LETTER TO C.J. SYMINGTON FROM ALLEN W. DULLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R001100080013-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 112
• Document Creation Date: December 14, 2016
• Document Release Date: November 12, 2002
• Sequence Number: 13
• Publication Date: April 16, 1956
• Content Type: LETTER

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BOARD OF TRUSTEES
OFFICERS
H CHRISTIAN SONNE
Chnlrman
WAYNE CHATFIELD TAYLOR
Executive Committee Chairman
MARION H HEDGES
Vice Chairman
FRANK ALTSCHUL
Vice Chairman
CLINTON S. GOLDEN
Vice Chairman
DONALD R. MURPHY
Vice Chairman
BEARDSLEY RUML
Vice Chairman
ARNOLD S. ZANDER
Secretary
HARRY A BULLIS
Treasurer
CHARLTON OGBURN
Counsel
JOHN MILLER
Assistant Chairman and
Executive Secretary
WILLIAM L. BATT
LAIRD BELL
COURTNEY C. BROWN
L. S. BUCKMASTER
JAMES B. CAREY
GILBERT W. CHAPMAN
GUY EMERSON
JOSEPH W. FIGHTER
WILLIAM C. FORD
LUTHER H. GULICK
ALBERT J. HAYES
ROBERT HELLER
LEON HENDERSON
ERIC JOHNSTON
ALLAN B KlINE
FRED LAZARUS, JR
MURRAY D. LINCOLN
DAVID L LUKE, JR
JAMES G. PATTON
CIARENCE F PICKETT
WAITER P REIITHFR
F IMO HOPER
Wit I. JAM F. SCHNITZLER
THEODORE W SCHULTZ
CHARLES J. SYMINGTON
ROBERT C TAIT
WAITER H WHEELER. JR.
JOHN HAY WHITNEY
DAVID I WINTON
1 D ZELLERBACH
NATIONAL PLANNING ASSOCIATION
1606 NEW HAMPSHIRE AVE., N.1T., WASHINGTON 9, D. C.
r. Allen `:1. Dulles, Director
Central intelligence Agency
Ura.srsngton 25, D. C.
Dear Allen:
C. J. S ,iLLngt
Thanks to Bill Paley of C-bS, the intern atioria.l press
cunt erence at the aldorf on i' :e rch 17 with the t;'ro-wayradio-
teleyahone hookup between New Yor'- am 5-Lanila. was t. areE.-t success.
You may be interested in reading a. tr=>;,c.cri of o;' the
exchange of questions and answers between Presicre'clt Ma-s~~ysay and
press representatives at the Waldorf so I as enctosing a copy.
T'he trans-Pacific talks were verz;
ara?tatic end there
was widespread public interest in th( Philippine; anc, throughout
Asia. Perhaps this practical Luc-ethod o; improvin; ? human relation-
ships and removing sus.icion 0i
our i Motives 'nigh -. be ue ~d to ad-
vantage in other parts o' the world
S .ncerr.:l JT yours,
COlunabia 5-7685
CABLE: NATPLAN
Folio Co;;mittee f 1p-L Cnse Studies
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INTERNATIONAL PRESS CONFERENCE
MANILA NEW YORK
MALACANAN PALACE March 17, 1955 WALDORF-ASTORIA
NATIONAL PLANNING ASSOCIATION - PHILIPPINE AMERICAN LIFE INSURANCE CO.
Previous to the attached "Press Question Period," the following addressed
the International Press Conference:
Mr. Christian A. Some
Chairman, National Planning Association
Mr. Charles J. Symington
Chairman, Policy Committee, National Planning Association
Mr. William S. Youngman, Jr.
President, C. V. Starr & Co., Inc.
Brig. Gen. Carlos P. Romulo
Special Representative to the United States of the President of the
Philippine Republic.
President Ramon Magsaysay
Those participating in the "Question Period" were:
NEW YORK
Mr. Christian A. Sonne
Mr. Charles J. Symington
Mr. W. F. Bramstedt
President, California Texas Oil Co.
Mr. George F. James
Director, Standard Vacuum Oil Co.
Mr. John Lindeman, Moderator
Author of NPA Report on Philamlife
PRESS
Mr. Malcolm Muir, Jr., NEWSWEEK
Mr. Mark Stroock, TIME
Mr. W. W. Chaplin, NBC
Mr. Robert Gowe, ASSOCIATED PRESS
Mr. Gilmore Iden, U.S. NEWS A1D
WORLD REPORT
Mr. James Partridge, LIFE ASSOC. NEWS
Mr. Saul Sanders, BUSINESS WEEK
Mr. Robert Mitchell, NATIONAL
'UNDERWRITERS
Mr. Ralph Teatsorth, UNITED PRESS
Mr. Richard Lindabury, HERALD
TRIBUNE
Mr. William McGaff in, CHICAGO DAILY
NEWS
President Ramon Magsaysay
Mr. Earl Carroll
President, Philippine American Life Insuran.c'c Co.
Mr. R. V. del Rosario
Vice President, Philippine American Life Insurance Co.
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C. J. Symington: We (in New York) have established a panel of news-
paper, magazine and radio representatives who are
now in their places. They will ask the written
questions which we have received. This panel will
be conducted by John Lindeman, the author of the
report being released tonight on the Philippine
American Life Insurance Company of Manila. Nov
Mr. Lindeman will 'lake over.
John Lindeman: Are you ready Manila? We have a group of press,
radio and news magazine correspondents here. After
I have introduced them, we will get on to the questions.
First there is Mr. Malcolm Muir, Jr., of NEWSWEEK
magazine. Next to him Mr. Mark Stroock of TIME mag-
azine. Then there is Mr. W. W. Chaplin the well known
NBC commentator, Robert Gowe of the ASSOCIATED PRESS
and Gilmore Iden of U.S. NEWS AND WORLD REPORT. James
Partridge of LIFE ASSOCIATION NEWS, Saul Sanders of
BUSINESS WEEK, Robert Mitchell of NATIONAL UNDER-
WRITERS, Ralph Teatsorth of UNITED PRESS, Richard
Lindabury of the HERALD TRIBUNE and William McGaffin,
CHICAGO DAILY NEWS. Our first question will come
from Mr. Muir of NEWSWEEK.
Malcolm Muir, Jr.: Question to President Magsaysay
NEWSWEEK
To what extent does the Hukbalahap movement threaten
the security of American capital invested in the
Philippines?
President The security of American capital invested here rests
Magsaysay: upon the stability of the Republic.- ?Huks no longer
present any serious three.trto that stability.
Gilmore Iden Question to President Magsaysay
U.S. NEWS AND
WORLD REPORT Article Two of the Southeast Asia Collective Defense
Treaty states that "the parties will develop their
individual and collective capacity to prevent and
counter subversive activities." How'does the Philip-
pines plan to implement this clause?
President: Philippines' implementation of this phase of the
Magsaysay Manila pact consists of a continuation of the methods
we have already tested and proved successful; military
measures to establish peace and security, plus social
and economic measures to give our people the reality
of democracy.
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William McGaffin . Question to President Magsaysay
CHICAGO DAILY NEWS
Will further industrialization in the Philippines tend
to remove the causes of Hukbalahap discontent?
President: Industrialization will help us to demonstrate a steadily
Magsaysay rising standard of living which is the best answer to
Communist lies.
Manila: Question from Manila to Mr. Sonne
There are already a substantial number of American foreign
investments in the Philippines that have proved profitable
and many of them are in the process of re-investing for
the purpose of further expansion. In the light of this
experience, what is holding back others interested in
coming to the Philippines?
Mr. Sonne: Generally speaking, an American figures that when he has
invested some capital some years ago, he doesn't need the
development at home. When it comes to new investments,
there are two angles to it, one is what return he expects
to get and the other is safety. Now in regard to return,
there we must remember that unlike Britain and France in
the old days which were very highly developed countries
that couldn't expect much return on their capital at
home, the United States is in a sense still a lesser
developed country; that means that capital, still can
yield satisfactory return. This is more the case in
the United States in this last decade, where due to war,
due to the fact that we helped foreign nations through
Marshall Plans or otherwise, we did in a sense postpone
improvement at home and so we have been going through a
period in which capital can be used very constructively
at home. I'm not talking here about capital that goes
into government bonds, but capital that will go abroad
which we here call venture capital. It is to be hoped
that within a short time we will have caught up with all
these delayed developments and that then there will be
more of a chance of constructive development capital
going abroad. That is, in so far as returns of capital
is concerned. But in so far as safety is concerned, the
essential thing is that from the average investors point
of view conditions all the world over seem to be less and
less secure. That is a thing which we cannot blame the
Philippines or the United States for, that's a world
condition and we can also only hope there that world
conditions will become so stable that the last bulwark
against sending large sums of capital abroad will disappear.
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Robert Gowe : Question to President Magsaysay
ASSOCIATED PRESS
If American private capital is invested in Philippine
industry, will any of the goods produced from that
investment flow into trade with Communist countries?
President: Our policy against trade with Communist areas has been
Magsaysay consistent and well implemented.
Robert Mitchell: Question to Mr. Carroll in Manila
NATIONAL UNDERWRITERS
Do the operations of Philamlife touch the lives of the
poorer classes in the Philippines?
Mr. Carroll; In our sales operations we seem to reach the poor as well
as the rich and the rapidly increasing middle class. Our
average policy is the equivalent of $1,500 which isn't very
much. We expect an increasing percentage to come from our
low income group here in the Philippines, especially with
the growing popularity of group insurance. In our invest-
ment operations, priority is given to those mortgage loans
and industrial projects which involve new construction and
therefore provide employment for labor. Our housing opera-
tions provide employment for labor both in construction and
in manufacturing trades. But the houses when completed
touch the poorer class only to the extent that they relieve
pressure on housing facilities.
Ralph Teatsorth: Question to President Magsaysay
UNITED PRESS
The flow of American private capital long-term investment
abroad has been disappointingly small since the end of
World War II. Major impediments to this flow have been
the fears of our businessmen of expropriation, political
instability, discrimination in tax and other matters, and
inability to remit a reasonable return and to ultimately
repatriate the capital invested. What assurances in these
respects does your government plan to give the U. S. long--
term investor in the Philippines?
President: These fears do not apply to the Philippines. American
Magsaysay investors already established here have found that other
obstacles are overcome as they arise. This administration
is now making every effort consistent with the nation's
economic security to establish, by legislation, the invest-
ment climate American investors seek for their capital.
Richard Lindabury: Question to President Magsaysay
HERALD TRIBUNE
With many areas of the world actively seeking U. S. private
investment and offering it special inducements, do you feel
the Philippines offer comparable attractions?
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President: We feel we offer superior attractions. For example, the
Magsaysay traditional friendship and cooperation between our peoples
and the great advantage of the wide-spread understanding
of the English language here.
W. W. Chaplin: Question to President Magsaysay
NATIONAL BROADCASTING
SYSTEM Firstly, to what extent does your government think the
Philippines should become industrialized, secondly, what
new industries are most needed, thirdly, how much new
capital is needed for this?
President: In a developing economy no fixed limit can be set for the
Magsaysay extent of industrialization. As we modernize and diversify
our agricultural economy, we open new markets, and new
areas of industrialization will appear as logical outgrowths
of our expanding economy. Industries most needed are those
which create new wealth from latent resources and those
adding value to our traditional agricultural products.
The amount of new capital we can absorb and the rate of
absorption depends upon the trend of world-wide economic
conditions and can be estimated only as we proceed.
C. J. Symington:
Question to Mr. Symington
American capital in the U. S. has found that money spent
on general scientific research is profitable in the long
range development of its investment. Is American capital
willing to carry this same practice into the Philippines?
Instead of answering that question myself, I'm going to
ask two important industrialists with us this evening to
answer it, as I think they are better qualified to do so.
I'm first going to ask Mr. Bramstedt, President of California
Texas Oil Company if he would like to answer that question,
on behalf of American industry.
Mr. Bramstedt: Indeed I would. It can be safely said that American capital
will continue to be most interested in investment possibil-
ities in the Philippines. New investors as well as the
American companies already active in the Philippines, may
be expected to be more than willing to carry out the
scientific research needed to make their operations in
the Philippines efficient and fully effective. They will
be seeking the best means of perfecting processes and
methods that will produce the greatest benefit to the
enterprises with which they are concerned and to the
Philippine economy.
C. J. Symington: Thank you Mr. Bramstedt. I would now like to ask Mr. George
James, Director of the Standard Vacuum Oil Co. if he also
would like to answer that question on behalf of his company.
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I entirely concur in the remarks which Mr. Bramstedt has
Just made and I would like to add perhaps one further point.
Many American business enterprises carried on in the
Philippines, now receive the benefit of general scientific
research conducted by their parent organizations in the
United States. In addition to this immediate benefit, which
flows through the business enterprise into the general
economy of the country, the American investor who can look
forward to a long period of productive activity will assur-
edly welcome the opportunity for scientific research within
the Philippines on subjects of special interest to that
country.
C. J. Symington: Thank you Mr. James and I hope these two very clear answers
are satisfactory to Manila.
Saul Sanders: Question to President Magsaysay.
BUSINESS WEEK
As industrialization in the Philippines progresses, what
changes in Asian trade patterns do you foresee?
President: By the reduction in cost of consumer goods and better
Magsaysay strategic placement of our consumer market they should be
considerably broadened.
Mark Stroock: Question to President Magsaysay
TIME
A proposal was recently advanced for the formation of an
investment trust by small individual U. S. investors which
would invest in long-term projects in Latin America. Would
such an investment trust be welcome and find profitable
opportunities in the Philippines?
President: Such trust will be welcomed in the Philippines and we
Magsaysay believe they would be profitable.
James Partridge: Question to Mr. Carroll:
LIFE ASSOCIATION
NEWS What is the future of Life Insurance business in the
Philippines expressed in terms of population insurable
but still uninsured?
Mr. Carroll: Refers question to Mr. R. V. del Rosario, Executive Vice
President, Philippine American Life Insurance Co.
Mr. del Rosario: The potential for the insurance business is 'tremendous here
in the Philippines with only 2% of the population insured.
The life companies have only scratched the surface. We
feel that within 10 years or even less this percentage can
be..easily doubled. Our own plan calls for a 100% increase
in insurance in force in 10 years or less and an equal
increase in the number of policy holders. We believe that
other insurance companies will be able to do the same.
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C. J. Symington: We have now come to the end of the time alioted to us
on this circuit, so we will have to conclude. May I
again thank everyone, both here and in Manila, who
headed these conferences, and all the technicians at
both ends of the line who contributed to making this
international hook-up possible. Thank you and good
night to everyone in New York and good morning to
everyone in Manila.
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At Ntmm' fork (V*ts
MLRCH 27, 1')55
gtau ms08A]tdB IN K&EI A
The recently published report of
the National Planning Association
on the operations of the Philippine
American Life Insurance Company
shows dramatically that the opera-
tions of United States companies
abroad can be both profitable and
profoundly influential in building
goodwill for this country. In fact,
the experience of this concern would
seem to prove that the greater the
goodwill the sounder is the invest-
ment. That this demonstration is
being made In the most sensitive
and dangerous area for the peace
of the world at the moment is espe-
cially significant.
The key to the company's success
has been Its conscious effort to aid
the economic and social advance-
ment of the Philippine people-to
become a genuinely Philippine in-
stitution. While its original capital
came from the United States, the
company is a Philippine corporation
subject to Philippine laws and al.
most exclusively staffed by Fili-
pinos, whose pay and working con-
ditions are exceptionally good.
The company's operations en-
hance Philippine welfare in two
specially striking ways. It furnishes
a much needed mechanism for the
systematic savings of the popula-
tion, and it invests a large propor-
tion of the proceeds in projects both
financially and humanly productive,
such as modern low-rental housing
developments.
This report is the third in a series
of N. P. A. "case studies" of United
States business performance abroad.
They fill in the colorful details of a
picture in biting contrast both to
the caricature of American Imperial-
ism which the Communists have
created and to the realities of Com-
munist dealings with nations they
control. These reports deserve wide
reading, especially by business men
and investors with interests over-
seas.
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1{crath NEWI
MI RCH 19, 1955
American Business Perfopianec Abroad
The record of an Anrican company
in the Philippines is- the subject of a
new case study put out by the National
Planning Association. The purpose of
the N. P. A. studies is to show, by spe-
cific example, how private American in-
vestments can serve the interests both
of foreign countries and of American
investors. In this instance the Philip-
pine American We Insurance Co.
lPhilamlife) was selected as having at-
tained a high degree of integration in
the Philippine economy and having
been widely accepted by the Philippine
people as a contributor to the national
welfare.
Philamlife, almost wholly owned by
an American We insurance company,
'operates solely in the Philippines and
employs, except in four executive posts,
solely Filipinos. Its policy holders are
largely Filipinos of medium income,
most of them interested in life insur-
ance as a method of saving. Its real
estate investment program has provided
housing for middle-income Filipino
families and made a start on commer-
cial-industrial building. The effect of
these operations has been to encourage
thrift and stimulate industrial activity
without interfering with Philippine pat-
terns of living.
How successful this program has been
was clearly shown at an international
press conference sponsored by the N. P.
A. on Thursdall evening. President Ra-
mon Magsaysay, speaking by telephone
from Manila, had warm praise for the
existing pattern of Philippine-American
economic co-ope:ation and expressed
the hope that it would be greatly en-
largecKHd is convinced that The Amert-
can spirit of free enterprise, directed
with economic , tatesmanship through
foreign investment channels, can play a
decisive role in the battle for freedom
and democracy n Asia. By emphasizing
the importance of mutual confidence in
the relation between foreign countries
and the American investor-underlined
also by Gen. Carlos P. Romulo on Thurs-
day-the N. P. A. is fostering precisely
the sort of economic statesmanship that
Mr. Magsaysay desires and the times
demand.
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 Approiff F "M0LAi1T1R7C&-kDRSd lU&%G~ J0
The Third Case Study in the NPA Series on
U.S. BUSINESS PERFORMANCE ABROAD
94 pp.
March 1955
bers:
PA M
Price to Nonmembers:
em
Price to N
l
i
75s single copy
e copy
ng
$1.00 s
Special Quantity Discount Rates:
10-49 copies, 10 % ;
50-99,
1
15 % ; 100-299,
2091o; 300-499, 257o; 500-999,
307o; 1,000-5,000,
7o.
40
^ Please send me............copies.
I enclose a check for ..............
[l I would like to be billed. ^
^ Please send me an announcement of each new report in the series.
..............
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NATIONAL PLANNING ASSOCIATION
1606 New Hampshire Ave., N. W.
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THE
PHILIPPINE AMERICAN
LIFE INSURANCE
COMPANY
BY JOII DEMAN
with, the c 1 ? b ration of
KATY OSOR GULNALDO
1I11RD CASE STUDY' IN AN NPA SERIES ON
United States Business Performance, A broad
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United States Business Performance Abroad
FIRST CASE STUDY
SEARS, ROEBUCK DE MEXICO, S.A. May 1953. 88 pp. $1.00
SECOND CASE STUDY
CASA GRACE IN PERU. November 1954. 112 pp. $1.00
THIRD CASE STUDY
THE PHILIPPINE AMERICAN LIFE INSURANCE COM-
PANY. March 1955. 94 pp. $1.00
Printed by photo offset by
Carmelo & Bauermann, Inc., Manila, Philippines
Permission to quote is granted provided credit is icen to the
National Planning Association
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*
This Case Study was made possible in part by funds
granted by the Carnegie Corporation of New York and
by the John Hay Whitney Foundation. These founda-
tions are not, however, authors, owners, publishers, or
proprietors of this publication, and are not to be under-
stood as approving by virtue of their grants any of the
statements made or views expressed therein.
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POLICY AND RESEARCH ADVISORY CQMMITTEE
MEMBERS vi
LETTER FROM RAMON MAGSAYSAY, Pi esident of
the Philippines ...................... .. ...... vii
PREAMBLE TO THE PHILIPPINE AMERICAN LIFE
INSURANCE COMPANY, by Eugene W. Burgess .. viii
THE PHILIPPINE AMERICAN LIFE INSURANCE
COMPANY, by John Lindeman with the collaboration
of Naty Osorio Aguinaldo ........... ........
1
I. Introduction .................... ........
1
II. Perspective on the Philippines ..... ........
5
A Filipino "Spokesman" Looks a#w Current
Problems .............................
6
Agriculture, Health, and Education ........
7
Urban Population Pressures
9
Economic Overspecialization ..............
10
Some Good and Bad Points .....
10
Improvement of Basic Conditions ..........
13
Diversification of the Economy ............
14
Better Opportunities for Filipinos ........
15
In Summary ............................
15
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III. Philamlife - History ...................... 18
IV. Philamlife - Sales ........................ 24
Who Buys from Philamlife? .............. 24
Why Do People Buy Insurance? .......... 26
Do Buyers Get Their Money's Worth? ..... 29
A Conclusion About Sales ............... 33
V. Philamlife - Investments .................. 34
Commercial-Industrial .................... 37
Home and Branch Offices .. ........... . . 47
Housing Projects ........................ 48
Indirect Effects of Philamlife Real-Estate
Operations ........................... 52
Investment Other than Real Estate ........ 56
VI. Philamlife - Other Aspects ................ 58
Insurance "Sidelines" .................... 58
Free Medical Services .................... 60
Employee Relations ...................... 61
Community Relations .................... 63
VII. Summing Up .............................. 66
The Background ........................ 66
Philamlife's Contribution to the Philippines 67
Philamlife's Reward from the Philippines .. 69
APPENDIX: Report on Opinion Survey .............. 70
Philamlife's Relation to the C. V. Starr In-
surance Interests ..................... 75
Economic and Social Data Relating to the
Philippines ......................... 76
Life Insurance in the Philippines and
Philamlife - Selected Data - Tables 1
through 6 .......................... 77
ALBUM OF DOCUMENTARY PHOTOGRAPHS ... 39-46
THE POLICY COMMITTEE'S STATEMENT ......... 81
NPA OFFICERS AND BOARD OF TRUSTEES ...... 88
NPA's PUBLICATIONS POLICY .................... 90
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POLICY COMMITTEE MEMBERS
CHARLES J. SYMINGTON, Chairman:
Chairman of the Board, The Symington-Gould Corporation, N.Y.C.
WAYNE C. TAYLOR, Vice Chairman:
Heathsville, Va.
FRANK ALTSCHUL
Chairman of the Board, General American Investors Company, N.Y.C.
BARRY A. BULLIS
Chairman of the Board, General Mills, Inc., Minneapolis, Minn.
CLINTON S. GOLDEN
Executive Director, Trade Union Program, Harvard Univ., Boston,
Mass.
LUTHER H. GULICK
City Administrator of the City of New York
MARION H. HEDGES
Washington, D. C.
ROBERT HELLER
President, Robert Heller & Associates, Inc., Cleveland, Ohio
DAVID L. LUKE, JR.
President, West Virginia Pulp & Paper Company, N.Y.C.
DONALD R. MURPHY
Editor, Wallaces' Farmer and Iowa Homestead, Des Moines, Iowa
CLARENCE E. PICKETT
Honorary Sec., American Friends Service Committee, Philadelphia, Pa.
JOHN HAY WHITNEY
J. H. Whitney & Co., N.Y.C.
RESEARCH ADVISORY COMMITTEE MEMBERS
EDWARD S. MASON
Dean, Graduate School of Public Administration, Littauer Center,
Harvard Univ., Cambridge, Mass.
R:_CHARD M. BISSELL, JR.
Washington, D. C.
LEONARD S. COTTRELL
Social Psychologist, Russell Sage Foundation, N.Y.C.
EUGENE W. BURGESS, Director of Research:
Counselor to Management, Des Plaines, Illinois
FRED SMITH, International Relations Adviser:
Business Consultant, N.Y.C.
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MALACA1 ANG
MANILA
September 9, 1954
Dear Mr. Symington:
I am happy to learn of the study that the National Planning
Association has been making of The Philippine American Life In-
surance Company. This company has dramatically and profoundly
demonstrated how a foreign-owned company in the Philippines can
advance its own interests by sincerely identifying its objectives
with the aspirations of the Filipino people and contributing its share
to national progress and welfare.
We in the Philippines are keenly aware of the material
benefits private foreign capital has brought and will bring to our
country. We are rebuilding and gaining new strength with the
valuable assistance of foreign investments, largely American.
We know that our young country vitally needs increasingly greater
amounts of this type of investment to develop our resources and
train our people in the modern skills so necessary to the improve-
ment of our standard of life.
The NPA study of the operations of'Ihe Philippine American
Life Insurance Company will be useful to other American companies
who may be interested in investing in this part of the world. It will
also be of great interest to people outside the United States who
could benefit, as we have, from the operation of progressive Ameri-
can enterprises in their countries.
Sincerely yours,
Mr. Charles J. Symington
National Planning Association
Washington, D. C.
U. S. A.
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PREAMBLE
TO
THE PHILIPPINE AMERICAN LIFE
INSURANCE COMPANY
r1HE THIRD STUDY in this series on United States business per-
formance abroad takes us to the Far East and happily to the Republic
of the Philippines, that young democracy which the United States
helped to launch and of which this country is justifiably proud.
The Philippines have had a quite different political and social
history than their Asian neighbors. Several centuries of Spanish rule
and a half century of close association with the United States have
given a western approach to the working out of their economic and
social development. The Spanish christianized tb Filipino and
firmly implanted the Catholic Church as the dominant religious and
cultural influence in the islands. Under the protection of the United
States came the opening up of the avenues of trade and industry with
attendant individual opportunities to acquire industrial and profes-
sional skills.
The land, the family, and religious faith are the three major
fcrces that guide the Filipino in his rational search for an improved
standard of living. In contrast to so many underdeveloped countries,
the combination of these vital forces has not created an extreme na-
tionalistic credo directed to the false premise that the national wel-
fare would best be served by driving out the foreigner and the re-
jection of previous ideological and political influences. The Filipino
reaches out for, and welcomes, foreign technology, investment funds,
and business enterprises which help him attain benefit:: for the family,
the community, and the nation as a whole.
Personal savings are a most important factor in a gyration's internal
economic development, and financial institutions that promote per-
sonal savings and invest them in the country's economy are particu-
larly useful agencies. The Philippine American Life Insurance Com-
pany is such an institution. The role of this progressive life insurance
company in promoting capital formation and in making direct invest-
ments in the well-being of the host country made it art excellent case
for this series of studies of U.S. business performance abroad. In
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selecting this company, however, we are nonetheless mindful that
many other United States owned and managed enterprises in the
Republic of the Philippines would have demonstrated the principles
of our series equally as well.
To say that Philamlife pioneered this or that idea is not the point
of this study. Undoubtedly, the passage of the Philippine Insurance
Act in 1947 shaped many of the Philamlife policies and achievements
which are pointed to with pride by company officials and employees.
The important point is that Philamlife is making the most out of the
legal and economic framework in which it must operate. Certainly
the company has recognized the basic needs of the Filipino and has
used drive and imagination in fostering, directly or indirectly through
its investment policies, enterprises that contribute to the economic
development, and housing projects that raise the standard of living of
the urban Filipino.
An important contribution to the success of Philamlife is the u n-
usual prestige it enjoys due to its Chairman, Paul V. McNutt, the
popular and successful U.S. High Commissioner to the Philippines in
the prewar years, and later the first U.S. Ambassador. Mr. McNutt
had long been identified with those who worked for a realization of
the legitimate political, economic, and social aspirations of the Fili-
pinos. It is only a natural result that he is held in high personal
esteem by Filipinos of all ranks in life.
Frequently the telling of the business success of financial insti-
tutions is by the very nature of their operations likely to be on the
dull side. The Philamlife story, as told by John Lindeman, is far
from prosaic despite the overtones inevitably accompanying the de
scription of a job very well done indeed. Mrs. Naty Osorio Aguinal-
do, Dean of the College of Education of the Philippine Women's
University, gave most valuable collaboration to Mr. Lindeman in the
preparation of this study.
EUGENE W. BURGESS
Director of Research
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THE PHILIPPINE AMERICAN
LIFE INSURANCE COMPANY
by John Lindeman
with the collaboration of
Naty Osorio Aguinaldo
14
Introduction
1 HE NEW REPUBLIC OF THE PHILIPPINES has been called
the United States show window of democracy for the Orient.
Most of us are proud of our show window. To us it is
living proof that the United States has not been an imperialist
power. From the very beginning in the Philippines we made
it clear that our mission there was to build up the political,
economic, and social structure of the Islands to the point that
the Filipinos could stand on their own in the modern world-
and from the very beginning we demonstrated our sincerity in
concrete ways, as well as in words. President McKinley's
promises of occupation in the interest of the Filipinos and not
of the Americans were followed by a migration to the Philip-
pines of teachers and doctors by the boatload, and not of car-
petbaggers. Our emigrants went out into the provinces and
into the "native" districts around Manila as pioneers, not to
make their fortunes but to start the long, long process of edu-
cating a people handicapped by three hundred years of Span-
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ish colonial rule in the skills and the responsibilities needed for
independence in the modern world. As early as 1916 our Con-
gress promised independence to the Philippines as soon as the
Filipinos could establish a stable government, and in 1934 we
jointly agreed on Commonwealth status looking forward to
complete independence by 1946. In spite of the disruptions
created by the second World War, we kept our word, and on
July 4, 1946, we formally gave up our claim to the Philippines,
leaving a new nation behind us.
The Philippines were our protege. The Republic of the
Philippines became our grown up son. We were proud of the
way we had raised the child, and we were anxious to do any
thing we could to make him a success in manhood. For the
Philippine Republic effectively gives the lie to those who would
like to make the world believe that we seek not peace, but
domination; and, in our opinion, our concrete actions in the
Philippines should demonstrate to all of South and Southeast
Asia that our friendship is traditionally offered with sincerity,
and with a genuine interest in the independence and well-being
of the people to whom we extend it.
This is the way we see it, from the star.dpoint of the
people who had a big hand in arranging the sho,x window and
who, therefore, are apt to gloss over all but the most pleasing
of the effects that our efforts have created. Jut those who
are looking through the glass from the other direction - as
observers, and not as past participants - may not see it exactly
tl.at way. The most important of these observers are the
other nations of Southeast and South Asia. Mori, of them, like
the Philippines, have recently attained independence from West-
ex n colonial rule, and they don't worry too much about the dif-
ferent ways in which it was attained. That which is good in
the Philippines, they will reason, is because of independence.
That which is bad is due to the many years of colonialism
(Spanish? American? What difference does it make? Except
that the American was the most recent.) And furthermore, they
say, American domination in the Philippines ha ceased only
in a formal way.
To a certain extent this is true. We clearly have more
influence in the Philippines than has any other country, and
th a Filipinos look to us more than they do to anyone else. Our
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trade is still dominant in the Philippines, and it is likely to
remain dominant for a good many years. We are the best cus-
tomer for coconut products, sugar, and abaca. We are the
principal suppliers of consumer goods and capital goods. The
"Coke" dispenser is as much in evidence in Manila as it is in
New York; soap operas straight out of Cincinnati and Jersey
City fill up the morning time on the radio; most of the cars
come from Detroit, and they run on American gas. With
minor differences, the Philippine Armed Forces even wear in-
signia just like ours.
More fundamentally, some of the more basic institutions
of the new Republic are patterned after ours. The constitu-
tion is very much like ours, though modified to fit Filipino
needs; the separation of powers among the executive, legisla-
tive, and judicial branches of government, elections for a fixed
term, the existence of a detailed Bill of Rights, all are products
of the American influence although in operation there are
some significant differences in the relation of the government
to the individual and to his property. Similarly, the educa-
tional system reflects organization and practices in the United
States. And English is the universal language.
Most of this heavily weighted American influence is a
natural consequence of fifty years of sovereignty over the
islands which ended in a friendly and mutually satisfactory
way. It is only to be expected that strong diplomatic, military,
trade, and business ties would persist beyond the colonial pe-
riod and into the period of Philippine independence. But, na-
tural or not, the persistence of these ties means that, in the
eyes of the Filipinos and of the other peoples of Asia, the
influence of the United States on major trends of Philippine
development did not end in 1946, when Philippine independence
became a fact.
Thus, we cannot rest on our laurels. It is not enough
that we have already demonstrated to ourselves that when in
the position of leading people less advanced economically than
ourselves, we do try to lead them to self-respecting and self-
supporting independence. Because, for so many of the observ-
ers, the demonstration has not yet been completed.
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Although our government-to-government r elations are ex-
ceptionally cordial and friendly, they are nevertheless those of
one sovereign nation towards another. Consegrently, the direct
actions of the United States Government wit;. respect to the
Philippines are of an entirely different order of effectiveness
than they once were.
For these reasons it is especially interestg and pertinent
to look into the way in which private American enterprises
conduct themselves in the Philippines, becaus so very much
depends upon the way in which their conduct is accepted and
interpreted not only by the people of the Ph ippines, but by
the people of Asia in general.
To anticipate what follows one gets the dit,t inct impression
that, with some inevitable exceptions, American enterprises in
the Philippines conduct themselves in a way wl ich corroborates
the assumptions of this series of Case Study, s. That is, in
the normal course of conducting their affairs ai )ng sound busi-
ness lines, they are makirg a distinct and posit.ve contribution
to the economic and social progress of the Philippines. There
is evidence that this characteristic of Anieri n-owned enter-
prises in the Philippines is sufficiently widesp~ :-ad so that the
conclusions of this Case Study - which deal.uch as the Quezon City-project houses are c,,mpleted. Based
on their experience elsewhere and on their analysis of appli-
cants for Quezon City houses, Philamlife offici dls estimate that
well over half of the new residents will fury ish their homes
almost completely with new goods, and virtui ly all will have
to make major purchases of one sort or another.
... Of course, the commercial-industrial ter ,ants have been
and will be spending money for equipment and furnishings, and
local supplying industries have benefited. But here the causal
chain back to Philamlife is tenuous. As has `:`teen pointed out
before, the commercial-industrial buildings w ?uld very prob-
ably have been put up somehow if Philamlif financing had
not been available, and the tenants would h..ve had to fur-
nish them. On the other hand, the housing projects simply
wouldn't have happened in the absence of Phil tmlife, and peo-
ple by and large would have continued to live in their former
quarters with their old furniture.
..One of the Philippine goals on the road owards greater
economic self-sufficiency is an expansion of th local building-
materials industry on an economic and low-cost basis. Philam-
life has definitely made a contribution in this I irection. Some
think that it has been a very big contribution others that it
as been helpful but not decisive. The fact is of course, that
although the Philamlife projects are outstandir z ones of their
rind, they are only a small part of the aggregcte construction
n the Philippines., and it would be surprising i- Philamlife has
)een uniquely responsible for any major stimul is to the build-
i jig materials industry.
However, the company has been instrums natal in the de-
''elopment of some new products and processes Just how in-
strumental is anybody's guess. Here are some examples:
A new type of jalousie hardware is be n? installed in
the houses of the Quezon City project. This new, and
very simple, hardware is patterned aftc an American
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product. It is expected to reduce the cost of jalousies
very considerably and provide some stimulating com-
petition for manufacturers of the old type jalousies.
Jalousies are extensively used in the Philippines, and
prospective home owners will certainly welcome the sav-
ings. (Philamlife engineers estimate the savings at 220
pesos for a two-bedroom house with six windows).
Quezon City houses will have a new type of corrugated
asbestos roofing which has been under development by
the manufacturer and his affiliates for many months.
The manufacturer claims - and Philamlife hopes that
he is right - that this material is ideal for the Phil-
ippines, with itij problems of heat, humidity, and light
frame construction. Philamlife's contract for this ma-
terial was the manufacturer's first sizable one. It is
most likely that this roofing would have been put on
the market anyway, with or without Philamlife, but in
any event Philamlife gave it a real boost.
? The company's contractor has developed several cost
saving methods which are applicable only to "project"
type building. The most interesting of these is a pre-
fabricated "plumbing tree" in which all the sewer con-
nections for the entire house - the water closet, the
lavatory, the kitchen sink, and the shower drain - are
prefabricated in the shops, and set up in the house in
one operation.
? They have also developed a new exposed-rafter ceiling
assembly, in which part of the roof structure is laid over
the ceiling and becomes structurally a part of the ceil-
ing frame itself. This eliminates a large part of the
ceiling framing formerly used.
? Inasmuch as windows were standardized, they were able
to develop a special concrete block for use around win-
dows. The block contains a groove on the jamb side,
facilitating the installation of steel window frames.
? A hitherto idle ceramic plant is resuming operations in
time to supply the Quezon City project with ceramic
floor tiles and glazed ceramic bathroom tiles (this last
a new product for the Philippines). As in the case of
the roofing materials, this plant would probably have
gotten under way eventually without Philamlife, but it
is fair to assume that the Philamlife contract for 600
houses helped it along considerably.
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As of THE END OF 1953 on. 30 percent of
Philamlife's admitted assets were in real est te. the balance
being in the more usual kinds of insurance ompany invest-
ments: First mortgage loans (17 percent), h. gh grade bonds
iknd stocks (16 percent), loans to policyholder ~ (25 percent),
snd the balance in cash and miscellaneous ir. vestments. But
by the end of 1954 the company expects that it , financial com-
mitments for its real estate operations in Que >n City and on
the commercial-industrial projects now under way will bring
the total of real-estate investments (exclusi-% of home and
branch office land and buildings) to just aboL ' the legal limit
of 50 percent of admitted assets. Furthermor practically all
of the company's anticipated new investment funds in 1954
will go into these real-estate projects. This m ans that for all
practical purposes, Philamlife will not, during tlis year at least,
be a big source of investment funds for genes A borrowers in
the Philippines.
Nevertheless, the company will be in a posi ion to influence
the general money market to some extent. On of the favorite
stories of company officials is that they were re_ently approach-
ed by the mayor of a provincial city who asl i d the company
to finance a local street-improvement program The company
had to decline because its anticipated funds we :-e so fully com-
mitted. However. the company officials pro ,posed as a sub-
stitute that the city make a public offering c: bonds for the
purpose of financing the program and, thus, tr3 to raise a large
part of its needed capital from the city's own residents. If such
mpany invest-
ments. But under present company plans the ;ther half goes
c ither to advance Philippine industrialization, e r into housing
projects which meet a Philippine need as well .s a life insur-
r.nce company could reasonably be expected to meet one.
And in its personnel policy the company oes just what
the Filipinos want and require: It develops F ipinos for po-
itions of responsibility. Thus it helps to p,?ove what the
1ilipinos have long believed - namely, that if Lhey are given
z chance they car. hold their own against all omers. Every
clerk in Philamlife feels that he is on the Ica up, and each
rice president is certain that he is not yet at ,he top of the
l_idder. The top may not be with Philamlife; may be with
~.nother business, or it may be in governmen But in any
=vent, there is no limit imposed by the comp,iny's personnel
l,oiicy to the full realization of any aptitudes 'hat a Filipino
+-tnnloyee might have.
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WHAT DOES THE COMPANY get out of this?
We have already suggested that the officials get a great deal
of pleasure and pride from it, but this is hardly enough to jus-
tify the initial investment that went into the company. The
pleasant fact is that the company also makes good money.
A life insurance company is not expected to be very
profitable during its early and growing years, largely because
of the high initial cost of putting business on the books.
From an examination of the records, it would appear
that Philamlife has been no different from what would be
expected. Since the company was organized in 1947, it had
paid only one dividend up until the time this study was made.
That was in 1953, when a dividend of 10 percent was declared.
But during these years it has added nearly P2,000,000 to
its initial paid-in surplus of P1,100,000, all of which is potential
profit in case of liquidation. Its investments, especially those
in real estate, have a market value nicely in excess of the
amount that is carried on the books. And it brings business
to other Starr companies, principally to the Starr affiliate with
which it reinsures.
This does not add up to a spectacularly profitable opera-
tion, as though the company had struck oil or had found gold
on one of its properties, but it does show a respectable invest-
ment return. And the chances of Philamlife continuing to
realize it are vastly improved by its deliberate identification
of its own welfare with that of the Philippines and by its de-
termination to continue to conduct its affairs with this in mind.
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J811i3iness
riters Association of the 3Ihiliprt _ta
M A N ; L A
National Planning Association
1606 New Hampshire Ave.
Washington, D.C.
This is our summary report of the survey which
our organization made for you of leading Filipino
opinion on the following questions:
(a) If a successful American-owned enter-
prise is to sake a significant con-
tribution to the economic and social
progress of the Philippines, what
should be its most important character-
istics?
(b) What successful American-evned enter-
prises are making such a contribution?
In general, how do these American-owned
.lnterprises compare with other enter-
prises (Filipino and other Non-American)
In this respect?
Before going on to our summary, however. I should
like to make certain observations about the survey:
First. we interviewed a total of 22 ;,ersons; one
declined to comment; three were interviewed jointly, and
ve consider it proper to consider their coszosite answer
as a single interview. Consequently, we had 19 productive
interviews.
.ocondly, in spite of the relatively small sample,
1 believe that we have heard from a highly influential
:group of leading citizens who are identifie. as spokesmen
:i,d ooli.cvmakers for their respective interiests, and that
::vncheaized opinion reveals the think .g of a mucL
i-pup_ Their r rojects
Includes Home and Branch Office real estate.
Source: Company records. 1954 figures represent colrnany policy goals
as of February 1953.
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THE POLICY COMMITTEE'S STATEMENT
IN UNDERTAKING THIS PROJECT the National
Planning Association is not attempting to assess or describe how
U.S. business enterprises generally operate abroad. Rather we
are concerned with an objective study of some selected cases in
which U.S. business management has, in pursuance of normal
and profitable operations abroad, taken positive steps toward
raising living standards and helping to integrate into countries
less developed than the United States the foundations of a more
mature economy. We are attempting only to sketch out those
aspects of typical managerial efforts that contribute to the gen-
eral economic and social progress of a host country. In confin-
ing ourselves to this facet of the problem. of United States private
enterprise abroad, we are not deprecating or belittling the other
side of the coin, nor are we trying to write the "success" stories
of nonprofit operations.
Underlying this project are the following assumptions con-
cerning the relationships between U.S. private enterprise and
the interests of the countries in which this private enterprise is
operated:
First Assumption
We assume that certain, though not all, U.S. private
enterprises operating in foreign countries have made
contributions to the welfare of those countries and
that these contributions have resulted from the fore-
sight of management. We are convinced, therefore,
that well-operated and profitable businesses abroad
can establish patterns of behavior that contribute
materially to the welfare of the countries involved
without unduly disturbing native cultures, living pat-
terns, and ideologies.
Second Assumption
Properly managed private enterprise abroad contrib-
utes to its market and economic area an organizational
pattern, within which new enterprises are developed
by people native to the host country. This chain reac-
tion helps to create a manageable, more productive
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economy. In other words, well-run U.S. enterprise
abroad not only can be self-sustaining, but also can
give birth to or stimulate the development of corollary
enterprises as a result of the private: enterprise pat-
tern taking hold.
Third Assumption
A basically private enterprise econon in less devel-
oped countries, of which well-manag.-d U.S. private
enterprises can well be a part, pros ides strong in-
sulation against Communism and political instability.
Therefore, it is to the national intere,,, t of the United
States to have "policies" that prom te enlightened
and well-managed U.S. enterprises abroad. Converse-
ly, it is in the best interests of all p&?ties concerned
that the United States Government u-;e its influence
to promote cooperation between U.S. private enter-
prises abroad and the countries in which they operate.
Fourth Assumption
The soundest way of assuring continur l access in the
less developed countries to those vital raw materials
which the United States needs is to tike cooperative
measures to help those countries impr( ae their stand-
ards of living and strengthen their ecor;omies. One of
the most practical ways of doing this i, to provide en-
couragement to U.S. private enterpris(- to help these
countries develop their resources insoft.? as they want
the assistance of U.S. management organization, pri-
vate capital, knowledge, experience, and technical
skill.
Fifth Assumption
In the long run, the "success" of an enterprise abroad
must be judged in the light of its relations to the host
country. The ultimate success and perr.ianence of the
enterprise must necessarily be related lo the import-
ance of its contributions insofar as th,~ host country
is concerned, since enterprises typical of those we are
studying do not exploit host countri , . but create
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wealth which is shared by their citizens. If U.S.
private enterprises abroad are managed in such a way
that the host countries are convinced they are also
promoting their economic and social development,
then it is most likely that they will receive the co--
operation essential to long-run survival.
Since the above assumptions are general considerations, it
is unlikely that any specific Case Study will bear directly on all
these points. All Case Studies, however, will be measured
against the fifth basic assumption. Our inquiry, therefore, is
an area that until now has been almost wholly neglected.
The files, information, and services of our governmental de-
partments, numerous agencies and special commissions, the Ex-
port-Import Bank and the International Bank for Reconstruc-
tion and Development are replete with current and historical in-
formation helpful to the businessman contemplating operations
in foreign lands. In addition there are many private agencies-,
particularly commercial and investment banks maintaining
foreign departments-engaged in counseling on legal, financial,
trade, transportation, and local political conditions throughout
the world. Our Case Studies will not aid the student or busi-
nessman seeking out specific answers to questions in the legal,
financial, political, and related subjects. We are under no illu-
sions as to the many difficulties that beset management in
initiating and maintaining operations abroad.
We do not assume that U.S. enterprises will go abroad un-
less they believe they can return a satisfactory profit on the
capital placed at risk, although collateral considerations may be.
involved. In pursuing profits, however, the "successful" en-
terprise finds it pays dividends to strive consciously to contrib-
ute to the social and economic life of a host country. For this
reason, there should be no misunderstanding of what we are
studying. We are not delving into the business transactions
of any company under study except as they may relate to
these contributions in our area of inquiry.
We frequently hear these days of the unsettled conditions
abroad, that little or no basis exists for private investments in
foreign countries, and particularly that the world is hostile to
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(J.S. capital and our production methods (tho .gh not to our
~.chievement !) . This may be true among certt n segments of
'he world's population, but an increasing nun )er of foreign
governmental and private leaders are conscit uasly trying to
create and maintain an economic climate favoral e to such ends.
lost of the world is short of capital and very port of dollars
--yet at present it is only from the United Sates that they
may obtain both to a degree necessary to heir continued
F?rowth.
Capital that goes abroad without managemt t-as much of
it did in the early twenties-often constitutes a poor risk. That
which goes abroad under American managemen? -through U.S.
business firms establishing branches or subsi Iiaries-usually
hows better results both from a profit standpoi -,t and in terms
of economic and social contributions to the host ountries. Gov-
?rnmental guarantees by this country are not ne.rly as effective
in safeguarding such investments as the enlighte pied attitudes of
the U.S. businessmen who manage the investme r.ts. This coun-
try has much to offer the world in business orf anization, tech-
nical know-how, and creative capital. The built:ing of econom-
ic units in foreign countries that are not only :profitably man-
z.ged but also provide a positive economic and social contribu-
tion to their host countries are the surest guarc ntees that such
capital will not be subject to abnormal risks.
The rapid expansion of industrial capacity l.ere and abroad
has enormously increased the need for raw ma erials through-
out the world. On this basis alone, it is in our self interest to
encourage private capital to seek profitable ( pportunities in
under-developed areas. And in so doing, we cn demonstrate
that we are creating new outlets for electric po' ;er, transporta-
tion and port facilities, increased industrializat )n, greater de-
inand for U.S. capital goods, and contributing to the increase in
international trade in general. However, unless we can come to
a more realistic "import" policy, the export of J.S. capital will
;;hrink and with it will go one of the principa ways to meet
the present critical "dollar gap." This dollar hortage abroad
is already seriously threatening our nondefense export trade.
Because we live in a world of state trading, exchange con-
trols, export subsidies, import quotas, and inter -ified national-
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istic aspirations there is special need for correlating private and
governmental action in the exportation of U.S. capital. Every-
one, including the taxpayer, benefits when governmental action
constructively complements the flow of private capital abroad;
when such action anticipates and helps create the appropriate
climate, and when it fosters the long-range development of eco-
nomic and trade relations of this and responding host countries.
The fact that we are only studying successful companies
certainly implies that they have been profitable to their stock-
holders, and therefore we will not concern ourselves directly
with this facet of their success. Our concern is rather how
these selected though typical companies have earned the title
"successful" insofar as they have benefited the host countries.
For convenience, we may outline these principal possible bene-
fits in the order of greatest ease in ascertaining their exis-
tence:
I. Contribution to the basic economy
A. Additional resources (land, minerals, etc.) brought
into use for the country.
B. Transportation, energy, communications which are
built, fostered, subsidized, or otherwise created by the
company or by virtue of its operations and available
to the use of the country in whole or in part.
C. Products of the company consumed or used in the
host country.
D. Related industries developed with company assistance
or which are attributable to the company's opera-
tions.
E. Service industries and trades dependent on and aris-
ing because of the operations of the company and the
additional purchasing power of the labor force.
II. Contributions to living standards
A. Improvement in wages, hours of work, and employ
ment conditions.
B. Better housing.
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C. Improved health and sanitation,
D. Greater opportunities for education end recreation.
E. Higher levels of nutrition.
M. I. Institutional, benefits
A. Formation of and use of local capita
B. Improvement in skills.
C. Changes in patterns of doing businer
D. Tax, social, and other legislation enc uraged or fost-
ered.
E. Changes in public administration,
V. Greater civic responsibility.
A. Are the company operations as a v< F-tole tending to
increase the middle class?
H. Is initiative passing to more respons File groups?
C. Are class conflicts decreasing?
D. Is there greater respect for human r ,Thts?
Unfortunately many of these broad areas if benefits can-
not be measured or even detected except over rti considerable
period of time. They will be present or absent in varying de-
t-ree according to the type, size, and purpose of the capital in-
c estment and the stage of the country's deve ,pment at the
time the initial investment was made. Certair.[v the cultural
benefits will emerge gradually and probably onl will be meas-
urable by the influence of the total impact c +` all managed
capital-foreign and local-rather than any on( part of it.
In addition to these external factual areas, we are vitally
interested in studying the relationships and attii rides that have
made these practices successful:
How has the company met the obstach ; which it has
encountered?
To what extent has the company intro& ced U.S. man-
agerial skills and methods cut to fit the operating
picture abroad ?
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How has the company sought and obtained the co-
operation of employees, government officials, and
community; and have the views of these people
changed markedly since the company first started
operations?
Has the company sought to identify itself with the
community as a friendly institution?
Has it sought to train native labor for the higher
skills, for supervisory and executive positions, and
have such efforts resulted in higher productivity,
greater responsibility, and understanding on the part
of labor?
Have the company's practices in investing capital and
securing return of profits been made progressively
easier?
Has the company brought know-how, technical assist-
ance, and business management that could not have
been provided at all-or as effectively-by govern-
ment programs?
Above all, we shall be describing U.S. business manage-
ment attitudes toward its job of conducting successful oper-
ations abroad, its flexibility and patience in meeting the great
obstacles that are presented in so many fresh and challenging
ways. Let no one be deceived by these Studies into believing
that the way of business management abroad is all romance,
huge profits, and success, purchaseable in the market place.
The rewards are adequate, the work is hard but interesting,
and, as at home, the results are created, not bought.
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NPA OFFICERS AND BOARD OF 7,1?USTEES
Chairman: Chairman of the
Board, Amsinck, Sonne & Com-
pany
Chairman, Executive C o m-
mittee: Heathsville, Va.
MARION H. HEDGES
Vice Chairman: Washington
D.C.
Vice chairman: Chairman of
the Board, General American
Investors Company
h i c e Chairman: Executive
I)irector, Trade Union Program,
Harvard University
V i, c e Chairman: Editor, Wal-
laces' F a r m e r and Iowa
Homestead
Secretary: International Pres-
ident, American Federation of
State, County and Municipal
Employees, AFL,
Treasurer: Chairman of the
Board, General Mills, Inc.
Assistant Ci airman and Exec-
utive Secrete y
SOLOMON BAI UIN
I )hector of itesearch, Textile
Workers Ur >n of America
LAIRD BELL
Bell, Boyd, vlarshall & Lloyd
COURTNEY C. BROWN
Dean, Gradt Lte School of Busi-
ness, Colum s University
L. S. BUCKMA 'TER
General Pre dent, United Rub-
ber, Cork, L ioleum and Plastic
"Yorkers of America, CIO
JAMES B. CAI NAY
Secretary-T) asurer, Congress
of Industri.a Organizations
President. 1 ie Yale & Towne
Manufacturi L- Company
WILLIAM (1. I )RD
Director, Fo t Motor Company
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NPA OFFICERS AND BOARD OF TRUSTEES
(Continued)
LUTHER H. GULICK
City Administrator of the City
of New York
CLARENCE E. PICKETT
Honorary Secretary, American
Friends Service Committee
ALBERT J. HAYES
International President, Inter-
national Association of
Machinists
ROBERT HELLER
President, Robert Heller & As-
sociates, Inc.
LEON HENDERSON
Chief Economist, Research In-
stitute of America
ERIC JOHNSTON
President, Motion Picture Asso-
ciation of America, Inc.
FRED LAZARUS, JR.
President, Federated Depart-
ment Stores, Inc.
MURRAY D. LINCOLN
President, Farm Bureau Mutual
Insurance Companies
DAVID L. LUKE, JR.
President, West Virginia Pulp
and Paper Company
JAMES G. PATTON
President, National Farmers
Union
WALTER P. REUTHER
President, Congress of Indus-
trial Organizations
' =ELMO ROPER
Elmo Roper, Marketing
THEODORE W. SCHULTZ
Chairman, Department of Eco-
nomics, University of Chicago
CHARLES J. SYMINGTON
Chairman of the Board, The
Symington-Gould Corporation
ROBERT C. TAIT
President, Stromberg - Carlson
Company
JOHN HAY WHITNEY
J. H. Whitney & Company
DAVID J. WINTON
Chairman of the Board, Winton
Lumber Company
J. D. ZELLERBACII
President, Crown Zellerbach
Corporation
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NPA'S PUBLICATION COMMITTEE
NPA is an independent, nonpolitical, non_ rofit organiza-
lion established in 1934. It is an organization v. here leaders of
agriculture, business, labor, and the professio s join in pro=
grams to maintain and strengthen private initi