army or Navy and certified by the authorities thereof to be for such purposes. "However, in order that tax exemption may be granted by this Office, a certificate signed by a responsible official of the United States Army or Navy should be submitted to this Office for verification. Such certificate must specify the number, kind, and description of the articles to be purchased and certifying that the same will be used exclusively in connection with the authorized activities of the United States Army or Navy. Only after such verification may this Office authorize the vendor to deliver the articles listed therein to the United States Army or Navy without adding to the cost thereof the tax ordinarily imposed on said articles. "However, in isolated cases of emergency where it is deemed necessary to secure certain materials immediately needed by the United States Army or Navy or any agency exempt from tax, such materials may be purchased without securing a certificate of tax exemption. In such cases, the invoice to be issued by the vendor should show the number, kind, and description of the articles to be purchased. In these instances, corresponding claims for refund of internal revenue taxes paid may be filed with the Bureau of Internal Revenue within two (2) years from the date of payment. "Very respectfully, "BIBIANO L. MEER "Collector of Internal Revenue "By: (Sgd.) ALFREDO V. JACINTO "Depu ty Collector of In ternal Reven ue" Many driving tests on police cars, taxi fleets, special test cars, and everyday driving for nearly two years prove that these B. F. Goodrich tires outwear... outrun... and outlast tires of prewar construction. They're built with a unique, wider, flatter tread over a 35% sturdier cord body. If you're looking for better mileage, more traction and greater safety... see us today for the tire that outwears prewar tires. r rlt) 1111) GOODRICH INTERNATIONAL RUBBER CO. 13th & ATLANTA STS., PORT AREA, MANILA, P. I. SUBS4 I -- CRIBE TO THE JOURNAL 0 __ Y

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SEP 7 1948 THE AMERIC COMMERCE Published monthly in Manila by the American Chamber of Commerce of the Philippines Fifth Floor, Insular Life Building-Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; John L. Manning, Vice-President; Fay C. Bailey, Treasurer; E. G. Baumgardner, Max Blouse, John F. Cotton, Samuel Garmezy, G. C. Miller, and J. A. Parrish. Leon Rosenthal, Executive Vice-President; I T. Salmo, Seoretary. Vol. XXIII September, 1947 No. 5, i i i,~~~~~~~~~~ — Contents EditorialsTrade Mission to Japan................................................. Water, Water......................................................... Russia and the World................................................... The Beyster Report..................................................... Membership in the American Chamber of Commerce........................ The Metropolitan Water District in Crisis..................................... Surplus Property and Rehabilitation.......................................... On the Proposed Central Bank............................................... The Business View Office of the President................................................................. Government Collections (Table)....................................................... Banking and Finance................................................................. Credit................................................................. Stock Market......................................................................... Insurance........................................................................... Electric Power Consumption........................................................... City Planning................................................................ Real Estate.......................................................................... Construction......................................................................... Port of Manila........................................................................ Ocean Shipping....................................................................... Inter-Island Shipping.................................................................. Air Transportation.................................................................. G old................................................................................. Lumber............................................................................. Copra and Coconut Oil................................................................ Desiccated Coconut................................................................... M anila Hemp.............................................................. Sugar............................................................................. Tobacco......................................................................... Autom obiles and Trucks.............................................................. Food Products...................................................................... Textiles..................................................................... Legislation and Court Decisions......................................................... Philippine Government Corporations.................................................... L ab or............................................................................... C ost of Living Index.................................................................. Other Chambers of Commerce Chamber of Commerce of the Philippines............................................ Manila Chamber of Commerce...................................................... Philippine Chinese General Chamber of Commerce.................................... Spanish Chamber of Commerce of the Philippines.................................... The "Let Your Hair Down" Column......................................... 50 centavos the copy.... *. *............o...o........ ~ **.**** *... o o.o.o.**...... * **....................... o....... o...... MANUEL MANOSA........... F. SEGADO................. MIGUEL CUADERNO Sr........ Official Source.................... Official Source.................... C. V. GRANT..................... D. BURN........................ A. C. HALL....................... A. H. HENDERSON................ J. F. COTTON.......... L. P. CROFT...................... C. M. HOSKINS................... H. H. K EYS....................... H. W. TITUS.................... F. M. GISPERT................... D. M. CAMERON.................. V. A. BRUSSOLO.................. C. A. MITKE......... E. C. VON KAUFFMANN..... M. IGUAL AND K. B. DAY....... H.R. HICK.................... M. COOK........................ C. C. GORDON.................. CONDE DE CHURRUCA............. J. L. MANNING.................... C. G. HERDMAN................. J. TRAYNOR..................... R. JANDA......................... Official Source.................... Official Source................... Bureau of the Census and Statistics.. P. J. OCAMPO................... S. CRAWFURD.................... YANG SEPENG................... J. M. ROSALES................................. ~...........~. 139 139 141 141 141 142 145 -146 148 149 150 150 150 151 152 152 152 153 153 154 154 155 155 156 156 158 158 159 160 160 161 162 162 163 163 164 164 166 167 168 172

138 AMERICAN CHAMBER OF -COMMERCE JOURNAL September, 1947 YoU adtOt aSy first - I _,I Here's one reason why Goodyear is the best tire you can buy. Unseen, but contributing mightily to the long life it gives you, is a pre-tested network of cords that makes up the body of this tougher tire. Why is pre-testing important? You may not know it, but tire cord can be as variable as the weather. Heat, cold, dampness, and dryness can all affect the strength of tire cord. To get into a Goodyear tire, cord must demonstrate adequate strength under any and all conditions to which that tire may reasonably be subjected. To protect your Pesos-and perhaps your life-Goodyear has the intricate 'wo versions of the world's finest tire... machine shown above. L)o,,Yv pii T'ron, It pulls cord in temperatures ranging from 20~ below to 400~ above zero. It stretches and strains cord that's sopping wet; and the same cord bone dry. Unless the cord can withstand the Goodyear breaking test 'under all these conditions, it isn't good enough for you, or for Goodyear. Perhaps that helps to explain why Goodyear holds its place as the world's first - choice tire for the 32nd consecutive year —why store people, the world over, ride on Goodyear Tires than on any other make. De Luxe All-Weather Tread First-every year for 32 years More people, the world over, ride on Goodyear Tires than on any other make. THE GOODYEAR TIRE & RUBBER CO., OF THE PHILIPPINES, LTD. Bacolod Manila Cebu

THE COMMERCE Editorials On August 4, by telephone, the American Chamber of Commerce of the Philippines received an invitation from the Department of Foreign The Trade Mission Affairs to nominate five of its memto Japan bers desirous of joining the trade mission to Japan authorized some time ago by SCAP. Although the Chamber was given only one day to sound out around a hundred memberfirms, seven names were submitted, the Chamber understanding that from among them one or more would be included in the group of six persons from the Philippines who would be given the necessary entry-permits into Japan. A week or so later, the newspapers published the names of the six persons who had been officially designated, and among them was not one of those nominated by the American Chamber. A telephone inquiry at the Department of Foreign Affairs elicited the information that the Chamber's list of nominees had been referred to the Cabinet, which had decided to restrict the membership of the mission to Filipinos. The nominees of the Chamber all represented large and well-financed import and export firms, some of which have been in business in the Philippines for more than forty years. Included were men who control warehouses which hold large stocks of excess merchandise which could have been used in the exchange and barter which the authorities in Japan favor for the present. On the other hand, of the six persons designated by the Government, all but two are virtually unknown in business. One represents an enterprise which applied for commercial registration only after his designation to membership in the mission. The Chamber therefore addressed a letter to President Manuel Roxas declaring that it found itself bound to protest against this act of exclusion, not only in the interest of its members, but in the interest of Philippine commerce generally. The letter stated that it was believed that the President would wish to have this matter brought to his personal attention. The Chamber simultaneously lodged a protest with the American Embassy, stating: "This Chamber submits that this is unfair discrimination, probably not in line with the intentions of SCAP and contrary to the best interest of Philippine commerce and trade. Mr. Emilio Abello, Chief of the Executive Office, answered the Chamber's letter of protest a few days later as follows: "The President wishes me to acknowledge the receipt of your letter dated August 18, 1947, in which you protest against the omission of the name submitted by the American Chamber of Commerce from the membership of the trade mission to Japan. Inasmuch as the traders' representatives already selected will be in Japan for only a short period of about twenty-one days, other groups will be sent later and representatives of American business houses would then be included." It is to be pointed out that the Chamber did not protest against "the omission of the names" it had submitted, but against the total exclusion of American business representation. The Chamber is of the opinion that Mr. Abello's letter leaves the question of the unfair and unwise discrimination in this matter, unresolved. The special article, "The Metropolitan Water District in Crisis", by Mr. Manuel Mafiosa, the present manager of the District, is the frankest and most courageWater, ous exposition of the real and indeed alarming Water state of Manila's water-system today, the system which in the past has been so highly touted. The simple fact is that the annual consumption-demand exceeds the supply, in spite of large expenditures some years ago on a system that was supposed to be able to meet all contingencies until the year 1980. If it were only possible to re-connect the old and carelessly discarded Montalban system to augment the supply which now comes exclusively from the Angat River! But in part because of wrong estimates, erroneous predictions, and a general misunderstanding of the real situation, the three-kilometer length of 30-inch iron pipe, which was the most important part of the Montalban-Manila connection, was sold in 1940 for a paltry P26,000 and taken out. To replace the pipe-line today would cost P300,000 for the pipe alone, and it would take eight months of labor to put it in after the pipe got here, if it is obtainable at all. It seems that Manila will have to look forward to some very dry dry-seasons for some time to come, and discomfort will be but a small part of the price we will have to pay for what is definitely to be attributed to incompetent political direction of an all-important and highly technical public-utility service which can rightly be managed only by trained engineers. 139

1 n AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1947 I T - II TO OUR URLELl D S Both OLD and 1wEW OUR EXCLUSIVE LINES, EACH REPRESENTING THE BEST, APPLICABLE TO THE REHABILITATION OF MINING, SUGAR, LUMBER, AND OTHER INDUSTRIES ARE AS FOLLOWS: AMERICAN HOIST & DERRICK CO. Genuine Crosby Wire Rope Clips. AMERICAN LOCOMOTIVE CO. Locomotives AMES BALDWIN WYOMING CO. RED EDGE Shovels, square and round points, round and D-handles. ARMSTRONG-BLUM MANUFACTURING CO. Marvel Hacksaw machines, popular sizes; hacksaw machine blades. BACHARACH INDUSTRIAL INSTRUMENT CO. Indicating, Recording & Control Instruments for Pressure, Temperature and Gas Analysis. BARBOUR STOCKWELL CO. Champion Power Hammers. BARNHART COMPANY Band Wheel Grinders BEARING ENGINEERING CO. All types of Bearings. BEEBE BROTHERS Portable hoists, hand-operated; 2. 5- 10- and 15-ton sizes. BLACK & DECKER MFG. CO. Portable Electric Tools BRODERICK & BASCOM ROPE CO. "Yellow Strand", "Plow Steel" & "Flexset Preformed" Wire Rope. CALIFORNIA WIRE CLOTH CORP. Woven Metal Screens. CANEDY-OTTO MANUFACTURING CO. Precision Drills, Radial, Sensitive, Upright and High Speed. CARRIER CORPORATION Air Conditioning (portable units and large central systems), Refrigeration and Ice-making Equipment. CHICAGO BELTING CO. Leather Belting, Leather for all industrial purposes. CINCINNATI-BICKFORD TOOL CO. Radial and Upright Drills, power-driven.. CINCINNATI MILLING & GRINDING MACHINES, INC. Milling Machines, 'Grinders, and accessories. CINCINNATI PLANER CO. Planers, Boring Mills, Planer Type Millers. COLORADO IRON WORKS Akins Classifiers. CORNING GLASS WORKS Pyrex and Corning Gange Glasses. COOKTITE RING SALES CO. Cooktite and Cook's Piston Rings. CRANE COMPANY Valves, Fittings, Pipes. CUSHMAN CHUCK COMPANY Light and Heavy Duty Chucks, combination chucks, collet chucks and collets. DEARBORN CHEMICAL COMPANY Boiler Compounds, Water Treating Processes, Water Analysis. DETROIT BELT LACER CO. Belt Lacing Machines; Belt Mooks. EAGLE & GLOBE STEEL CO., LTD. Ultra Capital and PLUS TWO Lathe Bits. EVERLASTING VALVE CO. Boiler Blow-off Valves. J. A. FAY & EGAN CO. Sawmill and Woodworking Equipment; accessories and parts. FILTER MEDIA CORPORATION Filter Cloth, Filter Press Plates and Frames. FOXBORO COMPANY Indicating and Recording Precision Instruments. GARLOCK PACKING CO. Industrial Packing, all specifications and sizes. GIDDINGS & LEWIS MACHINE TOOL CO. Horizontal Boring, Drilling, and Milling Machines. GORDON HOLLOW BLAST GRATE CO. Tower Edgers and Trimmers. GOULD & EBERHARDT, INC. Gear Cutting Machines and Shapers. HANCHETT MANUFACTURING CO. Sawmill Filing Room Equipment. HENRY DISSTON & SONS, INC. Saws for all applications; Tool Bits, Knives. HONAN-CRANE CORPORATION Lubricating Oil Filters and Purifiers. HYDRAULIC PRESS MANUFACTURING COMPANY Plastic Moulding Presses, Tile Presses, and other hydraulic machinery. JOHNS-MANVILLE INTERNATIONAL CORP. Asbestos brake lining and Magnesia Cement and Boiler Insulation. KAUKAUNA MACHINE CORPORATION Portable Drilling and Tapping Machines. KINGWELL BROS. LTD. Bronze Bushings and Bars-Oilite Bushings. LINDE AIR PRODUCTS CO. "Purox" Welding and Cutting apparatus, Acetylene Generators, Welding Rods. LODGE\& SHIPLEY MACHINE TOOL CO. Engine Lathes, Selective Head Lathes, Manufacturing Lathes. MANHEIM MFG. & BELTING CO. VEELOS Adjustable V-Belts. MANZEL BROTHERS CO. Force Feed Lubricators. MARWEDEL, C. W. General Hardware Materials. MINE & SMELTER SUPPLY CO. Marcy Mills, Wilfley Pumps and tables, Marsco Fahrenwald Flotation Machines. MURPHY DIESEL COMPANY High Speed Diesel Generating and Power Units. NATIONAL TWIST DRILL & TOOL CO. Twist Drills, high speed steel and carbon steel. NEBEL MACHINE TOOL CO. Extension bed gap lathes. NORDBERG MANUFACTURING CO. Cement Grinding Mills, Symons Cone Crusher, Rod Deck Screens, Diesel Engines 1000 H.P. and over. NORDSTROM VALVE DIVISION ROCKWELL MFG. CO. Nordstrom Lubricated Plug, Cocks. NORTHWEST ENGINEERING CO. Shovels, Cranes, Draglines, Trenching Machines, Skimmer Scoops, Dragine Buckets NORTON COMPANY Abrasives, grinding wheels. NULCO FABRICATORS Redwood Cooling Towers & Tanks. OLIVER UNITED FILTERS, INC. Filtering Plants for the Sugar and Mining Industries. OSTER MANUFACTURING,COMPANY Die Stocks, Pipe and Bolt Threading Machines. OWEN BUCKET CO. Dredging, Excavating, Rehandling Buckets, Rock Grapples. PACIFIC CAR & FOUNDRY CO. Rafting Dogs, logging cars. PENBERTHY INJECTOR COMPANY Automatic High Pressure Injectors and Ejectors. RANSOME MACHINERY CO. Concrete Mixers, Paving Mixers, Truck Mixers. RIDGE TOOL COMPANY Pipe Wrenches; Pipe Cutters and Bench Vises. SHARPLES CORPORATION Centrifuges for all industrial applications and experiments. SOUTH BEND LATHE WORKS Precisions Lathes and accessories. STEARNS MAGNETIC MANUFACTURING CO. Magnetic Handling of Materials. SUMNER IRON WORKS All types of lumber processing machinery. TORO MANUFACTURING CO. Mowers, Fairway Park Golf Club Equipment. UNIVERSAL ENGINEERING CO. Jaw Crushers, Portable Crushing Plants. WASHINGTON IRON WORKS Logging Machinery and Equipment. WICKSTEED & CO., LTD. Hydraulic Hacksawing Machines. WORTHINGTON PUMP & MACHINERY CORP. Diesel Engines, Pumps, Air Compressors, Water Meters, etc. YALE & TOWNE MFG. CO. Chain Hoists-spur and screw geared; Pul-lifts Platform Scales. i. THaI lDWEARD J. 1wE[LL CO. 1450 Arlesti, M1anila Tel. 2-70-15 I. _ r,- --

The Stalin regime today betrays the world, as, long before World War II, it betrayed the Russian people. Those in and outside of Russia who looked Russia upon Russian "communism" as the realization and the of an ideal politico-economic system, suffered World the keenest disillusionment. It turned out to be only another despotism, and inevitably so because it lacks the checks and balances which preserve human liberties under the Western democratic systems. Nevertheless, the comradeship-in-arms between the Western democracies and Russia in the last war, led many to hope once again that the differences between them were not irreconcilable and that Russia in time might be won over to a pursuit of democracy, with or without a return to what is called the "private ownership of the means of production".* International developments since the war show clearly that the so-called capitalistic democracies were and are eager to move forward in world rehabilitation in cooperation with Russia as one of the leading members of the United Nations. But these same developments, tragically show with equal clearness that Russia under Stalin employs its position as a member only to increase disunion; that it will not cooperate, and, instead, is determined to obstruct every effort to bring the world back to an early peace. The question is, Why? The answer can not be anything else than that Russia, under Stalin, does not want order and prosperity reestablished in the non-Russian world; that it purposely foments disorder, misery, distrust, and hatred on an international scale as an active political policy. The despots in control of Russia are obviously set upon bringing about, if they can, the failure of every politico-economic effort outside their own sphere. And the reason for that can only be that they are apprehensive of the development of free and strong and happy peoples anywhere. They fear to match their system on equal terms with the systems of the Western democracies. As long as the Russian leaders remain of that mind, they will continue to resort to every means available to them to prevent and delay the reestablishment of world order and prosperity. Nothing can be expected of them than continued opposition and obstruction. As a consequence, the only course open to the other nations, great and small, is to go ahead, as well as they can without Russia. This is most unfortunate for both the Russian people and all other peoples, but there can be no cooperation with a non-cooperating entity. Cooperation is impossible without reciprocation. Russia is itself responsible for the isolation into which the subversive policy of its leaders is bringing that nation. *That alone need not divide nations or constitute a possible source of war. Whatever politico-economic system a people may consider it wise to adopt for themselves, may be considered their own business so long as they do not turn to slave-breeding for the implementation of schemes of aggression and conquest. Socialism in England has not alienated "capitalistic" America from the Briti h. If the Russian leaders were honest idealists, there would have been a pronounced rapprochement between Rus ia and Britain, which is not the case. Mere ideological differences are not worth fighting for; but the maintenance of national independence and the preservation of the individual rights and liberties of citizens developed under democracy, are worth fighting for, have been fought for, and would be fought for again if necessary. To ostracize Russia, in so far as that is possible in international affairs, could not of itself result in war. It would be the world's prayer that it would avert such an unimaginable catastrophe. On the contrary, it is the policy of the Russian leaders of systematically inciting and abetting mistrust, dissention, and hostility which would logically lead to war. There remains the hope that the Russian leaders will be brought to their senses. If they are forced to the conclusion that their policy of world sabotage is not succeeding, that they are only increasing the world's distrust and fear of them, then they may, before it is too late, embrace the wiser policy of international cooperation of which the world stands in such great need. Meanwhile, these baleful satraps of discord should not be given the benefit of the doubt, if, indeed, the least doubt can still exist. They must be made to understand how honest men of every shade of political and economic opinion regard them,-as the unconscionable and criminal wreckers which, by every possible test, they are. The Beyster Report, a brief advance summary of which was contained in the August number of this Journal (under the heading, "Philippine GovernThe Beyster ment Corporations"), was officially released Report too late for a competent review of it to be included in this issue. We hope to publish such a review in the October Journal. Though generally referred to as the Beyster Report, the publication is entitled: "Prolicsed Program for Industrial Rehabilitation and Development, Prepared by the technical staff of the National Development Company under the supervision of the H. E. Beyster Corporation, Consulting Engineers, Detroit, Michigan". The Report is dated, June 24, 1947. There have been a number of requests received recently for information as to whether non-American business houses or nationals can become memMembership in bers of the American Chamthe American ber of Commerce of the Chamber of Commerce Philippines. As the American Chamber of Commerce here, only American firms or American nationals can be active members, and only American nationals can be associate members of the organization. However, an American firm may be represented in the Chamber by a non-American general manager, as in the case of the International Business Machines Corporation, of which Mr. R. V. del Rosario is the general manager. Furthermore, a non-American firm may obtain certain indirect representation in the Chamber through some American on its executive staff who may personally become either an active or associate member, as in the case of Mr. Charles G. Herdman, of the Marsman Trading Corporation, who is an active member. "in so far as I am concerned, the Philippines has first priority." President Truman As quoted by Frank A. Waring Chairman, War Damage Commission 141

The Metropolitan Water District in Crisis By Manuel Mainosa Manager, Metropolitan Water District CT 2832 of the Philippine National Assembly created the Metropolitan Water District in 1919, and, since that year, with the exception of a lapse of time during the Japanese occupation, this organization has continued to operate as a public corporation, under a District Board. It must be stated, however, that the city water development began in 1875 with the organization of the Carriedo Waterworks System during the Spanish regime. The Mariquina River at Santolan was used as the source of supply. This system, named after Francisco Carriedo y Peredo, was operated at first by a Departamen to de Aguas Potables of the Ayuntamiento de Manila under the direction of a Superintendente. When Civil Government was established, after the American occupation, the system was turned into the "Division of Waterworks and Sewerage" under the Department of Engineering and Public Works, City of Manila. But even during the early part of the American occupation, a water-shortage plagued Manila largely because of ~..;, ' '. '' i::-~'^ '~ ~ ".~~ ~"-"~ i (\..,,, a s '. j T "" f * ' A v -,.. A,< ~,.:4 '/^Xa X^, A,, - A XX Ei - r, 's, ", Z~iZ.' O S O"V' Su,-.., A ' \ ' v [,.,~: ~.;. ' -; Ivp,41~q,/l '; G' ' "- 'A ~;, { < '~ I- if; i, 4. the influx of people from the provinces seeking security and attracted by the City's prosperity. The best that could be done then was to double the pumping-capacity of the "Carriedo" system, a work which was completed by the Military Engineers in scarcely four months' time. In 1902 the Montalban system was conceived. The project was referred to a consulting engineer, Desmond Fitzgerald, and upon official approval in 1906 of the plans arrived at, the construction work was begun. In 1909, the system was inaugurated, but three years afterward, in 1912, there was again an acute shortage. The press criticised the administration severely, attributing the shortage to the policy adopted of closing all private surface-wells and cisterns. H. S. Schicks, an assistant engineer in the Division of Waterworks and Sewerage, disposed of this criticism in a report which brought out the fact that consumption had increased from 9 million gallon a day in 1908 to 13 million in 1912, and predicted that in less than ten years the consumption would probably reach 20 million. The Division continued to operate, using both the Montalban and the Carriedo Water Systems, without much effort to supplement the supply as advocated by Mr. Schicks. However, there were private persons and concerns which engaged in the business of supplying water to the public from other sources,-one of the easiest and most lucrative business undertakings of that period. In 1918 it was decided to separate the administration of the water system from the Municipal Government of Manila, and Act No. 2832, mentioned at the beginning of this article, was approved on March 6, 1919. The Division of Waterworks and Sewerage with its small office in the City Hall was converted into an independent government corporation with offices in a large building on Rizal Avenue. With high hopes and great enthusiasm, the officials who were called to serve the Metropolitan Water District set out to solve once and for all the important problem of supplying potable water to the residents of Manila and nine surrounding municipalities, in accordance with the new Charter But in spite of their good intentions, five years elapsed before a definite program of improvement was drawn up. About the middle of 1922 preliminary reports were presented for the consideration of the Board of Directors, and two years afterward the District was launched on a definite program of activities. Credit is due to George Stroebe, hydraulic engineer in the Bureau of Public Works, for recommending the construction of the Novaliches impounding-reservoir to supplement the then sources of supply in the shortest possible time. His plan was to convert this reservoir into a sedimentation- or settling-basin for the deposition of the silt in the turbid waters of the Angat River. His recommendations were carried out and the results proved that his ideas were sound. In 1917 the then Chief of the Division of Waterworks and Sewerage made certain predictions as to the probable future increase of the population of the City and of the daily water consumption. He submitted these estimates to higher authorities to show the urgency of the need to develop additional sources of supply. Graph I shows the predictions compared with presently available data and estimates by the writer. The 1917 predictions, made prior to the creation of the Metropolitan Water District, were unfortunately taken Manila and its environs, showing the sources of the city water-supply 142

by subsequent administrations as accurate forecasts, and this explains the appearance of the following statement in the official pamphlet published in 1935 in connection with the inauguration of the Balara Filters: "ANGAT-NOVALICHES PROJECT:-This project has been designed to ultimately furnish Manila with 80 million gallons of water per day, which should be sufficientkto meet the requirements for the next eighty years..." In a souvenir program of the inauguration ceremonies of the Ipo Dam, in 1940, a similar statement was made: "The completion of the Angat-Novaliches System assures an ample water-supply for Manila and its environs for at least sixty years and justifies the abandonment of the obsolete Montalban system as a source of supply." The population of Manila in 1939, according to the Bureau of the Census, was 623,492. The combined population of other municipalities within the Metropolitan Area was 285,306; the total population was, therefore, 908,798.* It will be noted that this figure is more than twice that of 432,273, which was the prediction in 1917. - The water-shortage experienced during the last dry season is convincing proof of the falsity of the official statements based on the 1917 underestimates. The daily draft from the Novaliches Reservoir reached the almost unbelievable volume of 86,500,000 gallons a day, which is almost, A, double the volume-demand predicted in 1917. It exceeded in fact the combined capacities of the systems now in use, and compelled the throttling of the main valves of the distribution network. Then, of course, came the complaints of either "no water" or "low pres- sure". of 80-million-gallon capacity a day and 13 cut-and-cover aqueducts, which carry only 40 million gallons, to interconnect the tunnels, then the picture is quite different. Taking into consideration that the present consumption has reached a draft of 86 million gallons a day from the Novaliches Reservoir, it is ridiculous to say that this system will remain adequate for 60 or 80 more years to come. And what possible construction work, or combination of expedients could be devised to improve these varioussized bottlenecks of flow to provide for at least the present demand during the dry season? If the aqueducts are enlarged, say to 100-million-gallon capacity, the tunnels will become the bottlenecks. If the construction of an entirely new line is begun, it will take years to complete it. The cost of building an aqueduct twice the capacity of a smaller one, is much less than double, in the same way that the price of a 1/2-inch pipe is 42 centavos a foot, and the cost of a 3/4-inch pipe is only 46 centavos, though it is two times larger in capacity. If both pipes are laid underGRAPH I / SlOWII6 AVERAOE DAILY CONSUMPTION l: / / ~T: /: / /I / 'fVAJCNE SrSf -w / / I ^ /4+'': I A/ ooooo / / /// i // I ' / I * / / I f A / l i (/ ) ' f \/ Tooccc / 0 / / Lmi o),tr, <ooof L / /( Instead therefore of having kept our water resources and reserves way ahead of the demand, as we should have done to meet the needs of future consumers, we find our water-bag very much depleted, containing not even enough to supply the bare necessities of life of the present population. When the problem of insuficient supply is analyzed from the construction viewpoint, it is seen to be very serious indeed not only because of the factor of finance, but of time. To avoid many words, I refer to Graph II which represents the sources of supply, important parts of the system such as the Balara Filters and the San Juan Reservoir, and the aqueducts (I refuse to call them all siphons) which interconnect these units. Inasmuch as the Angat River is one of the largest rivers in the Philippines, as one may see by just looking at a map, one might doubt even the possibility of a water shortage. But if it is noted that the aqueducts which have been laid consist of 14 tunnels I *Queson City and Fort McKinley not included. a MD OV 0.- f-0 VIZ 0 -J U - I Y tAR 143

ground, the difference is even less because the volume and cost of the necessary excavation remains practically the same. Can anyone help but question the wisdom of the decision to build this long 36-kilometer aqueduct in a series of elements of different diameters? A mere percentage over the original cost would have given us a system which it would not now cost over two million pesos to correct,- two million pesos which we do not have. And the correction will take a whole year's time. Another requirement, and a serious one because of the big outlay of money called for, is the necessary general overhauling of the whole distribution system. For many years, there has been an item in every annual budget of the District, of a lump-sum appropriation for the extension of water-mains on condition that a return of 10% must be assured before the work is undertaken. The effect of this policy of extending mains at random without reference to a master-plan, has been most disastrous. Let me illustrate: At the extremities of, let me call it, the Carriedo network-system, which as everybody knows is not meeting the requirements of the modern fire-protection equipment now in use, there are 6-inch mains which the real-estate subdivisions springing up everywhere want to hook on to for development. Upon the construction of a few houses the owners naturally desire to have waterservice. The applications are filed and the inspections are made, after which the approximate cost of the water-main extension is computed, chargeable under the lump-sum item in the budget. If the classical method of extending water-mains is followed, it will be discovered that too large a budget outlay would be required to cover the cost of extending the 6-inch main, because computation of the probable income shows that the investment could not render the required 10% return. If a 4-inch main costs too much to insure the desired income, the size of the proposed main is reduced to 3 inches, 2-1/2 inches, 2 inches, and to even smaller sizes, until the cost of the main is found on computation to be only ten times more than the probable annual return. In this way the distribution system of the District has expanded, and some of these diminutive socalled "mains" now lie under well-paved streets! The City continues expanding and its inhabitants are piling up improvements on their lots. Where once there stood one small house, there are now three or four accesorias (flats); and where there stood a one-story residence there is now a two- or three-story office building. The demand for water has jumped to five, ten, and even fifteen times the volume required when the water main was first laid. The effect of these deficiencies are notorious and may be compared to what would happen to a man with the blood-circulatory system of a child. Past administrations claimed that the situation involved only a simple problem of water distribution and requested P4,000,000 to take care of it. And now a good excuse for still doing nothing has been found: "Let us wait until the replanning of the City is finished." Are we not losing vital time? In 1933 the.capacity of the filtration plant was 40 million gallons, and this was enough to cope with the consumption at that time, about 30 million gallons a day. In 1935 the new filters were at last completed, but in 1938, three years later, when the consumption had reached 37 million gallons, two more filter-beds had to be added, bringing the total plant capacity to 50 million gallons. This year, 1947, the size of the plant remains the same as ten years ago, 50 million gallons, but the daily consumption has risen to over 80 million gallons. The filter-beds have had to be operated over-loaded, but even so the most that can be done is to filter a volume of 70 million gallons; the rest of the volume demanded is by-passed raw and chlorinated heavily to make up for the insufficient filtering. Today we need a filtration plant twice the size of the one we are operating. This is not all. While riding high on the peak of the capacity-consumption differential, which unfortunately passed unnoticed, it was decided to try something new. Concrete aqueducts were used with success here and abroad to bring down water from the sources of supply to reservoirs and filtration plants, and from there to the distributing reservoirs. Why not use concrete in the distribution system also? Instead of the wrought-iron pipes which are so very expensive! So the main for the upper stretch of the distribution network, supplying about 80% of the consumers in the richest and most congested part of Manila, running from the reservoir at San Juan to the Rotonda, about two kilometers, was built of reinforced concrete. This concrete main-artery, because of the shock of our heavy traffic, earth-tremors, etc., is now full of cracks throughout its whole length. Recently, before the work of paving Santa Mesa Boulevard, was started, laborers of the District tried to stop three or four leaking jets which where softening the ground and ruining the roadbed. The work performed was a real engineering stunt, involving drainage, lead-wool caulking, patching, and finally a reinforced concrete collar. The,cost of the repair was considerable, running to from five to ten times the amount which would have been required had the main been one of wrought-iron. The U. S. Military Engineers who worked with us after the liberation of Manila were surprised at our "courage" in our having undertaken this experiment in concrete in the most delicate and vital portion of our (Continued on page 170) Profile of the Aqueduct from the Ipo Dam to Manila 144

Surplus Property And Rehabilitation By F. Segado* Vice-President, Manila Machinery and Supply Co., Inc. T {E Philippine Rehabilitation Act is an expression of the desire of the people of the United States to compensate the people of the Philippines for the loss and damage suffered by them during the years that the enemy occupied this country. It is a recognition of the loyalty of the Filipino people to America. In accordance with the terms of the War Damage Compensation Act, the United States will make direct monetary compensation to individuals and entities to the amount of no less than 400 million dollars. The machinery necessary to handle this distribution has been set up. The Act requires that on the Commission entrusted with this work, the Philippines have a representative, and one of our distinguished citizens is today occupying this position and acquitting himself with credit. Secondly, in accordance with the surplus property provision (Sec. 201), the United States granted to the Government of the Philippines, as indirect help to its people, without reimbursement, surplus Army and Navy property left in the Philippines at the termination of the war and no longer needed by the Armed forces, conservatively estimated as worth some 630 million dollars in original cost, consisting of movables, and, in addition, fixed installations and other immovables estimated as worth 54 million dollars more. In the grant, this property is assessed at only 100 million dollars. The expectation is that the Filipino people, exercising their good judgment, will make use of this property to replace or repair similar property lost or damaged in the war, and convert into cash such part of it as is not needed for these purposes. The administration, protection, and disposition of such vast quantities of property, scattered about in different parts of the country, can not be considered a simple matter in any sense of the word. Impressed by the magnitude and importance of the task, President Roxas spent long days and nights in the study of how to derive the maximum benefit for the people out of this bounty suddenly dropped in his lap. To aid him in this task, he enlisted the services of three able men in whom he has full confidence, but feeling that it is his personal responsibility, he has not relinquished personal control and has given his attention even to the details of admninistration. It is impossible for any man to form a complete mental picture of this vast treasure. Roughly, and in round figures, the quantities and values of the surplus property, which consists of vehicles of all kinds, tractors, cranes, rollers, graders, derricks, electrical and radio equipment, general commissary goods, etc., stored in several provinces, are as follows: Approximately 67,000 tons, valued at over 55 million dollars, in Leyte; 17,000 tons, valued at 5-1/2 million, in Cebu; 116,000 tons, valued at 88 million, in Batangas; 7,000 tons, valued at 1-1/2 million, in Palawan; 81,000 tons, valued at 67 million, in La Union; 300,000 tons, valued at 115 million, in Samar; and over 450,000 tons, valued at nearly 300 million, in the Base X (Manila area), which comes to a total of over 1,000,000 tons of property, truly a staggering figure. When one begins to think of those vast quantities and immense values, one gets some idea of the problem which confronts the President. The property is not, as one might suppose,stored in concentrated lots in the places mentioned, but is scattered about in various depots and areas. Some of it is stored in open places which, originally fenced, are now exposed; some of it, though stored in roofed warehouses, is by no means safe from looters. Most of the property, brought to the Philippines since 1944, has suffered considerably from deterioration by exposure to the weather and lack of care; in fact, the quantities are so inmense that it is not humanly possible to give the property the care and attention which it requires. No inventory is available. It is doubtful that an inventory could be made which would be anywhere near accurate because there are thousands upon thousands of different articles, many of them highly technical in nature. Even if competent personnel could be employed, the expense would be tremendous and might easily offset the recoverable value of the goods. All this has rendered the property particularly susceptible to pilferage, and the losses which the Government has already suffered through this cause amount to millions. It is unfortunate that the transfer of the property to the Republic was so slow, due to perhaps a too strict observance of governmental rules and regulations. This has meant not only further deterioration, but added expense, which will continue to mount until the property is disposed of. If government restrictions had been somewhat relaxed, and ordinary business methods had been employed, more progress would have been made. While it is true that a relatively small part of the property has found its way into the hands of a considerable number of legitimate buyers, many persons, it is common belief, have taken dishonest advantage of the confused situation at the cost of delay in a more general rehabilitation. (Be it said that one outstanding contribution to the rehabilitation of Juan de la Cruz is the "jeep". The jeep brought with it speculation and organized theft, but the general result of its appearance and use has been to the common man's advantage. This versatile vehicle has given employment to thousands and brought the means of transportation to hundreds of thousands, though it has also created a big traffic problem in the country.) Time has been against the best intentions of the two nations whose objective is for the people of the Philippines, through its Government, to derive the fullest measure of benefit from this surplus property. Petty jealousies and personal motives on the part of some, and an overemphasis on technicalities on the part of others among those entrusted with the responsibility of administering it, have been a serious handicap. In those critical months following the defeat of Japan, there was opportunity for quick action to insure that a considerable part of the surplus property would be immediately devoted to the purposes specified in the Rehabilition Act. The mandate was and is for prompt disposal for the repair of the damage caused by the war. Instead, through improper direction, a great part of it fell into the hands of unscrupulous persons who enriched themselves to the detriment of the people, while a considerably greater part has been allowed to deteriorate and to become obsolete. The Republic Act accepting this grant from the United States requires that the disposal of that part of the property not needed by the Government, is to be made through * Former head of the Office of the Purchasing Agent, Bureau of Supply. 145

established commercial channels, and that products of given brands or makes are to be marketed through the established agencies of those brands. The wisdom of the provision is obvious, but it is a sad commentary on this good intention that the established commercial distribution agencies have shown an utter indifference, perhaps because the two Governments also have been unmindful of and indifferent to these agencies as channels for disposal. The greater part of the property, much of it now in poor condition through age and deterioration, remains unsold. A considerable portion of it can never be sold. The onrush into the market of new, more modern equipment has overtaken this war materiel, and the business which is steadily taking normal shape in the country appears to prefer the new equipment even if it has to pay a lot more for it. Thus today, the Government is confronted with the big problem of how and where at this stage to dispose of the remaining surplus property, which is costing the Government millions of pesos to keep and protect. If it cannot be converted into cash, what to do with it, and how to pay for doing it? The Government must dispose of it for the simple reason that it can not afford the expense of keeping it forever. The surplus property has done the country some good. It could have done much more good a year or two back if the opportunity had been taken advantage of then. Whether in the end and as a whole, it will have done more damage than good to the country by retarding the reestab lishment of normal business, may still be considered a debatable question. To close on a somewhat more constructive note, I would propose: (1) That every effort be made to obtain the earliest possible delivery of all remaining surplus property from the Foreign Liquidation Commission so that the Surplus Property Commission would have full jurisdiction; (2) That the general supervisory functions of the Surplus Property Commission be divided among the three members, each to exercise these functions over specified classifications of the surplus goods, as this would save time and effort; (3) That the depot and base superintendents and their staffs be given greater authority in disposing locally, where possible, cf the goods in their charge without referring everything to Manila at every step, subject, naturally, to certain limitations and in conformity with directives respecting public bidding, valuation, prices, thus reducing losses from spoilage especially in consumption goods; (4) That, where possible, the surplus property be disposed of in bulk, in very large lots, and even by whole depots and bases, to avoid further losses in time and from deterioration, spoilage, and looting; (5) That bids be invited from abroad as well as locally since the stocks available in many cases are too immense for local use or consumption; (6) That a general inventory be made immediately, but only according to broad classifications of goods, and that corresponding catalogs be made available to possible bidders; (7) That the Government select and at least roughly segregate or ear-mark right away all, the surplus property its needs for its own purposes so that the rest can be advertised for immediate sale; (8) That the various government entities be permitted to submit their respective requisitions for needed surplus goods, regardless of the availability of funds to pay for them, since these transactions are intergovernmental and mean only paper-work anyway. On The Proposed Central Bank* By Miguel Cuaderno, Sr. Secretary of Finance I am happy to be with you today to discuss and present in their proper perspective some of the important economic and financial problems that confront the Philippines. As Chairman of the Philippine Section of the Joint Philippine-American Finance Commission, I take this opportunity to explain to the representatives of the business and banking community some of the important conclusions arrived at by that body. You will recall that the Joint Philippine-American Finance Commission was created upon agreement of the Philippine Government and the United States Government to consider the financial and budgetary problems of the Philippine Government and to make recommendations thereon to the heads of the two governments with reference to taxes, budget, public debt, currency and banking reforms, exchange and trade problems, reconstruction and development. I shall not have time to discuss all of these problems in detail so, I shall confine myself to two of them, namely; currency and banking reforms; and touch very briefly on the other points. Let met first consider the currency problem: At the outset, I wish to make the observation that of all the vital problems of the Philippines today, that of the currency has been the least understood and productive of the most unorthodox views. I hope that I shall be able to dispel some doubts that seem to have been created by the recommendations of the Joint Commission and contribute to a clearer understanding of this problem. The Philippines is on what is known as the dollar exchange standard. From 1903 to 1934, our currency system followed the pattern of the gold exchange standard. The peso was redeemable in dollars which in turn were redeemable in gold. The reserves of the currency which were regarded as gold were deposited almost entirely in the United States. The currency system of the Philippines was inseparably linked to that of the United States and the peso followed the fortunes of the American dollar. When the United States abandoned the gold standard in 1934, the Philippines was also compelled to abandon the gold exchange standard. By an amendment of the currency law, we fixed the value of the peso at the rate of P2 to $1, no matter what happened to the dollar. The Philippines has been since 1934, on the dollar exchange standard. Independence has not changed the currency system in any way and the peso continues to be inseparably linked to the American dollar. Under the Philippine Rehabilitation Act of 1946, otherwise known as the Bell Act, the value of the peso in relation to the dollar "shall not be changed, the convertibility of pesos into dollars shall not be suspended and no restrictions on the transfer of funds to the United States shall be imposed except by agreement with the President of the United States." No modification of this arrangement is proposed or even contemplated. There is, however, one feature of our currency system which has been a drag on the economic development of the Republic. It does not permit the regulation of the money supply to meet the internal needs of the economy. The system still follows the 19th century principle of "hard money" which permits the monetary authority to issue currency only to the extent of the reserves. This is a principle that has long been abandoned by all progressive countries but we still continue to observe it to our great disadvantage. In order to remedy these defects, the Joint Philippine*From a speech delivered before the Manila Rotary Club, July 17. 146

American Finance Commission recommended the adoption by the Philippine Government of a managed currency system. The monetary authority of such a system will be a Central Bank, an institution that has been established in almost all civilized and progressive countries of the world today. Under such a system, the volume of circulation will be expanded as the need for it arises and contracted when there is no longer any necessity for a large volume of money. Needless to say, this arrangement is not feasible in the Philippines today in the absence of a Central Bank. There seems to be some apprehension in a segment of the business community about the proposed change in the currency system. It is feared that such a system might disrupt business and it is felt that the Philippines should go slow in effecting the change. Such a view, I must say, can be entertained only by those who are not well informed of monetary reforms in the world today. Most countries after the Great Depression of 1929-1933 had gone on a managed currency system which is quite different from the gold standard. The gold standard is in itself a managed system to a certain extent, but it gives very little or no discretion at all to the monetary authority in alleviating credit stringency in times of emergency. No important country in the world today adheres to the automatic currency system the gold standard is commonly regarded, without imposing heavy handicaps on efforts to revive its economy. We must reform our outmoded currency system if the Philippines is not to lag behind in expanding its economy and in affording higher social standards for the people. Only thus could we facilitate reconstruction and permit the country to effect diversification of the national economy within the limitations of our natural resources and available man power. The editor of one of the local newspapers has expressed the opinion that the currency reforms recommended by the Joint Finance Commission would bring about a complete shift in the country's monetary foundations from a United States dollar-backed reserve currency to a managed currency system under a Central Bank operating in Manila. This observation suggests the abandonment of the dollar exchange standard and the unlinking of the peso from the dollar. Nothing could be farther from the truth. The dollar exchange standard would continue even after the establishment of the proposed managed currency system. The proposed change would not violate any of the international commitments of the Philippines under the International Monetary Fund or under the Bell Act. The fundamental change in the system will be that the currency issue will not be related to a fixed percentage reserve, as at present, but will depend upon the needs of trade and industry. I must mention here that the stability of the external value of a currency depejds upon the willingness and ability of the monetary authority to redeem the national currency in usable foreign currencies. This is the only type of redemption that is necessary today in order to maintain a sound currency system. As the capacity of the Central Bank to meet any and all demands for foreign currency depends upon its foreign exchange assets or reserves in international money, it will have to maintain a close watch over its foreign exchange position while it meets all possible demands for increased credit and currency circulation. It will be the duty of the Central Bank to adopt all necessary measures to assure an adequate supply of foreign exchange in order to maintain the value of the peso. Without a Central Bank it would be impossible to have a managed currency. The Central Bank is an institution that we have been trying to establish in this country for the past decade. I believe that our efforts to establish a Central Bank will be realized now. The importance of such an institution in the post-war period was so well realized by the Joint Philippine-American Finance Commission that we were able to sign a unanimous report on this subject. The Commission recommended that even before the actual establishment of the Central Bank, a division of economic research and statistics should be organized to begin immediately to set up those statistical measures which the institution must have in order to control credit intelligently. It also recommended the appointment of a Central Bank Council which will draft the new monetary and central banking laws, select the key personnel of the bank, arrange for a period of study and training for them both at home and abroad, and obtain whatever necessary technical assistance which can be acquired from abroad. The Central Bank will assume the functions pertaining to currency now exercised by the National Treasury. It will assume the liability for all treasury certificates and acquire all the currency reserves. The Bank will be the sole issuing authority for all notes and coins in circulation. It will in short be the monetary authority in the Philippines-the guardian of the stability of the monetary system. It will at the same time act as fiscal agent of the Government. The Central Bank will also be a banker's bank and will normally have direct relations only with the banks and the Government. It is proposed to make the Central Bank a separate entity, completely independent of existing government banks and financial institutions. All banks in the Philippines, both domestic and foreign, will be required to deposit their legal reserves with the Central Bank. The Bureau of Banking, like the currency and public debt divisions of the National Treasury, will be absorbed by the Central Bank. The Central Bank will perform a most important function in the rehabilitation and economic development of the country. It will enable the banks to expand their lending capacity, and will promote credit conditions which will foster an expanding economy. The post-war era will witness a tremendous development of public credit in this country. Heretofore, we have relied mainly upon foreign investors to purchase government bonds. Only a very small proportion of the public debt today has been absorbed locally. From now on, it is proposed that the Government rely more and more on the local money market for its short- and long-term financing. The banks and insurance companies have been almost the exclusive investors in government securities in the Philippines. In order to avoid any inflationary trend that might result from government financing it will be advisable to develop a market consisting to a large extent of individual investors, small savers who would put their excess funds in government bends and thus mop up excess purchasing power which competes for scarce commodities. It will be difficult, however, to develop such a market if those who purchase government securities cannot conveniently dispose of their holdings except at a great loss when they need their money. To attract this type of investors they should be assured of the ready convertibility of their bondholdings at par or at a nominal discount only. The Central Bank will provide such an instrumentality as it could afford the banks the necessary accommodation in case they should find it necessary to raise funds against government securities. It is impossible to develop an active money market here without the intervention of a Central Bank. The banking system of the country is decentralized, each bank minding its own business and depending upon its own resources to meet any credit stringency or emergency that may impose heavy demands upon it. For this reason, each bank must always maintain a high level of liquidity, immobilizing an enormous amount of idle funds which can not but mean idle men and resources in a capital-poor country like the Philippines. Our banks are sound, let there be no mistake about that, but it is a sound position maintained at too high a price,-one which we can ill afford to pay during this period of our national existence. This fact has long been recognized but no relief could be afforded (Continued on pane 169) 147

The Business View A monthly review of facts, trends, forecasts by Manila businessmen Office of the President From an Official Source July 16-August 15 O carry out the maternal-child health and nutrition program of the Government, 23 maternal-child health and nutrition units left Manila on or about July 15 for various provincial assignments. Some of these units were to operate where there were no existing puericulture centers and municipal maternity charity clinics. Some of them were assigned to treat on-the-spot cases of school children who are suffering from eye, ear, nose, and throat diseases. Notice was given (July 19) to all holders of emergency currency notes that they should register their notes with any city or municipal treasurer on or before July 31. In view of the great volume of business at present being handled by the Government, the Cabinet decided on July 22 to hold its meetings at 5 o'clock in the afternoon instead of in the morning. President Roxas on July 29 issued Executive Order No. 68 establishing a National War-Crimes Office for the trial of all Japanese accused of war crimes committed in the Philippines and prescribing rules and regulations governing such trials. The War-Crimes Office was organized under the Judge Advocate General's Office of the Army of the Philippines. On July 29, the President issued Proclamation No. 29, reserving as special forest for government lumberproduction purposes a parcel of land situated in the munioipalities of Butuan and Buenavista and the municipal districts of Las Nieves, Remedios, Milagros, Concordia, Esperanza, Guadalupe, Santa Ines, San Luis, Mampinsahan, Verdu, Maygatasan, and Nuevo Sibagat, Agusan, Mindanao. The President issued on July 29 Executive Order No. 69 requiring aliens charged before the Deportation Board with collaboration with the enemy to file bond for their appearance. On July 30, the Cabinet approved the purchase by the Government of 60% of the stock of the Manila Gas Corporation as a service essential to meet the public needs. The Cabinet also approved the payment under certain conditions of deposits made in the Postal Savings Bank by depositors who had lost their bank-books. Three million four hundred thousand pesos was set aside to open as many additional classes in elementary schools throughout the country as possible. This amount is to be supplemented by funds that may be gathered by parent-teacher associations. Twenty-five thousand pesos was willed by the 1 te D. C. Chuan to the Philippine Government to be spent for the education of deserving sons and daughters of dead and disabled Filipino veterans of World War II. Executive Order No. 70 was issued on July 29 declaring civilian volunteers who were members of recognized guerrilla units as having the equivalent training of those who have completed trainee-instruction and as constituting members of the Philippine Army reserve units. The office of the President issued a "Statement Showing the Collections Reported During the Month of May, 1947, and those from July 1, 1946, to May 31, 1947, the latter period as compared with July 1, 1945, to May 31, 1946." (See Table) Architect Juan M. Arellano was designated by the President to head a mission of Filipino architects to North, South, and Central America to study different types of architectural design in connection with the plans for the Philippine Capitol and the University of the Philippines. An agreement was signed on August 4, between C. W. Lee, General Manager, Philippine Consolidated Shipyards, and Amado V. Hernandez, representing the striking laborers of Engineer Island. According to the agreement the strike was to be declared closed and the Philippine Consolidated Shipyards was to rehire around 2,200 men. On August 4, the Office of the President announced that the capital stock of the Manila Gas Corporation would be increased to P2,500,000, of which P1,500,000 will be subscribed by the Government. Of the P1,500,000, P840,000 will be covered by bonds of the Manila Gas Corporation held by the Agricultural and Industrial Bank and will be converted into shares of stock of the Gas Corporation. Proclamation No. 31 fixing August 16, 1947, as the date for the inauguration of Rizal City was issued on August 4. The customs collections for the fiscal years 1946 and 1947 were reported on August 6, by Secretary of Finance Miguel Cuaderno, Sr. as follows: July 1, 1945, to June 30, 1946............. P 5,026,585.37 July 1, 1946, to June 30, 1947............. 22,515,00.72 The Office of the President announced that P40,000,000 for the reconstruction of government buildings was declared available by the War Damage Commission on August 8. The full membership of the Architects' mission was announced on August 8: Juan M. Arellano, chairman, and Juan F. Nakpil, Antonio Kayanan, Antonio Toledo, members. Two hundred nineteen tractors of various kinds were announced as available for sale at Guiuan, Samar, on August 8. President Roxas received from James M. Henderson, Administrator of the Philippine Alien Property Administration, two valuable lots with buildings in the City of Manila. One of the lots is situated on P. Paredes Street, valued at P228,000. The other is on Arlegui, valued at P100,000. The two pieces of property were turned over to the Philippine Government for a token payment of P2. Executive Order No. 74 issued on August 12, prescribes that physical and medical examination be required of proposed appointees to the unclassified service and government boards, agencies, and instrumentalities. Proclamation No. 32 (August 12) reserved for lumberproduction purposes a parcel of the public domain in the municipality of Nasipit, Agusan, Mindanao. On August 12, President Roxas designated the Cebu Landing Field as a national airport by virtue of Executive Order No. 75. Executive Order No. 31 creating the Shipping Commission was amended by Executive Order No. 76 to increase the membership to five. The President mobilized all the relief agencies of the government to aid flood sufferers on August 10 and 11. The Radio Broadcasting Board to supervise and carry on the activities of the KZFM, the government radio station, was established by Executive Order No. 73, issued on August 12. The station will specialize in cultural and educational broadcasts. 148

The President declared on the second anniversary of V-J Day, August 14: "The economic rehabilitation of the Philippines is being retarded due to our inability to secure needed credit facilities and the capital goods required for the rebuilding of the industries destroyed by the war. Construction materials for homes and factories are also very scarce but we are doing much with the little we have. The people are working and hoping and striving for better things and for a better life... "American-Filipino relations are cordial and happy. I am sure they will remain so. Recently we have entered into a treaty with the United States for the establishment of American military and naval bases in the Philippines for the mutual defense of our two countries. This arrangement, I am certain, will prove effective in insuring the security of our nation. "Filipinos value the friendship of the United States and are deeply grateful for the assistance they are receiving from America. The Americans in the Philippines are working shoulder to shoulder with the Filipinos to retrieve from the ruins of our country the broken struc ture of its economic and social systems. The Filipinos have recaptured the voice and substance of democracy which the barbarians have sought in vain to subdue for four long years." Proclamation No. 30 (July 30) declared the second Saturday of September of each year as Arbor Day and created committees to direct the observance. The Secretary of Justice issued Circular No. 128 on August 12, permitting aliens in the Philippines to purchase private real property. On August 14 the President sent the following radiogram to the Governor General of India at New Delhi: "Excellency: On this memorable occasion, the Government and people of the Philippines join me in extending my most cordial felicitations and sincere wishes for the success of the new Dominion." He sent similar messages to Pandit Jawarhal Nehru and to the Governor General of Pakistan. STATEMENT SHOWING THE COLLECTIONS REPORTED DURING THE MONTH OF MAY, 1947, AND THOSE FROM JULY 1, 1946, TO MAY 31, 1947, THE LATTER PERIOD AS COMPARED WITH JULY 1, 1945, TO MAY 31, 1946. Source of Income EXCISE TAXESDom estic......................................... Im ported...................................................... TOTAL EXCISE TAXES..................................... License, business, and occupation taxes............................... Franchise Tax...................................................... Documentary stamp tax............................................. Income tax.......................................................... W ar-profit tax....................................................... Estate, inheritance, and gift taxes................................... Residence tax........................................................ Revenue from public forests.......................................... Rental of water power............................................... TOTAL REVENUE FROM TAXATION.............................. Incidental revenue................................................... Earnings and other credits............................................ SPECIAL FUNDS: Highway special funds (Taxes and penalties)..................... Radio registration fees (Taxes and penalties)....................... Tobacco inspection fees (Taxes and penalties).................. National Parks (Taxes and penalties).............................. TOTAL SPECIAL FUNDS...................................... Collections accruing entirely to provinces and municipalities(Taxes and penalties).............................................................. GRAND TOTAL............................................ May, 1947 P 1,255,957.45 4,657,143.16 5,913,100.61 1,368,818.73 33,895.42 310,405.89 11,276,840.12 58,124.27 76,080.13 217,574.10 161,619.40 19,416,458.67 81,467.51 6,842.77 2,789,784.61 12,585.93 5,765.32 2,282.56 2,810,418.42 July 1, 1946 to May 31, 1947 P 9,671,280.72 39,239,835.80 48,911,116.52 55,566,052.95 696,474.58 2,791,211.08 18,841,854.54 118,738.86 1,658,976.46 2,459,400.61 1,323,356.57 1,684.55 132,368,866.72 982,287.03 10,302.86 24,964,492.85 103,837.44 38,158.33 11,773.28 25,118,261.90 July 1, 1945 to May 31, 1946 P 6,490,387.05 14,339,397.81 20,829,784.86 12,216,823.87 239,331.97 690,147.91 6,843,305.20 375,115.93 778,542.48 121,628.05 54.00 42,094,734.27 366,703.43 57,850.97 290,402.86 26,590.95 19,313.38 336,307.19 21,679.09 42,877,274.95 Increase or (Decrease) P 3,180,893.67 24,900,437.99 28,081,331.66 43,349,229.08 457,142.61 2,101,063.17 11,998,549.34 118,738.86 1,283,860.53 1,680,858.13 1,201,728.52 1,630.55 90,274,132.45 615,583.60 (47,548.11) 24,674,089.99 77,246.49 18,844.95 11,773.28 24,781,954.71 100,504.23 115,724,626.88 7,637.20 122,193.32 22,322,924.57 158,601,901.83 DISTRIBUTION OF COLLECTION To the N ational Governm ent......................................... To the Highway Special Fund....................................... To the Provincial Governments........................................ To the Municipal Governments...................................... To the Chartered Cities.............................................. To the Radio Broadcasting Fund.................................... To the Tobacco Inspection Fund...................................... To the National Park Fund......................................... GRAND TOTAL.............................................. July 1, 1946 July 1, 1945 Increase May, 1947 to toor May 31, 1947 May 31, 1946 (Decrease) P19,043,966.59 P 122,943,604.53 P41,085,898.75 P81,857,705.78 2,789,784.61 24,964,492.85 290,402.86 24,674,089.99 355,054.63 8,783,676.69 941,156.23 7,842,520.46 80,563.39 985,308.041 418,593.01 566,715.03 32,921.54 771,050.67 95,319.77 675,730.90 12,585.93 103,837.44 26,590.95 77,246.49 5,765,32 38,158.33 19,313.38 18,844.95 2,282.56 11,773.28 -11,773.28 P22,322,924.57 P 158,601,901.83 P42,877,274.95 P115,724,626.88 149

Banking and Finance By C. V. GRANT Sub-manager, National City Bank of New York IN accordance with the Philippine-American Joint Finance Commission's recommendation that the Philippine Government adopt a managed monetary system in which monetary authority and responsibility would rest in a central bank, President Roxas by Executive Order has appointed a board headed by Secretary of Finance Cuaderno as a Central Bank Council. The Executive Order specifies that the functions of the Council will be: 1. To prepare recommendations of the necessary changes in the monetary law and define the organization, purposes, and functions of the central bank. 2. To draft the new monetary and central banking laws in accordance with the principles set forth in its recommendations. 3. To organize a division of economic and statistical research which would immediately begin to set up statistical measures which the central bank must have to intelligently control credit. The Beyster Commission which has been in the Philippines for several months has issued its report and has proposed the creation of an economic council with broad and extensive powers over all phases of Philippine industry. While it is understood that this report will serve as the Government's master blue-print for an extensive industrialization program, the recommendations of the PhilippineAmerican Joint Finance Commission must be incorporated in the over-all plan in order to convert the economy of the country from an agricultural to an industrial one. During this and the next three years, it is estimated that the United States Government will pour into the Philippine economy at least $300,000,000 a year. Although the Armed Forces will spend considerably less than in the years 1945-1946, disbursements by the War Damage Commission, Veterans' Offices, and Public Works will make up the difference. Estimates of exports during the same period are at the rate of $225,000,000 yearly. Against an estimated yearly inflow of foreign exchange of at least the equivalent of $525,000,000 a year, it is predicted that imports, which registered an all-time high of $340,000,000 last year, will average through 1950 at not over $250/275,000,000 yearly, thus leaving a surplus of at least $250,000,000 in foreign exchange assets available for use in the Government's long-term rehabilitation program. Note circulation at the end of July was P733,000,000, up P17,000,000 from June 30, due to the transfer of $10,000,000 to the Treasury Certificate Fund representing proceeds of part of the United States loan to the Philippine Government. The customary comparative figures of assets and liabilities of banks for the last two months still are unavailable at the Bureau of Banking. Credit By DUNCAN BURN Association of Credit Men, Inc. (P.I.) DURING the past month there has been little noticeable change in local business transactions relative to the extension and use of credit. As noted last month in this column there has been here since the war but limited use and little need of credit. In many lines credit is still not widely sought or used. To a large extent consumers still have cash and there is still sufficient immediate demand for most consumer goods to make credit of little importance. In some few groups of commodities there has been noted a gradual increasing in the extension of credit by importers and in the request for credit by consumers. Thus far, credit extensions have been in most instances limited by firms to old and well known clients. Extension has been more conservative, in general, than before the war. Present circumstances are such that firms can readily limit credit-lines, while at the same time consumers are prepared to accept readily such limits. Current conditions allow for business houses to obtain experience, starting from small limits and gradually increasing. Such a condition has not frequently existed heretofore, and under these conditions the reestablishing of credit-lines can and should be undertaken in a more considered manner. In the Philippines there is now offered an opportunity which has not previously existed for most business firms. It is, in effect, a situation wherein importers and merchants are making a new start, and virtually all clients and consumers are at the same time making a new start. It is in many ways a situation which offers definite advantages, and it is to be hoped that creditors and clients alike will take advantage of the opportunities presented and so handle the extension and use of credit as to prepare sound and sensible basis for a healthy development of credit throughout all phases of business in the country. Stock Market July 16 to August 15, 1947 By A. C. HALL A. C. Hall & Company HE confused position in regard to the free gold situation has been the principal market factor during the monthfi under review. Early in the month, demand for gold shares was stimulated by the Secretary of the Treasury's statement that the American Government would not make any attempt to stop premium transactions in gold by United States refiners. This was followed almost immediately by action in Washington and London to stop premium sales of gold. Official steps were also taken here to restrict exports at prices above $35 an ounce. In consequence of this situation, prices of the leading mining issues have see-sawed back and forth during the month in sympathy with press reports. As measured by our Mining-share average, a high for the period was reached on July 19 at 34.53; the low point occurred on July 29 at 31.33, followed by a recovery to 33.45 on August 15. Whatever the final outcome on the gold-price situation will be, there is no doubt that today many people believe that the precious metal is greatly undervalued at its official price of US$35 an ounce. An example of this is that local buyers have recently paid US$50 an ounce for fine gold. Actually the position is that either gold is too cheap, or everything else is too dear, which is the reverse of what occurred during the great depression. Historically, this is not new; with the passage of time a more equitable relationship will be restored between gold and commodity values. Fluctuations in individual issues were somewhat mixed. Atok at P1 and Big Wedge at P1.06 were off 4 and 10 points respectively. Mindanao Mother Lode however continued well-bought for investment purposes, and closed the month, up two points, at P.76. This stock has been the best performer during the past three months in anticipation of the resumption of milling which actually occurred a few days ago. The Company is the third important producer to recommence in the post-war period. Lepanto Consolidated was another firm issue, closing at 34, up three points. In unlisted mining issues, some 13,000 shares of Balatoc 150

i~i~iL~ia — Ifi1i~ -, I It II I. I I I r t- - [I.. i' i — l-_- - Sugar shares were in some demand at slightly better — _ prices. The following business was reported: Bais, 10 l-"!- -shares at P675; Carlotas, 150 shares from P92 to P95 -_ _ — I - earlier in the month, but the stock closed at P110 bid; --..- Pasudecos, 125 shares at P21; Tarlacs, 38 shares at P55; i and Victorias, 850 shares at P110. In the unlisted section, __[?~. 44 shares Bacolod Murcia were reported at P10, and 587 -- shares Talisay-Silay at the same price. - Unlisted commercial stocks were inactive. Reported __ __ in this section during the period were various small lots of -_. __.._. Jai Alai, totalling about 500 shares, at P17; a small lot of Manila Yellow Taxi Cab at P20; and 5,000 shares Manila... _Jockey Club at P3. I I I I I I I I I I I H z 4 1 -_ _ I I I i I I I _ 1 1 1 L.]1 1 1 -I I Il T,, I I I L_ | 4 7a L_ 1 V LVE M _V _ _./ < _ | 7 | ALd1 Manila Min'ng Shares Averages for the period from July 16 to August 15. Insurance By ARTHUR H. HENDERSON Vice-President, American International Underwriters for the Philippines, Inc. MANILA STOCK EX( July TOTA SALE Acoje Mining Company............. ] Antamok Goldfields.. Atok Gold Mining Company........ Baguio Gold Mining.. Batong-Buhay Gold M ines............ 1,7 Big Wedge Mining Company......... Coco Grove, Inc..... Consolidated Mines, Inc............... 7,6 I.X.L. Mining Company............. 1 Lepanto Consolidated 4 MasbateConsolidated 2 Mindanao Mother Lode Mines....... Paracale Gumaus.... San Mauricio Mining. Surigao Consolidated. 5 1 5 changed hands betwe latter figure; Itogon volume of 105,000 she reported at 3 centavo, and advanced to 10 cei shares. In over-the-count demand with opening low of P3.90, closing al shares. Far East Oil was almost 1,200,000 share, was 70, the low 54, cl( In the commercic stocks, trading was mo prices on the whole. S Islands were made at Seguros at P21. Mai P4.50 ex-dividend, an( hands from 1.54 to 1.7 dividend of 10%. Phili active, trading betwee San Miguel Brewery from trading as from new stock with the Se( Before this occurred, new high ground, witi turnover of 245 share stock-dividend of 75% P75 to P10 per share new stock now being 1 ding P60 for the new CHANGE LISTED MINING SHARES. R. L. Stewart, Manila manager of the Union In16 to August 15, 1947 V surance Society of Canton, Ltd., and also Chairman LL of the Manila Marine Insurance Association, gave.S HIGH Low CLOSE CHANGE an interesting address on conditions at the Manila piers 146,000 P. 27 P.24. 24 Off.01 at a recent meeting of marine insurance underwriters. - - -.022 bid unehanged Mr. Stewart informed those present that at a recent meeting of the Arrastre Advisory Committee, Mr. C. 98,967 1.04.96 1.00 off.04 Parsons, Acting General Manager of the Manila Terminal 15,000.05.05.05 off.01 Company, had given the meeting to understand that losses 790,000.008.0066.007 off.001 of cargo through pillaging were still very serious, although there was improvement from six months ago; had emphas37,492 1.14 1.00 1.06 off.10 ized the difficulties of suppressing the evils on the water87,000.032.025.025 unchanged front; and had mentioned proposed ways and means of i82,000.013.011.012 off.001 dealing with them. "It can be truthfully said that the Manila pier condi-.03,000.085.075.08 unchanged tions have been very unsatisfactory for over two years 31,000.0475.04.04 up.01 now", continued Mr. Stewart. "Due to abnormal condi*0.0475 0 04 off tions in 1945 and during the first part of 1946, little else 537,700.79.68.76 Up.02 could be expected; but I think all underwriters will agree 15,800.10.07.07 off.02 with me that the conditions have lasted too long and.80,000.25.205.23 up 02 22,729.29.22.275 up.025 that their continuance on anything resembling the present ratio of losses, is going to result in unhappy experiences for.en P4 and P3.90, closing at the themselves. You will note that rates tend to go lower was unchanged at 7 centavos on a while the loss-risk potential remains more or less static. ares; and a small lot of Suyoc was "The question is what are we going to do. Approaches s. United Paracale was in demand to the Terminal Company bring the answer that they are ntavos on a total turnover of 121,000 doing everything possible. That, however, is not enough. The committee of the Manila Marine Insurance Associa-:er dealings, Benguet was in good tion, which has ventilated this matter at some length, feels sales at P4.35, a high of P4.65, a that an approach should be made to high authority. t P4.10, on a total turnover of 32,000 "His Excellency the President has shown interest in an aspect of fire-insurance losses, and there is no reason to very active with dealings totalling suppose he would not be interested in the loss-of-cargo s. The stock opened at 64, the high situation at the piers and in considering means of avoiding Msing at 58. this deplorable economic wastage. By economic loss of al and industrial section of listed cargo I do not always mean loss by thievery, but also by )derately active at slightly improved bad handling, careless stacking, exposure to the elements, 'mall sales of Bank of the Philippine and other causes. With food shortages so critical in many P72, and Filipinas Compafiia de countries the wastage seen on the Manila piers is to be nila Wine Merchants were done at condemned. d about 10,000 Pambuscos changed "As regards thievery, it appears that all over the world 75 cum-dividend, closing at 1.50 ex- people have learned to help themselves to others' property ippine Racing Club were moderately and will continue to do so as long as it is cheaper and sn 1.12 and 1.16, closing at 1.14, easier to steal than to buy. shares were temporarily suspended "The committee of the Manila Marine Insurance July 31, pending registration of its Association feels that if any complacency existed, the time curities and Exchange Commission. for it is past and that direct action should be initiated. however, the stock continued into You will have seen in the press recently, the statement i last recorded sales at P727 on a made by Mr. Parsons of the Manila Terminal Company, s. The Company has declared a to the effect that over six million pesos of claims were filed and is reducing the par value from against the Terminal. That figure, I think, falls short of, the ratio between the old and the the total. I read no editorial comment or correspondence to 13. On July 30, buyers were bid- concerning this, and the news-item appears to have been stock. accepted generally as something quite unimportant. 151

"My own experience and that of other underwriters is that claims, substantial ones as well as small ones, on 1945 and early 1946 shipments, are now being reported for the first time. At the moment nobody knows his outstanding losses. "Heavy losses still occur and it seems that wellorganized gangs are operating and that a good deal of connivance must exist," concluded Mr. Stewart. Fire losses in the Manila Area for the month of July, 1947, as reported by the Manila Fire Department show a material decrease in their frequency and the value of property destroyed. FIRE LOSSES IN THE MANILA AREA JANUARY TO JULY, 1947 Number of fires Losses 1947 Within Outside city city Buildings Contents Total limits limits January.... 60 6 P 42,700 P 48,878 P 91,578 February... 71 3 114,615 1,171,433 1,286,048 March..... 88 11 280,874 1,918,200 2,199,074 April...... 73 4 497,443 1,228,304 1,725,747 May....... 45 4 173,402 588,660 762,062 June....... 63 4 67,302 579,974 647,276 July...... 33 2 129,503 192,160 321,663 ___433 31 P1,305,839 P5,727,609 P7,033,448 It would appear that the more stringent underwriting policy of underwriters may have had a salutary effect. Electric Power Production (Manila Electric Company System) By J. F. COTTON Treasurer, Manila Electric Company City Planning By LouIs P. CROFT Acting Director, Urban Planning Commission HE traffic problem of Manila is that of the 1947 streamTline automobile trying to negotiate 1847 streets. The menacing growth of this problem was recognized by several agencies before the war and some attempts were made to remedy the conditions. The Major Thoroughfares Plan of Manila, prepared by the Planning Office with the cooperation of the Bureau of Public Works, the City Engineer, and the Traffic Division, offers a general framework for the mass transportation of the Metropolitan Area of Manila and the region which it serves. If the Major Thoroughfares Plan were in operation today the present bottlenecks of Rosario, Plaza Santa Cruz, Aviles, and Legarda streets would have been eliminated. The bridge at the mouth of the Pasig River would be carrying the great load of traffic from one port area to the other. Boulevards along the banks of the River would offer freeways and limited-access heavy traffic routes into the heart of the City. But the Major Thoroughfares Plan is not in operation and can not be until Jones Bridge, Quezon Bridge, the bridge at the mouth of the River, and another bridge near the present railroad bridge are functioning. Meanwhile, Manila will have to suffer a tremendous loss of time, money, and nervous energy in the tangle of traffic which must go on until the bridges are constructed. Several government agencies, the Philippine Safety Council, American Chamber of Commerce, Rotary Club, and Women's Clubs have bestirred themselves on the deplorable traffic in Manila. Several solutions have evolved. The Traffic Division has several schemes in operation to alleviate the jumble. Any improvement will help. It is hoped that since the bridges cannot be rebuilt for approximately two years, that a Bailey bridge be placed at the mouth of the River to serve the two ports, and another one at Nagtahan. There the heavy traffic of the now improved Santa Mesa Boulevard could be diverted across the River into Otis and Isaac Peral, rather than further cram the already over-loaded and narrow Legarda and Aviles streets. Real Estate By C. M. HOSKINS C. M. Hoskins G Co., Inc., Realtors HILE land prices in Manila continue firm, there is a slight drop noted on the price buyers are willing to pay for improvements. This is attributed to the substantial drop in the cost of lumber and a slight drop in wages in the building trades. IN MANILA Mortgage money is not as abundant as it was a year ago. ~tistl~cs The principal sources of mort-.age of 1946 sales, represent gage funds have been savings er liberation. banks, insurance companies, and 1946 1947. the government-owned RehabiP 4,385,011 P 6,030,012 litation Finance Corporation. 2,267,151 7,217,317 The investment funds of the ') 6 9 1nn '7 ~ A -e OIA-A 1941 Average-15,316,000 KWH 1947 Kilowat Hours January........................ 17,543,000 February....................... 17,503,000 March......................... 20,140,000 April.......................... 19,601,000 M ay........................... 19,241,000 June........................... 17,898,000 July........................... 22,593,000* August........................ 23,500,00f** Septem ber....................................... O ctober.......................................... November...................................... December...................................... 1946 Kilowat Hours 9,286,000 8,778,000 10,122,000 9,849,000 11,132,000 11,432,000 12,333,000 14,411,000 15,018,000 16,787,000 15,767,000 17,984,000 *Revised **Partially estimated Electric production in August continued to increase sharply. Output in August, 1947, was greater than August, 1946, by 9,089,000 KWH or 63.1%, and 907,000 KWH or 4% greater than July, 1947. COMPARATIVE STATEMENT OF REAL ESTATE SALES Prepared by the Bureau of the Census and Sta Note: A large percentage of 1945 sales and a diminishing percent Japanese Occupation transactions not recorded until afte January.............. February............. M arch............... April................ May................. June................. July................. August............... September............ October............. November.......... December............ TOTAL............... 1940 P 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 P17,974,844 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,235 (?) P10,647,285 1945 P 7,943,605 1,337,830 (?) 213,262 962,008 1,212,780 1,123,565 699,740 1,870,670 2,096,893 2,555,472 2,874,408 P22,890133 1,916,293 3,684,937 3,637,956 4,974,862 4,438,510 4,698,896 5,545,800 3,340,382 4,025,926 P45,537,914 8,61,076 domestic insurance companies 4,618,181 are almost all placed, and while 3,988,560 premium payments and mortgage repayments are replenishing these funds, the amount is inadequate to local needs. The few domestic banks which invest P37,632012 their savings-department funds in mortgage loans, consider that 152

their mortgage portfolios have approached prudent limits. RFC has recently limited its mortgage loans to homeowners' needs. Private capitalists who before the war were large investors in mortgages have been more interested in commercial ventures during the past two years, or in outright purchases. As institutional loans have been available at 6 and 7% interest, private investors have not been interested. Subdivision sales in established subdivisions continue active, especially for small lots on the instalment plan. Construction By H. H. KEYS Architect SHORTAGE of structural steel in local stock or expected in the near future, is causing a great deal of difficulty to contractors in furnishing estimates where structural steel is called for. The building public seems to be showing more interest in its use than was shown pre-war. Several projects requiring structural steel have been bid on, but in some cases the owners have not made their decision. This necessitates holding that much steel in reserve pending decision. Some quotations are being asked for from the United States through local representatives of the steel companies. Where this occurs, plans and specifications are sent to the United States, and the quotation sent out here. With the amount of work in the mills at home, the quotation frequently takes considerable time. Also with the great demands for steel in America, the small projects here are comparatively unimportant. When there will be an appreciable relief in the situation is hard to say. There seems to be considerable carelessness on the part of some of the American manufacturers in their shipping. Frequently material arrives minus some important part. This means that the whole shipment may be worthless to the builder until the missing parts arrive. Delivery dates are also still much of a gamble. Dates promised on receipt of order and actual dates of shipment, are often very far apart. The excuses offered, if any, are as a rule very good, but they do not help the contractor in completing his work. In view of the Escalator Clause in most quotations for buildings, many contracts are being let on the basis of cost plus a percentage, or cost plus a fixed fee. Where the contractor is required to bid a fixed sum he naturally raises in price, in the hope that he has foreseen possible increases in cost of imported material. It is not my intention to be pessimistic but merely to tell of some of the conditions faced by architects and contractors. I realize that other businesses are also having their troubles. But despite all the difficulties facing it, the public shows a desire to build. Port of Manila By H. W. TITUS Luzon Stevedoring Company, Inc. HIS month, with the final figures on import tonnages handled in the Port for June and July now available, it becomes possible to revise our table and graph which appeared in the July issue of the Journal. It will be noted that imports in June dropped to 115,441.63 tons, a decrease of 20,111.65 tons from the figure for May, 1947, of 135,553.28 tons. The import figure for July rose slightly to 118,156.98 tons, which is no really significant increase. The continued fall in import tonnage is a reflection of the situation well known to all importers REVENUE TONNAGE HANDLED PORT OF MANILA January, 1946-July, 1947 250 240 -230 -o 220 0210 ~200 190 z 180 o 170 160 j 150 z 140 130 w 120 i 110 100 90 80 70 60 50 w 4onsw w gx - onI U. 0 -*U. a)I-il 1946: January............................... February............................... M arch.................................. April................................... May................................... June..................................... July................................... August................................. September............................. October................................. November............................... December.............................. 1947: 82,303.76 111,048.26 140,659.13 74,115.56 143,128.83 121,780.80 103,998.57 99,244.86 169,035.76 56,356.80 75,956.55 141,421.10 Janual Februs March April. May.. June.. July. ry.............................. 227,354.05 ary............................... 191,489.12 1.................................. 195,461.70.......................................... 162,447.49........................................ 135,553.28........................................ 115,441.63........................................ 118,156.98 TOTAL.......................... 2,404,954.23 al Average for Nineteen Months.... (126,576.54) Arithmetic; and traders in imported goods; the market continues to be glutted with imported foodstuffs and luxury items which resulted in decreased prices and, to some extent, real consumer-resistance to paying prices, though these in many cases, are only commensurate to the landed costs of the goods-purchased in the United States in an inflationary wholesale market and subjected to high insurance and freight rates. Coupled with the above situation is the lack of availability in the United States of materials critically needed for rehabilitation construction, which either must be purchased at high prices or are subject to extremely limited United States export-licenses. Examples are pipe, steel, buildinghardware, and bathroom fixtures. Heavy electrical equipment and new machinery are, because of shortages of materials in the United States, obtainable only on delivery bases ranging from three and four months to three or four years, with several manufacturers unwilling to give any sort of indication of delivery. 153

For the future, it is of course true that every improvement in the facilities of the Port, such as those indicated in the August issue of the Journal in this column, will by speeding up cargo handling and dispatch, cut down the expense now felt in getting merchandise from the ships to the consumer. An example is the paving of streets in the South Harbor area. With the exception of Thirteenth Street, the present access-streets to the piers are in such condition that wear and tear on tires and trucks, coupled with damage to cargo and slow turn-around of trucks, increa-es measurably the cost of truck-operation in the Port and places a correspondingly higher burden on goods landed. However, as it will be some months, very likely, before the bottleneck in needed construction-materials will ease appreciably, and many more before actual improvements in cargo-handling facilities will make themselves felt, the forecast indicated in the last recapitulation in the July column would seem to continue to be valid. It was felt then that the tendency would be for import tonnages to drop below the average line, set at 127,726.80 tons, to about 90,000 tons, but finally levelling off for sometime to come in the vicinity of 120,000 tons. The drop in the June figure to 115,441.63 tons and the scarcely perceptible rise in the July figure to 118,156.98 tons, has already pulled the average line down to 126,576.54 tons, a loss of 1,150.26 tons from our previous average of 127,726.80, which seems to bear out our eventual 120,000 tons for the average month. We hope from time to time to present this recapitulation of tonnages both as a matter of historical importance and as a basis for future planning for the Port. Ocean Shipping BY F. M. GISPEiRT Secretary, Associated Steamship Lines Total cargo exported from the Philippines to all destinations for the first halt of this year only amounted to 702,820 manifest tons, which leave; a long way to go to catch up with pre-war years. Total exports for the corresponding month of 1939, for example, were 1,749,314 tons. The number of sailings during the period under review totaled 385 divided amongst carriers as follo-ws: Sailings Cargo Percentage Inter-Island Shipping D. M. CAMERON Everett Steamship Corporation INTER-ISLAND shipping is slowly reestablishing the regular pattern prevailing pre-war as against the U. S. Maritime Commission operation from August, 1945, to the present. As reported last month, all of the smaller F. S.-type vessels were redelivered early in the year by the U. S. Maritime Commission to the Philippine Shipping Commission and delivered to purchasers, most of whom are new operators. Some of these new operators are combining their schedules to provide frequent service and reduce administrative and terminal costs, but many are operating only one or two vessels which generally proves uneconomical. The long-awaited approval of the U. S. Maritime Commission of bare-boat charters to pre-war operators under the terms of the Philippine Rehabilitation Act, has been handed down, and two companies, Compafnia Maritima and Philippine Steam Navigation Company (Everett Steamship Corporation, operators), have been assigned vcssels. Compafnia Maritima will operate the M.V. Snug Hitch, M.V. Masthead Knot and the S.S. Geo. Tucker. Schedules announced are Cebu and Davao, Mindanao and Tacloban. Everett will operate the M.V. Boatswain Hitch, S.S. Northern Wanderer, S.S. Northern Hawker, S.S. William Nott and S.S. Charles McDonnell. These vessels will be operated on regular weekly or bi-weekly sc-ed-ules to Aparri; to Tacloban and Surigao; to Cebu, Dumaguete, Zamboanga, Cotabato, and Jolo; and to Tobaco and Legaspi. A number of vessels have been delivered under bare-boat charter and it is expected that all assigned will be delivered the end of August. The M.V. Marlinspike Hitch will continue to be operated by Everett for the U. S. Maritime Commission and the M.V. Bowline Knot and S.S. Esther Johnston by the American President Lines until the charter applications of Manila Steamship and De La Rama are approved. The private operation now possible permits the serving of meals to third-class passengers, which was not done under government operation, and certain other facilities normally expected in the trade. While certain of the operators view the high cost of operation with some concern, it is believed that with careful operation, these vessels which are not suited to the trade either in design or size, can be operated at a profit. It is certain that the shipping and traveling public will benefit from the increased facilities and services inaugurated by each operator in order to increase his carryings. American.................. British..................... Canadian.................. Chinese................... D anish.................... Dutch..................... Filipino.................... Honduras.................. Norwegian................. Swedish................... Panamanian.............. French..................... 177 354,049 49 57,479 2 9,100 6 134 24 54,182 20 12,246 28 34,655 4 6,354 44 108,095 27 52,976 3 9,000 1 4,550 50.38 8 18 1 29 02 7.71 1.74 4.93.90 15.38 7.54 1.28.65 Chief commodities shipped during this period as compared with 1939 figures for the same period are as follows, in manifest tons: UNITED STATES 1947 1939 ORIU NT 1947 1939 EUROPE OTHER DESTINATIONS Cigars..................... Desiccated Coconut......... Coconut Oil................ Copra..................... Copra Cake, Meal.......... Hemp (Bales).............. Logs and Lumber (Board feet) Ores....................... Rope...................... Tobacco................... Sugar..................... 3,437 18,369 32,665 6,481 83,342 271,280 92,763 - 25,348 273,199 163,409 143,955 11,511,344 92,039 29,116 473 1,315 439 - - 576,251 13 2,500 7 8,465 478 828 131 342 1,098 131,513 39.506,088 527,545 899 1,908 1947 26 1,881 149,771 14,451 94,608 2,000 43 2,253 1939 134 281 67,504 29,066 332,646 3,456,535 5,441 61 8,022 1947 24,142 780 2,490 218 64 1939 72 998 1,055 35,899 2,746,253 2,118 853 154

September, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL Air Transportation By V. A. BRUSSOLO Vice-President, Philippine Air Lines THE month has witnessed the inauguration of Philippine Air Lines service to the large surplus base of Guiuan, Samar, and traffic along this new route has been reported steady. In general, however, the rainy season has bogged down airline operations, with airports in Dansalan and Jolo temporarily closed. The unusually heavy loads of the summer months have eased down to the bare break-even point for airlines in domestic service. The decreased activity on the Philippine scene, however, has given local airlines the needed time to concentrate on their overseas service. Philippine Air Lines has just been granted. American CAB permit to fly the trans-Pacific route on regular schedules. Meanwhile, the sixth PAL flight to Madrid, Spain, via Calcutta, Karachi, Cairo, and Rome is now under way. This route has been reported heavy in both passenger and air-express traffic. In connetion with the flying of airmail to intermediary points between Manila and San Francisco, Philippine Air Lines has made vigorous representations with the Philippine Department of Foreign Affairs relative to the bilateral air agreement between the Philippines and the United States. By this agreement, any American airline may fly mail to any intermediate point on the trans-Pacific route, whereas Philippine Air Lines or any other airline of Philippine registry may not do so. Meanwhile, the Philippine Government has taken definite steps towards the enhancement of the Philippines as the most important point along Far Eastern air lanes. President Roxas has approved a plan for the creation of an international airport designed to be the largest and most modern in the Far East and comparable to the world's best. The choice of sites is a toss-up between Nichols Field and Makati Airport, both situated on the southern outskirts of Manila. One important factor, which was brought into play during the recent flood in the Manila area, is the fact that Nichols Field, being on low ground, was under water. Moreover, Nichols Field, experts point out, is too close to Manila Bay. An aeronautics commission headed by Mr. Pio Pedrosa is making a close survey of the situation. This commission is further studying the advisability of incorporating the Bureau of Aeronautics under the Department of Public Works and Communications. Gold By CHAS. A. MITKE Consulting Mining Engineer HE gold situation still continues to trouble producers, T sellers, and foreign governments, which are sorely put to it to find sufficient dollars with which to pay for their exports from the United States. On August 11, the U. S. Treasury Department started hearings on proposed amendments to the Gold Reserve Act of 1934. The amendments would (1) limit exportation of gold for industrial, professional, and artistic purposes; (2) prohibit the export of bar gold; (3) prohibit the exportation of gold refined from imported gold-bearing material. Robert Stewart, President of the South American Development Company, who presented the producers' case in the first public hearings in Washington, said that "it is out of all reason to believe that gold is still worth $35 an ounce" despite the fact that "prices and taxes are up". I Remember the Folks I Back Home! SEND THEM CIGARS IN BOXES ATTRACTIVELY WRAPPED IN HOLY PAPER a / /Y O UYOU CAN NOT GO WRONG WITH ALHAMBRA ewl CIGARS... 49 years of leadership in the HIGH GRADE MANILA CIGAR LINE HAVE PROVEN THEIR SUPERIORITY AND OUTSTANDING QUALITY! PRICES: ONE BOX "CORONAS" 25's..........$5.25 ONE BOX "ALCALDES" 50's.........$7.75 Cigars are delivered from our New York office without any extra charge to the recipients. RESERVATIONS ARE NOW ACCEPTED ALHAMBRA CIGAR & CIGARETTE MFG. CO. I 31 TAYUMAN, MANILA r~~~~~~~~~~~~~~~~~~~~~~1 I m —

In order to conform with the request of the International Monetary Fund, the Philippine Government ordered cancellation of all export licenses for gold which it is believed may have been sold at prices above $35 an ounce. A close watch is being kept to see that no shipments find their way to foreign countries. The monetary authorities apparently do not wish to return to the gold standard. At the same time, they refuse to treat gold as a commodity and permit it to find its own level, following the law of supply and demand, as is the case with other commodities. Recently, a block of newly mined gold, said to be onehalf of the July production of Big Wedge, was sold in Manila at $47 an ounce, indicating that some people still have faith in the future of gold. Gold is in great demand in China. As is always the case when circulating currency falls under suspicion, people turn to "hard money" as the only safe thing. John Abbink, Chairman of the National Foreign Trade Council (U.S.) and President of McGraw-Hill International Corporation, a large American publishing house for technical books, in a recent address, entitled "IronCurtain Issues in World Trade", has the following to say about gold: "I have a growing conviction that it is time for the United States to begin serious consideration of the free coinage and circulation of gold. Every trading nation of the world, with the important exception of Russia, wants its currency to have a high, stable value in international markets as a means of stimulating foreign trade. The problem of today is not, as it may have been in the thirties, one of too little money, but rather that of too much 'soft' money. Other currencies are now tied to the dollar as they were once tied to sterling; get the dollar itself back on gold, and a 'hard' money standard will be re-established. "Even with rigid trade and exchange curbs, most other countries have maintained some semblance of stability in value for their currencies only with United States assistance. If and when the well of our credit runs dry, the world-wide devaluation-race we witnessed a decade ago might easily be repeated. "Once the dollar were again coined in gold and circulated internationally, new gold, wherever situated, would add dollar for dollar to the world suipply of United States exchange available for the purchase of commodities here or elsewhere. Additional gold production would be encouraged, with a corresponding increase in dollar resources, and the path toward world trade recovery and currency stabilization be indicated, and the task of International monetary and credit agencies eased. "I am neither competent nor disposed to elaborate the issue here, ektepting to point out that a move so dramatic as the re-establishment of gold would confound and discredit the international apostles of communism overnight. It would divert world thinking from an economic system based on barter-which Russia wants-to a system based on values, which I embrace as my own. Many have expressed surprise and disappointment that Russia has withheld adherence to the International Bank and the Monetary Fund. Why should Russia cooperate in a system she pretends to abhor, so long as we make concession after concession to Soviet economic theories, and permit Moscow's gold meanwhile to trickle into foreign black markets at prices ranging up to $100 per ounce. "Russia vies with the United States for world political leadership with some success, because the science of semantics is not an exact one; words-'democracy' for instance-can be assigned various meanings in translation. She struggles with us for economic supremacy because, in a world of 'soft' currencies, there is no norm, and values are easily distorted; and she is quite content to permit us to cuddle the phrase 'moral leadership', which is an empty one in her lexicon and that of her disciples. "Whether we like it or not, let's face the fact that as a nation we are in the midst of a world struggle, politically, economically, and morally, with communism. We are at a disadvantage, politically, because the meaning of words can be twisted; we must, therefore, emphasize our economic strength to overcome that handicap." In commenting on the above speech, the editor of the journal in which it was re-published, said: "Only a year ago, the opinion of most economists was that the day of reckoning over 'funny money' policies could be delayed by foreign dollar balances and by the World Bank and Fund for some such period as five years. It now appears that in this fast-moving world, the necessity of going through the 'wringer' is much nearer. The gold miner seems due to get an economic benefit." Gold is reported to be selling at $56 an ounce in Chile. Merrill E. Shoup, President of the Golden Cycle Corpora tion, Colorado's largest gold mining and milling company, says statistics prepared for the industry show that all the gold mined in the United States could be moved now at $60 an ounce if a free market for gold prevailed. "Gold is now selling in the free markets of the world at prices ranging upward to $100 an ounce", Shoup said. "Yet, we have only one market for gold produced in the United States, that's the Government, which buys the output of our gold mines at $35 an ounce." Lumber By E. C. VON KAUFFMANN President, Philippine Lumber Producers' Assaciation CS INCE President Roxas established ceiling porices for lumber, effective July 15, 1947, the local market has gradually declined, with the result that retail prices are now far below ceiling prices. Producers are going through a very strenuous period. At the present prices they are barely covering expenses and many are losing on their operation. Costs of operation can not be lowered in the near future. Added to that is the uncertainty of obtaining freight-space to bring the lumber to Manila, which aggravates the producers' situation. Shipping companies are often reluctant in taking on a cargo of lumber. At the Shipowners' Association rates, which are supposed to be in force, taking on a lumber cargo is not a paying proposition for ship operators. Freight rates as high as P40 a thousand board feet are being paid for outof-schedule calls. Small operators who are working on very limited capital find themselves compelled to dump their lumber on this market at any price, and buyers are taking advantage of this situation which directly affects other producers' sales. Producers have in the past addressed several petitions to the President to permit the exportation of lumber. So far only logs and flitches have been allowed to go out, and only a very small percentage is being exported. Now permission to export cut lumber would be welcomed by producers. It would help them substantially in their operation and assure the local market of a continuous supply of Manila grade lumber, as otherwise, if present conditions continue, with local prices remaining below ceiling level, many more would be compelled to shut down and a consequent shortage would follow. Reconstruction is going on at a slow pace and lumber arrivals into Manila average well over 10 million board feet a month. There is an estimated 25 million board feet of lumber in Manila dealers' yards. In order to absorb all the lumber arriving into Manila, an estimated P1,500,000 of new buildings a month would have to be built. The actual rate of constructions is far below this. Copra and Coconut Oil By MA:.UEL IGUAL General Manager, El Dorado Trading Company, Inc. AND KENNETH B. DAY President, Philippine Refining Company July 15 to August 15 AS anticipated in our last report covering the market up to July 15, prices for the period from July 16 to August 15, fluctuated within narrow limits. On July 16, copra sales were reported to Europe at $140 and later at $137.50, but on improved competitive demand, prices firmed up gradually to a high of $145 f.o.b. by the 31st of the month with a good amount of business registered at the various stages of the advance. For some time, it has been noted that European buyers in general, 156

September, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 157 and those countries with large allocations in particular, are becoming better organized in their buying, and, instead of purchasing large quantities in one operation as they did early in the year, the procedure has been to buy not more than one or two parcels of 1,000 tons each at a time, endeavoring to buy at a lower level if selling interest continued. France, with the largest European quota, more or less set the pace and endeavored to bring European equivalents more in line with the prevailing United States quotations. Other European buyers, who came sporadically into the picture, not being so well posted on the general situation and not having as good shipping facilities, paid slightly more than France. The relative strength of the Philippine copra market in July was in the expectation that export copra controls might be lifted, and, while eventually advices were received that these controls were being extended until next year, the expected effect upon prices was delayed because of the sustained demand from all quarters. There were a number of salient factors worth recording, the main ones being: On July 21 it was definitely announced that in spite of the considerable pressure brought to bear to release all controls, it was thought advisable to retain export controls on oils and fats until next year. On July 22 reports were received that the IEFC had set aside the equivalent of 15,000 tons in terms of oil for ex-quota purposes. This meant that 25,000 tons of copra will be available for non-IEFC-member nations, or for member countries whose quotas might have been exhausted. While the quantity involved is relatively small, nevertheless it imparted a rather bullish feeling to sellers. A large volume of business was done to Europe between July 16 and July 31, and, despite the relative weakness of the American market at the beginning of this period, not less than 30,000 tons of copra was sold to European destinations at prices ranging from $137.50 to $145 f.o.b. On July 29 the London stock market broke badly on reports of the rapid dissipation of the American loan, and this affected the American stock and commodity markets. While the stock market recovered materially the following days, the trend of prices between August 1 and 15 was just about the opposite from that of the previous fortnight. During the first days of August, a good volume was sold to India at the equivalent of about $146 f.o.b., but, at the same time small sales were reported daily to France, first at $140, but subsequently at $138 and $137.50. While at this stage ex-quota claimants were reported interested at $145, their demand was so narrow that suppliers who wanted to sell had to be content in accepting $136 and eventually $135 f.o.b., at which level the market closed on the 15th Insofar as the American market was concerned, for the first few days of the second half of July, Pacific Coast buyers held their prices at $140 to $142.50 c.i.f., with very limited business passing. From the 23rd onwards, however, these buyers, convinced that there was sufficient demand from Europe to absorb any surplus offerings, found it necessary to improve their ideas to $145, and later bought at as high as $147.50 and $150 c.i.f., Pacific Coast, which marked the high point for the period. New York buyers were also in the market during this period, and a moderate amount of business was done at a differential of $6 to $6.50 higher than Pacific Coast, which is the approximate relative equivalent. August opened with sellers offering rather heavily at $150 c.i.f., and sales recorded at $147.50. Gradually the market eased off, and at the close of this period, buyers' ideas were quoted at $140, although there was still the possibility of crushers accepting offers at $142.50 c.i.f., Pacific Coast. As for the coconut oil market, volume sales at 11-1/40 ATLANTIC GULF & PACIFIC COMPANY OF MANILA EXECUTIVE & SALES OFFICE 222 REGINA BUILDING TEL. 2-83-64 ENGINEERING DEPT. & SHOPS PUNTA, SANTA ANA TEL. 8-63-32 *0 0 ENGINEERS-CONTRACTORS * o * DISTRIBUTORS FAIRBANKS MORSE & CO. GARDNER DENVER CO. CHAIN BELT CO. ARMCO INTERNATIONAL CORP. PIONEER ENGINEERING WORKS FOR YORK CORPORATION LINCOLN ELECTRIC CO. WALSH REFRACTORIES CORP. MARION POWER SHOVEL CO. I L

j.o.b. tank cars Pacific Coast were recorded on the 16th of July for August/October deliveries, and while, immediately after, buyers withdrew because of weakness in lard, further sales were later recorded at 11-1/'4. Toward the end of July, there was a slight improvement, doubtless as a result of strength in copra, and sales were reported at 11 -1/20 f.o.b. cars Pacific Coast for forward positions, and 11-3/4^ for nearby. By the end of July, oil buyers lost interest for deliveries October forward, and at the beginning of August, on reports that the new crop of cottonseed oil was offered at a discount of 2 per pound for forward and 30 for far for,ward deliveries, as contrasted with the current prevailing prices for old crop, large coconut-oil buyers more or less withdrew and the market gradually declined. After registering small sales at 11-1/80, oil buyers a g a i n withdrew, and sellers, realizing probable difficulties on the part of the copra trade in continuing to sell in volume to Europe, which would force sellers to turn to America for the disposition of their supplies, lowered their prices in anticipation of copra selling-pressure, and after moderate sales at 11, this period closed with buyers bidding 10-1/20, although no sales were reported at this price. It is worthy of record that some 200 tons of oil were sold to Europe in drums during the first half of August, at a price of 15-1/20 per pound f.o.b. vessel. Copra exports during July, while much better than during June, nevertheless can be considered as disappointing. Total exports were given as 57,000 long tons, of which 26,750 went to United States destinations, 1000 to Canada, 23,400 to Europe, 4,000 to Japan, and 1,800 tons to North Africa. In Manila, the local copra market was all but unchanged throughout the period at very nearly P25 per 100 kilos. Copra was in better supply, and buyers with adequate stocks were not forced to push the market. Coconut oil found buying resistance at 60 centavos per kilo, and gradually declined to 55 centavos with sellers more anxious than buyers There was a certain amount of sporadic interest in copra cake for Europe, with offerings working out at $68 to $70 per ton f.o.b. for expeller cake With the heavy copra season in full swing, it was possible to revise once more copra prospects for the coming months, which indicated a somewhat larger exportable surplus than previously estimated. It was anticipated that additional IEFC allocations and equalizations would soon be issued to keep pace with production. It was, however, becoming more and more evident that the European financial situation was heading toward a crisis, which, unless avoided, must result in curtailed copra-buying by European countries whose dollar balances were fast dwindling. In view of the ample supplies offering, such a situation would, of course, result in increased dependence of Philippine copra on the already well supplied and unenthusiastic American market, and, barring the unexpected, this should point to an easier situation. Desiccated Coconut By HOWARD R. HICK President and General Manager Peter Paul Philippine Corporation T HE following report covers the calendar month of July, 1947: During the period, the supply of raw material was plentiful and prices for nuts were directly in line with equivalent copra quotations. The great demand for desiccated coconut in the United States continues to stimulate production in the Philippines, to the extent that several of the present producers are planning expansion of their manufacturing facilities. Also, several local business interests are surveying the possibilities of entering this field of business. Franklin Baker Company is putting the finishing touches to their factory buildings. The installation of the new power-equipment, when completed, will soon put the Company in a position to equal its pre-war capacity. Blue Bar Coconut Products Company has also increased its facilities so that, soon, it will be nearing pre-war capacity. It is interesting to note that post-war plans of practically all desiccated coconut manufacturers include many more labor-saving devices than existed pre-war. This is due to the need to minimize manufacturing costs, and came at a time, when, because of rebuilding or rehabilitation, it was comparatively easy to make the changes without inconvenience to production or increasing capital-costs excessively. SHIPPING STATISTICS OF MANUFACTURERS OF DESICCATED COCONUT FOR MONTH OF JULY Blue Bar Coconut Products Co.... Canlubang Sugar Estate......... Cooperative Coconut Products... Franklin Baker Co.............. Marsman and Company, Inc..... Peter Paul, Philippine Corp....... Philippine Desiccated Co......... Red V Coconut Products........ Sun-Ripe Coconut Products...... United Coconut Products, Inc.... 1,220,200 lbs. Shipped by Franklin Baker Co. Shipped by United Coconut Prod. 816,000 Ibs. 270,100 Ibs. 1,174,800 lbs. Shipped by Blue Bar Coco. Prod. 494,020 Ibs. 959,000 lbs. 50,000 lbs. Manila Hemp By MURRAY COOK International Harvester Company of the Philippines DURING July, the Manila hemp market started out on a firm note in Davao-opening at about P 40 for DA/J1, and slowly advancing until some business was done at P45. Toward the latter part of the month, the lack of demand from United States buyers created a cautious attitude on the part of Philippine exporters. Prices slowly declined, and closed at about P41 per picul loose for DA/J1. The non-Davao grades followed.a similar pattern, but closed on a firmer note. Non-Davao J1 was still in fair demand by local exporters, at P34 to P35 per picul loose. The usual export figures from the Department of Agriculture and Commerce Fiber Inspection Service for June were not available last month in time for the press. These figures are now on hand, and show a total of 68,754 bales of all grades exported from the Philippines during that month. This compares with the production figure of 74,677 bales. Production and export figures have just about been balancing, and indicate little or no accumulation of stocks in the country. Current production is being turned over promptly. In a previous report, attention was called to the shift to lower grades of hemp by producers, at the sacrifice of the higher grades. Through the courtesy of the Fiber Inspection Service it is possible to make the following startling comparisons: C J S J S S., K L T< PRODUCTION OF NON-DAVAO HEMP Bales of 126.5 kilos net Fcbuary -1947 Junh - MD-........ 1,498 63' E-........ 2,333 84( F-........ 6,443 1,84' G-........ 2,361 6,13! H-........ 721 1,18 I-........ 6,890 2,57' 1-........ 6,090 6,35' 2-........ 4,218 2,82( 3-........ 1,146 1,07' 2-......... 1,709 7,60':-......... 823 3,701 1-........ 242 47 1947 0 7 5 3 7 ) 5 7 7 otal........ 34,474 35,253 bales 158

September, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL In the Davao area, Grade G replaced J1 as the leading grade during June. 9715 bales of G were produced against 8882 bales of J1. The export figures for July are not yet available. Production figures for July as furnished by the Fiber Inspection Service show a total of 71,871 bales inspected, approved, and certified for the month. Of this amount, Davao continues to lead with a total of 31,434 bales. This brings the total production from January to July, 1947, to 453,455 bales-a remarkable post-war recovery. The quantity of F and I Davao increased percentagewise, while J2 and K Davao have shown a fairly large decline. Sugar By G. G. GORDON Secretary- Treasurer, Philippine Sugar Association HE Philippine Sugar Administration has set September 1, 1947, as the commencement-date of the 1947-48 crop-year. The Philippine Sugar Association and the Confederation of Planters' Associations, supported by the Philippine Sugar Administration, have jointly recommended that the Government should allocate 100,000 short tons as the domestic consumption-quota for 1947-48, such to be released for sale at the rate of 25% weekly of all sugar milled by all the centrals until such time as the total quota of 100,000 tons has been reached, deducting from this figure any amount of sugar to be imported by the Government during the quota-year. In view of the difficult circumstances under which the sugar industry is now operating, it has been reliably reported that the Government has decided to waive the collection of the progressive taxes for the 1941-42 and 1946-47 crops and has also authorized the collection of the basic tax only on the sugar actually marketed from the 1941-42 crop. The first shipment of fertilizer for the 1948-49 crop, consisting of 2,000 metric tons of anmonium sulphate, is expected to arrive on the SS Mangalore on or before September 10, 1947. The NATRA, which has been designated to take care of the distribution cf the fertilizer, has allocated 1,500 metric tcns for the centrals in the Visayas and 500 metric tons for those in Luzon. The New York Sugar Exchange, after being closed for five years, reopened on July 1, 1947. Quotations during August were as follows: High Low Close M ay................................... 5.13 4.78 4.90 July................................... 5.10 4.75 4.86 September............................. 5.09 4.75 4.85 Total sales for the period August 5 to 29 amounted to 36,500 tons. At the close of the month the exchange was narrow, without particular feature, but wilk a F(mewx;hat steadier undertone, closing prices teing up 8 points over the previous week-end. These quotations were made under contract No. 5, which calls for the delivery of Cuban sugar in licensed warehouse in New York in bond. To obtain the equivalent of exchange value of Philippine sugar, these figures should be adjusted by adding the amount of the Cuban duty, which is presently 75 per 100 lbs. j COMPLETE LINE OF AGRICULTURAL MACHINERY AND EQUIPMENT FOR MODERN FARMING, RICE MILLS, RICE THRESHERS, ENGINES, PLOWS, HARROWS, TRACTORS, CORN GRINDERS, CORN SHELLERS. INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMIILAS, MANILA CEBU BACOLOD DAVAO I INTERNATIONAL Trucks I _____________________t~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

160 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1947 Tobacco By the CONDE DE CHURRUCA Companiia General de Tabacos de Filipinas OBACCO is one of the few products of the Philippines which could recover quickly from the war's ravages and return to its former standing if the money situation in the foreign markets were stabilized. It is true that the production of tobacco has decreased considerably since the early thirties and that up to the last crop it has been falling steadily; the 1947 yield in the Cagayan Valley of less than 5 million kilos may be compared with the 12 to 15 million that used to be the average production in that region. The same is true of the Pangasinan, Union, and Visayan production, the principal cause for this reduction being that farmers have been able to grow other crops more profitably, with much less work. Bad weather has at times been another factor, but only a secondary one. Prices have been going up steadily, and the farmers in the Cagayan Valley are now getting from P25 to P30 a quintal (46 kilos), against P17 to P20 which was last year's price. There is a demand for tobacco for the local factories, as practically all are producing without adequate stocks, and all need to build them up so as to be able in the near future to prepare the blends which are so necessary for their products. Foreign markets are very much interested in tobacco, the biggest buyer being Spain which in 1946 and 1947 bought over 5 million kilos of old and new crops. France and French Morocco are also active buyers, but their lack of dollars is greater than that of Spain, so they can not buy the quantities of tobacco they need. One of the most dangerous competitors of our tobacco in Spain are the Brazilian and Santo Domingo tobaccos which were substituted for the Philippine leaf during the Japanese occupation. These tobaccos may be bought in many instances in sterling instead of dollars, which of course, is a great attraction for the Spanish buyers, as pounds are plentiful while the dollar is scarce. The buying season is ending, and the highest bidders have been the Chinese merchants who, due to their peculiar and personal way of buying, their low overhead expenses, and their speculative instinct, have been able to obtain a big share of the crop, especially in the Pangasinan and Union provinces where they copped more than 80% of the production. Farmers are satisfied because the prices are high, and this together with a good crop of rice and corn, which assures their living needs, and less money to be obtained from other sources, will probably make for the production of a substantially bigger crop next year. Automobiles and Trucks By J. L. MANNING Manila Trading and Supply Company BEST available figures indicate that the total number of motor vehicles registered and operating on the roads in the Philippines as of June 30, 1947, is 60,210. This figure represents a total of 21,966 cars and 38,244 trucks. Although pre-war figures are not available, it is estimated that the total number of cars and trucks registered during the year 1941 up to December, 1941, was 56,000. The figures, either pre-war or post-war, do not include United States Army equipment. It should be borne in mind, however, that a large portion of present registrations I DISTINCTIVE PRINTING...... Our advantages of superior workmanship, facilities and experience are evident in the numerous printing jobs we have done for business leaders. THE SEAL C OF QUALITY McCULLOUGH PRINTING COMPANY DIVISION OF PHILIPPINE EDUCATION COMPANY, INCORPORATED PRINTERS * ENGRAVERS * STATIONERS 1104 CASTILLEJOS QUIAPO, MANILA 114 A* TELEPHONE 2-94-76

September, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 161 cover surplus Army and Navy equipment which will, no doubt, eventually be replaced by new current models of cars and trucks. Because of the extreme shortage here of transportation facilities as a result of the war, American manufacturers and the United States Government have permitted a large quantity of export of automobiles and trucks to the Philippines in spite of great shortages in the United States. Approximately 5,000 vehicles a year were exported to the Philippines on an average previous to the war, and it is probable that beginning in 1948 a similar quantity will be absorbed on this market, representing a slight increase each year in the net total of registrations and the bulk being sold to replace vehicles going off the market. Motor transportation facilities in the Philippines have been more than replaced if the year 1941 can be.taken as no mal. Food Products By C. G. HERDMAN Marsman Trading Corporation LOCAL market on imported food products has improved considerably during the past month. The overstocks on flour previously existing have cleared up to the point where dealers in general are again placing orders for early shipment, and in fact have placed orders to the full extent of the export allotment granted by the United States Government for this territory. The other main item of imported foodstuffs, canned milk, is likewise showing improvement. There are still comparatively large stocks of the lesser known brands which continue to be sold at prices ranging from 25% to 50% below landed cost. Stocks of the better known brands, however, have cleared up to a great extent, and prices have firmed to the point where importers can make a nominal profit. This is particularly true of the small-sized tins of evaporated milk on which there is an actual shortage in the market. The same condition exists on sweetened condensed milk. There are very large stocks of little-known brands which continue to move only at prices well below cost, but on the other hand the best-known brand is selling freely at prices which yield distributors a very handsome profit. Powdered milk continues to move very slowly and overstocks are quite large. Stocks of canned fish which were in considerable excess for the last many months have now largely entered into consumption due to the increased demand existing at this time of the year when fresh fish is in scarce supply. The sardine catch on the California coast is reported as being very disappointing in quantity, and according to reports from California, the pack this year is again expected to be far below normal and prospects are that present high prices will continue and possibly increase. Also, it is quite probable that it will not be possible to secure sufficient supplies to cover normal requirements of this market for the coming year. There have been fair-sized importations of canned meats, but stocks are still insufficient to fill the local demand. Due probably to increased costs of feed in the United States, the cost of canned meats continues to increase and supplies are limited in volume. Canned fruits and vegetables in general are still in excess of local requirements and continue to be sold at a loss by importers, most of whom are forcing sales hoping to dispose of present stocks before the new pack from California becomes available, as all indications are that there will be a considerable exportable surplus of this commodity from the United States this fall and strong possibility of falling prices. I I Send in your reservations now for the RECEPTION extended by the Chamber to HIS EXCELLENCY, THE AMERICAN AMBASSADOR at the Army and Navy Club Wednesday, September 24 Six o'clock Members of the Chamber are urged to extend invitations to the Americans on their staffs and to their American friends so as to make this Reception truly representative of the local American community. P A I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~,. *:. *. * S~~~~~~~~ INTERIOR FINISH FLOOR ENAMEL FU LL-eR The west's most popular finish for interior walls and woodwork. Semi-lustrous. Wash. able. In pastel tints. FU LL-eR p st Fullerwear Floor Enamel stands hard wear. Gives a porce. lain-like surface. Easy to wash. Quick-drying.{ INTERIOR r ~29. VARNISHw STOVE ENAMEL FetMU LLG c WiZ i IP Decoret gives a ha rd Speedite puts a hard, glossy finish to stoves tough, glossy finish on and pipes. Resistsheat. furniture, floors, wood- aee Doesn't burn or ^y4'f: work, etc. Stands hard smoke Easily applied. wear. Quick-drying.. Ea Hiotpoint radios make tuning in Over KZRH, let's make it a date real nice treat on "Spell to Win" I Every Sunday nigst at ei-"C. fnat~

162 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1947 On miscellaneous imported food items the market continues to be heavily overstocked. Fresh fruits and vegetables have been arriving in very good quantities from the United States, and orders placed to arrive during the next couple of months indicate that there will be no shortage locally of this item. Costs as compared with other foodstuffs from the United States are very reasonable, and they are being retailed in Manila at comparatively low prices to consumers. It seems probable that present improvement in the local market will steadily increase for the next few months, and reports indicate that supplies in practically all foods from the United States will be available in larger quantities than was previously the case. Textiles By JAMES TRAYNOR T HE improvement noted during June in the local textile market continued throughout July. The off-take during July was good and estimates indicate sales were far greater than arrivals. Some large importers report their arrivals during July were sold on or before arrival. Importers' stocks are low and consist mainly of qualities that are not in great demand or "seasonal" qualities which they expect to sell later on in the year. Arrivals during July from the United States were estimated to be about 5% less than in June, which probably makes July's arrivals the smallest this year. The New York market held during July with some increases noted. New orders with American mills during July were large and would have been even larger if mills could have accepted more business for shipment this year. American mills have sold their production well into the first quarter of 1948 and local importers generally refuse to commit themselves so far ahead. Business was placed with Shanghai mills because of the high value of the peso as against the Chinese dollar. The volume of this business is hard to estimate but is considered to be large. Legislation and Court Decisions By ROBERT JANDA Ross, Selph, Carrascoso & Janda THE Congress of the Philippines has not been in session during the past month and there is no new legislation to require comment. There have been no published decisions of the Supreme Court or the Court of Appeals of particular interest to the business community. Attention is invited to the following executive and administrative Orders and acts: Executive Order No. 58, designating the National Development Company as the agency to accept bids and to enter into contracts with successful bidders for the collection of scrap iron, steel, copper, etc. Executive Order No. 59, extending tle period of registration and deposit of emergency currency under the provisions of Republic Act No. 22. Executive Order No. 60, designating the Philippine National Bank as fiscal agent of the Republic of the Philippines in the United States. Executive Order No. 62, regulating rentals for houses and lots of residential buildings. This order declares any rents other than for commercial or industrial purposes, except rooms of a hotel or of lots for construction of residential buildings, to be unlawful if in excess of 12% per annum of the assessed valued of the property. Written leases of property assessed at over P50,000 which have been reported to the Office of the Mayor under existing law, are excluded from the operation of the order. u qr C he Sign of Mobilgas w (,Jr i e n d I y Service * MOB ILGAS and MOBILOIL PREFERRED BY MOTORISTS EVEvRYWHERE STANDARD-VACUUM OIL COMPANY PHILIPPINES

S:~Ptember, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 163 Executive Order No. 65 permitting export of logs under certain conditions. Executive Order No. 66 fixing ceiling prices on lumber. Executive Order No. 81 creating the Central Bank Council to draft legislation and lay the ground-work necessary to the establishment of a Central Bank. Administrative Order No. 38, setting up a Real Property Board to attend to the various problems involving private real estate arising from the planning of the City of Manila by the National Urban Planning Commission. Commerce Administrative Order No. 2, prescribing regulations governing the affixing of price-tags or labels to all articles of commerce offered for sale. Department of Justice Circular No. 128 directs Registers of deeds to register (1) all instruments by which private real property is mortgaged in favor of any individual or entity, regardless of citizenship, where the loan does not exceed five years renewable for another five; and (2) all deeds of private residential, commercial, industrial or other urban land to an alien, who is not an enemy national (holding such1 lands are not "pri ate agricultural land" within the meaning of S ction 5, Article XIII of the Constitution); and (3) during the effectivity of the U.S.Philippine commercial treaty, and pursuant to the Parity Amendment, to treat American citizens and corporations owned or controlled by them, as having the same rights to acquire all classes of lands as Philippine citizens and corporations controlled by them. The Proposed Rules of Practice for the Philippine Patent office are being circulated for comment. Philippine Government Corporations From an Official Source THE Reorganization Committee, which has been discussing various proposals with the Cabinet, has recommended that the Philippine Relief and ltehabilitation Administration, the National Trading Corporation, and the purchasing department of the National Cooperatives Administration be fused and reorganized under the name, "The Philippine Relief and Trade Rehabilitation Administration". The Cabinet at first was against the inclusion of relief functions in the proposed new organization, but it was pointed out that the United Nations Relief and Rehabilitation Administration (UNRRA) had designated the PRRA to handle relief work in the Philippines and was insisting that PRRA continue to handle this until the UNRRA terminates its activities here. The Metropolitan Transportation Company (Metran), organized shortly after liberation to take care of immediate transporation needs in Manila and operating under the Department of Public Works, has been recommended transferred to the Manila Railroad. METRAN is showing an operation loss, but those who are in favor of continuing it uder the Public Works Department claim that the problem is principally one of adjustment. However, though competition in the transportation field is keener now than it was, METRAN is unable to retrench by laying off employees, one of its specified functions being to give jobs to the unemployed. Labor From an Official Source HE proposal of the Reorganization Committee to create a conciliation commission to smooth out differences between capital and labor and avert strikes,was received by the Cabinet without enthusiasm. President Roxas himself pointed out that a similar func tion was already being exercised by the existing Court of Industrial Relations. Instead, the Cabinet has proposed a board of mediation, the mediators to be selected from among men of high repute to act in specific cases as they arose. The mediators I I CONNELL BROS. COMPANY (PHILIPPINES) MANILA * CEBU * ILOILO GENERAL MERCHANTS Cable Address: CONNELL SAN FRAN CISCO LOS ANGELES NEW YORK SHANGHAI HONGKONG SINGAPORE TIENTSIN PENANG SAIGON BAN GKOK BOMBAY VANCOUVER FOOD PRODUCTS * HARDWARE BUILDING MATERIALS * PAINTS LEATHER, ETC. I TOPS IN COMMERCIAL PHOTOGRAPH _., - r —.SiS ^ T 7^^^ I Manila RailroadBridge (SEE US FOR ANYTHING PHOTOGRAPHIC) / -466 DASMARINAS M A NI LA Official Photographers for AMERICAN CHAMBER OF COMMERCE JOURNAL

164 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1947 COST OF LIVING INDEX OF A WAGE EARNER'S FAMILY IN MANILA BY MONTH, 1945 TO MAY, 1947 Prepared by the Bureau of the Census and Statistics 1941 =100 I I, 1945 M arch........... April............ May............. June............ July............. August.......... September....... October.......... November........ December....... 1946 January.......... February......... March........... April............ May............. June............. July............. August.......... September....... October........ November........ December........ 19471 January.......... February......... March........... April............ May............. June............ July............ August......... All Items 559.8 598.8 689.7 745.8 751.5 724.7 708.4 735.3 747.8 669.4 603.4 547.2 525.9 556.2 545.1 538.7 552.7 477.9 477.9 487.4 484.8 461.9 394.1 389.5 378.6 360.3 354.2 358.6 364.1 358.0 Food (59.15)2 635.5 702.1 799.4 872.7 886.9 848.5 852.4 937.8 955.8 852.7 759.2 656.3 631.0 684.1 675.6 666.4 704.3 590.0 591.3 587.2 607.8 570.8 468.2 454.9 440.1 413.3 404.4 414.4 426.8 419.8 House Rent (8.43)2 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 Clothing (0.62)2 1695.2 1611.9 2041.5 1860.8 1664.2 1484.5 1034.0 1045.1 1017.0 1030.3 984.0 940.3 940.1 910.3 762.5 737.9 598.9 384.7 378.7 382.7 406.4 371.9 381.9 356.3 295.2 269.2 250.9 236.8 217.7 210.2 Fuel, Ligh t and Water (13.94)2 237.1 254.3 380.7 410.8 393.4 397.6 367.7 466.1 480.2 401.9 363.8 369.5 340.4 345.5 342.3 343.3 341.3 320.9 314.5 405.8 346.5 344.7 326.2 344.8 334.7 328.3 325.4 316.6 309.3 292.0 Miscella neous (17.86)2 674.4 661.4 734.8 788.7 794.1 774.3 709.1 499 5 499.9 463.0 434.8 460.7 445.2 435.9 409.6 404.2 364.6 346.3 347.2 342.7 305.2 302.1 282.5 281.4 279.4 271.6 269.4 268.6 269.9 269.1 would sit with an official of the Department of Labor, who would preside, and there would also be a permanent staff which would conduct the necessary investigations; this staff would also regularly inspect the books of labor organization. Other Chambers of Commerce Chamber of Commerce of the Philippines HE annual general meeting of this year was the longest in the history of the Chamber. It started at 10:20 a.m. and lasted until 4:30 p.m. But it did not end there. It was merely adjourned, to be continued on another day. The continuation meeting was held August 17. At the first meeting, new directors were elected. Under the by-laws, four directors were to be elected, in lieu of the four who served for three years and who could not be reelected until the lapse of another year, but inasmuch as there were three vacancies created by the death of Mr. Gregorio Anonas, the resignation of Mr. Miguel Cuaderno, upon his elevation to the Cabinet as Secretary of Finance, and the prolonged absence of Mr. Manuel Elizalde, sick in the United States, seven directors were elected. An attempt was made to suspend the statutory provision against the immediate reelection of the four outgoing directors, but it was vigorously opposed, so as to pave the way for other members to be elected to the Board. Likewise, an attempt was made to prevent the use of proxies for election, but this was defeated on the ground that it would be illegal as against the Corporation Law. Out of the hotly contested election, the following were 1 Weekly average only 2 Weights I _ __ HALLICRAFTERS THE RADIO MAN'S RADIO S CONTINUOUS FREQUENCY COVERAGE FROM 540 kc. TO 110 mc. AM * FM INCLUDING THIRTY-FOUR (34) DISTINCT FEATURES -I Let us demonstrate WHY this receiver is TOPS for the U. S. Army and Navy-Aitlines, and Broadcasting Stations, because of High Standard Performance and Versatility whether from "The Canyons of Manhattan" or the "Mountains of the Moon" HALLICRAFTERS —DISTRIB UTORS F. H. STEVENS & CO. El Hogar Filipino Bldg. Manila PHILIPPINE EDUCATION CO. 1104 Castillejos Manila - ----- -- - --- -— ~- — I-` -~~ -~'- ~ -'L — --- - ~ — I ----__ _ _ mm _ m_

September, 1947 AMERrCAN CH:AMBER OF -COMMERCE JOURNAL 165 September,~~~~~~ ~ ~ ~ ~ 197 ME I A CHME F OMEC ORA6 elected: Cornelio Balmaceda, Vicente Sabalvaro, Ramon J. Araneta, Eugenio Padua, (for three years), Castor P. Cruz, Jaime Hernandez, and Maximo C. Hernandez (for two years). The meeting gave a vote of confidence to President Gil J. Puyat, in the United States as representative of the Chamber, a vote of thanks to the outgoing directors for the interest they have shown in the different activities of the Chamber during their incumbency, and also a vote of thanks to Acting President Dr. Salvador Araneta for the able manner he had steered discussions, for his fairness, calmness, and satisfactory way in which he had conducted the rather tempestuous general meeting. An important resolution was adopted at the initiative of President Araneta. To impress on the visiting American publishers and editors, who on a tour of the Far East as guests of the War Department visited Manila for about four days early this month, our appreciation of the policy followed by some American manufacturers of placing the development of their business in the Philippines in the hands of Filipino representatives and distributors, so that when they go back to the United States they will be talking of this appreciation, thereby convincing other manufacturers in the United States who have no agencies here to designate Filipino representatives. Dr. Araneta suggested that a supplement with cooperative advertisement to be sponsored by Filipino importers who have agencies here and agencies of insurance companies, be published in several newspapers upon the arrival of these Amerrican publishers. This was done and several leading dailies carried the supplement. The continuation of the general meeting, held the 17th of August approved the report of activities of the Board for the period 1946-1947 (August, 1946, to July, 1947), took up several amendments to the by-laws, accepted a suggestion that a sign of membership to be displayed by members in their place of business or office be adopted, so that members may know each other-details to be decided by the new Board,-and of a symbolic pin for members; entertained the suggestion that a canal from Laguna de Bay to the Pacific Ocean be constructed as a solution to the recurrent floods and an effective aid to our external trade, and recommended to the Board to make representations with the President of the Philippines for the creation of an Appellate Board of Taxes. The organization of the CIDECO, Commercial and Industrial Development Corporation, the successor of the CCP Syndicate, by President Gil J. Puyat and Directors Lino Gutierrez, Ramon J. Araneta, Aurelio Periquet, Mateo F. Occefia, and Cornelio Balmaceda, the group in the Syndicate pushing through the project, was thrown into the lap of the Chamber proper, by the resolution that the CIDECO, in process of organization, be organized under the auspices of the Chamber, and that a Committee be created composed of 15 members, including the above mentioned original organizers, to study the corporation papers, by-laws, and other pertinent papers. The additional members voted upon are Vicente Sabalvaro, Macario Calayag, Francisco Genato, P. Cadsawan, Teodoro Briones, Jose Palarca, Cirilo Mapa, Antonio Sanchez, and Lucio Ildefonso. At the request of the Department of Foreign Affairs, the Chamber submitted five names of businessmen who were willing to join the Philippine Trade Mission to Japan. The names recommended by the Board were the following: Lino Gutierrez, Ramon Pagaduan of L. R. Aguinaldo, Inc., Juan C. Alabastro, President of the Filipino Hardware Association, S. Lorenzana of Lorenzana & Sons, Inc., and Carlos Fernandez, for lumber. All were selected, except Mr. Alabastro, to give way to Dr. Gregorio Lim of DE LA RAMA LINES EXPRESS SERVICES TO AND FROM BOTH COASTS OF ITHE UNITED STATES INTERISLAND SERVICES THROUGHOUT THE PHILIPPINE ISLANDS 0 THE DE LA RAMA STEAMSHIP CO., INC. SHIPOWNERS Manila Branches and Agencies Throughout the World I Keep the highlights of your family life # on (ine-Kodak Film * Don't miss a single ' l e chapter of that thrilling home movie diary. See your Kodak Dealer today for Cine - Kodak Film. KODAK PHILIPPINES, LTD. 104-13th St., Port Area, Manila I I I -

166 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1947 Kayumanggi Enterprises. With Dr. Mabbun, SecretaryTreasurer of the National Cooperatives Administration, the party emplaned for Tokyo minus Mr. Gutierrez, who was substituted by Mr. Enrique Santamaria, representing the Roberto Laperal business enterprises. The Board endorsed the suggestion of the San Francisco Chamber of Commerce that the Consular Invoice and Separate Certificate of Origin Forms be consolidated into one document. There is nothing to lose and everything to gain. It would result in a great deal of saving of clerical and stenographic work and avoid duplication of information now required by the preparation of two separate documents, and it would be very helpful in the speeding up of trade between the two countries. Both the Department of Foreign Affairs and the Customs Service were petitioned to this effect. The different Committees of the Chamber are chairmaned by Directors. The line-up follows: Agriculture and Natural Resources-Mr. Mariano Salazar, Chairman; Banking and Financial Institutions-Mr. Castor P. Cruz; Commerce-Mr. Lino Gutierrez, Chairman; Committee for Practical Cooperative Between Businessmen-Mr. Ramon J. Araneta, Chairman; Industry and ManufactureMr. Vicente Sabalvaro, Chairman; Labor-Mr. Mariano Salazar, Chairman; Taxation and Legislation-Mr. Jaime Hernandez, Chairman; Public Utilities-Mr. Eugenio Padua, Chairman; Ways and Means-Mr. Maximo C. Hernandez, Chairman; Publicity and Organization of Provincial Chapters-Mr. Cornelio Balmaceda, Chairman. The Foreign Trade Committee and a Special Committee on the Joint Philippine-American Finance Mission Report is headed by Acting President S. Araneta. A Special Committee to discuss and study provisions that should be included in treaties of Commerce and Navigation the Philippines will have to conclude with foreign countries in the future, was created. This important Committee is headed by Dean Conrado Benitez, with Messrs. Eliseo Hervas of the De la Rama Steamship Company, Attorney Macario Calayag, Aurelio Montinola, of Amon Trading Corporation, Cornelio Balmaceda of C. J. Gonzales & Co., Jose P. Fernandez, President, Nasipit Lumber Co., Vice-President, Compafiia Maritima, and Jose M. Cajucom, representing the Elizalde enterprises. By PEDRO J. OCAMPO, Secre tary Manila Chamber of Commerce HE Manila Chamber of Commerce reassembled on 13th of June, 1945, for the first time after liberation. The following member firms were represented: Messrs. Dy Buncio & Co.; Hanson, Orth & Stevenson; Ed. Keller & Co.; Ker & Co.; Kuenzle & Streiff; Manila Wine Merchants, Inc.; Menzi & Co.; and Wise & Co., Inc. The Chamber was then reorganized on a strict "austerity" basis, and has so continued up to date. We have at present 52 member firms. Now that business has settled down to where members can see, with some degree of assurance, where they are going, it is hoped to get the Manila Chamber of Commerce on to a footing comparable with that on which it stood up to December, 1941. The Chamber is at present in correspondence with Mr. T. H. Harrington, who so ably acted as permanent Secretary before the war, and very much hopes that he will be able again to take up that position in the course of the next few months. S. CRAWFURD SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and 4EXCLUSIVE 1 I)ISTRIBUTORS OF: SUGECO Highest Purity OXYGEN and ACETYLENE Gases "N^ATIC~AL" CARBIDE WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS OF "SUPERFLA ME" BOTTLED GAS and "TAPPAN" GAS STOVES with complete Installation and Service Facilities I \ I

September, 1947 AMERICA.N CFAMBER OF COMMERCE JOURNAL 167 - September, 1947 AMERICAN CF AMBER OF COMMERCE JOURNAL 167 --- — - Philippine Chinese General Chamber of Commerce A MONG the ten thousand Chinese nationals in the Philippines killed by the Japanese during the occupation were officials of the Philippine Chinese General Chamber of Commerce. The Chamber itself suffered heavily in leaders lost and property destroyed as a result of war. Consequently, the rehabilitation of the association has been slow. Shortly after the occupation of Manila by the enemy in January, 1942, almost all officials and board members were arrested along with the entire staff of the Chinese Consulate General. The four Chamber officials who died either during their imprisonment, or as a result of their incarceration, were Cham Samco, head of the big hardware firm bearing his name, P. P. Gocheco, Wong Ning, and Ng Su Tam. Eleven other members of the boards and committees were executed by the Japanese Kempei-tai. They were Tan Bok Teng, J. Lidio, Ng Lian Poh, Chua Pai Kiong, So Chai An, Sy Kao Kee, Lee Hok Sin, and Yu E. Tong. Don Alfonso Z. SyCip, President of the Chamber, was himself imprisoned. I was able to escape and remain in hiding until the return of the Americans. Reason for the action of the Japanese was the active support which the Chamber had given to Generalissimo Chiang Kai-shek in the war against the Nipponese invaders from the time of the invasion of China in July, 1937, to the outbreak of the Pacific war on December 8, 1941, when no more aid could be sent abroad. In furniture, office equipment and other office supplies the Philippine Chinese General Chamber of Commerce incurred losses in the amount of around P50,000. Among the supplies lost were 24 typewriting machines, two mimeograph machines, a valuable set of old lacquer dating back from the Ching dynasty, together with the embroidered covers, and a 15-year collection of Chinese exhibits of various industrial products. A war-loss survey conducted by this Chamber reveals that in Manila the Chinese suffered the loss of P123,414,000 and in the provinces P97,358,000, making a total loss of P220,772,000. The Chinese are not entitled to the wardamage payments which the Filipinos and Americans are getting from America. During the entire occupation, the Chamber had no activity whatsoever, but five days after the entry of the liberation forces in Manila on February 3, 1945, leaders then in the city started to operate the organization. Dy Huan Chay served as acting president. He was ably assisted by Sy En and George Dee Se Kiat. Four days after, on February 12, I came down to Manila from the mountains and took an active part in the various emergency activities of the Chamber. Disregarding the dangers arising from the continuous fighting in some sections of the capital, the Chamber extended invaluable services to the forces engaged in the task of recapturing the city from the enemy. The officials and rrnembers assisted in restoring peace and order, particularly in the Chinese section of the metropolis. They helped in recruiting laborers needed by the liberation forces and did many other things, besides, in alleviating human misery during those critical days and weeks. Then on July 31, 1945, Chamber President Alfonso SyCip returned to Manila from Fuga Island where he and members of his family had been sensationally rescued by American troops. He immediately took over active leader ship of the Chamber. It is a recognized fact the Philippine Chinese General Chamber of Commerce helped in no small measure in the prosecution of the war. During the period of the occupation, money, food, clothing, and other supplies needed by the underground forces were contributed by Chamber I INHELDER I N C O R P O R A T ED Dealers in: * PHARMACEUTICAL SUPPLIES * INSTRUMENTS * GROCERIES * TEXTILES 5TH FLOOR TRADE & COMMERCE BLDG. TEL. 2-65-48 I The IBM ELECTRIC TYPEWRITER..... more than 15 CARBON COPIES with Feather Light Touch BETTER Quality-more attractive copy GREATER Ease-less fatigue, more accuracy MORE Speed-greater output, less time ASK FOR A DEMONSTRATION INTERNATIONAL BUSINESS MACHINES CORPORATION OF THE PHILIPPINES 206 REGINA BLDG.-TEL. 2-65-43 MANILA I

168 AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1947 * LUZON STEVEDORING COMPANY, INC. MANILA I officials and members, and no attempt is being made to ask for repayment. After the liberation, the organization volunteered its services to the CIC in apprehending Formosans brought over by the Japanese who were then at large. It also undertook to protect innocent Chinese from unscrupulous characters and bands. The Chinese C- amber of Commerce urged its members to increase the supply of much-needed consumer goods by importing them from abroad, mainly from tlhe United States. It also made the decision to help the Philippine Government cbmbat the blackmarket, which undertaking later resulted in heavy losses to the importers because of the slump in prices that followed. Although severely hit by the last war, like the rest of the business community, members of the Chamber immediately embarked upon the reestablishment of their enterprises without much delay. And the Chamber assisted in miany ways toward the restoration of normal trade, obtaining temporary permits and securing materials needed for rebuilding. Today the Philippine Chinese General Chamber of Commerce has resumed its peacetime function, serving the members and assuming its share in community enterprises. It contributes to numerous social and humanitarian movements without fanfare. In the economic rehabilitation and reconstruction of the Philippines, the Philippine Chinese General Chamber of Commerce has not failed the country which the officials and members have adopted as their home. YANG SEPENG, Executive Secretary Spanish Chamber of Commerce of the Philippines THE Spanish Chamber of Commerce of the Philippines before 1900 was called the Royal Society of Friends of the Country (Real Sociedad de Amigos del Pais). Its first President was Don Segundino Mendezona. Later, the society was organized to adapt itself to the Royal Decree of July 12, 1922, which regulates the activities of Spanish chambers of commerce throughout the world. In Spanish times when the society was first organized, its principal activities were dedicated to obtain for its members, who were mostly merchants, all possible data and information which might tend to increase commerce and economic interchange with countries interested in Philippine trade. Together with the Mother Country, Spain, relations with South America and Cuba were the most important. After 1898, the Chamber adapted its activities to the new situation, and some business men and enterprises not Spanish also became members. The Chamber established friendly relations with the United States and the Philippine Government, increasing its activities and at the same time keeping in close contact with the Spanish Consulate in order to have its members well informed on Spanish business affairs. At present the Spanish Chamber of Commerce is continuing its activities as before World War II, in spite of present world-trade difficulties, helping its members and giving out information to business men in all parts of the world. The membership at present numbers 39. The officers are: Don Carmelo Lizarraga, President; Don Cosme de Churruca, Conde de Churruca, Vice-President; wma~lJ^^ftf is to ask for BOTTLLU IN THE U. S A. FOUR ROSES! Fine American Whiskey. Preferred throughout the Americas Sole Importers SORIANO TRADING COMPANY M. R. S. Bldg. - Tel. 2-79-61 - Manila AA SOUND When you need sound equipment or interoffice call systems-see us for quotations. We are prepared to engineer special items if our stock units do not meet your requirements. Radio Electronic Headquarters 821 Misericordla, Manila Tel. 2-94-21

September, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 169 Don Enrique P. Litz, Treasurer; and Don Jose M. Rocales, Secretary. The directors are the Rev. Father Emeterio Izquierdo, Don Antonio Roxas, Don Antonio Campos Rueda, Don Grego:io Mafieru, andi Don Joaquin Porta. An interesting statistical point, is the fact that exports of Philippine products to Spain are bigger than imports from Spain. Formerly, Philippine exports to Spain amounted to from P7,000,000 to P10,000,000, and imports from Spain to only about P1,000,000. Concerning tobacco-leaf exports before the war, 80% was delivered to Spain. Copra exports were about 30,000 tons. It was only in 1946 that the figures changed, and that exports to Spain were P624,000 while imports from Spain reached P2,000,000. But this was due only to the temporary port-war situation. By J. M. ROSALES, Secretary On the Proposed Central Bank (Continued from page 147) the banks by converting their excess reserves into earning assets. The establishment of the Central Bank will put an end to this uneconomic position of our banks and will permit them to invest their idle funds in government securities or other commercial paper, because the Central Bank, as the guardian of the credit system, will always come to their rescue when they need funds to meet their liabilities. The banks could easily borrow from the Central Bank upon pledge of governmentsecurities in their portfolios to provide for any and all possible demands for cash which under present conditions might threaten their solvency. The banks could therefore release an enormous amount of investment funds which would help the Government to meet seasonal treasury deficits. As you must have noted, the Report of the Joint Commission covers practically every important phase of the national economy. It gives me great pleasure to acknowledge the invaluable contribution of the American Section whose members always made a scientific approach to their task and exhibited the utmost frankness and sincerity in the expression of their views on various controversial subjects considered by the Commission. I wish to impress upon those who entertain differing views from the conclusions and recommendations of the Commission that we arrived at them only after considering every possible angle of the problems involved in the numerous meetings and private conferences of the members and their advisers during the nearly six months that went into the making of the report. The report will be of great help in implementing important economic and financial policies in our effort to effectuate a rapid reconstruction and development of our young Republic. Advertising in MERALCO BUSES Brings Good Results 90,000 PASSENGERS DAILY SURPRISINGLY LOW COST PER 10,000 CIRCULATION FOR RATES AND PARTICULARS CALL ADVERTISING MANAGER MANILA ELECTRIC CO. I 134 San Marcelino Tel - 8-75-31 134 San Marcelino Tel. 8-75-31 I1 Subscribe to the Journal to keep your files complete. Let a SIMPLEX electric time stamp be your silent witness! Simplex = Payroll clocks Simplex = Cost clocks Simplex = Watchman's clocks Simplex = Time stamps PHILIPPINE DISTRIBUTORS 0. E. S. & S. CO., INC. 673 Dasmarifas (Gibbs Bldg.) Telephone 2-98-16 Local 2-98-17 SERVICE SALES

170 AMERICAN CHAMBER OF COMMERCE JOURNAL Sept, —mber, 1947 I I SILVER and JAVA SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York PACIFIC LINES JAVA PACIFIC LINE N. V. S.M. "Nederland" N. V. Rotterdamsche Lloyd Amsterdam -Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York PHILIPPINES To and From VANCOUVER SEATTLE PORTLAND LOS ANGELES AND SAN FRANCISCO PHILIPPINES To and From BOMBAY AND CALCUTTA SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FR O M U. S. ATLANTIC COAST PORTS TO MANILA FR O M PHILIPPINES TO HALIFAX AND U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 -1 The Metropolitan Water District (Continued from page 144) distribution system. They expressed the opinion that any repair in this aqueduct should now be accomplished by patching it from the inside and not from the outside as we were doing. In other words, the main should first be emptied; then daring workers sent inside the long, dark tube to look for the cracks and holes and patch them with a very rich cement-mortar. After the mortar was cured, which would require a few days more, would come the disinfection operations; finally, the main would gradually be filled until the normal pressure was re-established. In toto, about two weeks' time; about 80% of the system without water; a waste of several millions of gallons; besides requiring equipment which we do not have at present! In addition to such engineering problems, we have others of a social and administrative character. Among them are: the demands of laborers for higher wages and more benefits and privileges; the lack of cooperation and hostile attitude of consumers of the poorer class who think that they are entitled to free water service; the high cost of materials and equipment; the lower income and increased expenses of the District; the low salaries and the lack of technical assistance; the misassignment and misplacement of personnel; the subordination of some of the powers and privileges of the management. At the beginning of last year, a detailed report was prepared as to what improvements were needed to rehabilitate the Metropolitan Water District. The following paragraph is quoted: "To rehabilitate the water and sewer systems, requires at least P10,400,000 and to further carry out its two 5-year plans entails a total sum of P32,000,000 in round figures. All in all, the Metropolitan Water District needs immediately some P42,400,000 in order that it may fully discharge the obligations imposed upon it by its Charter." The present administration entertains very little hope of getting this huge amount of money, more than the total capital investment of the District. Deducting about P15,000,000, which amount was planned to be used for the improvement of the sewerage system, there still remains P17,000,000 which is solicited for the reconditioning of the waterworks system. We consider this sum still too big and quite beyond the paying-power of the District. The Metropolitan Water District has aged so suddenly that no one had noticed its precarious structural condition and the financial trend to absolute downfall, either as a publicutility organization or as a governmental institution. The deficiencies are of such a magnitude that no one can deny that it will require more than money to deal with them satisfactorily, and the time factor, too, is most haras r I Glenmore Distilleries Co., Incorporated, Louisville, Kentucky Where discriminating people shop.... HEACOCK'S The House of Quality 454-600 Dasmarifias Tel. 2-70-81 Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2 - 79 - 61 AA

mmmmmm September, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 171 sing from all angles. The deficiencies affect public health and sanitation, and deter the commitments of the Chief Executive relative to industrialization and prompt national rehabilitation. As the writer sees it, there is one feasible way out of the predicament, and that is to take advantage of the plan to build a new capital city on a high place and not too far from Manila. If this project is carried out and financial help is obtained to construct a new supplementary water supply, then both problems, that of the new capital city and that of the present metropolitan area, could be combined in the interest of economy and simplicity. The prompt and economical remedy for the prevailing low pressure of the system now in operation, is a higher source of supply. The new capital city, located on higher ground, would require a new system, and it would be of great relief to the existing system if both were combined. An additional 15 or 20 pounds of water-pressure in our present distribution system would preclude the need of reconstructing the distribution-net in most areas. This scheme is now under study. By the time the higher authorities render a decision on the location of the future capital city, we will be in a position to suggest methods of financing. In the meantime, the following projects have been approved by the District Board, some of which are in the process of execution: 1. The return to the District of the Montalban system which was turned over to the central government for disposition. 2. The development of this system to supplement the watersupply of neighboring towns. The U. S. Public Health Service will construct a pilot water-purification plant for purposes of health education. 3. With reparation assets available in Japan to construct a small hydro-electric plant to help Balara Filters (a) to produce ferric chloride and use it as a coagulant to remove the impurities in the raw water; (b) to produce chlorine for the disinfection of filtered water; and (c) to lower cost of electricity. 4. Decentralize the administration of the District to twelve subdistricts for better contact with consumers and to be able to cope promptly with emergency cases and secure more effective control over areas served. 5. Adopt a monthly billing-service instead of quarterly. 6. A new scheme to supply the poor people with running water at the rate of 2 centavos a day. 7. Construction of a parallel aqueduct from Balara Filters to the San Juan Reservoir (already started). 8. A new pail-and night-soil disposal system at the Azcarraga sewage-pumping station. 9. In combination with the office of "Soil Conservation Service", a project of reforestation and soil conservation for the Novaliches watershed. 10. Reorganization of the activities and personnel of the Metropolitan Water District. 0 lh~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- -~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~~~~~~~~~~~~~~ 1 CO x C/IRETE PP for WATNTL, SEWWR and CULVERT These Concrete Pipes, manufactured by the Hume High-Speed 1 meter lengths in sizes 4", 6", 8", 10", 12", 14" and 16" inside Centrifugal process and sold under the "HUMEOGENEOUS" diameter. Trade-Mark. are of the Highest Quality and are guaranteed equal 5 ft. and 10 ft. lengths in sizes 18", 21", 24", 27", 30", 42" 48", to American Standard Specifications. and 60" inside diameter. Ready for immediate delivery ex-factory at Mandaluyong For PRICES Apply to XLEOJ. U- OiVEL &. C~O0P F LS, L.TD L. 6th Floor, Ayala Bldg. 1UU3EE PEPE & S9BE9T0S CO@MP3^I M ANDALUYONG::.".a.?.: ~...:..............;...:.!.:;:...~.::i":5.-i '...~ -?.~., '~........:.:~:i~:i~:5i:.:.::.......::..:::.......... >~~::c-...-'...................:!:'::...........: or

172 AMERICAN CHAMBER OF COMMERCE JOURNAL Septe-mber, 1947 [ m m * TRUCKS * PICKUPS * TRAILERS * HEAVY LIFTS Available Daily Telephone 2-79-35 0 = ONE of the best, if indirect, of the comments made on the August issue of the Journal, was the decision of the Government upon the immediate construction of a number of temporary Bailey bridges across the Pasig, as advocated in the Journal, copies of which were delivered to Malacafian less than a week before the decision was taken. Obvious as the proposal was, it had not been made, publicly at least, anywhere else. The Manila Daily Bulletin stated editorially: "The President and whoever else is responsible for devising a [this] solution to the bridge problem has earned the personal and heartfelt thanks of every person who has to depend on local transportation. " Can anyone blame us for fitting this cap on our own head? While on the subject of bridges, the following excerpt from the first law enacted by the American Government here regarding port works, is of interest. The excerpt was sent in to us by Attorney L. D. Lockwood, who, in his letter quoting it (from Act No. 22, October 15, 1900) followed it with a line of eloquent question-marks. "Sec. 3. After the work provided for in section two shall have proceeded so far that connection of the new port by a bridge with the business portion of Manila shall be needed, the Chief Engineer, under the direction of the Military Governor, shall construct a suitable railroad, wagon, and passenger drawbridge across the Pasig River, near its mouth, so as to interfere as little as possible with navigation. The Chief Engineer shall acquire, either by purchase or by appropriation in the manner provided by law, the necessary land, owned by the government of these Islands, for approaches and piers of the bridge. No purchase of lands herein directed shall be concluded until the title thereto shall be examined by the fiscal of the Supreme Court of the Philippine Islands and be declared good and sufficient, and the terms of the purchase shall be approved by the Military Governor." Some one interested in ancient history might undertake the research necessary to determine why the building of this bridge was not carried out as thus planned and ordered. Evidently, the need of it was early seen. Yet nearly fifty years have passed,-and much water, but not under that bridge. It is to be hoped that the Republic and President Roxas will do better. The President of the Chamber, Mr. Frederic H. Stevens, received the following letter from Mr. A. D. Calhoun of the National City Bank of New York, with reference to his letter to a member of Congress on the double taxation issue, published in the August issue of the Journal: "I want to thank you, though belatedly, for sending me a copy of your letter of July 24 addressed to Congressman Harold Knutson on the subject of the taxation of Americans in the Philippines. It is the most effective presentation of the case that I have seen to date, and this is no bouquet compliment, as I sincerely mean it." Another prominent Manila said in a letter addressed to the editor: "You have set a very high standard for your contributors and readers, and I wish you continued success." An English friend of ours took to trouble to call up on the telephone to say that both the July and the August issues were "bloody marvelous". In his calls on the members (he hasn't been able to get completely around yet), the editor found the Journal on many of the executives' desks and often they told him that they were finding it most useful in preparing reports for their home offices. The --- "LET YOUR HAIR DOWN" --— Column Mr. Barrett Mr. Schedler LUZON BROKERAGE COMPANY I JACKMAN-CUSTOM ORIGINALS AMERICA'S FINEST CASUAL CLOTHES FOR YOUR LEISURE HOURS, WE SUGGEST SMART, COMFORTABLE, SKILLFULLY CRAFTED JACKETS AND SLACKS CREATED IN CALIFORNIA FROM MAGNIFICENT WOOLENS. SEE TO-DAY AT HAMILTON - BROWN GREAT EASTERN HOTEL BLDG. ECIIAGUE

September, 1947 AMERICAN; CHAMBER O)F COMMERCE JOURNAL 173 - I - September, 1947AMERICAN CHAMBER OF COMMERCE JOURNAL 173 Men from a number of memberfirms have come to the Jo u rnal office to get an advance look at some of the columns published under "The Business View" heading. A letter from Mrs. Soledad G. Collas, of the Employment and Counselling Department of the Young Women's Christian Association, informed the Chamber of plans to open soon on the Escolta a service center for business girls where they may go for a light lunch and a rest during the noon hours. The YWCA operated a similar center very successfully before the war. The organization is also planning to give a series of lectures to the girls on salesmanship (retail selling). An interesting feature of the course will be the assignment of students to go shopping at certain indicated stores, they to report later on the selling-technique met with and its good and bad points. Mrs. Collas was assured of the great interest of the Chamber in the proposed center and in any other plans the YWCA may have to help the working girls of the City. "Admirer" with whom we had a little brush in this column last month, wrote in again, as follows: "Sir: I have read your reply to my letter questioning your policy of having practically your entire Journal written by what I called interested persons, and I have noted your question as to whether I myself am wholly without personal interest. "I might be the scion of a wealthy family of Manila propietarios who has nothing to do but to draw a generous paternal allowance, or I might be an underpaid clerk who has nothing to sell except all the days of his life, but, sir, I am an observer and a philosopher. My interests are those of every man. "I look about me and I see inequality and injustice, widespread poverty and misery, and again the threat of war. I see the exploitation of the weak by the strong; the poor by the rich. In the last analysis, this is all the inevitable result of the fact that our economic system is based on the private ownership of property (which should belong to all), and of the fact that this system is motivated only by the lust for private profit. There can be no permanent peace or any security and happiness until private and class interests are merged into the interests of the whole of humanity. "That is why I deplore the existence of publications given over wholly to narrow business interests when there is so much truth that should be published and is not..." This writer, for all his gift of language, is, we fear, a little cracked. The Journal is a technical publication, for men of business, just as there are other technical and class publications for doctors, lawyers, architects, engineers, lovers of art, the religious-minded, the philoso phical, etc. The Journal is not published for the general reader and makes no pretense of general coverage. However, as for "narrow interests", meaning business interests, it would be well for the writer of that letter ______._._.__ -- I Of course...they're B. F. Goodrich i Silvertowns Many driving tests on police cars, taxi fleets, special test cars, and everyday driving for nearly two years prove that these B. F. Goodrich tires outwear... outrun... and outlast tires of built with a unique, wider, flatter tread over a 35% sturdier cord body. If you're looking for better mileage, more traction and greater safety... see us today for the tire that outwears prewar tires. m prewar construction. They're t~ 1 Ir~ I I ~ I~ I ~l~r0 1( I1 p GOODRICH INTERNATIONAL RUBBER CO. 13th & ATLANTA STS., PORT AREA, MANILA, P. I.

174 AMIERICAN CHAMB~ER OF` COMMMERCE JOUR~NAL RentPmh-r 1 QoA7 1 -.7. 4,,AECCHBO — M TAT RA LT., xs IR A EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines FERN LINE To and From North Atlantic Ports Gulf Ports Philippines EVERETT ORIENT LINE Serving the Orient PHIL. STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarfifas St., Manila Tel. Overseas 2-87 82 2-87-92 Tel. Interisland 2-63-82 Tel. Executive 2-97-38 to grasp the fact that business interests take in, directly and indirectly, well near the whole of life. Just as all animal forms are built around the alimentary canal, as first in importance, so is human society built around its economic institutions. The writer mixes all the fundamental sciences together,-biology, anthropology, sociology, economics, not to include political science and history, and draws out one little generalization,-that everything that is wrong with the world and with life is due to one institution which is all wrong, and one motive which is wholly evil. How wonderfully simple! In the whole complex of humanity and its existence, he sees only two kinds of men, the weak and the strong; only two grades in economic status, the rich and the poor; only one social institution, the economic; only one motive, the lust for gain. He ignores all the other human drives to action; he overlooks the fact that besides private ownership, there are many other forms of ownership covering probably the greater portion of the world's wealth. He appears to be blind to all that is good and just and beautiful in the tremendous achievement of humanity up to the present time. Everywhere he sees only selfish and hateful intent, not understanding that what the world is today is the product of centuries, ages, of slow development and growth, with which individual men, even the greatest and the most powerful, and whether good or bad, have little to do. For all his seemingly sympathetic heart, this young philosopher (for very young he must be), thinks envy and hate; he thinks destructively rather than constructively. He fails entirely in understanding the great human constructive achievement incorporated in the established economic system. That this should be perfect, no man in his senses could demand; and that it is better than anything which either closet philosophers or irresponsible radicals might devise and force upon the world, were such a thing possible, should be clear to every thinking man. The clearsighted idealist will not fail to appreciate the good which has been achieved in the world and will not sacrifice what is real to fantasy. He will take the world and life for what it is, blind neither to the good nor the bad. He will align himself with all truly liberal and progressive forces in whatever field of endeavor he may find himself. With open mind and heart, working with his fellows, he will be full of courage and faith, believing in men and believing in life despite all manifest shortcomings. And there is nothing in all that to preclude his own best self-interest. Men can not be expected to be self-immolating saints, and it would be a sad world if they were. If we were to risk a simple but very comprehensive generalization of our own, we would say that all the higher things in human life are based on the wise utilization of surplus, surplus wealth and surplus time,-in other words, profit. This is supposed to be a column in the lighter vein, and look what has happened to it! That last paragraph, though, might qualify. In fact, much of what these days passes for serious economic analysis and learned social and historical philosophizing, is nothing more than the rawest burlesque, but, unfortunately, it is all the more dangerous for that in further addling the addleheaded. There are still evil "interests" in the world, tyranical and enslaving, which scheme to profit from this muddling of minds. P360 Only.... and You Can Start Building Your Own Home!... and soon you'll be able to avoid paying monthly house rentals... which amount never comes back! See us... P6.00... We still have homesites for sale in and up University, Espania, per sq. m. Quezon City, Camp Murphy-and New Manila, Lots: 300 to 5000 sq. m. 20% down-the rest payable in montly installments. MAGDALENA ESTATE, INC. 211 Consolidated Investment Bldg. Plaza Goiti, Manila i The Journal aims at complete business coverage. If you think there is anything missing, let the editor know, or, better, supply it yourself. -- -

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SEP 7 194P THE AMERIC, COMMERCE Published monthly in Manila by the American Chamber of Commerce of the Philippines Fifth Floor, Insular Life Building-Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Frederic H. Stevens, President; John L. Manning, Vice-President; Fay C. Bailey, E. G. Baumgardner, Max Blouse, John F. Cotton, Samuel Garmezy, G. C. Miller, and J. Leon Rosenthal, Executive Vice-President; I. T. Salmo, Secretary. Philippines: Treasurer; A. Parrish. Vol. XXIII October, 1947 No. 6 Contents EDITORIALSThe New American Ambassador The Finance and Industrial Development Reports The Government in Trade Moral Conduct in International Relations Manila's Obsolete Sewer System Ambassador Emmet O'Neal.. The Beyster Report; a Summary.. Legality of the Temporary Building-Permit Ordinance New Philippine Flag Line for the Orient. The Business ViewOffice of the President Stock Market Credit Electric Power Production City Planning. Real Estate. Construction Ocean Shipping Inter-Island Shipping Air Transportation Gold Lumber Copra and Coconut Desiccated Coconut Tobacco Sugar (1947-1948 Crop Estimates) Manila Hemp. Machinery Automobiles and Trucks Food Products Textiles Legislation, Executive Orders, and Court Decisions Philippine Government Corporations Labor Cost of Living Index. Other Chambers of CommerceChamber of Commerce of the Philippines Philippine Chinese General Chamber of Commerce The "Let Your Hair Down" Column Manuel Mafiosa. Official Source The Editor L. D. LOCKWOOD AND L. P. CROF N. N. EVERETT Official Source A. C. HALL D. BURN J. F. COTTON L. P. CROFT C. M. HOSKINS H. H. Keys F. M. GISPERT D. M. CAMERON V. A. BRUSSOLO C. A. MITKE E. C. VON KAUFFMANN M. IGUAL AND K. B. DAY H. R. HICK. CONDE DE CHURRUCA G. G. GORDON M. COOK L. M. HAUSMAN J. L. MANNING. E. A. L. BEST J. TRAYNOR R. JANDA. Official Source Official Source Bureau of the Census and Statistics P. J. OCAMPO YANG SEPENG FT 179 179 181 181 182 185 186 188 189 190 191 192 192 192 193 193 194 194 195 195 196 196 198 198 198 200 200 200 201 202 202 203 204 204 205 205 212 50 centavos the copy

A11il~w THERE'S a reason why auto tires used on small trucks can cost money instead of saving it: Most trucks need truck tires to do trucking work. That's why so many light-truck owners are making money with the Goodyear Truck Airwheel you see here. Pioneered especially for light trucks, it is a true heavy. duty work tire - with a wider, thicker tread than used on auto tires, to withstand the pounding punish. ment of pickup and delivery service. Built with super-strong RAYON Beneath that heavy tread, it is "bodied" with six or more plies of RAYON Cord - to give it great strength and heat-resistance - to carry heavy loads safely. Beads are especially reinforced to prevent bead trouble. That's wily it is so tough and sturdy - has more "cushion" - helps lengthen truck life. This great tire, though slightly higher in price, delivers so much more in money savings, it is actually the lowest. cost tire to use. Made in sizes up to 7:50-16 for light trucks... /,// / /,.,,,/.../, coo~~~~~~~~~~~~~~~k4IIEAR~~~~~~~~~~~~~~~~~~~~~~0 TRUCK AIRWHEELS..// ", /, MORE TONS THE WORLD OVER ARE HAULED ON GOODYEAR TRUCK TIRES THAN ON ANY OTHER MAKE THE GOODYEAR TIRE & RUBBER CO., OF THE PHILIPPINES, LTD. BACOLOD MANILA CEBU

THE AMERIC NA ~~~~~..,, () * I- IEdjth The reception in honor of His Excellency, the United States Ambassador, Emmet O'Neal, and Mrs. O'Neal, at the Army and Navy Club on September The New 24, was sponsored by the American American Chamber of Commerce of the Philippines, Ambassador after an invitation to such a proposed function had been kindly accepted, though the affair was scheduled during what was for them a very busy and arduous week. The Chamber's desire was to honor and welcome the Ambassador and his family, and to give the American community an opportunity to meet the new representative of their country here. The Ambassador will find that the American community is eager to do what it can in giving him all possible support in his work and in making his stay as pleasant as long American experience in the Philippines has shown it can be. This issue of the Journal contains a summary of the "Proposed Program for Industrial Rehabilitation and Development", commonly referThe Finance and red to as the Beyster Report. Industrial Develop- The August issue contained a ment Reports similar summary of the "Report and Recommendations" of the Joint Philippine-American Finance Commission. The writers of these Journal summaries merely outlined the reports and attempted no critical evaluation. While much adverse opinion as to the various recommendations made in the two reports is to be heard expressed in financial, industrial, and business circles, and the Journal announced that it was eager to assist in bringing this criticism before the public while intelligent discussion would be of value to the authorities which must decide upon the adoption, in whole or in part, of the programs and projects advocated, no such frank statements as the Journal asked for, have been received by the editor. This can not be attributed to a lack of competent critics in Manila or to indifference on their part, and is most likely due to both a natural unwillingness to enter into public controversy and to the realization of the fact that detailed criticism of the numerous and varied recommendations made would have to be based on painstaking and time-consuming studies. Were the authorities to ask COMMERCE orials for the considered opinion of competent persons here on the fundamental issues involved and on various specific proposals, these men would no doubt be willing to give the Government all possible assistance in arriving at wise decisions. The Journal is, however, loath to leave the matter at that, as some sort of critical estimate seems to be called for on the part of such an organ as this publication. But all the Journal can do under the circumstances is to give expression to what inquiry indicates is the general opinion of these two reports in informed circles. As near as we can determine it, the following seems to be that general opinion: Whatever may be thought of the various proposals and recommendations made, it is felt that the Government is to be commended for having had these studies undertaken at this time, which it is realized is highly critical with respect to the future economic development of the country. Both reports deal with matters which are recognized to be of vital importance in that development, and it is good to haves the results of the studies brought before the public in eminently readable form. The broad objectives proposed are generally endorsed, but, in the case of the finance report, it is felt that the approach should be more cautious, and, in the case of the industrial report, more within the bounds of the practically possible. Proposals are made which, in the finance report, are considered too drastic, and, in the industrial, report, too all-inclusive and undiscriminating. Both reports are, nevertheless, very valuable in suggesting possible general courses of action, though most of the specific recommendations made are thought to require much further study before the great risks involved are assumed; this is true especially with reference to proposed changes in the country's currency structure, the institution of an artificial and arbitrary control of trade, and the investment of huge sums of money in far too numerous and wholly untried industrial-plant developments. It does not seem possible to say much more of these two reports in speaking in general terms. Specific issues will no doubt be debated point by point as they arise, and the various projects will have to be weighed as they pass from the theoretical into the practical and executory phases. 179

HIZI U11$V$S JaO1 W-d OFVZ 0l 00:L '"(vps-Inqi "(a43 (UIOJ ILLIAI ' 'L NONU 11)0 - no~A sa2jvJ auIpOJL pHjuO V'IINVN V3aIV JLAOd "09 KIcddflS UNV 9DNIUVMI V~IINVN 1SOATIIle PJOJ MOU JnOX HI~ qof oqq uo epnn0t Auii Jo 31ni juasoid inoX daail ol anaials.inoxC 7v Si analwas P.0, iVljoM& Ilam oq 1pM 3tanlJJL -Isjg,, jo asuo ii aq ol lo s,4 in.liap.*o inoAT 13 ol ST spaau ssuisnq inoX 313n.i po0d A NI 3avoao'flOA'30 3)IVW i3HiO ANY NVHI. kaVoW 3sflNI s)Dfmi aoi 3vow WI SIt~ 1iCI P0~T Xipol unP1 9ES *spej ai s~su~aa{M... suo;ijumqmoo stssutp-Apoq oor uuiqj ajot.. qof anoS.xoj 3[3nLJJ paoff u s,;aaxlqJ IJ!jl1.192tIo U9A9 'oo-euapuojad ioa;aq 'Xmuouo~a oiotxu JOJ SlUatuToUwAP9 2uuiaaui~ua 4u13;Iodum 2;C-s~onrjL PJOff CflU 4RD12 0L{1 UT 0.ioULI UOA~a IO noX 'AiipojL -soan2ij piUP4Uo pap1 ol 2uipjo33i? 's~aq-eu pall axp Xq Aluo polunba pawaaooo pen~o Ue s,4UtlJ lqof OMuO IF.4 0- SZ6T O3Uis 41nq s3pDnJL J~ do T AJO 4flO L is-[UA 6 XAliou st p-eoi ait4 uo.AMou S~lonJ pioo flV JO 02Ue 02TUOAUe ~IqJ -jIa.uol Isu s~Panaj, p.................................................................................................................................................................................................................................................... 'IV - flOL ~. ---- -- ----- - -.- I-OO tO -SYH N Z -~ U1% L% Lt,61 Ii;aqo4z)o FIVNHflOf aDH:aWFVOO 40 HHSINVHO NVDI'aaNV 091

T HE shocking losses due to spoilage in the canned-milk stocks of the National Trading Corporation,* should serve the country as a valuable, The Government though costly, lesson. It remains a in Trade pity that all this milk was not turned over, before it spoiled, to government hospitals, puericulture centers, schools the Philippine Army, and even the prisons. It can hardly be questioned that the total loss of this valuable food-product was due to very bad management. This development does not stand alone. The Government would have lost heavily in flour if it had not been able to sell more than 20,000 tons (800,000 50-pound bags), to SCAP, and it is reported to be facing large losses in sugar. It is also known that the National Rice and Corn Corporation is heavily overstocked. And everyone krows of the difficulties the Government is having in disposing of the immense stocks of Army surplus goods. All this illustrates the disadvantages and dangers of a government going into "business" especially when it is poorly prepared for doing so. IT is not possible to make any absolute statement as to the functions a government should or should not undertake. Governments vary greatly throughout the world. In some countries, government functions are still almost at a minimum; in totalitarian governm nts they are at a maximum. The essential functions have been fairly well determined and comprise the national defense and foreign representation; the making and execution of orders and laws, including levies for revenue purposes; and the preserving of internal peace and order. So-called optional functions are those which are not essential to the existence of the state, but which are conducive to the general welfare. Non-socialistic optional functions are those which do not compete with the activities which individuals would ordinarily undertake, such as the building and maintenance of roads, bridges, and harbors, and systems of public sanitation, and the regulation of industries affecting the public interest. So-called socialistic functions are those which compete directly with activities which individuals could and would carry on if the government did not. What functions any government should undertake to exercise, whether socialistic or not, depends upon the conditions and problems of the time,-the stage of political and economic development, the needs of the people. As conditions change, so must the governmental measures which deal with them. In general, as populations grow and civilization become more complex, the trend is for governments to assume ever broader functions. The necessity of this is accepted, and differences of opinion arise mainly on the question as to how far in this respect a government should go. IN the Philippines we must consider the fact that the country is still sparsely populated and that the economy is as yet relatively simple, so that any radical expansion of the functions of the Government is not necessary. In so far as the assumption of economic functions is concerned, we must reckon with the fact that there are few if any men here, in or outside the Government, who have had any extensive training or experience in "big business". The Government could, probably advantageously, do considerable "pioneering" in an attempt to get various new industries under way. But it is certainly unwise for the Government to remain in the business of trading in staples which the country's private business can very well carry on as it has for many years, and far more efficiently than the Government can do so. For some months after the liberation, when international trade was carried on chiefly between governments *Under the recent government reorganization, the National Trading Corporation was merged with the Philippine Trade and Rehabilitation Administration. and through semi-governmental organizations, it was undoubtedly necessary for the Philippine Government itself to import stocks of commodities of prime necessity which the country was in dire need of. But that period of emergency has passed. The Government's essay in trading has been criticised here on the basis of the fundamental principles involved. That thousands of cases of milk bought and commandeered and kept off the market, have now spoiled, is only an incidental, though striking case of incompetent management, yet it serves to emphasize the point made that it is neither necessary nor wise for the Government to enter into a competition with private business in this field. It may well be posited as an axiom that no government should undertake the performance of a function which is better performed in the public interest by private entities. President Truman was recently quoted as having said: "We look upon international Moral Conduct relations as governed by the same in International standards of moral conduct by Relations which individuals are governed." This simple statement, expressing so apparently natural a view, is actually most revolutionary and of deepest import. For probably never in history have the relations between nations been so governed. Machiavelli, the archrealist, advised his Prince, Lorenzo the Magnificent: "You are to understand that a Prince... can not observe all those rules of conduct in respect whereof men are accounted good, being often forced, in order to preserve his Princedom, to act in opposition to good faith, charity, humanity, and religion. He must therefore keep his mind ready to shift as the winds and tides of Fortune turn... he should know how to follow evil courses if he must." It would be possible dismally to quote many famous and infamous leaders of the remote and recent past, and of the present day, who in their franker moments, have spoken in the spirit of Machiavelli. While diplomatic relations between sovereign states have generally been carried on, in times of peace at least, under rules such as may be compared to those guiding the amenities of social intercourse, such polished conduct has too often concealed bad faith and deceit. Brute force has ever stood in the background and national policies have been largely determined either by the crassest self-interest or by mere expediency. The best that can be said is that both international law and international morality have tended to lag behind the general standards of ethics. In this unholy glare which History casts upon the subject, President Truman's simple, human declaration takes on a startling meaning. And he speaks not as a moral leader or as a philosopher, but as the executive head of a great and powerful nation. In the sickening propaganda of a hostile government which now beats about the world and which rings even in the conference chambers of the United Nations, we hear also a different expression of a very different view of international relations. This voice is lying and libelous as well as raucous and violent to a degree such as would never be tolkrated in private society. This government has laid ordinary diplomacy aside, not because diplomacy is so often false, for this government itself is false, but because, holding a low view of the human being, it believes that this vilification will have its appeal to the world's masses. We may be confident that morality is firmly based on the natural evolution of human society; that good is therefore stronger than evil and that truth can not bo overcome by lies; finally, that bad faith and knavery can not be long concealed whether by diplomatic deception or a scurrility mistakenly supposed to be "proletarian" 181

Manila's Obsolete Sewer System By Manuel Maniosa Manager, Metropolitan Water District THERE seems to be a sort of confusion in the minds of some people as to the purpose and scope of a "sanitary sewer system" or, briefly, a "sewer system". In the first place, rain water falling on roofs. grounds, and roads which flows away through a drainage system, has nothing to do with the sanitary sewer system, at least in Manila where we have a separate, dual system of collection: the sewers and the drains. There are two kinds of avenues, so to speak, with two distinct kinds of traffic. One avenue carries highly objectionable traffic, which rapidly decomposes and is laden with germs and parasites. The other collects relatively cleaner, but sometimes also highly polluted waters, thought it is as a rule uncontaminated. Because of the quantity of water collected in the latter, it oftentimes floods areas where free flow is hindered by obstacles or by insufficient slope. The source of confusion lies in the fact that from the engineering viewpoint both systems follow the same principles of flow, of construction, and even of disposal, inasmuch as, ultimately, both seek low levels and are discharged into nearby water-courses or large bodies of water. By popular conception both systems are laid underground and are affected by high tides and, in times of flood, both are under water. In fact, flooded areas become temporary lakes of a mixture of muddy rain water and sewage from households. This parallelism contributes to frequent wrong judgments and misleading statements. The drainage or the "storm-sewer system" in Manila is under the management of the City Engineer; while the "sanitary sewer system" is under the management of the Metropolitan Water District. Way back on May 25, 1909, the newspapers in Manila reported the "turnover, by the Contractor, of the newly built sewer system to the City Government" and declared that 'the system recently built ranks easily among the best installations in the Orient". This was the modest beginning of a major, beneficial, and indeed enduring contribution of American engineering in the Philippines. The sewer system built in 1909 still is to be considered one of the important public improvements of which our Government may well be proud, for it has provided that added comfort looked for by citizens, and has protected and promoted the public health. Before proceeding, let us recollect that we owe this achievement to the undoubtedly eminent but forgotten designer, Mr 0. L. Ingals, Sanitary Engineer of the Bureau of Health and for a short time Acting City Engineer of the City of Manila. Sewerage projects are seldom if ever planned for more than 25 to 30 years of life. In fact, the auxiliary mechanical equipment used, such as sewage-pumps, motors, screens, foot-valves, etc., are seldom given more than ten years of existence, not only because of obsolescence but because their efficiency decreases rapidly due to wear and tear and the rapid deterioration of both moving and fixed parts in contact with sewage and the byproducts of decomposition. Yet this system has been in continuous operation and has rendered uninterrupted service for almost 50 years! We have heard much in the past of the surprising progress our people have made along lines of modernized environment, improved sanitation, higher standards of living. May we ask to what factors this progress was chiefly due? Undoubtedly the answer is that the sewerage system of Manila was one of the principal factors which contributed to this progress. We know of no greater monument of municipal service, no greater engineering accomplishment, than this system devised by Mr. Ingals. He was one of the greatest of the City's benefactors, one of the principal contributors to the progress of Manila. But... When Ingals designed his system in 1904, he planned one to serve 223,000 people but capable of expansion to serve a population of 440,000, using 100 gallons of water per capita per day. Briefly outlined, the system is as follows: The sewer mains start at a minimum depth of five feet below the surface of the streets at their upper end and descend until they reach a level so far below the surface that it becomes necessary to raise the sewage by pumping. This process is repeated until all the sewage is conveyed to the main pumping-station situated at the west end of Azcarraga Street, where it is lifted for the last time and discharged into the Bay. Graph (I) gives a graphical representation of the system designed by Mr. Ingals. In the course of time, these first sewer-lines have gradually been prolonged towards the periphery of the City as is shown in Graph (II) to such an extent that a number of upper ends now lie at a depth of only two and one-half feet below the crown of the streets. Manila has tripled the maximum population upon which the original design was based The water-consumption in 1909 was Graphical Representation of the Manila Sewer System 182

only 10,000,000 gallons a day; now it has jumped to an estimated 57,000,000 gallons a day within City limits. Most of the sewage-pumps and appurtenances still in use are those originally installed in 1909. Two pumps were replaced after the liberation with whatever was available without much regard to conformity or efficiency requirements. How is this equipment working after 48 years of hard use? Only the Lord knows. The pumping-stations have not been provided with measuring devices, and all inlets and outlets are submerged. Before the war the whole sewer system, which was laid at an average depth of ten feet below the street-surface, could be emptied by operating the different pumps for a few hours during low tide. At present, the whole sewer system is full of sewage and infiltration water from surrounding grounds, with all its load of solids, organic matter, and bacteria. Under these circumstances, even when all the pumps are operated simultaneously at lowest low tide, the most that can be * ' ' '.' ". ''. I y? achieved is to draw down the sewage level three or four feet below the street-surface. Before the war the following incident occurred: A lady accidentally dropped a valuable ring into a toiletbowl and in her nervousness flushed it. Her husband came to the District headquarters to ask about the possibility of recovering the jewel. A cleaning-gang was called to work and by emptying the sewer-line on the street in front of the house, the ring was recovered in about two hours' operation, right at the first sewer manhole. During the latter part of the Japanese occupation, when the buying and selling of jewelry was at its peak, a similar accident occurred. This time the valuables dropped out of a man's pocket just at the moment of flushing. The same pre-war operation was tried, but to empty the sewer-lines was impossible; laborers provided with diver's helmets and working with long scoops, toiled for three consecutive days, —a filthy, dangerous, and degrading operation, without success. P-ClcI php,, B e., I c -~; $~ Y i` t ydf Ijt L3,F C ~. C' ~ ~~ gu " t:J/ ~ '.;g ~: ~ u ~ ~~ 1.3. PBC.. ` ~ ' 6;5 r ~ '.. ~: C r i.~ ~i' ' sr. E 'Isy~Sn`ABLL .CQSn,c Sc.;.,t L .~ ~ L r.;~ t: r: ~:- ~~ ~: i ~, ~o:~~.~:.. ~~:.. r rP t ~ * "'~. pam, 9 I"a-P-!L;f\r;?~( ~:~.I. i 1.,, ~'PGEIQ:,.. ` ~ ~..g I&WEIIPD AREA`IS aP fg97Ej"iiftSt0 Si-l:,sA c,..V~~ I ~~1 ' ' ftLWEaltt! i8tt AJ dF~1910 FI~iffp a00 iib L `~ ~~ b.. b * i. ` 'C" *` i~ oarspo r: r t '#coTdCt;iicwmtJl\t!3!,,':Jss sa o~. ~~;~' t... &. * Slr)Wep CL r r';`u' ' H ~ i:: *' 9 ~iwr I. ~~ ~(I ~~ ~*tuiil3oJa;r~t?.Ji. ~': I ICS I -SCdCt' ~ ~~ ----~ps6r I -' i'-... ~' ~ ~,. jrolbu8 *o ul*. ) (...( `.i..... ) )~.iBB.( c Z ~,. ~~ c~ I... \\ ~`.~i~.~,~.:. b liii,: tAPWfB u ~1~ "`' g, ~~ ~ ~:~;.X ~ `~~~ ~~ ~:~:..~.. aL........._........._._..,...... -.. -~L1~l~~ --- — Manila's Sewered Areas as of 1919 and 1947 183

This gives one an idea of the present status of our sanitary sewer system. Though monumental, — too old! It has withstood all the burdens thrown upon it for 48 years but it is becoming obsolete. Most of our sewerage men are now being employed in clearing actual obstructions. Its operation and maintenance requires not only all the income of the District from sewer charges, but more from its other sources of income. In 1909 Manila was a pioneer in modern city sanitation. Today Manila no longer leads, and is being left behind. If effort is not exerted, Manila will soon be only a very distant follower of Singapore, Bandoeng, Shanghai, Osaka, Kyoto, and other cities we may not even have heard from in this part of the world. No m re appropriation and expenditure of funds can make for a successful operation of a sewage system, nor will the importation of experts or the sending of technologists on tours abroad. The important consideration is the experience gained in the actual operation of a given system. The design, construction, and maintenance of a sewage system involve the consideration of topography and of climatic and living conditions, combined with the application of technical knowledge and gained experience. A fundamental factor in any community sewage problem is the final disposal of the sewage. The inhabitants of Manila are so fortunate in this respect as to have a large body of water nearby,-Manila Bay, where the sewage discharge can be mixed, diluted, and disposed of. When Mr. Ingals designed the system, he suggested two outfalls or discharge points, one out on the line of the extension of Herran Street, Malate, and the other on the prolongation of Azcarraga Street, Tondo. The first was stopped and discontinued in 1904 upon recommendation of Mr. Desmond Fitzgerald, a consulting engineer from Boston, who advised that all the sewage flow should be directed to the north side of Manila and dumped from the Azcarraga pumping-station in order to avoid the possibility of pollution and contamination of the shore-lines of Ermita and Malate and the South Harbor. He further recommended that the outfall be located at a point oneand-a-quarter miles from the Azcarraga pumping-station, on the path of the discharge of the Pasig River. At that time the method of disposal proposed by Ingals and Fitzgerald was considered the best for several reasons. The first and most important was that it was the most economical; the second, that is was believed that nature would automatically carry out the purification process or treatment work; the third, that there would be no fear of public nuisance if the discharge was timed with the outgoing tide. Since then, however, conditions in the Manila Bay area have changed a great deal. There is now a new port development over the outfall line which has been extended seaward (see Graph II), with a breakwater quite close to the sewage outlet. It must be stated in addition that during the liberation operations, two breakages occurred on the outfall line, as a result of which raw sewage is pouring out inside the Harbor. Besides all this, there is the discharge of our filthy esteros and the industrial waste along shore-lines. These conditions make it imperative that we re-study the dispersion of sewage in the Bay, and re-determine the direction and duration of sewage dilution and its relation to the raising of oysters and the cleanliness of our beaches. Instead of first undertaking this absolutely essential preliminary work, plans were prepared for two complete sewage-treatment plants, the designs being based on the activated-sludge process, a kind of treatment or purification considered at that time to be the last word, one which would convert sewage into perfectly clear water! One of them was to be located right at the ingress of the North Harbor development, on the prolongation of Azcarraga Street, and the other near Harrison Park at a site very close to the intersection of Cortabitarte and Nebraska streets. While waiting for funds to finance these projects, the Government set aside for the District about two city blocks at the south entrance of the Tondo Port Area; and on the Malate project a 42-inch cast-iron outfall was laid across Dewey Boulevard in a westerly direction along the south wall of the Yacht Club. In our opinion, sewage treatment in tropical localities has two drawbacks which should be taken into account in both the selection of the treatment-processes and in locating the plant site. The first is the prevailing higher temperatures which favor decomposition of the organic constituents of sewage, bacterial growth, and the generation of gases and obnoxious odors. The second is the limited financial resources of our people and of the Government with which to meet the cost of complex install tionworks and elaborate operations. These two limitations are such as to make it inapplicable to say. "They have done this in New York and Chicago; why shouldn't we?" Sewage treatment can be a most expensive municipal undertaking. Oftentimes it is to be compared to the establishment of a large industry, as in the case of these expensive, activated-sludge plants. And steps were taken to construct them in places close to the heart of the City! In case of interruptions of operation as a result, for instance, of a stoppage of electric power, which now so frequently occurs, how could public discomfort and danger be avoided? Singapore before the war built a plant similar to that intended for Manila, but about four miles from any inhabited area. The evidence seems to be that since Ingals no one has made a serious study of the new elements in the sewage problemn in Manila. The records show that the developmental work of the District has been limited to waterwork improvement, and that what funds remained were used on trivial sewer-line extensions. It was apparently thought that if and when the water-supply system attained perfection, then, and only then, could the attention of the District be shifted to sewage. From the point of view of a sanitarian who has the conviction that the sewage problem is next in importance to the problem of water-supply, the following measures have recently been proposed and adopted, and are now being carried out: 1. The use and operation of the sewer system in the Santa Ana District. This system was completed in 1940, but for one reason or another abutting houses were left unconnected. 2. The construction for the City of Manila of a new night-soil disposal plant at the west end of Azcarraga Street. The condition of the old disposal station there was the principal cause of the interruption in the operation of the pumping-station in this district. 3. The construction of an experimental sludge-digestion tank to determine the possibility of producing poxer from sewage gas. 4. In conjunction with the Bureau of Coast and Geodetic Survey, the study of the directions of water currents in Manila Bay. 5. With the assistance of the Weather Bureau, the determination of the direction and intensities of winds and their influence on surface movements in the Bay. 6. The study of ways and means for the immediate replacement and enlargement of all sewage-pumps in all pumping-stations. This item was fished out by the Manila Daily Bulletin which published the news that with half a million pesos the District could solve the flood-problem in Manila. 7. The carrying o01 of studies on the extension of sewage-drainage areas in and around Manila including the proposed Capital City site, and on the possible location of sewage-treatment and disposal plants. When these measures have been taken and the studies have shown definite conclusions, a final plan will be prepared. Consulting engineers from the United States will be asked to help in putting Manila in the lead once more, in the Orient, in matters of municipal sanitation. 184

Ambassador Emmet O'Neal From an Official Source N May 23, 1947, Emmet O'Neal of Kentucky was nominated by President Truman for the post of United States Ambassador Extraordinary and Plenipotentiary to the Republic of the Philippines. The United States Senate concurred, giving unanimous confirmation to the appointment on June 10. Ten days later, on June 20, Emmet O'Neal took the oath of office and became the second American Ambassador to the Philippines. Ambassador O'Neal was born in Louisville, Kentucky, on April 14, 1887. He belongs to a family of lawyers; his father was a judge of the Court of Appeals of Kentucky, and his brothers, Joseph and Merrit, both became lawyers. Emmet, following the family tradition, chose law instead of professional baseball, refusing a bid to join the New York Giants. After attending public schools and graduating in 1907 with an A.B. degree from Centre College in Danville, Kentucky, O'Neal went to Yale University for a year. He obtained his Bachelor of Laws degree from the University of Louisville in 1910. Later, he returned to Yale for postgraduate work. O'Neal was admitted to the bar in 1910 and practiced law in Louisville until 1917, when he enlisted in the First Division of the American Army in Paris, France. In 1921, he served as one of the first department commanders of the American Legion of Kentucky. Later, he served the same organization in various capacities. From 1926 to 1934, he was a member of the firm, O'Neal, Alden & Company, a firm engaged in investment securities. During the same period, he was a member of the board of trustees of Centre College. On November 6, 1934, he was elected to Congress from the third idistrict (Jef ferson County) of Kentucky. He was reelected five times, serving continuously for a period of twelve years. As a member of the House Appropriations Committee during his six successive terms in Congress, he helped secure financial aid for the Philippines. For his efforts he received the personal gratitude and commendation of the late President Quezon. Ambassador and Mrs. O'Neal and their daughters, Lydia Wright and Mary Hamilton, sailed from San Francisco August 22 on the S.S. President Monroe, arriving in Manila on September 19. At four o'clock on the afternoon of September 19, Ambassador O'Neal paid a courtesy call on Vice-Pressident and concurrently Secretary of Foreign Affairs Elpidio Quirino at Malacafian. He presented his letter of credence to President Roxas on Monday afternoon, September 22, three days after his arrival. The following night, President and Mrs. Roxas honored Ambassador and Mrs. O'Neal with a state dinner and a reception and ball. Ambassador O'Neal is a lover of sports. He played baseball, basketball, and football during his college days as a member of the varsity teams. While in Congress, he kept fit by playing handball and golf. Today, at sixty, he is in excellent condition. In Louisville, Ambassador O'Neal was a member of the Pendennis Club and the Louisville Country Club. In Washington, he was a member of the Army and Navy Club. Mrs. Glessie O'Neal, the Ambassador's wife, was for many years Vice-President of the Congressional Ladies Club in Washington. Their daughters, Lydia and Mary, were very popular and active in Washington society. Both have indicated their desire to aid in social welfare work in the Philippines. AMBASSADOR EMMET O'NEAL, from a photograph taken at the reception on September 24, sponsored by the American Chamber of Commerce. 185

The Beyster Report; a Summary By the Editor W HAT is generally referred to as the Beyster Report, released last month, is officially entitled, "Proposed Program for Industrial Rehabilitation and Development", and was prepared by the technical staff of the National Development Company under the supervision of the H. E. Beyster Corporation, Consulting Engineers, of Detroit, Michigan. The report is dated June 24, 1947. According to the Foreword the Report is submitted to the Republic of the Philippines for study of the basic outline of the proposed industrial development program presented. Approval in principle of the proposed program is requested prior to the submission of specific reports, the majority of which, it is stated, can be made available on short notice. The Report is published in two volumes, the second volume consisting of a series of charts, maps, and graphs illustrating and supporting the data contained in the first volume. Though the first volume runs to 200 pages, it is itself so condensed that it is impossible adequately to summarize the contents within the scope of a few pages, and therefore only an outline is here attempted. It is believed, however, that this outline will be of interest to the general reader:and may also be of value to those who later wish to study the Report itself in detail. The first section of the first volume of the Report, comprising 19 pages, reviews the facts of Philippine geography,-area, population,* arable land,"* and national resources. The mineral resources are reviewed as metallic (gold, silver, iron, manganese, chromium, copper, lead and zinc, aluminum, tin), fuel (coal and petroleum, including asphalt), and non-metallic (sulphur, gypsum, salt, asbestos, limestone, cement materials, clay, building and ornamental stones, guano and phosphate rocks). The agricultural resources are reviewed under the heads of sugar cane, rice and corn, abaca, ramie, tobacco, coconuts and coconut products, and brief paragraphs follow on animal industry, and forestry, fishery, and power resources. T HE second section of Report takes up the general question of the economic development of the country and runs to 28 pages. Introductory is the statement that the construction of basic industries and the rehabilitation of the established pre-war industries are absolutely essential and should be first considered. The authors suggest the following order of priority in rehabilitation of pre-war industries-power, rice and corn, fishing, sugar, lumber, mining, transportation, communication, animal husbandry, building materials, coconuts, abaca, textiles, and handicrafts. The proposed new industries are given the following order of priority-ammonium sulphate, soda ash and caustic soda, iron and steel, sulphuric acid, agricultural implements, salt production, pulp and paper, and shipyards. The proposed initial program is said to be a moderate one, based on raw materials available and on domestic requirements, and would take from 10 to 15 years to establish. Under the heading "Labor" in this section, the authors say that there is a definite need for labor to take a well defined stand with respect to the proposed industrialization program, and the opinion is expressed that the plan to unify all trade unions into a Philippine Federation of-Labor might, if followed, become a stabilizing factor; this would call for abiding by contract agreements and for discipline within the ranks of labor. They also say that the Government should define its labor policy, and suggest that a broad, general social security and hospitalization program would assist in guaranteeing stability. Before the war, out of nearly 8,500,000 persons gainfully employed, only some 600,000, or 7%, were engaged in manufacturing and mechanical industries. It is estimated that the manufacturing part of the proposed industrialization program alone would establish a potential skilled industrial labor force of 1,500,000. Past and present Philippine trade relations are reviewed at some length, and it is pointed out that under the terms of the Philippine Trade Act of 1946, 20 years will elapse before the United States duties on Philippine products will equal one-half of the most-favored-nation rate, this providing an "ample period" in which to rehabilitate pre-war industries and establish a number of new export industries, even though it may be judged that the industries so reestablished co ld not survive full American duties. The advantages of reciprocal free trade between the Philippines and the United States are mentioned, but the volume of luxury goods being imported into this country is said to be "one apparent weakness", and controls acceptable to both countries are advocated. The authors anticipate that, geo-politically, pressure from highly organized industrial nations against undeveloped states will increase, and that therefore, together with the establishment of new industries, the Philippines should strive for greater efficiency in the production of agricultural export items. The Philippines will be hard-pressed by the growing industrial economy of China, India, and Australia. Philippine war damages are stated to have been "enormous." In real property, amounting in 1938 to P2,568,000,000, the country sustained damages estimated at P1,574,000,000, but total destruction and loss is estimated at P3,433,000,000, this including values of commandeered goods and services, Japanese currency issue, and budgetary expenditures allocable to the war against Japan. The figure still does not include the loss due to the disruption of domestic trade, estimated at P300,000,000, nor the depletion of natural resources as a result of the military occupation estimated at T 4,488,000,000. It is said to be conservatively estimated that some P9,837,000,000 would be required to reproduce all the losses sustained. Wartime casualties, including killed, missing, and injured, amounted to an estimated 752,500 persons. Against these losses, there stands the P1,240,000,000 provided by the Tydings War Damage Act, and future Japanese reparations. Of the excess plant-capacity of Japan of 30%, 5% has been assigned to the Philippines, and the authors state that the various possible industrial allocations have been fitted into the proposed overall Philippine industrialization program. The employment of the equipment acquired as reparations is considered practical and will reduce the financial strain of recovery upon the national income. The organization and present projected activities of the National Development Company are next taken up; also the activities of other government corporations. Approval is expressed of the plans for the reorganization and integration of these various companies. The writers advocate the establishment of National Development Company *Population 19,000,000, of whom 8-1/2 million were gainfully employed before the war, about 41%o in agriculture, 29% in domestic and personal service, 19% in industry, trade, and transportation, and 11% in professional services. **Total land area 73,000,000 acres of which about 57% is forest land and 43 % agricultural and other land; nearly 85% still is public domain; land available for agriculture amounts to 29,000,000 acres, only 10,000,000 of which is under cultivation. 186

sales offices in the United States, declaring that though the Philippines is an independent nation, it still enjoys special relationships with America which, if properly nurtured, will prove of advantage in holding the American market. A proper development of this market would ultimately enable many Philippine industries to stand full American taxation, according to the Report. Rigid inspection should, however, be maintained to enforce standards of sanitation, purity, uniformity, and identification. In conjunction with the proposed industrial program, the authors advocate the construction of model communities, which project may be inaugurated by the existing Urban Planning Commission, especially in two areas, one centering in Manila and the other on Pangail Bay, Lanao, the site for many of the proposed new industries because of the hydro-electric development projected there which would have an ultimate output of 200,000 KW. "All aspects are favorable and result in the assumption that a new major city will be the outcome, to be located in Lanao." The Report, in this section, also stresses the need of vocational education for a limited period of years. Training should be given in heat flow, fluid flow, methods of comminution, mechanical separations, distillation, drying, gas conditioning, evaporation, absorption and extraction, mixing, and in the movements and storage of materials. Theoretical studies should be given six months and these would be followed by not less than six months of actual work in machine operations and other work in connection with designated manufacturing processes. The authors declare that the importance of the rehabilitation of the Bureau of Science can not be overemphasized, and recommend that it be split into the Bureau of Science (proper) and another bureau to be called the Bureau of Applied Research, both to be placed under the Office of the President in order to facilitate close liaison and cooperation with the National Economic Council. It is pointed out that the industrialization of no country has been accomplished without the aid of the government in one form or another, and that in the Philippines the Government has from the first played an important role in that respect, not solely for profit, but for the benefit of the people. "In all cases, the Government has led the way, thereby setting an example for timid private capital. Once private capital is willing to assume full responsibility, these industries can be conveniently and profitably turned over to individuals". The National Economic Council should be entrusted with the task of framing the general economic plan, organizing economic planning boards for all the principal industries. The financial aspects of the plan should also come under the jurisdiction of the Council which should cooperate closely with the various government banks. A Tariff Commission and a Bureau of Licenses (Import, Export, and Manufacturing) should be integrated with or come under the supervision of the Council. "Its first official act... should remove the National Development Company and all other government business ventures from political control". The next act of the Council should be to "make a broad statement qf policy to private industry.... It should first offer to help with plans, encourage and enter into joint partnerships, or, second, agree to sell to private enterprise any government-owned industry providing the Council has been satisfied that such private enterprise is capable of assuming its full responsibilities." On the question of the licensing of industries, the authors state that this is controversial in scope under a system of free enterprise, but that nevertheless certain protective devices must be developed to achieve stability. "A mild imposition of restrictive measures does not place undue hardships on industries, but rather inclines toward preventing unnecessary competition and speculation." The authors emphasize the importance of the "pegging" of the peso to the dollar, as a result of which the peso is recognized as a stable monetary unit. They endorse the proposal of the authors of the Joint Philippine-American Financial Commission that a central bank be established immediately in order to provide an agency which can discount loans made by private banks, thus putting such loans back into productive use. A central bank would also permit a wider currency circulation and stimulate internal trade and construction. They express approval of the "parity" principle in the Philippine Trade Act of 1946, which grants equal rights to American citizens in the development of the national resources and in the public utility field, and advocate joint participation in any new ventures. However, in that connection certain important issues are cited, as quoted from the Journal of Commerce (New York): (1) The recommendations of the Joint Philippine-American Finance Commission (now submitted), (2) the easing of the material supply situation in the United States so that construction materials can be imported, (3) conclusion of a treaty eliminating overlapping taxation, (4) determination of the amount of war-damage compensation to be paid to private enterprise, and (5) the clarification and strengthening of the trade position. The authors therefore state that "it appears that it will be some time before American capital will take advantage of the equal rights granted it". However, they conclude that "if joint capital ventures, both Philippine and American, can be instituted with incentives provided by the Government for the establishment of any new industries under such management, it appears that a bright future is in store for the country."* The limiting factors are recognized to be whether or not there will be an enforcement of an adequate and workable system of licencing, to prevent over-production and unnecessary depletion of natural resources, and whether or not there will be a clearly defined statement of government policy as to what protection and assistance will be offered to all new ventures, such as a tax-free period of four years, which has been suggested. The first, short-range program of five years, embracing the major portion of the Japanese reparations equipment and other new equipment which may be purchased, will involve an expenditure of around P500,000,000, according to the Report. The total required for the next ten to fifteen years is P1,567,000,000 for the rehabilitation of pre-war industries, including sugar, mining, communications, highways, port facilities, sanitation, water systems, and other small pre-war industries, and for the capital requirements of new industries which may be developed during that time. The capital requirement for housing, hospitals, and schools for the next ten years is estimated at P1,600,000,000. This comes to a total capital cost of over P3,000,000,000, but the authors point out that such a capital investment would increase the assessable valuation of real estate and industrial establishments as of 1938 by around 120%, exclusive of other increased valuations. The authors endorse the recommendation of the Joint Philippine-American Finance Commission that the Government open bond-subscription drives for the sale of nonassignable and non-negotiable bond issues to the general public, and also the recommendation of the same body that (Continued on page 208) *With respect to such joint ventures, Mr. J. S. Hinchman, spokesman for the Beyster Corporation, said in one of his radio-talks on the Report broadcast by KZRH: "It is our opinion that the Government... would prefer that private capital and individual initiative and enterprise develop to the full the natural resources and potentialities of the country, unfettered by government regulations and restrictions. However,... the Government is willing to assist, by joining with private interests to any extent necessary to advance these aims. Further, in the event that private interest is entirely lacking, then the Government is willing to accept sole responsibility in the 'pioneering' in any particular field until such time as private interests have expressed a desire and have demonstrated the ability to supplant government enterprise in that field.... To answer criticism advanced that the Government wishes to maintain a 51 % interest, it is stated that only in the case where the Government invests more than one half of the capital requirement, either in the form of finances, goods, or services, will a controlling interest be expected.... Even under these circumstances, the Government has directed that private management, with certain directorship controls, be retained and maintained. 187

Legality of the Temporary BuildingPermit Ordinance Letter from Mr. L. D. Lockwood EDITOR: American Chamber of Commerce Journal Manila Dear Sir: I am enclosing herewith a copy of a City Ordinance, or more strictly speaking, Resolution No 288 of the City Council. I believe that the greatest publicity should be given to this ordinance, so that the property-owners of Manila will know what is going on. Article 3, Section 1, Clauses 1 and 2 of our Constitution read: 1. "No person shall be deprived of life, liberty or property without due process of law, nor shall any person be denied the equal protection of the law." 2. "Private property shall not be taken for public use without just compensation." In my humble opinion, Resolution No. 288 violates these provisions of the Constitution. L. D. LOCKWOOD RESOLUTION NO. 288 RESOLUTION AUTHORIZING THE CITY ENGINEER TO ISSUE TEMPORARY PERMITS FOR THE CONSTRUCTION OF BUILDINGS OR STRUCTURES AFFECTED BY THE PROPOSALS OF THE NATIONAL URBAN PLANNING COMMISSION FOR THE PHYSICAL DEVELOPMENT OF THE CITY OF MANILA, UNDER CERTAIN CONDITIONS. RESOLVED, That the City Engineer, be, and he hereby is, authorized to issue temporary permits for the construction of a building or structure, or an addition to any existing building or structure within the City of Manila, to be affected by the improvements or proposals embodied in the plan of the National Urban Planning Commission at present under preparation, subject to the conditions set forth in the hereunder application form to be issued by the Office of the City Engineer for this purpose: Manila....................... The City Engineer Manila Sir: I have the honor to request authority to construct or repair a strong m aterials......................................... as per plan attached, located at............................................................. It is understood that the construction of this building or structure shall be subject to the following conditions: (a) If the proposed planning for the City of Manila and proposed revision of building ordinance will, any way affect this structure, the same will be removed within such reasonable period as may be specified in a notice to be issued by you, without any obligation or cost to the Government, subject to the conditions specified in paragraph (e) hereof. (b) It shall be understood that the term "reasonable period" referred to in paragraph (a) above will not be less than 30 days' notice from the proper city authorities. (c) All expenses for removing said structure will be for my own account and if I fail to remove it within the time specified in the notice, the Government may undertake the removal with all expenses chargeable against the undersigned. (d) The Materials removed may be sold by the Government to cover the expenses to be incurred by it in undertaking the demolition of the structure herein applied for. (e) That in the event that the improvement or proposal embodied in the plan of the National Urban Planning Commission affecting my building or structure shall not be carried out within five (5) years from the date of the issuance of the permit therein applied for, the City Government shall not compensate the undersigned of the cost of the building or for the portion thereof affected thereby. However, in the event that the improvement or proposal embodied in the plan of the National Urban Planning Commission affecting my building or structure shall be carried out before the expiration of the five-year period, the City Government shall then compensate the undersigned of the cost of the building or of the portion thereof affected thereby in the amount equivalent thereof, less the depreciation corresponding to the years that had elapsed at the rate of 20% per annum. (f) That in case of sale or other disposition of my said building or structure, the undersigned shall transfer to and impose upon, the vendee or new owner, his heirs, executors or assignee, the obligation herein above mentioned. Very respectfully, Signature............................... Address Note: Please type name and address below your signature With my consent: Owner of Lot PROVIDED, That the construction of the building or structure above referred to shall be in accordance with all provisions of the City Ordinances now enforced regulating the construction of building in the City of Manila. Adopted, August 7, 1947 Approved, Aug. 27, 1947 Answer by Mr. L. P. Croft E VERY one knows that "no person shall be deprived of life, liberty, or property without due process of law", and that "private property shall not be taken for public use without just compensation." These laws are two basic assurances of the democratic way of life for the protection of private rights, and must not be violated if the democratic form of government is to survive. But laws protecting the corporate community are of long standing and have expanded within the last half century as life has become more complex. Laws developed under the police-power to protect the "health, safety, morals, and general welfare of the people" have been considerably expanded as populations have increased and the interests of large groups have been threatened by the uncontrolled exercise of individual rights. The history of government illustrates the conflict and harmonization of the interest of the individual and of society. Usually the more "government", the more the individual must conform to the interest of the community as a whole. In the pastoral and agricultural economies, the individual could do largely as he pleased. As industry and city-life has grown, the individual has had to accept the curtailment of some of his rights. Hence the many laws, ordinances, and regulations concerning sanitation, health, and safety. We all accept traffic regulations in the interest of the common good. The right of the government to acquire private property for schools, public markets, and highways, is well established through the power of eminent domain. However, under this power private properties can not be taken for public purposes without compensation to the owner; in the Philippines, the purchase-price must be deposited by the Government in accordance with a special law. (Continued on page 206) 188

New Philippine Flag Line for the Orient By N. N. Everett President, Everett Steamship Corporation DECEMBER, 1946, marked the inauguration of the first steamship line under the Philippine flag devoted to serving the interests of trade between countries of the Orient exclusively and to the facilitating, by means of extensive transhipment services, the inter-change of commodities between the more remote areas of the Orient and world markets. In the course of World War II, the majority of shipping tonnage operated pre-war in inter- Orient trades was lost, and Japa- c nese lines have dropped from the picture. Pre-war g ling gear: lectic w operators of vessels in these trades have i.. been slow to replace lost tonnage and reestablish their form- r er services. To | meet the needs of h nations and trading communities in reestablishing and ex- panding the pre-war t inter-Orient commerce, the Everett Steamship Corporation is now operating, under bareboat The MS Carrick charter, six U. S. Maritime Commission C1-MAV-1 type motor vessels, each of 5010 deadweight tons, Philippine Registry, under their Everett Orient Line service. The Everett Orient Line vessels maintain a cruisingspeed of 11 knots. Their modern design incorporates such features as refrigerated compartments of 10,000 cubic feet capacity for the carriage of perishable goods. They are equipped with cargo-handling gear featuring electric winches which permit fast loading and discharging, and special heavy-lift gear which permits the carriage of single units up to 30 tons in weight. These vessels are now calling regularly at the ports of Manila, Shanghai, Amoy, Swatow, Hongkong, Saigon, Bangkok, Singapore, Penang, Rangoon, and Calcutta; they will call at Madras, Colombo, Bombay, Netherlands East Indies ports, Tientsin, Tsingtao, Japanese and Korean ports, and additional ports in the Philippine Islands as future trade developments warrant. In serving the Philippine Islands these vessels have brought inward cargoes of rice from Bangkok and textiles from Japan, in addition to carrying Philippine exports of copra, hemp, and general commodities to India, Japan, and principal ports throughout South East Asia. Within the first eight months of operation the Everett Orient Line has made a successful entrance into trades dominated by British and Dutch lines. In doing so, the new service has met strong opposition from old established lines which, although in many cases they can not provide for the full requirements of such trades, consider them their heritage and refuse to accept new lines within their conferences.* In several ' ship.instances, old lines have brought preseti tsure to bear upon _ shippers in an effort eto discourage them ifrom supporting Everett Orient Line. However, by maintaining a firm schequency of calls required by the trades, mte futue Thshippers are attracted to direct their support to the new service in spite of the efforts made tion through some conferences to prevent them from doing so while at the same time barring the gend at Singapore Everett Orient Line from conference membership. One of the principal features of the Line is the extensive transhipment facilities offered to ocean carriers of the Pacific which call at Hongkong and Manila. It is intended that these facilities will also be developed for European carriers, at Singapore and Hongkong. To date, movements of commodities by transhipment have been limited by high local freight rates, but more reasonable "arbitrary" or through rates are now being drawn up by the Pacific Westbound Conference to encourage the increased movement of cargoes by transhipment. While as yet the imports and exports of many countries are limited by exchange regulations as well as by internal unrest, it is anticipated that the factors which currently restrict trade will be modified if not entirely removed in the future. The Everett Steamship Corporation is planning to purchase the six vessels presently operated under the Everett Orient Line service, and the original fleet will be augmented with additional up-to-date tonnage designed to neet the growing requirements of the interOrient trade. *The conferences which operated in the Bay of Bengal and the Straits area. L 189

The Business View A monthly review of facts, trends, forecasts by Manila businessmen Office of the President From an Official Source DURING the period under review, from August 16 to September 15, many press releases were issued at Malacafian on the subject of the reorganization of the various departments, bureaus, and offices of the Government being planned during this time, but no reference to this subject will be made in this column until the changes are actually being carried out. Omitted here, too, are references to various executive orders which are adequately covered in the "Legislation and Court Decisions" column, which, beginning with this issue of the Journal, is renamed: "Legislation, Executive Orders, and Court Decisions". August 20-The President appoints Celedonio Agrava ad interim Director of Patents. Secretary of Instruction M. V. Gallego tells the Cabinet that the Government is spending P2,500,000 a year for books for the primary grades, and he and the Director of Education are asked to study the question of government publication. It is proposed that the Government hold'contests in the writing of school texts and buy the manuscripts from authors to eliminate the payment of royalties. August 26-The President in a series of proclamations authorizes the election, in the next regular election for provincial officials, of two members of the provincial boards of the Mountain Province, Sulu, Lanao, Cotabato, and Bukidnon. These positions have been appointive, but Republic Act No. 59 provided for these offices to be elective if the President "shall have ascertained and shall so declare by proclamation that the people of said provinces are ready to elect their provincial governor and the members of the provincial board". August 27-According to a Malacafian press release, the Philippine Veterans' Board, up to August 15, has acted on some 9,200 claims for pensions; of the claims approved, some 4,500 cases are USAFFE, 1,700 recognized guerrillas, and 1,053 "deserving" guerrillas and former political prisoners; more than 7,200 veterans are now attending schools and colleges under the privileges conferred on them by Republican Act No. 65; some 4,000 veterans have been found work; 180 have been granted loans. August 28-The report of the Collector of Internal Revenue shows that collections from July 1, 1946, to June 30, 1947, amounted to P173,303,725.18. This indicates an increase of P124,565,264.76. Collections from July 1, 1945, to June 30, 1946, showed an aggregate sum of P48,741,460.42. Excise taxes on cigarettes alone in 1947 showed a collection of P4,341,265.10. In 1946 the collection was P3,105,903.83; an increase of P1,235,361 27. The total excise tax on imported cigarettes for the fiscal year from July 1, 1946, to June 30, 1947, was P35,697,871.09. Income-tax collected for the month of June, 1947, amounted to P1,007,998.39. Compared with the 1946 collections for the same month, P250,573.63, the increase was P757,424.76. For the fiscal year beginning July 1, 1946, to June 30, 1947, the total income-tax collection was P19,849 852.93, as compared with collections from July 1, 1945, to June 30, 1946, of P7,093,878.83, an increase of P12,755,974.10. Early in 1946, it was expected that the collection would amount to over P100,000,000 as compared with that of the previous year of P48,741,460.42. Later in the year, however, it was estimated that it would reach a total of P150,000,000, which was still P23,303,725.18 short of the actual collection. August 31-Malacafian releases the text of a radio address by Secretary of Justice Roman Ozaeta replying to critics of his interpretation of the Constitution which prohibits the sale of private agricultural land to aliens. His opinion is that aliens can not acquire or hold any kind of public land, whether agricultural or residential, or any private agricultural land, but that they may acquire and hold private residential land. "That is not strange; it is also allowed in every country of the world, as far as I know." Malacafian announces that the RPD has processed about 16,000 out of 24,000 claims for USAFFE and guerrilla back-pay and that some 2,000 checks have been issued. The President has asked that the work be expedited. September 2-In a conference with the President, the Board of Governors of the Manila Stock Exchange promise their cooperation with the Government in maintaining a conservative and stable stock-market, agreeing to deal only in good stocks and to avoid watered stocks. The officers of the Board are Pacifico Ledesma, president; Santiago Picornell, vice-president; Anselmo Trinidad, secretary; A. C. Hall, treasurer, and Dee K. Chiong, assistant treasurer. September 4-Malacafian releases the text of an agreement between the Governments of the Philippines and the United States regarding the radio broadcasting facilities for the latter in the Philippines. Under the agreement, radio-time over the facilities now existing or to be constructed will be divided between the two Governments. (Two 50-kilowatt transmitters now exist.) Pending ratification by the Philippine Senate, the agreement enters into force as a modus vivendi on the date of signature (this date). The agreement would remain in force for ten years and thereafter for additional five-year periods unless at least one year before the beginning of any one such five-year period one of the contracting Governments gives notice of an intention to terminate it. However, the United States Government has the right to terminate the agreement at any time on six months' notice "in the event that circumstances make it impracticable" to maintain it. Upon termination of the agreement, the equipment will become the property of the Philippine Government without cost, provided the Philippine Government for a period of five years thereafter will use it solely for its own purposes end will not lease or sell it or use it for commercial broadcasting except to yield income sufficient for proper maintenance and operation. Malacafian issues a statement in connection with the administrative investigation of Bibiano L. Meer, Collector of Internal Revenue, which declares that the President is convinced that the charges brought against him of serious irregularities in the performance of his duties were "absolutely without foundation". September 6-A group of retired teachers calls at Malacafian to request the grant of three years back-pension or a substantial part of this. There are 1,181 Filipino and 56 American pensioners; the total amount involved is P3,135,000. September 8-Malacafian releases a letter, dated August 29, received from the Philippine Pharmaceutical Association, urging the establishment of a botanical garden for scientific purposes. 190

Another release covers the suspension by the Collector of Internal Revenue of eight employees of the Bureau of Internal Revenue in Cebu charged with accepting bribes from merchants for "fixing" tax-payments. September 9-The total revenue collections for the first month of the present fiscal year, that is July, 1947, reached the all time high of P26,251,703.89, which, compared with the total collections for July, 1946, shows an increase of P13,093,168.49. The next highest collection was made in April, also of this year, when the total revenue collections amounted to P22,048,282.37. September 10-The President, accompanied by a party of officials, leaves Manila for a trip south on the S.S. Moleho. September 12-Malacafian releases the copy of a letter, dated September 9, sent by the Secretary of Justice to the Register of Deeds, Pasig, Rizal, stating that investigation has shown that men in his employ have accepted "tips" with his tolerance or without objection on his part, and calling his attention to a 1941 ruling of the Civil Service Board of Appeals which declared that the asking or receiving of "tips" in the government service is one of the most pernicious evils... which must be stamped out. The letter concludes: "As chief of the office, you are responsible for the proper discipline of your subordinates... tolerance on your part of their misconduct would constitute dereliction of duty". September 13-The President, in a speech in Zamboanga, suggests a zonification plan for the city; he was reportedly irked by "an ugly concrete Chinese warehouse, like a huge box" erected near Plaza Pershing He also states that the former San Ramon Penal Colony, near Zamboanga, will be converted into a vocational school, with about half of the reservation to be turned over for farming purposes to veterans. The President's Arbor Day message is released, asking the people to line every street and road with beautiful and sturdy trees. Malacafian releases the text of a speech of Secretary of Instruction Gallego in which he states that during the past school-year, public school children and their teachers produced a total of P62,675,000 worth of food products. He states the school food-production campaign will,be extended to include the planting of fruit trees and other trees of economic value. There are today some 3,500,000 children in the public schools; teachers number around 60,000. September 14-The President in Davao states in a speech that former Japanese lands will be justly subdivided and that priority will be given to USAFFE veterans and guerrillas, recognized or not. He urges the squatters, whom he calls "occupants", meanwhile to take good care of and to cultivate their holdings, and emphasizes the importance of the abaca industry, condemning the destructive stripping-methods now practiced by many. September 15-At a conference with ex-guerrillas at Talomo, Davao, the President instructs Provost-marshal Jose Tereza to organize patrols to stop the illegal cutting and stripping of hemp by roving bands. He asks the "occupants" to organize themselves and to cooperate with the National Abaca and Other Fibers Corporation. Stock Market July 16 to August 15, 1947 By A. C. HALL A. C. Hall & Company A FTER early indecision, the mining-share market developed strength and prices moved forward easily on expanding volume. The rise topped out on August 26, and since then the market has displayed an easier tendency on very limited activity. MANILA STOCK EXCHANGE LISTED MINING SHARES August 16, to September 15, 1947 Acoje Mining Co..... Antamok Goldfields.. Atok Gold Mining Co. Baguio Gold Mining Co................ Batong Buhay Gold Mines............ Big Wedge Mining Co................ Coco Grove, Inc...... Consolidated Mines, Inc............... I.X.L. Mining Co... Lepanto Consolidated Masbate Consolidated Mindanao Mother Lode Mines....... ParacaleGumausCons. San Mauricio Mining C o.............. Surigao Consolidated. TOTAL SALES HI-H Low CLOSE CHANGE 148,000P.255 P.22 P.22 off.02 - -.025 bid up.003 146,000 1.10.95 1.10 up.10 2,370,000.0068.0066.0066 off.0004 96,500 1.10 1.00 1.02 - - - -.026 bid 11,245,000 60,000 339,000 30,000.0!3.011.013.075.065.065.39.345.375.043.04.043 off.04 up.001 up.001 off.015 up.035 up.003 up.04 up.01 off.01 off.015 372,000.80. 76 10,000.07.07.80.08 52,500.25.22.22 316,100.29.26.26 From a technical viewpoint, it is the writer's opinion that the market is in a bull trend which commenced on September 26, 1946, with our average at 25.55. The first leg of this primary trend terminated on February 20, 1947, at 43.66, and was followed by a secondary correction which carried prices down to 30.45 on July 7, 1947. Judging from the market action since then, it appears likely that the correction terminated on that date, and the market is now in the second stage of a primary uptrend which may be expected, in due course, to carry prices through the previous high point established on February 20, this year. The most important market news of the period under review, was Atok's declaration of a 20% cash dividend payable on October 1 to stockholders of record of September 27. This is the first post-war dividend declaration by a Philippine mining company, and the news was very well received: the stock advanced from 95 centavos to P1.10 on the announcement. Another important news item was the Presidential order allowing the exportation of gold licensed prior to July 19, which had been held up here in transit, when the Secretary of Finance restricted exports in compliance with Philippine commitments to the International Monetary Fund. With the issue of the order, gold to the value of some P5 millions was exported by air immediately. The removal of this potential supply has stimulated demand locally for the precious metal, and buyers have advanced prices. As regards individual issues, a number of satisfactory advances were registered. Atok, Consolidated Mines, and Lepanto, on a percentage basis, were the best performers, but Mindanao Mother Lode at 80 centavos was up four points and has thus registered an advance in each of the last four months. In the unlisted mining group, trading was inactive. About 3,000 shares Balatoc changed hands between P4.20 and P4.00. Itogon was off 1 centavo to 6 on a turnover of 127,000 shares, and United Paracale traded from 9-1/4 to 10 centavos a total of 124,000 shares. East Mindanao was traded at 1 centavo and Suyoc Consolidated at 3 centavos. In over-the-counter dealings, Benguet Consolidated opened at P4.30, high of P4.60, low of P4.30, closing at P4.40, with total sales of 21,000 shares. Antipolo Mining was active, and over 1,200,000 shares were traded from 7-1/2 to 10 centavos, closing at the latter figure. Far East Oil was less active than during the past two months. This stock traded between a high of 59 centavos, a low of 51 centavos, and closed at 53, off 5 centavos, during the period, on a turnover of 715,000 shares. 191

In the commercial and industrial section of listed stocks, not much business was reported. A total of 300 shares Bank-of the Philippine Islands were done at P75, up P3 from last sale, and a small lot of Filipinas was done at P20.50. During the period, 10,000 Pambuscos were traded at P1.52, up 2 centavos from last sales; on a total turnover of approximately 40,000 shares, Philippine Racing lost four points to P1.10. About 6,000 shares each Marsman Preferred and Marsman Common were reported at 55 and 40 centavos respectively, unchanged from previous sales. Trading in San Miguel shares continues temporarily suspended, but it is expected that registration of the new stock will be completed on September 22 when trading will be resumed. Sugar shares were not in much demand. The following business was reported: Bais, 55 shares at P605; Carlotas, 305 shares from P120 to P110; Bacolod-Murcia, 510 shares at P10; and Victorias, 157 shares at P110. Unlisted commercial stocks continued inactive. 650 shares Jai Alai were traded between P16 and P15, the latter price making a decline of P2 from last month's sales. A sale of 100 shares Philippine Air Lines, new stock, was reported at P14; and about 4,900 shares Manila Jockey Club were done at P2.90, off 10 centavos from the previous month's close. Credit By DUNCAN BURN Association of Credit Men, Inc. (P.I.) AS pointed out previously, the extension of credit is now in a beginning stage. Comment has been made on the benefit to be gained from a thoughtful handling of credits and from cooperation by those extending credit. An indication of the increase in the use of credit is shown in the activities of the Association of Credit Men, Inc. (P.I.), which has resumed the operation of a Ledger Interchange Bureau. This Bureau, as the name implies, is concerned entirely with the actual interchange of ledger information among member firms. Obviously, due in part to the limited uses of credit so far, and in part to the only recent resumption of the activities of the ledger interchange, the volume of clearances has been far less than before the war. Some statistics have recently been tabulated which should prove of interest to businessmen in general. Between July 29, 1947, and September 29, 1947, the Bureau cleared process-sheets through member firms covering a total of 615 credit-accounts. The initiation of a clearance depends upon a specific request from a member of the Association, and in each instance the name inquired upon was already on the books of the inquiring member. On July 29, 1947, process-sheets were sent to the cooperative memberships in the Association which then totalled 37. By September 29, the members actively cooperating in completing process-sheets had reached 48. For a total of 615 names circularized, 2858 responses were received indicating complete details of ledger experience. Thus 4.6 was the average response per clearing. Other responses provided information as to cash transactions and incidental information. A considerable variation in num bers of responses was noted in the various names processed. In some instances it happened that only one member firm had experience on a particular name. The highest number of responses on a single name was 18. Figures obtained showed also a wide spread in maximum credit extended. The lowest figure shown on any process-sheet was only P2, while the highest credit appears at P262,000. The average response per clearing has increased considerably during the later part of the period covered, and this is steadily continuing. The results give an indication of the benefits that can be obtained. The data provided herewith includes no statistics showing the details reported which had a bearing on the terms of individual sales, the amounts owing, the amounts past due, the manner of payments, or other specific comments of considerable value to interested persons. There is noted, in general, a slight increase in the extension of credit, both in amount and in numbers of firms extending it, and in numbers of purchasers using credit. There continues to be a general spirit of helpfulness and assistance between local business establishments and businessmen. It is to be hoped that as the extension of credit becomes more wide-spread and involves larger amounts and more numerous transactions, the same cooperation will continue. Electric Power Production (Manila Electric Company System) By J. F. COTTON Treasurer, Manila Electric Company 1941 Average —15,316,000 KWH 1947 1946 Kilowat Hours Kilowat Hours January............................ 17,543,000 February.......................... 17,503,000 March............................. 20,140,000 April.............................. 19,601,000 May............................... 19,241,000 June............................... 17,898,000 July............................... 22,593,000 August............................ 23,358,000* September......................... 23,25G,000** October.......................................... November....................................... December........................................ 9,286,000 8,778,000 10,122,000 9,849,000 11,132,000 11,432,000 12,333,000 14,411,000 15,018,000 16,787,000 15,767,000 17,984,000 *Revised **Partially estimated Electric production in September was slightly lower than August due to one less day. Output in September, 1947, was 8,232,000 KWH greater than September, 1946, an increase of 54.8%. City Planning By LoUIS P. CROFT Acfing Director, Urban Planning Commission S QUATTING, sidewalk-peddlers, and general abuse of public property have continued in Manila beyond the so called "emergency" period. The violations of existing laws and ordinances by squatters are demoralizing to the entire population. Legitimate business establishments paying rent can not and should not have to compete with street-peddlers and squatting merchants. Many sidewalks are now blocked for pedestrian uses, as well as always ugly and filthy with debris. Lately slot- and weighing-machines, stocks of merchandise, and other obstructions have been further encroaching upon the sidewalks. Crowds gather around, and the pedestrian has to fight his way through or use the dangerous and usually inadequate vehicular lanes of the street. Allowing squatting and unlawful peddling immediately after the war, may have been justified, but if these practices are not soon prohibited the rehabilitation of Manila will be further retarded. Squatting and unlawful use of public or private property is disgusting to law-abiding citizens. It is even more demoralizing to those who violate the law. They soon lose all sense of property rights and respect for law in general, so vital to the well being of any nation. 192

Squatters and peddlers are aggravating the economic situation of Manila. The large proportion of the people who are "buying and selling," is an aftermath of war. Normally, only a very small percentage of the population is needed for merchandizing. The great mass of the people must produce if the Philippines is to move forward. Since the city government lacks funds and personnel to enforce the city ordinances, why do not the proprietors on the Escolta band together and volunteer to do something about this in cooperation with the city authorities? Every one would be the winner in the long run. Local merchant associations on Dasmarifias, Rizal Avenue, or Quiapo could no doubt improve the present deplorable situation if impressive pressure is exerted in the right direction. Real Estate By C. M. HOSKINS C. M. Hoskins P Co., Inc., Realtors T HE real estate market was relatively dull during September. Brokers believe that most of the pre-war houses which were for sale have been disposed of, and that prices on newly constructed homes are meeting strong buyer-resistance. The same is probably true of commercial properties. Several damaged buildings previously on the market have been withdrawn and are being rehabilitated by their owners. Buyers of vacant land are active in the small-lot field. Sales of commercial lots and land for investment construction are being delayed until materials for permanent construction are available. Forecasts are generally made that much needed building materials from abroad will begin arriving in quantity by the end of the year, as a result of large United States production in the face of the winter lull in building activity there. An item which intrigues local real-estate people is the report that exports of building supplies from the United States are quite heavy, yet the Philippines is getting but a small share. During the first six months of 1947, over 30,000 bathtubs were exported from the United States. How many did the Philippines receive? pose are now springing up,-buildings which make that particular locality no longer as suitable for residences or apartments, and this causes the landowners to wonder if it would pay to build them there. Would people want to live in that particular locality if the neighborhood is generally given over to quite a different type of development than existed before the war? Until the general tenor of a locality has been established or re-established, many owners will continue to hesitate over what type of buildings they should erect, and this is now delaying the improvement of property is many areas. There is also the problem offered by the temporary shacks that have been erected in many parts of Manila. Will people want to rent even a good house, which stands among a group of unsightly hovels? A trip through Malate and Ermita, and along Dewey Boulevard will illustrate my meaning. The City Plan lays stress on developing the North Port Area as a bodega area. This is of interest to many firms, but with the lack of decent streets in that area and the difficulty of getting to it without going through the congested parts of the city, cause them to abandon the thought and to seek locations elsewhere. Were that area more easily approachable now, there would doubtless be quite a building-movement in that direction. As things are, firms are establishing themselves elsewhere. Records in the office of the City Engineer for the first seven months of the year show: No. of permits issued Month January............................ 553 February........................... 609 M arch.............................. 585 A pril............................... 608 May............................... 639 June............................... 447 Total Amount P 6,047,890 P 7,631,090 P 8,039,190 P 8,106,820 P 9,010,420 P 5,797,240 An average of P13,588.76 per permit. Total of permits issued for August is not yet available but the records show aOne story building on Legarda and Manrique costing...... Three story building on Quezon Boulevard costing......... Two story building on Atlanta Street (Port Area).......... Three story building on T. Pinpin costing................. September permits to Sept. 27 show aFour story building on Herran and Dakota costing......... Three story building on Calle Dart costing............... Three story building on Ilaya (Tondo) costing............ Three story building on P. Blanco and Regidor............ P120,000 110,000 200,000 200,000 Construction By H. H. KEYS Architect NEWS from the United States is that the price of steel is to be advanced. How soon the advance will be felt here can not be said, but advances in prices generally travel much faster than do reductions. This will effect COMPARATIVE structural steel and probably Prepared roofing, and eventually all Note: A large percentage items which are made mainly Japanese Occupat. of steel. P500,000 150,000 120,000 300,000 The locations given show that the erection of the larger buildings is not confined to any particular part of the City but is quite well distributed. E STATEMENT OF REAL ESTATE SALES IN MANILA by the Bureau of the Census and Statistics of 1945 sales and a diminishing percentage of 1946 sales, represent ion transactions not recorded until after liberation. 1940 The changed class of buildings in various localities and their uses, presents a problem to the owner of property who would like to rebuild. Where formerly, for example, there stood a fairly good class of apartments and residences for rent, buildings for quite a different pur January.............. February............. M arch............... April................ M ay................. June................. July................. August............... September............ October.............. November............ December............ TOTAL............... P 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 P17,974,844 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,235 (?) P10,647,285 1945 P 7,943,605 1,337,830 (?) 213,262 962,008 1,212,780 1,123,565 699,740 1,870,670 2,096,893 2,555,472 2,874,408 P22,890133 1946 P 4,385,011 2,267,151 2,622,190 1,916,293 3,684,937 3,637,956 4,974,862 4,438,510 4,698,896 5,545,800 3,340,382 4,025,926 P45,537,914 1947 P 6,030,012 7,217,317 7,166,866 8,611,076 4,618,181 3,988,560 4,097,183 5,627,572 P47,356,767 193

Ocean Shipping BY F. M. GISPERT Secretary, Associated Steamship Lines E XPORTS for the month of August showed a decided increase over the preceding month,-146,851 tons for August, as against 91,939 tons for July. Of considerable interest were the first shipments of logs and lumber to be made since liberation during this month. The shipments were small, amounting to only 1,003,409 bft., but all indications promise steadily increasing shipments. This month completes one year during which reliable statistics have been compiled, and it is interesting to note how exports for August, 1946, compare with exports for August, 1947. Total exports for August, 1946, and August, 1947, show as follows: United States Oriental Miscellaneous and Canada Ports Europe Ports Total Sailings Tons. August, 1946... 46,875 9,061 1,350 - 57,286 36 August, 1947... 92,811 3,809 37,710 12,521 146,851 72 These figures broken down to the most important commodities, show that considerable strides have been made in reviving exports.-, MAI lO~h,o~ Cigars................................... Desiccated Coconut....................... Coconut Oil............................. Copra................................... Copra cake.............................. Hem p (bales)............................ Logs and lumber (bft.).................... Ores..................................... R ope.................................... Tobacco................................. Sugar.................................... 15 723 34,989 1,029 33,959 118,729 4,000 170 255 1 5,775 1,033 86,822 5,299 84,052 1,003,409 22,954 278 531 CONSIDERING the high percentage of pilferage, theft, and damaged cargo, with its accompanying high rates for insurance, it should be of considerable interest to local importers to know about the new type of marine cargo-container invented and manufactured by the Dravo Corporation of Pittsburg, which is already being widely used in the United States/Europe trade. At present the container is only being manufactured in one standard size but it is proposed to produce other sizes to meet special merchandise requirements. The container is 7 ft. 9 in. long, 6 ft. 5 in. wide, and 6 ft. 10-1/2 in. high. It weighs 1,650 pounds, has a load capacity of 12,000 lbs., and a cubic capacity of 277 cubic feet. The frame consists of four corner posts of 9 in. x 9 in. open boxshaped sections of 11-gage sheet-steel, connected at the top and bottom by angle-members. The walls are of 18-gage sheet-steel, formed to provide vertical reinforcing corrugations about 4 in. wide and 2 in. deep. The floor is 16-gage sheet-steel laid on reinforcing 14-gage sheet-steel with formed corrugations. Across the bottom are reinforcing straps which also serve as rests for fork-trucks. The roof is of 16-gage corrugated steel covered by flat 16-gage sheet-steel. Double doors of the same material as the wall provide an opening 57 in. wide by 71-1/2 in. high. Latches at the top and bottom of the doors are operated by a lever equipped with hasp for securing with padlock or seal. Horizontal pins or lugs which fit into recesses at the four corners of the roof can be used when handling by crane. Hinged legs, which fit into roof recesses when the containers are tiered for storage or shipment, provide a floor clearance of 5 inches when folded-ample for a fork-lift or fork-truck-and 12 in. when upright, which is high enough for a platform-truck. The container is weatherproof and can be stored in the open with a minimum loss of space. The advantages of such a container are obvious and numerous. The container is filled at the manufacturers' plant and the contents are undisturbed until they reach the consignee's warehouse. No packing at all or only light packing is needed for the merchandise, and this saving in the weight of individual packing tends to offset the weight of the container; and by the same token the saving in packing 'costs tends to offset the cost of the container. The exporter fills the container and hands the carrying vessel a locked, sealed, weatherproof, and breakage-proof container, which is handled as one unit until deposited with the consignee, instead of being handled as numerous individual packages, boxes, cartons, or crates which are easily broken, stolen, or pilfered. The saving in insurance is considerable since it is reported that marine underwriters have reduced base rates 50% when goods are shipped in this container. Inter-Island Shipping By D. M. CAMERON Everett Steamship Corporation ALL inter-island shipping companies will agree that one of the weightest problems facing them at present is the lack of sufficient freight-tonnage to be lifted both inward and outward. Copra and hemp which, before the war, usually moved by inter-island vessels to Manila, are now being loaded direct from every port of the Philippines on ocean-going ships. Exporters of hemp generally prefer to ship their hemp to Manila for transhipment on ocean-going vessels, provided that the transhipment expense is borne by the ocean-vessel, and this is being done on hemp-shipments to the United States. This helps hemp exporters as it saves them the necessity of acquiringextensive warehouse-space to store their stocks pending shipment. It also saves their capital being tied up for long periods, as parcels too small for a direct call can be moved more frequently. At present, the European Freight Conference will not absorb the transhipment expense of hemp. Agreement to this, would result in additional tonnage for inter-island vessels, which is very much needed at this time. Expenses of operation are far in excess of those prevailing in late 1941, because of increases in wages and the cost of stores, particularly fuel, as well as in charter hire, which totals to much more than the pre-war amortized building-costs. As vessels are much larger than the trade warrants, operators find themselves in the position of paying high costs for moving empty large space from port to port and receiving freight rates only 35% higher than the pre-war rates. Increases in rates, at least in certain categories and between certain ports, are imperative. The De La Rama Steamship Company has recently place the S.S. Molino into service, the former S.S. Waialeale, of the Hawaiian inter-island trade. The Molino is a 3092-ton vessel powered by steamturbines and equipped with accommodations for 192 firstclass passengers and 500 third-class passengers. She has been assigned on the Iloilo, Maribojoc, Zamboanga, Parang, and Davao run. Also acquired by the De La Rama Company, is the M.V. Marlingspike Hitch, a C1-MAV-1 type of vessel. This ship is chartered from the U. S. Maritime Commission, and has been assigned on the Iloilo, Zamboanga, Davao run. Other ships operated in inter-island trade by subagents of the U. S. Maritime Commission and which have now been turned over to local inter-island shipping companies for their operation, are the M.V. Boatswain Hitch, the S.S. Northern Hawker, Northern Wanderer, William Nott, and Charles McDonnell, which have been turned over to the Philippine Steam Navigation Company, for which the Everett Steamship Corporation are managers. These ships have been assigned on regular schedules to different parts of the archipelago. They have good accommodations for a limited number of first-class passengers and accommodations for third-class passengers. Thirdclass passengers are provided with meals and sleeping-cots. The M.V. Snug Hitch, also formerly operated for the U. S. Maritime Commission by the Everett Steamship Corporation, has been chartered to the Compania Maritima. Also turned over the Compafiia Maritima are the George Tucker and the Masthead Knot. The only ships still being operated by the U. S. Maritime Commission are the Bowline Knot and the Esther Johnson, under the operation of the American President Lines. With the turning over of these ships to private operators, the public in general will benefit as a result of competition. 194

Air Transportation By V. A. BRussoLo Vice-President, Philippine Air Lines IN a concise and thorough exposition of the aviation industry and its possibilities, Col. Jesus Villamor, Director of Aeronautics, succeeded in convincing the Aeronautics Commission headed by Mr. Pio Pedrosa that all proposed government regulating bodies on civil aviation in the Philippines should be under the Department of Commerce rather than under Public Works and Communications. Giving facts and figures, Colonel Villamor also pointed out that the proposed International Airport could be operated on a profitable scale as a government corporation, with the help of American CAA technical personnel at the beginning. Usually characterized by a noticeable decrease in passenger revenue due to bad weather, the months of August and September still accounted for some 40,000 passengers flown along domestic routes by local air companies, while traffic on overseas trans-Pacific and China airlanes has also been reported fairly heavy. With the end of the rainy season in view, several airfields which were previously out of commission have been declared serviceable once more. Prominent among these are the important airfields at Cotabato and Jolo. Daily flights to these points have been resumed. Activities among local airlines have been wide and varied. Commercial Air Lines (CALI) which was granted a permit to operate locally on regular schedules, has completed a series of survey-flights to points it intends to service in the future. Most of the defunct FEATI stocks and buildings at Grace Park have been transferred to Makati Airport, following the sale of that company to PAL. The project entailed lifting and moving of entire buildings from one airport to another. There are possibilities that the Philippine Army Air Force may take over Grace Park. In the international scene, Pan American reports that the "sleeperette", a combination seat-and-bed, is proving popular on long flights. PAA has also announced the resumption of its pre-war service to Hongkong. This route was heretofore being served by PAL, CALI, and TAA. Northwest Air Lines, which flies the Aleutian route between Manila and New York, has been granted permit for stopovers in Tokyo. Similarly, Pan American is now operating a route between the United States and Japan. Prominent aviation figures called at Manila on a survey-visit of the International Air Transport Association (IATA) prior to an important air-confab which is to be held in Rio de Janeiro. Representing the Philippines at this IATA conference is Mr. Walter Linder, executive vice-president of Philippine Air Lines. Gold By CHAs. A. MITKE Consulting Mining Engineer T HE Act of April 2, 1792, established the first monetary system of the United States under the Constitution and fixed the weight of the gold dollar at 24.75 grains of pure gold, an ounce then being worth $19.39. In 1837, the gold content of the dollar was reduced, making the price $20.67 an ounce, which, for nearly 100 years remained the standard price of gold in the United States. Under the gold Reserve Act of January 30, 1934, the weight of the gold dollar was fixed by President Roosevelt at 15-5/21 grains of gold, 90% fine, i.e. 13.71429 grains of pure gold. This action established the dollar at 59.06% of its former weight, and raised the price of gold from $20.67 to $35 an ounce, the price which remains in force at present. The United States dollar today buys much less than it did in 1934, but the gold content and price remain the same. There is a persistent rumor that the gold content of the dollar may be lowered; in other words, that the price of gold may be raised. Those who believe that there is some foundation for this expectation, look for an increase in the price within the next four or five years, especially if there is a resumption of the use of gold as the basis for foreign currencies. World conditions, however, may force a re-valuation much earlier. Great Britain is facing a crisis. Her loan from the United States is being rapidly depleted, and her exports have not increased to a point where they can take care of her needs. Recently, she withdrew and sold some $80,000,000 of her "last-ditch" $2,400,000,000 gold-reserves, to buy vitally needed supplies in the United States. Foreign Secretary Ernest Bevin has suggested a redistribution of the gold the United States has buried in Fort Knox, at a price, in order to increase the purchasing power of devastated areas of the world. This has been pronounced "cock-eyed" by U. S. Treasury officials, who assert that even if the suggestion was followed, the gold would soon find its way back to the United States. To the average layman it does not seem any more cock-eyed than selling goods on long-term promissory notes, which the purchasing nations may never be in a position to redeem, or furnishing them on a lend-lease basis. At least, the United States would get something back again-its gold. Now, it gets nothing. Moreover, if a guarantee accompanied the distribution that the countries receiving the gold would go back on a gold basis, and hold a percentage of it as a reserve against their currency, something might be achieved. In desperation, England is once more attempting to revive "Sterlingaria", or at least proposing to revive the Sterling block, and make sterling instead of the dollar, the standard measure of world exchange. She also proposes to establish an Empire customs union. Both of these measures would result in the loss of considerable export trade to the United States. On September 16, the British Treasury disclosed that the International Monetary Fund had agreed to provide Britain with $60,000,000 in exchange for pounds sterling, within the next few days. On the 19th, officials of both the Monetary Fund and the International Bank spiked rumors of an increase in the price of gold, or the devaluation of currencies, which would have the same effect as lowering the gold value. British financial quarters in London described the rumors as nonsense, while in Washington, monetary authorities disclaimed any knowledge of any proposal to this effect. The difficulty in adopting such a proposal was pointed out, the explanation being that any such scheme would be vetoed by either Britain or the United States, the two countries which each have more than 10% of the aggregate fund quotas. South Africa has just announced that it will put its entire annual production of gold, amounting to 12,000,000 ounces, worth $400,000,000 at the disposal of the British Government. A report has been received that Canada is considering several relief measures-devaluation of the Canadian dollar 10% to 15%; encouragement of gold prospecting, through a bonus; or greatly reduced imports. 195

Recently, the Philippine Government permitted P4,000,000 in gold to be shipped out of the country, on the ground that the persons exporting the metal had been granted licenses to do so before the July 19 restrictions were imposed. The gold had arrived here for transshipment to the Far East, but had been held up due to the Government's compliance with instructions of the International Monetary Fund. It is also stated that from information reaching Washington, "If the rate of progress in restoring Philippine gold production continues, the output will be nearing the pre-war level of $30,000,000 annually before June 30, 1948." Lumber By E. C. VoN KAUFFMANN President, Philippine Lumber Producers' Association OME industries are taxed more heavily than others. SThe lumber industry in the Philippines has been and still is by far giving the Government the highest returns in proportion to the cost of the materials produced by the industry. Before the war, w'th the cost of production at about P50 per thousand board feet ex-mill, the producer paid in the form of forestry taxes, sales tax, and other mincr taxes about P13.10 per thousand board feet, i.e., 26% of the cost went to the Government. Today, with higher forestry taxes, a new reforestation tax, and a sales tax of;5%, the producer pays the Government an average of rot less than P25 per thousand board feet or 18 to 200% of the present higher cost of production. The Government claims that it own the forests and that producers must pay for the privilege of cutting the trees down and sawing them into lumber. But if lumber must be sdlcd at low prices, in consonance with the Government's policy of keeping lumber prices low to favor rapid reconstruction, then taxes should rather be lowered to help the producers to increase their operations, or some other form of encouragement, such as permission to export, should be given them. Prices are now below the costs of most producers, and many mills have shut down. Since the export of logs and flitches was permitted, only 1,591,102 board feet of logs and 190,364 board feet of flitches have been shipped during the past two months. This represent only 3-1/2% of the lumber production of the Philippines for that period, which is far short of the 20% allowed for exportation. Producers are therefore anxious to have the ban lifted on the exportation of cut lumber and the percentage allowable raised to 30%o of their production, which would include logs, flitches, and cut lumber. It may seem odd that producers should be asking for an increase in the percentage of exports and also for permission to export cut lumber, when they have not been able to export their full quota of logs and flitches. But the explanation is that veneer logs and flitches have a limited market. There are not enough plywood and veneer manufacturers to absorb a monthly 20%o of our total production. Most plywood plants in the United States use their own local woods. Philippine Mahogany being higher priced is manufactured in only limited quantities, as a side-line. It is therefore safe to predict that future shipments of logs and flitches will not be substantially increased. Lumber arrivals in Manila by ships during the month of September amounted to 12 million board feet and 2000 cubic meters of logs. Arrivals by railroad and truck totalled 2 million feet of lumber and 1000 cubic meters of logs, or a combined total of about 15 million feet of lumber after the logs have been sawn into lumber. Prices have remained far below ceiling, and a slight improvement may be expected when the rainy season is over. Copra and Coconut Oil By MANUEL IGUAL General Manager, El Dorado Trading Company, Inc. AND KENNETH B. DAY President, Philippine Refining Company IN closing our monthly review for the period from July 15 to August 15, we pointed out that there were a number of factors pointing to an easier situation and that, barring the unexpected, lower prices were to be foreseen. The unexpected happened and, contrary to all indications, the market during this period appreciated to levels which were undreamed of. This can not be ascribed to any single particular cause, and while, during the past several months, the European markets were the main contributors to the occasional upward reactions and the firmness which developed here sporadically during the period under review, there was no interest to speak of from other than United States markets, and consequently firmness came from the most unexpected source, namely, the United States. This was unanticipated because it was known that we were facing very large crops of soya beans and cotton, and with plentiful supplies of these oils offering at depreciated prices, there was no reason to warrant a belief that copra or coconut-oil would act differently. During the second half of August, Britain was forced to resort again to freezing sterling because of the rapid dissipation of the United States Dollar Loan. This nonconvertibility meant that the buying-power of several European countries, which up to then had been able to convert sterling into dollars, would necessarily be greatly reduced if not completely cut off. In point of fact, while actual copra purchases had been made by several European countries in the expectation of their being able to arrange sufficient dollars to pay for them eventually, the financial difficulties which developed later forced them to cancel certain sales to European destinations. During the second half of August, the United States Government bought in excess of 47,000,000 pounds of various oils and fats to relieve foreign shortages. Later on, the Department of Agriculture set aside what might be considered enormous allocations of various fats, oils, and manufactured kindred products. The spectacular advance in grains, which in turn meant higher feeding costs, lent a very bullish sentiment to the market, and, very likely, this, plus signs pointing to general price inflation, were responsible for the firmness in the oil market which eventually was translated into higher copra prices here. August 15 opened with sales at $140 and $142.50 c.i.f. Pacific Coast, and small sales to Europe at $135 and $136.50 f.o.b., for October/November. The American market continued rather sluggish up to the 25th of August, during which period small sales were recorded at $141.50 to $142.50 c.i.f., and while sellers were continually offering to Europe at as low as $137.50 f.o.b., no business of any consequence was recorded. As a result of a slight improvement in the oil market, the copra market firmed up somewhat and, from the 25th to the 31st, the market gradually improved, with good sales recorded on the 29th at $150, to $153 on the 30th, and with sellers asking $157.50 c.i.f., on the 31st. September opened with unconfirmed sales at $155 for nearby positions, but soon sellers raised their ideas to $160 c.i.f. By the 5th of September, after having recorded sales at $157.50 and $160, on reports that crushers were inclined to sell more freely, several thousand tons of copra were reported sold at $160, although larger quantities, offered at $162.50 and $165, were turned down. 196

October, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 197 Having found buying resistance at over $160 and feeling that this might presage the beginning of another declining period, on the 6th of September approximately 20,000 tons of copra were offered to the Pacific Coast, of which only approximately 25% was sold, and Pacific crushers, influenced by the heavy offerings, immediately reduced their ideas to $155 with possibly $157.50 for prompt. On this same date, small sales were recorded as low as $155 c.i.f., and 4,000 tons were sold to India at $154 and $155 f.o.b. For the next few days the market continued nominally at $152.50, although fair sales at $155 were reported, but on renewed indications of higher prices for oil, sales were recorded on the 9th at $156 and $157, which resulted in sellers increasing ideas to $160. On the 10th of September, 9000 tons of copra were sold on bids to SCAP for the Occupied Zone of Germany, at approximately $156 f.o.b., 42,500 tons of copra being offered for this business. Between the 10th and the 15th, the American market firmed considerably. Volume sales were reported on the 12th at $170, and the period closed with buyers bidding $170, while sellers had increased their ideas to a minimum of $175 c.i.f. AS for the coconut-oil market, from the beginning of this period there was quite a spread between soapers' ideas and those of other smaller buyers who mainly concentrated on spot-purchases. Soapers, in general, were eager buyers at 10-1/2 f.o.b. tank cars, Pacific Coast, but spot sold at as high as 11-3/4 on the 17th of August. The weakness prevailing in the new crop of soya and other oil-seeds, affected the entire oil and fat structure. On the 19th of August, soya bean was quoted at 14 i, and even cottonseed was quoted at this price. When the report was released that the United States Government had bought heavily to relieve foreign shortages, it did not have any particular effect on the market owing to the softness of cotton and soya, but coconut-oil appreciated slightly and, while sellers were quoting 110 for November/January deliveries, volume sales at 10-3/40 were recorded. Cottonseed-oil was quoted at 13-1/20 on the 23rd, and soya at 13-3/4,, but firmness in grains caused lard to firm up as well as tallow, with the result that coconutoil sold at 10-7/80 to 11. Between the 24th and 31st of August, while the large soapers refused to follow the firmness developing in copra markets here, sales were recorded at 11-5/80 to technical users. September opened with sellers offering at 120 for the first quarter of next year. During the first few days of September, scattered sales were recorded at 12-1/20 and, while the market continued unchanged for several days, it eased off somewhat with small sales reported at 12-1/40, although by the 10th, sellers had withdrawn. The market appreciated rather sharply between September 10 and 15, mainly as a result of firmness in tallow which was quoted at 164, whereas coconut-oil sold at 13-1/20 January/ March, at which prices we closed this period. It is worthy of note that while coconut-oil appreciated only 30 from 10-1/2 to 13-1/2^, tallow, which is the main competitive item, advanced from 12 to 160, or a net advance of 40, with strong buying-interest at this price and with a very firm undertone at the close. Occasional small oil-sales in drums were reported to Europe during the first half of September on the basis of 13-1/2, f.o.b. I C ~he Sign of Mobilgas 4 r i en d ly Service * MOB ILGAS and MOBILOIL PREFERRED BY MOTORISTS EVERYWHERE STANDARD-VACUUM OIL COMPANY PHILIPPINES

THERE was quite an improvement in the volume of copra exports during August. Preliminary figures indicate approximately 50,700 tons shipped to United States destinations, 30,000 tons to Europe, and slightly over 6,000 tons to South America and miscellaneous destinations. Total preliminary exports for the month of August are 86,822 long tons. APART from the causes mentioned above contributing to the spectacular advance in copra, two other points merit consideration. The first is the rather disappointing receipts of copra during the first half of September, which made it impossible for dealers to offer copra in large quantities for prompt shipment at a time when American buyers were urgently interested in building up their stocks. This excess of demand over supply could only have a bullish effect, and that effect is bound to continue until supplies and demand are again in balance. The second point is the current shortage of coconutoil tank-cars in the United States. The shortage is unusually acute and reflects itself in abnormal premiums for spot deliveries, particularly to the Atlantic Coast. It is supposed that this situation will gradually straighten itself out, but for the moment, the spread in prices for coconut-oil between prompt and future shipments, is exceptionally large. THE local Manila market for copra advanced in accordance with the general trend, and on September 15 copra was selling for P29 per 100 kilos with supplies unsatisfactory, and buyers likely to bid the market up further. Local oil sold up to 58 cents with an upward tendency. Copra-cake was improved, and by September 15 parcels could be sold to Europe at approximately $75 per ton f.o.b. At the close of the period under review, markets were excited, and nobody could forecast with assurance how far the current bulge will go. Certainly, from a shortterm standpoint, all markets looked firm and likely to advance further. The increase has been so rapid, however, that sooner or later it must be checked, and as far as the Philippines are concerned, this check should normally come when offerings of copra are sufficient to satisfy buying demand. Desiccated Coconut By HOWARD R. HICK President and General Manager Peter Paul Philippine Corporation HE following report covers the calendar month of August, 1947. During the period, the supply of raw material was plentiful and the prices for nuts were directly in line with equivalent copra quotations. The month of August saw much activity from the viewpoint of production, with the Franklin Baker Company taking the lead. A newcomer to the desiccated coconut business, the Tabacalera interests, are planning to put up a factory in Bais, Negros Oriental, which will probably be the first up-to-date factory situated in a place readily accessible to the sea for shipping purposes and in an area where raw material is plentiful and easily accessible. They plan to use existing factory buildings in which they will install modem, up-to-date machinery for the production of desiccated coconut. Other companies have increased their capacity in small amounts so that, generally speaking, the industry has increased its output to about 70% of the normal 1941 production and, if present plans continue, the industry should have a capacity slightly above the 1941 volume by the end of the calendar year 1947. SHIPPING STATISTICS OF MANUFACTURERS OF DESICCATED COCONUT FOR MONTH OF AUGUST Blue Bar Coconut Products Co... 1,808,500 lbs. Canlubang Sugar Estate........ Shipped by Franklin Baker Co. Cooperative Coconut Products... 30,000 lbs. Franklin Baker Co.............. 1,716,920 lbs. Marsman and Company, Inc..... 359,800 lbs. Peter Paul Philippine Corp....... 1,558,900 lbs. Philippine Desiccated Co........Shipped by Blue Bar Coco. Prod. Red V Coconut Products....... 675,680 lbs. Sun-Ripe Coconut Products...... 670,100 lbs. *United Coconut Products, Inc.... 315,000 lbs. *United Coconut Products, Inc. ships for the Cooperative Coconut Products, Inc. Tobacco By the CONDE DE CHURRUCA Compania General de Tabacos de Filipinas HE purchasing season of the 1947 crop is practically over, for of the 107,000 quintals produced in the Cagayan Valley only about 9,000 are left in the hands of the cosecheros. The principal buyers were the Chinese merchants who took a total of 36,000 quintals, followed by the Tabacalera with 34,000, and the National Tobacco Corporation with 16,500. Other buyers were Bunning & Company with 4,000 quintals, Alhambra with 3,600, and "Particulares" with about 3,000 more. Prices varied between P23 and P30 a quintal, depending on the quality of the tobacco. In general the crop was good and will soon be available for manufacturing purposes. There is a good proportion of "Clases"; the tobacco tends to being "lavado", but healthy. The Pangasinan and Union crops were small and mediocre. Out of a total of 42,600 quintals produced there, the Chinese merchants acquired 33,000 and the Tabacalera around 9,000. Prices paid were out of proportion to the quality of the crop and varied between P18 and P25 a quintal. Farmers are optimistic, and it appears that they are preparing to plant a bigger crop for 1948. If prices of rice and sugar keep lowering, this will certainly be the case. Sugar By G. G. GORDON Secretary-Treasurer, Philippine Sugar Association HE annual general meeting of the members of the TPhilippine Sugar Association is scheduled to take place on October 27, 1947, 6th floor, Ayala Building, Manila. Central members have been requested in a circular letter sent out by the Secretary-Treasurer to nominate their respective trustees and alternates to represent them at this meeting. Members may be represented at the meeting by proxies, which should be filed with the SecretaryTreasurer any time before the meeting. Four centrals are expected to begin operations during October. Quotations on the New York Sugar Exchange during the first half of September ranged as follows: High Low Close Sales May...... July...... September December.................... 5.20 4.86 5.18 36,300 tons................... 5.17 4.82 5.15 4,350................... 5.17 4.99 5.15 2,200 "................... 5.17 5.15 5.17 350 " TOTAL SALES.........................43,200 198

1947-1948 CROP ESTIMATES Start of Operations 1. Bamban.............. Nov. 1947 2. Calamba.............. Jan. 1948 3. Calumpit............. Dec. 1947 4. Del Carmen e.......... Dec. 1947 5. Don Pedro........... Dec. 1947 6. Manaoag............. Dec. 1947 7. Norte................ Jan. 1948 8. Paniqu.............. Nov. 1947 9. Pasudeco.............? 10. Tarlac............... Dec. 1947 11. Asturias............. Dec. 1947 12. Bacolod-Murcia...... Oct. 1947 13. Bais.................. Jan. 1948 14. Bearin (Palma)........ Not Milling 15. Binalbagan-Isabela..... Feb. 1948 16. Bogo-Medellin..O...... Oct. 1947 17. Danao................? 18. Hawaian-Philippine (Bacolod-Murcia) (Victorias ).... Not Milling 19. La Carlota........... Oct. 1947 20. Lopez................ Oct. 1947 21. Ma-ao (La Carlota ) (Bacolod )........ Feb. 1948 22. Ormoc-Rosario.... Feb. 1948 23. Palma................ Nov. 1947 24. Pilar................. Dec. 1947 25. San Carlos........... Feb. 1948 26. San Isidro (Binalbagan ) (Palma )....... Not Milling 27. Santa Aniceta......... Nov. 1947 28. Talisay-Silay (Bacolod)............ Not Milling 29. Victorias-Manapla.... Sept. 1947 TOTALS AND AVERAGES.......... *NOTE: Purchased from other districts. Plant Tons Tons Piculs Cane Cane Plant Piculs Plant (Has.) Per Ha. Cane Per Ha. Cane Ratoon Tons Tons Piculs Cane Cane Ratoon Piculs Ratoon (Has.) Per Ha. Cane Per Ha. Cane Total Crop Estimate 721 38 27,283 53 38,191 99 21 2,055 29 2,877 41,068 50,000* 2,494 24 58,901 42 106,032 822 15 12,046 22 17,732 123,764 863 35 30,119 50 43,374 280 15 4,207 24 6,732 50,106 1,531 23 35,760 45 69,009 385 13 5,029 25 9,707 78,716 4,453 43 191,479 84 374,052 1,744 20 34,880 39 68,016 442,068 1,351 40 54,040 60 81,060 256 23 5,888 39 9,984 91,044 750 30 22,302 60 45,004 - -- 45,004 1,634 30 49,029 48 78,447 427 20 8,535 32 13,656 92,103 1,670 33 54,927 66 109,854 149 25 3,737 50 7,475 117,329 3,609 36 129,924 56 202,104 634 22 13,948 34 21,556 223,660 64,000* 1,042 50 52,100 80 83,360 178 35 6,247 60 10,710 94,070 3,594 62 222,842 89 319,886 988 55 54,334 80 79,031 398,917 3,780 75 283,500 120 453,600 1,760 80 140,800 140 246,400 700,000 192 65 12,512 108 20,790 27 60 1,620 77 2,079 22,869 1,435 53 75,756 95 136,303 - - - 136,303 2,497 51 127,356 71 177,299 244 45 10,985 68 16,599 193,899 877 55 48,238 100 87,706 729 50 36,450 94 68,526 156,232 1,126 80 90,051 126 141,831 302 60 18,146 79 23,892 165,723 5,954 75 446,536 108 642,178 1,882 65 122,318 72 135,490 777,668 2,680 53 142,066 90 241,245 725 40 29,008 67 48,951 290,196 1,099 62 1,177 48 562 63 1,160 50 2,394 75 67,699 111 57,096 66 35,414 110 580 100 179,550 138 121,856 78,106 61,609 116,041 330,372 408 41 108 55 338 40 739 70 16,691 60 5,926 99 15,530 80 51,765 131 24,341 10,667 27,059 97,178 121,856 102,447 72,277 143,100 427,460 317 65 20,605 106 33,751 21 60 1,260 100 2,100 35,850 228 60 13,693 80 18,257 102 60 6,137 80 8,182 26,439 1,777 60 106,606 82 7,421 50 371,062 80 145,695 424 55 23,321 74 31,406 177,102 593,700 1,593 40 63,736 70 111,538 705,238 58,388 51 3,007,226 85 4,950,712 15,364 45 692,599 72 1,101,884 6,166,508 In Short Tons.................... 429,929 Compiled by Field Service Division-Philippine Sugar Administration-July 31, 1947 I i. I Manila's Biggest Department Store Pre-War, Is Still Manila's Biggest Department Store Post-War WHERE DISCRIMINATING PEOPLE SHOP HEACOCK'S The Store of Quality 454 & 600 Dasmarinias * Tel. 2-70-81 SHOPPING HOURS: 8:00 A.M TO 5:30 P.M. I 199

Manila Hemp By MURRAY COOK International Harvester Company of the Philippines URING the first week of August, the Davao market for Manila hemp remained on the quiet side. The price of Davao J1 at P41 per picul for loose, slowly declined to P40.50. Resistance of sellers at this point forced exporters to increase prices, which in a few days had risen to P42 for Davao J1. Even at this price, very little hemp was available and prices became erratic, —depending on the individual urgency of the exporters. By the middle of August, prices had risen to P45, with exporters bidding briskly for what little fiber was available. Spot stocks of local dealers had long since disappeared, and the trade depended on current production to keep presses operating and to cover sales. Steady world demand encouraged exporters; after brisk buying during the remainder of the month, the price of Davao J1 —which at one time reached P47-ended the month at P45.50. Normal closing prices for loose hemp as of August 30 were: F........... G........... H........... I............ Ji........... P52.50 41.00 28.50 50.00 45.50 S2.......... S3.......... J2.......... K........... L1.......... P45.50 38.00 37.50 28.50 13.00 A firm but orderly market was observed on the nonDavao grades. J1 opened at about P35 per picul and closed on'a firm note at P38 to P38.50. Non-Davao medium and high grades continued on the scarce side and were practically unobtainable except in small quantities. August production made another record for the year with a total of 76,430 bales inspected, approved, and certified by the Fiber Inspection Service. Davao continued to lead with 31,194 bales, while Albay reached a record of 14,235 bales. An interesting point in Albay production was the large percentage of U.K. grades totaling 6,881 bales J2 and 3,580 bales K. Export figures for July continued to keep pace with production figures. A total of 73,032 bales were exported against a production of 71,871 bales. Machinery By L. M. HAUSMAN L. M. Hausman 6 Company S HARP advances immediately followed the removal of OPA price-control some fifteen months ago. Under OPA, consumer prices had been far too low to permit continued manufacturing, in spite of the minor relief permitted during early 1946. Manufacturers were unable and unwilling to produce on normal scale, and with an unusually large backlog of orders to fill to start with, and more piling up to meet manufacturing demands as reconversion got under way, it wasn't long before bottle-necks throttled every conceivable outlet to normalcy. The first, abrupt increases of the middle of 1946 proved insufficient, and further steady upward pricing continued through the following months, terminating in another very appreciable general raise in prices in December. A good many nationally known factories felt that this would probably be the peak. A few offered firm prices for the period of their shipping schedules on machines entirely of their own manufacture, and still others, in quoting with restricted escalator clause still effective, limited the percentage of the price-raise to fairly nominal percentages: 10 to 15%. However, many large producers of heavy equipment felt less optimistic and looked for upward trends in raw materials and in unit labor costs, and therefore reserved every possible clause protecting themselves and passing on increased costs to their customers. In spite of the really high prices prevailing early in 1947, the latter group proved correct, and generally, manufacturers of equipment which sells at a comparatively small margin above the actual material, labor, and equipment costs, have been forced to put up their prices again during the second quarter of this year. A few anouncements have already been passed out in advance, indicating additional increase for the last quarter of 1947. Now the question is... are prices generally going up further? Or have they reached their limit, and will they remain as they are for some time? Or, in the course of a year, or two years, will they decline? From many close friends of long years, who are vitally interested in these questions, this writer has tried to obtain answers for his own protection. Summing up extracts from letters received during several months past, the indications are that prices in machinery, generally, will be h'gher by the middle of next year that they are now, (end of third quarter), and will remain at higher levels throughout 1949 if not longer. Whether they will continue to go up is anyone's guess. Each considerable raise in the past year has been thought by competent authorities to be the last. In the many letters received quite recently, the same thought predominates. The following may be considered "composite extracts" from these letters, voicing the same expression of opinion from widely separated sources. "Price Outlook-We were rather optimistic on this point in our previous Export Broadcast, but we state with regret now that the national economic scene has shifted and we can no longer support this optimism." "As a consequence of recent substantial wage increases in the coal mining industry, the steel mills of the United States have just announced an increase of steel prices which will seriously affect the cost of our products. We are making every conceivable effort by economies in manufacture and increased efficiency of operation to avoid the need for another price increase of our products, and we may be in part successful since the full effect of this steel-price increase is not yet fully apparent. On the other hand, it would hardly be fair to omit mention of such important possibilities until the condition actualy confront us." "Purchased materials have increased from 25 to 2007% over 1942 levels; labor is up approximately 80%; brass ingot 67o%. Pig iron was $20 per ton and now it costs $32; scrap iron (machinery scrap) was $18 and now it is $50; and steel scrap was $18 and now is $45." "We are still having difficulty getting pig iron, coke, scrap, anything made of steel, also anything where copper is involved; in fact, steel sheets, plates, and structurals are probably the most acute items,even motors have eased up a little." Automobiles and Trucks By J. L. MANNING Manila Trading and Supply Company IT is of interest to note that of the 60,210 motor vehicles operating as of June 30, 1947, as reported in the September issue of this Jo-urnal, 31,389 are U. S. Army or Navy surplus vehicles of various descriptions. Of this number 22,067 are trucks and 9,322 are cars or jeeps. It is apparent from these figures that there are approximately 29,000 vehicles which may be described as of civilian production now on the roads. Of this number, it is estimated that not more than 10,000 have been im ported since the war and, therefore, it would appear that around 20,000 vehicles have been saved through the war and placed back in operation. Under normal depreciation and wear and tear, it would appear that of the 60,000 automobiles and trucks now running, between 30,000 to 40,000 will have to be either taken out of service, abandoned, or replaced within the next 5 or 6 years. 200

October, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 201 October, 1947AMERICAN CHAMBER OF COMMERCE JOURNAL 201 This analysis would indicate that should the Philippine economy continue at its present level, importation of American cars and trucks will result at the rate of 7,000 to 10,000 per annum for at least 5 or 6 more years. There has been a price-rise throughout the entire automobile and truck industry and best predictions indicate no lowering of prices, with the possibility of further rises within the next year. Increased cost of labor and materials in the United States are the prime factors in this price increase. It is anticipated that stocks of new cars and trucks for delivery in the Philippines will be'adequate during the next three months. Food Products By E. A. L. BEST Manager, Food Products Department Marsman Trading Corporation ROM a food products selling point of view, last month's business offered considerable improvement as regards indent transactions. Nevertheless, some importers continue to dispose of stock merchandise at figures below replacement cost. United States indicators point to advances in price, scarcity of numerous staple commodities, and further advances in price. During the past forty days, flour was particularly active and uncertain. One large Pacific Coast miller dispatched fifteen different telegraphic price-changes from August 19 to September 30, aggregating a total increase of $1 per 100 pounds for the period. American quotations at this writing are the highest since March, 1947. September importations were astonishingly light. Heavy arrivals from the United States should be anticipated in October. The majority of importers are reported to have engaged bookings up to limitations of present Washington export-license allotments. Some are said to be oversold until November. On August 22, the Canadian Government declared a temporary embargo of flour exports. The order,-still in effect, results in our local market shortage and considerable demand for this particular type of No. 1 hard-wheat flour. Export of Australian flour to the Philippines remains banned. Generalized, flour manufacturers predict high prices until the Marshall Plan is settled. Evaporated milk moved conservatively from bodegas at prices representing losses. Scattered holdings should disperse rapidly because of the insignificant arrivals. Small-sized tins remain at a premium. American cheese- and butter-prices advanced. A sympathetic reaction may logically be expected to affect milk. Condensed milk commands a prime position. The recent confiscation of several large shipments by the Philippine Government appears to have encouraged black-market activities. Powdered milk movement is sluggish,-limited sales without profits. Much concern is evidenced regarding the phenomenally poor sardine catch this season off the California coast,-particularly from the Monterey district where canneries are virtually idle. It is rumored that their fishing fleets will invade Southern California waters in the hope that the October catch in the area will be attractive. Some types of salmon have failed to appear at their hereditary spawning-grounds,-hence, the almost prohibitive new costs. Herring, anchovies, mackerel, and squid are more plentiful, but not offered in large quantities.' Canneries only accept orders "subject to catch and pack". The Philippines will undoubtedly experience a shortage of I COMPLETE LINE OF AGRICULTURAL MACHINERY AND EQUIPMENT FOR MODERN FARMING, RICE MILLS, RICE THRESHERS, ENGINES, PLOWS, HAR 'I RO'WS, TRACTORS, CORN GRINDERS, CORN SHELLERS. INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMJILAS, MANILA CEBU BACOLOD DAVAO I - INTERNATIONAL Trucks

202 AMERICAN CHAMBER OF -COMMERCE JOURNAL October. 1947 -%, - - - -- y —, a I 202 AMERICAN CHAMBER OF COMMERCE.OURNAL October. 1Q47 their favorite California Sardine in Tomato Sauce, unless fish strike the nets soon. They do not come to the surface during full moon periods. Fresh fruits, such as grapes, apples, and oranges have been imported to excess. The market is flooded and practically every cold-storage facility is utilized to full capacity. Price, quality, and quantity of onions and potatoes are satisfactory. Other assorted perishables are beginning to arrive in marketable quantities and at reasonable prices. There is an absence of some types of canned meat and an overage of others in Manila. Importations of United States corned-beef have been less than usual consumption and/or demand. Several shipments arrived recently from Australia, Argentine, and Uruguay which were subjected to strict export-license control by the respective countries of origin. The Unito-d States Secretary of Agriculture has spoken of lower meat prices. The average American farmer will probably sell most of his live-stock to meat-packers this autumn in preference to feeding all winter at existing peak grain-prices. Should this assumption prove true, a scarcity of live-stock and meat might result during the spring of 1948. Indentors are placing food-products orders freely, optimistically but carefully,-possibly with Christmastrade hopes in sight. Textiles By JAMES TRAYNOR ARRIVALS of American textiles during August were estimated to be about the same as for the month of July. These were not large compared to other months. During August there arrived from China (Shanghai) and Japan about half the number of bales and cases that arrived from the United States. Dealers reported that their sales of Japanese textiles showed a loss, but that they were able to sell Chinese textiles at a satisfactory profit. These arrivals of Chinese and Japanese textiles were large enough to depress local prices generally toward the end of August. New orders placed with American mills during August, while smaller than those placed in July, were of good volume. Dealers reported placing sizeable new business with Shanghai mills during August. The New York market remained firm, with increases in some items such as rayons and mixtures of rayon and cotton. Some American mills can not accept new orders for shipment before the second quarter of 1948. Of-take during August was satisfactory compared to arrivals Legislation, Executive Orders, and Court Decisions BY ROBERT JANDA Ross, Selph, Carrascoso P Janda HE Congress of the Philippines has not been in session during the past month and there is no new legislation to require comment. The most important action taken by the Supreme Court during the month was its refusal by a divided vote and after considerable discussion to grant appellant's petition to dismiss the appeal in the case of Krevenko v. Register of Deeds of the City of Manila. This was an action to compel the Register of Deeds of Manila to register a transfer of residential property to an alien. The trial court *1 II ATLANTIC GULF & PACIFIC COMPANY OF MANILA EXECUTIVE & SALES OFFICE 222 REGINA BUILDING TEL. 2-83-64 ENGINEERING DEPT. & SHOPS PUNTA, SANTA ANA TEL. 8-63-32 ENGINEERS-CONTRACTORS * * 0 I DISTRIBUTORS FOR FAIRBANKS MORSE & CO. GARDNER DENVER CO. CHAIN BELT CO. ARMCO INTERNATIONAL CORP. PIONEER ENGINEERING WORKS YORK CORPORATION LINCOLN ELECTRIC CO. WALSH REFRACTORIES CORP. MARION POWER SHOVEL CO.

October, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 203 had held the Register's refusal to record the transaction was proper. The case was appealed to the Supreme Court but before the appeal was decided the Secretary of Justice had issued Circular 128 directing the Register of Deeds to record such transactions. Appellant attempted to dismiss the appeal and proceed under the Circular, but his petition was denied, thereby assuring a Supreme Court decision on this important point. In the cases of Jose Tan Chong v. Secretary of Labor and Tam Swee Sang the Supreme Court, reversing its previous decisions in the same cases and overruling or distinguishing a line of pre-war decisions, held that a child born in the Philippines of an alien father and a Filipino mother was born of alien parents and was itself an alien. The Secretary of Justice in a ruling dated September 9, 1947, held that the recent amendment to Section 259 of the Revenue Code whereby the taxes imposed by franchises were increased to a minimum of 5%, operated as an amendment to legislative franchises even though such franchises provided that the tax or charge imposed thereby should "be in lieu of all taxes of every name and nature." Executive Order No. 88 dated September 3, 1947, waived the additional progressive taxes imposed by Section 2 of C. A. No. 567 on the proprietors or operators of sugar mills. Executive Order No. 90 dated September 10, 1947, created the Philippine Relief and Rehabilitation Administration (PRATRA) ostensibly for the purpose of handling and correlating the relief and rehabilitation activities of the Philippine Government. Attention of the business community is invited to the following powers of the new organization, the wording below being that of the order:"Exec. Order No. 90. Sec. 3. (e) To undertake the prevention of monopolization, hoarding, injurious speculation, manipulation, private control, and profiteering affecting the supply, distribution, and movement of foods, clothing, fuel, and other articles of prime necessity; (f) To find ways and means of encouraging and assisting Filipino retailers and businessmen such as by supplying them with merchantable goods at prices that will enable them to compete successfully in the open market; (g) To acquire foods, clothing, fuel, fertilizers, chemicals, construction materials, implements, machinery, equipment required in agriculture and industry, and other articles or commodities or prime necessity, both imported and locally produced or manufactured, for sale in such manner and at such prices as may be determined by the Board of Directors: Provided, however, That all purchases for stock of such supplies, materials and equipment in excess of three months' requirements shall be subject to specific approval in each case by the Board of Directors herein created; (h) To enter into negotiations and contracts with other agencies and branches of the Government and public or private corporations or associations for the manufacture or distribution of goods that it may consider necessary to insure the availability of the supply thereof in the interest of public welfare and the national economy." Philippine Government Corporations From an Official Source A UGUST 18-According to a Malacafian release, the Radio Broadcasting Board is reorganizing the personnel of the government-owned station, KZFM, following a recent Executive Order placing it on a commercial basis. The purchase of new equipment has been authorized. August 19-Malacafian releases a letter from H. G. Henares of the Agricultural Machinery and Equipment Corporation, informing the Executive Office that Manuel Tavares, acting head of the Beyster Technical Committee, Remember the Folks IR Back Hone. SEND THEM CIGARS AIt^ NIN BOXES ATTRACTIVELY;0'- ~ WRAPPED IN HOLLY PAPER YOU CAN NOT GO WRONG WITH ALHAMBRA CIGARS... 49 years of leadership in the HIGH GRADE MANILA CIGAR LINE HAVE PROVEN THEIR SUPERIORITY AND OUTSTANDING QUALITY! PRICES: ONE BOX "CORONAS" 25's.........$5.25 ONE BOX "ALCALDES" 50's.........$7.75 Cigars are delivered from our New York office without any extra charge to the recipients. Your personal card may be enclosed. RESERVATIONS ARE NOW ACCEPTED ALHAMBRA CIGAR & CIGARETTE MFG. CO. 31 TAYUMAN. MANILA TEL. 2-64-94 I -- ---- -- - -- I M

204 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1947 DON'T WEEP AMID THE RUINS BUILD UP YOUR LIBRARY AGAIN! We have a set of helpful, authoritative reference works for every profess i o n and vocation. Look them over-and get yours today. Make yourself more eficient and useful in the life of our new Republic. ENCYCLOPAEDIA BRITANNICA - A New Survey of Universal Knowledge 1947; Set of 24 Volumes Red Britannitex...........?550.00 Blue Levantex............. 625.00 HARVARD CLASSICS - 50 Vols. of the World's Great Literature - Edited by Chas. W. Eliot.................. 220.00 BOOK OF KNOWLEDGE - 20 Vols. in 10 Books - Edited by E. V. McLaughlin.. 150.00 THE CHAMPLIN ENCYCLOPEDIA - 12 Vols. - By L. Macveagh.............. 108.00 RICHARD'S TOPICAL ENCYCLOPEDIA - 15 VolumesBy J. A. Richards.......... 160.00 BUILDING AMERICA-Illustrated Studies of Modern Problems - 10 Volumes - By F. Foster.............. 80.00 CLASSICS OF THE BAR - 8 Volumes -By A. V. Sellers 57.75 AUTOMOBILE ENGINEERING - Set of 6 Volumes - American Technical Society.. 55.00 THE LAW OF SUCCESS - Set of 7 Volumes (1947) - By N. Hill................ 34.90 BUILDING, ESTIMATING AND CONTRACTING - Set of 8 Volumes - American Technical Society.... 77.00 MODERN SHOP PRACTICE - Set of 9 Volumes - American Technical Society. 77.00 PRACTICAL BUSINESS ADMINISTRATION - Set of 12 Volumes - American Technical Society.......... 88.00 APPLIED ELECTRICITY - Set of 8 Volumes - American Technical Society..... 77.00 LIBRARY OF POWER PLANT PRACTICE - Set of 6 Volumes - By Croft.......... 44.40 HEATING AND VENTILATING -AIR CONDITIONING - Set of 6 Volumes - American Technical Society. 55.00 COLUMBIA ENCYCLOPEDIA - 1 Volume - Edited by Clarke F. Ansley.......... 44.80 AMERICAN MACHINIST LIBRARY - Set of 6 Volumes - By Colvin & Stanley....? 48.00 DRAFTING FOR THE MACHINE TRADES - Set of 5 Volumes-American Technical Society.............. 44.00 THE CAMBRIDGE BIBLIOGRAPHY OF ENGLISH LITERATURE - Set of 4 Volumes - Edited by Baleson..................... 72.75 CHEMISTRY MADE EASY - Set of 4 Volumes - By Snell & Snell.................. 20.70 PRACTICAL MATHEMATICS-THEORY AND PRACTICE WITH APPLICATIONS TO BUSINESS - Set of 4 Vols............. 22.50 PALGRAVE'S DICTIONARY OF POLITICAL ECONOMY - Set of 3 Volumes - By Higgs.................... 64.80 LIBRARY OF PRACTICAL ELECTRICITY - Set of 7 Volumes - By Croft...... 46.80 EFFECTIVE SPEECH - Set of 6 Volumes (With Assignment I-XII and Speaking Fundamentals) - Watkins and de Bower............ 19.70 DYKE'S AUTOMOBILE AND GASOLINE ENGINE ENCYCLOPEDIA - 1 Volume-By Dyke............ 16.80 AUDEL'S PLUMBER'S AND STEAMFITTER'S GUIDESet of 4 Volumes - By Graham & Emery............ 14.40 AUDEL'S GARDENERS' AND GROWERS' GUIDE - Set of 4 Volumes- By E. C.Vick 14.40 ENCYCLOPEDIA OF MODERN EDUCATION - 1 Volume - Ribbin; Philosophical Library........... 23.00 THE GOLDEN ENCYCLOPEDIA - 1 Volume - By Bennett.................. 5.75 In its 128 pages are packed a treasure trove of facts. More than 1500 pictures in full color and 500 more in black and white. has recommended that the Government be asked to transfer four buildings needed by the Corporation for the purpose of setting up two factories, one in Manila and one in Leyte, for the manufacture of farm machinery and implements. The sum of P30,000 has been set aside to initiate the project. August 29-The AMEC announces that as there are some 200 applicants for D-7 and D-8 tractors from Depot 14 and only 57 are available, the sale will be carried out through a lottery at a date to be fixed later. Applicants must prove that they are operating lumber concessions. September 4-The President accepts the resignation of Primitivo Lovina, Chairman of the Board of Governors of the Rehabilitation Finance Corporation, effective September 12. Lovina will run as senatorial candidate of the Liberal (Roxas) Party. September 9-The President designates Delfin Buencamino Acting Chairman of the Board of Governors of the RFC. September 12-The President by Executive Order No. 90 establishes the Philippine Relief and Trade Rehabilitation Administration, dissolving the Philippine Relief and Rehabilitation Administration and the National Trading Corporation, and reorganizing the National Cooperatives Administration. (See the column: "Legislation, Executive Orders, and Court Decisions", in this issue.) Labor From an Official Source August 25-The President designates Judge Arsenio C. Roldan Acting Presiding Judge of the Court of Industrial Relations. The former Presiding Judge, Judge Vicente de la Cruz, was recently appointed General Manager of the Philippine Shipping Commission. September 5-The President appoints Vicente Jimenez Yanzon ad interim Associate Judge of the Court of Industrial Relations. September 15-According to a Malacafian press release, a group of representatives of a local cigar-makers' union has presented a petition to Secretary of Labor Pedro Magsalin asking that the "importation and spread" (i.e. local sale) of U.S. Army surplus cigars be stopped. COST OF LIVING INDEX OF A WAGE EARNER'S FAMILY IN MANILA BY MONTH, 1945 TO MAY, 1947 Prepared by the Bureau of the Census and Statistics 1941 = 100 Carrying charges beyond our delivery limits, extra 1945 March........... April............ May............. June............ July............. August.......... September....... October....:.... November........ December...... 1946 January.......... February......... March........... April............ May............. June............. July............. August.......... September....... October.......... November........ December....... All Items 559.8 598.8 689.7 745.8 751.5 724.7 708.4 735.3 747.8 669.4 603.4 547.2 525.9 556.2 545.1 538.7 552.7 477.9 477.9 487.4 484.8 461.9 Food (59.15)2 635.5 702.1 799.4 872.7 886.9 848.5 852.4 937.8 955.8 852.7 759.2 656.3 631.0 684.1 675.6 666.4 704.3 590.0 591.3 587.2 607.8 570.8 House Rent (8.43)2 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 Clothing (0.62)2 1695.2 1611.9 2041.5 1860.8 1664.2 1484.5 1034.0 1045.1 1017.0 1030.3 984.0 940.3 940.1 910.3 762.5 737.9 598.9 384.7 378.7 382.7 406.4 371.9 Fuel, Light and Water (13.94)2 237.1 254.3 380.7 410.8 393.4 397.6 367.7 466.1 480.2 401.9 363.8 369.5 340.4 345.5 342.3 343.3 341.3 320.9 314.5 405.8 346.5 344.7 Miscella neous (17.86)2 674.4 661.4 734.8 788.7 794.1 774.3 709.1 499.5 499.9 463.0 434.8 460.7 445.2 435.9 409.6 404.2 364.6 346.3 347.2 342.7 305.2 302.1 Bi? hi x I,.!i PHILIPPINE EDUCATION COMPANY: 1104 CASTILLEJOS - QUIAPO Entrance thru Arlegut at A. Farnecio iH- I

October, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 205 19471 January.......... February......... March........... April............ May............. June............ July............ August.......... September...... 394.1 389.5 378.6 360.3 354.2 358.6 364.1 358.0 340.4 468.2 454.9 440.1 413.3 404.4 414.4 426.8 419.8 392.1 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 381.9 356.3 295.2 269.2 250.9 236.8 217.7 210.2 216.4 326.2 344.8 334.7 328.3 325.4 316.6 309.3 292.0 283.3 282.5 281.4 279.4 271.6 269.4 268.6 269.9 269.1 266.8 1 Weekly average only 2 Weights Other Chambers of Commerce Chamber of Commerce of the Philippines JULY is for the Philippines and the Filipinos an eventful month. It is the month when the United States of America redeemed its pledge to grant us independence. July is also a memorable month for Filipinos in business, as it was in this month, forty-four years ago, that the Chamber of Commerce of the Philippines came into being. It was on the 26th of July, 1903, that the organization of the Chamber of Commerce of the Philippines, by a group of Filipino businessmen, prominent among them, Teodoro R. Yangco, Miguel Velasco, Faustino Lichauco, and Ramon Soriano, was completed. At that time, William H. Taft, later President of the United States, was the Governor-General of the Philippines. As a courtesy, the organizers of the Chamber called on Governor Taft to acquaint him with their plan. Governor Taft urged them on. He considered a Chamber of Commerce of the Filipinos necessary as often he was asked from Washington for the opinion of Filipino businessmen and was compelled to state that so far there was no organization voicing such opinion. He regarded the Chamber of Commerce a necessary instrumentality in securing effective representation of Filipino interests in the United States, and having a high regard for Filipinos in business, he stated that the opinions and suggestions that rright be expressed or advanced by the new organization would always receive hi; careful consideration. The organization meeting, held on the morning of the 27th of July, 1903, at the office of Mr. Juan Rodriguez at Plaza Cervantes, elected the first Board of Directors and officers, who were: Francisco Reyes, President, and Faustino Lichauco, Luis Hidalgo, Teodoro R. Yangco and V. Somoza, Directors, and Ricardo Aguado, Sec'retary-Treasurer. Lasting for two hours and a half, that important meeting brought into being the Camara de Comercio Filipina, as it was tlhen called. According to an account in the newspaper, El Comercio, the bulk of the work of organization was carried by Mr. Juan Rodriguez. P. J. OCAMPO, Secretary Chinese Chamber of Commerce FOR many months following the three and half years of war, rehabilitation was considerably more difficult among Chinese merchants than among those of other nationalities. With the possible exception of the Americans, they suffered more than the rest from the hands of the enemy, their losses reaching almost a quarter of a billion pesos, which represented nearly their whole investment in the Philippines. They were considered enemies by the Japanese, and were not permitted to engage in business except to a limited extent. L SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York JAVA PACIFIC LINE N. V. S.M. "Nederland" N. V. Rotterdamsche Lloyd Amsterdam -Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York k PHILIPPINES To and From SEATTLE VANCOUVER PORTLANI) SILVER and JAVA PACIFIC LINES LOS ANGELES AND SAN FRANCISCO PHILIPPINES To and From BOMBAY AND CALCUTTA SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FR 0 M U. S. ATLANTIC COAST PORTS TO MANILA FROM PHILIPPINES TO HALIFAX AND U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 I Distilleries Co., Incorporated, Louisville, Kentucky Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2-79 - 61 AA

206 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1947 I I ~ ~ ~ ~ - - BOTICA BOIE Philippine-American Drug Co. Founded 1830 Drugs Chemicals Pharmaceuticals Botanicals Biologicals Laboratory Supplies Hospital Equipment The Philippine Chinese General Chamber of Commerce was organized without much delay, but its early functions were far from the promotion of busine s. The Chamber confined its work to relief, to preservation of peace and order among Chinese nationals, and to assisting in the liberation effort. Like the post-liberation Filipino traders, the Chinese went into the "buy-and-sell" business without any financial or much moral backing. For a long time their former banking and other credit facilities were unavailable. Confronted with the problem of housing not only for their families but also for their businesses, the Chinese main concern was the immediate construction of temporary structures in Manila's commercial districts, particularly along Rosario, Escolta, Dasmarifias, Rizal Avenue, Echague, Villalobos, and Tabora streets. Regardless of the tremendous costs of materials, they went ahead in building their shops and stores out of the earnings and savings made during the nearly two years that American troops spent so freely in the Philippines. Real-estate owners charged very high rentals on buildings and lots. Besides paying high rents, it was not uncommon for Chinese business men to bind themselves to relinquish their ownership of the buildings they put up after three, five, or ten years, to the owners of the lots. This is so onesided a proposition that it is doubtful whether other business men would have considered such terms at a time when business appeared very unstable indeed. The numerous risks incident to business during those days hit everybody, not excluding the Chinese. Many importers were virtually wiped out at the time when new consumer goods were thrown on the market in enormous quantities, and prices dropped way below costs. According to an estimate of the Chinese Chamber of Commerce, there was one three-month period in which Chinese importers suffered losses aggregating P10,000,000. Chinese business men as a whole have contributed and are contributing largely to the rehabilitation of Philippine economy. The best evidence of that contribution is indicated by the number of licenses they hold, as shown in the following table prepared at the close of 1946: BUSINESS LICENSES ISSUED BY THE CITY OF MANILA AS OF DECEMBER 31, 1946 Total number of business licences on December 31, 1946.. 23,467 H eld by Chinese.................................... 7,403 Percentage held by Chinese to the total issued........... 31.5% Licenses for general merchandising.................... 7,630 H eld by Chinese..................................... 3,095 Percentage held by Chinese.......................... 40.5% Licenses for "sari-sari" *stores....................... 4,619 H eld by Chinese.................................... 1,120 Percentage held by Chinese........................ 24.3% Licenses for restauranst............................ 459 Held by Chinese.................................. 76 Percentage held by Chinese. -........................ 60.1 % Licenses for bars................................... 148 Licenses for nightclubs......................... 26 Licenses for cinema houses........................... 52 Licenses for beauty parlors.......................... 294 Chinese participation in the saloon business, nightclubs, cinema houses, and beauty parlors is negligible. * Small neighborhood stores dealing in general merchandise, including foodstuffs, fuel, notions, etc. YANG SEPENG, Executive Secretary Temporary Building Permits (Continued fromh page 188) In the last half century, cities have faced the necessity of widening streets without their having adequate funds to pay for the needed property under condemnation proceedings. All agree that certain streets should be -SHELLUBRICATEPerfect balance is hard to attain harder to maintain, and hardest to explain. BUT ITS PRESENCE IS KNOWN BY THE PRODUCTS' PERFORMANCE.......... There's a SHELL PRODUCT for Every Purpose THE SHELL COMPANY OF P. I., LTD. MANILA CEBU ILO01LO DAVAO

October, 194 7 AMERICAN CHAMBER OF COMMERCE JOURNAL 207 widened in the interest of the general welfare. But under the conception of eminent domain, this has been almost impossible, particularly for those governments which lack the necessary financial resources or the power or opportunity to float bonds. Recourse has, therefore, been made to the application of the police-power. For instance, it is clearly established that the general welfare is served by the establishment of front, side, and back yards, and the height and bulk of building. These measures assure the individual and the community of light and air, and diminish fire-hazards. They have been accomplished through the growth and universal recognition, adoption, and application of zoning ordinances. The enlightened trend in court decisions is now upholding the application of the zoning principle in reserving land for future street-widening or for what is technically known as "mapped streets" on the "official map," where an owner builds in a proposed street at his own risk unless undue hardship can be proved. The exercise of this power has been interpreted by the courts not as the taking of land for public purposes, but as the regulation of its use for the wellbeing of the community at large. It is in the interest of the general welfare that streets be adequate. The proposed zoning ordinance known as Resolution No. 288, passed by the Manila Municipal Board, is based on the application of this principle. Its provisions are less arbitrary than the originally required set-back of three meters. Whether it will stand the test of the courts, remains to be seen, as in all similar situations throughout the world. If the City of Manila is to be properly planned, it is to be hoped that the people, and the courts, if necessary, will take the enlightened view. Something must be done even during the present financial plight of this country. The Municipal Board believes that it has evolved a fair and reasonable regulation. If something like this is not accomplished, and soon, the cities of the Philippines will remain in the same backward condition that cities throughout the world were fifty years ago. Will Manila, Cebu, Iloilo, Zamboanga, and Davao profit by the experiences of other cities, and apply this accepted zoning-practice, or must they muddle through fifty years of growing-pains as we have had to in many parts of the United States? There are some outstanding examples of local property-owners conforming to the recommendation of the Planning Office and the Municipal Board even prior to the enactment of the city ordinances covering the matter. i The Cu Unjieng Building affords an excellent example on the Escolta frontage. The arcaded section of the Cu Unjieng Building on David is temporary closed, but is so constructed as to be easily opened when adjoining buildings are rebuilt. Botica Boie is also in line with the proposed zoning ordinance. The Heacock Building has provided for the arcade. Other new or repaired buildings on the Escolta are placing their posts so that the arcade can be easily cut through. Unless the owners of all new buildings or of those undergoing major repair on the ground-floor will conform to this practice, the Escolta will be condemned as an inferior street. The necessary widening of the street by eliminating the open sidewalks and incorporating the sidewalks within the buildings, has been deemed a fair and reasonable course. Miami, Florida, is one of the latest examples. The arcaded side walk becomes public property, but the owner is allowed to use the floor-spaces above. In the instances on the Escolta, the owners gain in the floor-space above, but lose on the ground-floor. In other words, there is a "bargain" possibility on the Escolta, which does not exist on Dasmarifias Street. is to ask for FOUR ROSES! i BOTTLED IN THE U. S- A. Fine American Whiskey. Preferred throughout the Americas Sole Importers SORIANO TRADING COMPANY M. iR. S. Bldg. - Tel. 2-79-61 - Manila AA Mo re Mileage! JENERAL, oAIRE - |Hotpoint radios make tuning In " Over RZRH, let's mnak it a date = real nice treat on "'Spell to Win" Every Sunday nikht at eirht. r_ _

208 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1947 I LUZON STEVEDORING COMPANY, INC. MANILA 4 i Dasmarifias presents another problem. The plan approved by the Commission and adopted by the Municipal Board, provides for a 26-meter street for Dasmarinias. Existing, sound buildings restricted the Escolta to 21.4 meters. Three lanes of traffic in each direction, a minimum for a main business street, can therefore be provided for Dasmarifias. The Escolta will have only two lanes. In attempting to make reasonable adjustment for Dasmarifias, it has been recommended that the owners build no permanent structures inside the 26-meter lines, and use only temporary material there. All piers under this arrangement will be placed so that the arcaded sidewalks can later be easily built. The Goldenberg Building, at the Corner of Dasmarifias and Nueva, is an example in line with this recommendati - n. Other new structures are placing their piers to allow for this improvement of Dasmarifias. It is perhaps unfortunate that money is not available to accomplish what everyone knows should be done for Manila. But Manila is no different from many cities in this regard. The big difference is that Manila is now largely destroyed. It will call on the courage and foresight of its people and leaders to take what advantage they can of this opportunity. The conception of eminent domain has long retarded rather than aided the development of urban areas. The courts have come to the rescue by sustaining zoning ordinances under the exercise of the policepower. Will Manila keep abreast of the times, or will it allow selfish interest to defeat the common good? The Beyster Report (Continued from page 187) the United States Government "entertain any request for industrial loans by the Republic." The authors say that the national income may be expected to rise for the next two years due to irncreased rehabilitation of pre-war exports, increased production of goods and services, and receipt of United States payments. Thereafter, exports, goods, and services will increase less markedly, and American payments will markedly decrease. However, the proposed industrialization may be expected to increase the national income to a point where, at the end of five years, the pre-war income may be achieved. "From this point on, a rise in national income in proportion to the rate of development of the industrial program, may be expected". Private capital ventures for the rehabilitation of prewar industries and the establishment of new industries has I - CHEVROLET OLDSMOBILE GMC DIESEL TRUCKS LIDDELL & COMPANY, INC. TELEPHONE 2-90-40 I STANDARD PRODUCTS, INC. CHEMICALS FOODSTUFFS PETROLATUM PARAFFINE WAX SUGAR & RICE BAGS 13th and Chicago Streets Port Area, Manila Ayala Bldg. Phone 2-66-24 I

October, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 209 been mainly confined, according to the Report, to sugar, mining, hemp, fishing, lumber, refrigeration, construction, shoe manufacturing, power generation, shipping, furniture, plywood, rubber goods, steel fabrication, shipyards, machine shops, and other miscellaneous small industries. The authors state that due to a lack of a centralized statistical system and the private nature of these ventures, the investment costs and the productive capacities are generally unknown, but that it may be said that private development has been retarded by the lack of ready capital, shortage of equipment and materials, and the delay in the payment of war-damage claims. "Many plans for private enterprise no doubt remain in the formative stage". The authors consider a recommendation as to the establishment of a free port in the Philippines as outside the scope of their report and content themselves with pointing out certain advantages and disadvantages. In closing this section on the general aspects of Philippine economic development, the authors urgently recommend the immediate institution of a complete survey of all possible sources of raw materials, especially in the nonmetal groups, to be handled by the National Development Company technical staff and the staffs of the Bureau of Mines and the Bureau of Science. An appropriation of P100,000 is believed sufficient for this work. THE remainder of the Report deals in greater detail with development opportunities in the metal industries (16 pages), chemical industries (13 pages), mining and quarrying (8 pages), food and farm products, including allied industries (26 pages), textiles and allied industries (3 pages), forest products (14 pages), public services (18 pages), and miscellaneous and minor industries (9 pages). This latter part of the report is of the most practical interest and can not be further condensed than it is for anyone who wishes to understand what is proposed. With respect to each of the proposed industries, the Report follows a general pattern: past imports of the commodity concerned and brief analyses of prices and the market, necessary raw materials available, the desired annual production, cost of the proposed plant and capital required, period of time needed to construct the plant, and the estimated profit and yield on the capital investment. With respect to iron and steel, the authors state that the establishment of this industry is of vital necessity to the healthy industrial and economic development of the country; steel is an indispensable commodity in rehabilitation, and for some time to come foreign producers upon whom the country now depends, can be expected to supply only a small fraction of the needs. "The Philippines possesses the requisites necessary for the profitable production of iron and steel. Raw materials, labor, and fuel are available in sufficient quantities to support an iron and steel industry for many years." The authors propose the establishment of two steel plants, one in the vicinity of Iligan, Lanao, AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR II. IIENDERSON Executive Vice-President Sixth Floor, Wilson Bldg., Manila Telephone: No. 2-64-68 Cable: "Underiters" Managers in the Philippines for:CONMMERCIAL CASUALTY INSURANCE COMPANY THE EAST AND WEST INSURANCE COMPANY FIREMEN'S INSURANCE COMPANY TIHE FULTON FIRE INSURANCE COMPANY GRANITE STATE FIRE INSURANCE COMPANY TIHE HANOVER FIRE INSURANCE COMPANY MILWAUKEE MECHANICS' INSURANCE COMPANY NATIONAL UNION FIRE INSURANCE COMPANY NEW HAMPSHIRE FIRE INSURANCE COMPANY PACIFIC NATIONAL FIRE INSURANCE COMPANY SECURITY INSURANCE COMPANY Fire and Allied Lines CASUALTY - AUTOMOBILE - MARINE - REINSURANCE I I VCONNEII BROS.COMPANYi ( PHIL IPPINES) iW "? --- CEBU * MANILA* ILOILO -- * MERCHANTS GE N ERAL MERCHANTS X VN I Cablc Ad(drels.s: CONNELL SAN FRANCISCO:: LOS ANGELES * NEW YORK * SHANGiAI * HONGKONG SINGAPORE * TIENTSIN * PE- NANG * SAIGON * BANGKOK BOMBAY * VANCOUVER. I I MANILA SHIPYARD, DRYDOCK AND ENGINEERING CO. OFFERS COMPLETE SERVICE REPAIRING, BUILDING AND OUTFITTING ALL TYPES OF VESSELS. FLOATING DRYDOCK AVAILABLE AT ALL TIMES. 250 TONS CAPACITY. OFFICE: ROOM 507 INSULAR LIFE BLDG., MANILA. PHONE: 2-89-06

210 -AMERICAN CHAMBER OF COMMERC7, JOUrNAL October. 1947 I I 210 AME~~~~~~~~iCAN CHAMBER OF COMMERCE JOURNAL October. 1947~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PLACE YOUR ORDERS FNOW m r STEEL SHELVING r'^T / Closed Type / Open Type Counter type CONVEYORS TOOL STORAGE FOLDING CHAIRS IRONING TABLES KITCHEN CABINETS LOCKERS SHOP BOXES TOOL STANDS DISPLAY EQUIPMENT STORAGE CABINETS STOOLS DESKS TOOLI BOXES WORK BENCHES and the other in the Manila area. Manufactures proposed are nails; steel pipe; screws, nuts, bolts, washers, and rivets; steel bars, rods, and plates; sheet metal; and farm implements (animal-drawn and hand). They urge the establishment of a forge plant and an iron foundry in Manila, and a ferro-chrome plant and a copper smelting and refining plant in Lanao. Aluminum utensil manufacturing from imported aluminum blanks is also proposed. The chemical industries proposed are divided into two categories: those which may be established with the aid of machinery and equipment obtained as reparations from Japan, and those which will require the purchase of the necessary machinery and equipment. In the first category are plants for the manufacture of sulphuric acid, caustic soda, soda ash, synthetic fuel, and synthetic rubber; in the second are plants for the manufacture of hydrochloric acid, nitric acid, ammonium sulphate, salt, plastics, soap, dynamite, paints and varnishes, pastes and glues, and certain pharmaceuticals. The authors advocate that the rehabilitation of the mining industry be given every possible government assistance. They also propose the further development of the Romblon marble deposit, the quarrying of adobe stone (volcanic tuff) by more modern methods, and the establishment of another large cement plant. In connection with the latter, the authors propose also plants for manufacturing asphaltic concrete paving, concrete pipe, and asbestoscement wallboard. Commercial production of lime is advocated, as also vitreous tile and brick manufacturing. Under the heading "Food and Farm Products, including Allied Industries", the authors urge improved methods of rice production and propose the establishment of a plant for the manufacture of rice-bran oil. Suggestions are made with respect to the fishing and the livestock industries, and leather manufacture is advocated. The authors advise the sale of the National Footwear Corporation to a cooperative organization of local small manufacturers. The authors state that the present is a propitious time for insuring the position of all phases of the sugar industry by the institution of a sound, well-planned, and efficiently executed overall policy, and urge that the necessary studies be made by the Sugar Administration in close cooperation with the Philippine Sugar Association and the Confederation of Planters. The establishment of alcohol plants and plants for the manufacture of bagasse wallboard is proposed in conjunction with the operation of the sugar centrals. The authors suggest that soy beans offer a good potential crop for the Philippines and that peanut cultivation should be expanded with a view to the production of oils. The Report includes a number of suggestions considered of vital necessity to the copra and coconut-oil industries. With respect to the latter the writers declare: "It would F. H. STEVENS & CO. EL HOGAR FILIPINO BUILDING, MANILA, PHILIPPINES l. I I _ _ __ -- EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines FERN LINE To and From North Atlantic Ports Gulf Ports Philippines EVERETT ORIENT LINE Serving the Orient PHIL. STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarifias St., Manila Tel. Overseas 2-87-82 2-87-92 Tel. Interisland 2-63-82 Tel. Executive 2-97-38 I --- I A. C. HALL & CO. LOCAL ANI) FOREIGN SECURITIES I Members Manila Stock Exchange 201 Ayala Bldg. Tel. 2-74-52 I I 'II

October, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 211 be desirable if this product were one of the export products of the Philippines which would be able to enter the American market tax-free." The authors urge immediate financial aid to the tobacco industry for a "comprehensive mechanization and modernization of the manufacturing operations." Pointing out that abaca and abaca products, particularly rope and cordage, have made Manila and the Philippines famous throughout the world, the authors state that much can be done to aid the industry and they make a number of pertinent recommendations. As to ramie, the authors quote American experts to the effect that its future is "definitely promising" and recommend the establishment of a 10,000-acre plantation and a processing plant. The authors advocate the growing of both cotton and ramie in the country for textile manufacture. They recommend that the National Development Company Textile Mills be expanded and that an existing Japanese mill be re-erected in one of the Ilocos provinces to supply yarn and cloth to the weaving industry in that area. The establishmrent of a fi~-h twine and net industry is declared to be a sound financial venture which would be of great assistance to the rehabilitation and development of the fishing industry. The authors estimate that at least 1,000,000,000 board feet of sawn lumber will be needed in the Philippines each year for the next five years, while the estimated production of sawn lumber this year is only 325,000,000 board feet. They recommend the acquisition by the Government of a large mill (which recommendation at this writing has already been carried out), and also the establishment of a government-owned finishing mill. The erection of two plywood plants is recommended, one in Luzon and the other in Mindanao: also a number of pulp and paper plants to be located at "strategic points", and a paper-bag factory. The establishment of a wood distillation and charcoal plant is recommended for the production of charcoal, tar, creosote, and other products, and also a small extraction plant for the production of tanning materials. The erection of a small barrel and keg plant is recommended as being a useful and profitable venture. Under the heading, "Public Services", various existing and projected power-developments are taken up, with special emphasis given to the possibilities of the Maria Cristina Falls in Lanao in connection with the plans for two nitrogen fixation plants (ammonium sulphate) and a number of ferro-chrome units there. Construction without delay is urged of a hydroelectric plant of 70,000 KW capacity at a cost of P21,930,000. Plans in connection with highways, aviation, shipping, port facilities, and railroads are also briefly covered in this section, as also water and irrigation systems, sanitation, and education. The section on miscellaneous industries covers housing, pre-fabricated housing, shipyards and drydocks, and cottage industries, under which latter heading, embroidery, rattan furniture, abaca rugs, basketware, woodcarving, metal crafts, and handwoven textiles are considered as suitable for this type of industry. Under the heading "minor industries" are mentioned, finally, button and sheet-glass manufacturing. Plants for the assembling of automobiles are also briefly considered. The Appendix (30 pages) contains tables on timber stands, a classification of woods and their uses, requirements for various building materials, crop estimates, principal imports, pasture lands, real wages, etc. GLOBE WIRELESS RADIOTYPE SPEEDS THE WORLD'S COMMUNICATIONS RADIOTYPE YOUR MESSAGES 4otoWanl F~!G GLOBE WIRELESS LTD. Main Office 6TH FLOOR, CHINA BANK BUILDING Telephones: 2-97-91 2-95-17 FOR BETTER SERVICE Call 2-77-03 ALLIED Brokerage Corporation Manila Port Terminal Building Port Area Individual attention and competent supervision given to your brokerage requirements CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING Radio Communication Equipment and Service Lar:rest Stocks in the Philippines of spare parts for electronic equi pnment. Radio Electronic Headquarters 821 Misericordia, Manila Tel. 2-94-21

212 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 194 7 *TRUCKS * PICKUPS * TRAILERS * HEAVY LIFTS Available Daily Telephone 2-79-35 0 I] THE Chamber's reception held in honor of the new American Ambassador and Mrs. Emmet O'Neal at the Army and Navy Club on Wednesday, September 24, was a happy and successful affair, if we do say so ourselves. Besides the Ambassador and his wife and th ir two charming daughters, some six hundred members of the Chamber and their invited guests attended. The occasion was one of the first American get-togethers since the liberation, and it was a source of genuine happiness for those who attended to meet so many old friends again. There were many new faces, of a younger generation of Americans who have come here only recently, but the number of oldtimers who put in an appearance was a matter of general surprise. Estimates of the percentage of those present who were interned in Santo Tomas and at Los Bafios and Baguio, ran from 30% to 80%, although one guess was that there were only some 20% of ex-internees tbere. A quick check of the list of those who attended indicated that the actual percentage was just under 40%. That is a pretty good showing for the people who went through those years of trial and death. According to the Census of 1939, there were then 8,709 persons of American citizenship in th? Philippines, 3,191 of whom lived in Manila. Today, according to the Bureau of Imm'gration, 5,500 persons of American citizenship have registered as aliens, of whom around 5,000 live in Manila. This does not include some 1,766 Americans and their 450 dependents who are in the employ of United States Government agencies in civilian capacities (as of January 1, 1947), nor does it include United States Army and Navy personnel. We are pleased to record the fact here that numerous quotations from recent issues of the Journal have appeared in the Manila daily press, in some cases even weeks after the original articles appeared in the Journal. This indicates that much of what this monthly publishes is considered 'news' by the editors. In most cases, both the original authors and the Journal were given the appropriate "credit", but one afternoon paper was guilty of lifting an entire article (from the "Business View" pages), printing it on the front prg', and giving no credit to the Journal. The Journal is not copyrighted for the reason that we favor the widest possible dissemination of the information contained in the publication, but whether it is copyrighted or not, we have a right to expect that the ordinary ethics of the matter will be observed by those who quote from it. Failure to properly credit, is plain piracy. President Stevens of the Chamber recently received a letter from Mr. S. Garmezy, President of the Atlantic Gulf and Pacific Company of Manila, who is also a director of the Chamber, which ran as follows: "Dear Fred:-After reading over the last few issues of the American Chamber of Commerce Journal, I have come to the conclusion that it is absolutely necessary to continue the Journal. I believe that the editor and manager, Mr. Hartendorp, with the help of the different individuals and entities [among the monthly contributors], is doing a very good job. " In order to keep the Journal on a paying basis, it seems to me that more advertisements will have to be obtained. The members of the American Chamber of Commerce ought to advertise in this publication because it is worth while and merits their support." Mr. Stevens wrote on the margin of this letter, "Praise from Sam is praise indeed!' The following letter from Malacafian was addressed to the editcr. It came from Mr. Federico Mangahas, Private Secretary to the Presid- nt "This is just to thank you for the copies of the American Chamber of Commerce Journal. I saw the copy you sent to the President on his desk the other day, so I am assuming that he is availing himself of the use of its valuable information and ideas on the local business situation. "The Journal is different from your prewar Philippine Magazine in the character of its subject matter, but it certainly carries the same neat competence, insight, and vision for which a good many people hold the Philippine Magazine in grateful memory. "I am sending my spare copies of the Journal to P. E. Lilienthal, editor of Pacific Affairs, just in case the Institute of Pacific Relations, New York, has not as yet resumed receiving the copies of your Journal. I am sure the IPR is most interested to get the magazine regularly. I used to see it in its library in 1939. "All best wishes for your continued success." Members of the Chamber and readers of the Journal generally are voluntarily and generously helping to see to it that the various issues The - "LET YOUR HAIR DOWN" -- - ----- -Column Mr. Barrett Mr. Schedler LUZON BROKERAGE COMPANY

October, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 213 do get around. Mr. Montague Lord, for instance, sent Mr. Leon Rosenthal, Executive Vice-President of the Chamber, a letter from Baguio to which he had attached a letter from Mr. P. K. McLean, President of the Hawaiian Trust Co., Ltd., Honolulu. Mr. McLean's letter read: "Dear Mr. Lord:-Many thanks for the Journal of the American Chamber of Commerce of the Philippines. I have read 'a number of the interesting articles and I am 'passing it on to our Investment Department, where I am sure a lot of the information contained therein will be very useful to it. With kindest regards, etc." Mr. Lord himself wrote: "Dear Leon:-Here is an opinion from Hawaiian Trust on the Journal I sent them. They consider it interesting and have passed it on to their Investment Department... It has been cold here ever since my return; rains every afternoon, with rather much fog. It seems as though the weather is trying to make up for the dry July and August. The Government is rushing to get ready for the United Nations meeting* here in November. There will be 250 people or more to house and feed, and I think many additional visitors. We are well. The children are doing good work in school." This issue of the Journal contains several important articles and reports, but we wish to call special attention to the description of a new type of cargo-container in the "Ocean Shipping" column. Mr. F. M. Gispert, Secretary of the Associated Steamship Lines, who edits the column, wrote us about this as follows: "I think the attached write-up will be of considerable interest to your importer members and readers and could be run with my monthly report or anywhere else in the Journal as you may think fit. If the matter could be given ample publicity and importers introduced the use of this new type of container, it would solve all their waterfront troubles." A friend of Mr. Stevens called his attention to the following quotation which is most applicable to the present state of the world. The reader may guess for a moment as to the author. "The age in which we live should be distinguished by some glorious enterprise, that those who have been so long oppressed may, in some period of their lives, know what it is to be happy. This unfortunate generation has already paid its just tribute to misery. Many have perished in the bosom of their country, others have been obliged to wander with their wives and children through inhospitable lands. "Let the leaders continue to put an end to our present troubles. The treaties of peace are insufficient for *The ECAPE-the United Nations Economic Commission for Asia and the Far East. I L I Of course...they're B. F. Goodrich Silvertowns I Many driving tests on police cars, taxi fleets, special test cars, and everyday driving for nearly two years prove that these B. F. Goodrich tires outwear... outrun... and outlast tires of prewar construction. They're built with a unique, wider, flatter tread over a 35% sturdier cord body. If you're looking for better mileage, more traction and greater safety... see us today for the tire that outwears prewar tires 0"" GOODRICH INTERNATIONAL RUBBER CO. 13th & ATLANTA STS., PORT AREA, MANILA, P. I.

214 AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1947 I I WARREN KNIGHT STERLING INSTRUMENTS Philippine Distributors. E. S. & S. CO., INC. 673 Dasmarifias (Gibbs Bldg.) Tels.: 298-16Lcal 2-98-17cal L their purpose; they retard but can not prevent our misfortunes. We stand in need of some more durable plan which will forever put an end to our hostilities, and unite us by lasting bonds of mutual affection and fidelity." The quotation was carried in a masonic publication, two months old, but the words were first written about the year 400 B.C.-by Isocrates. Isocrates was an associate of Socrates and Plato and was one of the wisest of Greek political thinkers. His appeal was directed chiefly to Philip, the father of Alexander the Great, to whom he looked for the unification of the Greek states. An editor today might rewrite the old paragraphs to read: The age in which we live is to be distinguished by what many believed was a most glorious international enterprise, the establishment of the world organization known as the United Nations. For a time it seemed that the people of many countries who have been so long oppressed might be happy and that the whole world might be freed from the terror of war. This generation particularly has paid full tribute to misery. Many millions have perished in their own or in foreign countries; millions more still live under oppression; others wander bereft and alone in inhospitable lands. Twojyears after the most destructive war of all time, peace-treaties between the chief adversaries are still to be negotiated, and new enmities are forming. What has been achieved is wholly insufficient, and may retard but can not prevent ultimate disaster. Let our leaders continue to strive with untiring determination to put an end to these troubles. We stand in need of a form of world government which will forever end our hostilities and unite us all as citizens of our one world. This is modern, yet age-old. The scene has widened to include the whole world. The peoples involved constitute the whole of humanity. The urgency has grown in proportion. The alternative has become totally monstrous. We regret that due respectively to the illness of the temporary absence of the writers, several of the regular columns in "The Business View" Department has to be omitted in this issue of the Journal. 33 CHINA ST. GHAUT PENANG S. S. HEAD OFFICES: 5th FLOOR, INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-87-29 CABLE ADDRESS: "SUGARCRAFT" C. F. SHARP & Company, Inc. STEAMSHIP AGENTS OPERATORS SHIP BROKERS GENERAL ORIENTAL AGENTS: THE WATERMAN STEAMSHIP CORPORATION MOBILE, ALABAMA, U.S.A. THE IVARAN LINES-HOLTER-SORENSEN OSLO, NORWAY PACIFIC ORIENT EXPRESS LINE SAN FRANCISCO GENERAL STEAMSHIP CORPORATION SAN FRANCISCO SIMPSON, SPENCE & YOUNG LONDON-NEW YORK GENERAL AGENTS: THE REARDON-SMITH LINES CARDIFF, WALES THE SHEPARD STEAMSHIP CO: BOSTON, MASS., U. S. A. BRANCH OFFICES: UNION BLDG. ROOM 209 P. O. BOX 558 DOLLAR BLDG. SINGAPORE 51 CANTON RD. S. S. SHANGHAI, CHINA CENTRAL TOWER 703 MARKET ST. SAN FRANCISCO CALIFORNIA, U.S.A. - ONLY P 20 DOWN FOR EACH SQ. METER of high land in any of MAGDALENA ESTATE subdivisions, the today much-desired suburbs. INVESTORS.. HOME-SEEKERS act at once-TODAY!... We still have P6.00 homesites for sale in and up University, Espaiia, per sq. m. Quezon City, Camp Murphy, and New Manila. Lots: 300 to 5000 sq. m. Only 20% down-the rest payable in monthly installments. MAGDALENA ESTATE, INC. 211 Consolidated Investment Bldg. Plaza Goiti, Manila Republic of the Philippines Department of Public Works and Communications BUREAU OF POSTS Manila SWORN STATEMENT (Required by Act No. 2580) The undersigned, A. V. H. HARTENDORP, editor and manager of the American Chamber of Commerce Journal. published monthly in English at the Office of the American Chamber of Commerce of the Philippines, Manila, 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: Editor, A. V. H Hartendorp, 512 Insular Life Building, Manila Business manager, A. V. H. Hartendorp, 512 Insular Life Building, Manila Owner, American Chamber of Commerce of the Philippines Publisher, American Chamber of Commerce of the Philippines 512 Insular Life Building, Manila Printer, McCullough Printing Company, 1104 Castillejos Street, Manila Stockholders owning one per cent or more of the total amount of stocks: None. Bondholders, mortgagees, or other security holders owning one per cent or more of the total amount of security: None. Total number of copies printed and circulated of the last issue, dated September, 1947: Sent to paid subscribers.......... 600 Sent to other than paid subscribers.. 1200 Total........................ 1800 (Sgd.) A. V. H. HARTENDORP Editor and Manager Subscribed and sworn to before me this 26th day of September, 1947, at Manila, the affiant exhibiting his Residence Certificate No. A 34115, issued at Manila on January 14, 1947. HILAIION O. EGUIA Notary Public Until December 31, 1948 Doc. No. 274; page 33; Book No. V; series of 1947. L

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SEP 7 1948 THE AWEF COMMEF ~~~~~~~ fn *f, / *'w _ ' ^Y^^V Cd) J __.', t'.* \ ':^ ' ^^ ^jfii~~~~~~~~~~~~i?^ ^~~fil Published monthly in Manila by the American Chamber of Commerce of the Philippines Fifth Floor, Insular Life Building Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries CE Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; John L. Manning, Vice-President; Fay C. Bailey, Treasurer; E. G. Baumgardner, Max Blouse, John F. Cotton, Samuel Garmezy, G. C. Miller, and J. A. Parrish. Leon Rosenthal, Executive Vice-President: I. T. Salmo, Secretary. Vol. XXIII Novembers 1947 No. 7 Contents EDITORIALSUnder-Secretary Balmaceda PRATRA Recommendations of the United Nations Special Committee on Palestine Humanitarianism versus Communism Ten-year Review of Philippine Business Trends The Luzon Brokerage Company. The Business ViewOffice of the President Money and Banking Stock Market Credit Insurance Electric Power Production Real Estate. Construction Port of Manila. Ocean Shipping Inter-Island Shipping. Air Transportation Land Transportation (Bus Lines). Gold. Lumber Copra and Coconut Oil. Synthetic Detergents Philippine Refining Co., Inc.. Desiccated Coconut. Manila Hemp. Sugar Tobacco Machinery Automobiles and Trucks Drugs, Health Supplies, and Toiletries Textiles Legislation, Executive Orders, and Court Decisions Philippine Government Corporations Labor Cost of Living Index. Philippine Safety Council Other Chambers of CommerceChamber of Commerce of the Philippines Spanish Chamber of Commerce of the Philippines. Business Book Reviews The "Let Your Hair Down" Column 50 centavos the copy 219 219 220 221 LEON MA. GONZALES...222 A. H. BARRETT.. 224 Official Source..... 226 C. R. LEABER.... 227 A. C. HALL...... 227 D. BURN...... *. 228 A. H. HENDERSON... 229 J. F. COTTON.... 229 C. M. HOSKINS...229 H. H. KEYS..... 230 H. W. TITUS....230 F. M. GISPERT.... 231 D. M. CAMERON.... 231 V. A. BRUSSOLO AND PAN AMERICAN WORLD AIRWAYS... 232 L. G. JAMES..... 233 C. A. MITKE...... 234 E. C. VON KAUFFMANN... 234 M. IGUAL AND K. B. DAY...234 M. Igual and K. B. Day.. 235 K. B. DAY...... 236 H. R. HICK.....236 M. COOK......236 G. G. GORDON....237 CONDE DE CHURRUCA... 237 V. E. LEDNICKY...237 J. L. MANNING.... 238 F. A. Delgado..... 23S J. TRAYNOR..... 241 R. JANDA...... 241 Official Source..... 242 Official Source..... 244 Bureau of the Census and Statistics 244 F. S. TENNY..... 245 P. J. OCAMPO...245 J. M. ROSALES.... 246 DAVID MINSBERG...251.. *....... 252

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THE AMERICA COMMERCE Editorials The American Chamber of Commerce of the Philippines wishes to express its gratification over the appointment of Mr. Cornelio Under-Secretary Balmaceda Balmaceda as UnderSecretary of the new Department of Commerce and Industry, recently separated from the former Department of Agriculture and Commerce. The Chamber congratulates His Excellency, the President, on having found a man of Mr. Balmaceda's integrity, ability, and experience to occupy this important position, and Mr. Balmaceda on having received the appointment. Mr. Balmaceda, a Harvard graduate, was Director of the pre-war Bureau of Commerce, and can be said to have risen to his present rank entirely on the basis of merit. PRATRA, which sounds like the name of some monstrosity in the Indian pantheon, stands for the Philippine Relief and Trade Rehabilitation AdministraPRATRA tion, a new government corporation which represents a fusion of the former Philippine Relief and Rehabilitation Administration, the National Trading Corporation, and the purchasing department of the National Cooperatives Administration. In setting up this new entity, the Cabinet was reported to have been against the inclusion of the relief functions, but as the old PRRA was designated by UNRRA (the United Nations Relief and Rehabilitation Administration) to handle UNRRA relief work in the Philippines, and UNRRA insisted that the PRRA continue to handle this until that xorld organization terminates its activities here, it was decided that PRATRA would continue the relief functions of PRRA. Basically, however, PRATRA is not simply an entity which directs and manages the Government's relief and rehabilitation activities, but a government trading corporation after the nature of the former National Trading Corporation which it absorbed,-of the spoiled cannedmilk fame. The powers granted by the Presidential Executive Order which created it, are truly enormous. Pertinent sections of the Order, setting forth these powers, were published in this Journal last month. The Order authorizes PRATRA "to undertake the prevention of monopolization, hoarding, injurious speculation, manipulation, private control, and profiteering affecting the supply, distribution, and movement of foods, clothing, fuel, and other articles of prime necessity". Those are very broad, in fact, dangerously broad powers to vest in any general manager or board of directors of any conceivable grade of ability and honesty. PRATRA may also - "acquire foods, clothing, fuel, fertilizers, chemicals, construction materials, implements, machinery, equipment required in agriculture and industry, and other articles and commodities of prime necessity, both imported and locally produced or manufactured, for sale in such a manner and at such prices as may be determined by the Board of Directors". It may furthermore - " enter into negotiations and contracts with other agencies and branches of the Government and public or private corporations or associations for the manufacture or distribution of goods that it may consider necessary to insure the availability of the supply thereof in the interest of public welfare and the national economy." It sounds as if the drafters of this Order tried to summarize all the possible economic, agricultural, industrial, and commercial activities of man, and then gave this PRATRA not only blanket authority to engage in all these activities, but to wield a large measure of arbitrary power and control over all public and private entities engaged in these same activities. In other democratic countries, the danger of clothing a commercial entity with governmental powers has long been recognized But even that is not all. All this authority and power is to be directed toward a certain designated end which is dangerously invidious on its face, though described in superficially persuasive language. PRATRA is directed " to find ways and means of encouraging and assisting Filipino retailers and business men such as by supplying them with merchantable goods at prices that will enable them to compete successfully in the open market". There could be no warrantable objection to the Government of the Philippines adopting measures to encourage and assist its own nationals in business, provided these are fair and do not unjustly discriminate against other nationals who live and are are engaged in business here, contribute to the country's welfare, obey the laws, and pay the taxes. But the wording of this Order suggests that combinations actually existed which made it impossible, before 219

PRATRA, for "Filipino retailers and business men" to "compete successfully in the open market". Untrue though this is, the Order implies further that "ways and means" are to be "found" to put all others than these Filipino retailers and business men at a disadvantage. One such "means" would be to job the, import allocations in such a way as to serve selected Filipino retailers and business men with certain monopolistic advantages, which certainly would not be "in the interest of public welfare and the national economy." As a sovereign government, the Government of the Philippine Republic can do pretty well what it wants to do in enacting its laws and issuing its executive orders. There is no one in or outside the Philippines who has the power to cancel a line, although should there be a violation of some treaty right, protest could be lodged. But for any government to run crassly counter to generally accepted principles of justice and equity in the treatment of all who live under its jurisdiction is, of course, never advisable, and is especially stupid in a country which is vitally dependent upon outside capital. Fortunately, there are those in this country, men in high places among them, who are not swept away by a spirit of blind and narrow nationalism, and it is to be hoped that they will see the danger of such a spirit at work in drafting the laws and orders of the country. With respect to PRATRA, the Government evidently developed some misgivings shortly after the reorganization. According to the Manila Daily Bulletin for October 20: "President Roxas and his Cabinet last night decided to restrict the business activities of the PRATRA to non-competitive commodities and directed that government-owned agency to concentrate its efforts in securing goods and materials which are scarce and are being blackmarketed here. "The President made it clear that he does not want the PRATRA to import articles that are already being imported and are sold here on a competitive basis. In order to fulfil the objectives for which this entity was created, he said, it should limit its importations to products that are the subject of black-market prices, such as construction materials." This constitutes a very timely clarification and rectification, but it can nevertheless not be overlooked that the Executive Order which established PRATRA and which gave it its extraordinary powers still stands unchanged,powers which it is in a position to exercise most arbitrarily, especially in sales to selected and favored "Filipino retailers and business men" and through the commandeering of imports, at arbitrary prices, in the hands of its competitors,-private business entities. Before proceeding further in the multiplication of such organizations as PRATRA or bestowing ever greater, and indeed monstrous powers on those which already exist, it would be well for government leaders here to contemplate the fact that our modern, democratic civilization is based chiefly on private initiative and enterprise in economic organization, and that such government corporations as are now being devised are apt to choke and destroy, rather than to encourage and assist such initiative and enterprise in the Philippines. The recommendations of the United Nations Special Committee on Palestine, probably soon to be put in effect, will tend to right and to Recommendations of the alleviate a wrong and a United Nations Special tragedy which runs through Committee on Pajestine the whole of written history and which came to a horrible climax during the Nazi domination of Europe in the mass-murder of over 6,000,000 innocent people. Thousands of those left alive still live in grief and bitterness in huge concentration camps. Under the program recommended, Palestine, over which Great Britain has held a mandate since World War I, will be recognized as independent after a transition period of two years, but will be constituted as two separate states, one Jewish, one Arab. The Jews will have about two-thirds, or 6,000 square miles, of the total area,-not all of it, as was promised them in the Balfour Declaration of 1917, which was endorsed by the principal Allied Powers in the Treaty of Sevres (1920). The part of the country to be Jewish is less in area than the State of New Jersey and about the same as the Island of Palawan. The total population of Palestine is estimated at around 1,750,000, of whom some 60% are Moslems, 30% Jews, 7.5% Christians, and 2.5%0 other than these. The minority members of the Special Committee recommended the establishment of a federated state, but the Jews object to this on the ground that this would be an Arab state with the Jews in the minority. Arab spokesmen still bitterly oppose a settlement on the basis of partition, declaring that the United Nations do not have the right to take any part of their land and give it to the Jews, but the situation and the problem it presents is not as simple as that. The problem is international in scope and transcends local considerations. And Palestine was the ancient Jewish home; the Arabs may, in a sense, be said to be the interlopers. Furthermore, the area to be included in the Jewish state embraces but a very small part of the Arab lands. The Arabian Peninsula is around 1,000,000 square miles in area, most of it very sparsely populated. It was only during the first World War that the Arabs were freed from the Turks who had ruled them for four hundred years. Before that they were subject to the Mamelukes of Egypt. The Frankish crusaders held Jerusalem for almost a hundred years, between 1099 and 1187. The Hebrews were closely related to that great trading people, the Phoenicians, to whom we owe our alphabet. About a thousand years before Christ, the Hebrews established an independent kingdom which rose to its greatest height during the reign of Solomon. After that the country was invaded and overcome by many nations, including the Assyrians, Babylonians, Egyptians, Persians, Macedonians, Romans, and Byzantines. Repeatedly great numbers of them were carried off into foreign captivity. The Arabs, or, rather, the Moslems, did have one period of glory, lasting around a hundred years between 650 and 750 A.D., when they overran Persia and Armenia, Northern Africa, and a part of Spain, but during this time the center of Islam shifted from Medina and Mecca to Bagdad, and the so-called Arabic culture was Persian, Egyptian, Greek, Indian, and-Jewish. One historian states: "It is difficult to say, in the case of thisArabic culture, where the Jew ends and the Arab begins, so important and so essential were its Jewish factors." The Jews and the Arabs both belong to the Semitic race. Traditionally they are both descended from the patriarch Abraham, through different wives. They should get along well together, and the Jews in Palestine say that they do, and that the opposition to them comes not from the common man, but from political agitators in Palestine and other Islam countries, and from feudal chiefs who fear the emancipation of modern ways of life. Palestine, though an ancient center of civilization, is a land which has for centuries been one of the most backward, povertystricken, and disease-ridden regions in the world. (The Jews should be paid for cleaning it up!) Since Palestine was opened to Jewish immigration, it has made remarkable advances in agriculture, industry, and commerce, and the establishment of an independent, prosperous Jewish state, which would draw many of its citizens from all parts of the modern world, would serve as an example and stimulus to the whole Near East, benefitting the Arabs among the other inhabitants. Probably the great majority of those of Jewish blood throughout the world, especially the better-assimilated, will never wish to leave the countries of their adoption, but the existence of a Jewish "national home" would re 220

lieve the social pressure upon the Jews,-the instinctive antagonism toward any "out-group" which is the basis of "anti-Semitism" where this is not deliberately provoked for political reasons, as it was in Nazi Germany. There is nothing "mysterious" in the fact that in many countries the Jews have long served as the most convenient target and scape-goat for the rabble-raiser and the cruelty of the mob. From the world statesman's point of view, the development of a vigorous, Western-minded, and highly ethical people on the littoral of Asia Minor, would constitute a most important reenforcement of civilization in what is still a potentially turbulent area. But above all, the rights and dreams of a great race which has made and continues to make most vital contributions to human advancement despite oppression and suffering, must be recognized by the world. Through their loyalty to their ancient ways and traditions during centuries of dispersion, the Jews have largely remained a distinct and single-minded people, who by everything except military reconquest have earned the right to regain a place of their own on earth. On every side the warning is voiced that the prolonged misery of the people of Europe must be allayed, or they will be overwhelmed by "comHumanitarianism munism." versus Communism Why is this so fatefully true? Is it that communism could do what democracy is unable to do? Is it that a transition to communism would be the free choice of the people? If so, the people and governments of other countries and continents would not have the right, under any true conception of democracy, to interfere. That is what the Stalin oligarchy claims, with tongue in cheek. It is only because such a convulsion would be the result both of the general demoralization of the people,political, economic, and psychological, and of aggression on the part of the Russian rulers, that other democratic people, more happily situated, ha-re the right and the duty to exert their utmost effort to save the mother-continent of Western civilization from what would be a cataclysmic reversal of the great democratic movement which began, twenty-five hundred years ago, in ancient Greece. Does communism offer anything which democracy does not? Communism pretends to a paternalism (its policeactivities are far from paternal) which promises work and subsistence to all,-except those who oppose it. This has its appeal to the weak and poor in spirit; hence the danger of this appeal in time of material and moral deterioration. A strong, confident people will reject governmental paternalism even at its best, and the infantilism and helotism that go with it. The communistic system entails not only the loss of choice of work and of residence and the right to quit work or to "strike", but all the fundamental individual, civil, and political rights of democracy, the most important of which are freedom of thought, speech, and press, and the right, through free elections, to control the government rather than dumbly to be controlled by it. Dictatorship runs directly counter to the naturally independent will and pride of normal men, and it is for that reason that communism, where established, can maintain itself only through a suppression of all real criticism and a ruthless destruction of all opposition. The communist state must begin and end as a police-state, in which the government rules through turning men into driven cattle. The American policy in bringing aid to Europe in the form, this time, not of armies, but of food and machinery for renewed peace-time production, strikes at the heart of the situation and is based on the belief that men in their right minds will never embrace slavery. It is this issue of individual human rights and the control of the government by the people, which is of the most crucial importance in the further advance of mankind,-not the issue of property-ownership, of which communism makes so much; That issue is rapidly dwindling in importance with the development of modern technology and the "abundance for all" which is clearly in sight. Wellmeaning theoretical communists still think in terms of the past, of limited capital and unavoidable scarcity, poverty and hunger,-to ameliorate which they would make the most suicidal sacrifice, that of the principles of liberty and popular sovereignty. War has thrown the people of Europe back a hundred years; poverty, misery, hopelessness are general. But that is only temporary, until help can be brought to them. For though democracy requires that men stand on their own feet, it does not preclude mutual aid in time of need. Democracy, indeed, implies cooperation, a standing of the people together, because in their union, rather than in a tyrannical government, there is might. While the now avowed enemy preaches his Satanic gospel of envy and hate, spreads confusion, and craftily plots to impose his slave-regime upon many nations, the people and the government of the United States of America have never shown a nobler and more enlightened humanity than when they decided,-and so soon after their tremendous sacrifices in the war against fascism, to further tax themselves and to stint their own consumption in order to bring additional material aid to these countries, thus to check by sheer humanitarianism, this new despotism which threatens them and, ultimately, all civilization. "We have every reason to rejoice that we have locked our destiny with the strongest and noblest nation of the earth." President Roxas 221

Ten-year Review of Philippine Business Trends By Leon Ma. Gonzales Director, Bureau of the Census and Statistics T WO and a half years after liberation, the Philippines — *finds itself in a state of re- -. lative prosperity. The strong cash ^;''" ' """:' position obtaining at present has,: been largely responsible for it. -... -- Convertibility of the peso into the dollar without difficulty has made this country one of the best mar-. kets for foreign goods today. In effect, the import trade for the last ^ - two years has been among the.highest registered so far in the history of the nation. A speedy rehabilitation and reconstruction of a war-devastated - 9'3 ' economy is also another desirable result of an abundance of cash Chart resources. Our business indicators show a rising trend in corporate investments, electricity production, building construction, and gross sales-all indicative of considerable business activity. Cigars and lumber are still below pre-war level, as are many other local industries crippled by war, but they are, however, slowly picking up as the rehabilitaticn continues to forge ahead. The local commercial banks are in the pink of condition. Their combined resources have grown to more than * --- —-- --- ------ --- 40 -I?,~t -. lii ~.-e.;..;..,.,...-:;.i...... ^...,.......:.......I.......;,............: i........., ~......;..:,~,, i s-l 1-s * v. ~ ~~T ~i":" I' go'~. a }!:~;,:... >.. -, * -d,;(: * r~gaa'T'lg~C;:.9t* 4~~~~~~~~~ _.; -. I. ~. u. *~l~.;.,, - -L I ~ -.L A* e~ i- - -. 'V _ _ I n i ~: r: ~~~n-~~~-~ —~rcr ~ I 1 11 I -P 7X~*.i l..1 A-;ig -4 - i showing the Trend of General Business Conditions (Monthly average for 1937=100) twice that of the base year. Bank loans, discounts, and overdrafts, show a steep uptrend since 1945, a consequence of a liberal loan policy to help speed up economic reconstruction. The bank debits (which represent the sum-total of withdrawals from bank deposits) likewise show a sharp trend upward, another unfailing sign of an active circulation of money that indirectly benefits business in general. The trend of general business conditions is, thus, upward. Using 1937 as the base or normal year, our index 24~1r-"lt46V 6 CQMO$iS IHI -f K POpel C 3D882T T IIM G QtSTR388UT3O;( P &UION OR 4-d 410~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 88L~~E -r -;prr v~~ rCwjs 40~s -i~~-: ~~- ~-a 60 88 02 - - -.. - ~ ~c~-; ~- ~ ~- - - ~~; 20L - - -- - — ~r 288 -2 80~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~; -0 68~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ — ~4 20 'A ---' 1 -~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - - 43 28 - - - -i 4 99*1 rg4 E~ i 94 has risen from 100 of that year to 226.4 as of June, 1947. This index has been arrived at after a scientific weighting process which includes the different items that represent the groups of business activity under Finance, Production, and Distribution. The highest index recorded since liberation was 252.7, and this was for March of this year. That the strong financial position is the bulwark of present economic activity is further shown by the Index of 399.4 for Finance for August, 1947, as compared with 100 for 1937. In July, 1947, the index was 443.8, one of the highest. The post-war peak was 466.0, for November, 1945, and this happened at the height of inflation in the Philippines. Composite Chart showing the Trends of Production, Finance, and Distribution 222

Monthly Business Indicators (1936-1947) (Monthly average for 1937=100).aI..,,,. 7~. ~. -! l ~.! -I- e I 4 _ '^- 'a ' '............. ~. f '.I- Z — J: ' - - 4:u ' ~:tf -" ' ' ~ " J' - ' '. M ' i ',WVV~~ A.,. I,;.,, <: BANK OANSOVERDAFTS I~:..; —:@_AY.!OL~......, MONETARY C I R,UL T.. FINANCE DISTRIBUTION.'*: -.- -; - r ' -—:~:;.I W......_ '... -~ ~'r........m ~ -~ -:.;~-;... '..' ~ i'~.Jr 1 - ',I:,-.: —~-iT; ---~... ~1 ': 1 i -!r ~~i ~~, kM i L.,.. —,, 4 5- 4 ~, -,,!. BIi ^ '. '.... -,:. 'v^ i' W ^ ':.*...': ''-'!.:?,-!'". t, ', ", ' ', " ~~ ~,~I;t *..... h~;.... ' '~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~" P'" -'.:....:- 5- "'i....:...'.....J. ~,;a/:~?~::" '/r~,iS^^,;^ i.^. '-:::::::::::::-~:.-:',-i-''"-'"'": '* '~-' i'.:?', "^:;p l -.,li5~!,t'" -,,,Soi,,:......~,C... s,, ~', ' o. X i v.....', '.;........ ~..... ~...,.,, -, i' " t..........'.'...-...........;,' 7-~~~~~~~~, i",,:.:: 1:.,.|.RO C T ION - *RODCTI N,,.?'..... - PRODUCTION Production has its strength in the present buildingconstruction boom. Electricity production is also showing a sympathetic trend. These two are largely responsible for the index of 161.5 for Production registered for June, 1947. They make up for the weakness of other industries which may take some time to rehabilitate. The Distribution level is the least impressive among the three groups, in spite of the unprecedented size of both foreign trade and gross sales. The index for June, 1947, was 124.0, which is only 24 points above the pre-war (1937) level. Freight-car loading and steamship freight have been pulling down the index-a sign that the volume of Philippine products being transported has not yet reached pre-war average. 223

The Luzon Brokerage Company By Arthur H. Barrett Vice-President, Luzon Brokerage Company SPEAKING before the Seattle Chamber of Commerce, J.B. ("Bart") Richards, Commercial Attache of the American Embassy in Manila, gave credit to the Luzon Brokerage Company for the part it has played in the rehabilitation of the Philippines now in progress. By definition, a customs brokerage is an entity which transacts customs business or acts on behalf of others in connection with the importation and exportation of goods, entrance and clearance of vessels, warehousing, and deliveries. The business calls for a full knowledge of customs laws and regulations, tariff classifications, routing of official papers, and filing of formal protests when necessary. The customs broker can be of service to the individual who is baffled by the numerous technicalities involved in the sending or securing delivery of no more than one small package, or to the business firm which lacks the equipment or time for these phases of its activities. The Luzon Brokerage Company has not only revitalized its pre-war services, but now offers many new facilities to the public. While its main offices are situated in the Port Area, the Company recently opened an office in down-town Manila, and shipping documents can now be handled at both places. The old offices, fortunately, suffered but minor damage during the enemy occupation and in the fighting for the liberation of the city. The continuing major activity of the Company,-the movement of cargo from the piers to warehouses or customers, involves not only a multitude of technical details in paper-work, but calls for the physical handling of tremendous loads. The Company's equipment now comprises around 100 trucks, large and small, flat-beds and trailers, cranes and derricks. It has the following warehouse facilities available for exporters and importers: three bonded warehouses and two general warehouses on Cristobal Street, Paco; an export bodega just south of the Jones Bridge; a bonded customs storage compound in the rear area of the San Augustine Church; large open storage space in the Port Area; and a barge,-L-265. Generally the cargo is taken from the piers; however bulk shipments are sometimes delivered shipside. The shipment must be large enough to make at least one cascoor lighter-load, around 30 tons. In such cases no arrastre* charges are imposed. There is a checking charge of 60 centavos a ton. In the case of frozen merchandise or goods of a perishable nature, special delivery permits can be obtained, this involving an application and an affidavit, accompanied by a shipside bond, guaranteeing the filing of the regular entry papers within 72 hours after the goods have been delivered. The Luzon Brokerage Company, in addition to effecting the delivery of merchandise brought in by ships, also provides a service for merchandise received from abroad through the post office,-technically designated as "parcel mail" or "informal entry". This covers two categories of merchandise,-that entitled to free entry and that subject to duty. As did every other business in Philippines, the Luzon Brokerage Company suffered heavy damages during the war. The story of destroyed equipment, wrecked offices, death of personnel, and lost records, is familiar to all. But the challenge to begin all over again, to restore and rebuild the business, brought back many of the oldtimers and induced new men to lend a hand. The importance of the brokerage business in the life of a community was emphasized immediately after the liberation in Manila when the United States Army requested the assistance of the Luzon Brokerage Company in clearing the piers and expediting the flow of necessary commodities from the docks to civilian consumers. With a limited number of Army trucks, the goods started moving. Operations were at first conducted on an emergency basis, with the use of any equipment that could be borrowed or salvaged. New equipment was practically impossible to secure because the bulk of shipping-space was required by the military to supply its large forces in the country and in preparing for the planned invasion of Japan. Civilian imports were restricted to only the most necessary commodities. Rehabilitation and expansion, therefore, were slow, / One hundred forty drums (empty) on one trailer Some more good loads 224

but the Company kept forging ahead until February, 1947, when it became a victim of the strike contagion prevalent at the time. In spite of the fact that the employees of the Company were already receiving higher wages than other laborers engaged in similar work in the city, demands were presented for a 100% increase in wages and other desired "benefits". After all negotiations had failed to bring about a settlement, the management, believing that it would be impossible to continue operations under the conditions set by the strikers, decided to cease operation. The understanding and cooperation of the customers who came in to collect their valuable shipping documents at that time, showed how aware All business executives were of the extremely unsettled conditions then existing. But once again, the emergency brought out the importance to the community of the Company's services. Just after the liberation, operation had been resumed at the request of the military. Following the strike and the decision of the management to quit business, the Court of Industrial Relations ordered the Company, as a "public service", to go on again. The Company was therefore reorganized and operation was continued under the management of Edmund W. Schedler as Treasurer, and the writer as Vice-President. Mr. Schedler is from Oklahoma and first came to the Philippines in 1924. He was an executive of the Insular Life Assurance Company and of several other insurance and brokerage firms until the war; during the war he rose to the rank of a lieutenant commander in the United States Navy. The writer was a civil engineer with the U. S. War Department and volunteered for duty with the Army Amphibious Engineers in July, 1942. He landed in Leyte with his unit on October 20, 1944, and was discharged as a colonel, ORC, in August, 1946. The Company now has the services of a number of very capable men, as may be seen from the success with which they handled a number of jobs calling for considerable "know-how". One was the moving of four 28-ton generators from Pier 13 to the Makati Power Plant and placing them in position there, and removing the old generators and transporting them to the Caliraya Hydroelectric Plant at Lumban, Laguna. Another ticklish job was the handling of a 150-foot flag-pole, weighing 4 tons, which was brought to the Luneta with the aid of a tractor-trailer and a dolly placed 30 feet from the end of the pole. On some occasions the Company has been approached by old customers with requests to add new and specialized equipment. Recently the Company was asked. to establish an armored-car service for handling valuables and payrolls. Bullets fired into several vans specially constructed for this service have shown that the new equipment provided is adequate. A floating export bodega has been put in operation to handle incoming and outgoing cargoes on inter-island vessels, to eliminate double handling. In addition to constantly improving its equipment, the Company has expanded the scope of its services generally. Under the terms of an agreement with the General Superintendence Co., Ltd. of Geneva, Switzerland, the Luzon Brokerage Company has been appointed as Agent to operate an inspection service in the Philippines. Company men are now stationed in a number of outlying ports as well as in Manila to supervise and certify surveys of import and export cargo. In the case of copra and copra-cake, for example, this supervision includes the inspection of the cargo by an expert at the shipper's warehouse to ascertain that it is of good merchantable quality. During the inspection, several sets of samples are drawn and sealed in a container by the shipper and the Luzon Brokerage Company jointly. These samples are analyzed by a recognized laboratory and an analysis certificate is obtained, showing the percentages of moisture, oil, and fatty acids. Supervision is also made of the bagging at the shipper's warehouse and in the subsequent weighing of the bags, of which a careful tally is kept, in order to ascertain the number of bags weighed as well as the tare to be deducted from the total gross weight found. Where transportation by truck from the shipper's warehouse to the wharf or to lighters is necessary, a strict control is exercised over the trucks, to insure their reaching their destination with all the bags which were loaded at the warehouse. Many other details are included in the reports which are rendered in connection with this service, which is supervised by J. A. Steiner, a Swiss citizen, who has a valuable background in twenty years of shipping and insurance experience in the Far East. The Luzon Brokerage Company has been contracted, too, as fiscal representative by the United States Commercial Company and the Reconstruction Finance Corporation for all financial transactions not fully liquidated. Another expansion of the Company's activities came in July when it began the operation of a service-station on Echague Street to service all vehicles operated by the various federal agencies of the United States Government here. The Company takes pride in the various services it is extending to its customers. It is fully pledged to move along with other free enterprises in the Philippines in the present effort to restore normal business operations. *Arrastre (from the Spanish, meaning literally "haulage") is the operation of loading and unloading the cargo of a vessel. A compensation is collected by the port authorities or some delegated company from the owner of the merchandise for this service, which compensation is called also "arrastre." "The present issue is simple... whether men are to be left free to organize their social, political, and economic existence in accordance with their desires, or whether they are to have their lives arranged and dictated for them by small groups of men who have arrogated to themselves this arbitrary power." Secretary of State George C. Marshall 225

The Business View A monthly review of facts, trends, forecasts by Manila businessmen Office of the President From an Official Source Sept. 16-President Manuel Roxas, in a speech in Cotabato, urges borrowers of crop-loans from the Government to make the required repayments. He reveals that he had already ordered the repair of 200 steel bridges in the province. Sept. 17-Secretary of Justice R. Ozaeta, in a letter to the judges of the three branches of the Municipal Court of Manila, calls their attention to the frequent intervention of "fixers" in the business of these courts and suggests that, to do away with this anomaly, the judges refuse to permit the intervention in any case of anyone but the interested party himself and his authorized attorney. Sept. 17-Malacafian releases a letter from Secretary Ozaeta addressed to the Adjutant General, PHILRYCOM, supporting the City Attorney of Baguio in his decision to prosecute a certain Army officer in the Philippine courts. It was argued that the accident which befell the officer occurred on a recreational trip and therefore was incurred in line of duty; the Secretary held that this could not be considered military duty within the meaning of an article in the Military Bases Agreement. Sept. 18-Commissioner of the Budget, Pio Pedrosa, in a speech before the Rotary Club, states that revenue collections have increased from P58,000,000 the year before to P170,000,000 last year, which may still be bettered this year to approximately P230,000,000. Last year's actual collection of P170,000,000 was increased by the receipt of P120,000,000 secured as a budgetary loan from the U. S. Reconstruction Finance Corporation, and P23,000,000 from the liquidation of investment bonds. Expenditures decreased from the P374,000,000 authorized for the fiscal year just ended, to P270,000,000 for the current fiscal year. The budgetted expenditures are still from P40,- to P50,000,000 in excess of the estimated income. The total appropriation available for public works will, when the P240,000,000 of the United States wardamage fund has been released, amount to P332,400,000. The amount set aside for the purchase of materials and supplies is P14,400,000, and for office furniture and equipment, including automobiles, P19,600,000. Secretary Ozaeta is reported by Malacafian to have rendered an opinion rendering the Pan-American World Airways Company subject to the increased franchise-tax passed by the Philippine Congress last year. The Comn; pany contended that the tax should not apply because a general law can not be deemed to amend by implication the provisions of its franchise. Sept. 19-The executive board of the Philippine Government Employees' Association having petitioned the Reorganization Committee, through its Chairman, Commissioner Pedrosa, to recommend to the President that provincial, city, and municipal employees be extended a basic pay of P50 plus bonus and that increases be automatically given to those who are receiving less than P80 a month whenever funds are available, the Commissioner states that the matter will be carefully studied. (See under the column "Labor" for the action taken by the President under date of September 29.) Sept. 20-Malacafian approves the principal special budget of the Bureau of Public Works for the fiscal year ending June 30, 1948, allotting the sum of P873,557.70 for the operation and maintenance of irrigation systems, including the purchase of necessary supplies, materials, and equipment. The money will be taken from the collections from irrigation fees (P12 a hectare) estimated at P948,000 for the same fiscal year. Sept. 22-United States Ambassador Emmet O'Neal presents his credentials to President Roxas, and in a prepared address states in part: "Close and cordial as the relations are between our two countries, and unthinkable as is any weakening of those bonds, I am acutely conscious of the duty and of the opportunity that are mine to foster and strengthen them." President Roxas states, in part. "The bonds that bind them [the United States and the Philippines] were forged through half a century of mutual confidence and common efforts toward common goals, and have now been rendered indestructible by agreements looking to the insurance of our mutual security. Filipinos and Americans have the same ideals and the same purposes in relation to the peace, the liberty, and the happiness of all the peoples of the world. You will find us always ready to cooperate in all the efforts of your Government toward this end." Sept. 23-According to a Malacafian press release, the Board on Textbooks will consider textbooks needed for secondary courses in Philippine history and government, applied economics, business English, business mathematics, and "business psychology", bookkeeping and accounting, typewriting, and spelling. Books and manuscripts on Philippine history and government should reach the Board not later than July 31, 1948; on the other subjects not later than January 31, 1948. If adopted, the adoption would be for a period of 6 years. Sept. 25-Secretary Ozaeta, in answer to an inquiry from the Secretary of the Interior, states that he is of the opinion that the restrictions covering the alienationl of lands acquired as homesteads, do not apply to the alienation of lands acquired under the free-patent provisions of the Public Land Act which may be alienated after 5 years. Sept. 26-The Cabinet is reported to have approved two special budgets, one of the Bureau of Lands for a cadastral survey, and the other of the Bureau of Public Works for the reconstruction and construction of rivercontrol and drainage projects, one of the major projects to be undertaken being an irrigation system in Pangasinan. The Cabinet also approves turning over the Santa Ana area, near the Davao wharf, to the Bureau of Lands for subdivision and sale to "squatters" there. San Ramon Penal Colony, Zamboanga, will be transferred to the Department of Public Instruction for conversion into a model coconut farm. The Secretary of Agriculture and Natural Resources is authorized to open show-rooms in the different Philippine consulates in the United States and Hawaii for the display of Philippine products. The Cabinet furthermore approved the names submitted for the second group of Filipino business men to go to Japar,-B. S. Coloma of the Veterans Trading Corp.; L. Araneta, importer-exporter; M. T. Sales, of the Binondo Trading Co.; T. C. Martin, of A. E. Martin & Co.; M. Abad, of Philippine Traders, Inc.; and F. Genato, of Genato Commercial Corp. Sept. 27-The Philippine-Spanish Treaty of Friendship is signed at Malacafian. Sept. 29-The Cabinet is reported to have approved the release of P 1,700,000, following the release of P3,400,000 a few weeks ago, or a total of P5,100,000, for 3, 226

500 new classes in the public schools, which, added to 8,300 opened last year, will bring the total to 11,800, raising the enrolment from 1,800,000 to 3,500,000. Oct. 2-A special P478,000 budget of the Bureau of Animal Husbandry for the purchase and production of breeding animals, is reported to have been approved. Oct. 2-Malacafian releases Proclamation No. 43, dated September 29, making public the declaration on the part of the Republic of the Philippines acceding to the Convention for Promoting Safety of Life at Sea, signed in London on May 31, 1929. Oct. 4-A Malacafian press release reports on a lengthy Cabinet meeting held last night during which the govvernment reorganization plans were, approved in final form. Two executive orders will put them into effect, but Secretaries Ozaeta and Nepomuceno have been assigned to go over the orders before the President signs them, effective October 4. The plans will effect savings of P6,009,994. 2,956 positions were abolished (1,078 of them unfilled), but 1,519 new positions were created. The whole number of positions was reduced from 28,127 to 27,049. Oct. 5-Malacafian issues a press release stating that Quezon City authorities has given notice to real-estate operators that they may not sell any lots until their subdivisions have been inspected and approved by the City Engineer as it is desired to coordinate all such areas with existing and proposed roads. Oct. 7-President Roxas receives a delegation of over 300 tenants of the Tuason Estate in Santa Mesa, Manila, who are being evicted; he instructs Mayor V. Fugoso and F. Aguilar, head of the Rural Progress Administration, to study ways and means of helping the tenants, but warns that the price of P7 a square meter, set by the Philippine Realtors, is considered low enough compared with the prevailing prices of land. Commissioner Pedrosa, Chairman of the Reparations Advisory Committee, announces that the Philippines has been allotted 3,270 units of machine-tools and secondary metal-working equipment, these constituting about 1.5% of this category of reparation materials to be received from Japan. The Philippines will also receive its initial 5% share of the advance transfer of sulphuricacid, thermal-electric, and nitrogen-fixation plants. Oct. 8-President Roxas sends a telegram to the Provincial Treasurer, Misamis Oriental, warning him that complaints have been received that deputy assessors are threatening tax-payers to increase their property taxassessments if they do not vote for the Liberal Party, and that he and all other officials guilty of this illegal practice will be prosecuted and severely punished if this is not stopped. The President orders the expropriation of the estates of the haciendas Nagtahan, Santa Mesa, and Galas, for subdivision to tenants by the Rural Progress Administration, the Rehabilitation Finance Corporation to advance the funds required. The assessed valuation of the Hacienda Nagtahan is P600,000. More than 250,000 people will be affected. The Cabinet approves the proposal of Commissioner Pedrosa that the Chinese dealers who chiefly are buying the American-made surplus Army cigars, being sold by the Foreign Liquidation Commission, be given permits to export them to eliminate the competition with locallymade cigars. According to a Malacafian press-release, reports indicate that the recent typhoon did considerable damage to the rice-crop in the Cagayan Valley and that landslides put the Baguio electric-light and telephone systems out of commission. Relief agencies have been ordered to render all possible assistance. Secretary Nicanor Roxas, acting (Continued on page 247) Money and Banking By C. R. LEABER Manager, National City Bank of New York, Manila E have been witnessing a somewhat unusual foreignexchange market recently, with the supply of dollars exceeding the demand. This Condition reverses, at least temporarily, what has persistently been the postwar tendency as a result of the large unfavorable balance of international trade for the Philippines. Since the latter part of September, there have been heavy exports of copra at advancing prices, and early this month (October) the Philippine Government sold rice abroad from its reserve stocks. These were the dominant factors contributing to the abundance of foreign exchange and, on the other hand, creating a demand by banks for local funds. An immediate result was a compensating fall in banks' quotation for buying dollar exchange. Bank resources have shown a substantial expansion during the past weeks, according to reports from the Bureau of Banking. From a total of P799,770,000 for the week ending September 20, the total resources of 13 Manila banks increased to P819,311,000 for the week ending October 4. A significant feature of the returns since August is an almost consistent rise in savings-deposits, week by week. Total debits to individual accounts reflected a brisk trade-turnover, and total loans, discounts, and advances of P334,700,000 reported by banks as outstandings on October 4, is a record high for the year. Monetary circulation is being maintained at a more or less steady level. The Bureau of the Treasury reports the volume of money in circulation at P725,239,000 as of September 30. Predictions are that the velocity and volume of cash in circulation may show gains next year as the international balance-of-payments becomes more favorable to the Philippines. Another factor which is expected to influence the amount of available cash here next year, will be expenditures by the United States Government, which is estimated will be in sufficient amount to off-set any adverse balance of trade. A statement from the Acting Chairman of the Rehabilitation Finance Corporation to the effect that a total of P66,965,000 has been authorized as loans by this government-financing agency during its first nine months of operation, shows how far the Government has gone in assisting rehabilitation. The R.F.C. started with a capital of P50,000,000, which will be augmented from the proceeds of sales of surplus property, and from funds raised by selling bonds. Real-estate loans represented the largest item in R.F.C. disbursements, accounting for almost 50%o of the total loans granted. Loans for the reconstruction of industrial plants were the second largest item, or about 30% of the total. Stock Market September 16 to October 15, 1947 By A. C. HALL A. C. Hall P Company N this column last month the writer expressed the opinion that the market is in the second stage of a primary uptrend, and that, in due course, prices could be expected to penetrate the previous high point of February 20, 1947. On the latter date our average registered 43.66. Market action since then has served to strengthen this view, as prices have been in an almost uninterrupted advance during the past month. The market has displayed 227

MANILA STOCK EXCHANGE LISTED MINING SHARES September 16 to October 15, 1947 HI H Acoje Mining Co.... P..325 Antamok Goldfields...025 Atok Gold Mining Co. 1.20 Baguio Gold Mining C o................ Batong Buhay Gold M ines.............006' Big Wedge Mining Co................ 1.20 Coco Grove, Inc.......03 Consolidated Mines, Inc................0141 IXL Mining Co........07 Lepanto Consolidated.52 Masbate Consolidated.05 Mindanao Mother Lode..............99 Paracale Gumaus Cons.............. 095 San Mauricio Mng. Co.................215 Surigao Consolidated..395 Low P.255.02 1.08.05 4.006 1.04.028 5.013 A c CLOSE P.315.02 1.18 CHANGE up.095 off.005 up.08 TOTAL SALES 838,000 48,000 151,400 Unlisted commercial shares were again inactive. A lot of 100 shares Philippine American Drug (Botica Boie) changed hands at P140. Manila Jockey Club were traded at P2.90. There was an increase in activity in Jai Alai, and 2,300 shares changed hands at P14.50 and P14.25, off 75 centavos over the month..05 - 20,000.006 off.0006 950,000 1.20.03 up.08 up.004 up.0015...~l An 73,900 140,000 16,310,000,7( nnn Credit By DUNCAN BURN Association of Credit Men, Inc. (P.I.).0145 n7 considerable vigor at ti 40.97 our average was v of the year's high. As measured by ou ing the period have ran to a high of 40.97, clo, The sharpness of t weakened the technical correction is about due Turning to individi of base-metal producers Acoje and Lepanto have ] increased activity, whi] pushed ahead. In the registered the largest p( Mother Lode at 95 wa up its fifth consecutive Wedge were relatively r In the unlisted r About 11,000 shares Ba and P4.50, closing at the were done at 3 centav at 6 centavos. United and East Mindanao w In over the counte advanced from P4.40 to I Antipolo Mining was st 10 centavos to 25 centa ing hands. In the commercial stocks, the most notewe of trading in San Migue following completion of new stock with the Se sion. Opening sales wer stock basis-13-1/8 new from the last recorded day the stock advance( offerings have caused ai closed at P73 on a total Elsewhere in this Small lots of Bank of ti Filipinas at P21.50 and were about 30,000 shar P1.10 to P1.14; and srr and P1.50; and Marsma and Common at 40 cer Sugar shares were advanced to P126 on sa trade in this section was J., V.,I up.uVJ IY,,JJ.375.49 up.115 1,113,500 S is natural and to be expected with the increased ex-.04.05 up.007 445,000 tension of credit, both in regard to larger numbers of accounts and higher limits of accommodation, the fre-.80.95 up.15 543,750 quency of difficulties and complaints increases. Credit.08.095 up.015 39,000 is more widely used now than at any time since liberation. Credit-extension continues to increase, and certain lines.195.20 off.02 75,500 of business which have thus far been able to remain on.26.38 up.12 791,250 virtually a cash-basis are preparing against the time when it appears that the necessity of credit extension will be mes, and at Monday's closing of inevitable. vithin reasonable striking distance * * ithin reNumerous inquiries through qualified credit executives, representing various leading business houses in Mar average, price fluctuations dur- nila, bring forth certain pertinent opinions and comments. iged from 33.68 opening and low, In general, a slowness in collections and a difficulty in sing at 40.50. certain collections have been increasingly evident in recent the recent advance has probably weeks. Some concerns felt the tightening begin some three position temporarily, and some months back, but prominent indications of tightening e. for most business houses began about the opening of Seplal issues, the demand for shares tember. Most credit executives, however, are not seriously has been the oustanding feature. concerned over the increasing slowness of payments of registered large advances on greatly certain items and accounts. The causes underlying the le Consolidated Mines has also increased slowness naturally vary. General opinion lays gold mining group, Surigao has stress on several primary causes. It is virtually imposercentage advance, but Mindanao sible, without detailed study and survey, to positively s up 15 points and thus marked evaluate the importance of these causes with respect to month of advance. Atok and Big each other or with respect to the general picture of credit. neglected. Admittedly the following feelings and opinions each carry weight. Some credit executives attribute slowness in col-.ining group, activity increased. lections to the fact that many purchasers have invested latoc changed hands between 1 4.latoc changed hands between P4 heavily in machinery, equipment, and other items, often latter figure. Small lots of Suyoc at large expense, and that revenues resulting from operaros, while Itogon was unchanged tions have not yet become normal. The initial expenses Paracale declined to 9 centavos of installation and reconditioning and other preparations,as unchanged. have been heavy and restricted to a relatively short period, r dealings, Benguet Consolidated and have thus to an extent depleted assets which cannot P4.67 on a volume of 25,000 shares. be so quickly recovered through operation of the equiptrong and active, advancing from ment and assets procured. In certain service- and utilityLvos, with 1,250,000 shares chang- lines, this explanation applies and, coupled with it, is the inclination and tendency to decrease service-charges, and industrial section of.listed which makes for a smaller margins. Similarly, to an extent orthy feature was the resumption the tendency in some lines to decrease sales-prices, has 1 Brewery stock on September 23, restricted the profit-margins. These explanations are lothe period of registration of the gical and to be expected under conditions now existing. -curities and Exchange Commise at P75 (equivalent to P984 old for 1 old-and up P257 per share sale of P727), and the following d to P80. Since then increased n easier tendency, and the stock I activity of about 5,000 shares. section, trading has been slow. ie Philippine Islands at P72, and P22 were reported. Also reported res Philippine Racing Club from iall trades in Pambusco at P1.52 n Preferred at 50 and 48 centavos ntavos. dull except for Victorias which les of 360 shares. The only other i 29 shares Bais at P600. An explanation of a purely local and temporary nature is offered by many who claim that the political campaigns now under way serve as a definite drain on available cash. Cash which might go toward payment of recognized accounts, is diverted into political funds. Contributions for political purposes, are in many instances substantial, and some business people often consider such contributions as necessary and important and to take precedence over contracted obligations in trade. Following the election on November 11, it is anticipated that an adjustment will begin which will offset this temporary condition. Another explanation of present tightness of collections, is the general tendency of many retail establishments to prepare for as large a Christmas and holiday stock as possible. Retail-trades people make a practice of building up credit-limits with a view to having as wide and large 228

an inventory for the anticipated brisk holiday-shopping as possible. Therefore, to a large extent cash is saved with the view to its being used where most necessary to allow for the largest selection of stocks. Such retail merchants are inclined to make use of their standings and connections in building up their stocks. It is anticipated that as has been generally true in the past, payments will be fairly prompt immediately following the holiday stock clearances. Several informed men in the credit field locally are of the opinion that beginning immediately after the Christmas Season, payments will begin to be more prompt; most of them express no considerable concern over the present slowness, though in several instances this has resulted in substantial credit-accounts remaining outstanding. Some firms indicate an unusually large proportion of accounts running 30 to 60 days beyond the terms agreed upon. Insurance By ARTHUR H. HENDERSON President, American International Underwriters for the Philippines, Inc. A N invitation was extended to Mr. Cipriano Cruz, Chief of the Manila Fire Department, to meet with the senior fire insurance executives of the Philippines recently. The purpose of the meeting was primarily to bring about greater coordination and cooperation between members of the Manila Fire Insurance Association and the Fire Department of Manila with the idea of attacking the most critical problems facing the fire insurance underwriters and the Fire Department. The insurance executives were told that the Fire Department was doing its best to improve operations in spite of the limited facilities available to it, and the Chief outlined his recommendations for improvement in fire protection. The principal points enumerated by Chief Cruz were the inadequacy of the present arson laws, the lack of adequate equipment for the efficient operation of the Manila Fire Department as well as fire departments in the various municipalities in the Philippines, the inadequacy of funds for the proper maintenance of the department and the pay of personnel, and the necessity for a more stringent enforcement of the Building Code. The Chief recommended that a joint committee of representatives of the Fire Department and of fire insurance underwriters be appointed to study the situation in its entirety and to see what could be done to solve the problems facing both the Fire Department and the fire insurance underwriters. As a result of the conference, steps are respectively being taken to appoint committees for a joint study of the problems enumerated by the Chief and the problems of the fire insurance companies as they affect each other. FIRE losses in the Manila area for the month of September, 1947, are the lowest reported for this year. It is believed that the stringent attitude of fire insurance underwriters has had a material effect in reducing fire losses. FIRE LOSSES IN THE MANILA AREA JANUARY TO SEPTEMBER, 1947 -.._ = =. =- = _........_.= Number of fires Losses I Within Outside 1947 city city Buildings [ Contents Total limits limits January.. 60 6 P 42,700 P 48,878 P 91,578 February. 71 3 114,615 1,171,433 1,286,048 March... 88 11 280,874 1,918,200 2,199,074 April...... May....... June....... July...... August.. September 73 4 497,443 45 4 173,402 63 4 67,302 33 2 129,503 54 1 108,362 38 2 42,574 1,228,304 588,660 579,974 192,160 316.141 95,741 1,725,747 762,062 647,276 321,663 424,503 138,315 525 37 P1,456,775.00 P6,139,491.00 P7,596,266.00 Electric Power Production (Manila Electric Company System) By J. F COTTON Treasurer, Manila Electric Company 1941 Average-15,316,000 KWH January....................... February...................... March...................... April........................ M ay..................... June.......................... July......................... August....................... September.................... O ctober...................... 1947 17,543,000 17,503,000 20,140,000 19,601,000 19,241,000 17,898,000 22,593,000 23,358,000 33,122,000 * 24,700,000 ** 1946 9,286,000 8,778,000 10,122,000 9,849,000 11,132,000 11,432,000 12,333,000 14,411,000 15,018,000 16,787,000 K I L 0 w A T T H N ovem ber.................................... 15,767,000 0 December............................... 17,984 000 U * Revised............................................... R ** Partially estim ated..................................... S 7 In October electric production increased sharply to a new record output. There was an increase of 1,578,000 KWH or 6.80% over September. Compared with October, 1946, the increase was 7,913,000 KWH, or 47.1%. Power output is now running over 60% higher than in 1941. Two important additions to power-capacity were added in October. A third unit at the Caliraya Hydro Station was placed in service on October 2, increasing Caliraya's capacity from 20,000 KW to 29,325 KW. On October 15, a second unit at Blaisdell Steam Station started operating, increasing the capacity of the steam plant from 4000 KW to 16,500 KW. A comparison of available plant-capacity with 1941 follows: October 1947 Manila Electric Co. Steam Plants. 46,500 KW Manila Electric Co. Hydro Plant... 7,000 " National Power Corp.-Hydro Plant 29,325 " Total.................... 82,825 KW Maximum Load.................. 61,000 KW Reserve Capacity................. 21,825 KW December 1941 29,500 KW 16,500" none 46,000 KW 42,000 KW 4,000 KW Plant-capacity is sufficient for present requirements, but repeated delays in shipment of transformers and other vital equipment still do not permit complete restoration of adequate service to all areas. Real Estate By C. M. HOSKINS C. M. Hoskins & Co., Inc., Realtors IN October the President of the Philippines announced that he proposed to have the Government acquire larg' tracts of land in Manila for resale to present occupants, and to recommend to the Philippine Congress the creation of a Commission to fix subdivision prices. Construction of residential rental properties has slowed up materially, and new subdivision developments are in a state of suspended animation. Commercial properties are still in excellent demand. Individual transactions have remained fairly active. Preliminary figures show sales of P4,000,000 for October, 229

1947, against P5,500,000 for COMPARATIVE October, 1946, and against a Prepared nine-months average for 1947 Note: A large percentage of P6,000,000. This month Japanese Occupat was exceptional in that only three transactions were re- January.............. corded of P200,000 or more. February............. The average was P12,600 per March............... transaction. April............. May................. Many sales of land for June................ new construction have been July....... blocked by the growing gustber........... squatter problem. With po- October............. pulation since liberation November............ December.......... nearly three times pre-war, TOTAL............ tens of thousands of families have moved on to unguarded private property and built shacks and even strong material houses. Ejectment proceedings have proved slow and ineffective, months elapsing before owners can recover their land from trespassers. Construction By H. H. KEYS Architect T HE increasing difficulty in obtaining building materials from the United States is already serious'y hampering construction. Some structural-steel is in the Philippines, some is. enroute to the Philippines. With the scarcity of steel and the added restrictions in America, it is difficult for structural steel contractors to quote prices and delivery dates with any feeling of security. Reinforcing-steel, also now under export license, is becoming more difficult to obtain. Architects are frequently faced with requests from contractors to change specified sizes to a size that may be obtainable. This request is not an attempt at evasion on the part of the contractor. Reirnforcing steel is so scarce that one has to build with what the mnarket can furnish. The building public had shown a commendable desire to use structural steel, but its desire to use steel is almost impossible to carry out without a probable delay of eight or ten months. The scarcity of reinforcing-steel will undoubtedly make the construction of reinforced concrete buildings increasingly difficult, and this shortage causes people to lock for substitutes. There will undoubtedly be more wood-frame buildings ccn;tructed, even though the owners would prefer buildings of more fire-resisting materials. Many buildings are being erected of hollow cemrent blocks for walls. These are pro luced by several different firms. For the most part, they are quite good provided they are used within limitation. Corrugated asbestos sheets are being used to offset the scarcity of galvanized-iron. While its general use here is fairly recent, its use in the United States goes back many years and has been found successful. Delivery of steel-windows is improving. Their use in any building is desirable. Plumbing fixtures are still slow of delivery. Door-locks are hard to obtain. Butts (hinges) seem more readily obtainable. Galvanized-iron sheets are under license from the United Stat2e and under government control here. Lumber presents quite a problem. One might say that it was a tree yesterday and a building tomorrow. The, STATEMENT OF REAL ESTATE SALES IN M1ANTLA by the Bureau of the Census and Statistics * of 1945 sales and a diminishing percentage of 1946 sales, represent ion transactions not rdcorded until after liberation. 1940 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 7,974,844 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,235 (?) P10,647,285 1945 P 7,943,605 1,337,830 (?) 213,262 962,008 1,212,780 1,123,565 699,740 1,870,670 2,096,893 2,555,472 2,874,408 P22,890133 1946 P 4,385,011 2,267,151 2,622,190 1,916,293 3,684,937 3,637,956 4,974,862 4,438,510 4,698,896 5,545,800 3,340,382 4,025,926 P45,537,914 1947 P 6,030,012 7,217,317 7,166,866 8,611,076 4,618,181 3,988,560 4,097.183 5,!27,572 7 43i,213 P54 793 89) lumber dealers are not to blame for this. For five years there was almost no logging. The present-day demand is great. They have no time to season the lumber properly. It is very advisable to use kiln-dried lumber for all parts except the framing. Kiln-dried stock-size doors and windows are now being produced in the Philippines. Their use should be encouraged. There seems to be quite a bit of work contemplated by American firms. Much of this should get under way shortly after the first of the year. A new building ordinance will be presented for passage in the near future. This ordinanc~ has to do with zoning and imposes some very stringent regulations as to the type of buildings that may be erected in various localities. The City has been divided into districts. Percentage of ground to be occupied, minimum yard-sizes, types of residence, business and industrial buildings are zoned. Property owners and people who contemplate leasing property for various uses should examine this proposed ordinance very carefully. They may find that businesses, apartments etc., heretofore permitted in certain areas will be banned. Totals of building permits for September were not available at this writir:g. Port of Manila By H. W. TITUS Luzon Stevedoring Company, Inc. ONE of the greatest problems confronting persons concerned with the Port of Manila, and it is hard to find anyone,-from the steamship operator and importer to Juan de la Cruz who buys a can of milk, who is not int-re.ted in Manila Harbor affairs, is that of the type of packing employed by shippers for cargo coming by ocean freight into the port. Some 75% of all general cargo coming into this port is packed in fibre cartons, secondhand cases, plywood cases, crates, and other inadequate material. A review of goods discharged in Bad Order from ships in the port over a period of time shows in general the following types of packing materials employed which are wholly unsuited to the contents packed in them: I. Fibre Cartons: a. Canned goods (food products) h. Paints and lubricants c. Glassware d. Electrical supplies e. Drugs and chemicals f. Office supplies and stationerits g. Cigarettes h. Textiles i. Clothing j. Printed Matter 2. Second-hand Cases: 3. Plywood Cases: 2.)

4. Fibreboard Cases: a. Textiles b. Rayon and cotton remnants c. Clothing d. Hardware e. Medical instruments 5. Cotton Bags: a. Flour b. Sugar c. Salt 6. Jute Bags: a. Rice b. Sugar c. Bean 7. Cra tes: a. Plumbing supplies b. Hospital supplies c. Household appliances 8. Paper Bags: a. Cement b. Powder, paint, and talc 9. Wooden Barrels: a. Hardware 10. Fibreboard Drums: a. Powder, paint, and talc 11. Bales: a. Textiles b. Printed matter c. Clothing The objection to the use of fibre cartons is that the weight of contents alone will tend to break them open; also, that when they are used for glassware or bottles, they cannot wi th sta n d the normal shocks of handling or pressure of stowage in the ship's hold. The chief fault of this type of packing, however, is that any moisture, whether by normal sweating while stowed in the ship or otherwise, causes the carton to disintegrate. A case in point is that of bottled vinegar, syrup, or catsup packed in fibre cartons. As soon as one bottle breaks due to normal handling or pressure of cargo above it, the liquid released at once causes the carton to disintegrate, ruining not only the contents of one carton but all those adjacent to it. One important factor contributing to loss through improper packing, is that marks are frequently obliterated as packages are damaged and it becomes impossible to make delivery to consignees. This adds to the congestion of undelivered cargo in the terminal warehouses at the piers, and consequently to the difficulty of making proper delivery of "live" cargo. It goes without saying that improper packing gives furither opportunities for, and in fact encourages, pilferage. All of the foregoing adds up to the fact that inadequate packing, which results in conditions shown in the accom panying photograph, may be cheaper initially from the point of view of the shipper but actually causes enormous losses which must ultimately be borne by the consumer of imported goods. The remedy for this tremendous loss of commodities sorely needed by all here, can only lie in joint action by insurance authorities who can adjust insurance conditions to meet this problem, shipping companies which can and should demand adequate packing for their own protection and adjust freight rates accordingly, and importers who should insist that persons shipping to them do so in containers suited to the cargo. Any additional costs arising from a better grade of packing thus obtained, would be more than offset by lowering the amount of loss now sustained by all concerned. Ocean Shipping BY F. M. GISPERT Secretary, Associated Steamship Lines E XPORTS for the month of September showed very little change from those of preceding months: 114,227 tons for September, as against 146,951 for August. The expected increase in shipments of logs and lumber did not materialize last month, and judging from reports, no large movement can be expected until all export restrictions are moved. Shipments of desiccated coconut have steadily increased during the year from 386 measurement tons during September, 1946, to 7,130 measurement tons for September of this year. A comparison of this year's September export figures with last year's, follows: Cigars.......................... Desiccated coconut.............. Coconut oil...................... Copra........................... Copra cake..................... Hemp (bales)................... Logs and lumber (bft.)........... Ores............................. Rope............................ Tobacco......................... Sugar............................ September 1946 177 tons 386 75,121 920 44,598 bales 8,000 tons 389 358 September 1947 161 tons 7,130 1,249 " 86,763 2,814 " 60,678 bales 765,788 bft. 20,338 tons 508 " 175 Inter-Island Shipping By D. M. CAMERON Everett Steamship Corporation S OME concern has been expressed in trading circles in Manila over an. article that appeared recently in the local press to the effect that inter-island operators had requested an increase of 150% in inter-island freight and passenger rates. The article was incorrect in its implication that such an increase was desired or intended to be aiJrl to present rates. The facts are that the Philippine Ship Owners Association, of which about all owners of inter-island vessels operating from Manila are members, requested in July, 1946, an increase of 150% over pre-war basic rates. In December, 1941 basic rates were subject to increases of 10% and then 15%, and after liberation an increase of 35% went into effect. This percentage was the same as that applied to ocean freights at the same time. When the extremely high operating costs prevailing at that time are considered, it can easily be recognized that the operations by the U. S. Maritime Commission which covered the period from liberation to August, 1947, were carried on at an appreciable loss to the American Government. Close-up view of glassware packed in cartons. Taken in Bad Order Corral, Pier 13, May 20, 1947. 231

These costs have receded only in as very minor degree and only in a few categories, while freight to mnage and number of passengers have dropped off sharply. With the high pay demanded by stevedores and crews and the steadily increasing costs of fuel, the pre-war operators who chartered Maritime Commission vessels, all of which are toolarge and generally unsuited to the trade, will be forced to relinquish their charters at the end of the initial 6-month period unless rates, at least in certain categories and between certain ports, are raised. The withdrawal of all such vessels would leave the entire interisland trade to be covered by small F. S.-type vessels, which would, to say the least, put shippers and producers in a very precarious position. Once lost to this area, the Maritime Commission vessels will without a doubt be unobtainable again, and it is generally felt that a number of F. S. vessels presently operated will, within a year or so, be worn out to the extent of being uneconomical except for the very shortest runs. The building of proper vessels which, at present costs, few will undertake, would take years, and consequently inter-island trade could easily break down. The regular operators, some of which operate a few F.S. vessels, have re-established regular, scheduled runs which in the main are adhered to, and it is only with regular schedules that traders can handle their business in a lucrative way. A request for reduction in Charter Hire is being considered but even this saving will not make the difference between red and black figures, and only increased freights and/or rates are the solution. Air Transportation By V. A. BRUSSOLO Vice-President, Philippine Air Lines DURING the months of September and October there were a number of significant aviation developments which airlines in the Philippines cannot afford to ignore, for they will directly or indirectly affect present and future operations of air companies. For a good over-all picture, they are herewith presented in chronological order: 1. On September 10, Undersecretary of Foreign Affairs Bernabe Africa enunciated the policy of the Philippine Government with respect to the landing of foreign aircraft in the Philippines. He declared that the "Philippines will follow the policy of air neutrality, granting equal rights to aircraft of all nations to land on Philippine airfields". 2. On September 25, the Secretary of National Defense-under whom the former Bureau of Aeronautics was operating-issued rules and regulations governing the use of domestic government airfields and navigation facilities and imposing fees for their use. Landing fees imposed are based on the types of airports and on the gross weight of aircraft. Business conducted within government airports are also taxed 5% of their gross income. The new regulations further prescribe measures and precautions aimed at promoting safety. 3. Civil Aeronautics Administrator Jesus A. Villamor declared on October 9 that five cities are presently competing with the Philippines in the establishment of the aviation-hub of the Orient, namely, Singapore, Shanghai, Hongkong, Bangkok, and Tokyo. He also indicated that he proposed to build at Nichols Field a metropolitan center inside the international airport compound. 4. On October 13, four American congressmen visited Manila on a fact-finding tour to study civilian aviation. The four congressmen are Leonard W. Hall (New York), chairman; Hugh D. Scott (Pennsylvania), and James I. Dolliver (Iowa), all Republicans, and Richard F. Harless (Arizona), Democrat. They declared having found the Philippines' aeronautical facilities "below modern standards" and in great need of improverrent. Taking up the defense of the aviation situation in the Philippines, Mr. Daniel Me. Gomez, secretary of Philippine Air Lines, pointed out that' the equipment and operations of local airlines could well compare with those of the United States and other modern countries. This brought about a modification of their previous statement from Representatives Scott and Hall, who explained that they had referred specifically to "Philippine airfields and those of other Far Eastern countries which have no facilities for approach, especially in bad weather." "With such problems," they added, "American aid through the CAA can be of great help." In closing, they declared that "there is no doubt the Philippines will play an important role in the development of air commerce... Without the Philippines there can hardly be any air-trade in the Far East, considering the Islands' strategic location." 5. On October 16, in his conference with the American congressmen, President Roxas urged that the United States Government consider the feasibility of assisting the Philippine Government financially in the maintenance of airfields in Laoag, Puerto Princesa, and Guiuan, including aviation installations thereon. 6. Following this up, President Roxas on October 20, sought a $5,000,000 annual grant from the United States to maintain these three strategic bases, declaring that they form "a triangular defense of the Philippines, with Clark Field, American Army base, in the center". 7. Toward the end of October, President Roxas announced that plans are under way to establish the largest and most modern airport in the Far East at Nichols Field. Col nel Villamor was appointed Administrator for the International Airport, and work on the project has begun with the Beyster Commission drawing up the plans. The foregoing events very clearly indicate that the Philippine Government has undertaken an all-out effort to place the Philippines on a par with other nations of the modern world in what concerns air travel. A forecast of the future of the aviation industry can be found in the fact that, according to Mr. B. J. Talbot of that Company, Northwest Airlines did the biggest bus'ness in its 21-year history in August of this year, with profit reaching a new monthly high. In August, Northwest had a net profit of $566,000 from its business with the Orient alone, thus exceeding expectations at this stage of development of the airline business in the Far East. Pan American World Airways ON November 22, 1935, a crowd of 125,000 spectators gathered on the shores of San Francisco Bay to witness the take-off of the Pan American World Airways famed flying-boat, China Clipper, on the first transPacific commercial flight in history. Commanded by the late Captain Edwin C. Musick, the China Clipper soared over the Golden Gate and after 59 hours, 48 minutes flying-time landed on the waters of Manila Bay, establishing the first air-link between the Philippines and the United States. The arrival of the China Clipper was an epochal event for the people of the Philippines. Until then, the only link with the Western world had been time-consuming surface travel. Via ship, it had taken passengers, mail, and express weeks to reach the United States. The coming of the flying Clippers slashed that travel time to a matter of days! For six years, Pan American continued to serve the Philippines. Then the Japanese struck. It was to be four years before the people of the Philippines again saw the familiar insignia of the Clippers. During the war interval, John Oppenheimer, PAA's District Traffic Manager at Manila, and 33 other employees of the airline were interned at the Santo Tomas and Los Bafios prison-camps. Today, two years after the Japanese surrender, the flying Clippers are playing a vital role in making Manila one of the great aerial crossroads of the world. 232

Since resumption of Clipper service to the Philippines in September, 1946, Pan American's Pacific-Alaska Division has embarked on an extensive program of increasing flight frequencies, slashing travel-time and improving travel-comfort. Today, the Clippers link Manila not only with the Pacific Coast of the United States, but with all the major cities of the Orient and with India, the Middle East, and England. Manila is on the direct route of Pan American's round-the-world service, the first one-carrier global schedule in the history of aviation. Clippers operating to Manila via San Francisco and Los Angeles, Honolulu, Wake, and Guam, continue to Bangkok and Calcutta, making connections there with Atlantic Clippers of Pan American for Karachi, Damascus, Istanbul, London, and New York. Another Clipper-service links Manila directly with Hongkong in China. And at Hongkong, Manila passengers also make regular connections with Clippers stopping at Tokyo, Shanghai, Hongkong, Bangkok, and Calcutta on Pan American's second round-the-world route. All this stimulates trade and travel and a free exchange of ideas with the people of virtually every part of the world. Before the war, Pan American's trans-Pacific routes were flown by flying-boats. Today, these reliable but relatively slow aircraft have been replaced by fast, fourengine landplane Clippers of the Douglas DC-4 type. And travel-time across the Pacific has been cut to a matter of hours. Instead of making overnight stops at islandstations en route, the Clippers now operate on "cannonball" schedules, landing at the islands for only one hour, long enough to change crews and refuel. Making this possible, is installation on the Pacific Clippers of the remarkable new sleeperette chair-lounges. No longer do air-travelers have to sit up during the 8,000-mile flight. The reclining-chairs and adjustable leg-rests of the sleeperette combine into full-length lounges. Passengers are able to stretch out during both dayand night-travel. And at night, curtains around each seat provide compartment privacy and assure a restful night of sleep. It is not only in the fields of speed and passengercomfort that Pan American has brought nev standards of service to the Philippines. Recognizing the increasing need for swift and frequent air-express, the airline has introduced the Pacific Trader, a new all-cargo Clipper, which operates between Manila and San Francisco and return on weekly schedules. Graphically illustrating the advances made since postwar resumption of service to Manila, are statistics on passengers and express. Between September, 1946, and August, 1947, for example, the Clippers carried 4,340 passengers to and from Manila, as compared with 1,031 passengers flown by the Clippers during 1941. Equally impressive are figures on air-cargo. From September, 1946, to August, 1947, the Clippers carried a grand total of 242,974 pounds of air-express, including 15,246 pounds already transported by the Pacific Trader all-cargo service. This is contrasted to the total of only 38,384 pounds carried in the year before Pearl Harbor. Indicative of Pan American's long-range policy of bringing the swiftest and most comfortable means of transportation within the price-range of the average traveler, are the reductions made in passenger fares and express rates. As an example, it cost $950 to travel by Clipper from Manila to San Francisco in 1938. Today the fare has been reduced to $726. Strategically located on the all-weather Central Pacific air-route, the Republic of the Philippines can look to Pall American World Airways for even greater service as it continues its march toward All-Asia leadership. Land Transportation (Bus Lines) By L. G. JAMES Vice-President and Manager, A. L. Ammen Transportation Co., Inc. OF interest to the land transportation business in general, is a recent development which may affect the future pattern of bus operations throughout the Philippines. This is a decision of the Public Service Commission establishing a uniform rate of 1-1/2 centavos per passenger per kilometer, to apply essentially to operators of passenger buses in Central and South-Central Luzon. Heretofore, the rate of 2 centavos per kilometer had been authorized for the various operators concerned. The Laguna Tayabas Bus Company and the Batangas Transportation Company filed a petition before the Public Service Commission for authority to reduce their existing rate of 2 centavos to 1 centavo per kilometer on all direct trips between Manila and all important terminals served by the companies in the provinces of Rizal, Cavite, Laguna, Batangas, and Quezon. This petition was opposed by the Bifiang Transportation Company and the Western Batangas Bus Company on the ground that, under present conditions, it is impossible for an operator to do business at a profit using a basic tariff of 1 centavo per kilometer. The People's Counsel, an investigatory and advisory board recently established for the purpose of representing the public in cases similar to that under consideration, recommended that a basic general rate of 1-1/2 centavos per kilometer be established for all operators concerned, both for local trips and for through direct trips. The decision of the Public Service Commission followed this recommendation. The result has been the establishment of the 1-1/;2 centavo rate by all operators serving the Manila territory and areas adjacent thereto. The standard pre-war passenger rate in general effect throughout the Philippines was 1 centavo per kilometer. Pre-war cost of operation per bus unit (depending upon local factors and type of unit used) averaged from 11 centavos to 14 centavos per kilometer. Present costs of operation (based upon data supplied from the operation reports of fleet operators in various areas) vary from 28 centavos to 37 centavos per kilometer. It is thus evident that operational costs have nearly trebled, whereas the newly established rate applying to the Central and South Central Luzon area, is only 50% greater than the pre-war rate. It is, however, probable that operators in other parts of the Philippines will follow suit in applying for authority to reduce rates. This will give the traveling public the benefit of transportation at a cost which is entirely out of line with general price trends. Mv anagement in general has been confronted with serious labor problems during the post-war period of adjustment, but an entirely new theory in CapitalLabor relationships was the cause of the short-lived strike of the employees of the Pampanga Bus Co., Inc. who walked out en masse on October 20. Recently, the company was reimbursed by the United States Army for the partial value of its equipment and stocks of supplies taken over for military use in 1941, amounting to some P875,000. The employees union thereupon presented a formal demand for 20% of the amount of the payment, which demand, naturally was rejected by the management on the obvious ground that the settlement represented the value of capital assets delivered to the Army and simply constituted reimbursement therefor. After the walkout, 2 3

the dispute was referred to the Court of Industrial Relations which ordered the strikers back to work, the order being complied with on October 22. At the hearing before the Court of Industrial Relations, where the case is now pending decision, the officials of the striking union offered no argument other than that employees have a vested interest in any payment made to a corporation on war claims or war-damage claims. If the Court should decide that this has any merit, the results would affect every employer who anticipates receipt of such payments. Gold By CHAS. A. MITKE Consulting Mining Engineer ORLD gold reserves are reported to be at an all-time high. The total supply is said to be around $37 tillion. Of this, the United States holds between $21 and $22 billion, while the remaining $15 billion is distributed among the other nations. This is a tremendous advance over 1914, when countries outside the United States held something between $3 and $4 billion. In 1925 this had increased to over $5 billion, and at the time the Pacific war broke out, the amount was $10.5 billion. In the interim, gold had been re-evaluated, but even so, the amount of gold in the world had greatly increased. No accurate information is available regarding gold production in Russia, but aggregate annual production in other countries amounts to $700 million. One great trouble still is the uneven distribution. The United States is the greatest creditor country in the world today. The other countries need the goods America produces, but cannot find sufficient dollars with which to pay for them. Suggestions have been made to redistribute American gold-holdings, which suggestions are looked upon with disfavor by the United States Treasury. The International Monetary Fund is endeavoring to divert funds to countries where they can be used most effectively. Switzerland is reported to have made dollar-loans to France and Belgium. Sweden and certain of the Latin-American countries are extending credits to European nations in need. The purpose of the International Monetary Fund, created in 1944, is to regulate international exchange and to supply short-term credit to member countries. Recently, it made dollars available to Great Britain. The Fund's total assets, in gold and currencies, when all subscriptions are in, are reported to be $7,700,000,000. Values of currencies are to be adjusted gradually over a period of time. Whether this will occur in time to meet pending emergencies is not known, but many countries are in great need at the present time. France has been reported to be facing a crisis within the next 30 to 60 days; Great Britain has said it needs help before the end of the year; former Ambassador Bullitt, returning from China, reports that $450,000,000 a year, for three years, will be needed to keep China from falling into the hands of the Soviets. Of this, $130,000,000 would be used to stabilize currencies, and the balance to cover necessary imports of cotton, gasoline, tobacco, wheat, oil, and manufactured articles,-a cheap price, if it works, compared to what we are pouring into Europe. It has been said that "if gold is repriced upward, it will not come in the form of a rise in the price of the metal, because of strong opposition in Washington. Washington, alone, is compelling the world to retain the long obsolete valuation of paper currencies." It is believed far more likely that the change, when made, will be in the form of a revaluation of the paper dollar to fit its buying-power. Very likely, this will come from some country, other than the United States, hardpressed to find an acceptable exchange medium with which to purchase necessary products. "When it comes to a choice between depression or a fair price for gold, even the most doctrinaire theorist must bow to the hard fact that gold will always find its level. There is no substitute for gold, and for 600 years, demand has always exceeded the supply."* There would seem to be a tendency toward exchanging currencies for "hard" money, and, in some instances, hoarding has been noticed. The desire for something tangible, which will not "evaporate" but retain a substantial value in the face of a national crisis, is only natural. In the Philippines, during the occupation, people purchased diamonds, rather than retain the semi-worthless Japanese currency. It has been said that "acceptance" of gold as a token of inherent value is so common a characteristic of all manner of men. that there is scarcely any part of the world in which an individual possessing gold would not be able to exchange it for the goods or services he de ires. This is not theory; it is simply an observation on a human trait which seems to come as near to following a natural law as anything else in social science. Gold is trusted as a basis of exchange and as a measure of the value of currencies, to a degree that is not even approached by any other medium. Confidence in gold far exceeds confidence in governments, and possession of gold is rightly regarded as a better security for wealth than the holding of promissory notes. Gold has the supreme virtue of tangible existence and traditional value which makes it resistant to political manipulations and not exclusively dependent on definitions and agreements apt to become scraps of paper when they run counter to national expediencies. *John E. Kelly, Min;ng World, July, 1947. Lumber By E. C. VON KAUFFMANN President, Philippine Lumber Producers' Association LUMBER producers have submitted a petition to President Roxas urging the lifting of the ban on exports of cut lumber. The present partial permit for logs and flitches is not enough to relieve the producers of their difficulties. They claim that if allowed to export their high-class grades, the local market would not be affected. On the other hand, they would have an inducement to increase their production which would more than offset the amount of lumber exported. They ask for a trial period of six months, after which the President could ban the exports again if there was a shortage in the local market. Local prices being set at a ceiling under Executive Order No. 65, there is no reason to believe that lumber would be sold at higher prices if the Government is as watchful as in the case of other commodities. The lifting of the ban would be very timely at this moment. Copra and Coconut Oil By MANUE-L IGUAL General Manager, El Dorado Trading Company, Inc. AND KENNETH B. DAY President, Philippine Refining Company ON September 15, we reported that the copra market closed with buyers bidding $170 c.i.f. Pacific Coast and with sellers holding out for $175 c.i.f. Immediately thereafter, reports of the corn-crop shortage and the consequent strengthening of tallow, brought the market rapidly up to a point where copra was sold in volume at up to $195 c.i.f. by the 20th of the month. The increase had been too rapid, however, and it began to be felt soon there 234

after that the edge was off the market, grains and lard being unsettled, and the only real strength being reflected in tallow. For that reason, copra eased a bit to $185. But within a few days tallow jumped to 21 and later to 22e for prime quality. The copra market reacted to this by advancing, first to $190, then to $195, and eventually, toward the end of September, several thousand tons were sold to Canada at $205 c.i.f. This caused sellers to increase their ideas immediately thereafter to $210 and over, although only $200 was recorded as sold to Pacific Coast, and this on a very limited scale. However, lard and grains promptly sold off, with the natural result that heavy offerings of copra during the first few days of October at S200 c.i.f. were declined, and the entire market structure looked weaker with the exception of tallow, which still maintained unexpected strength. The general opinion was that American crushers were well covered for October November shipment and in some instances for the remainder of this year, and consequently showed less interest in Philippine offers. This led to a decline in quotat:ons which, however, was not as abrupt as it might have been because Philippine sellers who were not well covered on previous commitments, some of them, at substantially lower prices, took advantage of the halt to cover in, rather than to offer freely. This was good policy particularly because the peak of the copra season appeared to be past. Nevertheless, copra gradually sold off from the high of $205 c.i.f. Pacific and $210 c.i.f. Atlantic, to $182.50 c.i.f. Pacific, and on October 15, the end of the period under review, it was felt that business could not be developed at over $180 c.i.f. Pacific Coast. During this whole period, the European market was extremely quiet. On September 15, business was done at $170 f.o.b. No substantial business was reported thereafter until well into October, when a small lot was traded at $180 or a fraction better. SCAP came into the market on the 10th for 3,000 tons of copra for the American section of Germany, and bought their requirements at $190 f.o.b., which was considered an excellent price on that day. By October 15, European buyers who had been holding back, both in expectation of lower prices and because of lack of dollars, began to register interest, and onthis date 2100 tons were sold to Sweden at $182 f.o.b. When the period closed, however, the market had an easier tendency and the general opinion was that although there was no apparent weakness in the general oil and fats structure, we were likely to see lower prices for a while. Copl a exports for the month of September were reported (subject to revision) as follows: To United States destinations.................... 35,243 L.T. Europe...................................... 43,631 " South America............................... 1,500 India..................................... 6,900 " Total.................................... 87,274 L.T. The coconut-oil market opened on September 15 at 13 -1 2 d with desultory trading. From there on it advanced along with the copra market, but not as spectacularly. Owing to the tank-car shortage reported last month, which now appears to be a difficulty of considerable future duration, Pacific Coast crushers found difficulty moving their oil to the Atlantic Coast. Consequently, spot tanks sold at high premiums, and in fact any promised delivery before the end of the year commanded a far better price than next year's shipments, which were offered at sub stantially lower figures. On this basis, spot oil went as high as 18-1 2 to 190 f.o.b. Coast. October'November 'December shipments sold up to 17-1 20, while January forward could not bring better than 15-1 '2 to 160, and eventually were entirely neglected. As copra prices declined, oil prices followed. Some Philippine crushers took advantage of this situation to sell round lots of October ' November December oil to the Atlantic Coast at competitive prices. Locally, the price of copra, which started at P29 on September 16, rapidly increased to a high point of P38, only to decline gradually at the end of the period to P33. Local oil, which was selling at from P.56 to P.58 per kilo increased to P.75 to P.77 when copra was selling for P200, and thereafter declined to P.72 to P.74 by October 15. Expeller cake for Europe improved considerably during the month, business having been reported on September 16 at $72.50 per long ton f.o.b. as contrasted with bids available on October 15 said to be as high as $78 f.o.b. T ere was a great uncertainty regarding the market at the time the period closed. On the face of it and statistically, there was nothing very weak in the picture. At the'same time, it was felt that prices were fully high, and consumer-resistance plus heavy crops of cottonseed, soyabeans, and peanuts might well take the edge of the market and keep it from advancing further. European buying was manifestly curtailed by lack of dollars, and the big question-mark was when and to what extent the United States will aid Europe by supplying these dollars for the purchase of fats, and also to what extent the United States will draw from its own resources to supply fats to Europe. The United States itself was, however, in another inflationary spiral, which might well translate itself into higher prices for everything, including copra and coconut oil. Under these conditions, it would be a bold man who would unde. take to predict what might happen next, and conservative dealers were not taking a position one way or another, but were following the market and trading only in stocks actually in sight. Once again the market was made to order for speculation, but in view of the bad experiences of several speculators during the past month or so, there was less tendency on the part of dealers to commit themselves to any definite market theory. The gradual decline in production and arrivals which were seasonally due, and which had been already discounted in American markets, contributed to this policy. In view of unsettled conditions and the unpredicability of so many factors, the general feeling was, both in Europe and in the United States, that the next month should see additional price fluctuations, both up and down. Synthetic Detergents Considerable publicity has been given recently to the future of synthetic detergents more commonly known as "soapless" soaps. Synthetic detergents have entered the market held by soap for a thousand years, and their rapid development has been spectacular. Some quarters estimate that output this year may reach over 600,000,000 pounds with the possibility of 1,000,000,000 pounds next year. While the soap industry is one of the largest in the chemical markets, with an approximate annual output of 3,000,000,000 pounds, and while it is alleged that the future of soapless soaps does not lie in the replacement of soap, but rather in the development of new uses which are not practical or possible for conventional soaps, unquestionably soapless soaps have been found a satisfactory replacement in many of the uses of ordinary soap. This is considered in some quarters a potential threat to coconut oil, and accounts for the possible move on the part of the industry to request the United States Congress to eliminate the excise tax of 3 cents per pound. Under present conditions of fats and oils shortage, undoubtedly consumer demand can absorb all the soap and all the detergents now being produced. Obviously, however, if detergent production continue to skyrocket, the American soap market will not permanently be able to digest the combined output. Although animal and vegetable fats are used in synthetics, research has been chiefly applied to petroleum products, from which a large amount of detergents is now being produced. Many feel that, with the excise tax re 235

pealed, coconut oil can probably stand the competition, and, if markets should ever be forced down to even approximately pre-war levels, synthetics might find it hard to compete successfully. However, if at these lower levels Philippine coconut oil still has to shoulder an excise tax of 3 cents, copra producers will eventually have to shoulder the burden, and this might form a very serious threat to the welfare of the industry. Only time will tell the outcome, but the problem is one to be watched. Philippine Refining Company, Inc. N the morning papers of Tuesday, October 7, appeared an interview given by Mr. Geoffrey Heyworth, Chairman of the Board of Lever Brothers and Unilever Limited, stating that the Philippine Refining Company, Inc. is planning to erect a modern coconut-oil mill in Manila at an estimated cost of P4,000,000. The amount involved being considerable, it has been deduced that the enterprise itself must be a very large one. The Philippine Refining Company, Inc. and its predecessors have been in the coconut-oil business in the Philippines since 1915. Prior to the war, the Company operated two large coconut-oil mills, one in Manila and the other in Cebu. Both of these mills were wrecked by the Japanese near the close of the war, and the Company's investments out here were largely wiped out thereby. Inasmuch as we have been in this business so long, however, and have been identified as one of the productive enterprises of the Philippines, it has been decided that both duty and inclination dictated at least a partial restoration of our previous endeavors. To this end, we contemplate the erection of a mill here in Manila of approximately pre-war capacity. Costs have risen so high, however, that the erection of such a mill will require several times the pre-war investment. Methods of processing copra have changed over the years, and our new mill naturally will be built on the latest and most modern plans, and should be an efficient producing unit when it is completed about a year from now. In conjunction with this mill, we expect to continue the manufacture of refined products, including edible oil, vegetable shortening, margarine, and laundry soap, an enterprise which we embarked upon in 1939. If after the completion of this mill additional investment in this country appears warranted, we shall give consideration to reviving our Cebu installation. While fixed capital investment in any new country must naturally involve a considerable amount of risk, it is the opinion of our Company that the announced policy of the Philippine Republic to encourage and protect foreign capital must be taken at full value; and that in a Democracy, continuing to function under the American principles of free enterprise, there should be an opportunity for legitimate business to carry on substantially as it did before the war. Moreover, the Philippines has treated us hospitably for over thirty years, and we feel a moral obligation to do our part in helping,rehabilitate the country. It is for these reasons that we, together with so many other concerns, have begun to try to restore, at least in part, our pre-war business. KENNETH B. DAY Desiccated Coconut By HOWARD R. HICK President and General Manager Peter Paul Philippine Corporation HE following report covers the calendar month of September, 1947. During the period, there was a very large and sudden increase in copra prices which resulted in much speculation on the part of planters and contractors. As a direct result, and due to State-side rumors of further increases, it was difficult to obtain nuts without paying large premiums over the copra equivalent value. Several factories were consequently forced to shut down for short periods in order to secure sufficient raw nuts for processing. The general trend of increased copra prices and speculations as to the limit of the copra advance has led to limited nut-buying and the holding of low nut inventories until the market becomes more stable. The market activity saw prices go from 1P40 to P70 per thousand nuts delivered to the factory, where the market remained at the end of the month with a general trend toward easing off in October. The great demand for desiccated coconut in the United States continues and shows indications of continuing for another six months. There is considerable activity in the United States to push and advertise desiccated coconut for use in new candies. This campaign may add considerably to the pre-war volume of the desiccated coconut business. SHIPPING STATISTICS OF MANUFACTURERS OF DESICCATED COCONUT FOR THE MONTH OF SEPTEMBER Blue Bar Coconut Products Co... 1,837,100 Canlubang Sugar Estate..... Shipped by Franklin Baker Co. Cooperative Coconut Products... Shipped by United Coconut Prod. Franklin Baker Co.. 2,713,260 Marsman & Co., Inc....405,200 Peter Paul Philippine Corp.... 2,006,000 Philippine Desiccated Co..... Shipped by Blue Bar Coco. Co. Red V Coconut Products..... 714,000 Sun-Ripe Coconut Products... 1,000,000 United Coconut Products, Inc... 384,000 Manila Hemp By MUP AY COOK International Harvester Company of the Philippines HE month of September witnessed a firm and active Tmarket for Manila hemp. Starting quietly at a price of P45.50 per picul for Davao J1, the market soon firmed up. By September 9, the price had risen to P49, with some business reported at P50 per picul. Even at these prices, loose hemp was scarce and difficult to buy for a few days until sellers appeared and a slight reaction took place. The market remained steady to firm, around P47.50 for Davao J1 to about the third week of September. At this point, exporters showed more desire to buy, resulting in a sharp advance in the market. By the end of September, buyers were eager at a price of 1P51 per picul, closing the market for the month on a firm basis. During the month under review, a steady and orderly market existed in the non-Davao grades. Opening quietly at a nominal price of P37.50 per picul for J1, the marketin sympathy with Davao, slowly advanced to P38.50 during the first three weeks. Supplies other than Unitea Kingcom grades were extremely scarce and difficult to buy. Fortunately, demand for lower grades by United States manufacturers continued steady, and exporters kept comfortably operating. The last week of September was one of little activity in the absence of sellers, and exporters were content to digest previous purchases. The market closed very firm at a nominal price of P39 per picul for J1. production during September was within a few bales of the August figure supplied by the Fiber Inspection Ser vice. A total of 76,594 bales were produced, which again established a post-war record for any one month. This exceeded the total number of bales for August by 164 bales. Davao production was off to 29,106 bales, while the non-Davao grades accounted for the balance of 47,488 bales, a post-war record for non-Davao. Of the total of 76,594 bales produced, approximately 47,000 bales were United States grades. Non-Davao production is still tending toward lower grades. 236

Sugar By G. G. GORDON Secre tary - Treasurer, Philippine Sugar Association FOR the purpose of receiving proposals of the Associated Steamship Lines regarding the freight-rate on sugar for the coming milling season, a committee of sugar shippers consisting of Messrs. Gordon, Bridgeford, and Rosales was appointed recently to meet with a committee of the Associated Steamship Lines. Although the Indian Government has allocated a quota of jute bags to the Philippines, some sugar centrals are still facing the problem of securing their sugar-containers, in view of the inability of Indian suppliers to make further shipments from Calcutta. Other sources are being explored with the hope of finding satisfactory substitute containers. The War Damage Commission held a public hearing on October 20 regarding the Commission's ruling on the filing of war-damage claims by the centrals on behalf of the planters, and also for determining the valuation of sugar to be used as a basis of war-damage claims by centrals and planters. A large delegation of planters and central representatives attended this hearing. In view of the impending departure of Mr. Juan Cojuangco for the United States, Mr. Jose Cojuangco has been elected member of the Executive Committee of the Philippine Sugar Association for the unexpired term. The following centrals have reported that milling operations have begun: La Carlota Lopez Sugar Central Bogo-Medellin Milling Company Quotations on the New York Sugar Exchange for the period from the second half of September to the first half of October ranged as follows: Part of the machinery was looted and sold to uncontrolled manufacturers and cannot be traced, the result being a persistent sale of inferior quality cigarettes and a falsification of a few of the most-saleable brands. The Bureau of Internal Revenue and the Manila Tobacco Association are giving serious consideration to this problem and hope in a near future to effect control over the sale of cigarettes, so as to protect the public from products that are not guaranteed by the official inspections which are a necessary part of this business. The local cigar business has been greatly hurt by the flood of Army surplus cigars, which irresponsible small merchants and street-vendors are peddling everywhere, underselling the local product. The usual tax is supposed to be paid on these cigars so as to give a fair chance of competition to local makes, but it is obviously impossible to control the thousands of peddlers throughout the city, and the result is a very unfair competition. The harm done to the leaf tobacco-farmers and cigarfactory workers is considerable, and will only come to a stop when the surplus cigars are banned or the supply runs out. Machinery By V. E. LEDNICKY Edward J. Nell Company HE machinery market in the United States is definitely Timproving insofar as deliveries to the Philippines are concerned. There is also a definite tendency for prices to rise steadily and to continue to do so until the expected recession begins. Although most manufacturers have a large backlog of orders, they prefer, if possible, to ship to countries not hampered by exchange restrictions, and the Philippines happens to be one of the favored few which are allowed by the United States Philippine agr ements to pay drafts promptly. When shipping to many other countries, the manufacturer often has to wait 90 days or more for his money. Such a long wait ties up too much capital for the average manufacturer and he cannot afford to take the risks of doing so. Although many factories are equipped to turn out much more than they are doing at present, they are unable to get operatives for machines, and it is no uncommon sight to see whole rows of idle machines in many plants. The officials concerned give several causes for the lack of labor, both skilled and unskilled. Two of the principal of these are that several hundred thousand young men are taking advantage of the "G.I. bill of rights" and are attending college, and that many others have gone into business for themselves with the aid of government loans. The high price of lumber and food products has attracted a great many young men who would otherwise be working in a production-line. Mechanics' wages are high but they cannot compare with the income of a farmer today. The wheat grower of 1941 was broke and in debt, but now, after six years of high prices and bumper crops, he has more money than he knows what to do with, while the factory worker is struggling along against the rising prices of foodstuffs and can barely make ends meet. During the war the price of metals was controlled and this tended to keep prices of manufactured products down, but as soon as controls were removed, prices of metals skyrocketed. Even at the present prices, there is a definite shortage of lead, zinc, and copper; in fact, the shortage of copper this year will reach the substantial amount of 100,000 tons. Government reserves are being rapidly depleted, if they are not already gone, and there is no immediate relief in sight. Before the war, mines were forced, because of low prices, to operate at a loss or at no profit, so they did a High May..................... 5.22 July..................... 5.20 September............... 5.19 December................ 5.23 Low 5.01 4 98 5.00 5.06 Close 5.15 5 16 5.18 5.23 Sales 44,000 tons 10,750 2,100 250 57,100 TOrAL SALES............................ Tobacco By the CONDE DE CHURRUCA Compania General de Tabacos de Filipinas ACTIVITIES in leaf tobacco are quiet, and only a small amount of local trading was done last month. Some tobacco was exported to Algeria (French North Africa), but the shipments were the result of previous contracts a few months old. The last typhoon which crossed northern Luzon could have had severe consequences for the tobacco planters; luckily, very few had started preparing the seed-beds, of which about one-third has been lost and must be replaced. That is the advantage of early planting; there is always time to replace losses caused by bad weather and storms. Also, the early crops, if not damaged, produce tobacco of better quality because the harvesting then has a very good chance of being done under the most favorable weather conditions. On the other hand, the not very enthusiastic or active farmers will not risk having to do their planting twice, and so plant as late as they can to avoid possible floods. The cigar industry, one of the most famous of the Islands, has been very badly hurt by the war. Most of the factories lost everything, stocks, machinery, and buildings. 237

minimum of development work. During the war, metal was a prime necessity and was used at a rpte of ten times normal. In order to get sufficient production with limited crews, it was imperative that high-grading be resorted to. The best ore was taken out and only the low grade was left, and there was no time to develop future reserves. As the matter stands today, many mines cannot operate at present prices because their ore reserves are too low-grade and they won't have funds to carry on extensive development work until the reserves will have been brought up in grade. There is only one solution, and that is to raise the price until production costs are covered. Naturally an increase in the price of metals will necessitate an increase in the price of finished machinery. It is a vicious circle and only a depression or a recession, as it is now called, can stop the rat race. Automobiles and Trucks By J. L. MANNING Manila Trading & Supply Company T HE records of the Division of Motor Vehicles reveal the following figures on revenue collected from vehicle registration and drivers' licenses for the periods indicated: 1941............ P5,300,000.00 1945............. 1,431,552.81 1946............. 8,221,666.18 These figures are particularly interesting in view of the fact that actual fees per vehicle are exactly the same at present as obtained before the war. A total of 118,630 drivers' licenses were issued in the period from January 1 to June 30, 1947. A survey of market conditions in the automobile and truck trade, indicates a substantial increase in creditsales from January of t is year through October. The majority of truck credit-sales are being consummated on the basis of 50% in cash and the balance payable in 6 equal monthly installments. Automobile credit-sales are generally 50% to 75% in cash and the balance in 3 to 4 equal monthly installments. It is estimated that between 35% to 40%0 of automobile sales are now being made on a time basis, as opposed to the strictly cash transactions for the first 7 months of this year. Best estimates on truck sales would indicate that at persent over 50% of all sales are made on an installment basis, whereas in January of this year less than 20% of the total were on a credit basis. All indications are that the market and demand will remain strong and that merchants are in possession of an adequate inventory to handle requirements. Drugs, Health Supplies, and Toiletries By FRANK A. DELGADO Assistant General Manager Philippine American Drug Company AN anomalous situation prevails today in the PhilipA pines in the marketing of such consumer items as packaged medicines, surgical dressings (cotton, adhesive plaster, etc.,) toiletries, razor-blades, tooth-brushes, combs, sun-glasses, household dyes, insecticides, shoepolishes, and numerous other items imported and distributed by drug wholesalers and importers. The anomally is that in recent months distributors in Manila frequently receive notices from the United States of actual or planned price increases for the subject products, notwithstanding a definite local heavily-overloaded inventory-situation which has resulted in quite a few of the items now selling at distressed and give-away prices, well below'either actual landed costs or replacement costs. Despite the rising price-trend in the United States for a number of drugs, insecticides, cosmetics, toiletries, and drug sundries, many of these items continue to be sold in the Philippines at less than "State-side" prices. However in justice to the American drug industry, it should be pointed out that in the United States, consumers qre spending only 3.12% more today for nationally advertised packaged drugs and toiletries than they did in 1939. Mr. C. C. Caruso, President of the National Drug Wholesalers Association pointed out in April, 1947, that the drug business was almost alone among the great industries in the United States in maintaining a record of scarcely a price increase from 1940 to 1946. Most of the price increases referred to in this review have occurred since April. The situation is particularly disturbing and confusing when a distributor receives for example a shipment of absorbent cotton, the price of which has substantially increased, and finds it impossible to make sales because competitors are actually selling at prices below his cost. Under circumstances such as this, where it is impossible to meet such "cut-throat" price competition, it would seem that the best possible policy to adopt would be to discontinue ordering such an item or order it in greatly reduced quantities, until the supply and price situation assumes a normal tone. It is to be hoped that prices will adjust themselves as inventories are lightened. In the meantime, however, the situation is further aggravated by the disposal of surplus P.X. supplies such as razorblades, certain brands of tooth-paste, talcum powder, shampoos, etc. Such surpluses when thrown on the market and added to the already excessive over-supply situation, result in the squatting sidewalk-peddlers with which Manila abounds hawking well-known brands of American shaving-creams at P1.00 ($0.50) a dozen, hair-combs at 5 centavos each, Gillette razor-blades at 3 or 4 packages for P1.00. It is very difficult for legitimate business establishments paying high rents to meet this competition. The difficulty is even greater when one considers that on a great number of the products the legitimate dealer pays a luxury tax of 20% and on others 5%. Even though he sells at much less than absolute landed cost, he must pay the tax. A brief explanation of the cause of the present oversupply situation would seem in order. The 15- to 18 -months period following the war, was one in which consumers eagerly sought goods. Selling was to a large extent effortless. There was to a large degree a substantial amount of capital and cash, with restricted available quantities of merchandise. During and especially after the war, many new firms sprang up and engaged in businesses that were new to them. Many of them made their capital in the "buy-and-sell" business. Another factor not to be overlooked is that several of the relatively small pre-war wholesale dealers, who were actually no more than subwholesalers and who were regarded by the large wholesalers as customers, decided to expand, import direct, and compete with the older and larger established wholesalers. Regardless of the tremendous cost of supplies, they in turn sold at high prices, particularly during the nearly two years that American troops spent so freely in the Phil ippines; and while many of them were wiped out and still others will probably disappear, a considerable number have swollen the present ranks of importers and wholesalers of drugs, cosmetics, chemicals, and similar products. It is estimated that for every one pre-war dealer in the subject products, there are now twvo or three such dealers, even though some of them may not be large. 238

N-ove-mber, 1947 AMERICAN CHAMBER 0 Therefore, during the early post-war period, not only the legitimate pre-war dealers were placing large orders, but the newcomers in the field were doing likewise, thus for every pre-war importer there were two or even three, and it was not uncommon for an advertisement to read: "Just received a shipment of women's dresses, cannedsardines, men's shoes, liniment, penicillin, hardware, metalroofing and cosmetics." The result was that although it sometimes took a second or third shipment, the pipe-line was finally filled to overflowing, and then, to add fuel to the fire, surplus Army supplies began to be thrown on the market and continue to be offered up to the present. The supply-situation was complicated further when the Philippine Government during 1946, through its National Trading Cooperatives, placed large orders for such products as mouth-washes, pharmaceuticals, laxatives, sanitary-napkins, adhesive-plaster, and the usual items dealt in by wholesale drug houses. This action on the part of the Government was ostensibly designed to "prevent monopolization, hoarding, injurious speculation, manipulation, private control and profiteering affecting the supply, distribution, and movement of articles of prime necessity." It may be of interest to note that the agency in question appears also to be confronted with an excessive inventory problem and is reported to be making offers of part of its stock below cost. Another contributary cause to the overloaded inventory-situation was the shipping by American manufacturers of large supplies to this country, even if the item was in short supply in the United States. For examrple in April, 1947, Canada, the United States neighbor, was threatend with a critical shortage of soap, notwithstanding plentiful supplies in the Philippines, and frequent fresh arrivals. It should be mentioned that at about this time, acting in support of President Truman's anti-infla F COMMERCE JOURNAL 239 tion drive, a large number of American soap manufacturers reduced their prices approximately 10%. It may be appropriate to remark, if it is any consolation to the drug wholesaler in the Philippines, that in the United States retail inventories swollen far beyond normal levels accounted for a sharp decline in manufacturers' shipments of toiletries for the firs( four months of this year. The same study revealed also that January, 1947, dealer-stocks of toiletries were 32% over January, 1945. The indication was that retailers were reducing inventories. A recent occurrence will illustrate the overloaded market for certain items. Early in October, the Manila representative of one of the largest drug houses in the United States received a cable offering quinine tablets, which had just been freed1 from government control in the United States, at what seemed a very low figure. But a survey of prevailing prices in the Philippines revealed that they were being and had been offered at much lower prices here. With the warehouses of Manila filled with the type of consumer goods under discussion, the only solution which seems to present itself for legitimate, long-established drug wholesalers, importers, and distributors, is to recognize that on a substantial number of the subject items they must take a partial or complete loss, depending on their actual realizable value on today's market, and carry them on their inventories only at such value. Incidentally, proper action should be taken regarding insurance at the new value. It is better to take a partial loss on such items immediately, than to wait and take a greater or complete loss later. This, of course, is difficult medicine for the wholesaler to swallow, particularly in view of the currently high operating cost. Wages, salaries, and all other expenses have increased greatly, and the tendency is for them to continue to rise. In the United 'IL - - Al N ( ' h e Mobilu Sign of cJriendly Service THE ASSURANCE OF GOODWILL ON THE ROAD Drive Safely with Mobilgas & Mobiloil STANDARD-VACUUM OIL COMPANY P HIL IP PI NE S / "I, 00,

240 AMERICAN CHAMBER C States, 63% of the wholesale druggist'scost of doing business is labor. The subject of operating cost bring up the real need of trimming expenses to meet the lower salesvalue volume brought about by1. Unemployment and general economic conditions; 2. Reduced prices which may not provide margins which adequately cover the al ays high wholesalers' handling cost. It is a well-established fact that when sales begin to recede, it is impossible to bring down the cost of operations proportionately. According to the National Wholesale Druggist Association, "a slump of 20% in a wholesaler's sales results in a rise of 2.7 in wholesaler's operating cost, which is enough to wipe out completely their entire net earnings." Obviously, a step in the remedy to relieve the local current high-inventory and low-price situation, is to purchase ultra-conservatively, oftener, and in smaller quantities, and to keep inventories down. Part of the cause of the situation under discussion was abnormally large purchases, with consequent high inventories. While it is realized that the wholesale druggist in Manila must carry a larger inventory than his American counterpart, it is nevertheless interesting to know that according to an estimate of the U. S. Commerce Department, based upon returns from 153 drug wholesalers, their inventories at the end of May, 1947, averaged only $410,000 (P820,000). During May, these same wholesalers enjoyed average sales of $232,100 (P464,200). A handling-costs study, completed early in 1947 for the National Wholesale Druggist Association by Prof. H. J. Ostlund of Minnesota, revealed that for the 20 drug wholesalers who were surveyed, average annual sales amounted to $3,750,000 (P7,500,000) each. These figures indicate, assuming the inventory remained constant and there was an approximate mark-up of 25%, that five or six turnovers may be expected annually and that, if drug wholesalers in the Philippines )F COMMERCE JOURNAL November. 1947 exercise maximum care in placing and timing their orders, they should do a reasonably large business on a relatively small inventory. Another important step that should be taken, is to write the American manufacturers of the products which constitute a supply-problem and urge them in their own interest and in the interest of the drug wholesalers affected, to engage in an aggressive and generous advertising campaign designed to move the products in question into the hands of consumers. In at least two instances this plan has proved successful for a local wholesaler who now contemplates writing many other manufacturers. Unfortunately, many American manufacturers who advertised very heavily before the war and who continue to do so in the United States, have taken advantage of the situation and seem to have reasoned that if they received tremendous unsolicited orders from the Philippines for 12 to 18 months after liberation, why plow back part of their profits by buying advertising-space in foreign newspapers? This is a strange attitude for any member of an industry that ranks in the United States among the first four in expenditures for advertising. During 1946, some 20 American firms manufacturing drugs, cosmetics, soaps, and related products, spent over $1,500,000 each in advertising. Several of them spent sums as high as from $3,000,000 to nearly $13,000,000. Many manufacturers who are newcomers in this market have displayed sounder judgment and, as a result of well planned promotional programs for their products, are already well established. One could appropriately quote Mr. James Hill, Jr., President of Sterling Drug, Inc., who recently stated, "'Manufacturers must continue to advertise if they are to halt sales declines." This remark, however, should apply to foreign markets such as the Philippines just a much as it does to the United States. THIS EMBLEM... IDENTIFIES INTERNATIONAL HARVESTER BRANCHES AND DISTRIBUTORS. BEHIND THIS NAME STANDS ONE OF THE WORLD'S LARGEST SERVICE ORGANIZATIONS..,..,~;I..!, 11_ I _. | I W is.11 11, * ' | Is a I r i' NOW! The Finest Values in Mo re Than 40 Years of INTERNATIONAL TRUCK HISTORY There is a Size and Type for cvery INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA CEBU BACOLOD DAVAO HAULING NEED

November, 1947 AMERICAN CHAMBER OF COMMFRCE JOURNAL )41 To alleviate the local supply problem, not only should the American exporter resume and increase advertising in the Philippines, but he should allow larger and fairer margins of profit to meet the tremendous post-war increase in the costs of doing business in this country, which includes losses of cargo through pillaging, greatly increased labor and salary cost, transportation cost, etc. Distributors in the Philippines, just as in the United States, need a margin commensurate with the proved cost of handling goods in the units or quantities in which they are customarily ordered. American manufacturers of high-grade prestige lines (perfumes, cosmetics, treatment-lines, and related products) will be wise to exercise care in the selection of exclusive distributors and select one who will use discretion in obtaining reasonable high-grade outlets for resale. Their export sales may not be quite as large at the start, but from a long-range point of view it will pay the American exporter of a high-grade line to pursue a policy of selective distribution, otherwise he may find his line has been killed by falling into the hands of sidewalk-peddlers and other low-grade outlets. Textiles By JAMES TRAYNOR S EPTEMBER arrivals of American textiles were estimated to be about double the quantity that arrived during August. The arrivals from Shanghai were approximately three times greater than during August. These increased arrivals were sold readily enough, although some sold at cost or lower. The American grades suffering most from Sllanghai competition, were printed. bleached, and unbleached goods. No new important busi ness for these grades has been placed with American mills for several months and no business is expected in the near future. No arrivals were reported from Japan during September. The volume of business placed with American mills during September is estimated to be better than during August, and according to reports this is also true of the volume placed with Shanghai mills. The New York market continued to be firm and increases were reported on most grades. The delivery situation with American mills is still "far ahead", but importers are now beginning to place orders for shipment up to next March Ap il. Until recently, importers were reluctant to place orders for deliveries so far ahead. All during September the off-take was satisfactory and toward the end of the month local prices on some grades, which were overstocked, adjusted themselves in line with cost. Legislation, Executive Orders, and Court Decisions BY ROBERT JANDA Ross, Selph, Carrascoso P' Janda T HE Congress of the Philippines has not been in session during the past month and there is no new legislation to require comment. Attention is directed, however, to the coming session opening in January next year. The Congress will consider the economic and legislative programs proposed by the Beyster Report and by the recommendations of the Joint Philippine American Finance Commission. Legislation of far-reaching significance to the business community will undoubtedly be enacted. li ATLANTIC GULF & PACIFIC COMPANY OF MANILA EXECUTIVE & SALES OFFICE 222 REGINA BUILDING TEL. 2-83-64 ENGINEERING DEPT. & SHOPS PUNTA, SANTA ANA TEL. 8-63-32 *0 * ENGINEERS-CONTRACTORS * * * I DIS TRIB UTORS FOR FAIRBANKS MORSE & CO. GARDNER DENVER CO. CHAIN BELT CO. ARMCO INTERNATIONAL CORP. PIONEER ENGINEERING WORKS YORK CORPORATION LINCOLN ELECTRIC CO. WALSH REFRACTORIES CORP. MARION POWER SHOVEL CO. I.I

. v _ 1 _- * - e-v — - 242. AMERICAN CHAMBER O During the month there have been no decisions of the Courts of outstanding interest to the business community. However, the newspapers report that the Supreme Court had voted to decide the case of Krevenko versus Register of Deeds of the City of Manila adversely to plaintiff. If so, the result would be that aliens and alien-controlled entities would be constitutionally disqualified from owning residential and commercial real estate. Because of the adverse effect of disqualifying foreign capital from participating in the reconstruction of Philippine urban properties, it is sincerely hoped that the report will prove to have been incorrect. The Supreme Court in denying mandamus in the case of Schoenbeck versus Barrios, in effect held that stateless persons of former enemy nationality were not disqualified from applying for Philippine citizenship, prior to the conclusion of a treaty of peace between the Philippines and the country of their former nationality, if they can show they were divested of their former citizenship prior to outbreak of the war. In Executive Order No. 97 the President waived all unpaid additional progressive taxes provided in section 2 of Commonwealth Act No. 567 to be paid by the proprietors or operators of sugar mills for the 1941-1942 crop. Payments made prior to the date of the Order, however, are not refundable. In Executive Order No. 93 the President abolished the National Enterprises Control Board and turned over supervision of government corporations to the Government Enterprises Council which was created by the Order. The properties and operation of Metran were transferred to the Mani a Railroad Company. Certain other government corporations were consolidated or reorganized. The Collector of Internal Revenue in General Circular V-39 publicized opinion No. 210 of the Secretary of Justice which held that the term "manufacturers", as used )F COMMERCE JOURNAL November. 1947 in the Internal Revenue Code, does not include those engaged in the business of re-sawing or re-cutting of already manufactured lumber into smaller sizes, or the planing, surfacing, or otherwise finishing of such lumber. The result is that such processors are exempt from the percentage and other taxes payable by lumber manufacturers. The Collector revoked previous rulings and circulars of his office inconsistent with the opinion of the Secretary. Philippine Government Corporations From an Offi ial Source Sept. 17-The appointment of Secretary M. Garchitorena of the Department of Agriculture and Commerce as Chairman of the Oil Commission, is announced. The Commission was created by joint congressional resolution in May. It will take steps toward the exploration, development, and utilization of the petroleum resources of the country,-whether through the National Development Company or through private entities, or both, will depend on the study and recommendations of the Commission. Sept. 19-President Roxas and his party visit Capiz to inspect the site of the proposed addition to the NDC cannery in the town of Panay. A tripling of the capacity of the plant was recommended by the Beyster Commission. It is planned to can meat as well as fish, and hog and cattle raising will be undertaken by the NDC in the interior towns of Ilayan and Aklan. Manager V. Sabalvaro asked for P500,000 to rehabilitate the Capiz fish industry, which presently nets the Government some P25,000 weekly. Sept. 22-Budget Commissioner Pio Pedrosa, speaking at a meeting of delegates of the National Cooperatives - -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ or DISTINCTIVE PRINTING...... Our advantages of superior workmanship, facilities and experience are evident in the numerous printing jobs we have done for business leaders. THE SEAL OF QUALITY McCULLOUGH PRINTING COMPANY DIVISION OF PHILIPPINE EDUCATION COMPANY, INCORPORA TE!) PRINTERS ENGRAVNERS 4 STATIONERS r 1104 CASUI`LLEJOS QUIAPO, MANITLA 1 SL SN* TELEPHONE 2-94-76

November-,- 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL............................................... 243 Administration, states that one of the great tasks the Government faces is the nationalization of the retail trade, but that it is clearly not in Philippine interest to adopt a policy that is unfair or antagonistic to other countries or their nationals here who have assisted materially in the economic development of the country and have a right to be treated with equity and justice. The Government will not compel patronage to be given to Filipino retailers just because they are Filipinos, but will extend to them such encouragement and such facilities as may properly be extended to enable them to stand on their own worth. This involves also the development of private initiative. He states that the National Cooperatives Administration and provincial trading corporations (under the auspices of the Bureau of Commerce) were organized for this purpose. There are now 1,195 consumers' cooperative associations with an authorized capital of P32,500,000 and a membership of 250,499. The provincial trading corporations have organized as subscribers some 2,000 of the 60,000 Filipino retail merchants in various localities, the corporations serving as procurement agencies. He states these two organizations must be coordinated and that therefore the provincial trading corporations will be transferred to the National Cooperatives Administration which will be renamed the National Cooperatives and Small Business Corporation. The purchasing functions will be transferred to the new Philippine Relief and Trade Rehabilitation Administration (PRATRA). Sept. 26-Members of the Cabinet decide to initiate the floating of the bonds of the Reconstruction Finance Corporation by each purchasing at least P100 worth. The Cabinet agrees that the Surplus Commission be paid at least P300 for each jeep or ot:er U. S. Army surplus vehicle turned over to a government entity. Sept. 27-President Roxas appoints Commissioner Pe dros, ad interim vice-chairman of the board of directors of PRATRA. Oct. 1-Five officials and employees of the National Trading Corporation are suspended pendi g a final report of an investigating committee which is looking into certain irregularities allegedly committed by them. Oct. 4-Malacafian release a report that 10,000 cases of canned milk Lelonging to the National Trading Corporation have spoiled. Further large losses are entailed in the decrease in price. The milk was bought in early 1946 at P15 a case and now sells for P9. The National Trading Corporation opened business on October 19, 1945, and from that time up to June 30 of this year s ld foodstuffs amounting to P16,249,232.70, the purchases during this period totaling P17,987,752.47. Despite the losses indicated, the Corporation reported a profit of P'426,011.16 as of June 30, 1947, and a profit of P494,523.02 as of June, 1946., Oct. 7-President Roxas casts the government votes at the stockholders' meeting of the Manila Railroad Company. Commissioner Pedrosa is el cted President, F. E. V. Sison remaining General Manager. The office of Comptroller is eliminated, in line with the policy of President Roxas of segregating the auditing from the accounting work in all government-owned corporations. For the fiscal year ending June 30, 1947, the Company incurred an operating loss of P786,000, and no provision has been made for the payment of interest and amortization on the bonded indebtedness to the former English owners of the Company. Only 866 kilometers of the pre-war 1,140 kilo-net rs of trackage was operated during the year; 64 locomotives ~as compared to 146 pre-war; and 2,037 cars of all kinds as compared to the pre-war 2,889. During the year, the Naga-Ligao line, 68 kms., the College-Pagsawitan line, 28 kms., the San Pablo-Lucena line, 44 kms., and the College-San Pablo line, 44, kms. were rehabilitated. Eleven I I i I I I i I SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and EXCLUSIVE DISTRIBUTORS OF: SUGECO Highest Purity OXYGEN and ACETYLENE Gases "NATIONAL" CARBIDE WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS OF "SUPERFLA IE" BOTTLED GAS FOR ALL COOKING PURPOSES and "TAPPAN" GAS STOVES wNith complete Installation and Service Facilities k I S.,...... XA I _____ I I

244 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 steel bridges were completed, with a total length of 582 meters; ten bridges, with a total length of 240 meters, were temporarily repaired. The Company has filed claims with the War Damage Commission amounting to P29,000,000. Assets before the war amounted to P117,000,000. During the past year, assets were increased by P20,000,000 represented by advances made by the Government of P12,500,000 and special assets received from surplus Army property valued at P8,000,000. Accumulated operating losses since before the war amount to P4,355,000, but the amounts are diminishing. Secretary Ozaeta, answering an inquiry of the Secretary of Agriculture and Natural Resources, states that the National Development Company will have exclusive control, supervision, and administration of the land reserved for government lumber-production, and that it will be exempt from complying with the forestry laws and regulations relating to cutting, gathering, and removing timber and other forest-products, but that it will have to pay the regular forest charges and must comply with internal revenue laws and regulations. Oct. 9-Announced that Madox Brown is the new press relations officer of the Beyster Corporation, relieving J. S. Hinchman. Oct. 11-According to a Malacanan press release, the annual stockholders' meeting of the Manila Hotel Company was held yesterday, with Commissioner Pedrosa presiding as President of the Manila Railroad Company, the controlling entity. For the fiscal year ending June 30, the Hotel made a net profit of P836,192.85, and the General Manager, Col. Manuel Nieto, and the board of directors were highly commended for this showing. Collonel Nieto's main recommendation was for the appropriation of funds required for the reconstruction of the airconditioned wing of the Hotel. Labor From an Official Source Sept. 17-Malacafian announces that the strike at the Pandacan plant of the Caltex Company is not a conflict between capital and labor but between two rival labor unions, one of which demanded the dismissal of three employees who were members of the other, the Company refusing to do this without a previous hearing of the men concerned. Sept. 22-Malacafian announces the settlement of the Caltex strike, an agreement having been reached that dismissals or lay-offs will be determined ty a committee composed of two representatives of the Company labor association, two\of the National Labor Union, and one of the Department of Labor. Sept. 29-President Roxas issues an executive order authorizing provincial, municipal, and chartered city governments to grant the living bonus, which lapsed the end of June, for the new fiscal year ending June 30, 1948, payments not to be in excess of the scale fixed by the National Government for its own officers and employees and provided that their financial condition permits this payment. Oct. 4-Secretary to the President Nicanor Roxas, in a speech on the Malacafian grounds at the program given in honor of 113 "exemplary employees" of the Government selected for this distinction, states that these employees should serve as models to others.and that merit alone should be the basis for advancement in government service. Malacafian reports that hundreds of families on Panay Island receive some P50,000 a week from around 3,000 relatives working under contract with the Luzon Stevedoring Company for the U. S. Navy Supply Corps in Guam. They are paid a minimum daily wage of P3.50, free food and housing, and various privileges, with a guarantee of 5 days' work a week. At the end of his year's contract, an employee is given a bonus based on his earnings, and free transportation home. If he seeks reemployment after his vacation, he is given preference over new replacements. Filipino laborers are given priority over any other nationality in Guam job-placement, there being a scarcity of local labor. COST OF LIVING INDEX OF A WAGE EARNER'S FAMILY IN MANILA BY MONTH, 1945 TO MAY, 1947 Prepared by the Bureau of the Census and Statistics 1941 =100 1945 March........... April............ May............. June............ July............. August.......... September...... October......... November........ December...... 1946 January......... February........ March........... April............ May............ June............ July............. August......... September....... October.......... November....... December..... All Items 559.8 598.8 689.7 745.8 751.5 724.7 708.4 735.3 747.8 669 4 603.4 547.2 525.9 556.2 545.1 538.7 552.7 477.9 477.9 487.4 484.8 461.9 Food (59.15)2 635.5 702.1 799.4 872.7 886.9 848.5 852 4 937 8 955.8 852.7 759.2 656.3 631.0 684 1 675.6 666 4 704.3 590.0 591.3 587.2 607.8 570 8 House Rent (8.43)2 236 4 236.4 236.4 236.4 236.4 236.4 236 4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236 4 236.4 236.4 236.4 236.4 236.4 Clothing (0.62)2 1695.2 1611.9 2041.5 1860.8 1664.2 1484.5 1034.0 1045.1 1017.0 1030 3 984.0 940.3 940.1 910.3 762.5 737.9 598.9 384.7 378.7 382.7 406 4 371.9 Fuel, Ligh t and Water (13.94)! 237.1 254.3 380.7 410.8 393.4 397.6 367.7 466.1 480.2 401.9 363.8 369.5 340.4 345.5 342.3 343.3 341.3 320.9 314.5 405.8 346.5 344.7 Misce!la neous (17.86): 674.4 661.4 734.8 788.7 794.1 774.3 709.1 499 5 499.9 463.0 434.8 460.7 445.2 435.9 409.6 404.2 364 6 346.3 347.2 342 7 305.2 30a2.1 f. IM', i

November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 245 19471 January.......... February......... March......... April............ May............. June............ July............ August.......... September....... October........ 394.1 389.5 378.6 360.3 354.2 358.6 364.1 358.0 340.4 331.1 468.2 454.9 440.1 413.3 404.4 414.4 426.8 419.8 392.1 376.9 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 236.4 381.9 356.3 295.2 269.2 250.9 236.8 217.7 210.2 216.4 212.7 326.2 344.8 334.7 328.3 325.4 316.6 309.3 292.0 283.3 280.5 282.5 281.4 279.4 271.6 269.4 268.6 269.9 269.1 266.8 267.7 1 Weekly average only 2 Weights Philippine Safety Council FRANK S. TENNY Director, Philippine Safety Council The Philippine Safety Council is well represented on both the President's and the Mayor's Traffic Committees. Majority of committeemen and both chairmen are PSC members. Progress is expected. Mine safety meeting held on 29 October with Labor Secretary Magsalin and Safety Engineer Maliuanag. Other safety matters also discussed, Announcements to follow. Plans are underway for large public fire-fighting demonstration. Participants will be Manila Fire Department, PHILRYCOM Fire Department, and Universal Trading Corporation. Weekly radio program, newspaper and magazine publicity, and other routines continuing. Traffic Handbook, Driver's Training School, and Chauffeur's Qualification List now being planned and worked upon. Your comments, suggestions and questions are welcome. The Safety Council is now instructing Rizal City Police Department weekly. Other Chambers of Commerce Chamber of Commerce of the Philippines L AST month the United Technological Organizations of the Philippines was definitely linked with the Filipino business community. The occasion was the third quarterly session of UTOP, when President Gil J. Puyat, of the Chamber of Commerce, was guest of honor and speaker at luncheon. The organization is a militant entity of architects, chemical engineers, civil engineers, mechanical and electrical engineers, and mining, metallurgical, and geological engineers-the Filipino techniciansand the Chamber of Commerce of the Philippines is the organization of Filipinos in business. Both aim at building the Philippines with the technical and business knowhow of its nationals. The central theme of the speech of President Puyat was industrialization, its handicaps in the past and the obstacles that lay in our path. Without mincing words in tracing pre-war Philippine economy, he stated this was the result of imposed legislation emanating from the Federal Congress, which made Philippine trade relations completely dependent upon American essential and luxury goods, impaired our industrial development, and caused us to place emphasis on the wrong things in economic development. (It must be recalled that we opposed the imposition of Philippine-American free-trade on the floor of Congress. A vigorous speech was delivered on the subject by the first Resident Commissioner, the late Pablo Ocampo). As a consequence, President Puyat asserted, there developed a national psychology, unhealthy for the advance I I I z - —. ICONNELl BROS.COMPAN (PHILIPPINES) ~CEBU * MANILA* ILOILO * <4 GENERAL MERCHANTS Cable Address: CONNELL SAN FRANCISCO * LOS ANGELES * NEW YORK * SHANGHAI * HONGKONG SINGAPORE * TIENTSIN * PENANG * SAIGON * BANGKOK BOMBAY * VANCOUVER. 'J II L clear copies **** Mimeograph 90 duplicator...dependable... hand-oper. ated...Will produce a few... or a few thousand copies... neatly... speedily... economically... in your own office...Come in today and see it in actionl 1I~1 '+* Sole Distributor: Erlanger & Galinger, Inc. OFFICE SERVICE DEPARTMENT Ground Floor, Calvo Bldg. 210 13th Street, Port Area 60 Escolta, Tel. 2-80-60 Tel. 2-89-21 1

246 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 I A w 94f1 AMERiCAN CHAMBER OF COMMERCE JOURNAL November, 1947 I GC IET IBIRDOS. CO. SAN FRANCISCO, U. S. A. IMPORTERS AND EXPORTERS GLASS 11 PAPER B CARBIDE II LEATHER II TEXTILES B LIVESTOCK HARDWARE 0 MACHINERY U BI EXPLOSIVES II FOODSTUFFS S1 CHUCHERIAS n ELECTRONICS U H PHARMACEUTICALS B DAIRY EQUIPMENT B B COPPER AND BRASS SI H1 BUILDING MATERIALS 5 H PETROLEUM PRODUCTS 11 INDUSTRIAL CHEMICALS n CONFECTIONERY SUPPLIES B II IRON AND STEEL PRODUCTS U HONOLULU SHANGHAI HONGKONG SINGAPORE MADRAS BRANCHES: CAPETOWN BATAVIA BANGKOK CALCUTTA BOMBAY JOHANNESBURG DURBAN MEXICO CITY MANILA ment of the technical sciences, resulting in a national complex against technical training both in industry and agriculture. A present obstacle to our industrialization, he asserted, is the Trade Act; so long as there is free importation of American goods, it will be hard for Philippine business with limited capital to compete,-a situation which is aggravated by the anomaly of Philippine exports being limited, while Philippine importation from the United States is unlimited. The Chamber of Commerce of the Philippines advocates the amendment of the Trade Act, in favor of limited free trade for certain staple Philippine products in exchange for capital goods from the United States. Recalling his recent trip, Mr. Puyat explained the importance of dollarcredit in world economy, pointing to England, whose people are limiting what they consume in order to sell to foreign countries and the United States to gain dollar-credit. Reiterating the stand of the Chamber that the Trade Act be amended so that Philippine imports be limited to essential goods, President Puyat declared that "Philippine business should be given full freedom and opportunity to develop itself, and could do so without government aid if only Philippine business, Philippine technology, and Philippine labor get united." This is a re-definition of the stand of the Chamber. It is not against government pioneering in business ventures, but in favor of the Government yielding to businessto Filipino business, since our independence-whenever the latter is ready to take over. It is not against the Government starting industrial projects, but in favor of it turning them over to private capital when it is ready to step in. It is against the Government crowding private enterprises when these produce enough to meet consumption demands. This speech of President Puyat was well received by the public. The Manila Times had this to say: "Mr. Puyat agitates for a change from the feudal economy under which we stagger onward, to a well-balanced domestic economy in which we would be free to limit imports, stimulate the kind of productive enterprises peculiar to the country and its people, and where business would operate without government intervention. These are all realizable because practical, under a revised Trade Act between the Philippines and the United States. This statement poses a big 'If' which only Malacafan, and the combined efforts of progressive capital and labor, an articulate press-in short, public opinion-can resolve." P. J. OCAMPO, Secretary Spanish Chamber of Commerce of the Philippines IT would be a serious omission as well as a discourtesy on the part of the Spanish Chamber of Commerce not to make mention in this column of the Amity Pact signed between Spain and the Philippines in4Malacanfan Palace on September 27. The ceremony was simple but dignified, and both His Excellency, President Manuel Roxas, and the Honorable Teodomiro de Aguilar, Spanish Minister Plenipotentiary, underlined in their speeches the sincere affection which has united the two countries since the European discovery of these beloved Isles by Magellan in 1521, during the reign of the great Philip II. President Roxas made allusion to the blood-compact entered into by Legaspi and the Rajah of Manila in 1528, Agencies Throughout the World 9"1871-1947. THIS IS OUR 76TH YEAR.9 TRADE & COMMERCE BLDG. TEL. 2-97-33 I Satisfaction... Plus! With the FORD, you get everything you would demand of a modern car... perfect styling, distinguished as well as modern.... restful seats designed specially for luxurious comfort... and effortless driving, holding the road beautifully and responsive to your every wish. You will agree with millions of FORD owners that in style, comfort, economy, and thorough satisfaction - FORD IS OUT FRONT! Stock Available for Immediate Delivery MANILA TRADING & SUPPLY CO. PORT AREA MANILA The MANILA TRADING takes you "Out Front" - with FORD every Thursday, 7:00 —7:30 P.M. Over Station KZRH. — ~~~~~~~~~~~~~ I I I 11 ELECTRONIC SERVICE PROBLEMS? Dozens of new electronic devices are now being marketed - wire recorders, electronic flash equipment, photo-electric control devices, to mention a few. We are equipped to service them all. RADIO ELECTRONIC HEADQUARTERS 821 MISERICORDIA, MANILA TEL. 2-94-21

November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 247 and said that the Pact that had just been signed is more sincere because the two countries are now on a plane of equality as independent nations. Their friendship, the President said, is based on the solid foundation of the common religion, culture, language, and family institutions which is Spain's legacy and which will be forever treasured by the Filipinos. The Pact marks a milestone in the history of the relationship between the two nations, and it is with pride and pleasure that we write of it here. The Spanish Chamber of Commerce views the future relations between them with optimism, certain that the Pact will promote a continuing cultural and economic interchange, and will make possible the closer commercial relations which will contribute to the further economic development of the Philippines. JOSE M. ROSALES, Secretary Office of the President (Continued from page 227) chief of the Executive Office, states there is no danger of a rice-shortage as the National Rice and Corn Corporation has large supplies. Oct. 10.-President Roxas sends a telegram to President Chiang Kai Shek extending cordial felicitations on the 36th anniversary of the Republic of China. The Public Service Commission issues an order fixing bus rates at 1.5 i a kilometer per passenger. Some 50 operators in Luzon will be affected. Oct. 11-The Cabinet is reported to have approved the recommendation of the Secretary of Agriculture regarding the policy on Port Area leases. Leases of those who have not built on these areas within the specified time will be cancelled. Rents received from sub-lessees will be divided equally between the Government and the lessees. A section of the Port Area (to be designated by the Secretary of Agriculture in concurrence with the City Engineer and the Urban Planning Commission) will be set aside for the construction of postal-telegraph and telephone offices, banks and office space for importers and exporters, brokers, and commission agents, the section to be subdivided according to the requirements and allocated through public bidding. Oct. 12-Corregidor is formally transferred by the United States to the Philippine Republic in impressive ceremonies, Maj. Gen. G. F. Moore, war-time commander of the fortress stating: "With it go the warmest wishes of all Americans... that until the end of history no other flag than that of the Philippine Republic shall ever fly over the hallowed ground of Corregidor". President Roxas, in his acceptance speech, states in part: "For almost half a century Corregidor stood sentinel at the entrance to Manila Bay, a symbol of military power. But to the Filipinos it was more than that. To us it was the citadel of liberty and democracy, for we knew that its powerful guns would never be fired except in defense of freedom. It fulfilled its mission with a heroism unsurpassed in the annals of war. It has become in our eyes a symbol of justice, of liberty, of democracy, to which this Republic is eternally dedicated.... Corregidor is an indestructible monument... It will serve to remind this and future generations of my fellow countrymen that these are the ideals for which so many gallant soldiers gave their lives. May God give us strength and perseverance in the fulfilment of these principles for the enduring benefit of all mankind." I m I INHELDER I N C O R P O R A T E D Dealers in: * PHARMACEUTICAL SUPPLIES * INSTRUMENTS * GROCERIES * TEXTILES 5TH FLOOR TRADE & COMMERCE BLDG. TEL. 2-65-48 I m I hallicrafters "THE RADIO MAN'S RADIO" CHOICE OF 33 GOVERNMENTS -89 COUNTRIES THE U. S. ARMY AND NAVY-BROADCASTING STATIONS AND LEADING AIRLINES AND NOW-THE PRESS WHEN THE "UNITED PRESS" PURCHASED FOUR HALLICRAFTERS MODEL SX-42 THEY WANTED WORLD NEWS COVERAGE WHICH THEY WILL GET-BECAUSE hallicrafters MODEL SX-42 has THE GREATEST CONTINUOUS FREQUENCY COVERAGE OF ANY COMMUNICATIONS RADIO. DISTRIBUTED BY F. H. STEVENS & CO. EL HOGAR FILIPINO BUILDING, MANILA, PHILIPPINES I WHEN YOU WANT QUALITY ELECTRICAL WORK CAALL E. J. MORA ELECTRIC CO., INC. Address: 171-2 M. de Comillas Tel. 6-65-85 I

248 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 i ADVERTISE IN MERALCO BUSES 122 BUSES SERVING A POPULATION OF OVER ONE MILLION 90,000 PASSENGERS CARRIED DAILY FOR RATES AND PARTICULARS CALL ADVERTISING. MANAGER Earlier in the day, in ceremonies held at Pier 9, the Dredge Barth was transferred from the United States to the Philippine Government, through the Army Corps of Engineers, the funds for the purchase having been supplied by the American Government under the Philippine Rehabilitation Act. This is the first dredge acquired by the Philippine Government since the war, and it is understood that another dredge will shortly arrive from the United States to be acquired in the same way. In addition, the Government has purchased from United States Army surplus equipment in Guam five suction-dredges, one of which has already arrived at Iloilo and is undergoing repairs there. The other four hopper-dredges are expected to arrive and to be in active operation by the end of the year. In expressing his appreciation of this further proof of American goodwill and willingness to assist in the country's rehabilitation, the President stated that it is believed that with these seven dredges the Government will have sufficient equipment to improve the ports and harbors of the country, neglected since the war. The Barth valued at P6,000,000, was commissioned by the U. S. Army Corps of Engineers on March 2, 1945. It has a displacement of 2000 feet at 11 feet draft. It is a sea-going hopper-dredge, with a rated hopper-capacity of 720 cubic yards which can be filled in 20 minutes by a centrifugal pump with two 15-inch suction pipes. It is expected to be assigned first to dredging and clearing the entrance to the Pasig River, and after that may be sent to Iloilo, Pulupandan, and Cebu, though its permanent station will be Manila. Oct. 13-At his first press conference in many months, President Roxas touched on a number of matters of interest to the business world. He defended the proposed sale by the National Rice and Corn Corporation of more rice to the Dutch East Indies, stating that 16,300 tons of rice bought from the United States have already been sold to the East Indies by NARIC in an advantageous transaction. In taking precautions to guard against shortage, the Philippine Government made purchases in accordance with rice allocations approved by the International Emergency Food Council long before it was possible to obtain any accurate estimates of what the Philippine production would be. The total thus acquired was less than 3% of the total estimated consumption requirement. During September and October of last year, NARIC was selling some 500,000 bags a month, while during September of this year, sales amounted to only some 10,000 bags, the cause of this reduced sale being the large stocks of rice coming in from the provinces. Present stocks of NARIC total over 2,000,000 bags, which it would be unreasonable and unwise to hold, the more so as rice begins to spoil after six months. The President stated that it is not possible to reduce prices now because of the enormous losses this would impose on the Government, MANILA ELECTRIC CO. 134 San Marcclino Tel. 8-75-31 - ----- -- - -- MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS * ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES * TIRES * TUBES Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2 - 79 - 61 AA 230 13th ST., PORT AREA TEL. 2-65-27 L I

November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 249 November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 249 but that this may be done later when it has been possible to export the rice already purchased at relatively high prices. In reducing prices, however, he said that the Government must take the interests of rice-producers into consideration. "In order to definitely solve the rice problem in the Philippines, we must not reduce prices so rapidly that it will discourage farmers who are now making every effort to increase their production." On the loss of the National Trading Corporation through spoiled canned-milk, the President stated that this would probably not exceed P117,000, and that des. pite this loss, the Corporation made a net profit of P426,000. Yet, he said"The Government is engaged in business activities with no aim of making profits. The National Trading Corporation and other similar government organizations have been organized to render service particularly to Filipino merchants. It is the mission of the National Trading Corporation to import commodities from abroad for resale to small Filipino merchants at practically cost price in order to enable Filipino retailers and small merchants to compete with others dealing in the same commodities now in the field. When the need for this service in this line will no longer exist, the activities of the National Trading Corporation, and other corporations will be curtailed." The President also announced at this press conference that the Government had concluded an agreement with Westinghouse International for the establishment of an electrical manufacturing plant, to involve an investment of some P4,000,000, The machinery and equipment needed, estimated to cost P1,000,000, will be supplied by Westinghouse on a rental and royalty basis; P1,500,000 will be supplied by local capital; P500,000 will be subscribed by the National Development Company; and P1,000,000 will be supplied through a bond issue. The plant will be owned and operated by a corporation now being formed, the Philippine Electrical Manufacturing Corporation, and will first engage in the manufacture of fluorescent lamps, this to be followed by the manufacture of incandescent bulbs, not only for local consumption but also for export. The Company will have the privilege of utilizing Westinghouse patents on a royalty basis. 80% of the production will bear the trademark of the local corporation and 29% that of Westinghouse, the latter to be sold entirely abroad. For the future it is contemplated also to manufacture generators and various other types of equipment. In connection with the program, Westinghouse has agreed to train a score or so of Filipino engineers in its plants in the United States. As to the machine-tools to be brought in as reparations from Japan, the President stated that due publicity will be given to a comprehensive inventory when this has been completed. After various government entities have determined their requirements, "which I expect will not be very large", the remainder will be offered at reasonable prices and on an installment-payment basis to those who can show their need of them. AGENCIES TELEPHONE CHARTERS 2-80-39 SALES AMERICAN STEAMSHIP AGENCIES, INC. MANILA, SHANGHAI, SINGAPORE, GUAM 314 MYERS BLDG. CABLE ADDRESS: PORT AREA "AMERSHIP'' MANILA I LUZON STEVEDORING COMPANY, INC. MANILA MANILA'S BIGGEST DEPARTMENT STORE PRE-WAR, IS STILL MANILA'S BIGGEST DEPARTMENT STORE POST-WAR WHERE DISCRIMINATING PEOPLE SHOP HEACOCK'S The Store of Quality 454 & 600 DASMARINAS * TEL. 2-70-81 SHOPPING HOURS: 8:00 A.M. TO 5:30 P.M.. - -

250 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 A -- HEADQUARTERS FOR RCJ JI4O V PRODUCTS - Also Distributor for: LESTER PIANOS MALLORY PRODUCTS PROCTOR APPLIANCES BELTONE HEARING AID RADIOS * RADIO-PHONOGRAPHS * VICTOR RECORDS RADIO PARTS * LESTER PIANOS * REFRIGERATORS COMMERCIAL REFRIGERATORS * WASHING MACHINES PUBLIC ADDRESS SYSTEM * 16 MM. PROJECTORS PHILIPPINE ELECTRONIC INDUSTRIES, INC. REGINA BLDG., MANILA Secretary of Justice Ozaeta declares that "something abnormal, if not anomalous is happening in the Supreme Court" if the report which appeared in a local newspaper is true that "a highly placed official" of the Court told the editor that sometime last February the Court voted 8 to 3 on the still unwritten decision that aliens may not acquire lands or any improvements thereon in the Philippines. The editor claimed also that this official had told him that his editorials attacking the constitutionality of Secretary Ozaeta's contrary opinion "had helped in a big way" to bring the justices to a decision in the matter. "The newspaper editor's alleged informant, judging from the nature of the supposed revelation, could be no other than a member of the Court itself. It is hard for me to believe that a member of the Court, unless he lost his sense of proportion and propriety, would make such undue and uncalled-for revelations to the press in total disregard of a long-standing and heretofore inviolate and sacred unwritten law governing the deliberations of the Supreme Court. Under that law the vote on a pending case must never be revealed by any member of the Court to anybody, and much less to the press, before the decision is signed and actually promulgated and published. One of the reasons for that law and practice is that the vote does not become final, and the Court or the members thereof are free to change it at any time before the decision is actually promulgated.... Furthermore, for a member of the Court or any responsible person to say to any newspaper editor that the latter's editorials had influenced the decision of the Court, is to put the Court in a bad light, to say the least." (Note.-A few days later, Justice Gregorio Perfecto publicly admitted that he was the informant, stating that he did so to "dissipate speculation and misunderstanding". He stated that he disclosed the vote "because I believe that in an ideal democracy, the one our people is striving to attain, no public act of any official should be screened from the people's gaze. Besides, I could not close my eyes to the fact that, while our decision is pending promulgation, more and more lands are being transferred to aliens and registered in their names, and it is hard to remain silent in view of the grave consequences the situation may lead to in regard to the national interests of present and future generations of our people." He expressed his apologies for causing his colleagues "any embarrassment which I never intended to cause". Secretary Ozaeta said that Justice Perfecto's statement "left the next move up to the Supreme Court". On the 16th, Justice Pedro M. Tuason, in explaining his dissent from a Court resolution calling upon the editor to explain why he should not be held in contempt, stated that "it is unfair and unjust to call a man to the bar of justice for committing an act which was encouraged, aided, and abetted by a member of the Court... that the Justice concerned has already made an apology and that he is beyond the power of the Court to punish or discipline, does not alter the moral aspect of the case.) Oct. 14-President Roxas issues an executive order proclaiming the assumption of jurisdiction and administration over the Turtle and Mangsee Islands and constituting the former group as a special municipal district of the Province of Sulu and the latter as forming a part of the Municipal District of Balabac, Province of Palawan. I I SILVER and JAVA SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York PACIFIC LINES JAVA PACIFIC LINE N. V. S.M. "Nederland" N. V. Rotterdamsche Lloyd Amsterdam -Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York PHILIPPINES To and From VANCOUVER SEATTLE PORTLAN D LOS ANGELES AND SAN FRANCISCO PHILIPPINES To and From BOMBAY AND CALCUTTA SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FR O M U. S. ATLANTIC COAST PORTS TO MANILA F R 0 M PIIILIPPINES TO HALIFAX AND U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. AGENTS 3rd Floor, Trade & Commerce Bldg., Juan Luna Tel. 2-82-01 I.1 TELEGRAPH TO ALL THE WORLD AND SHIPS AT SEA ^]ia s OFFICES: PLAZA MORAGA Myers Bldg., Port Area 2-79-00 Elxt. Consolidated Invest. Bldg. Plaza Goiti 1749 Azcarraga 2-79-08 918 San Nicoias 2-79-09,, i

November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 251 New Business Books INDUSTRIALIZATION OF LATIN AMERICA, edited by Lloyd J. Hughlett, first edition, published by McGraw-Hill Book Co., Inc., 1946; distributed by the Philippine Education Co. Inc., P12.50. FOR many years businessmen and industrialists in the Philippines looked to the United States for information, guidance, and help in their problems. Businessmen here have tried to pattern their methods after those of the United States. Sometimes this practice brought good results, sometimes disastrous ones; but always businessmen in the Philippines had to modify American methods drastically before applying them.' By now it is obvious to most people that the methods of the highly industrialized United States cannot be transplanted in toto and indiscriminately to the agricultural Philippines. Businessmen here realize now that in many ways they have more in common with their counterparts in the countries of Latin America than in the United States. Cultural, economic, social, and even political conditions are similar to a surprising extent, and the problems that are found here are often also found in Latin America. It behooves us to study the experiences of American businessmen in Latin America, perhaps to profit by them. Bearing all this in mind, you will want to make a careful examination of a recent book published by McGraw-Hill: "Industrialization of Latin America." This is a timely symposium on Latin America conducted by thirty business leaders from the United States and from Latin America. To businessmen, exporters, and leaders in all fields of industry and technology, this book provides a comprehensive, over-all picture of the present-day, Latin American industrial system from a practical point of view. It interprets and evaluates trade potentialities, analyzes economic trends affecting manufacturing activities, and attempts to anticipate the direction of future developments in diverse industries. With each specialist writing on his field, the following subjects are taken up in separate chapters: cement, chemicals, communications, fishing, food, leather, metal-working, mining, paint and varnish, petroleum, pharmaceuticals, power, publishing, pulp, paper and lumber, sugar, textiles, and transportation. The chapter "Mining Industries and their Industrialization" is particularly comprehensive, with nine men contributing their viewpoints. The concluding chapter of the book is written by Spruille Braden, Assistant Secretary of State of the United States. OTHER BOOKS ON THE SUBJECT: CUBAN COUNTERPOINT: TOBACCO AND SUGAR, by Fernando Ortiz, Knopf, 1947, P9.20. How tobacco and sugar have influenced life in Cuba. LATIN AMERICA: COUNTRYSIDES AND UNITED REGIONS, by R. S. Platt, McGraw-Hill, 1942, P9.60. An economic geography of South America. OPPORTUNITIES IN LATIN AMERICA, by Ralph Hancock, Essential Books, 1946, P6.90. Discusses opportunities for trade, industry, and investments. PAN AMERICAN ECONOMICS, by Olsen and Hickman, Wiley, 1943, P9.40. PAN AMERICAN YEARBOOK, 1945, by Pan American Associates, P11.00. Combined encyclopedia, almanac, and directory of trade and industry. THE PEOPLE AND POLITICS OF LATIN AMERICA, by Williams, Ginn, 1945, P12.50. A well-rounded history. DAVID MINSBERG will you find a) a (aI (a a flavor like that of... Bottled in the U. S. A. Fine Anerican Whiskey * Preferred throughout the Americas SOLE IMPORTERS SORIANO TRADING COMPANY AA M, R. S. BLI)G.-TEL. 2-79-61-MANILA I i I S. N. PICORNELL & CO. STOCK AND SHARE BROKERS MEMBERS-MANILA STOCK EXCHANGE 301 AYALA BLDG. CABLE ADDRESS: TEL. 2-66-79 "BROKERAGE" i. I - - -

252 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947 The ---- - LYKES ORIENT LINE REGULAR LINER SERVICE FROM U. S. GULF PORTS DIRECT TO MANILALOADING FROM PHILIPPINES TO U. S. GULF AND ATLANTIC COAST PORTS LYKES BROS. STEAMSHIP CO., INC. "LET YOUR HAIR DOWN" - Column ONE of the best compliments to the Journal and its fine company of regular contributors came from the head office of the National City Bank of New York during the past month. The Manila branch of the Bank wrote us: "With reference to our letter of September 4 and yours of September 6, 1947, regarding our New York Office subscription to your Journal, will you kindly arrange to have your next issues delivered to us for the attention of the undersigned? "Our Head Office has requested us to forward them by air mail. "Yours very truly, "E. J. CARVAJAL Pro-Manager" Apparently, the New York office of the Bank wants to receive each issue of the Journal as soon after it is out as possible. The cost of mailing a 40-page issue of the Journal to New York is P4. Of course, the Bank can afford this easily enough; still the managers there must think it really worth while to incur this extra expense. We also received a letter from the editor of Bus Transportation, "The Magazine of the Bus Industry", founded in 1922 and published in New York. He wrote that the McGraw-Hill World News Bureau had sent him L. D. Lockwood's article on bus transportation, published in the July issue of the Journal, and that he would like to reproduce this as a "feature" in his publication. He asked our permission for this and also for some photographs to illustrate the article. We turned the letter over to Mr. L. G. James, Judge Lockwood still being away. This reminded us of the Biblical bread, cast on the waters and returning after many days. One of the regular contributors to "The Business View" pages, in sending in his "copy" for this issue, wrote: "I am finding the Journal very interesting and look forward to it monthly." This, from a business man who, himself, by contributing, like some thirty others, a monthly "column", helps to make the Journal as interesting as it is! Many of these regular contributors, we have noticed, seem hardly able to get over a feeling of surprise at their own creation whenever an issue of the Journal comes fresh off the press, though this happens every month now. They are like the architects and engineers, masons and metal-workers, electricians, plumbers, and painters, who, working together, construct a fine building, and who can hardly believe that it was actually themselves who brought the noble and stately edifice into being. Truly, in this lies one of the deepest joys of human cooperation. To create, to construct, to organize, to establish, to improve, to embellish,these are the functions of man. They are rooted in instincts which, happily for the race, are far stronger than the instincts which tend to destructive action. That is why conflicts of all kinds between men, between classes, between nations, must ultimately cease. Secretary of State George C. Marshall, in speaking before the Congress of Industrial Oganization in Boston on October 16, made one statement in particular which can not be given too wide a circulation. It was this: "Everyone agrees, I think, that labor plays a vital part in the functioning of the 312 MYERS BLDG. PHONES 2-87-77 2-85-46 Tops in COMMERCIAL PHOTOGRAPHY (SEE US FOR ANYTHING PHOTOGRAPHIC) 1%milUalklip I I I I I m I Compliments of PETER PAUL PHIL. CORP. FACTORY OFFICE: CANDELARIA, QUEZON I Official Photographer of AMERICAN CHAMBER OF COMMERCE JOURNAL MANILA OFFICE: 338 REGINA BLDG. - - a

November, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 253 modern state. If labor can be confused or embittered, if labor can be made to lose faith in the community of which it forms a part, then the core of any national society is threatened... The enemies of democracy know this, and it explains the efforts they make to undermine the confidence of the labor element in the stability of our institutions and the soundness of our traditions... The hope and possibility of future gains for labor... are absolutely dependent upon the preservation of civil liberties... The present issue is simply... whether or not men are to be left free to organize their social, political, and economic existence in accordance with their desires, or whether they are to have their lives arranged and dictated for them by small groups of men who have arrogated to themselves this arbitrary power." This "Hair-Down" column is about the only part of the Journal which is not functioning just as we hoped it would, fairly readable though it may be. As we stated, when we began it, in the July issue, the column was to be open to very frank expressions of opinion on anything which had to do with business, including, for good measure, the business of living. Anyone bothered by anything was invited to come in and "let his hair down". The editor says that, contrary to his experience with the Philippine Magazine before the war, when, in a somewhat similar column, he could always pick from a large correspondence,-ideas on everything, arguments, objections, lamentations, kicks, he has so far received very little of that kind for this invitingly open space. One explanation is that the Journal is naturally more limited in scope than a literary-political monthly. It may be, too, that business men as a class are less articulate than most other people, or that they are more reserved, more restrained, more patient,-perhaps more cautious. Of course, we already have a good number of Manila business men writing regularly in their columns in "The Business View" pages. They unburden themselves there to some extent. But there should be others who have something on their minds or who want to get something off their chests, at least occasionally. We are not asking for "fan" letters, although an expression of approval and support now and then is very heartening. Nor do we think of ourselves as like some unhappy song-leader, on a stage, who is trying to get a reluctant audience to join in the singing. What we want is to get the readers of the Journal to exercise here their right of free speech. We want blows struck for the truth or what seems to the writers to be the truth. And from this column should arise not only bold declarations, but shouts of anger, sarcastic laughter, cries of pain, appeals for help. We want I I THAT WEARS LONGER THAN PREWAR TI RES! Long-wearing tread-its wider, flatter tread gives greater protection against skidding. 35% Stronger... The new tire has more and better cords, which give a tire body that is stronger, wears longer. Over 16,800,000 miles of tests under all conditions helped prove the new tire wears longer than prewar tires. L. I S. 5 ' *

254 AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1947, --— y- 25 AMRIA CHME OFCMEC ORALNvme.14 E. E. ELSER, INC. PHONE 2-77-58 I N S U R A N C\ E 404 AYALA BLDG. MANILA, P. I. CABLE ADDRESS: "ELSINC" I I sparks to fly from this column. We want it to be one of the first things the readers will turn to. Here, too, things do not need to be too closely reasoned, or always too seriously meant. Here is a place where our readers may assert themselves, have a good rowdy time, and relax, if they can. For example, at the risk of wrecking the Philippine cigar industry, and dangerously challenging Count de Churruca (who edits the "Tobacco" column), the editor would, here and now, lodge bitter protest against the agitation and the official action which is depriving him of what has recently been his favorite smoke,-the excellent, Americanmade, Army-surplus, Webster cigars, and which threaten to make further purchase of any other of these surplus cigars impossible. What the editor demands to know is why these surplus cigars, some of them of the best American brands, should go to the Chinese in China, who probably won't appreciate them, and be denied to us here. The cigars are here, where there is a demand for them. Why should they be shipped away? They were paid for and brought here by the American Army, with American tax-payers' money, and we are denied even these leavings. Is it true that there are so many of them and that they would continue to be offered in the market for so long a time, that the sale here would really do any serious or lasting injury to our tobacco and cigar industry? The editor smoked Philippine cigars for thirty years at the rate of at least a box a week, so he has done not a little for home industry as it is. He is now on the prowl for Websters, and anyone who has any for sale doesn't have to send them all the way to China to find a buyer. In closing, and in spite of the fact that the Manila Daily Bulletin on several occasions recently quoted from the Journal at length without giving us the usual credit (though this may have been done through over-sight), we wish to extend our heartiest congratulations to the publishers and staff members of that excellent newspaper for again having established themselves in a place of their own. The Roces papers deserve credit, too, for their hospi tality and assistance to the Bulletin until it could instal its own plant. That is the kind of cooperation even between "competitors" which makes one feel especially good about our so-called "competitive system". Robbed of P1,200,000!... in jewelry! And possibly the victim has been reduced to poverty "in 15 minutes!" There you are!... Real Estate is the SAFEST place for your Money... the SAFEST INVESTMENTI INVESTORS... HOME-SEEKERS act at once-TODAY! P6.00.. We still have and up homesites for sale in per sq.m. University, Espania, Quezon City, Camp Murphy, and New Manila. Lots: 300 to 5000 sq. m. Only 20% down-the rest payable in monthly installments. MAGDALENA ESTATE, INC. 211 Consolidated Investment Bldg. Plaza Goiti, Manila EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines FERN LINE To and From North Atlantic Ports Gulf Ports Philippines EVERETT ORIENT LINE Serving the Orient PHIL. STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmarifias St., Manila Tel. Overseas 2-87-92 frel. Interisland 2-63-82 Tel. Executive 2-97-38 C. F. SHARP & Company, Inc. STEAMSHIP AGENTS OPERATORS SHIP BROKERS GENERAL ORIENTAL AGENTS: THE WATERMAN STEAMSHIP CORPORATION MOBILE, ALABAMA, U.S.A. THE IVARAN LINES-HOLTER-SORENSEN OSLO, NORWAY PACIFIC ORIENT EXPRESS LINE SAN FRANCISCO GENERAL STEAMSHIP CORPORATION SAN FRANCISCO SIMPSON, SPENCE & YOUNG LONDON-NEW YORK GENERAL AGENTS: THE REARDON-SMITH LINES CARDIFF, WALES THE SHEPARD STEAMSHIP CO: BOSTON, MASS., U. S. A. BRANCH OFFICES: UNION BLDG. ROOM 209 P. O. BOX 558 DOLLAR BLDG. SINGAPORE 51 CANTON RD. S. S. SHANGHAI, CHINA 33 CHINA ST. CENTRAL TOWER GAUT 703 MARKET ST. PENANG SAN FRANCISCO S. S. CALIFORNIA, U.S.A. HEAD OFFICES: 5th FLOOR, INSULAR LIFE BLDG. MANILA, PHILIPPINES TEL. 2-87-29 CABLE ADDRESS: "SUGARCRAFT"

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SEP 7 18 THE AMERICA|^6^^1|^F COMMERCE J xA~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r Published monthly in Manila by the American Chamber of Commerce of the Philippines Fifth Floor, Insular Life Building Telephone No. 2-95-70 A. V. H. Hartendorp Editor and Manager Entered as second class matter at the Manila Post Office on May 25, 1921, and on December 10, 1945 Subscription rate: P5.00 the year; $5.00 in the United States and foreign countries Officers and Members of the Board of Directors of the American Chamber of Commerce of the Philippines: Frederic H. Stevens, President; John L. Manning, Vice-President; Fay C. Bailey, Treasurer; E. G. Baumgardner, Max Blouse, John F. Cotton, Samuel Garmezy, G. C. Miller, and J. A. Parrish. Leon Rosenthal, Executive Vice-President: I. T. Salmo, Secretary. Vol. XXIII December, 1947 No. 8 Contents EDITORIALSThe "Flag-Materials" Law — ~~259 The Labor-Management Conference -------— ~ — 260 Simplification of International Trade Documents ------------ 261 The Krivenko Case ---— ~~~- ~~~ 261 The ECAFE Conference - - - — ~ — - - - - - -261 Rehabilitating the Petroleum Industry --- --- -- - N. E. JOHNSON - - - - 262 Present Status of the City Planning Program - -— L. P. CROFT ---- - 264 1947-'48 Program of the U. S. Public Roads Administration, Philippine Division F. C. TURNER - - - - 267 The Business ViewOffice of the President ---------------- Official Source - - - -- 268 Banking and Finance -------------- - C.R. LEABER ----- 268 Stock Market ------------— A. C. HALL - - - - - 269 Electric Power Production -------- J.F. COTTON - - - - - 269 Real Estate ------------------ C.M. HIOSKINS - - - -- 269 Construction -------------— H.- - H. KEYS - - - - - 270 Port of Manila ------------------ H.W. TITUS - - - -- 270 Ocean Shipping -F --- —------- - -. M. GISPERT- - - - - 271 Inter-island Shipping ---------------- D.M. CAMERON - - - - 271 Air Transportation - ----------- --- V.A. BRUSSOLO - - - - 272 Land Transportation (Bus Lines) -------------- L.G.JAMES- - - - - - 272 Gold (The Philippine Mining Law) ------- - C.A. MITKE - - - - - 273 Lumber -------------— E. C. VON KAUFFMANN - - - 274 Copra and Coconut Oil ------- M. IGUAL AND K. B. DAY - - 274 Desiccated Coconut - --------------- H.R. HICK - - 276 Sugar --------- G.G. GORDON- - - - - 277 Manila Hemp ----------------- M. COOK ------ 278 Tobacco ---------- CONDE DE CHURRUCA - - - 278 Machinery (Expressers) - --— ~-J. CARPENTER - - - - - 279 Automobiles and Trucks --— ~ - J.L. MANNING- - 280 Food Products ---------— G.G. MILLER - - 280 Textiles - J.TRAYNOR -— 281 Drugs, Health Supplies, and Toiletries (Penicillin) ------— F. A. DELGADO - - - - - 282 Legislation, Executive Orders, Court Decisions ----- -- - R. JANDA- --— 283 Philippine Government Corporations ------------- Official Source- - - - - 285 Labor- ~ — - - - - - - - Official Source - ~287 Cost of Living Index — ~___- Bureau of the Census and Statistics 287 Philippine Safety Council --— ~-F. S. TENNY - - - -- 288 Other Chambers of CommercePhilippine Chinese General Chamber of Commerce- - - - - - - - - YANG SEPENG - - - - - 288 Manila Chamber of Commerce -S ----. CRAWFURD - - - - - 289 Spanish Chamber of Commerce of the Philippines- - - - - - - - - J. M. ROSALES - - - - - 290 Business Book Reviews -D --- —--. MINSBERG - - - - 298 The "Let Your Hair Down" Column - - — _- -- 299 Index, 1947 - - 302 50 centavos the copy

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THE AMERII COMMERCE Editorials The so-called "Flag-Law" or "Flag-materials Law" (Commonwealth Act No. 138) approved November 7, 1936, during the first year of the The "Flag-Law" Commonwealth, had the support of the American Chamber of Commerce of the Philippines. As in part abrogated by Republic Act No. 76, which took effect on October 21, 1946,-three months after the establishment of the Republic, this Chamber is opposed to it, and not only for reasons of self-interest. An earlier, and the first, flag-law here was Act of the Philippine Legislature No. 3967, effective December 2, 1932, which provided for a 5% advantage to goods of Philippine or United States origin purchased for public use, without classification as to bidders. This Act was superseded by the Public Law 428 of the 72nd Congress, effective March 3, 1933, and subsequently made applicable to the Philippines, which provided only for preference in government purchases for goods of the growth, product, or manufacture of the United States, also without classification as to bidders. This law was continued in force under section 15 of the Tydings-McDuffie Act until it was replaced by Commonwealth Act No. 138. The Act of 1936 provided that, subject to certain conditions, the Philippine Government in its purchases of materials for public use should give preference to such as were produced or manufactured in the Philippines or in the United States. In case of public bidding, government contracts were to be awarded to the lowest domestic bidder provided his bid was not more than 15% in excess of the lowest foreign bid in purchases involving P2000 or more; for smaller government purchases, the advantage was graduated up to 100% for purchases involving not more than P 2. This law is still in effect but with the important difference that the specified advantages have been abrogated in so far as American citizens and business entities are concerned. This was done through Republic Act No. 76, which took effect, as already stated, shortly after the establishment of the Republic. The law declares in part: "Existing laws or the provisions of existing laws granting privileges, rights, or exemptions to citizens of the United States of America or to corporations or associations organized under the laws of the states of the United States of America, which are not enjoyed by citizens or nationals of any other foreign state or by corporations or associations of such state, are hereby repealed unless they affect rights already vested under the previsions of the Constitution or unless extended by any treaty, agreement or convention between the Republic of the Philippines and the United States of America." The so-called "parity" amendment to the Philippine Constitution, adopted during the first year of the Republic, provides for equal American rights only in the development of the natural resources and the public utilities of the country, and does not offset Republic Act No. 76. Article VI of the Treaty of General Relations between the two countries, signed on July 4, 1946, (the independence date), continues and protects all property rights of United States citizens and corporations in the Philippines, but this provision could be invoked against Act 76 only if the former advantages to American goods and bidders under that Act were construed to constitute "iproperty right". Article X of the Agreement between the two countries Concerning Trade and Related Matters, also signed on July 4, 1946, provides that the President of the United States has the right to terminate the Agreement on six months' written notice if he finds that"the Philippines or any of the political subdivisions of the Philippine Government is in any manner discriminating against citizens of the United States or any form of United States business enterprise..." but this provision could be invoked only if non-discrimination is interpreted to mean equal treatment with Philippine goods and interests rather than with the goods and interests of other foreign countries. T here are good precedents for the enactment of flag-laws, both in the United States and other countries, and no apology need be made for them whether in principle or in practice, though of course they run counter to the ideas of those who favor a freer international trade. Nevertheless, the enactment and enforcement of flag-laws are everywhere, and may rightfully be, based purely on national interest. There was good reason for the enactment of the first two flag-laws here, and there may be good reasons for reviving the flag-law of 1936 as originally drawn, although this would seem to be less necessary in these post-war years than it was at that time. And if, after the establishment of the Philippines as an independent nation, "parity" between American and Filipino citizens and enterprises is justifiable with respect to the development of natural resources and public utilities,-as this most certainly is, than there is hardly good reason to bring up the point of equality with the nationals and business entities of "any other foreign state" with respect to government purchases. 259

It is obvious that the relationship between the United States and the Philippines and between Americans and Filipinos, remains a special relationship, both despite and because of Philippine independence. Probably for many years to come the Philippines will continue to loolk to America for aid in various ways, while the Philippines will remain a focus of American interests in respect not only to trade but to strategy and the advancement of democratic civilization. This is a special relationship from which mutual benefits may well be drawn, and which must be mutual if the relationship is to prosper. The Philippines is making its appeal in many different forms for the capital it so urgently needs for the further development of the country. But conditions exist here, in several cases due to unwise laws, which will largely frustrate this effort if these conditions are not corrected. Placing American capital and enterprise at any disadvantage at all in any field, is most woefully shortsighted and wholly contrary to the real national interest. The Flag-Law of 1936, as amended last year, is one of those unwise laws because the amendment abrogated what was in effect its most essential feature. The original law, including American citizens and entities among its beneficiaries, shut out only relatively minor foreign interests here, and for good reason especially as it affected the then growing Japanese interests, but, as amended, the law shuts out all foreign interests including the American. That constitutes a flat discouragement of capital investment and business enterprise which is of well-near blanket-coverage. The present Flag-Law discriminates not only against the Filipinos' staunch American partner in the matter of the merchandising of imported goods, which is unwise enough in itself, but also in the matter of the sale of goods produced in the Philippines by American entities here. American entrepreneurs can not but be daunted at the very beginning of their consideration of any contemplated business venture in the Philippines, by the prospect of a 15% disadvantage, even if this applies only to sales to the Government.* Government sales bulk large in the total sales in the Philippines and will probably continue to do so. Fifteen percent is no small handicap. The absurdities to which the present Flag-Law leads, may be illustrated by the situation in which the projected Philippine Electrical Manufacturing Corporation may find itself. This corporation will be established under the auspices of the Government in agreement with Westinghouse International. It has been announced that Westinghouse will invest P1,000,000 in the form of machinery and equipment, P1,500,000 will be supplied by "local capital", P500,000 will be 'subscribed by the National Development Company, and a P1,000,000 participation will be offered to the public through a bond issue,total, P4,000,000. But Westinghouse is an American corporation, and its share alone will equal 25% of the total. If any American capital is included in the "local capital" (P1,500,000) and in the capital to be raised through the bond issue, as very easily might happen, then this Corporation, despite the initiative the Government has taken in its organization and despite the government interest in it, would not be able to sell its electric-light bulbs or any other of its manufactures to the Government or any government corporation or institution without pricing them at least 15% below what some ordinary "domestic" importer would offer the like for! * An understanding exists through a ruling of the Philippine Secretary of Justice that the Flag-Law does not apply to the procurement of rehabilitation materials and the awarding of construction contracts if these are to be paid for in whole or in part from funds appropriated by the American Congress. The basis of this ruling is that the law was intended to embrace only public improvements undertaken exclusively by the Philippine Government or its subdivisions or agencies and hence is "inapplicable to the activities contemplated in the Philippine Rehabilitation Act of 1946 which are to be financed exclusively ty the United States Government or jointly by it and the Philippine Government". Also: Today, if, for instance, one of the large government corporations, like the Cebu Portland Cement Company, wishes to buy machinery, it can not buy from the established local agency of the American manufacturer, which is often a prominent engineering firm able to render technical advice in the buying and to extend future engineering service, but it must buy from some local Filipino dealer (or some dealer who has Philippine citizenship papers), who himself may buy from the American agency, but adds 15% to the price! In such cases, the whole people, through their taxes, pay to subsidize the business of a few such happily-placed supernumeraries. protection of home-industry is generally warranted, and perhaps the Flag-Law could be amended to permit of this without sacrificing the country's vastly more important national interests to the purely personal interests of a small number of local citizens who are merely middle-men after a rake-off. Distinction, perhaps, might at least be made between locally produced and manufactured goods, regardless of the nationality of the bidders, and imported goods; but any and all discrimination against Americans and American entities is already now most damaging to Philippine interests and will prove to be more so as time goes on. If no corrective action is taken with respect to the Flag-Law as it stands, it would be only common-sense to scrap it altogether. Secretary of Labor Pedro Magsalin made the constructive proposal in a press-release issued some months ago that a series of LaborThe Labor-Management Management conferences be Conference held under the auspices of his Department where various matters affecting labor and management could be frankly discussed. He declared that the Administration was doing its utmost to promote the advancement of the country through industrialization, but that this called for "complete understanding and agreement on certain vital points" between labor and management in order to avoid the disruption, the capital and time loss, and the suffering from unemployment resulting from the conflicts which have accompanied industrial development in many other countries. He suggested that agreement might be reached on minimum and maximum wages, graduated according to the skill, efficiency, and length of service of the wageearners, and adjusted to the current cost of living; agreement, also, on ample opportunity being given for the application of remedies and for a possible sixty-day "coolingoff" period before a strike or a lock-out would be declared; and agreement, further, on a procedure of submitting disputes to the Department of Labor for mediation and amicable settlement, if this should prove possible, before recourse would be had to the Court of Industrial Relations. The Secretary next wrote to various business and labor organizations, including the American Chamber of Commerce of the Philippines, asking for their cooperation. This Chamber replied there was no doubt that its members would welcome an opportunity to attend such a series of conferences when held. In a second letter to the Chamber, the Secretary of Labor expressed his appreciation of the Chamber's endorsement of his plan and said that he had received so many favorable responses from all sides that he thought it time to "start the ball rolling" by creating a preparatory committee to make the preliminary plans for the conferences, this committee's recommendations to be subject to the final approval of the conference members themselves. He proposed that the committee be composed, on the part of Management, of two representatives of the Chamber of Commerce of the Philippines, one represen 260

tative each of the A-merican and Chinese Chambers, one representative of Spanish firms here, and two more to represent concerns not members of any chamber of commerce. He said he would later arrange with the other members, the designation of the two men who would represent these unaffiliated concerns. The Secretary further wrote: "I wish to emphasize that the conference will be strictly a LaborManagement affair. The delegates to the conference will have the sole responsibility to decide upon what they deem just and wise. My only concern is to furnish the representatives of Labor and Management the opportunity and facilities for frank, open, and sincere interchange of views to clear the ground for basic understandings toward the solution of urgent and vital problems affecting labor and industry. "The conference will have opportunity to make far-reaching decisions. I have high hopes that it will prove a turning-point in the history of labor-management relations in the Philippines. I feel that the conference not only could make arrangements to relieve the distress and difficulties which we meet in the present situation, but that it could also provide long-term arrangements to ensure industrial peace in the future. If we could at this time lay the basis for sound industrial relations, we may yet avoid the harmful conflicts that have characterized the industrial development of many countries whose experience should serve as a valuable lesson to us." The Board of Directors of the American Chamber of Comrnmrce hereupon unanimously voted to ask Mr. F. L. Worcester, of the Philippine Refining Company, Inc., to represent the Chamber in the coming conferences, Mr. Worcester having had considerable experience in the conduct of labor-management relations. Notified of his designation, Mr. Worcester in a letter to the Board said that he felt himself honored by the appointment and that he was glad to accept because he had long been interested in the problems to be discussed; he stated that he would do his best to represent the Chamber adequately. We have no doubt that good will come of these conferences both for labor and management and the country as a whole, though, naturally, no decisions or arrangements could be arrived at which would be binding on the various entities represented or on their memberships. Wise and just recommendations, however, may well be looked forward to and may conme to be generally endorsed and acted upon. The Secretary of Labor is to be praised for his constructive leadership in this important matter. A long title for anything, but worth noting: "Report of Committee of Experts on the Simplification of Formalities in International TransSimplification part of Goods",-a report recentof International ly published by the International Trade Documents Chamber of Commerce, Inc., of New York. The recommendations contained in the Report should be especially valuable to the authorities of the Philippine Government who were or are concerned in the laying down and in the adjustment of the procedures established for Philippine consular offices abroad. However, there is not a government trade authority in the world which could advantageously disregard these recommendations, or people of any nation who would not profit hugely from their application. The recommendations: (1) Elimination of superfluous documents in the international transport of goods. Necessary governmental and chief commercial purposes should be served by three main documents: (a) Commercial Invoice, standardized in form; (b) Packing List, wherever necessary (it is obvious that bulk goods, such as grain, would not require a packing list); (c) Bill of Lading, the short form. (2) Adoption by government of a favorable and friendly attitude toward the greater freedom and development of trade and the taking of steps to foster this spirit on the part of government officials on all levels, including those who come in contact with the day by day transactions of international commerce. (3) Abolition of consular invoices and certificates of origin as separate documents. We believe the information required on consular invoices and certificates of origin can be and should be obtained from extra copies of the recommended commercial invoices and the usual packing list. (4) Abolition of consular visas and commercial association certifications for invoices. Such visas and certifications apparently perform no real purpose. The expense involved in making out consular invoices include not only filling out forms, but the time of someone visiting consulates to leave invoices for visaing and the time of a second visit to pick up the invoices after they are visaed and, in many cases, long delays in both visits. These hidden expenses and delays are unnecessary and constitute burdens on international trade. (5) Elimination of the requirement by some governments that certain forms be filled out for aiding them in the compilation of export and import statistics. We believe this information can and should be obtained by governments from extra copies of the commercial invoice and packing list. (6) Abolition of government regulations which require the shipper to attempt to classify his goods under specific sections of customs tariff laws of the importing country or to give valuations other than his own. Making such classifications or securing such information we believe is a function of government and should not be placed on traders who in many instances can be penalized if their statements do not agree with the opinion of a government official at the destination of the shipment. (7) Adoption of standardized weight-markings on packages and related documents. All such weights, preferably, should be according to the metric system. (8) Progressive relaxation of foreign exchange and commodity controls and their complete abolishment at the earliest possible moment. It is understood that in the present unsettled state of world affairs, economic conditions in many countries make it impracticable to abolish all such controls immediately. In Mr. Janda's and Mr. Hoskins' articles in this issue of the Journal, under the column heads, "Legislation and Court Decisions", and "Real Estate", The Krivenko respectively, readers will note two Decision different "reactions" to the recent Supreme Court decision in the Krivenko case which interpreted the Constitutional provision prohibiting foreigners from acquiring agricultural lands to mean that they may not acquire even small tracts for industrial, commercial, or residential purposes. The case is still before the Court for review, and comment in these pages will be withheld until a decision is made final. The at least potentially important Baguio conference of the United Nations' Economic Commission for Asia and the Far East, which opened November 24, ECAFE is, at this writing, still in progress. We hope to publish a summary of the results of the conference, with a commentary, in the next issue of this Journal. 261

Rehabilitating the Petroleum Industry By N. E. Johnson EManager, Operations Department, Standard-Vacuum Oil Company M ORE than three years after the outbreak of the war and pursuant to a communication from General MacArthur's Headquarters addressed to the Army and Navy Petroleum Board, Washington, D.C., under date of March 7, 1945, and with the sanction of the President of the Philippine Commonwealth, the Petroleum Distribution Association of the Philippines (PDAP) was organized and staffed by the oil companies which had carried on business in the Philippines prior to the war, for the purpose of making petroleum products available for civilian use on a non-profit basis. The following oil companies participated in the organization and conduct of the Association, contributing staff, materials, and equipment free of charge: Standard-Vacuum Oil Company Shell Company of P. I., Ltd. Caltex (Philippines) Inc. Tide Water Associated Oil Company Union Oil Company of California Petroleum products at that time were imported by the United States military authorities, and although the supply for civilian needs was extremely limited due to military requirements and insufficient storage-facilities, what was available was distributed by PDAP, to the best of its ability, to the most essential users, such as the fire and police departments, the Bureau of Public Works, the hospitals, and the various transportation companies. After the liberation of Manila and up to around May 1, 1946, the United States Army occupied the oil companies' terminal sites at Pandacan. As ground was released, the oil companies immediately began cleaning up the area and removing the hundreds of tons of twisted iron and steel, and other miscellaneous war-debris, and bolted tanks of 5,000- and 10,000-barrel capacity were erected as quickly as possible. All this was done in order to get petroleum products into the Philippines and to relieve the acute need of them both for transportation purposes and for the general rehabilitation. The black market in these products had reached an alarming stage and it was felt that the situation had to be met. At one time the oil companies had a total of over 200,000 barrels of storagecapacity, all in bolted tanks. This is mentioned, as these tanks have a very short term of life and within a year or two will probably all have.been replaced by modern welded tanks, the bolted tanks being written off as worthless. Reproduction of an aerial photograph, taken at 500 feet altitude, of the new Oil Terminals at Pandacan, Manila Entire left and lower right, Standard-Vacuum Oil Company; upper right, Shell Company of P. I., Ltd., upper center and right toward the river, Tide Water Ass-ciated Oil Company; Caltex (Philippines) Inc., just below the latter. 262

But by August, 1946, the black market in oil was broken and has remained broken to this day. During the long period of the Japanese occupation, the home offices of the oil companies whose facilities here had been destroyed, were not idle. Engineers and draftsmen were placed at work, and from their drawing-boards emerged the plans for the new and modern plants that are now well on the way to completion. Orders were placed for steel for tanks, warehouses, garages, and the numerous buildings required in the terminal of today. In addition to steel, which was and is still in great demand, were the hundreds of other items required to bring this business back on an efficient operating basis, such as tank-trucks, tug-boats, barges, engines, generators, pumps, pipe, service-station equipment, storehouse materials, filling and cleaning equipment, can-plant machinery, etc. The problem of the acquirement of these items, and the long delays due to strikes in the United States and shortage of shipping-space, made the delay and the suspense almost heartbreaking at times. There was also the problem of providing sufficient outlets to properly meet the requirements of the general public. It is safe to say that the majority of service-stations in Manila and throughout most of the provinces as well, were destroyed. The cost of building and reconstruction materials had climbed to fantastic heights, but regardless of the expense entailed, it was felt necessary to proceed with the reconstruction of service-stations to enable the oil companies to render the service so necessary for a return to normal conditions. Due to the foresight of the parent organizations abroad, which placed advance orders for steel and other materials, a large part of the total requirements has either already arrived in Manila, is now afloat, or is due to arrive shortly, and the rehabilitation of the entire oil industry here is now well on the way to completion. The tanks erected or under construction at Pandacan by the oil companies have a combined capacity of 1,170,000 barrels, or over 186,000,000 liters. The total steel required for the tanks alone was well above 5,000 tons. In order to properly handle and distribute the enormous quantities of bulk products, it was also necessary to construct some 24 kilometers of pipelines, the diameters ranging from 3 to 12 inches. Three reinforced-concrete piers and five creosoted-pile jetties have also been completed or are under construction. To provide storage-space for the large quantities of various petroleum products required to be maintained in drums, barrels, and tins, warehouses have been constructed with an area of approximately 250,000 square feet. Most of these buildings have concrete foundations, steel frames, and either fireproof asbestos or sheet-steel coverings. An estimated 2,000 tons of steel were consumed in their construction. In addition to warehouses, many miscellaneous buildings have been built along the same lines. These are used for garages, filling buildings, machine shops, carpenter shops, blacksmith shops, welding sheds, paint shops, power houses, general storehouses, office buildings, pump houses, Terminal Managers' residences, employees' recreation and rest buildings, and many other purposes. Concrete and earthen firewalls have been'constructed around all tankage to minimize fire-hazards, and adequate fire-fighting facilities are being installed by"all companies. (Continued on page 294) *- `` " -1`1~11~11 ---------— ~ --- —-~-C II~~~ — ~ --- —- — ~- ~~I. ---~rl~ ~-~~-P~-~ —~-~-l~~~ ~~II~~~~~ ~~~ -~~~r~~~)-~:~-~~ ---- - r 111~: -.. ~~~-~- ~:,:_~:.l~l~~::.:~C~~~~I~L-:~~: —i~2-~:l_ rl -: ~-~:~~~~~ ~~~~~ --- ~ -- ~:~:~ ~~;~:~ - - ~;. ~'~.;.~ '~:::: i::::........~~ ~:`...::. 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I ~:.~~ ~ ~.~ ~~~~~..rrl':I:.i:."`'I i ~ ~~ ~ ~ `.: ~,~t ~:ii.i 'i.;'~:~~~:~; 111; i;...a:::~..::.:.;~I:c,~:~.i ~~; ":;::: ~~.~~~~ ~; i... ~~.... ~ 5 1.i I '' "":Z.,.N Reproduction of another photograph, taken at 1500 feet, showing the Pandacan Oil Terminal within a loop of the Pasig River. In the foreground, the Manila Railroad Bridge, on the Main South Line; lower right-hand corner, the Findlay-Millar Timber Company plant; middle right, across the river from Pandacan, the buildings of the National Development Company. Barrio Santo Nifio in the center foreground. 263

Present Status of the City Planning Program By Louis Acting Director, Urban S INCE Daniel H. Burnham prepared the Plan of Manila in 1905, the City has followed the major suggestions as then set forth. The Burnham Plan was good in its day-it was an important factor in making Manila one of the fine cities of the Far East, but the best of city-plans must be kept up-to-date. Constant vigilance and frequent revision by a pernranent planning commission are necessary if such planning is to be successful. Current zoning ordinances, subdivision regulations, and building codes must be vigorously enforced if a city's growth is to be sound. The city departments of health, education, police, parks, playgrounds and recreation must be strong and active in support of the plan-in turn receiving full backing of the municipal authorities and the peopleif the city is to continue to function properly. In 1905 no one could foresee the traffic problems and the commercial and industrial developments which have grown with Manila during the past half century. These same problems have driven other cities to drastic action. In many cities business men, philanthrophists, educators, social workers, and civic-minded individuals generally are meeting the challenge of the automobile, the factory, and the tenement, which threaten destruction of decent living in many cities. These people are convinced that this need not happen. The same determination and driving force must be organized among the people of Manila if this City is to develop as it should. On May 3, 1941, a large section of the problem-area of Tondo was again burned to the ground. President Que P. Croft Planning Commission zon ordered the then National Park Office, which contained most of the Filipinos trained in planning, to prepare a plan to rebuild this area, which had periodically suffered this same form of disaster. But the planning of Tondo or any section of a city is difficult without considering the entire metropolitan and regional area. It was soon decided that comprehensive plans for the whole of greater Manila should be prepared. These plans were in progress when the war broke out in December, 1941. After liberation many saw the opportunity to rebuild Manila according to a definite plan, and President Osmefia re-established the National Park Office as the Planning Office. Work began from scratch, since most of the records had been burned. Pencils, papers, drafting instruments and boards, and other supplies were not available. But planning went on. In addition to the old personnel and some new men, six officers of the United States Army and Navy, planners in private life, were lent to the Planning Office. Supplies, equipment, and means of transportationwhere these could not be procured from commercial firmswere made available by the Armed Forces. Major Carrara was responsible for most of this much needed help. His assistance in preparing the models for Manila and Cebu facilitated these important phases in the planning of the two cities. T ie first task the Planning Office tackled was that of completing the Major Thoroughfares Plan, which covers Metropolitan Manila from Nichols Field on the south, to the Bulacan-Rizal Boundary on the north and the Marikina Valley ak } on the east. This arterial-highway:.. plan was prepared in cooperation with the Bureau of Public Works, X/,' / < ithe City Engineer, and other govern-...../ I ment and private agencies. It was.< B " ".- + approved by the Secretary of Public Works and the President on June As. iP13, 1945.:..;..?: ^^ As shown in Plate 1 the high ~11 4y Lg*RM** 0~MIS WUWI mQ~. I- C. s - — b.;-""/ ~i, 4:,; I. 5(~'kLV(I~ Q.d;~dft&3j[$]::iSl ~~fi ~~-d, ~~ a "i"ll, -t' - iC 8\1, i a. *b I~ ~ tI8. -.3~.s)t"$: )ZI q ,.3 5` a f ~r a j **~~.;pL r F a P ~, 8 ~ ~ ways of the Major Thoroughfares Plan form a large half spider-web. These thoroughfares include three main north-south routes: first, Dewey Boulevard and its extension to the North Harbor; second, Taft-RosarioManuguit; and, third, a new street running north and south on the west side and parallel to the Manila Railroad tracks. These three highways will serve the heavy traffic from Central Luzon to the north and the Batangas-Laguna-Tayabas region to the \ south. Radials to Novaliches, Quezon N City, Marikina, Antipolo, and Pasig will provide vehicular access to Metropolitan Manila when and as it expands to the east. Five belt-routes or circumferentials - including the present Highway 54 - complete the spider-web. It is proposed that for these major thoroughfares be designated as national roads with a right Map showing the major existing and proposed thoroughfares, and the parts of Manila which the preliminary plans have been completed and approved. 264

of-way of from 30 to 50 meters. All modern features of highway design, such as center-strips, limited access to abutting properties, no crossings at grade, and other freeway principles will be incorporated into the development of these thoroughfares. The Major Thoroughfares Plan not only provides a network serving the entire metropolitan area but forms the broad outline for residential communities and their subdivisions into neighborhoods, one of the great steps forward in City Planning. In addition, the Major Thoroughfares Plan furnished a basis upon which to lay out masstransportation trunk lines, sewer and water and gas mains, and telephone and electric main lines. The task of assembling and gathering data and research so necessary in city planning, has been very difficult due to lack of funds, personnel, and the destruction of records. In- spite of these handicaps, considerable progress has been made in collecting information on land-uses, condition and kinds of buildings, assessed property values, location of water, storm, and sanitary sewers, gas, electric, and telephone lines, location of markets, fire stations, airfields, health centers, schools, churches, and playgrounds. The importance of making a real-property inventory was realized, but under the circumstances the thought of undertaking this enormous task had to be given up. It is hoped that such an inventory can be made later to guide future planning. WXjith the cooperation of the Planning Office, and particularly that of Clifton Rogers and C. McKim Norton, and several civic-minded private individuals, the Metropolitan Manila Planning Association was incorporated June 9, 1945. Its membership includes leaders in business and industry, and in various social and cultural groups. Among the principal aims of the Planning Asso ciation are: "to stimulate public interest in planning and planning-procedures; to educate citizens of Metropolitan Manila in the planning process; to explain and interpret official plans to the public." Although this Association has been more or less inactive, this and other organizations should and must channelize public opinion and exert effective pressure if Manila is to become the city which it deserves to be. Neither the planners nor the Government can accomplish what should be accomplished without the vigorous cooperation of the whole population. The first session of Congress after liberation passed a bill creating a National Planning Commission to coordinate all the planning activities heretofore carried on by different government agencies. The drafting of this bill was largely the work of Mr. Norton, of the New York Regional Planning Association. The bill was vetoed by the President on the ground of a technicality,-the unconstitutionality of the provision making the chairmen of the public works committees of the Senate and the House members of the Commission. However, thfe immediate necessity for legalized planning led to Presidential action. Executive Order No. 98, signed March 11, 1946, embodies practically the whole of the vetoed bill. While the Planning Office was pushing the planning bill, it also initiated congressional action for the recreation of the National Housing Commission, which had been authorized on June 16, 1941, by the approval of Act No. 648. The members were appointed, after the war, on September 17, 1945. A new housing bill with a P5,000,000 appropriation was passed by Congress on November 1, 1945. A housing report, "Toward a Housing Program for the Philippines", was prepared by Nicholas J. Demerath and Richard N. Kuhlman, two of the six planners from the Armed Forces........, I Map showing proposed land uses of Down-town Manila-Latest revision 265

DTuring 1945 the Planning Office also worked for the revision of the Building Code. A committee headed by a representative of the Department of Public Works drafted the much-needed revision of this important tool for the development of Manila. Once the Building Code is adopted it can serve as a model for the other cities and towns of the Philippines. ' The Planning Law directed the Planning Office"to prepare general plans, zoning-ordinances, and sub-division regulations, to guide and accomplish a co-ordinated, adjusted, harmonious reconstruction and the future development of urban areas which will, in accordance with present and future needs, best promote health, safety, morals, order, convenience, prosperity, and general welfare, as well as efficiency and economy in the process of development; including among other things, adequate provisions for traffic, the promotion for light and air, the promotion of healthful and convenient distribution of populations, the promotion of good civic design and arrangement, economic, wise, efficient and equitable expenditure of public funds, and the adequate provision of public utilities and other public requirements." ACommittee on Zoning, headed by the Zoning Administrator of the Planning Commission, immediately began studying necessary revisions of the Zoning Ordinance. Later, representatives of the City Fiscal's Office and the City Engineer's Office, the chairman of the Committee on Public Works of the Municipal Board, a representative of the Manila Realty Board, a practicing architect, and a Regional Planner were to spend many hours on an intensive study of the existing and proposed zoning ordinances before submitting their new draft to the Planning Commission. After the Commission approves this Zoning Ordinance it will be submitted to the Municipal Board for adoption. Prior to the creation of the National Urban Planning Commission, which is empowered by Executive Order No. 98 to frame subdivision regulations, Ordinance No. 2843 of the City of Manila, approved on December 18, 1940, was in operation. Sales and leases of building-sites or lots were regulated by this Ordinance in so far as the construction of streets and the filling up to grades were concerned. The Bureau of Lands as far back as April 1, 1925, issued a "Manual of Regulations Governing Land Surveys" which covered subdivisions of proposed government townsites. On December 7, 1928, a legislative act (No. 3482) was passed. This Act clarified the functions and powers of the Director of Public Works relative to the planning of cities and municipalities. A committee to frame the new "Subdivision Regulations" which will be one of the principal tools of the present planning authorities, was created by the Commission. In this committee the Bureau of Lands, the Bureau of Public Works, the Metropolitan Water District, the City Engineer, and the Manila Realty Board are represented. The draft of the regulations is practically complete and will soon be sent to the Municipal Board for consideration and approval. The objectives of these regulations are: (1) to have all proposed subdivisions conform to a general plan for a city or town; (2) to raise the standard of subdivision practice in the Philippines by guiding and encouraging developers to follow what technicians believe to be sound principles of design in matters relation to street layout and widths, provisions for recreational areas and school sites, lot and block sizes, shopping centers, etc., and (3) the use of" neighborhood units" whenever and wherever this is practicable. On July 12, 1947, upon recommendation of the Planning Commission, a Real Property Board was appointed by the President "for the purpose of attending to the var ious problems involving private real estate arising from the formulation and execution of the planning of the City of Manila by the National Urban Planning Commission." The Board has the following functions: "1. To gather all available data relative to lands of the public or private domain of the National Government and those of the City of Manila, including actually abandoned rights-of-way of existing streets and those proposed to be abandoned, which lands may be ex changed with privately-owned lots needed for public purposes in connection with the planning of the City of Manila; "2. To gather the existing assessed values and to ascertain the market-values of such government-owned lands as are mentioned in the next preceding paragraph hereof, and to consider all factors affecting the proper appraisal of the lots proposed to be exchanged or to be purchased; "3. To conduct the necessary negotiations leading to the acquisition of privately-owned lands by exchange or purchase, and to recommend, through the National Urban Planning Commission, to the President the expropriation of any of such lands when all efforts at extrajudicial acquisition thereof fail. "The Committee is hereby empowered to call upon any department, bureau, office, dependency, agency, or instrumentality of the Government for such assistance, data, and information as it may need in carrying out its functions. For this purpose, it shall have access to, and the right to examine, the books, documents, papers, or records of such private party, firm, corporation, business house, or enterprise as may be affected by, or interested in, the exchange, expropriation, purchase, and sale of any private land in connection with the execution of the planning of the City of Manila. " The Committee shall proceed at once in accordance with the provisions of this Order and shall submit to the National Urban Planning Commission a report of its work from time to time, or as the circumstances of each case may require." After the Major Thoroughfares Plan was approved, it was deemed advisable to tackle the planning of Manila by sections, beginning with the down-town area bounded by Zurbaran on the north, Quezon Boulevard on the east, the Pasig on the south, and Estero de la Reina on the west. It will be noted on the Down-town Area Plan that every effort has been made to provide major thoroughfares around the congested commercial section. Quezon Avenue, Azcarraga, Rosario, Reina Regente, and the boulevard along the north bank of the river become the important perimeter streejs. It has been proved that,.heavy arteries passing through business areas defeat the efficient flow of traffic and that the through-traffic destroys the shopping-value of commercial streets. In other words business and through-traffic arteries are mutually harmful. Guided by this principle it is recommended that through-traffic be discouraged on Rizal Avenue and encouraged on Quezon Boulevard. In order to discourage unnecessary traffic from using Rizal Avenue, it is recommended that the Santa Cruz Bridge be eliminated. This elimination will also simplify the present complicated problem of the traffic snarl on Plaza Lawton. A cross-town street connecting Raon, Ongpin, and San Fernando is provided halfway between thy River Boulevard and Azcarraga. This secondary, 26 -meter street will provide good access through the center of the commercial area and should facilitate the movement of mass transportation. Since many substantial buildings on the Escolta have survived the war, it was concluded that it would be impractical to provide the usual street of six lanes of moving traffic-the minimum for a good commercial street. The maximum feasible improvement for the Escolta is to widen the street by eliminating most of the present sidewalks and incorporating arcaded sidewalks within the present buildings and new structures. The arrangement has been followed in the five buildings which have recently been rebuilt or remodelled, namely: Heacock, Cu Unjieng, Botica Boie, Santa Cruz, and Squires-Bingham. This scheme for the Escolta is now covered by a city ordinance. When adjoining buildings have been rebuilt according to the plan, existing buildings will cut through arcaded sidewalks inside their structures. San Vicente will remain as a service-street to be used mainly for loading and unloading. Its width will be 7 meters from curb to curb with 1-1/2 meter sidewalks on both sides. Since a service-street is narrow, no arcaded sidewalk is recommended. The destruction on Dasmarifias being considerable and the buildings less substantial there than those on the Escolta, the plan calls for Dasmarifias to become a 6-lane (Continued on page 291) 2G6

1947-'48 Program of the U. S Public Roads Administration Philippine Division By Francis C. Turner Division Engineer THE allotment to the Public Roads Administration for fiscal year 1947 under Public Law 521-79th Congress-was $10,000,000, all of which is programmed to specific projects, with $5,365,041.50 under contract agreements with the Philippine Bureau of Public Works as of November 1, 1947. Five projects in the vicinity of Manila have been completed, including 30 miles of a bituminous type of dust layer and one mile of six-lane concrete pavement on Santa Mesa Boulevard. Another similar concrete paving project, Espafia Boulevard, is 82% complete at the present time, and one bridge over San Juan River is under construction. Other important projects in Manila include Quezon Bridge, for which bids were received on November 24, and Jones Bridge, for which plans currently are being prepared. Since Ayala Bridge is adequately carrying traffic in its present emergency condition, it has not been given first priority in the distribution of funds. Restoration of Santa Cruz Bridge has been deferred pending a decision by the Bureau of Public Works as to whether or not a bridge will be rebuilt at the present location, or be moved to some other location developed in accordance with the long-range plans for the city of Manila of the National Urban Planning Commission. Construction contracts have been signed and construction started for ten street repair projects within the city of Manila. A contract has been awarded and construction is underway for a large concrete paving project on Manila North Road, 40 miles from Manila and for another similar project on Manila South Road, 5 miles from Manila. A contract has been awarded for another paving and repair project on Manila South Road immediately adjacent to Manila and Nichols Field. One of the projects now in progress in which the Philippine Bureau of Public Works and the Public Roads Administration are cooperating, is known as the Highway Planning Survey. This survey has become an established useful tool of the highway administrators in the State Highway Departments in the United States, and, it is believed, will become equally useful to the Bureau of Public Works. The first activity being undertaken is a road inventory. A traffic survey will be initiated soon and will be carried on simultaneously' with the inventory. A financial survey wpil be conducted largely through the central office in Manila. Most of the field force will be drawn from the organizations of the District Engineers of the Bureau of Public Works in order that the planning survey organization may utilize to the best advantage their knowledge and experience. Of the 34 program items comprising the 1947 fiscal year program, 18 are completed, under contract, or have been advertised for bids. The remaining 16 items will be contracted before the end of this present year, and in addition approximately $5,000,000 from the fiscal year 1948 fund will be under contract by February 1, 1948. Public Law 166 of the 80th Congress appropriated $40,266,150 for rehabilitation purposes under sections 302 to 305, inclusive, of the Rehabilitation Act of 1946. Public Roads Administration has been allotted $12,250,000 from this appropriation for the 1948 fiscal year. The Bureau of Public Works already has submitted a program for the use of two-thirds of this allocation, and we currently are investigating the eligibility of each of the approximately 100 items which will comprise the 1948 program. Our basic working plan contemplates that the Bureau of Public Works of the Philippine Government will prepare plans and award actual construction contracts in their own name, requesting reimbursement for approved construction work after it is completed. This plan of procedure gives the right of initiative to the Philippine Government and avoids a situation whereby the United States Government is one of the prime contracting parties with Philippine nationals on foreign soil. Public Roads Administration contract-agreements are with the Philippine Bureau of Public Works on the basis of construction contracts executed by the Bureau of Public Works with either Filipino or American contractors. This method has the advantage of providing direct training for the Philippine Bureau of Public Works pending the time when American personnel will be withdrawn from the rehabilitation effort. A shortage of trained and qualified personnel in the Philippine Bureau of Public Works has been a major delaying factor in development of the program. This has been offset to some extent by Public Roads Administration assuming some of the responsibilities envisaged for the Bureau of Public Works in the operating scheme described. As rapidly as personnel can be trained in the Bureau of Public Works these responsibilities will be returned to them. While slow delivery of equipment and materials also has been a delaying factor, this problem now has been overcome by the acquisition of all needed key-units of equipment either by purchase in the United States by Public Roads Administration or acquisition from surplus or by borrowing from United States Army forces. Present tentative agreements contemplate that $40,000,000 of the $120,000,000 authorized for rehabilitation of the Philippines under sections 302 to 305, inclusive, of the Philippine Rehabilitation Act of 1946, will be expended for road and street rehabilitation by Public Roads Administration, which work must be completed by June 30, 1950. At the present time our schedule of operations anticipates that this volume of road, street, and bridge rehabilitation will be completed within the time limit as stated. Our present force consists of 31 American Civil Service employees in Manila, 4 in Washington, and 52 Filipinos hired locally. At the peak of the program, which we expect to reach in December of 1948, we anticipate a force of 98 Americans and 100 Filipinos. Our offices are located on the second floor of the Post Office Building with the Philippine Bureau of Public Works in order to permit better coordination w~ith that agency. "You are reminded that the United States of America and most, if not all, of the other countries of the Western Hemisphere developed economically in good measure through the participation of foreign capital." - MONNETT DAVIS, United States delegate to the ECAFE Conference in Baguio. 267

The Business View A monthly review of facts, trends, forecasts by Manila businessmen Office of the President From an Official Source CT. 17-At a state dinner at Malacafian in honor of members of the United States Congress visiting the Philippines, Ambassador Emmet O'Neal, on behalf of the Library of Congress, which published it, presents President Manuel Roxas with a copy of the limited facsimile edition of the Doctrina Cristiana; this earliestknown printed book in the Philippines was produced in Manila from xylographic plates in 1593. The President issues Executive Order No. 97 waiving the unpaid additional progressive taxes payable by sugar mills on the 1941-42 sugar crop inasmuch as most of this crop was commandeered by the Japanese. Oct. 19-The President, in a speech before the Nueva Ecija Civic League meeting in Manila, advocates the growing of peanuts and also suggests the planting of rice in rows like sugar-cane, as is done in the Visayas. Oct. 24-Representatives of the Philippines and China at Malacafian exchange ratifications of the Treaty of Amity recently concluded between the two countries. Oct. 27-The President issues ad interim appointments to Dr. Tranquilino Elicafio as Director of Hospitals, and Mrs. Asuncion Perez as Commissioner of Social Welfare. Also announced that Alfredo de Leon, formerly Collector of Customs, has been appointed Commissioner of Customs. Oct. 28-Collector of Internal Revenue Bibiano L. Meer, in a radiobroadcast, warns that persons in possession of radio-receiving sets must register them or be liable to a fine of not more than P300 or imprisonment for not more than 6 months, or both. The registration fee runs from P2 to P8, depending upon the number of tubes. Radio dealers and repairers must report their sales and services monthly. Nov. 1-The President at a luncheon tendered to Rotary International President Kendrick Guernsey, praises the work of Rotary toward the achievement of international goodwill. Nov. 3-The President informs the Governors of Leyte, Samar, Surigao, Albay, Sorsogon, Camarines Sur, Camarines Norte, Quezon, Mindoro, Marinduque, Capiz, Antique, Masbate, and Romblon that the district engineers in their provinces have been authorized to spend amounts not in excess of 10% of the present balances in the appropriations for public works for the maintenance of roads and bridges, the repair or reconstruction of schools and temporary bridges, and other public facilities damaged by the last typhoon. Nov. 6 —Secretary of Justice R. Ozaeta renders an opinion with respect to examinations held by the Board of Electrical Engineering Examiners, that oral examinations are not permitted under the law; they must be written. Nov. 11 —Provincial and municipal elections are held throughout the Philippines; also of a third of the members of the Senate, elected at large. Nov. 13-The President issues a statement on the death of Miguel Unson, and pays tribute to his "lofty and valuable services" to the Government. Reported that Secretary of the Interior Jose C. Zulueta has issued a circular ordering a more intensive campaign against the slaughter of large cattle without proper permit. Nov. 17-The "Coalesced Minority Parties", through the Chairman, Senator Eulogio Rodriguez, addresses a memorial to the President protesting against allegedly widespread election irregularities, especially in Negros Occidental and Lanao. Banking and Finance By C. R. LEABER Manager, National City Bank of New York M /rONEY market conditions were not noticeably altered dgring the period under review. A good demand for commercial and industrial loans was in evidence. The extent to which bank credit is being used is reflected by the latest report of the Bureau of Banking in which loans and advances reported by Manila banks totalled P341,731,000 on November 1, an increase of approximately P7,000,000 over the amount of P334,700,000 shown on the October 4 return. This credit is channeled into a variety of outlets. Some of it goes into medium-term projects, such as replacement and repair of machinery, or the expansion of plant. A larger share of the loanable funds of banks finds employment in financing the current needs of business, such as exports of the products of the Philippines and imports of consumer goods. Wholesalers and retailers are increasing their inventories in anticipation of the Christmas trade, and this contributes to the need for credit at this season of the year. The interest rates on loans are about the same as they were during the early part of the year, but there is a tendency for them to harden. Generally speaking, banks are not over-loaned and credit for sound productive business is available. Bank deposits have shown a tendency to decline of recent weeks, but not on a scale which makes us believe that it is a significant feature of business conditions. Debits to individual accounts, as reported by the Bureau of Banking, are being maintained at record levels. If we refer to the reports of the Bureau of Banking under this heading, we find that they reached P110,428,000 on November 1, compared to only P65,223,000 on January 4, 1947. The Treasury circulation figure of P725,054,420 does not show much change in the currency in circulation contrasted with the previous month end. The foreign-exchange market is steady at unchanged rates. The excess supply of dollars in the market noted last month is not so much in evidence, and the quotation for dollar-exchange has firmed up a little as buyers come out to cover their requirements. Imports are absorbing a larger volume of exchange as we approach the season when buying is brisker. In foreign trade, imports continue to exceed exports. For the eight months of the year ending August 31, for which statistics are available, imports were valued at P693,744,000, while exports amounted to P278,997,000. Pre-war exports of gold from the Philippines played an important role in the external trade of the country and added to the supply of its foreign exchange to a considerable extent. The United States Treasury announced the other day the long-awaited amendments to the existing gold regulations which will prevent persons and organizations in the United States from dealing in gold at premium prices. It is generally believed here that the Philippines will take similar action. I268

As this review is being written toward the encof November, the incident of three typhoons of destructive intensity in a period of a little over two weeks has changed the business outlook to some extent. While there may be more copra available during the next month or two because of the nuts which have been shaken down by the storms, in February or March of next year we may find that the supply of copra is sub-normal. The purchasing power of the people will be lessened, if this happens, and business turnover will suffer. Reports are already trickling in from the provinces that buying for the holiday season now approaching, is being curtailed. Stock Market October 16 to November 14, 1947 By A. C. HALL A. C. Hall P Company A FTER some initial hesitation, the market again moved forward accompanied by increased activity, and by the end of October reached an area just below its February high. Since then prices have been more or less in a sideways movement until the last few sessions, when a mild easing tendency, on contracted volume, manifested itself. It is neither surprising nor discouraging that the market is pausing to consolidate its gains following the substantial advance of the past two months. In fact this may be considered constructive rather than the reverse, as volume indications continue bullish. In this column in past months, market fluctuations have been measured by reference to our mining-share average. The Manila Stock Exchange has recently resumed publication of its Mining Share Average, and use of this official index will be made from now on. The high point of the MSA average during the month under review was on November 8 at 112.35, the low on October 20 at 100.71, and the close today at 110.16, for a net gain of 5.91. Price-changes in individual issues have been somewhat mixed. Acoje and Lepanto in the base-metal group have registered gains, but Consolidated Mines is unchanged. In the gold-mining group, Atok and Big Wedge have advanced sharply on an increased turnover reflecting public satisfaction on the proposal to fuse the two companies, as approved by the shareholders. Mindanao Mother Lode has registered a small decline over the month for the first monthly loss in six months. Elsewhere changes were mostly fractional. In the unlisted mining group, 10,000 Balatocs changed hands from P4.50 to P4.30, closing at the latter figure. Itogon traded from 6-1/2 to 7-3/4 centavos, and United Paracale was unchanged at 9 centavos. Over the counter, Benguet Consolidated eased to P4.50 in quiet trading, but Antipolo continued in good demand and advanced to 29 centavos with 750,000 shares traded. In the commercial and industrial section, apart from San Miguel Brewery and Philippine Racing Club, there was little activity. The latter stock advanced 16 points to P1.30 on rumors of a possible merger with Manila Jockey Club. San Miguel Brewery has been consolidating its recent rise impressively, and some 3,000 shares changed hands between P71 and P80, closing at the latter price for an advance of P7. Other business reported in this section included 300 shares Bank of the Philippine Islands between P68 and P65, and small business in Pambuscos at P1.50 and Marsman Common and Preferred at 40 centavos. Sugar shares continued neglected. Reported during the period were 30 shares Bais at P600 unchanged; 80 shares Carlotas at P115 and P 112, off P3; and 45 Victorias at P130, up P4. Far East Oil Development traded between 40 and 51, closing at 46-1/2 centavos for a net loss of 2-1/2 centavos on a turnover of about 900,000 shares. In unlisted commercials, about 3,500 Jai Alai were reported at P14.50 or a gain of 50 centavos, also small business in Botica Boie at P140 and Manila Jockey Club at P2.90. MANILA STOCK EXCHANGE LISTED MINING SHARES October 16 to November 14, 1947 TOTAL SALES HI-H Low CLOSE CHANCE Acoje Mining Co..... P.35.30.34 Up.025 1,172,000 Antamok Goldfields...025.015.025 Up.005 232,000 Atok Gold Mining Co. 1.38 1.10 1.34 Up.16 199,500 Baguio Gold Mining Co.................055.05.055 Up.005 183,500 Batong Buhay Gold Mines.............0084.0054.008 Up.002 4,825,000 Big Wedge Mining Co................ 1.38 1 10 1 34 Up.14 133,500 Coco Grove, Inc.......028.023.023 Off.007 135,000 Consolidated Mines, Inc................016.0145.0145 Unchanged 18,947,600 IXL lining Co........07.0675:0675 Off.0025 63,000 Lepanto Consolidated.60.47.56 Up.07 1,077,000 Masbate Consolidated.05.042.048 Off.002 270,000 Mindanao Mother Lode.............98.91.93 Off.02 477,000 Paracale Gumaus Cons............ 075.0825.0825 Off.0125 130,000 San Mauricio Mng. Co................22.20.215 Up.015 106,000 Surigao Consolidated..44.37.39 Up.01 737,000 Electric Power Production (Manila Electric Company System) By J. F. COTTON Treasurer, Manila Electric Company 1941 Average-15,316,000 KWH 1947 1946 January....................... 17,543,000 9,286,000 February..................... 17,503,000 8,778,000 M arch....................... 20,140,000 10,122,000 April......................... 19,601,000 9,849,000 May....................... 19,241,000 11,132,000 June......................... 17,898,000 11,432,000 July.......................... 22,593,000 12,333,000 August....................... 23,358,000 14,411,000 September................... 23,122,000 15,018,000 October....................... 24,755,000 * 16,787,000 November..................... 24,550,000 * * 15,767,000 December................................. 17,984 000 *R ev ised................................................ **Partially estimated.................................... K I L O W A T T H 0 O U R S In November electric production dropped slightly because of one less day than October. Compared with October, 1947, there was a decrease of 205,000 KWH or.8%. Compared with November, 1946, there was an increase of 8,783,000 KWH or 55.7%. The highest daily output to date was recorded on November 29, the figure being 890,160 KWH. Real Estate By C. M. HOSKINS President, C. M. Hoskins ~ Co., Inc., Realtors HE outstanding feature of the real-estate market last month was the decision of the Philippine Supreme Court holding that aliens cannot acquire urban real property. It is generally believed that American citizens are excepted from this ruling under the Parity Amendment. The decision is expected to affect the realestate market adversely, but not too seriously, as the bulk of non-American alien purchasers comprise Chinese, who 269

in most cases have acquired COW or are in process of acquiring Filipino citizenship.*ote: A ar Legislation to make it Japanese possible for friendly aliens to acquire commercial, industrial, and residential prop- January............ erties under prescribed limit- Feary.. March.............. ations is being considered by April............... the Administration May................ Another point not yet Jne................ settled is whether registered July.s August.............. leases are included in the pur- September........... view of the decision. If not, October............. 99-year leases are suggested November........... December... by some as a means by which TOTAL e *. aliens may establish business ___ offices in the Philippines. The Solicitor-General announced that he was s what action to take as to aliens who acquired rel prior to the Court's decision. dPARATIVE STATEMENT OF REAL ESTATE SALES IN MANILA Prepared by the Bureau of the Census and Statistics percentage of 1945 sales and a diminishing percentage of 1946 sales, represent e Occupation transactions not recorded until after liberation. 1940 P 6,004,145 918,873 1,415,246 883,207 403,866 542,187 1,324,861 1,905,828 1,141,114 993,103 938,416 1,504,004 P17,974,844 1941 P 962,970 779,783 1,532,104 988,380 1,129,736 598,431 559,742 1,239,414 815,112 1,182,678 858,235 (?) P10,647,285 1945 P 7,943,605 1,337,830 (?) 213,262 962,008 1,212,780 1,123,565 699,740 1,870,670 2,096,893 2,555,472 2,874,408 P22,890133 1946 P 4,385,011 2,267,151 2,622,190 1,916,293 3,684,937 3,637,956 4,974,862 4,438,510 4,698,896 5,545,800 3,340,382 4,025,926 P45,537,914 1947 P 6,030,012 7,217,317 7,166,866 8,611,076 4,618,181 3,988,560 4,097,183 5,627,572 7,437,213 6,083,486 P60,877,376 Real estate sales recorded during November totalled P2,677,120, the lowest since April of 1946. *Editor's Note: See also Mr. R. Janda's column, page 283 Construction By H. H. KEYS Architect HE South Port Area shows a great deal of activity, the motor-car industry being responsible for much of it. Many types of new work and reconstruction are noticeable. Quonset huts are being used on top of masonry substructures; old concrete buildings and steelframe buildings are being repaired; and some of the first emergency work after liberation is being replaced with better materials. The policy of the Philippine Government in requiring lease-holders to accomplish certain construction within specified times, is also responsible for some of the activity. The Government permits parts of such buildings to be subleased and this has made the financing of some of this work possible. While leaseholders therefore are doing much to improve the South Port Area, the streets go on developing new holes daily. Fortunately this area is largely occupied by Automobile people, so broken springs and axles can be easily replaced. When the North Port Area has its proper streets, there will probably be some building activity there. Meanwhile, firms which might be interested in that area are making commitments elsewhere. Contractors report a shortage of cement. They state that frequently they cannot obtain enough cement to carry on their projects without delay. Whether this is due to a shortage in production or to priority given to the Philippine Government, I do not know. * After liberation, emergency buildings were erected, undoubtedly necessary at the time, but a fertile source of costly fires. Unfortunately, in many cases, practically the same type of construction is being used in the rebuilding. Many property owners are erecting small shops on ground floors, with apartments above. This, in a small way, is relieving the housing-shortage. Outlying districts, New Manila, Pasay, etc., as well as many localities within the city limits, show many new homes recently erected or under construction. While there are a few fairly good-sized apartments under construction, these will still far from meet the full need for this type of dwelling. *Editor's Note: According to Mr. Eduardo Taylor, General Manager of the Cebu Portland Cement Company, the shortage is temporary and due to shipping difficulties resulting from the recent series of typhoons. Some owners are delaying improving their property until the passing of proposed Zoning Ordinance. This ordinance was recently reviewed before the Philippine Institute of Architects, and the recommendations of this organization as to changes and clarifications will doubtless be forwarded to the proper authorities in the very near future. The Zoning Ordinance, among other things, affects the percentage of lot-occupancy for residences, heights, etc., and prohibits apartments in certain parts of the City. It is well worth serious study by property owners. They may find that their property may not be developed again for its pre-war purposes. A zoning ordinance is very desirable, but some property owners are due for a very rude awakening. The recent ruling of President Roxas in permitting increases in lumber exportation will undoubtedly affect somewhat the cost of lumber. I repeat what I have said in previous articles, property owners want to improve their property and mostly with properly constructed buildings, but the increasing difficulty of obtaining materials is causing many headaches. Port of Manila By H. W. TITUS Luzon Stevedoring Company, Inc. TMIUCH has been written and said in general talk about the problem of Manila traffic, and there have been as many "solutions" proposed as there have been persons engaged in discussion or writing on the subject. One of the focal points at which the traffic problem has become most acute, and the one this writer is concerned with, is the Port Area. Pre-war attempts to set up rail-connections for the South Harbor to provide the normal rail-sea tie-up enjoyed by most ports, was never brought to fulfillment in Manila. Lighterage, a means of handling incoming and out-going cargos in most of the ports of the world, has been developed in Manila chiefly for certain classes of cargo including steel, petroleum products, copra, cement, desiccated coconut, and like commodities. However, except for a short time during the post-liberation period, lighterage of general cargo has not been a major factor here in unloading and loading ships. The result has been that almost all general cargo, averaging over 100,000 tons a month, has had to be handled over the piers from vessels along-side and thence to trucks to the various warehouses in the city. This has given rise to a necessarily tremendous number of cargovehicles attempting to receive or discharge an average of over 600 truck-loads a day of cargo within the relatively small area along Muelle San Francisco between 25th and 270

13th Streets. Even in spite of the fact that this considerable tonnage must be handled in that manner, the problem would not have been insurmountable had the cooperation of all concerned been of the highest order. It is, however, unfortunately true that customs brokers, who have the largest number of trucks coming to the Port Area, have understandably attempted to serve, as they understood them, the best interests of their clients and themselves by throwing as many trucks as possible into the area at once, this resulting in a tremendous tie-up of trucks, which could be avoided by an adequate planning by truckers of their needs in terms of the amount of cargo which they could actually expect to move within a given number of hours, and thus staggering the number of trucks sent into the customs area. The result of throwing all trucks possible into the Port Area at once, has meant traffic tie-ups which not only hinder orderly lines of trucks going into the area but creates a confusion which delays trucks getting out and thus relieving the congestion. This situation inevitably results in a great number of trucks being tied up, increased brokerage expense, chaotic delivery, and damaged cargo. The high costs of such uneconomical operation is passed on to the consumers of imported goods. Among the developments in the future which may be expected to assist in relieving traffic congestion in the Port, are the paving of the streets of the South Harbor, which has already been discussed here as one of the projects of the U. S. Engineering Corps for 1947 and 1948, and the building of a new bridge across the Pasig River to come into the South Harbor at Bonifacio Street. These two projects are manifestly important. The first, because obviously greater truck-speeds and improved operation of trucks will result from proper surfacing of the traffic arteries. The second, because, as every one is unfortunately aware, the Jones Bridge, which is the major link between the business section of the city and the Port Area, constitutes one of the most serious bottlenecks in the whole of Manila traffic. With a new bridge in, it is to be hoped that stand-by time of trucks in traffic will be materially reduced, resulting in better truck turn-around and a consequent ability of the brokerage concerns and truckers to handle more cargo with fewer trucks, thereby reducing the number of motor-units required to get cargo off the piers. There is one "catch" in the relief to be expected from these developments; for the considerable period of time that the streets in the South Harbor area will be under construction there will be an inevitable slowing down of traffic operation to a serious degree. This means that unless the greatest of cooperation is secured from truckers in staggering the number of trucks sent in to the pier area, in accordance with the amount of cargo they can expect to load in a given period of time, a condition will necessarily come about in which no one taking delivery of cargo is going to secure any measurable results, making for a truly impossible situation. There is some evidence that the public is already aware of the situation and that a realization is forming that even greater cooperation must be secured from all concerned, including the customs authorities, harbor police, Philippine Ports Terminal Company, customs brokers, and trucking firms, all of whom must assist in making possible an efficient and economical operation during the period of the rehabilitation of the Port. Ocean Shipping BY F. M. GISPERT Secretary, Associated Steamship Lines CTOBER exports showed a slight increase over September figures: 164,407 tons for October as against 144,227 tons for September. Most commodities held their own excepting logs and lumber which, after an initial spurt in September, dropped off to one shipment in October. Coconut-oil exports showed a fair increase over the preceding months. Exports for October, compared with September, are as follows: September 161 tons Cigars............................ Desiccated Coconut............ Coconut Oil................. Copra........................... Copra Cake....................... Hemp (bales)................. Logs & Lumber (bft.).............. Ores............................. Rope............................ Tobacco.......... Sugar............................. 7,130 1,249 86,763 2,814 60,678 765,788 20,338 508 175 bales bft. tons,, October 4 tons 5,490 " 4,006 98,427 5,843 " 63,550 bales 24,696 bft. 16,018 tons 245 184 " The carriage of exports was divided as follows: Sailings Tons Percent American vessels............. British vessels.................... Chinese vessels................... Danish vessels.................... Dutch vessels.................... Filipino vessels................... Norwegian vessels................ Swedish vessels................... I 32 79,814 9 8,266 3 411 5 17,734 5 13,801 4 14,895 6 23,925 4 5,561 48.55 5.03.25 10.79 8.39 9.06 14.55 3.38 Inter-Island Shipping By D. M. CAMERON Everett Steamship Corporation DURING the last month communications were badly disrupted by the post-seasonal typhoons which struck the Bicol Provinces as well as Northern Luzon. Vessels were required to take shelter and their schedules were badly delayed. Also, piers and lumber mills in the path of the typhoon suffered damage and consequently hampered loading and reduced available lumber. One vessel, the FS-277, belonging to the Philippine Sea Transport, sank off Surigao. The S.S. Anakan, of Madrigal Shipping, was beached near Aparri, and the S.S. Charles McDonnell, of the Philippine Steam Navigation Company, had a hole ripped in her bottom when she lost her anchors and drifted out of the harbor of Aparri. It will be some time before schedules are again on their regular basis. A good amount of lumber was carried during the month of November, 19,800,000 board feet of lumber and 1,800 cubic feet of logs being transported. Some seasonal increase is being experienced in outward tonnage, but the total amount is still below previous averages. Inward cargo, which consists mainly of lumber and logs and hemp, the latter principally for transhipment, has shown a slight increase. Some sugar has begun to move inter-port with the beginning of the first post-war milling season. There will be some transhipment-sugar moved by inter-island vessels, but, as in the past, most of the export sugar will be loaded by ocean-going vessels in the Iloilo area. The Philippine Shipping Administration has a numberx of surplus vessels, including 8 YMS's and 14 FS's, which will be sold during this month. With the conversion of these vessels, it is expected that some additional ports may be served, but, in general, the situation remains at a point where the cost of operation will not subtract from gross revenue. This condition is not expected to improve with the new higher cost of fuel oil. 271

Air Transportation By V. A. BRUSSOLO Vice-President, Philippine Air Lines, Inc. A S the current year draws to a close, a survey of what it has been accomplished in the aviation industry in the Philippines during 1947 reveals an overall optimistic picture of increasing aeronautical activities. Statistics reported by the Civil Aeronautics Administration for a one-year period dating back to late 1946, give the following highlights: Total passengers carried............... " mail carried.................... " air freight carried.............. " miles flown..................... " hours flown................... " passenger mileage............... 341,788 396,021 lbs. 13,773,085 lbs. 6,256,654 47,919:09 66,001,033 passenger miles The foregoing figures are the result of strictly domestic airlines operations, namely, Philippine Air Lines, Inc., Far Eastern Air Transport (purchased by Philippine Air Lines, Inc. in May, 1947), Commercial Air Lines, Inc., Philippine Express, Insular Airways Corporation, and Pacific Airways Corporation. A new company, the Amphibian Airways Corporation, has recently been granted a permit to operate PBY's on a non-schedule basis. Additional highlights in the Philippine aviation industry for the same period and for domestic operations alone are as follows: Gasoline consumption.......................... 4,799,704 gals. Oil consumption............................... 90,864 gals. Average monthly gas consumption.............. 399,975 gals. Average monthly oil consumption............... 7,571 gals. To these figures should be added those of international operations. Unfortunately, data on this phase of the industry is still incomplete by reason of the extensive operations entailed. However, it will be conservative to estimate that at least 400,000 passengers have been flown by both domestic and international airlines. Apart from airlines of Philippine registry operating in the Islands today, there are seven airlines of foreign registry which call at Manila regularly, namely: (1) Pan American Airways, an airline operating under a pre-war franchise; (2) Northwest Airlines, Inc.; (3) China National Aviation Corporation, with PAA acting as agent in the Philippines; (4) Central Air Transport Corporation; (5) Cathay Pacific Airways, Inc.; (6) Pacific Overseas Airlines; and (7) Transocean Air Lines, whose planes are being chartered by Philippine Air Lines. These seven airlines operate on an average of three landings every week each. Philippine Air Lines and Commercial Air Lines account for eight landings more per week. The u s. Civil Aeronautics Administration for some time now has been operating a branch office in Manila, charged with the duties of helping the Philippine Government in the rehabilitation of civil aviation here. To carry out this objective the United States Government has entered into a contract with the Philippine Government providing, among other things, for the extension of material help in the construction and improvement of Nichols Field which ha, been designated as the Manila International Airport. The Philippine Civil Aeronautics Administration and the United States C.A.A. are presently working as a team to carry out their plans and objectives. These include the building of additional paved runways on Nichols Field, 7,500 feet long, with an instrument-landing system; the establishment of a high-powered overseas airways radio-communication station with circuits to Guam, Tokyo, Shanghai, Bangkok, and Australia; ground-to-aircraft communication with planes flying along routes to these points; traffic-control for planes flying within 100-mile radius of Manila; installation of high-frequency radio range (beam) station, identical to those now being installed throughout the United States. In carrying out the program of the Philippine and United States Civil Aeronautics Administrations in crnnection with the development of the Manila International Airport and its auxiliaries or alternates, the United States Congress has appropriated $8,000,000 to be expended for the purpose, mutually agreed to by both Governments represented by the two civil aeronautics bodies. Enunciating the basic policy of the Manila International Airport regarding proposed charges thereat, Col. Jesus Villamor, concurrently Acting Administrator for the Airport and Philippine CAA Administrator, states: "The foremost aim of the Manila International Airport is to become self-supporting within a reasonable period and without an undue burden on aviation enterprises. "Aviation charges, therefore, will be made in such manner as to make revenue thereof sufficient to cover the Airport's prudent costs of operation and maintenance. "To compensate for this, a financial plan is being evolved with the end in view of aggressively developing non-aviation revenue sources. "Consequently, non-aviation concessions will be charged to produce maximum airport-revenue consistent with good service, while aviation-revenue activities will, as much as possible, be kept down at minimum levels." With that sound policy, the aviation industry in the Philippines significantly closes the year 1947, which has witnessed great strides towards real progress in this corner of the world of commerce so vitally affected by aviation. Land Transportation (Bus Lines) By L. G. JAMES Vice-President and Manager, A. L. Ammen Transportation Co., Inc. HE Philippine Transit Association, composed of T various companies operating truck and bus lines in many areas of thePhilippines, functioned for a number of years before the war. Soon after liberation, the Association began taking an active part in problems of land-transportation rehabilitation. It has continued to represent its pre-war operator membership in matters of general interest and policy before the Public Service Commission and other government agencies. The Asscciaticn recently made representation to the Commission on questions concerning Temporary Certificates of Public Convenience. Land-transportation facilities which are so essential to the normal economy of the country were practically non-existent at the end of the period of enemy occupation. In view of the extreme necessity for utilization of every available transportation facility and of the inability of prewar operators, who hold operating rights in their respective territories, to secure adequate and sufficient equipment at the time, the Public Service Commission had no alternative other than to grant temporary operating rights to every applicant who had operable equipment. It is estimated by the Philippine Transit Association that no less than 30,000 applications have been filed with the Commission since the mid-year of 1945 and that approximately 15,000 Temporary Certificates of Public Convenience are presently in force and effect. These certificates authorize operations on specific lines and on specific hours. A provision is written into each one, specifying December 31, 1947, as the expiry date. The Association estimates that the number of public utility vehicles now in operation is at least six times the pre-war number. Alarmed by the excessive competition resulting from the granting of so many of the Temporary Certificates and fearful that they may not be temporary 272

in nature, expiring on December 31, 1947, but that they might be extended indefinitely, many pre-war operators have been hesitant about making capital expenditures. It is alleged that in all parts of the Philippines there now exist more public transportation facilities than public demand requires; that further additions would result in ruinous competition for all concerned. Representations were recently made before the Commission requesting that a clear-cut statement of policy be made with respect to the granting of new Temporary Certificates and with respect to those already in force. On November 20, 1947, the Public Service Commission issued a memorandum-order covering land-transportation services. It provides a deadline of November 30, 1947, for the filing of applications for temporary or emergency operating rights. It further declares that no applications will be accepted after that date for extension of routes or services, or increase of trips or equipment on the part of present holders of Temporary Certificates. The Commission also promulgated a policy of granting extension on Temporary Certificates, provided the holders thereof make application for such extension and this is approved prior to December 31, 1947. The same order requires pre-war operators (holders of regular certificates) to complete and operate prior to June 30, 1948, all units authorized under their certificates. This indicates the end of the so-called "Emergency Period", as far as the Commission is concerned. It gives pre-war holders of regular Certificates of Public Convenience some assurance with respect to the future in that there will be no further granting of additional temporary operating rights. Among the various members of the Philippine Transit Association are such representative firms as Angat-Manila Transportation Company, Eastern-Tayabas Bus Company, Batangas Transportation Company, Halili Transportation Company, A. L. Ammen Transportation Company, M. R. Mateo Transportation Company, Meralco, Pangasinan Transportation Company, Panay Autobus Company, and others. Mr. J. A. Thomas and Attorney Manuel O. Chan are President and Executive Secretary, respectively, of the organization. Gold By CHAS. A. MITKE Consulting Mining Engineer The Philippine Mining Law ITH the publication of new gold-export regulations, a stalemate seems to have been reached, temporarily, in the gold situation. There is, however, another matter which should be of interest to mining men in the Philippines, and that is, the restrictions contained in the Philippine Mining Law. Approved November 7, 1936, as Commonwealth Act No. 137, it contains many clauses and provisions which, if enforced, would greatly restrict present mining, and virtually prohibit any large, scale operations. After recognizing two types of mineral deposits, "lodes" and "placers", and stating that everything that does not come under the definition of a lode mineral claim, is a placer, section 39 specifies that lode claims in the Philippines shall measure not more than 300 meters in a rectangular form. This would be 990 feet by 990 feet. Section 37 states that such lode claims shall not contain more than 9 hectares each. Placer claims are limited to 8 hectares each, when located by an individual, but an association of eight persons, or a corporation, may locate what are known as "association" claims, containing 64 hectares each. This same clause limits a locator, applicant, lessee, association, corporation, sociedad anonima, or limited partnership, to not more than three lode claims, or 24 hectares for an individual, and three association claims, or 192 hectares for an association or corporation, on the one stream or placer ground. Section 76 states the maximum area that may be leased to a person, association, or corporation, in any one Province on a lode claim, is 450 hectares (50 claims), providing it is not all on the same lode; in the case of placers, individuals are allowed 400 hectares (50 claims), and corporations and associations 3,200 hectares, providing the claims are not all on the one stream or placer ground. Section 74 states that the law does not permit locators to proceed to patent, but will grant 25-year leases, which may be renewed for another period, under such terms as may be provided by law. Section 68 requires that applications for mining leases be filed within four years from date of the recording of the claim, or within four years from date of approval of this act. Due to the war, Act No. 720, approved November 1, 1945, extended the time in which to comply with such requirements. Sections 79 to 83 of Act No. 137, specify the rentals and royalties that may be collected on mining leases. Any mining man knows that three claims, placed end to end along a lode, extending 495 feet on either side of the center of the lode, will not permit him to follow his ore down to any depth. Should the vein dip at an angle of 450, or flatter, the ore would pass out of his side-lines at 495 feet vertically. If, as frequently happens, the outcrop is not commercial, and sinking must be prosecuted to a depth of 200 or 300 hundred feet before stoping-ore is encountered, the tonnage available, in an average 3-foot vein, between 300 feet and 495 feet (where the ore passes out of the claims) would not be sufficient to justify the original expenditure for drilling, shaft sinking, treatment plants, etc. Placers are nearly always low-grade, running from 35 centavos to something under a peso. To show a profit, they must be mined on a large scale. However, no corporation would go to the expense of purchasing dredges, which frequently cost P1,000,000 each and more, to place them on 192 hectares of low-grade placer ground. The corporation would be bankrupt before it started. In the United States, the size of mining claims is 600 feet by 1500 feet and there is no limit to the number an individual or a corporation may locate, and eventually patent. In Australia, likewise, there is no limit to the number of claims that may be located. Long-term leases are granted by the Government, which, frequently, grants mining concessions over large areas. So far, the law has not been enforced. If it were, wholesale litigation, or the closing of many properties would follow. Several large American companies have expressed an interest in Philippine mining properties, but refuse to invest as long as the foregoing drastic regulations are on the statute books. While sections 79 to 83 of Act 137 define the amount of rentals and royalties to be collected on mining leases, section 243 (b) (3) last paragraph of the National Internal Revenue Code (No. 466) states: "The rentals and royalties at the rates herein established, or at such rates as hereafter may be prescribed by law, shall be paid by the lessee, and a provision to this effect shall be deemed to be a part of every contract of lease covering mineral lands and mineral products referred to in this section". Changing the royalties during the life of a lease might seriously affect the success of the enterprise, which has heen predicated on certain established costs, taxes, and royalties. Conclusion: The clauses limiting the number of claims which may be located and leased, under Commonwealth Act No. 137, should be cancelled. Rentals and royalties should be established at the commencement of a lease, and not be subject to change during its duration. 273

274 AMERICAN CHAMBER OF COMMERCE JOURNAL, December, 1947 Lumber By E. C. VON KAUFFMANN President, Philippine Lumber Producers' Association HE local market has shown a slight improvement Tduring the past month and is expected to continue firmer for the next few months. This is due to the rainy season being practically over. Constructions will be on the increase if other materials besides lumber become more readily available. Shipments of logs and flitches to the United States are still going out in very limited quantities. Buyers are mostly plywood manufacturers. There are a few buyers who are sawing the logs into lumber, but unless the logs purchased are top-quality, to compensate for the extra freight paid for sap, soft heart, and saw-kerf, they cannot compete with other imported mahoganies. Consequently, there is a general tendency on the part of United States buyers to lower the price of our logs. Our Philippine mahogany has to compete with African, Mexican, and Central and South American mahoganies which are higher priced; and unless there is a reasonable differential in price, our mahogany will not regain that market. Considerable money was spent before the war by a group of local producers to have our lauans accepted as "Philippine mahogany", and now that it is accepted as such, only a'trickle goes to the market because of the export restrictions. United States buyers have also been disturbed by the offers, made by several local firms, of logs and flitches at ridiculously low prices. Upon investigation, it was found that some of these firms are neither producers nor hold any license to operate lumber concessions; in fact they are not even in the lumber business, yet they offer freely the best logs and flitches and even throw in free some confidential advance information on the next move of this Government in regard to lifting the ban on cut lumber. United States buyers are being warned that direct information should be obtained from the Director of Forestry whenever offers are being made by such irresponsible parties. Editol 's Note: President Roxas announced in Baguio on December 3 that he would issue an executive order amending a previous order allowing the exportation of logs and flitches so as to include sawn lumber np to 20 % of the finished lumber produced during the preceding month; only producers would be allowed to export. Up to the time the Journal went to press, the formal order had not yet been issued. Copra and Coconut Oil October 16 to November 15, 1947 By MANUEL IGUAL General Manager, El Dorado Trading Company, Inc. AND KENNETH B. DAY President, Philippine Refining Company NOR the first time in many months the copra market enjoyed a practically continuous advance during the period under review. By doing this, it upset most of the traders, who although conceding the strength of oils and fats, anticipated the familiar pattern of alternating advances and recessions. Normally this should have been a period of very heavy production but it was largely disappointing in this respect, a fact aggravated by the short position held by many sellers in October, plus at least two severe typhoons which swept the northern copra belt. While the immediate result of storms such as these is to increase production temporarily, the long range result is to the contrary and the psychological effect is bad. When the period opened, copra was sluggish at $180 - j - REDDY KILOWATT Your Electric Servant MANILA ELECTRIC COMPANY 134 SAN MARCELINO, MANILA I I

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 275 both c.i.f. and f.o.b. with buyers backing away and predicting lower prices. In fact one sale was reported at $178 c.i.f. but this was the low point of the month and subsequently copra rose steadily to $210, where the advance was temporarily checked by reason of President Truman's call of a special session of Congress to take up both the question of European aid and American price inflation. This frightened local sellers into over-offering the market, and for a few days prices held at $205 to $210. Arrivals suddenly turned light, however, traders awoke to the fact that October/November shipments were fully sold, and the result was renewed interest by buyers, and a scramble on the part of sellers to cover their short positions. On this basis the market started to advance in earnest about November, and spiralled upwards until the end of the period, by which time it had reached a high of $255 per ton c.i.f., a gain of over 40% for the month. Even at these fantastic prices, sellers held back and were asking $270 c.i.f. on November 15. President Truman's address to Congress contained little of a bearish nature and his plans to help Europe and at the same time hold prices down at home appeared paradoxical to the trade and were soon discounted. Meanwhile, European buyers were holding back and were rarely competitive. One parcel was sold early in the period at $180 f.o.b., and late in the month French buyers paid $245 f.o.b. Most of the time, however, there was but little trading, and buyers, though interested, felt the priceadvance was too rapid and artificial and preferred to hold off in expectation of better bargains later, a decision encouraged by the chronic scarcity of United States dollars in European hands. SCAP came into the market twice for copra for Japan. On October 20 it bought 3,500 tons at the then high price of $188 f.o.b. When it tried to buy an additional 7,500 tons on November 17, sellers were so frightened that only 1,500 tons was offered, and that at $250. Under these circumstances SCAP rejected the offers and postponed its buying. Oil prices dragged behind copra throughout the month, and buyers were plainly nervous. But eventually buyers had to come in and, starting with a price of 16 per lb. f.o.b. Pacific Coast, a price reduced to 14-1/2 and 15, for a few days, the market gradually advanced to a point where on November 15 business had been done at 21 e f.o.b., with buyers merely pausing to catch their breath. Most of this business was for December/February delivery, and spot oil commanded a premium of as much as 2 0 per lb. Buyers were not interested in far futures which were offered with small success. There is every indication that, should copra weaken, buyers will back away promptly as they did last spring. During the period, shipments of copra were heavy, and October shipments were reported as 98,427 tons of which 74,498 tons were destined for the United States and the rest was scattered over European and other destinations. Manila prices in particular and local prices in general followed the advance. Starting in at P33 to P34 for resecada, Manila prices advanced to a reported high of P50 as the period closed with sellers, who were few and far between, holding off for more. Local oil reacted more slowly, advancing from a low of 72 to 74 centavos per kilo to a high of 82 to 84 centavos. Expeller-cake markets in Europe were substantially unchanged, with slow demand at prices which worked out c he Sign of "ifriendly Service THE ASSURANCE OF GOODWILL ON THE ROAD Drive Safely with Mobilgas & Mobiloil STANDARD-VACUUM OIL COMPANY PH ILIPPINES J OF

276 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 at an equivalent of $78 to $79 per long ton f.o.b. Meal markets in the United States were reported at better than these figures. F or many months coconut oil has been by far the cheapest fat offering in world markets. In early November, there were occasions when allowing for the excise tax, tallow was actually less expensive than coconut oil and even babassu oil was a better buy, particularly on the East Coast, and coconut oil, and inferentially copra, are fast approaching a parity with other fats. Tallow, however, owing to the disappointing corn crop, remained very firm, and had not reacted appreciably to signs of weakness in outside markets. Nevertheless, unless the American Congress could find a formula for combining all-out aid to Europe with domestic price- and commodity-control, there was every reason at this time to believe that prices would continue to advance for the time being and perhaps until spring. Sellers, at last sensing this, hastened to try to cover their short positions, even at substantial losses. In some cases there were disastrous defaults. Even so, at the close of the period the market was reported as considerably oversold, and a good part of the year's earlier profits were in the way to be wiped out. Also, high prices extended the previously ample finances of sellers, who both for this reason and for expediency's sake began to play the game more conservatively and without going very much either long or short. The advance over the period was so spectacular that it seemed at several times that it must be definitely checked, and, of course, sooner or later, it will be. When that time will arrive, however, is a matter of conjecture, and certainly there was nothing in the picture on November 15 to upset the general belief that Philippine copra, already selling at the top-prices in its history, was destined to set even higher records before the upward surge is checked. Conditions are so uncertain, however, that to take any considerable position in copra involves risks which transfer the operation from a straight trading business and even from a speculation, to the realm of a pure gamble. But few legitimate dealers are prepared to face such risks. Anything can happen this next month, and developments in Washington will probably determine the issue. Meanwhile the Philippine copra producer is for once in his heyday. Desiccated Coconut By HOWARD R. HICK President and General Manager Peter Paul Philippine Corporation T HE following report covers the calendar month of October, 1947. During the period, raw-material cost steadily increased, approaching the all-time high of April, 1947. The increase was due to copra advances, and it has been necessary to pay equivalent copra prices in order to obtain nuts. Due to this rise, several factories were forced to shut down for short periods, the rise being so great and so pronounced that sellers held out for better prices and rawmaterial shortages were experienced by all desiccatedcoconut producers. At the close of the period, prices seemed firm and all indications point to high prices through November. This comes at a time when most producers are getting into peak production, thereby creating more competitive raw-material buying. At the present time, the industry has reached approximately 79% of pre-war factory and machine capacity. I SUPERIOR GAS & EQUIPMENT COMPANY PRODUCERS and EXCLUSIVE DISTRIBUTORS OF: SUGECO Highest Purity OXYGEN and ACETYLENE Gases "rINATIC[AL" CARBIDE WELDING EQUIPMENT and SUPPLIES EXCLUSIVE SUPPLIERS OF E"SUPERFLA ME" BOTTLED GAS FOR ALL COOKING PURPOSES and "TAPPAN" GAS STOVES with complete Installation and Service Facilities l C -I~~~~~~~~~~~~~~~~~~~~~~~~~ U,r I

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 277 Generally, before the war and excluding the warthreat months when all factories moved into high gear in order to build up inventories and stock piles, few factories ran full blast. The industry produced about 80% of production capacity. Now, with 79% of the pre-war factory and machine capacity reached, last month's production rate surpassed the 1940 production figures by about 28%. The year 1940 is used for comparison as it is considered a normal operating year, while 1941 was abnormal in that the increased production was of a stocking-up nature due to war-threats and shortage of shipping facilities which became acute in the last quarter of the year. The present increased production and subsequent planned increases are to meet a greater real consumer demand which is reflected in a larger production of candies and baking products using various cuts of desiccated coconut. SHIPPING STATISTICS OF MANUFACTURERS OF DESICCATED COCONUT FOR THE MONTH OF OCTOBER Blue Bar Coconut Products Co... 1,595,600 Canlubang Sugar Estate........ Shipped by Franklin Baker Co. Cooperative Coconut Products... 385,000 Franklin Baker Company....... 2,478,950 Marsman and Company, Inc..... 179,900 Peter Paul Philippine Corp...... 2,050,000 Philippine Desiccated Company.. Shipped by Blue Bar Co. Red V Coconut Products........ 377,000 Sun-Ripe Coconut Products..... 882,500 United Coconut Products, Inc.... 444,600 *Soriano Trading Company..... 50,000 *Produced by Cooperative Coconut Products, Inc. and sold by the United Coconut Products, Inc. to the Soriano Trading Company, which shipped same by SS Surprise consigned to Deer Park Company, Chicago. Sugar By G. G. GORDON Secretary-Treasurer, Philippine Sugar Association A T the annual general meeting of the Board of Trustees of the Philippine Sugar Association, held on October 27, 1947, the following officers were elected for the ensuing year: President.......................... Hon. Jose Yulo 1st Vice-President................ Mr. E. J. C. Montilla 2nd Vice-President................ Mr. Carlos Rivilla 3rd Vice-President................ Mr. R. Renton Hind 4th Vice-President................ Mr. Jose G. Sanvictores Secretary-Treasurer............... Mr. G. G. Gordon Alternate Secretary-Treasurer....... Mr. S. Jamieson Members of the Executive Committee: Mr. Celso Lobregat Mr. Jose Cojuangco Mr. Federico Perez Mr. C. R. de Luzuriaga Mr. J. Amado Araneta Mr. G. H. Wilkinson Mr. Antonio Roxas Quotations on the New York Sugar Exchange for the period from the second half of October to the first half of November ranged as follows: High Low Close Sales May, 1948.......... 5.47 5.12 5.40 108,400 tons July, 1948.......... 5.50 5.13 5.44 43,750 " September 1948..... 5.49 5.19 5.45 19,700 December, 1948..... 5.49 5.25 5.45 1,700 March, 1949........ 5.20 5.05 5.18 2,100 TOTAL SALES.......................... 175,650 tons On November 18 it was announced in Washington that the tariff on Cuban sugar would be reduced from 75 / per 100 pounds to 50t per 100 pounds, which reduces the -- I I Best for sturdy, dependable Low-cost Transportation Year after year, wise buyers look to the world's leading truck builder for the solution of their haulage problems. And why? Because Chevrolet trucks have more pulling power than any others in their field... the most modern features... are completely dependable... and above all, because they know Chevrolet trucks will save them money in purchase price, operation and upkeep!.1 IIDDELL AND COMPANY, INCORPORATED 13th and Chicago Streets, Port Area * Manila, P. I. EXCLUSIVE DISTRIBUTORS FOR THE ISLAND OF LUZON TEL. 2-90-40 I -------- J

278 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 194 7 present duty-free advantage enjoyed by Philippine sugar. This reduction becomes effective on January 1, 1948. The War Damage Commission held a public hearing on October 20, 1947, at which arguments were presented for and against the filing of the war-damage claims of sugar planters through the Centrals to which they are adhered. The Commission also heard arguments for the establishment of the value to be placed on sugar lost as a result of the Japanese occupation. No rulings on these points have been announced to date. Manila Hemp By MURRAY COOK International Harvester Company of the Philippines HE month of October continued to witness a firm and active market for Manila hemp. A closing price for Davao '"J1" at P51 per picul loose, ex bodega, Davao, advanced during the first week to P52. Sales in New York were reported: Davao "I" at 24-3/40, "J1" 240, and "G" 22 2 with further buyers and sellers scarce. The second week brought new sellers, however, causing buyers to hesitate and bringing about a quiet period. This was reflected by a reduction of local buyers' ideas of price, which resulted in some business again on the basis of Davao "J1" at P51. Some scattered selling at as low as P49 was done. At this point, local sellers became very scarce, which eventually forced exporters to revise their prices upward. Keen competition developed during the rest of the month, which closed on a firm note, on the basis of Davao "Jl" at P51-the same as the opening price. Sales at the close were made in New York at 24-1/2 for Davao "I", 23-5/8/ for Davao "S2", and 23-5/8, for Davao "J1". During the month under review, activity in the nonDavao areas centered on United Kingdom grades "J2" and below. Heavy production continues in these provinces, with keen bidding for the small quantities of United States grades available. There was a noticeable decline in demand from the United States for the low grades, which was fortunately offset by unexpected demand from other parts of the world. However, this was not enough to absorb the production, and a slowly-declining market developed for "J2" and below. While non-Davao "J1" sold as high as P40 for loose, ex bodega, the market did not respond as did Davao, resulting in a quiet period. The Fiber Inspection Service reported a total production of 72,281 bales for October. Davao accounted for 28,358 bales of this amount. Exports amounted to 69,270 bales, of which 28,319 bales were shipped from Davao. It will be seen by these figures that the world continues to absorb Manila hemp as fast as it is produced. The production of United States grades continues at about the same pace, while some decline is beginning to be noticed in the production of United Kingdom grades. Tobacco By the CONDE DE CHURRUCA Companiia General de Tabacos de Filipinas SINCE typhoons, better known locally as baguios have been baptised with such cute names as Dora i~. w at ~f; '..( '.4 8 -,.., K~., I, - 1. HEACOCK'S > FOR HER / Richlieu Pearls...- P 8.00 - P198.00 Dresser Sets......-P13.00 Earrings........- 3.00 - 54.00 Afternoon Bags..- 12.50 Brooches.........- 3.00 - 45.00 Evening Bags....- 54.00 Necklaces......- 6.50 - 25.00 French Perfumes - 1.10 Lockets........- 6.50 - 25.00 Manicure Sets...- 15.00 Chokers........- 19.00 - 35.00 Make-Up Kits...- 7.00 Bracelets........- 4.50 - 55.00 Evening Hankies - 2.60 Birthstone Rings - 2.00 - 14.00 Berkshire Nylons - 4.50 Compacts.......- 5.50 - 75.00 Parker "51" Pens - 12.50 FOR HIM Arrow Knit Sport Shirts................................ -? 4.95 Belts (Hickock, Pioneer)....................... - 02.95 Ties (McCurrach)................................ 1.50 Shirts (Arrow)........................................ - 9.50 Socks (cotton, rayon argyles)......................... - 1.25 Shorts and Swim Trunks................................ - 9.95 Slacks (tan, blue, grey & green)........................ - 15.00 Lounging Robes (Sanforized)........................... - 30.00 Pajamas................................................. - 12.00 Shorts and Under-Shirts................................ - 2.50 'Military Hair Brushes.- 6.50 Military Hair Brushes.................................. - 6.50 Cigarette Lighters: Ronson............................. - 17.00 Pipe Lighters: JET..................................... 18.50 Pipes-Kirsten........................................... 13.50 Pipes M astercraft....................................... --- 1.50 Electric Shavers (Remington): Dual.................... - 40.00 Threesome.............. - 45.00...AND OTHER SPECIAL CHRISTMAS ITEMS - P285.00 - 125.00 67.00 - 180.00 - 52.00 27.00 15.25 5.50 - 120.00 Store of The Quality - P 5.95 - 9.25 - 13.50 - 13.50 - 2.70 - 20.00 - 32.00 - 60.00.A -k' 1 1 -.V -r,% I N r - 3.90 - 22.50 - 19.00 - 36.00 - 26.70 --- 26.00 SHOPPING HOURS Daily: 8:00 A.M. to 7:00 P.M. (Dee. 15 to Dec. 24) Except Sunday: Dec. 21 —8:00 A. M. to 5:30 P. M. ^^-^~~~P I IlACD C IK"'S The Store of Quality 6 0 0 D a s m a r l f i a s T e l. 2 - 7 0 - 8 1~~~~~~~~~~~~~~ 600 Dasmarifias I Tel. 2-70-81

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 279 Flora, etc., they have developed a feminine persistence in prolonging their charms, and have shown a marked affection for tobacco farmers in the Cagayan Valley. Since Cathy's visit, her younger sisters Dora and Flora, have done their best to outdo her, and achieved that aim, ruining in many regions an 80% of the seedlings, as well as destroying bridges, roads, etc., flooding the country, and behaving generally with very little respect for any one and anything. Luckily the damage is not permanent, and will only affect the crop by delaying the transplanting of tobacco, as we believe there is enough seed to replace the losses. The writer has been trying to visit the Cagayan Valley for the last three weeks, but transportation has been and is still interrupted in many parts of Northern Luzon. Local transactions have been very few, and the leaftobacco market is quiet. Sales of cigars are picking up due to the proximity of the Christmas festivities. Machinery Oil Expellers By JAMES CARPENTER Shurdut Mill Supply Co., Inc. HE shortage in world production of both edible and inedible oils, needs no stressing. World markets in fats and oils today are sellers' markets. With the advent of the Marshall Plan and the important part which fats and oils play in this plan, this situaticn will probably continue for from three to five years. The oil-mill operator, however, needs to keep in mind that his cost of production must be low enough not only to enable him to make a profit today, but to compete when the market becomes a buyers' market. Most foresighted operators, in this connection, are thinking in terms of amortizable automatic equipment rather than in terms of the unamortizable, and sometimes unmanageable, human labor in their plants. The trend is toward almost complete mechanization, and specifically toward the larger, but more sensitive oil-extraction machinery which either (1) extracts the highest possible percentage of oil at a considerable tonnage input, or (2) is capable: of processing very large tonnages though with less efficient extraction. In either case, the plants are flexible enough to meet the varying ratios between the rendered-oil and the residue-cake prices. The Philippines is in a particularly good position with respect to fats and oils production in that one of its principal crops, copra, contains the largest percentage of oil of any big-yield, oil-bearing product. Yet copra in the raw state comprises about 60% of the country's exports at the present time. Were this copra rendered into oil here, substantial freight-savings would be made and the profits from the extraction could be kept within the country and used in further extension of the industrialization which is in progress. New extraction machinery is coming into the country and several new plants will be in operation here by the middle of next year. Roughly, over three-fourths of all oil-extraction today is accomplished by the continuous-screw expeller type system. The word "Expeller", a copy-righted trade-name, is used synonymously with the modern oil-rendering machine. The Expeller plant is a highly flexible one in that it is capable of rendering the oil from many kinds of oil-yielding material. The same basic machine is used to extract oil _m THIS EMBLEM... IDENTIFIES INTERNATIONAL HARVESTER BRANCHES AND DISTRIBUTORS. BEHIND THIS NAME STANDS ONE OF THE WORLD'S LARGEST SERVICE ORGANIZATIONS. I Ir 91 Itr '' I I' I II I I _ I I -l L~ d I NOW! The Finest Values in More Than 40 Years of INTERNATIONAL TRUCK HISTORY There is a Size and Type for every HAULING NEED INTERNATIONAL HARVESTER COMPANY OF PHILIPPINES 154 MARQUES DE COMILLAS, MANILA CEBU BACOLOD DAVAO I tM HAT~~~~~~~~~~~~~~~~IT~~B IO A -

280 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 194 7 from copra, soybean, flaxseed, peanuts, meat-crackling, tung-nut, etc. This adaptability is especially useful here inasmuch as there are many oil-bearing materials in the Philippines which have not yet been processed with a view to extracting their oil commercially. Competent processors operating this type of plant give particular attention to every detail in maintaining control over all the phases in the oil-extracting process. The Expeller, itself, is only one of the several machines through which the materials must pass, which include grinders, magnetic separators, dryers, temperature regulators, oil-cooling screening tanks, filter presses, and cakehandling apparatus, the operation of which must all be effectively synchronized to secure the most efficient extraction. From the point-of-view of the investor, an oil-extraction plant in the Philippines is all the more attractive because copra, in comparison with the soybean, the nearest competing production a tonnage basis, yields approximately 4-1/2 times as much oil; that is, 4-1/2 times the tonnage of soybean must be processed to yield the same quantity of oil a given tonnage of copra yields. Automobiles and Trucks By J. L. MANNING Manila Trading and Supply Company ACCURATE figures are now available indicating the number of new trucks and cars which have been imported since the war and registered in the, Philippines. Although a small number were registered previous to July 1, 1946 and this figure is not available, it would not affect the total appreciably. REGISTRATION OF NEW CARS AND TRUCKS 1946-3rd quarter................ 1946-4th quarter................ 1947-1st quarter................. 1947-2nd quarter................ 1947-3rd quarter................ GRAND TOTAL.................... Cars 585 586 1171 1018 1228 1055 3301 4472 Trucks 365 269 634 599 611 724 1934 2568 Total 950 855 1805 1617 1839 1779 5235 7040 It is apparent from these figures that there has been a steady rise in automotive and truck importations and deliveries. This, in spite of the fact that a shortage still exists in the United States. However, established exportquotas to the Philippines are now adequate to supply the local demand. Although predictions are difficult under present conditions, it is the writer's opinion that the rate of the registrations for the first three quarters of 1947 will continue for a number of months. Food Products By GILBERT G. MILLER General Manager, Connell Bros. Co. (Phil.) F ROM a supply viewpoint, stocks of imported foodstuffs were adequate and not burdensome, this being reflected in a general firming of wholesale prices on most commodities. Ample warehouse stocks of canned fruits and vegetables are on hand, and sales are reported slow because of HUME PIPE & ASBESTOS COMPANY — ASBESTOS-CEMENT SHEETS FOR COOL HOMES * NO RUST * NO PAINTING * NO CORROSION * NO MAINTENANCE COSTS CONCRETE PIPE For WATER, SEWER and CULVERT 'HUMEOGENEOUS" Concrete Pipes are of the highest quality and guaranteed equal to A. S. T. M. Specifications. FOR PRICES APPLY TO THEO. H. DAVIES & CO., FAR EAST, LTD. 6th FLOOR AYALA BLDG. MANILA I a~~~~~

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL Al-%W increasing competition from locally-grown fresh fruits and vegetables now available in larger quantities at lower prices. Fresh fruit arrivals have been extraordinarily heavy, and in the absence of sufficient refrigerated storage-space, sales at bargain prices have been necessary to avoid total loss from spoilage. The ready availability of imported fruit at cut prices, has served to reduce consumption of canned fruits, and has also brought about a price-recession on locally-grown fruits. The canned-meat allocations granted to the Philippines by the International Emergency Food Council, has apparently been adequate, for with the exception of corned beef, there is no shortage of any of the canned-meat items regularly consumed in this market. The high cost of fresh meat and an increasing use of bread made from wheat-flour, has resulted in increased consumption of canned meats of all types. The increasing importance of wheat-flour in the Philippine diet, was demonstrated during the past month, when, following the announcement by the IEFC that no December allocation would be forthcoming, a survey of flour-stocks indicated exhaustion by the end of December. The Philippine Government immediately instituted a program whereby all incoming shipments would be commandeered and the distribution made by the Government trading agency, PRATRA, direct to bakers on an allocation basis. This program was discontinued when the IEFC made available a special allocation which obviated the possibility of an acute shortage. The situation with respect to dairy products was generally healthy, with stocks normal and wholesale prices at reasonable levels. Evaporated-milk arrivals were'sufficient to ensure a steady supply, and increased importations of condensed milk have reached a level adequate to cover the market's needs. Substantial arrivals of cheese and cheese-products were recorded, and it is estimated that present importations are sufficient to take care of increased consumption. The arrival of new-pack California canned sardines in quantity, coincided with a shortage of fresh fish resulting from the interruption of local fishing activities by a series of typhoons. Importations to date of canned fish have been adequate for the market's needs, and the maintenance of this import volume will ensure no shortage. Supplies of fresh and imported frozen meats are readily available in unlimited quantities. On the whole, the foodstuff situation in the market is satisfactory with respect to supply and price-level. The continuation of this healthy picture depends entirely upon the maintenance of local purchasing power, which, in turn, is determined by the prices obtained for Philippine exports in world markets. Textiles By JAMES TRAYNOR ___ Fl GENERATL 0ll~~y iI~ Pole vaulting requires perfect muscle control and timing-the result of long and grueling practice. Likewise, your GENERAL H i g hway Truck and Bus TIRE is the result of tireless efforts - in laboratory and proving ground - to give you today's perfect tire. See your nearest GENERAL TIRE dealer today. D URING the month of October the arrivals of textiles from the United States were estimated to be about Distrbutors: 15% higher than in September. The arrivals from Shanghai during October were estimated to be about onethird of the arrivals for September. No arrivals were re- liA *A ported from Japan for the month of October. The market continued to absorb the arrivals at fair to good prices, and during the month new orders placed Hotpoint radlo maike tuning i with American mills were slightly larger than the volume real nctt on "Spe to win" placed during September. Over MIiZR, let's makest a datc Every Sunday night at eight. _ 2 - _~~~~~mr! I - __ ~~~~~~~~~__~~~~~____~~~~~~~~_ _ i.~~~~~~~~~~ --- - J-~~~~~~~~~~~~;~

AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 The New York market continued to be strong with price-rises noted all along the line; the delivery situation with American mills continues to be such that the mills can not ship sooner than three to six months after acceptance of business. Off-take should continue good for the rest of the year due to the approaching holiday season. Drugs, Health Supplies, and Toiletries By FRANK A. DELGADO Assistant General Manager Philippine American Drug Company An article in the December 4 issue of the Manila Daily Bulletin stated that soaps and toilet preparations into the Philippines during the period 1945, 1946 and the first half of 1947. Some of the foregoing items will not be affected as severely as others, inasmuch as soaps, dentrifices, talcum powders, and shaving-creams belong to Class 1 at present carrying only a tax of 5% instead of 20% which is the tax applied to Class 4 items such as perfumes, lotions, pomades, rouge, lipsticks, creams, etc. With a view to preventing the "black marketing" and controlling the distribution of Streptomycin, its imports are at present limited solely to the Philippine Bureau of Health. The wisdom of such regulation is somewhat doubtful in view of the limited quantities which the Bureau can import and distribute. It is a known fact that supplies have entered and are entering the country illegally and have found their way into the market at exorbitant prices. Consumers, unable to obtain supplies through - I- I I - I "... in order to prevent further deterioration of the Philippine foreignexchange position, the administration seeks to jack up the tax on cosmetics from 20 to 50 per cent." Some idea of the effect this would have on the sales of perfumes, cosmetics, and related products, may be gained from the following table showing the import of ARTICLE 1947 (1st six months) Quantity IY9-4 YL* nI I OA. i 1 ai. kilos SOAPS. Toilet and fancy............... Laundry....................... All other soaps................. TOILET PREPARATIONS Creams and balms.............. Dentrifices..................... Face powders................ Perfumes and lotions............ Pomade....................... Rouge and lipsticks............. Talcum powder................ Shaving creams, cakes and sticks. Other toilet preparations'....... TOTAL................... 1,349,807 286,042 80,595 365,436 56,397 77,890 879,386 Value P 1,696,066 151,640 119,534 54,118 1,048,352 119,176 1,796,456 82,542 37,482 924,286 13,844 1,707,222 P 7.750,718 Quantity kilos 1,231,523 663,208 45,443 527,145 292,818 2,089,618 1,223,695 Value P 949,410 224,108 42,261 450,491 1,571,889 879,611 2,930,826 2,152,897 533,730 1,544,131 63,172 2,487,403 48,250 25,688 51,143 228,034 Quantity kilos Value 305,452 192,375 283,371 12,906 7,038 6,857 65,554 130,748 100,676 228,651 79,781 116,020 232,089 4,467 290,941 P13,829,928 P1,461,065 r a I~~~~~~~~~~~~~~~~~I J;I ATLANTIC GULF & PACIFIC COMPANY OF MANILA EXECUTIVE & SALES OFFICE 222 REGINA BUILDING TEL. 2-83-64 ENGINEERING DEPT. & SHOPS PUNTA, SANTA ANA TEL. 8-63-32 * G* ENGINEERS-CONTRACTORS * * 0 DISTRIBUTORS FOR FAIRBANKS MORSE & CO. GARDNER DENVER CO. CHAIN BELT CO. ARMCO INTERNATIONAL CORP. PIONEER ENGINEERING WORKS YORK CORPORATION LINCOLN ELECTRIC CO. WALSH REFRACTORIES CORP. MARION POWER SHOVEL CO. IU I

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNJAL 283 _ I December~~~~~, 197___ AEIA HME FCMEC ORA 8 government channels, are forced to pay these prices. A report from the Office of International Trade of the U. S. Department of Commerce states: "The United States September export-quota for Streptomycin was further raised to 400,000 grams and increased to 600,000 for October. Presently this represents 50% of United States September production, and as the United States continues to expand production, this percentage as a minimum will be the future quota. In fact it looks as though every gram the United States produces in excess of 600,000 will probably be exported, as the United States domestic demand is seemingly not in excess of this amount, whereas export demand is several times the current quota." Legislation, Executive Orders, and Court Decisions BY ROBERT JANDA Ross, Selph, Carrascoso & Janda T HE Congress of the Philippines has not been in session during the past month and there is no new legislation to require comment. The Supreme Court, during the month, handed down its decision in the case of Krivenko versus Register of Deeds of the City of Manila, wherein it held, in a divided decision-six justices voting in favor of the ruling-that an alien was disqualified from acquiring residential property by reason of Article XIII, Section 5, of the Constitution of the Philippines. The reasoning of the majority opinion is roughly that Article XIII, Section 1, of the Constitution, which provides that "all agricultural, timber, and mineral lands of the public domain... belong to the State and their disposition, exploitation, development, or utilization shall be limited to citizens of the Philippines or to corporations or association at least sixty per cent of the capital of which is owned by such citizens..." in using the term "agricultural land" adopted the meaning of that term heretofore used in the public land laws, and that since the public land laws regulated the disposition of commercial and industrial lands of the public domain, consequently, the prohibition contained in the Constitution applied to such lands. Section 5 of the same article of the Constitution provides, "Save in cases of hereditary succession, no private agricultural land shall be transferred or assigned except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain in the Philippines." The Court was of the opinion that the term "private agricultural land" as used in Section 5 should be given the same scope as the term "agricultural lands of the public domain" used in Section 1, and that, consequently, only individuals, corporations, and associations qualified to acquire or hold lands of the public domain in the Philippines could be the assignees or transferees of private agricultural lands. Since Alexander Krivenko, at the time he acquired the residential lot which was the subject of the action, was an alien not qualified in accordance with Section 1, the court held that the purported transfer to him could not be recorded. As of the time of the writing of this article, the decision has not become final. It becomes important for aliens and Americans residing in the Philippines to determine what titles and individuals will be affected by the decision. As Section 5 does not prohibit the holding or ownership of land but only its transfer or assignment, it presumably would not invalidate titles which were lawful at the time they were acquired. Thus, the titles and rights of aliens who acquired real estate prior to the inauguration of the Commonwealth, and of Americans who acquired it or sliall acquire it during the I I*1 I I Business Men who KNOW USE KZRH Here is a partial list of famous American products and firms now using "The Voice of the Philippines" Borden Products Chesterfield Cigarettes Colgate-Palmolive-Peet Company Cashmere Bouquet Toiletries Darigold Milk De Soto Motor Cars Domino Cigarettes Eno Salts Ford Motor Cars Four Roses Whisky General Foods Products Globe Wireless Hallicrafter radios Hotpoint Home Appliances Kentucky Tavern Whisky Kolynos Toothpaste Lever Brothers (Philippine Refining Co.) Libby, McNeill and Libby Products Lightolier Fixtures Lucky Strike Cigarettes Majestic Radios Mennen Baby Powder Nestles Nido Philco Radios Procter and Gamble (Philippine Manufacturing Co.) RCA Communications RCA-Victor radios and appliances Schenley Whisky Sunkist Oranges Sweetheart Soap Swift and Company Vicks products Westinghouse radios and appliances White Horse Whisky Wildroot Shampoo MANILA BROADCASTING COMPANY 7th Floor Insular Life Bldg. I _ KZRH MANILA 10,000 WATTS 750 KC 9640 KC KZMB MANILA 1,000 WATTS 950 KC KZRC CEBU CITY 1,000 WATTS 650 KC 6140 KC

284 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 FOR BETTER SERVICE-Call 2-77-03 ALLIED Brokerage Corporation Manila Port Terminal Building Port Area Documents may be delivered to our representative in the branch offices of MACKAY RADIO & TELEGRAPH COMPANY, Plaza Moraga and Trade & Commerce Building. Individual attention and competent supervision given to your customs brokerage requirements. CUSTOMS BROKERAGE FREIGHT FORWARDING WAREHOUSING TRUCKING HEAVY HAULING period when Americans may be qualified to acquire lands of the public domain in accordance with existing law and treaty, will presumably be respected. With respect to lands acquired by aliens during the Commonwealth where titles have actually been registered in their names, the situation is obscure. Presumably, the transferor would be estopped from recovering the property and the argument for estoppel would be especially strong in cases where the property had been held for a long period of time, where substantial improvements have been erected on the property, or where the value of the same had greatly increased. On the other hand, the Court would undoubtedly decide that the holding of the alien was illegal and must be terminated. Presumably, the Legislature will provide by statute for the orderly liquidation of lands acquired by aliens in good faith and which they must now dispose of. It is further important to determine the type of holding which is affected by the decision. It will be noted that Article XIII, Section 1, prohibits not only ownership, but also disposition, exploitation, development, or utilization of lands. If Section 5 were to be given a similar scope, an alien would not only be prohibited from acquiring title to residential and commercial properties, but he would also be prohibited from acquiring the right to utilization of the same. Since such an interpretation would not only prevent an alien from owning his home or place of business, but would also prevent him from acquiring by lease or otherwise the right to use or rent the house or commercial establishment of another, it is presumed that the Supreme Court will not carry its decision this far. on October 16, 1947, the Bureau of Internal Revenue released General Circular No. V-41 on the subject of the tax exemptions of United States Government civil agencies and the United States citizen-personnel of such agencies. The circular makes the following provisions: " 1. No compensating or specific tax or import duty shall be levied on goods imported by or expressly (earmarked) for any United States agency. "2. The United States Embassy is authorized to dispense tax-free gasoline for the official use of United States Government vehicles. "3. Goods purchased locally by United States civilian agencies directly from manufacturers, producers, or importers shall be exempt from the sales tax. "4. Independent contractors or common carriers rendering services to any United States civilian agency shall be liable to the contractors' or common carriers' percentage taxes imposed under sections 191 and 192 of the National Internal Revenue Code. " 5. Checks, warrants, and export and import drafts by or to the Treasurer of the United States shall be exempted from the documentary stamp tax. "6. Tax exemptions accorded to rehabilitation agencies covered by agreement shall be understood as extended to other civilian agencies of the United States Government operating in the Philippines. " 7. The aforementioned exemptions shall apply only to transactions in the course of the authorized official activities of the agencies. "With respect to United States citizen-personnel of the agencies, the Cabinet, in the light of the provisions contained in the various rehabilitation agreements, established the following rules relative to tax exemptions: "1. No compensating tax or import duty should be levied on articles imported into the Philippines for the personal use of United States citizen-personnel or associations of such personnel. For purposes of this exemption, the term 'articles imported' means articles shipped from the point of origin consigned to such personnel, and does not include articles imported by local dealers or importers, but withdrawn from customs custody by such personnel. "2. Pending the conclusion of a tax convention or similar agreement, United States citizen-personnel shall be exempted from the filing of returns or payment of income tax on salaries received from the agencies with which they are connected. "3. Such personnel shall, however, be required to secure tax clearance certificates, but shall be exempted from the documentary stamp tax thereon, provided they realized no other income aside from salary from the agency concerned. AMERICAN INTERNATIONAL UNDERWRITERS FOR THE PHILIPPINES, INC. ARTHUR H. HENDERSON President Sixth Floor, Wilson Bldg., Manila Telephone: No. 2-64-68 Cable: "Underiters" Managers in the Philippines for:COMMERCIAL CASUALTY INSURANCE COMPANY THE EAST AND WEST INSURANCE COMPANY FIREMEN'S INSURANCE COMPANY THE FULTON FIRE INSURANCE COMPANY GRANITE STATE FIRE INSURANCE COMPANY THE HANOVER FIRE INSURANCE COMPANY MILWAUKEE MECHANICS' INSURANCE COMPANY NATIONAL UNION FIRE INSURANCE COMPANY NEW HAMPSHIRE FIRE INSURANCE COMPANY PACIFIC NATIONAL FIRE INSURANCE COMPANY SECURITY INSURANCE COMPANY Fire and Allied Lines CASUALTY - AUTOMOBILE - MARINE - REINSURANCE

D ecember, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 285 "4. Such personnel shall be exempt from the residence tax if they have no receipts (other than salary from the agency) from business or profession and if they possess no real property in the Philippines. "5. Such personnel shall be exempt from the taxes and fees prescribed under laws and regulations administered by the Bureau of Immigration." The circular also contains forms for use in claiming the exemptions which the Collector has approved. Editor's Note: See also Mr. Hoskins' column, page 269. Philippine Government Corporations From an Official Source OCT. 17-The National Development Company announces that it will publicly demonstrate the use of the rice harvesting and threshing "Combine" at the initial harvesting operations next week at Sabani, Laur, Nueva Ecija, under the Rice and Corn Production Administration. The Petroleum Distribution Association of the Philippines, (composed of the Standard-Vacuum Oil Company, Shell Company of the Philippine Islands, Ltd., Caltex (Philippines) Inc., Tide Water Associates Oil Company, and Union Oil Company of California) organized in 1945 for the purpose of making petroleum products available to civilian requirements on a non-profit basis, and recently dissolved, presents to the Philippine Government checks and notes to the sum of P797,934.20, representing the net proceeds of the Association's activities. The Association paid full taxes on the petroleum products it purchased from the U.S. Army and also covered the expenses of the Commonwealth Ration Board. President Roxas extends "his gratitude for the unselfish efforts of all the member companies". At a conference of social workers of the newly organized Philippine Relief and Trade Rehabilitation Administration, held at Malacanfian, General Manager I. Coscolluela presents a testimonial tablet of appreciation in recognition of the services rendered the Philippine people by UNRRA through the UNRRA Philippine Mission represented by Director F. S. Gaines. He states that the major contributor to UNRRA was the United States which furnished approximately 72% of the funds and that the people and Government of the Philippines "have every reason to be thankful to UNRRA". Acting Executive Secretary N. Roxas states at the same conference that the Philippines received some P24,000,000, "more or less, while Japan and China received approximately P80,000,000 and P3,000,000 respectively." Oct. 18.-Commissioner of the Budget Pio Pedrosa, speaking before the PRATRA social workers, states that following liberation some P3,800,000 worth of relief goods was diverted to the black market, according to the Investigation Committee; such losses in Manila alone are estimated at P2,500,000. He states that the consolidation of relief agencies being effected, directly under the supervision of the President, is a great step in advance, as distribution of relief has in the past been well meaning, but haphazard. Oct. 22-Executive Order No. 99 transfers to the National Abaca and Other Fibers Corporation the administration and disposition of public lands formerly held by aliens or their "dummies"; the lands are to be subdi vided into 10-hectare plots for disposition to qualified applicants. Oct. 24-Executive Order No. 100 designates the Administrator of the Civilian Aeronautics Administration as acting Airport Administrator of the International Airport at Nichols Field, and authorizes him to conduct the ALMOST EVERYTHING FOR CHRISTMAS UNDER ONE ROOF J Sfcop More j y Less Time! e Choice Items for Yuletide- iT Distinctive GiftsIT Everyone will Cherish- - 2 '3c4! TOYS & GAMES 2 BOOKS fl^ ^^Y 1 MAGAZINES 'm e^ CHRISTMAS CARDS l Stn~ti CHRISTMAS DECORATIONS 1 '"l'^; BROWN & HALEY CHOCOLATES 2g~~ '^^^ SOCIAL STATIONERY 2 @ ~~~PICTURES.... SPECIAL GIFT ITEMS fi ^wCome.. Bring the 'K \t^, Children... See what j" r~^^ treasures we have for 1 PHILIPPINE EDUCATION COMPANY f 1104 Castillejos Quiapo, Manila s & OPEN NOONS AND UNTIL 7:00 P.M. M CLOSED SUNDAYS & LEGAL HOLIDAYS T law IS^^^55^ng

AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 * LUZON STEVEDORING COMPANY, INC. MANILA negotiations for the transfer of the field to the Philippine Government by the United States Armed Forces. A revolving fund of P200,000 is created by the Order for the maintenance and operation of the field. Nov. 3-Announced that the Government has designated the National Coconut Corporation as the exclusive supplier of 5,000 metric tons of coconut oil or its equivalent 7,500 long tons of copra, to different world relief organizations. Nov. 14-General Manager Coscolluela, in a conference with some 50 Manila bakery representatives, warns that if the price of bread rises beyond the ceiling-price or the prescribed weight of loaves is reduced, the offending bakeries will be closed and their flour stocks confiscated. Nov. 15-Vicente G. Bunuan is appointed Philippine Sugar Administrator under the Bureau of Commerce. Nov. 21-President Roxas accepts the resignation of Jose Yulo as a member of the Philippine Oil Commission, effective November 10. Mr. Yulo resigned at Elizalde & Co., Inc., of which he is one of the officials, plans to enter a bid for the exploration and exploitation of the Philippine oil resources. Nov. 24-The Philippine Relief and Trade Rehabilitation Administration (PRATRA) releases figures showing that from December, 1946, to October, 1947, total flour imports amounted to 190,637,944 kilos, or approximately 190,638 long tons. The pre-war consumption of this commodity was 7,700 tons monthly, or 84,700 tons for 11 months. Obviously, people are now eating more bread and the importation of complementary commodities like milk and coffee must also increase, says PRATRA. The Office of the People's Counsel is reported to have asked the Public Service Commission to reduce the rates charged consumers by the Philippine Power and Development Company in Laguna, declaring that the increase from the Company's pre-war rates of from 70 to 166% are unreasonable, that the Company's profits "were much in excess of that allowed by law and general practice, and that such profits as are shown are probably less than the actual profits inasmuch as the basis of computation was the book value of the assets, many of which must have been destroyed, lost, or damaged during the war, and not upon a physical inventory of such assets". It is recommended that the rates be deduced by from 10 to 50%. Dec. 7-President Roxas issues Executive Order No. 108 reorganizing the Lighthouse Board to be composed of the Director of the Coast and Geodetic Survey, as Chairman, and of the Commander, Philippine Naval Patrol; the Lighthouse Supervisor, Lighthouse Service, Philippine Naval Patrol; the Surveyor of the Port, Bureau of Customs; the Supervising Port Works Engineer, Bureau of Public Works; the President of the Philippines Shipowners Association, or his representative; and the President of the Ocean-going Steamship Lines Association in the Philippines, or his representative. REPRESENTING FIREMAN'S FUND INSURANCE HARTFORD FIRE INSURANCE HARTFORD ACCIDENT & INDEMNITY CO. THE MANUFACTURERS LIFE INSURANCE CO. CO. CO. Subscribe to-the JOURNAL and keep your files complete. R-307 Myers Bldg. * Port Area * Tel. 2-65-72 L I

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 287 Labor From an Official Source CT. 20-President Roxas receives a delegation from the Manila Railroad Brotherhood Association, which asks him for a definition of the term of office of the labor representative on the Manila Railroad board of di- (| i, i rectors. The President agrees to a two-year term. The present representative of the employees on the board is I P. M. Cruz. Oct. 22-The President issues Administrative Order No. 44 authorizing an automatic increase and payment- adjustment in salaries of all government employees receiving less than P600 a year, to bring them to that |i|I amount, effective July 1, 1947, pending the preparation and approval of the corresponding appointments. Oct. 28-The President authorizes the Commissioner of Civil Service to allow Philippine war veterans and war-...... veteran widows an advantage of 5 points in the civil ser- vice examinations, and disabled veterans, not totally unfit i__ - for government service, 10 points. At a Malacafian conference of the heads of government bureaus and offices, Faustino Sy-Changco, of the Budget Commission, states that it would take P600,000,000 to meet all the "back-pay" of government employees,- There's No Gift So Cherished... arrears resulting from the war and enemy occupation. NO GIFT SO PERSONAL LIKE A All those present are reported to agree that the Govern- T G R A P H ment can not possibly assume such a burden at the present Have a new portrait taken at your favorite studio-NOW! time. ~~~~~~~~~~~~~~~~~~~~time. 11 ~~Courtesy ofCOST OF LIVING INDEX OF A WAGE EARNER'S FAMILY IN MANILA KODAK PHILIPPINES, LTD. BY MONTH, 1945 TO MAY, 1947 104-13TH ST., PORT AREA, MANILA Prepared by the Bureau of the Census and Statistics 1941 =100 Fuel, All F ood use n Light Ies Food Rent oi and laneous (13.94)2 1945 LL BR C PA March........... 559.8 635.5 236.4 1695.2 237.1 674.4 (PHILIPPINES) April............ 598.8 702.1 236.4 1611.9 254.3 661.4 May........... 689.7 799.4 236.4 2041.5 380.7 734.8 CEBU * MANILA * ILOILO June.......... 745.8 872.7 236.4 1860.8 410.8 788.7 July............. 751.5 886.9 236.4 1664.2 393.4 794.1 DAVAO August.......... 724.7 848.5 236.4 1484.5 397.6 774.3 September...... 708.4 852.4 236.4 1034.0 367.7 709.1 October.......... 735.3 937.8 236.4 1045.1 466.1 499.5 November........ 747.8 955.8 236.4 1017.0 480.2 499.9 N A December........ 669.4 852.7 236.4 1030.3 401.9 463.0 GENERAL MERCHANTS 1946 January.......... 603.4 759.2 236.4 984.0 363.8 |434.8 j February......... 547.2 656.3 236.4 940.3 369.5 460.7 March.......... 525.9 631.0 236.4 940.1 340.4 445.2 Cable Address: CONNELL April............ 556.2 684.1 236.4 910.3 345.5 435.9 SAN FRANCISCO TIENTSIN May............. 545.1 675.6 236.4 762.5 342.3 409.6 S FRANCISCO TENTN June............ 538.7 666.4 236.4 737.9 343.3 404.2 LOS ANGELES PENANG July............. 552.7 704.3 236.4 598.9 341.3 364.6 NEW YORK S A I G O N August......... 477.9 590.0 236.4 384.7 320.9 346.3 SHANGHAI BANGKOK September....... 477.9 591.3 236.4 378.7 314.5 347.2 ' HONGKONG B M B A Y October.......... 487.4 587.2 236.4 382.7 405.8 342.7 SINGAPORE VANCOUVER November...... 484.8 607.8 236.4 406.4 346.5 305.2 December........ 461.9 570.8 236.4 371.9 344.7 30C2.1 January........ 394.1 468.2 236.4 381.9 326.2 282.5 1 31 February........ 389.5 454.9 236.4 356.3 344.8 281.4 — March......... 378.6 440.1 236.4 295.2 334.7 279.4. 1 April............ 360.3 413.3 236.4 269.2 328.3 271.6 June............ 358.6 414.4 236.4 236.8 316.6 268.6 July............ 364.1 426.8 236.4 217.7 309.3 269.9 - August.......... 358.0 419.8 236.4 210.2 292.0 269.1 September....... 340.4 392.1 236.4 216.4 283.3 266.8 October......... 331.1 376.9 236.4 212.7 280. 5 267. 7 November...... 329.9 376.3 236.4 215.1 280.5 265.3..... I Weekly average only i Weights

288 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 Fr A PHILCO Radio-Phonograph with AUTOMATIC RECORD PLA YER i_, X Come in and see it on display! IH., IE., lhIEA C ~ C S CC., The Store of Quality 454 DASMARIAAS 13TH ST. & ATLANTA TEL. 2-70-81 TEL. 2-91-89 L dr ~~~~~~~~~~~~~~~~~, Philippine Safety Council FRANK S. TENNY Director, Philippine Safety Council HE President's Traffic Committee has met twice and formulated several emphatic recommendations for executive action. The P.S.C. Director is Chairman of the Administration sub-committee and all ether chairmen are Safety Council members. Main definite accomplishment to date is the assurance of strict mechanical inspection of vehicles when they apply for 1948 license plates. Other equally important advances will be announced shortly. Col. A. M. Tuason is the overall head Modernized Mine Safety Regulations for the Philippines were submitted to the Secretary of Labor last month. Messrs. P. Maliuanag, V. A. Brussolo, and F. S. Tenny of the Safety Council were on the committee which wrote the new rules. Company safety programs are in full swing at Manila Electric Company, San Miguel Brewery, and Elizalde and Company. First phase (driver training) includes instruction of over 700 employees. Lectures, demonstrations, tests, and written materials are used, with films and posters coming. The second phase will concern Fire-Prevention. Secretary Zulueta of the Interior Department will cooperate in obtaining accident data from all over the Philippines beginning in 1948. Another public service which is beyond the planning stage is the testing, investigation, and registration of professional drivers for the protection of potential employers, Traffic-police training of the Rizal City Police Department has been completed and the next unit to receive regular police instruction will be the Customs Patrol Service under Col. Eleuterio Adevoso. Other police units have applied for such training. Fire-prevention and fire-fighting demonstrations are underway through the cooperation of Manila Fire Chief Cruz, the PHILRYCOM Fire Department, Universal Trading Corporation, and Erlanger-Galinger, Inc. The interesting "jeep" fire-engine at Liberty Motors is being used in these events. The "Manila Traffic Guidebook" will be published in January and will contain the latest traffic information, etc. Written by the Safety Director, it will be produced by Advertising Associates, Inc. Another project being worked out with the Motor Vehicles Office, Department of Public Works, is a Driver's Training School. Safety Council members now number 94, with the 1947 goal set at one hundred; 15 Rotarians are members, as well as 21 who hold executive positions in the Philippine Government. 1948 memberships will be on either a company or an individual basis. A brochure outlining privileges and obligations of membership is now being prepared. Other Chambers of Commerce Philippine Chinese General Chamber of Commerce ONE hundred and fifty delegates, representing the different affiliated Chinese chambers of commerce and trade organizations throughout the Philippines, assembled in convention in Manila in the first post-war congress last October 4, 5, and 6. Mr. Alfonso Z. Sycip I clear copies +*** Oil Mimeograph 90 duplicator... dependable... hand-operated...Will produce a few.. or a few thousand copies... neatly... speedily... economically... in your own office... Come in today and see it in action! 374~ * Sole Distributor: Erlanger & Galinger, Inc. OFFICE SERVICE DEPARTMENT Ground Floor, Calvo Bldg. 210 13th Street, Port Area 60 Escolta, Tel. 2-80-60 Tel. 2-89-21 i c ----— ~~~~~~~~~~

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 289 and Mr. Sy En, President and Vice President of the Philippine Chinese General Chamber of Commerce, presided over the convention. His Excellency Chen Chih-Ping, minister plenipotentiary and envoy extraordinary of the Republic of China in the Philippines, delivered the keynote speech at the opening ceremonies held in the main hall of the chamber quarters on Rosario Street. Messrs. Sycip and Sy En also greeted the delegates, and their remarks were followed by brief responses of the heads of the provincial delegations. The main purposes of the convention were: (1) promotion of a closer friendship and amity between the Filipinos and Chinese in line with the newly concluded treaty of amity and good relations between the two republics; (2) finding ways and means of restoring accepted business ethics which the last war greatly affected; (3) improvement of business in general; and (4) solution of the problems affecting Chinese communities throughout the Philippines. Plenary and sectional discussions on these various problems were held. Also taken up during the three-day meeting were present business conditions in China. A resolution was adopted and sent to the President of the Republic of China pledging support to the Nanking Government, but urging that steps be taken to better the general administration of national affairs. Visits to the Commercial Air Lines (CALI) terminal at the Makati Airport, to the Chinese Legation building in Rizal City, and to the site of the Chinese Chamber of Commerce Building under construction on Benavides Street were conducted under the direction of Chamber officials. Minister Chen, on this occasion, laid the cornerstone of the latter four-story edifice. Greatly enriched by the exchange of views and the fellowship enjoyed during the convention, the Chinese business men and merchants returned to their respective communities by boat, plane, train, and automobile. YANG SEPENG, Executive Secretary. Manila Chamber of Commerce SINCE I last wrote you about the activities of the Manila Chamber of Commerce, considerable progress has been made in the reorganization of our Chamber. Definite arrangements have been made for Mr. T. H. Harrington to come out as our permanent secretary. Mr. Harrington has telegraphed from London that he will be sailing for Manila by S.S. Canton on January 16. All those I I I i I I i I i I I I I I I i Ii i I I I i I i i i i For Happy Days Ahead! 01D TAYLOR ^ KENTUCKY STRAIGHT BOURBON WHISKY Marsman &Co.,Inc Trade & Corn ldg. ld 'anila, TeL 2-7S-0.1 I BRING YOUR FORD "HOME" TO YOUR FORD DEALER FOR SERVICE THAT SATISFIES I 6 m — ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ AGENCIES CHARTERS SALES TELEPHONE 2-80-39 AMERICAN STEAMSHIP AGENCIES, INC. i YOUR FORD DEALER KNOWS YOUR CAR BEST MANILA TRADING & SUPPLY CO. PORT AREA MANILA I MANILA, SHANGHAI, SINGAPORE, GUAM The MANILA TRADING takes you "Out Front"with FORD every Thursday, 7:00-7:30 P.M. Over Station KZRH. CABLE ADDRESS: "AMERSHIP 314 MYERS BLDG. PORT AREA MANILA AFTER WE SELL, WE SERVE F - - _ _ _ _ _ - - - - - - ~~~-~ — ` - -'- ____ ____ ____ ____

2900 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 19477 A. - %X 9Qn AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 who remember how ably Mr. Harrington served as Secretary of the Manila Chamber of Commerce before the war, will be glad to hear that he is returning. The Manila Chamber of Commerce now looks forward to being able to give its member firms the service it provided before the war. S. CRAWFURD, President Spanish Chamber of Commerce of the Philippines A few interesting figures have reached us on import and export between the Philippines and Spain for the years 1945 and 1946, and, as statistics of the past are useful to picture the future, we believe that it is timely We see that exports from Spain to the Philippines in 1946 were about 30% larger than the imports that year, and almost 90% larger than the exports during the preceding year. In normal times, the balance of trade between the Philippines and Spain is always noticeably in favor of the Philippines, Spain buying more than it sells here. JOSE M. ROSALES, Secretario SUBSCRIBE TO THE JOURNAL and keep your files complete to give them hereunder: These figures show that the "monopolized" commodity - Philippine tobacco-leaf, purchased by Spain to supply, jointly with tobacco from other countries, the Spanish Monopoly factories-formed the bulk of the 1946 imports to Spain: over 600,000 kilograms valued at 1,063,514 gold pesetas. That was the first year since Liberation when the Philippines could resume the export of leaftobacco to Spain. During 1945 the war prevented imports from the Philippines, and therefore there are no figures for that year. On the other hand, export to the Philippines started in 1945, and this increased considerably during 1946. 1946 IMPORT EXPORT Value Value Tariff Quantity Pesetas Quantity Pesetas class Kilograms Gold Kilograms Gold I. Minerals, earthen materials and sub-products.................................. - 158,714 71,368 II. Lumber and other vegetation used in the industry and its manufactures........... - - 9,736 41,957 IV. Metals and their manufactures.......... - - 4,108 84,323 V. Machinery, equipment, and vehicles..... 5 134 1,992 16,784 VI. Chemical products and sub-products..... - 140,959 231,023 VII. Paper and its manufactures............. 87,423 501,492 VIII. Cotton and its manufactures........... - 30,546 196,364 XI. Silk and its manufactures............... - - 36 7,720 XII. Food products and beverages........... 68 103 486,847 1,701,037 XIII. Miscellaneous........................ - 24,733 259,967 Monopolized commodities (tobacco leaf).. 659,820 1,063,514 -- 1946............................. 659,893 1,063.751 945,094 3,112,935 1945............................. - -- 99,202 262,790 I. I i I i i i i I i I iI i i i i I i I i I m i I For A Special Gift On Christmas BELLOWS BOURBON BLEND Marsman & Co., Inc Trade & Com. Bldg. 0I1^" Manila, Tel. 2-73-09 i I I Ii I i I I i I i i I MENZI & CO., IN GENERAL MER CHANTS IMPORT EXPOI INSURANCE J. M. MENZI BUILDING Corner Reina Regente & Soler Streets C. RT i IILOILO MANILA CEBU.1 -- - --- - ` - - — ---- - -- -' - `- ---- " ------- L ----e ----- - --— -`- —` — -- -------- I ---- --- —

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 291 Status of City Planning (Continued from page 266) street from Rosario to Plaza Santa Cruz. This proposal is also now a city ordinance. The Planning Commission has approved the widening of Rosario to 28 meters to assure an important street connecting Taft Avenue with the existing wide Reina Regente and Manuguit on to the North Road. It is recommended that several months before the new Jones Bridge is opened to traffic, the necessary right-of-way acquisition be started on the east side of Rosario. The owners of these properties have long had notice of this program and no permits for permanent buildings have been granted in the proposed right-of-way. Since the war-destruction was largely on the east side of Rosario and since the street needs widening on this side to bring the center line in conformity with that of the Jones Bridge, it seems sensible to widen on one side only and to assess the properties on the west side for a part of the improvements of the street. In the interest of solving the traffic problem on Plaza Santa Cruz, it was proposed not to rebuild but to eliminate Santa Cruz Church. This building not only interferes with the traffic in a congested section of the city, but, in the opinion of the Planning Office, has outlived its purpose and is not sufficiently historical to warrant reconstruction. Churches have little place in such a crowded, noisy section of the city; they should be situated in residential areas in the center of residential communities or neighborhoods. The contention of the planners, however, met with bitter opposition, and the Planning Office lost its fight. Instead of achieving an open plaza for the heavy traffic of the Santa Cruz area, it has been necessary to devise a substitute scheme as shown in the Down-town Plan. In place of a plaza, a one-way street will go around the Consolidated Building and the new Santa Cruz Building, using the filled Estero Regente for the western half of the loop. The seething congestion around Quiapo can be alleviated by the gradual extension of the Quinta Market into the section marked "K," east of Elizondo Street and south of Arlegui. This solution gives more space and makes it possible to include off-street parking and unloading space,-a vital requirement if large markets are to operate in congested areas. This will place the Quinta Market on the perimeter of the down-town area instead of in the heart of it, a much more convenient location for the people of Quiapo and San Miguel. The Dulumbayan Market on Azcarraga will be expanded to the south and away from this busy street. Offstreet parking- and loading-facilities should do much to improve this market area. I I - ---- PORTRAIT & COMMERCIAL P1-4OTOGRAPHY IN TH-l MODERN MANNMEI BY I C(as. 1W/ AdLft~ STUDIO, INC. 809 TAFT AVE. MANILA I I HEADQUARTERS FOR PRODUCTS Also Distributor for: LESTER PIANOS MALLORY PRODUCTS PROCTOR APPLIANCES BELTONE HEARING AID RADIOS * RADIO-PHONOGRAPHS * VICTOR RECORDS RADIO PARTS * LESTER PIANOS * REFRIGERATORS COMMERCIAL REFRIGERATORS * WASHING MACHINES PUBLIC ADDRESS SYSTEM * 16 MM. PROJECTORS PHILIPPINE ELECTRONIC INDUSTRIES, INC. REGINA BLDG., MANILA I MANILA SHIPYARD, DRYDOCK AND ENGINEERING CO. OFFERS COMPLETE SERVICE REPAIRING, BUILDING AND OUTFIT'rING ALL TYPES OF VESSELS. FLOATING DRYDOCK AVAILABLE AT ALL TIMES. 250 TONS CAPACITY. OFFICE: ROOM 507 INSULAR LIFE BLDG., MANILA. PHONE: 2-89-06 ---

292 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 DE LA RAMA LINES UNSURPASSED SHIPPING SERVICES THROUGHOUT THE PHILIPPINES DIRECT EXPRESS SAILINGS TO AND FROM BOTH COASTS OF THE UNITED STATES AND TO AND FROM CHINA AND HONGKONG THE DE LA RAMA STEAMSHIP CO., INC. Head Office HONGKONG & SHANGHAI BANK BUILDING MANILA BRANCHES AND AGENCY ARRANGEMENTS THROUGHOUT THE WORLD The Zoning Ordinance will require that each new commercial and industrial establishment meet at least a part of the parking and unloading problems which it will generate, in the building itself or near it. Parking lots will be recommended, particularly on government lots occupied before the war by city and national government offices which are to be moved to the civic center or the National Capital. Controls as to height, bulk, coverage, and use are also incorporated into the Zoning Ordinance. The necessary public hearings, as stipulated in the Planning Law, have been held for the Down-town Area, and the plan has been transmitted to the Municipal Board for adoption. The Board has already adopted the sections involving the following streets: Escolta from Escolta Bridge to Nueva; Dasmarifias from the Bridge over Estero San Vicente to Rosario; San Vicente; T. Pinpin; Nueva from Escolta to Dasmarifias; David from Dasmarifias to Muelle del Banco Nacional. The second section of Manila to be planned was the Tondo-San Nicolas area. This section of the city so pitifully in need of relief from congestion and fire-hazard, is considered important as an industrial-residential community to serve the North Harbor as the pier and industrial development there proceeds. To avoid too much displacement of the present population, the technique of masshousing is recommended. One of the principal aims of the planners in the Tondo-San Nicolas area, is properly oriented fire-breaks and open spaces. This plan has also gone through the mill of the Planning Office and the Commission, and is awaiting action by the Municipal Board. A fter Tondo and San Nicolas, followed plans for Ermita and Malate, which have cleared the Planning Commission, as have the plans for Paco, Santa Cruz from Zurbaran to the railroad tracks, San Miguel, Quiapo, and Sampaloc. The approvals of the plans for these areas have been or will soon be transmitted to the Municipal Board with the recommendation that they be adopted as city ordinances. Plans for Santa Ana and Pandacan are ready for public hearings scheduled for November 29 and December 6. Plans for the other areas of Metropolitan Manila, including Malabon, Grace Park, San Francisco del Monte, Quezon City, San Juan, Mandaluyong, San Pedro Makati, and Rizal City are in the preliminary stages. Public hearings will be held as time permits. In all these sections of the city, the planners have tried to preserve or create decent living, working, and playing conditions. Within the Major Thoroughfares pattern, are envisioned communities consisting of from 20,000 to 30,000 people. The nerve-center of each community will be the high school and, wherever possible, its adjacent large play-park. Full-time use of high-school facilities, I I I CONTRACT BONDS We have successfully underwritten all types of Fidelity and Surety Bonds, including Contract Bonds. More than thirty years experience and service as originating company for such large bonds as those covering CONSTRUCTION OF PIER NO. 9 NORTH HARBOR BREAKWATER STREET PAVING OF NORTH HARBOR REMODELLING OF THE MANILA HOTEL OAK ROOM AND TINDALO ROOM Rehabilitation of the following styreets: i I I i i I i I I I i I i I i i I i i I i I I I Dagupan Labores Vito Cruz P. Burgos Blumentritt Herran Trabajo -Marques de Comillas Tayuman Tejeron and many others THE PHILIPPINE GUARANTY CO., INC. Offices at the Third Floor, Insular Life Bldg. Plaza Cervantes, Manila Tel. No. 2-81-12 — `- --- ~~-I 1 MOTOR SERVICE CO., INC. AUTOMOTIVE PARTS * ACCESSORIES GARAGE & SHOP EQUIPMENT BATTERIES * TIRES * TUBES 1 230 13th ST., PORT AREA TEL. 2-65-27 - --

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 293 particularly libraries, auditoriums, gymnasiums, and grounds by out-of-school children and adults, will be recommended for off-school hours. A community market should be centrally located, so also such services as are provided by a branch post office, sub-police station, cinema, branch bank, branch library, health and puericulture center, and other conveniences which will relieve the congestion in the down-town area and provide safe facilities within walking-distance of the community. Light industrial developments will be located in designated consolidated areas on the perimeter of the communities, wherever feasible. A community will consist of five or six neighborhoods, each of which will contain approximately one thousand families. The nucleus of each neighborhood will be an elementary school and playground. Through-traffic will be diverted into the major thoroughfares or inter-neighborhood roads. Designated local shopping-centers will be within easy walking-distance of each residence. Zoning will prevent the infringement of commercial and industrial interests upon the residential areas. The Planning Commission has designated for all of Manila a Civic Center and Central Park bounded by Isaac Peral on the south, Bonifacio Drive on the west, the Pasig River on the north, and Marquez the Comillas on the east, with the expansion east along the River toward Malacafian Park. A new City Hall will dominate this Civic Center, together with a public auditorium, library, and museum-landscaping-advantage to be taken of the Bay, the River front, Paco Cemetery, and the Walled City. A parade-ground is recommended for Wallace Field, with a permanent review-stand near San Luis. A concert-area with band-shell, is the recommended treatment for the Luneta. A botanical garden will be developed in the Sunken Gardens and the area south of the Post Office along the Pasig. No Public buildings are recommended for the vicinity of Plaza Lawton. Traffic will always be a problem there, and buildings only add to the congestion. Intramuros will become a historical park, in coordination with the Civic Center and Central Park, and will symbolize the three hundred years of Spanish rule in the Philippines. Its walls and structures are considered one of the most historical erections in the Far East. Old churches, public buildings, and other structures will be restored in the original architectural style. Some of these buildings might be used as Spanish libraries or as repositories of Spanish art. The open spaces in this historical park will be planted to trees, shrubs, and lawn. The old street-pattern will be respected wherever possible, but there will be no place for ordinary residences in this park. The Planning Office is recommending that private property within Intramuros be exchanged through the Real-Property Board for other government land. Meanwhile leases on a I SILVER AND JAVA SILVER LINE, LTD. London, E. C. 2 KERR STEAMSHIP CO., INC. General Agents 17 Battery Place New York PACIFIC LINES JAVA PACIFIC LINE N. V. S.M. "Nederland" N. V. Rotterdamsche Lloyd Amsterdam -Rotterdam JAVA PACIFIC LINE, INC. General Agents 25 Broadway New York MANILA ILOILO To and From CEBU VANCOUVER SEATTLE PORTLAND LOS ANGELES AND SAN FRANCISCO and To and From BOMBAY AND CALCUTTA SILVER LINE, LTD. KERR STEAMSHIP COMPANY, INC., GENERAL AGENTS 17 Battery Place, New York 4, N. Y. FR OM U. S. ATLANTIC COAST PORTS TO MANILA FROM PHILIPPINES TO I I IAIJLIFAX AND U. S. ATLANTIC COAST PORTS For Particulars See: ROOSEVELT STEAMSHIP AGENCY, INC. d F, AGENTS 3rd loor Trade ommerce B., Jan Lun Tel. 2-82-1 WHAT'S NEW... in...SPORTSWEAR 9c SPORTING GOODS 3 HABERDASHERY * FIREARMS AND AMMUNITION... MEN WHO KNOW, SHOP AT"Sportsmen's Headquarters" \ iaI \ I I THE PETER PAUL PHILIPPINE CORPORATION IS PLEASED TO ANNOUNCE THAT THE MANILA OFFICE HAS TRANSFERRED TO THE MANILA PORT AREA FACTORY OFFICE - - CANDELARIA, QUEZON MAIN OFFICE ---— MOTOR SERVICE CO. BLDG., CORNER 13TH & BOSTON STS., PORT AREA i 89-91 E S C 0 L T A L I I J I -— 1 ~ _

294 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 Complete Coconut Oil Mill Extraction Machinery EXCLUSIVE DISTRIBUTORS "ANDERSON" - Expellers "ENTERPRISE" - Grinders "SHRIVER" - Filter Presses "LINKBELT" - Bucket-Elevators CONVEYING EQUIPMENT "WHITNEY" - Roller Chains "MT. VERNON" Filter Cloth "FAFNIR" - Ball Bearings TANKS - PUMPS SHURDUT MILL SUPPLY CO., INC. 446 Dasmariinas Phone 2-76-1-3 Manila I I 10-year basis for warehouse-building, are recommended, based on the consideration that warehouses constitute the most appropriate structures for a short-term leases and that such buildings in this section will be valuable until the North Harbor is in full operation. If at the end of 10 years the Government is not in a position to carry out the historical program, a renewal of the permit, perhaps for a shorter term, would be in order. To grant longer leases might block the possibilities of preserving this most historic part of Manila. In addition to the complicated planning for Manila, the Planning Office has prepared plans for Cebu, Iloilo, Baguio, San Pablo, Dagupan, Tarlac, San Fernando (La Union), and some thirty other cities and towns throughout the Philippines. Local planning boards have been appointed by the National Planning Commission for Cebu and Zamboanga. Such boards are in process of formation for other cities. The membership includes four civic minded nontechnical individuals, a member of the city council, and the city treasurer. The district engineer, in each case, has been appointed as director to prepare plans for submission to the planning board. The National Commission offers all possible assistance, but delegates most of its authority to these local planning boards. Cities have been in the planning spotlight because of the war-destruction, but some progress has also been made in preliminary regional planning, and the ground-work is being laid for national planning. Rehabilitation of the Petroleum Industry (Continued from page 263) Concrete or other types of hard-surfaced roads are being laid through all the terminals. It is estimated that the payroll for local debris-removal and local construction to date by the oil companies in Pandacan, roughly amounts to P3,500,000. Operating and maintenance costs, which represent local payrolls and local purchases from April, 1946, to the present, are estimated at P4,000,000 in addition. The above resume of the rehabilitation program of the oil companies' terminals, refers to Manila only. Similar work has been done or is in the final stages of completion at Cebu, Davao, Iloilo, Poro, and at other inland relaydepots placed at strategic points throughout the archipelago. In brief, the oil companies are doing everything in their power to make petroleum products, at all places throughout the Philippines, available for public requirements at the least cost, and it is a pleasure to state this program is well on the way to final accomplishment. The petroleum industry is progressive! S. N. PICORNELL & CO. STOCK AND SHARE BROKERS MEMBERS —MANILA STOCK EXCHANGE 301 AYALA BLDG. CABLE ADDRESS: TEL. 2-66-79 "BROKERAGE" - SHELLUBRICATEPerfect balance is hard to attainharder to maintain, and hardest to explain. BUT ITS PRESENCE IS KNOWN BY THE PRODUCTS' PERFORMANCE. There's a SHELL PRODUCT for Every Purpose THE SHELL COMPANY OF P. I., LTD. MANILA CEBU 1101LO DAVAO.L 11 A II;

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 295 The Double-Taxation Issue THE PHILIPPINE AMERICAN CHAMBER OF COMMERCE Incorporated 50 Broad Street New York 4, N.Y. November 20, 1947 The American Chamber of Commerce of the Philippines 512 Insular Life Building Manila, P. I. Attention: MR. FRED H. STEVENS, President Gentlemen: On October 23, 1947, we acknowledged, by airmail, receipt of your letters of October 8 and 10 concerning the proposed revision of U.S. Internal Revenue Code and stated that we would keep you informed of developments. The following is a report of action taken to date: (a) On November 3, 1947, Mr. Ewald E. Selph called at the Chamber offices and at that time tentative arrangements were made for meeting with representatives of the Chamber and the National Foreign Trade Council, Inc. to plan ways and means to continue the campaign for revision of U.S. Internal Revenue Code, and to take action on your letter of October 8 in reply to the letter of Mr. Colin F. Stam of the Joint Committee on Internal Revenue Taxation. (b) On November 14, 1947, a luncheon meeting was held at India House which was attended by the following: Mr. Mitchell Carroll Mr. Felix Dayton Mr. E. L. Behr, Jr. Mr. M. D. Thompson Mr. Ewald E. Selph Mr. F. M. Satterfield Col. John F. Daye A decision was reached at this.meeting to make recommendation to the Board of Directors of the Philippine American Chamber of Commerce and the Philippine Committee of the National Foreign Trade Council, Inc. that it was advisable to continue the campaign if we are to meet with success. I ------- WATSON FILING CABINETS 4-DRAWER LEGAL SIZE FILING CABINETS WITH AUTOMATIC LOCK P255.00 each delivered in Manila All Watson 4-drawer-height files have a uniform height of 51-7/8 inches and a standard depth of 26-1,/2 inches. Heavy gauge steel, welded construction, both horizontal and vertical bracing give rigidity and strength. All ball-bearing progressive type suspension allows drawer to be pulled out and in with the minimum of effort and wear. F. H. STEVENS & CO. El Hogar Filipino Building Manila, Philippines r I I -- - - ------- ---- ------ Season's GreetingsFrom AMILTON-BROWN GREAT EASTERN HOTEL BLDG. I I I I -' — --- — I -—. - I I NATIONAL RECEIVERS are now obtainable from RADIO ELECTRONIC HEADQUARTERS. When you want the finest in Short-Wave reception coupled with trouble-free service, get a NATIONAL. 33 years experience building radio equipment. Remember, NATIONALS are built to a quality standard, not to a price. RADIO ELECTRONIC HEADQUARTERS 821 Misericordia, Manila Tel. 2-94-21 i Distilleries Co., Incorporated, Louisville, Kentucky Sole Importers SORIANO TRADING CO. M. R. S. Bldg. Tel. 2-79-61 AA I ----- -------- I~~~~~~~~ I

296 AMERICAN CHAMBER OF COMMERCE TOTTURNAT. TPi-pralkhr 1 iA17 -- A-Putxlllucl-, 1!:F-ti I L IS~ TE4t U-w m~ s toask for BOTTLD iN THE U. S A. FOUR ROSES! Fine American Whiskey. Preferred throughout the Americas.1 (c) On November 19, 1947, the subject was presented to the Board of Directors of the Chamber at a regular meeting by Mr. M. D. Thompson, Vice-President of the Chamber, and Chairman of the Philippine Committee, NFTC. The Board decided that vigorous action should be continued. However, no decision was reached as to what steps should be taken until the matter had been discussed with Congressman W. Sterling Cole who introduced a bill, H.R. 4208, in the House of Representatives on July 4, 1947. (Copy enclosed for easy reference) We will do all we can to have the Cole Bill reported out favorably by the House Ways and Means Committee. Congress is now in session, but there is very little hope that this matter will be considered until the regular session next January. (d) On November 20, 1947, Mr. Thompson and Colonel Daye met informally with a representative of the NFTC to draft a letter to Congressman Knutson replying to Mr. Stam's arguments. Your letter of October 8 which covers the subject admirably will be forwarded with our letter. We shall, of course, send you a copy when it has been dispatched. Just prior to the meeting on November 14, 1947, information was received to the effect that the so-called Magill Committee submitted to the House Ways and Means Committee a recommendation to continue for a limited time the benefits of Section 251 of the Internal Revenue Code. This information was released in our bulletin No. 47-68 of November 14, 1947, copy enclosed. You may rest assured that both the Chamber and the NFTC will do everything possible to remedy the present unsatisfactory situation. It is quite possible that we shall require further assistance (not financial) from you, but suggest that no further action be taken by you until we advise in what form that assistance should be. However, we would welcome any advise or suggestions you may care to offer. Yours very truly, (SGD.) JOHN F. DAYE Secretary. JFD:TC Endcls. 2. SWAN, CULBERTSON & FRITZ BROKERS IN LOCAL AND FOREIGN SECURITIES Member-Manila Stock Exchange New York -- San Francisco Correspondents - Honolulu - Uruguay Shanghai --- Hongkong 701 S. J. WILSON BLDG. 1 2-74-55 143 JUAN LUNA 2-80-53 Sole Importers SORIANO TRADING COMPANY M. R. S. Bldg. - Tel. 2-79-61 - Manila AA.1 II. L I I -— I TELEGRAPH TO ALL THE WORLD AND SHIPS AT SEA co aeI OFFICES: PLAZA MORAGA 306 13th Street, Port Area 2-79-00 Ext. Consolidated Investment Bldg. Plaza Goiti 1749 Azcarraga 2-79-08,, 918 San Nicolas 2-79-09,, t 16p

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 297 80th Congress H. R. 4208 1st Session IN THE HOUSE OF REPRESENTATIVES July 15, 1947 Mr. Cole of New York introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend section 251 of the Internal Revenue Code. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 251 of the United States Internal Revenue Code is amended by inserting in subsection (a) (1), (a) (2), and (a) (3) after the words, "possession of the United States", the following: "or effective July 4, 1945, the Republic of the Philippines". Excerpt from Balletin No. 47-68, November 14, 1947. SECTION 251, U.S. INTERNAL REVENUE CODE The following was released by the National Foreign Trade Council, New York, on November 1C, 1947: "You will be interested in the following excerpts from the report of the so-called Magill Committee submitted to the House Ways and Means Committee, particularly the final paragraph, No. (6), dealing with Section 251 of the IR3. 'THE REPORT OF THE SPECIAL TAX STUDY COMMITTEE (REFERRED TO AS THE MAGILL COMMITTEE) SUBMITTED TO THE COMMITTEE ON WAYS AND MEANS, UNITED STATES HOUSE OF REPRESENTATIVES, NOVEMBER 3, 1947, UNDER THE GENERAL SUBJECT OF REVENUE REVISION 1948, CONTAINS THE FOLLOWING RECOMMENDATIONS ON FOREIGN TAX CREDITS: '(6) Under Section 251 of the Code, citizens and domestic corporations carrying on business within possessions of the United States enjoy certain benefits. Despite the recent grant of independence to the Philippine Islands, the benefits should be continued for a period of years with respect to that former possession. At the present time, citizens and domestic corporations, which benefited from these long-standing provisions, are suffering severe competitive disadvantages from Philippine and other foreign corporations to the detriment of our own export trade.' "NOTE: The House Ways and Means Committee set out in May 1947 to plan a thorough revision of the entire federal tax structure for presentation to the second session. Chairman Knutson (R-Minn.) said the objective was to harmonize all the federal revenue acts of the past 15 years. "The Committee recruited an 11-man advisory board from business, labor, agriculture and economic circles to assist in this task. The board is headed by Roswell Magill, former Under Secretary of the Treasury." I I I I I C. F. SHARP & COMPANY, INC. OPERATORS * STEAMSHIP AGENTS * SHIP BROKERS GENERAL ORIENTAL AGENTS: * WATERMAN STEAMSHIP CORPORATION Mobile, Alabama THE IVARAN LINES -FAR EAST SERVICE (Holter-Sorensen - Oslo, Norway),, General Agents for: PACIFIC ORIENT EXPRESS LINE (DITLEV-SIMONSEN LINES) Norway (TRANSATLANTIC STEAMSHIP CO., LTD.) Sweden GENERAL STEAMSHIP CORPORATION San Francisco SIMPSON, SPENCE & YOUNG New York V. MUELLER Kobenhavn, Denmark Head Office: Branch Offices: 5TH FL., INSULAR LIFE BLDG. SAN FRANCISCO-SHANGHAI MANILA, PHILIPPINES SINGAPORE-PENANG TEL. 2-S7-29 YOKOHAMA-KOBE 2-96-17 FUSAN (KOREA) Cable Address: "SUGARCRAFT" all offices 0.......... F YOUR BELOVED ONES will be VERY to a ~.,. a MA HAPPY if as X'MAS GIFT you'll present them with a HOMESITE contract with Magdalena Estate, Inc. At around 10 minutes from the heart of Manila, we have high lots from 300 to 5,000 sq. m. P6.00 per sq. m. and up. 20% down and rest payable in monthly installments. GDALENA -1 TOPS IN L OTOGRAPH COMMERCIAL PHOTOGRAPHY list~~~~~~~~~~ ~-.;..........;.... I Manila Railroad Bridge (SEE US FOR ANYTHING PHOTOGRAPHIC) IIm 464-466 DASMARINAS M A N I L A ESTATE, INC. Consolidated Investments Bldg. R-211 Plaza Golti, Manila Official Photographers for AMERICAN CHAMBER OF COMMERCE JOURNAL

298 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 298 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 Business Book Reviews ONE WORLD IN THE MAKING: THE UNITED NATIONS-by William G. Carr, Consultant, United States Delegation, United Nations Conference, San Francisco; Deputy Secretary-General, Conference for the establishment of the UNESCO, London. Ginn and Company, 1946, P3.00. NOWADAYS a liberal-minded citizen becomes depressed when he thinks of the United Nations and its chances of keeping the peace. Nevertheless, about the best thing that he can do is to study that organization and try to understand it thoroughly, in the hope that it will be made effective. Toward this end, this little book should go a long way. In physical appearance, this book is awkward and outsized. Its pages are 8-1/2 by 11 inches, its cover is anything but imposing, and it looks like a student's typewriting-text turned sideways. The odds are that, if you saw it lying on a desk, you would not open it to look inside. That would be a mistake. For this book makes it very easy to understand the United Nations Charter. It is probably the most intelligible and simplest exposition of the Charter that has been printed; it cuts through all the diplomatic doubletalk, and that is no small achievement. You have probably guessed that the unique intelligibility of this book is connected with the awkward shape and unimpressive appearance. The text of the Charter is printed in the center of the double-width pages; explanations of the charter are printed in the margines both at the left and at the right. These marginal notes form a running commentary which explains the specialized language of the charter, elaborates the ideas, and comments on the motives and intentions of the signatory nations. There is nothing final about this book, nothing spectacular, but it is perhaps the most effective starting point for a practical understanding of international organization. OTHER BOOKS ON THE SUBJECT: PEACE, SECURITY, AND THE UNITED NATIONS, by Hans Morgenthau, 1946, P3.45. Evaluates the UN charter in terms of political factors which may bring success or failure. THE UNITED NATIONS CHARTER, P1.10. A pamphlet published in England by the National Peace Council. It con tains Comments by David Mitrany, Gilbert Murray, G. D. H. Cole, Norman Bentwich, Rita Hinden, and text of the Charter. UNITED NATIONS GOVERNMENT, by Amos Peaslee, 1945, P4.60. A collection of addresses discussing the fundamental legal aspects of the UN. I I. I I I I JTHAT WEARS LONGER THAN PREWAR TI RES! I i ------- I Ebk f4 Long-wearing tread-Its wider, flatter tread gives greater protection against skidding. a 35% Stronger... The new tire has more and better cords, which give a tire body that is stronger, wears longer. it Over 16,800,000 miles of tests under all ' conditions helped prove the new tire wears longer than prewar tires. X1 - I I. I,,A l 0 4 ~I, 6

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 299 The "LET YOUR HAIR DOWN" Column IT is interesting and instructive to note how even big financial institutions watch the pennies. Last month, in this column, we mentioned that the New York Office of the National City Bank of New York had asked the Manila Office of the Bank to take delivery here of the monthly issues of this Journal and forward them to New York by air-mail. Postage, P4.00 for each issue. We naturally took pridle in the fact that the Journal was wanted so much. But here the sequel, as initiated in another letter from the Manila Office of the Bank: DEAR SIRS: " We refer to our New York Office subscription to your Journal. As arranged, your issues are now being delivered to us, and we in turn forward them to New York by airmail. Since we have paid you for a year's subscription at the rate of a foreign subscription, we trust that you will have no objection in extending it to two years. "Yours very truly, "E. J. CARVAJAL " Pro-Manager" There is an instructive lesson in this, not to say a moral. And we were definitely at fault in not having thought of extending the subscription ourselves without having to be asked to do so. The editor and manager immediately issued an order to extend the subscription by a year, but a genius in the office brought up the point that two issues had already been sent to New York by ordinary mail anJ that therefore the Bank was entitled to only a ten-months' extension under the new arrangement. A second genius, however, declared more accurately that since the New York Office had already received two issues in the ordinary manner, 2/12 of the subscription had been filled, valued at 2/12 of P10.00, or P1-2/3, leaving a balance of P8-1/3, and that this entitled the bank to only-8-1/3: X:: 5: 12, or just 20 issues. Moral or no moral, and refusing to take the matter from an aridly mrathematical point of view, the editor and manager told his two assistants to forget it. A letter from Mr. E. A. Perkins on a certain matter that has been "taken care of", ended with the line: "The Journal has certainly picked up". Mr. Samuel Fraser, Philippine Manager of the Columbian Rope Company, Davao, added the following postscript to one of his recent letters to the Chamber: "I think your Chamber of Commerce Journal is the best that the Chamber has ever put out." The Italian Charge d'Affaires in Manila wrote to say that he finds the Journal very interesting and to suggest that we exchange publications with the Instituto del Commercio Estero in Rome and the Camera di Commercio Italiana per 1'Estero in Milan. Similar letters were received from a number of other consulates and foreign business houses in Manila. We are also beginning to get quite a number of subscriptions from Filipino business men in the provinces as well as in Manila. Honor came to two of the column editors of the Journal, Messrs. E. C. Von Kauffmann and the Conde de Churruca, in the form of quotations in full of their September-issue articles on Lumber and Tobacco, respectively, in the weekly bulletin of the Philippine American Chamber of Commerce, Inc., 50 Broad Street, New York City (issue for October 31, 1947). The November Commerce, organ of the Chamber of Commerce of the Philippines, reproduced the whole of the October Journal editorial, "The Government in Trade", and also the column article by Mr. L. P. Croft on side-walk peddlers and Mr. F. M. Gispert's description of a new type of cargo container. Various Manila newspapers continue to draw heavily on the Journal in their business sections, usually with an honest credit-line for the Journal. On the other hand, the editor recently received a letter from his daughter Lily, now married and living in Davao City. She wrote, among many other things: "I can't say I'm especially crazy about the copies of the Journal you sent me, but I do read what you write and whatever else interests me, like the 'Let Your Hair Down Column'. Johnny [her husband] reads almost everything in it and I am sure it is helpful to him. But I did like your Philippine Magazine much, much better." What honesty, though softened and regretful. And that double "much". What a melancholy, nostalgic touch that is! But, said the editor, business is business and we must have our business publications whether they appeal to the women in general, and one's daughters in I w - - - - --— I *TRUCKS * PICKUPS * TRAILERS *HEAVY LIFTS Available Daily Telephone 2-79-35 *~~~~~~~~N.V j m Mr. Barrett Mr. Schedler LUZON BROKERAGE COMPANY

300 AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 Here's DITTO the duplicating marvel! COPIES! Ditto's flexibility enables you to make copies of anything written, typed, or drawn from a paper original. No mats-no stencilsno make-ready. Try this moderneconomical duplicating methoJ today. DITTOo Philippine Distributors O. E. S. & S. CO., INC. 673 Dasmarifias (Gibbs Bldg.) 2-98-16) 2-98-17 Local 8 particular, or not. We have to steel ourselves to that; carry on grimly and ruthlessly it need be. Somebody's papa has to edit these business publications. The officers and members of the Board of Directors of the Chamber gave a luncheon to the officers and members of the Board of the Chamber of Commerce of the Philippines early this month in the "Champagne Room" of the Manila Hotel. A specially invited guest was Elliott McAllister of the Bank of California, a visitor in Manila, and also invited were a number of Manila bankers, including Vicente Carmona, Albino Z. Sycip, A. D. Calhoun, E. Byron Ford, A. J. McIntosh, and F. J. Moore. Mr. Frederic H. Stevens said that he and his fellows of the American Chamber believed it a good thing for the two bodies to "get together" occasionally. Mr. Gil J. Puyat, President of the Philippine Chamber, answered in kind and said that the two organizations had cooperated in the past, particularly just after the liberation, and that they could no doubt continue to work together in various ways for the good of the Philippines. He suggested a "return" luncheon at an early date. We believe that such friendly and informal meetings between the directing authorities of the two Chambers will be of real value in bringing about the coordination of effort which, in many respects, it is to be desired. We have of late received a number of communications, chiefly from members of the Chamber, touching upon various conditions, laws, regulations, etc., which constitute in some cases serious obstacles to Philippine economic progress. Some of these communications are couched in the form of protests which might well be suitable for this "Hair-Down" column, were the matters touched upon not so truly serious. Instead of taking such issues up in this column, therefore, we deal with them one after the other either in the editorial pages or under the most suitable columnhead in "The Business View" pages. In this issue, for instance, Mr. C. A. Mitke takes up the matter of the very necessary rectification of the Philippine Mining Law in his Gold and Mining column. Editorially, we take up in this issue, the present "Flag-materials Law" which is doing American business and the Philippines itself much harm. During the past year we have published a number of editorials and articles on such important subjects as double taxation, the Report of the Joint Finance Commission, the Report of the Beyster Commission, the Trade Mission to Japan, the Government in trade, the newly created PRATRA, and our waterand sewage-system and bridge and traffic difficulties. The editorial treatment in the Journal of these various subjects and issues is only one form of expression of the activities of the Chamber, which include also direct contact or communication with the various governmental and other entities concerned. No one can say with any warrant whatever that the American Chamber of Commerce "never does anything". Such a remark by any American business man here is generally only an excuse,-and a very poor one, for not becoming a member of the Chamber and doing his part in supporting its very necessary activities. We heard a good one in this office the other day, from a new-comer here. He said he had been seriously told that to get along in Manila these days one had to "get in" with the "Santo Tomas crowd",-the old' timers who went through and survived the hardships of Japanese internment, and who all have a softspot in their hearts for each other. There might be something in it, at that! During those three bitter years we got pretty well acquainted and in some cases friendships were forged which will even stand the test of these better days,-we all do tend to forget what we may owe to many a man who stood by us in those days of adversity. That heckler has written in again to the editor. We thought it should be thrown into the wastebasket, but the editor felt it should go into this column: "Ha, ha! I never laughed so much in my life! You, or more or less you, I suppose, have been pontificating in the editorial columns of the Journal in a most impressive and uplifting manner on a great many subjects, some deep, some high, and some in between, but all of it very well done, indeed. You are doing very well by capitalism, and I hope it is appreciated. Heh, heh! I have heard from a mutual friend that you are building a house now. But you slipped, my friend, in the last issue. Oh, what a fall was there! In that 'Hair-Down' column, which I suppose is yours, too, despite the somewhat labored third-person references to yourself. You gave yourself away, noble sir, though you no doubt thought you were only being funny. I refer to your remarks about the American Army surplus cigars being denied you and your readiness to flout the Republic's laws and ordinances the moment anything touches your personal pleasures, nay, vices, for it is plain that you smoke to excess, that you drug yourself with tobacco, perhaps because, after all, you have a conscience that occasionally still functions. You reveal yourself not only as a scoff-law, but as being as indifferent as any real pluto EVERETT STEAMSHIP CORPORATION GENERAL AGENTS AMERICAN MAIL LINE To and From Portland Seattle Vancouver Tacoma PACIFIC TRANSPORT LINES To and From California Philippines FERN LINE To and From North Atlantic Ports Gulf Ports Philippines EVERETT ORIENT LINE Serving the Orient PHIL. STEAM NAVIGATION CO. Serving the Philippine Islands 223 Dasmariflas St., Manila Tel. Overseas 2-87-82 2-87-92 Tel. Interisland 2-63-82 Tel. Executive 2-97-38

December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 301 crat to the sufferings of our cigar-makers driven into unemployment by you and people like you smoking those fine cigars you love so much and which you put above obedience to the law, morality, humanity. And you such a good citizen! I write no brief for our cigar and cigarette manufacturers; do not misunderstand me. It is only that I pity our poor little cigareras. But it would please me hugely, and make me laugh for the rest of the year if that bit of funny business of yours would result in a real embroglio between you and the Count, God bless him and you and all of us! "Your faithful Admirer" What a pen-pal! And all because the editor likes a good cigar. As for that house, it is being built on a lot he acquired before the war and the money to build it comes from the Manila Building and Loan Association. As for Count Churruca, he told us he had intended to play a joke on the editor by sending him some of his good Tabacalera cigars in a Webster box, being pretty sure that he could fool him, but the Count had to make a trip to the provinces and gave up the idea. The editor said he wouldn't have minded being experimented with in such an altruistic manner. We were reminded of how Mark Twain scored on some of his friends in the same way. He was a heavy smoker, but his friends all thought that his favorite brand of cigars was atrocious. When of an evening he would pass them around, they would light them out of pure politeness, but surreptitiously dispose of them as soon as possible behind the nearest object. Mark Twain used to find these wasted cigars and that annoyed him. One day he got a box of the very best cigars he could buy, and passed those around to his friends as if they were his usual smokes. They were ceremoniously lit as usual, a few puffs were taken with ill-concealed grimaces, and then they were slily put away. Mark Twain had a very satisfying laugh at his friends' expense. (Editor's note: Moral expense! And no doubt thinking he had proved something! He did, but all he proved was that judgment is inevitably affected by the mental set and by preconceptions. Mark Twain did not prove that his own brand of cigars was generally smokeable. Selah. Perhaps the Count...) This being the December issue of the Journal, and as it may therefore be taken as the Christmas issue as well as the New Year issue, since the next number will not come off the press until the 15th of January, we wish our fellow members of the Chamber and all souls who may chance to read this generally very business-like and impersonal periodical, a very merry Christmas and a happy New Year. Aw IL A F I /CHECK THIS FOR HEART-FELT SA TISFA CTION... 7 COOL i CASUAL Z CORRECT v COMFORTABLE GOODALL i PAlMBEACH SUIT Hitting a new "high" in wrinkle-fale comfort... Just the right drape to make you appear casually correct at all times... FOR WALKING PLEASURE...?Keith?Iighlande T Master in APPEARANCE 7 Master in ENDURANCE I rs; Master in STYLE V7 Master in r_~~~~~~~~ AIR CONOI-TIONE6 ^MS TV UJS 6 IAr TBSU1QL Ua REGINA BUILDING I%

302 vv- AMERICAN CHAMBER OF COMMERCE JOURNAL December, 1947 I W — Index for 1947 Vol. XXIII (Eight issues: February, April, July, August, September, October, November, December) Editorials Annual Report of the Chamber of Commerce of the Philippines.............................. Feb. p. c1 Beyster Report, The................... 141,179 Build More Temporary Bridges.......................... 99 Double Taxation..................................62 ECAFE Conference, The.............................. 261 Finance and Industrial Development Reports, The........ 17 "Flag-materials Law," The........................... 255 Fourth of July, The..................................... 61 Government in Trade, The.............................. 181 Humanitarianism versus Communism..................... 221 Membership in the American Chamber of Commerce of the Philippines......................................... 141 Krivenko Case, The..................................261 Labor-Management Conference, The................... 26C Moral Conduct in International Relations................. 181 New Chamber Offices................................... 101 PRATRA........................... 219 Recommendations of the United Nations Special Committee on Palestine....................................... 22C Report of the Joint Finance Commission................. 99,17 Russia and the World............................. 141 Simplification of International Trade Documents, The.. 261 Statement of Policy............................ Feb. insert Trade M ission to Japan, The............................ 139 Under-Secretary Balmaceda........................... 219 W ater, W ater.......................................... 13 I ) L L ) L Manila Rope (Manila Cordage Company)............. Manila's Obsolete Sewer System-Manuel Manosa.... Metropolitan Water District in Crisis, The-Manuel M an osa...................................... National City Bank of New York Report, 1946........ New Air Route (Northwest Airlines)................. New Philippine Flag Line for the Orient-N. N. Everett....................................... Petroleum Industry; Rehabilitating the-N. E. Johnson Report on the Mining Industry-Demetrio Andres.... Review of the Report of the Joint Finance CommissionAnonymous................................. Road Back, The (Alhambra Cigar and Cigarette Manufacturing Company)............................. Stock Market Review for 1946-A. C. Hall......... Surplus Property and Rehabilitation-F. Segado...... Taxability of Sales of Articles to Foreign Consuls and the U.S. Army and Navy-Collector of Internal Revenue.............................. Ten-Year Review of Philippine Business Trends-Leon Ma. Gonzales............................... U. S. Public Roads Administration, 1947-'48 Program of-F. C. Turner............................. Apr. p. 6 182 142 Apr. p. 9 Feb. p. 19 189 262 Feb. p. 8 105 Feb. p. 7 Feb. p. 9 145 134 222 267 Articles Ambassador Emmet O'Neal-Official Source......... Beyster Report; a Summary, The-Editor............ Bureau of the Census and Statistics.................. "Capitalistic Exploitation"-A. V. H. Hartendorp... Central Bank, On the Proposed-Miguel Cuaderno... Cebu Portland Cement Company, The-Eduardo Taylor....................................... City Planning Program, Present Status of the-L. P. Croft....................................... Diplomatic and Consular List-Official Source....... Division of Standards Created....................... Double Taxation Issue, Correspondence............. Economic State of the Nation, The-Leon Ma. Gonzales......................................... Estimated National Income of the Philippines, 1939 and 1946-Bureau of the Census and Statistics.... Export Control Relaxed............................. Fifty Million Pesos Released by the RFC (Phil.)....... First Year of the Republic-Official Source.......... Flag, The-A. V. H. Hartendorp................... Income-Tax Comparisons-Dalupan, Sanchez P Company.................................... Iron and Steel Industry for the Philippines, An-C. A. Mitke....................................... Labor in the Philippine Republic-Carson Taylor..... Legality of the Temporary Building-permit Ordinance-L. D. Lockwood and L. P. Croft......... Letter to a Member of the United States CongressFrederic H. Stevens.......................... List of Government Owned and Controlled Corporations and the Purposes of their Creation............... Luzon Brokerage Company, The-A. H. Barrett...... Manila Electric Company (Meralco), The-H. P. L. Jo lly e........................................ Manila Rises from the Ruins-Bernardino Ronquillo. Manila Railroad Company, The-F. E. V. Sison..... 185 186 Apr. p. 8 Apr. p. 5 146 107 264 13C Feb. p. 22 295 Apr. p. 10 Apr. p. 16 Feb. p. 23 Feb. p. 11 63 64 103 Feb. p. 12 Feb. p. 14 188 101 Feb. p. 17 224 66 Feb. p. 5 68 The Business View Department Office of the President, Official Source, pp. 108, 148, 190, 226, 268. t Banking and Finance, Bureau of Banking, Feb. p. 24; Apr. p. 24; ) C. V. Grant, pp. 70, 108, 150; C. R. Leaber, p. 227, 268. Stock Market, A. C. Hall, Apr. p. 12; pp. 70, 109, 150, 191, 227, 269 Credit, D. Burn, pp. 109, 150, 192, 228. Insurance, A. H. Henderson, pp. 71, 110, 151, 229. C. T. Balcoff, p. 111; C. M. Jordan, p. 111. Electric Power Production, J. F. Cotton, pp. 72, 111, 152, 192, 229, 5 269. 5 Real Estate, C. M. Hoskins, pp. 72, 111, 152, 193, 229, 269. Construction, O. A. Boni and H. H. Keys, pp. 72, 112; H. H. Keys, 5 pp. 153, 193, 230, 270. 5 Port of Manila, H. W. Titus, pp. 74, 113, 153, 230, 270. Ocean Shipping, F. M. Gispert, pp. 74, 114, 154, 194, 231, 271. 7 Inter-island Shipping, E. Danks, pp. 75, 115; D. M. Cameron, pp. 154, 194, 231, 271. 1 Air Transporation, V. A. Brussolo, pp. 116, 155, 195, 232; Pan American Airways, p. 232, 272. Bus Lines, L. D. Lockwood, pp. 76, 116; L. G. James, p. 233, 272. Gold, Copper, The Mining Law, C. A. Mitke, pp. 77, 116, 155, 195, 234, 273. Lumber, E. C. Von Kauffmann, pp. 77, 118, 156, 196, 234, 274. Copra and Coconut Oil, M. Igual and K. B. Day, pp. 78, 118, 156, 196, 234, 274. Desiccated Coconut, H. R. Hick, pp. 119, 158, 198, 236, 276. Manila Hemp, M. Cook, 79, 120, 158, 200, 236, 278. Sugar, G. G. Gordon, pp. 79, 120, 159, 198, 237, 277. Tobacco, Conde de Churruca, pp. 160, 198, 237, 278. Machinery, G. Evans, p. 73; H. E. Hertz, p. 112; L. M. Hausman, p. 200; V. E. Lednicky, p. 237, 279. Automobiles and Trucks, J. L. Manning, pp. 160, 200, 238, 280. Food Products, C. G. Herdman, pp. 80, 121, 161; E. A. L. Best, p. 201; 280. Textiles, J. Traynor, pp. 80, 122, 162, 202, 241, 281. Drugs, Health Supplies, Toiletries, Frank A. Delgado, p. 238, 282. Legislation, Executive Orders, Court Decisions, E. E. Selph, pp. 81, 122; R. Janda, pp. 162, 202, 241, 283. Labor, Official Source, pp. 82, 128, 163, 204, 244, 287. Cost of Living Index, 1945-1947, Bureau of the Census and Statistics, pp. 82, 128, 164, 204, 244, 287. Trend of Real Wages, 1941, 1945, 1946, Bureau of the Census and Statistics, pp. 82, 129. Philippine Government Corporations, Official Source, pp. 84, 124, 163, 203, 242, 285. U. S. Government Agencies, Official Source, pp. 85, 126. Other Chambers of CommerceChamber of Commerce of the Philippines, P. J. Ocampo, pp. 164, 205, 245. Manila Chamber of Commerce, S. Crawfurd, p. 166, 289. Philippine Chinese General Chamber of Commerce, Yang Sepeng, pp. 167, 205, 288. Spanish Chamber of Commerce of the Philippines, J. M. Resales, pp. 168, 246, 290. Business Book Reviews, D. Minsberg, pp. 251, 298. The"Let Your Hair Down" Column, pp. 93, 134, 172, 212, 252, 302 - WHEN YOU WANT QUALITY ELECTRICAL WORK CALL E. J. MORA ELECTRIC CO., INC. Address: 170-2 M. de Comillas Tel. 6-65-85

TEL. 2-95-70 CABLE ADDRESS AIMCHANMBCOM THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES 8TH FLOOR, TRADE & COMMERCE BUILDING MANILA February 12, 1947 STATEMENT OF POLICY In the July (1946) issue of this Journal an editorial appeared recommending the abrogation of the parity provisions of the Bell Act. It has come to the notice of the Directors of the American Chamber of Commerce that the general impression is that the recommendation represented the views of the Chamber. We wish to advise that such is not the case. It merely represented the individual views of the. author. The position of the American Chamber of Commerce is that the parity question is one for the decision of the Filipino people, and that the American Chamber of Commerce should take no part whatever in the controversy. AMERICAN CHAMBER OF COMMERCE FREDERIC H. STEVENS President Attest: LEON ROSENTHAL Secretary

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December, 1947 AMERICAN CHAMBER OF COMMERCE JOURNAL 303 still maintains the pre-war goodness of its beer in the ties, in order to render the i I of - ~:':_ H 0 M OF QUALITY PRODUCTS S IN E 89

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UNIVERSITY OF MICHIGAN BOUND^~~ ~3 9015 01637 2834 BOUND DEC14 1948 UNIV. OF MICH. LIBRARY