The Strange Case of Philippine Mahogany

Not since the first shipments of magnificent Philippine hardrvoods began finding their s'ay across the I'acific to the West Coast of this country, has a situation arisen in any way comparable to the one that prevails today.

I)uring World War Two the Japs invaded the Philippines and ruthlessly put out of commission most of the lumber production of the Islands. Since the end of the rvar production facilities of Philippine lumber have been slorvly improving and increasing, and the iruporters from the U.S. have been steadily returning a greater and better volume of Philippine Mahogany. Now comes the changed situation'

Instead of cutting their logs into lumlter and offering the lumber for sale as in the past. because of certain economic and tax conditions nou' prevailing, a great portion of the timber now being cut in the Islands is being sold in the log, chiefly to Japan, and cut into lumber and plyrvood in Japan, by the Japanese importers. The reason most of this log production goes to Japan is that the Japanese offer higher prices for logs than Americans, rvho rvould be glad to buy the logs and bring them in this direction, feel that they can afiord to pay. And lr,hen the Americans raise their price offers, the Japs do the same. keeping them higher and thus getting the bulk of the logs being exported from the Philippines.

In Japan these logs are being converted into lumber and plyu'ood. With regard to the latter. American importers n'ho are deeply interested in r'vhat goes on, say that the Japs have installed the best of modern plyrvood making equipment, they use the most modern methods of operation such as slicing and gluing, and, rvith tireir lo'rv rvage scale they turn out good plyu'ood at verr. lorv cost.

'fhe Jap made lumber is purchased very largely by the American army and navy, and so is much of the plywood. The American importers, anxious to buy as much Philippine lumber as possible, find themselves in competition u.ith a very powerful competitor-the U.S. Government.

With regard to the situation in the I'hilippines, this cl.range from making lumber to simply selling logs, is reportecl to be doing great damage to the l'hilippine economy. They are losing the employment as u'ell as the payroll, r'r'hich is very serious. The I'hilippine people them- selves do not view this too seriously. They are inclined to 'be considerably free from ambition. and to be able to sarv down the trees, haul them to \\'ater, and then sell the logs there for good prices, appeals to them, in spite of the economic loss, and the payroll loss.

Then there is the tax situation u'hich has seriousll' hindered the development of lumber production in the Islancis. Those who would import improved san mill machinery and equipment find themselves paying a list of huge taxes on such imports. There is an Exchange Tax of 17 percent, coupled rvith a 2 percent License Tax, and a 7 percent Conrpensating Tax, the total of u,hich is staggering, and definitely slolvs dor.vn development of lumber manufacturing.

LeRoy H. Stanton, of Los Angeles. president of tr. J. Stanton & Son, has just returned irom a trip around the globe, and spent considerable time investigating the situation in the Philippines, and is convinced that unless solllething can be done to change the present serious conditions mentioned above. unpleasant things rvill happen to the entire Philippine-American bardt'oocl industry. So he u'rote a letter to Harold 8,. Stassen. Director of Mutual Security, at Washington, outlining his vien's on these matters in very interesting fashion. The follorving paragraphs are excerpts. They give a splendid portraval of the Philippine lumber situation:

"Dear Mr. Stassen, I have just returned to Los Angeles alter a globe-circling trip by air, u'hich included a t'tvo rveeks visit to the I'}hilippines and fir'e davs in Japan, and I am rvriting to you particularly in regard to the lumber situation in the former.

"Our company is one of the oldest importers of Philippine u'oods and from a selfish interest we are naturalll' much interested in the production of sarvn lumber lty l'hilippine labor in the Philippines. I have made these annual trips to the Islands for a number of years and have visited sawmill operations in various parts of Luzon and Mindanao and am. therefore, u.ell informed on the lumber and timlter sitrration and personally acquainted t'ith most of the timlter and sawmill operators. In fact, I am on very frienclly terms rvith the greater part of them, as I 'n'as fortunate enough to assist in the formation at Nlanila of a cl.rapter of <.rur lumber fraternity, the International Concatenated Order of

SIGII I.ABOR

O TRADTS AORTTl||Tl{T

Negotiolions were stqrted in l94l between the A.G,C. ond unions ol the six bosic lrodes to creote o responsible cenlrol body to work os o building trqdes covncil with lhe conlroctors.

When the mosler ogreement wos signed in the some yeor, E, K. Wood hod olreody been supplying controctors ond their croftsmen with quolity building moteriols for 4l yeors. Soys

S. T. Ziler, South Gote quolily home builder, "We were E. K. Wood customers for olmost two decodes before the ogreement wos signed. Our confidence in them, their moteriols ond service is firmly entrenched."

Hoo-Hoo (rvith 'ivhich you are probably familiar, as our order is very rvell knorvn and active in your State oi Minnesota).

"I believe the situation in tl.re Philippines today in connection u'ith timber and the exportation of logs to Japan presents a terribly serious condition affecting the economic status of the Philippines, and believing wholeheartedly as I do in the superb leadership and statesn.ranship of President liisenhorver and in the splendid men he has aroun4 him, I do pray and hope that a ,careful survey will be made of the present set-up in the Islands, which is practically making it necessary for the timber operators there to ship nearly all of their logs to Japan (this amounts to approximatell' 40,000,000 ft. per month) to be manufactured there into lumber, a great part of which is sold to our American Army for use in Korea. Thus the Philippine economy is losing a large income in u'ages, which should be funnelling through Philippine u'orkers into purchasing porver and employment for Filipinos.

"I believe this condition, from what I have learned during my three annual r-isits, has been brought about largely through the effects of the Bell Act, which I have heard criticizecl so much by Philippine bllsinessmen. Certainly there is no question but that this tremendous exportation of logs ancl the shuttng down or restriction of cutting of the sarvmills has been caused by excessive production costs of sau'ing lumber as compared to the much lorver cost of exporting krgs. I am convinced that rhe 17/o Exchange Tax,.coupled rvith a 2/o L\cense Tax and a 7lb C<tmpensating Tax, making a total of 26/o, are the governing factors, and to me it seems a misguided policy for the Government there to put road blocks in the way of production u'hich u.ill employ thousands of Filipinos with good daily wages. As things norv stand the sawrnill operators must pay this Exchange Tax on all machinery, equipment, lnd supplies brought into the country, along rvith these other taxes mentioned, and this simply brings the cost of producing lumber to a point rvhere the timberman must export the logs and, therefor, the Filipinos are losing this tremendous income in n,ages.

"I believe, Mr. Stassen, that we owe a tremendous debt of gratitude to orlr Filipino friends, who loved and respect the American flag, and rvho have stood with us through thick and tl.rin. and certainly this present situation is affecting the n'elfare of thousands of Filipinos and I believe has a consiclerable llearing on the trouble rvith the Huks. Cer- tainly a greater distribution of money through 'ivages u'ill have a great effect on the situation over there.

"I heard from one of my lumber friends that the Chairman of the Investigating Committee, whicl-r vou sent over, had talked at length 'ivith him and asked a lot of questions, so I am sure by no\\'yotl are thoroughly cognizant of the waste and inefficiency of the NfCS group over there employed by the Truman regime, and I hope with all my heart that our good, down-to-earth policies and u'ise, practical methods lvill get around soon to extending all possible aid of the right sort to our lrhilippine brothers as most of the people over there still feel that they are a part of our country. Respectfullv yours, LeRoy Stanton, President."' commission ond retoil deolers, orchilecls, yord foremen, fence conrlruclion firnr, F.H.A., Veleronr Administration ond City building inspectors.

Dick Hoover, A. L. Hoover returned from a rveek's trin to called on the mills.

The first evidence of the United States was England in 1814.

Co., San Marino, Calif., has Hurnboldt County nhere he saw used for sawing logs in large blade irnportecl from a circular a rather

PecrFrc FoREsr PnoDucrs, lNc.

\THOLESALE LUMBER

Douglas Fir - Redwood - Ponderosa dnd Sugat Pine llcrin Oficc and Yard

9th Avenus Pier

Oakland, Colif. 6th fltinookr 3-.98667 lelctypc OA 216

Buying Officcs:

Pocific Elecrric Bldg. & Moin Streels, loo Angcles 14 TUcker 1232-1233

Eurekc, Colifornic; Eugene, and Grqnts

Bronch Ofiicc ond Yord Colifornio Ave. st 5o. 4th Fresno, Cqlif. Phone +5234

Poss, Oregon

St.

1ls thc$lls

NEU' "AL.2O"

PreservesProtecls{6ssnts the nqlurol beouty of oll rough surfoced woods. 16 beoutiful weslern lones - -Olympic stqin losts up lo @o/o longer, neyer crocks or peels.

SO. PASADENA YARD:

SYcamore 9-1197

PYromid l-1197

855 El Cenlro Streel

Hordwoods!

,'NOIH'NG BUT f HE BEST"

GARDENA YARD: Plymouth 6-l I l2

MEnlo 4-1196 t858 Mf. Rosecrons Ave. cAntoAD toTs

Douglor Fir

Ponderoro ond Sugor PINE

Redwood

Plywood

. Shingler . lolh

Johnr-llonvillc Productr

. Simpson Logging Co. Products

. Nu-Dor Sliding Door Frcmes

Wholrloh Didrlbutorr -Dircct }llll thippon

-Scrving Soulhcrn cAuFonNn's Inlond Empiro rHREE CONyEN,! {7 rOCAtrOitS

BLOO'VTINGTON BAK:RSFIELD

My Mother

Someone I love comes back to me

With every gentle face I see; Beneath each wave of soft grey hair

I seem to see my mother there. With every kindly grace and word

It seems as if I must have heard

FIer speak, and felt her tender gaze With all the love of olden days. And I am moved to take her hand, And tell her now I understand How tired she grew beneath the strain Of feeling every loved one's pain. No further burdens could she bear, The promise of that Land more fair Alone could tempt her from her child; And now, if I could keep her here, No sacrifice could be too dear.

No tempered winds for her too mild. Then I would smooth and kiss her face, And b-v her side take my old place, And sob my fears and cares away.

The tears I have so long repressed

Would lose their ache upon her breast; I think if I could feel her touch

Once more, it would not matter much How sunny, or how dark the day.

-Author lfnknown.

It's the Doer That Counts

It is not the critic who counts, nor the man who points out why the strong man stumbles, or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena; whose face is marred by dust and sweat; who strives valiantly and may fail again and again; because there is no effort without error ' and short-coming; but who does actually strive to do th€ deeds; who does know the great enthusiasm, the great .devotion; who spends himself in a worthy cause; who, at the best, knows in the end the triumph of great achieveanent; who, -at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat.

-Theodore Roosevelt.

Tired Doctor

It was two in the morning. The doctor had been on his feet twelve consecutive hours and he was dead tired. Just as he slid into bed, and reached up to turn out the light, the phone rang.

"Dammit !" said the weary Doctor. "There's one born every minute."

Why We Should Hqve Art Museums

Most men mistake being alive, for living.

The most of what we hear, we fail to understand. We labor, that we may gorge ourselves and sleep with the kitchen cat and the stable dog.

A comrnunity is as rich as its understanding of the use of riches.

We grieve for the few in the asylums for the mad, and heed not the wanton waste of sound minds.

A great city is a prison house unless it provides something for the leisure hours.

The busiest city on earth is fast asleep unless it is doing something toward the higher education of its people. Work should be a means of leisure in which we enjoy the sublime creations of science, literature, music, and art.

No city is great unless it rests the eye, feeds the intellect, and leads its people out of the bondage of the commonplace.

Hospitals do much; they make sick men well. Art does more: it makes well men better.-Grate Stevens.

No Statue

"Oh, Daddy, see the statute on top of the tower." "Sh-, son, that's not a statue; that's a carpenter."

Tomorrow

He was going to be all that a mortal should be, ' Tomorrow.

No one should be kinder or braver than he. Tomorrow.

A friend who was troubled and weary, he knew, Who'd be glad of a lift, and who needed it, too, On him he would call and see what he could doTomorrow.

Each morning he stacked up the letters he'd write, Tomorrow.

And thought of the folks he would fill with delight, Tomorrow.

It was too bad, indeed, he was busy today, And hadn't a minute to stop on his uiay, More time he would have to give others, he'd say, Tomorrow.

The greatest of workers this man would have been, Tomorrow.

The world would have known him had he ever seen, Tomorrow.

But the fact is he died and he faded from view, And all that he left here when living was through, Was a mountain of things he intended to doTomorrow.

-Edgar Guest.