Full text of Commercial and Financial Chronicle : September 19, 1963 : Commonwealth of Puerto Rico, Vol. 198, No. 6300, Section 2

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The COMMERCIAL and FINANCIAL

CHRONICLETHE

Volume

198

Number

LEADING

6300

AND

PUBLICATION

MOST INFORMATIVE

New York 7,

IN

THE

FINANCIAL

N. Y., Thursday, September 19, 1963

Price

FIELD

50

.

.

.

Cents

ESTABLISHED 1839

a

Copy

In

2

Sections

—

Section

<?:iy

kmm

Recent

panoramic view of San Juan shows the breadth of
of

the

growth

trend that

new

building construction

program now

characterizes the Commonwealth's entire

in

progress.

Another specific indication

economy.

CONFIDENCE OF BUSINESSMEN AND
INVESTORS PRIMARY GROWTH



FACTOR

2

The Commercial and Financial Chronicle

island.

Record Investments Herald

year

island

record 302 projects of

dollar

"Bootstrap"

signed

up a

which

184,

representing

ments of $53.5

New Industrial Phase
Administration

■

No
in

longer do

themselves whether they should expand
Puerto Rico but, instead, they now ask "when?"
The Island's
chief

economic
rise

firms

direct

in

is

ask

rightfully enthusiastic about last year's

investments

and

plant

expansion

large number of blue-chip companies.

a

which

many

by the creation of a Foreign Credit Insurance to
and

boost

&

Telegraph,

Phelps-Dodge,

"Operation Bootstrap," fiscal
marked

1963

ing point.

Up to

of

success

important turn¬

an

now,

despite the
incen¬

industrial

our

and

then

return

ond

and

third

sec¬

a

even

more

plants. Of the approximately 550
mainland

companies with

tives program,

facturing

most

Rico, nearly

manu¬

start

to

and

operation^
one

manu¬

in

Kayser-

Union

Car¬

bide, and Warner Lambert.

The

factories promoted in this 12-

period
-

brought

enterprises

to

total

the

manufac¬

generated

1,000

over

Puerto

in four operates

The number
jobs created totaled over 60,-

000 with

an

equal number created

island's

dozen

people bought
of

a

more

S. last year than

continent

of

Brazil,

Africa

and

r em

growth,

spearheaded

dustrialization
turn

acted

as

itself.

gram

economic

ark able

by

a

in

has

to the pro¬

spur

There

in¬

our

program,

are

well

now

2,000 industrial plants on the

over

island

manufacturing

a

wide

have

become

economic

growth,

averaging for 10 successive

years

substantial

va¬

com¬

plexes. Foremost among these
are

the

industries,

apparel

the

and

sec¬

and

electrical products industry, metal

advantages of

working, chemicals and petro¬
chemicals, and, late-comers but
panies operate 8 plants each and was enabled by the thrust of this
industrialization drive to main¬ growing rapidly, tuna packing and
one recently started its eleventh.
the leather products industry, in¬
Significantly, the two firms with tain its almost unparalleled pace.
8 plants each are "blue chips" and The
growth rate last year was cluding leather shoes.

locating

it

two

facturers have
had to be per¬

suaded

to

as

the merits and

Puerto

record

is

in

cant

Rico.

now

plant
But last

a

or

19,

year's

nearly
million

of

even

the

manufacturing
or

38%,

signifi¬

more

50

"blue
on

com¬

chips"

the island

have followed their

operations.

—

The

$60
(not

that

company

expands

again and again in Puerto Rico is

Rafael Durand

the best evidence of the Common¬

and

buildings)

wealth's stability and growth, and

$21

million in fiscal '62

as

cate that the main

longer "Shall
Rico?"
This

compared with
—

we

indi¬

question today

manufacturers

many

is

expand to Puerto

by the number of U. S. firms that

plant

success

on

of

the

"Bootstrap"

the

highest in the world,

again above 10%. Net income in¬
creased
net

10.6%

tries

rose

Record Rise in Investments

this

many

that

program

ended

of the

June

brightest

30

saw

names

the island mainland industry locating

on

in
the

ing complexes is reflected by the
increase in shipments to the U.S.:

year

In the

to

per

capita income

continued its upward swing, rising

land's
rose,

the

over-all
in

Latin

distribution

America, the is¬

purchasing

power

some

375

half

than

dozen

a

1955

largest

market

in

as

the

world for U. S. goods. In 1962 the

are

in the

Soap Co., Inc.

sion,

from

$37,000,000
$5

-

last year.

Oil's

$5-million

Union

and

lion-plus

of

our

chemicals

Shipment figures, however,

manufacturing
much

of

the

sumed in

they

production

production

the local

underscore

plants

to

over

plants, shipments to the U. S.

to

through
and

con¬

market.

But

the

industrial

our

Distributors, Inc.

In

electrical

and

rose

electronics

almost six-fold from $13,000,-

000 in
1963.

1955 to

over

lower

$65,000,000 in

'

.

production

The

leather shoe

hesives

the

had

to

mainland

be

but

shipped from
now

through

they

are

Cambridge

Chemical, which recently opened
a

shoe adhesive plant. Faster serv¬

icing

of

obtained

machinery
with

the

service office this

ternational

can

now

opening of

summer

be
a

by In¬

Shqe Machinery Corp.

Operating Corp. of Puerto Rico

Organics, Inc.

(Chemical processor)
The

a

manu¬

facturer
benefits
from
in-depth
growth. Up to last May, shoe ad-

following companies:
Pronto

costs

industry is

example of how the

Family Store of Puerto Rico

Torpedo, Inc.
(Office equipment supplier)

FIRST FEDERAL SAVINGS BUILDING, SANTURCE, SAN JUAN, PUERTO RICO




ex¬

commu¬

the viewpoint of the

(Western Auto Supply distributors)

(Quality meat wholesaler)

steadily

improved efficiency.

available

$163,000,000 in 1963.

Puerto Rico

Prime Meat

since

is

broadening base and in-depth
pansion of

(Drug, novelty distributor)

(Producer of bedroom furniture)

pro¬

vide only a partial picture of our

(Tankage for livestock feeds)

Commonwealth Furniture Co.

petro¬

glycol installation in Penuelas.

Royal Crown Bottling Co. of Puerto Rico

(Vending machines & music boxes)

$100-miL

and

is, moreover, presently expanding
its existing $38-million ethylene

(Soft drink bottler)

(Manufacturer of undergarments)

new

chemicals complex. Union Carbide

Mariphel Pharmaceutical Corp.

Osvaldo Pares Inc.

expan¬

Carbide's

i

Corp.

pthalic

Common-

increase substantially the product

Agricultural Chemicals, Inc.

Arcadia

rose

$5,272,000

million

facility.

range and output

(Vending machine owner)

•

prod¬

$22-million plant for the produc¬
tion of alcohol intermediates will

(Cake and flake soaps)

(Banking and financial printing)

to

wealth's

decade from

again products, shipments to the U. S.

consolidating its position
fifth

of

allied

and

eight-fold

Chemical's

apparel industry, grown
more

to $740, and, with the increased from $89,000,000 in 1955

Commonwealth

Printing & Paper Corp.

Ex¬

indus¬

in little

Concurrently,

Our investments in Puerto Rico
ABC

last

over

almost

recent

income

fiscal

the

5%

new

chemicals

manufacturer, this in-depth ex¬
The vitality of these burgeon¬
pansion means additional savings

jncome

to $432 .million.

In

nity. From

Jump in Exports to USA

and

$518.2 million.

highest

year

to $1.8 billion

manufacturing

climbed 9%

from $695

incentives program.

Under

attitude is underscored

have opened a

of the

no

but "When?"
new

of

ports of products from

including land

for

one

original expansion with additional

plant

promotions

perhaps
that

Two

plants.

more

$38,000,000 in fiscal

over

ucts, shipments to the U. S.

allied

electronics

$15,200,000 in

from

years,

to

anhydride
This

products

New projects such as Puerto Rico

Industrialization

by

leather

1963.

Argentina, Uru¬ in

and Paraguay combined.
Led

1957

the

than the 100,000,000 inhabi¬

Growth

tors

indirectly.
The

rise.

and

of

than doubled in the last half

more

more

$700,000,000.
rect

to

two

Shipments

1963

than riety of products and some sectors
of di¬ that barely existed a decade ago

"Bootstrap" plants to
For

entire

fiscal

Rico's

Thursday, September 19, 1963

.

.

billion-

a

in

continued

million

guay

and the total investment value of

science center to support highly technical industries.

a

half

and

Puerto

from the U.

tants

turing

exports

Can, Bur¬

became

imports

Motor, General Electric, Glidden,
International Paper, International

"Bootstrap"

providing a favorable industrial climate which will be supplemented

American

as

first
market

Thus,

Packing, Colgate-Palmolive, Ford

month

ticularly to the mainland, and the tax, financing and other assistance

"blue chips"

its

lington Industries, California

new

types of industrial activities, the impressive rise in exports —par¬

invest¬

were

more

Roth,

includes

from

were

Telephone

record

He describes the

184

firms such

By Rafael Durand, Administrator, Economic Development

million,

U. S.projects. Twenty-three of

owned

these

last

.

Volume

And

198

will

leathers

shoe

available

Number

also

through

locally

6300

be

Ponce

Tanning Corp., which will manu¬
and

from cattle

leather

facture

hides

goatskins. In addition, orna¬

ments and trimmings, eyelets and
sundries

obtained

be

can

the

on

.

.

The Commercial and Financial Chronicle

search

under the direction of

scientists

nowned

solve

would

production

science

assist

center

industry

of

problems

highly technical industries.
a

re¬

help

would

only

located

now

the island but would

Such

not

serve

This pattern has been
various

industries,

repeated
profit

and

to at¬

in Puerto Rico.

Other

developments 1 will

be

relation

in

to

vested capital are now more

favorable to industry.

more

to press

anticipation of these high than

It is

profits, of course, that has attract¬
ed more than half a billion dollars

in

U.

S.-owned

the labor

land

transformed
with

pool and labor pro¬

an

But

com¬

achieve with the

can

will

uisite

the

and

though

we

req¬

tools.

proper

have advanced

far, we still have far to go.

employment

about 12%

—

force—is

New

will

industry

direction.

And

Un¬
of the

major problem.

a

help

in

this

though this

past

year

proved that to much of main¬

land

industry Puerto Rico

now

is

"pre-sold" for plant sites, we do
intend

not

to

rest

on

our

record.

Huge Stake in

new

"In recent years,

in.

move

other

as

oil

and

first in

profits.

impact

out

this

of

they

when

period

-

electroplating),
plants making

on

certain

geared

to

tendency

traditional

years,

reflecting i the

Puerto Rico's

manufactures

for

further

and

and,

highly has

finally,

industries

making

electronic

equipment,

measuring

devices

managerial
been

other

a

National

New York.

on

The skill of the famed

Puerto Rican needleworkers of 20

and 30 years ago

of

quirements
and

has been trans¬

undiminished

mitted

the

re¬

machines
some island

modern

production.

In

productivity by both

plants
and

to

men

workers exceeds that

women

of their stateside counterparts by

much

as

20%.

as

job-hopping,
mainland
The

the

Furthermore,

bane

of

manufacturers,

island

factory

many

111

is rare.

has

worker

Sp:«

proved intensely loyal and his job
is

highly prized by hirii.

:

in the screening and training

ance

of

SSftSiiSs

8SS8S&

Assist¬

which is

workers,

of the

one

incentives offered by "Bootstrap,"
has
U.

invaluable

proved
firms.

S.

labor skill and labor
there

of

is

to

many

addition

In

the

to

availability,

course

favorable

a

differential in Puerto Rico.

wage

Other incentives include assist¬
in

ance

plant and plant site loca¬

with

tion,
cents

rentals

per

grants

the

for

machinery;

low

as

foot

square

50

as

per

year;

of

transportation

from

freedom

prop¬

erty and municipal taxes for the

period of tax exemption; flexible
depreciation; assistance in obtain¬
financing;

ing
from

exemption

and

Commonwealth

minimum

pending

of

10

the location, up to 17

on

in

representation
hence

is

not

voting

no

Congress

subject

to

and

Federal

incentives

These

taxes).

a

de¬

and,

years

(Puerto Rico has

years

for

taxes

are

of

course

available only to qualified

firms.

"Runaway" firms—that is,

firms that would shut down shop
the mainland in order to reap

on
a

quick profit in Puerto Rico—are

not

eligible for incentives.
Two New Developments

The
mate

become

view

of

First

is

set up

industrial

favorable

is,

moreover,
even

two

more

to

favorable

in

developments.

new

field

the

cli¬

expected

office

recently

in Puerto Rico by the For¬

eign Credit Insurance Association
to

help boost foreign trade by of¬

fering

100%

credit risks.
Commerce

insurance

against

This Department of

program

divides risks

evenly with the Export

Import

-

Bank and is expected to be a boon

island

to

most

tion

manufacturers,

favorably

for

the

Caribbean

of

situated
penetra¬
Latin

and

The average
more
—

family in Puerto Rico

than five times

the year

much income

as

time accounts

are

up

.

.

enrollment has doubled

All

these

.

group.

ening

—

54%
...

...

.

.

.

years

of

public school

State university en¬

have

more

of the

contributed

rapid rise of the island's hard

core

to

the

middle in¬

pace

a more

of advance is quick¬

abundant life to

people.'
☆

☆

☆-—

are

exempt from both

income taxes.

Your
you

own

U.S. Federal and State

They merit consideration for their
and liberal yields.

bank

or

investment dealer

full information.

American markets. Exports to Eu¬
rope are

expected to increase also

GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO

through FCIA assistance.
A second

ent

still

development, at

on

the

drawing

pres¬

boards

give impetus to
island industry, is a science cen¬
but

ter

expected

where

to

basic

and

applied




re¬

Fiscal Agent for the
1311 Ponce De Leon Avenue

San Juan, Puerto Rico

more

Bonds of the Commonwealth of Puerto Rico

sound security

quadrupled.
factors

and

And the

bringing

private savings and

eleven times

expectancy are up

rollment has

come

that marked the beginning of the

island's industrialization

life

has

in 1940

now

as

industries

has

growth

of

private capital

potential,

industrialization

self-help

our

toward

there

trend toward joint par¬

its way to becoming as legendary
as

ex¬

ticipation in industrial ventures."

electric —First

and

own

Incentives

program.

tax

yet to be felt. During the past few

Labor, Taxes and Financing

labor force is

unlikely

are

their

expires. The full

Development Administration.

Puerto Rico's

the

rep¬

local consumption,

other

in

now

move

and

vigor to make Puerto Rico specialized
it is

on

large capital investment;

a

this reason,

plastics

first

as

(such

refineries

developments and processing,

expansions

plants

or

new

a

are

industries

die-casting

land studded with

into

the fastest-

Many of these plants

emption

capital-intensive

Among these

supplying

industry and bustling with activ¬

economy

to

now

of industries

group

heavier industries have begun to. industrial
integration, or its effect

semi

ward with

resent
for

Commonwealth

nature, will continue to drive for¬

agrarian

growing
Island.

impoverished

industrial

the

and

free-enterprise

similar products,

Industry Has

synthetics,

in¬ ity and in which hundreds of new
centives offered by the Economic
ductivity

democratic

munity

of

thousands

of

"Operation Bootstrap," true to its

sluggish,

a

tens

give proof of what a

program

this

years

plants to Puerto

Rico. Contributing to these profits
are

has

20

steadily forward. In less

and

homes

new

labor

in¬ created to help industry and to
than help Puerto Rico, because the two
triple the mainland average, are grow hand in hand and it is the
expected as a result to be even nature of "Operation Bootstrap,"
which

ratios,

schools

op

tract technical industries not now

island.

in

.

Commonwealth of Puerto Rico
45 Wall Street

New York 5, N.Y.

can

give

City

Bank

of

4

The Commercial and Financial Chronicle

The

Puerto Rico's Catalyst—

The

tax

Development Bank

Review

of

pivotal

stimulation

the

decade-old

two

of

the

Rico

developmental

financing
over-all

agency's

remarkable

private borrowers.

Dr.

the

market

Island's

for the

structure.

governmental
agency

municipals and to

tal

investment
the

of

Bank's loans

poses—in fact 66%

sup-

many

facilities

been

available

anced

in

Common¬

wealth. In 1945

fiscal

of

In

which

for

—

Puerto

this

its

Rico,

cor¬

the

capacity

financing

have

opera¬

provided

in

improvements

the

vast

public

basic

services.
With

combination

of

important activities,

velopment Bank

in

the

leader¬

of

aspects

development

pro¬

Throughout its history this

gram.

institution

pand

Loans

from

helped

in

continued

has

services

its

conditions

and

to

ex¬

meet

new

occasioned

needs

Rico's

Puerto

to

rapid

contributed

ing

an

and

toward

stronger

ever

financial

attractive

sus¬

develop¬

and

close

which

ended

assets
stood

fiscal year

30,

1963, total

Development Bank

$112.0 million, the high¬
for

mark

history

and

million

over

end

the

of

period

any

increase

an

total

its

$16.5

of

at

fiscal

previous

Net income of

in

assets

the

year.

$1.1 million for the

also represented the highest

level in

the

Expansion of Lending Operations

Bank's

pri¬

lending operations have been

growing

rapidly.

Through

June

1963, the Bank had disbursed

million directly to

$108.7

to

t

m os

determined that the

satisfactory

to

process

fishermen

assist

private

New policies and

in

and boats

of that

result of these

a

serv¬

public borrowers have been

in

orderly

an

efficient

and

During the past year the

arranged financing for the

further

A

place
the

July 1 of this

on

Development

the

for

space

activity

new

the

During
June

30,

fiscal

loans approved to

1963,

private

ending

enterprise

totaled

$14.3

and

public

registered

previous

of

$10.2

million

16% advance

a

the

over

The Bank's private

year.

corpo¬

covering

for

enterprises,

industries

and

outside

the

of

politan

loans

has

term bonds and notes.

An

the increase by Moody's

was

Investor

Service

in

the rating

tourist
San

line

In

area.

facilities

Juan

metro¬

with

the

jective

to

the benefits

spread

expansion

of

evenly

more

throughout the Island, the Bank's
new

incentive program will apply

lower interest

Moody's

the

are

Puerto Rico Water Resources Au¬

thority,

the

Puerto
ities

special policies

in certain

zones

of

the

Island

according to

established

on

loans

of the Island. The
to

special loan privileges
nated

be

given
desig¬

are

classification

a

the

by

Rico

Puerto

Planning Board. According to this

classification,
metropolitan

the

with
of

a

the

Federal

of

the

the

of

also

became

As

ac¬

of

operation the Bank

agency

conducts

extensive

an

information

furthering

financial

aimed

program

knowledge

at

Puerto

of

public borrowers
information

about

these

to financial groups.

ernment

flow

free

a

ous

$4.3 billion,

increase of

an

clearings for the previ¬

over

fiscal year.

addition

In

tions,

the

to

other

Development

func¬

Bank

outside of the

areas

zone are

additional

also eligible

periods of tax
for

some

12-year

ods and others for 17 year

ex¬

peri¬

gather
ment

continuous,

Development

the Bank

Claude
J.

D.

Seibert,

Morrissey,

vertising
Street,
Dana

Publisher

Editor.

issue)

Chicago

with
3,

and

Published
a

U.

S.

Dominion of
NOTE:

Illinois

Possessions

account

postage

and

of

U.

(Reg.

Dana

[every Thursday
Monday).

on

STate

2-0613);

of

Pan

Other

S.

Patent

Office)

year. Other countries,
fluctuations

in

the

(general

Union,

of

1963

news

135

S.

By

George
and

La

growing

needs

sector.

The

which

are

tution

will

and

ad¬

William

B.

$80.00

per

year;

in

these

remittance

for

financial
services

provided by this insti¬
be

further

to

necessary

Puerto

expanded

Rico's

strengthen
in

economy

the

ahead.

years

AT THE CROSSROADS

of

Excellence,

efforts
for

OF WORLD TRADE

fice

at

York

45

Wall

to

This New Brochure

municipal
of

use

media. The Bank maintains

mass

of¬

an

in

Street

Tells You How

New

City through which its offi¬
the

U.

S.

financial

An

commu¬

indication of widening geo¬

graphic interest in
issues

was

Puerto

Rican

in

the

for

the

apparent

public

bid

proceedings

sale

two

Commonwealth

of

issues

last

headed

A

year.

by

Mid

each

event

bid

1963

case.

Another

the

approval

was

of

bond

U. S. Companies

Among the Major Companies
Using The Modern Facilities of

offer

an

notable

in

securities

among

those eligible for certain

types of

Savings

banks

Panama's International Free Zone
at Colon are
Becton Dickinson

Export Trade

been

invest

in

Colon Free Zone

dences

of

indebtedness

Commonwealth

its

of

corporations
those

on

the

the

of

Rico,

the

public

basis

same

as

Schering

Many of the Benefits
Advantages They Enjoy

Strategic
Lower

•

Faster,

issues

of

any

lower cost service

to

customers—

Modern

•

Reduction

YOUR

•

Dollar

EXPORT

•

No restrictions

warehouses (air-conditioned, de¬
humidified) and materials handling equip¬
ment

INCREASE

of inventory through
flexible
stockpiling
'
T
currency—excellent banking facili¬
ties

TRADE

•

on

remission

of funds

Highly responsible and experienced freight

•

Liberal tax advantages,
bonds

Financial

('ohm

I

roo

0

Zono

Services

recent

or

transfer

to

the

Bank

|

Secretary

of

the

formerly by

a

operations
- - -

Bankers Association had
that

these

funds

be

re¬

dis¬

Name:

me your

{
I

-

;

Company:.
Address:

17

free illustrated brochure

.

J Title:.......
•

operating in the island. The Puerto

-

247 Park Ave., NY

J Please send

aver¬

national bank

import duties,

U. S. Office Colon Free Zone

on

Treas¬

no

licenses

Skilled, bi-lingual labor
Ideal conditions for establishing manufac¬
turing

development

This account, which has

quested

Latin

e

the

of

aged about $16 million, was serv¬
iced

servicing

costs—bulk ship to
Colon by steamer, air
ship from Panama
to anywhere
transportation

•

I

ury.

for

World markets

forwarders

July 1, 1963 of the current account
the

and

daily by air cargo, regularly by steamer
Effective on-the-spot control of overseas
sales organizations

through tMiuurm**

of

location

American

states.

the

Pfizer

Sony
Upjohn

•

evi¬

Puerto

municipalities and

for

other

Colgate Palmolive
Caterpillar Tractor

•

incorporated

and

Joseph Lucas, Ltd.
Pitney Bowes

and

legally empowered to
bonds

Coca Cola

Camera

Here Are

insurers in the State of California
have

Kodak

Canon

Gillette

Through Panama's

investment.

and

Goodyear

Bristol Laboratories

Firestone

June

legislation in the State of

regulated

Expanding Their

and

California to include Puerto Rican

publicly

Are

group

Western

-

Western banks submitted
in

Rico
exchange,

of

diversified along all avenues

organized

year.

in New York funds.

the

financial

was

Salle

Subscription in United

$87.00 per

rate

Treasurer;

offices:

Copyright

American

foreign subscriptions and advertisements must be made




Seibert,

paid at New York, N. Y.

Members

per

the

William

week

a

issue

(Telephone

Canada, $83.00
On

CHRONICLE

President;

twice

statistical

Company. Second class

States,

FINANCIAL

stands

em¬

program

Award of

an

commending

was
AND

Bank

of

periods.

Company, Publishers, 25 Park Place, New York 7, N. Y., REctor 2-9570.

to

Govern¬

ment Bankers Association granted

Another

Dana

the

ready to give added support to the

•

COMMERCIAL

eco¬

continues

momentum,

1

THE

dynamic

expansion

The Gov¬

of the first institutions to

Other

William B.

and others.

resources,

found

its

impor¬

borrow¬

Development Bank
a

10%

the

year

effective¬

more

ly there must be

Rico's

Puerto

talled

the

considered

Puerto Rico's

nomic

Treasury

member

a

Act.

ing, taxation, mobilization of fi¬

Department's current account, the

of Bank

Commonwealth

transfer

the

on

chiefly responsible

was

also

nancial

result

a

year was

tant matters in the field of bank¬

As

Reserve

As

One
Bank

Securities

During

Council

Development

York.

New

islation.

local

non-member

the

Rico, patterned

and Arecibo. As part of its

guez,

one

the

been

a v e

role last

Uniform

The Bank

a

and the municipal¬ the clearing arrangement. During
San Juan, Ponce, Mayafiscal year 1962-63 settlements to¬

of

fiscal

ers

for

h

for sponsoring this important leg¬

Development

Rico,

rates, longer terms governmental

and other

many

which

major

in Puerto

although

administering

in

a

Model

Other Puerto Rican is¬

rated A by

sues

agent,

of Bank maintains

Bank

Baa to A.

been

operation

clearing

Aqueduct and Sewer count
revenue
bonds
from

Authority

themselves,

commercial banks since 1952.

Puerto Rico

extractive debt

Commonwealth Government's ob¬

economic

banks

settling

outstanding recent achieve¬

ment

pro¬

manu¬

estab¬

apprdval of "Blue Sky" legislation

the Island.

on

a

measures

played

exchange

the Bank is launch¬ nity.

special incentive

new

a

gram

was

great

which

1956,

example

directly between

Government

with

ing

banks

Bank

nified

At present

commercial

|he

cials maintain day to day contact

mark.

Council

a

environment in Puerto Rico.

when

provided

physical

this amount, $151.0 million repre¬
sented sales of long, and medium-

loan portfolio of $34.8 million sig¬
another high

is

adopted to improve the financial

of all checks to be cleared among

the

million, the highest figure for any broaden the market
year in the Bank's history. Loan bonds
through the
disbursements

an

Governor,

result of operations

a

body,
in

this nature. Last year the Invest¬

yea'r

the

President

this

of

took

year

Bank

rations totaling $265.0 million. Of

information

development.

the

to

Secre¬

as

Council,

trative

The Bank's basic policy bark
on
objective is to stimulate over-all credit

emption,

lending programs have

a

body

member. As

arrangement

Finance

operation.

industry.

ber of

developed.

plants

improve the efficiency

for

been

tourist

the purchase of motors

borrowers. In recent years a num¬
new

of

to

program

areas

Development

of

buildings in Old San Juan,

history of this insti¬

tution.

The

also

have

development

other

facturing

the

June

the

of
at

of

economy.

Bank

the

and

the

more

environment

in the Commonwealth.
the

exten¬

an

agricultural products, and even

tained economic transformation. It
has

in

the

construction

these

the De¬

assumes

financial

Rico's

Puerto

growth

economic
the

Recently

developed to stimulate bal¬

torical

agent

conducts

tions

30,

was

the

support the Island's economic pro¬

serve

of¬

municipalities, and all public

vate

study it

Department acts
of

important legislative and adminis¬

facilities, Rico and Puerto
Rican securities.
financing the restoration of his¬ In order to

Rafael Pico

borrowing

Bank

participated in

other field of developmen¬

hotel

was

porations.

in¬

sive commercial loan program has

credit

Government

also

has

tal financing.

1 ementing

of total busi¬

disbursements—this

loan

ness

term,

agent—or

Al¬

sources.

though most of the

thereby

ficial

adequately

serviced from other

stitution

named

sectors

have been for manufacturing pur¬

to

and

Bank

not

economy

medium

other

various

to

L]

loans

long

year

and

extensive

an

broad ad¬

a

velopment Bank to administer this

manner.

higher ratings for its bonds.

key instruments in Puerto

supply

est

advisory

After

had taken place

broaden

originally

At

different banking in¬

stitutions.

municipalities

established

by

among the

Formerly this exchange of checks

This

ship

search

tariat

Commonwealth of Puerto Rico, its

Rico's

two

Department felt that it would be

impractical to divide the account

Bank

to

Puerto Rico in

serves

visory capacity. Its Economic Re¬

Treasury

launched to spread economic expansion outside the San Juan area;

of the

the

the

development projects required to

met

Government

the

but

lished

ices, the financial needs of Puerto

Development procedures have been adopted in
Bank, established in 1942, is one an effort to channel developmen¬

p

into

all banks

among

Rico,

would be for the Government De¬

As

funds

Puerto

Thursday, September 19, 1963

.

basic

gram.

special tax and loan incentive program now being

obtain

of

Development" Bank chan¬

investment

in

.

and points out services provided by the Bank and its successful
efforts

was

Successful

Rico's

total assets, and in total loans to diversified

The

Fiscal Agency Activities Highly
1

nels

growth notes record highs achieved by the Bank in net income, in

Pico discusses

exemption.

tion the

,

Commonwealth's

remains tributed equally

area

Through its fiscal agency func¬

By Rafael Pico, President, Government Development Bank for
Puerto

metropolitan

eligible for the 10 year period of

.

(Street & City).......,;

.

Volume

6300

Number

198

.

.

.

The Commercial and Financial Chronicle

5

in 26 states. Office

U. S. "Blue Chip" Companies With

offices,

research

engineering facilities

Manufacturing Plants in Puerto Rico

cluded
are

(Number of Plants in Parenthesis)
American Can Co.

(2)

American Hardware

Motors

American

Beaunit Mills,

The Borden
Brunswick

(1)

Inc.

Beatrice Foods

(1)

Puerto

Rico

company

by
or

a

(3)

Soya, Inc.

There

also

six Ford manufacturing com¬

tural

than

steel

awarded

that

said

Katke

more

already
the

to

contract

a

tons

800

of struc¬

has

been

Unit Steel

Corp.,

Dearborn, Mich., for deliveries to
the site to start in September.

companies

contract

in

located

countries

outside the United States.

a

The

Puerto

plant

though

the

new

will

square

plant

struction

Rican ball

bearing

about

130,000

cover

for

above

ground

is

work

to

ing

year," Mr. Katke said, "Puerto
the

list of

world-wide

locations

of

He

(1)*

Commonwealth Oil Refining (1)

feet of floor'space includ¬

be

awarded.

production,

ployee
will

Ford's

installations."

service

employ

office

The

areas.

about

and

300

em¬

Rican

plant

is scheduled

plant

people,

for late next summer in time for

Ford's 1965 model year.

duction

will

Full pro¬

attained

be

a

A

American

Corpora¬

Norma-Hoffman

Division,

Universal

to

an

established U. S. bearing man¬

and

years

million

cision

prospective employees for bearings

its Philco Corporation subsidiary,

prepare

operate 98 plants and parts depots

their jobs will be started this fall.

will

be

a

year,

used

most of

in

which

Norma-Hoffman

technical,

providing

production during the initial

year

about

12

is

assistance relating to plant design

to

making

The

ufacturer.

intensive

be

and Ford

portion of the plant's produc¬

Mr.

to

cars

tion also will be available for sale

plant is expected

program

S.-assembled

trucks.

later when the

training

axle and other

U.

Mercury passenger

nearly all to be locally hired. An

pointed out that Ford and

rear

for

Falcon, Fairlane, Ford, Comet and

tion's

The first production work at the

Puerto

assemblies

A

con¬

to

yet

steering gear,

Division

operation for about

Rico rightfully now can be added

(1)

Consolidated Cigar

totals.

not in¬

for

panies and 24 sales and assembly

its

(1)

Colgate-Palmolive

the

are

and

t

"Even

California Packing (1)
Carborundum

in

automobile

will not be in

Burlington Industries (1)

Central

S.

(1)

(3)

Corp.

located

U.

subsidiary.

(1)

Co.

be

in

Mr.

buildings, sales

vast

and

of operations.
Katke said

operation

Puerto

Rico's

the Ford Pre¬

will

most

be

one

transmission, mated machining plants.

(8)

Continental Can (1)
Daystrom, Inc. (1)
Ford Motor Company (l),

General Electric Co.

Glidden

Grace

(4)

(2)

Goodrich

(B. F.)

(W. R.)

Gulf Oil

(1)

(2)

(1)

.

H. J. Heinz

(1)

International Paper (3)
International Shoe

(5)

International Tel. & Tel.
Johnson & Johnson

(1)

(1)

Kayser-Roth (8)

Kimberly-Clark (1)

Libby, McNeil & Libby (1)
Midland-Ross, Inc. (1)
Mohasco Industries (1)
National Biscuit
Parke-Davis

(1)

(2)

Phelps Dodge (2)
Philadelphia & Reading (l)
Ralston Purina

(1)

Reichhold Chemicals
Shell Oil

(1)

(2)

Sherwin-Williams
Simmons

(1)*

(1)

Sperry Rand

(2)

Sprague Electric (2)

Stanley Warner (3)
Sterling Drug (1)

Stokely-Van Camp

(1)

Sunbeam (3)
Union Carbide
U. S. Rubber

(2)

(1)

Warner-Lambert Pharmac.
Wilson & Company
Source:

Largest

Fortune

Industrial

(2)

(1)

Directory of the 500
Corporations;
EDA

Records.
*In process

of establishment.

Ford Motor Co. to

/

PUERTO RICO NOW HAS

Build New Plant
In Puerto Rico
Ford Motor
nounced

ball

Rican

The

a

Common¬

construction

firm.

Inc.,

contract

to

of Puerto

the

has

awarded

Blythe Company

preparation

site

and

for the

by

Chairman

of

Marvin
the

sub¬

plant.

Award of the contract
nounced

a

Rico, San Juan, cover¬

structure work

was

L.

Board

Vice-President

Engine,

in

charge

Transmission

Group.

under construction

now

Ford

of

and

generating capacity in Puerto Rico has multiplied 25 times over since

Authority in 1941. And projects

an¬

Katke,
of

Power

creation of the Puerto Rico Water Resources

Precision. Mr. Katke also is Ford

the

course,

will

add

50%

to

today's capacity. All this has, of

contributed to the island's continuing industrial boom and the ris¬

ing standard of living.

Glass

-

Mr-

Katke

would

And the pace quickens!

subsidiary, Ford Precision

Products,

Rican

AS IN 1941!

started

be

few days by a

a

of

its Puerto

subsidiary will

wealth-based

ing

construction

that

bearing plant by

within

25 TIMES AS MUCH ELECTRIC POWER

Company, Sept. 9, an¬

the

said

construction

Puerto

company

first

begin grading the 70-acre

plant site about 15 miles east of
San Juan

section

of

taxes

as

well

as

Authority,

are

agencies, such

exempt from State income

United States Federal income taxes.

Highways

3

and

185,

Loiza).

Precision's

and

with

investment

is

more

They

are

attracting

more

a

private and institutional investors seeking good income compatible

high degree of security.

expected to total between $12-$15
million.
first

as

(at the northeast inter¬

two miles east of

Ford

Bonds of the Commonwealth of Puerto Rico and its various
The Puerto Rico Water Resources

The

plant

manufacturing

will

be

the

operation, to




THE PUERTO RICO WATER RESOURCES AUTHORITY

of

highly auto*

6

The Commercial and Financial Chronicle

fiscal

1962-63

Sea and Air Gateways Give

against

year,

276,419 the preceding fiscal
gain

a

of

62,year,

pounds

16,797,664

or

Measure of Island's Growth

increased to

t

2,566

and

strides

in

Rico

22.2%
air

Ports

in

ship

maritime

and

facilities

Authority tutelage.

tralized harbor and air

tonnage

cargo

Mr.

attest

to

services

and

Sanchez

remarkable

under

describes

Puerto

through

cargo

activity

Rico's In¬

Puerto

ure

During

Juan, gives a good meas¬

San

June

of the tre¬

sea.

well

as

as

1963

passenger

traffic

and

charged
and

the island's

the

air

and

through the International Airport

thority

totaled

forward

with

pansion

to

the

development

1,736,015

island

year,

historically

sents

a

dependent

from

the

an

time
.

ing

mari¬

upon

There

the

Airport

vast

difference

fiscal

Isla

was

Grande.

International

built in 1955 it was

designed for the handling

tween

000,000 passengers

ing and taking
off

would

Ruben S. Echevarria

days

in

hours

to

bulk
and

reached

this

by

1,-

by

outgoing

Rico's

to

the

de¬

time.

The

ment

was

Nuevo

of

the

m o v e

vigorously

d

the

meet

Au¬

Ports

of

ex¬

steadily

of

based

economic

quires
major program of ad¬
improvements

Puerto Rico International

requiring
273,433

years, was

period

a

develop¬

San

of

of

island airports

1958

500,000.

Juan

dock

The

volve
for

Market

Rico's

selection

dynamic

more

foods

of

methods

new

eral

incoming

has

been

just

as

extraordinary,

still totaling 79,074,083 pounds in the

is

10,000

feet

being extensively improved.
The

FINANCIAL

HIGHLIGHTS

FOR

THE

YEARS

Operating Data

year

Net Income Before Taxes
Puerto Rican Income Tax_

needs.

Cash Dividends Paid

Share

Outstanding

Ratio of Pre-Tax Income to

Sales

Ratio of After-Tax Income to Sales

to cost another $2,-

accomodate

to

ENDING

JANUARY

31,

1963

1962

1961

$31,370,721

$25,440,045

$21,867,840

1,980,824

1,584,760

1,268,984

597,052

454,757

369,544

1,383,772

1,130,003

899,440

335,259

197,500

75,000

1.84

1.57

1.25

751,000

720,000

720,000

6.31%

6.23%

5.80%

4.41%

4.44%

4.11%

of

re¬

for the

$5.5 million, compared

were

supply,

Net income for the year was $1.2

million,

compared

the year

before. Thus is indicated

The

port

new

with

$862,000

Authority.

Development Company, San Juan, Puerto Rico

jet
Rico

Puerto

Development Co. has been instrumental in facilitating,
financing, real estate and tourist operational assist¬

to

host

a

for

of

the

private

Island's

enterprises

rapid

$ 3,762,855

$ 3,135,043

2^367,588

1,308,605

969,370

Net

2,959,402

2,454,250

2,165,673

2.25

2.88

3.23

Ratio

1,762,049

2,209,990

1,201,164

exceed the

the

of

of

success

8% achieved in the 1950's.
Puerto

■

Long Term Debt

7,693,788

5,717,050

4,457,719

13,682

13,185

25,592

700,000

ing

real

the

past

dustrial
1

Co.,

20

years

can

be

5,312,518

4,395,260

3,462,757

founded

owns

and

operates

ten

and is the largest retail

supermarkets

food chain

on

in

Puerto

the

Island.

fall

into

financial

of

assistance

enterpreneurs

to

establish¬

ing

existing operations; the develop¬

C

P R I D

industries

new

O.

ment

i

or

of

facilities

new

sale

to

expanding

or

for

lease

manufacturers;

the

financial

and
participation in the expansion of

and

real

tourist facilities through financial

tate

s

es¬

assistance

"right"
the

of

arm

other

or

Common¬

contributions

growth

of

the

Manuel S. Rivera

a

each

velopment Administration.

fiscal year 1963.

played

key role

a

society

of

Its

the Island

seen

underdeveloped

an

world's fastest

one

into

one

the

of

growing industrial
mission

supplementing

nomic

development

vision

of

has

been

the

eco¬

industrial

low-cost

factory

sites

buildings and the granting of

financial

assistance,

of

or

loans

in

minority
special

or

the

form

stock

qualified

for

turers

pur¬

manufac¬

project

in¬

ized

a

and

entering

PRIDCO

operated

greater role than
For

Ten

as

—

a

its

organ¬

public

ever.

income

was

income

$685,000

years

of

Provides

creased

843,000.

firms

and

involved
ventures

or

Assistance

negotiated with

investment

in

the

groups

establishing
expanding

new

existing

operations.

Most

tions

were

in

area.

The projects represented

combined

of

the

private

these

opera¬

manufacturing
investment

a

of

$27,374,000. PRIDCO made avail¬
able

to

these

mately
and

properties.

the firms—32
57

ventures

$16,520,000
It

new

approxi¬

financing

in

helped

89

expanding—find

suitable

cations, committing itself to
1,221,700

PRIDCO
local

-

aided

at
of

of

$9,290,000.

firms

operations

lo¬
pro¬

feet

square

valued

space

of

industries and

included

Ford

Motor

Co., Wilson & Co., American Can
and

Telegraph

And

Corp.

in

keeping with the Commonwealth's

$1,811,000.

policy of bringing industry to all

which in¬
nearly fourfold to $6,Total assets during the
income

Financial

In '63, PRIDCO
203

during

areas

an

on

later,

operating

these

Co., and International Telephone

example, in 1953, PRIDCO's

net income
nearly quadrupled to $2,349,000 on
an

of

vide

"Bootstrap"

decade,

economic

Commonwealth

brief review of its operations in

Economic De¬

from

the

to

the

might best be understood through

"Bootstrap"

change

The

means.

of PRIDCO's work and its

scope

wealth's

operating

Puerto Rico Progressan Juntos/Pueblo and Puerto Rico Progress Together

$85,000,000.

called

net

("

at

operations

c o m-

corporation—now expects to play

1955,

valued

$38,-

including

monly

third
.,

from

ization

With

SUPERMARKETS, INC

estate

private

vestors.

PUEBLO

climbed

$113,100,000,

PRIDCO's

ing

pi m, ent

o

to

three broad categories: the grant¬

De-

an organ¬

chases,

Equity

period

same

Rico's "Operation Bootstrap" dur¬

and
_

under¬

manufacturing and construction will advance at least by

promotion effort through the pro¬

Property and Equip, less dep. and amortization

measure

an

10% in fiscal 1964 and that the rate of growth in the 1960's will

economies.

Working Capital

large

from

industrialized economy. Brief descriptions of extent
services provided and progress made concludes with the predic¬

agrarian
Current Liabilities

in

an

formation that has

$ 5,326,990

which

transformation

in Puerto Rico's mammoth trans¬

*

Assets




Authority's

revenues

By Manuel Sanchez Rivera, President, Puerto Rico Industrial

PRIDCO has

y

Ports

Accelerates Industrialization

AND SUBSIDIARIES

Balance Sheet Data

Pueblo

Rico

's"

agency,

V

was

66

PRIDCO

Net Income After Taxes

Rico,

year

$9,-

v e

Sales

in

fiscal

by gains in all phases of

operations. Total

attributed to The Puerto Rico In¬

Stockholders'

1962-63

when necessary,

□

Assets

in

also

are

Rico Ports

Part

Total

Harbors

other parts of the island

the growing activity of the Puerto

planes, enlarging of the terminal

Pueblo

Current

paid for by the Fed¬

Government.

expanding

of

Current

be

million

Authority, the bal¬

handling and distribution to meet

tion that

Shares

to

ance

marked

Central

developed to

Per

the Ports

the Puerto Nuevo Puerto

a

$10 million, will in¬

cost of about $1.5

a

are some

cargoes

Income

dredging of San Juan Bay,

to cost about

sec¬

Juan.

San

be¬

was

three

begun. The capital de¬

This

100

area

Airport,

investment

an

over

to

dry groceries.

as

growth. With increasing with $4.2 million in the previous
employed
at
higher fiscal year, an increase of 30.5%.

wider

ments.
a

same

rates, the demand for

wage
and

and

this

across

Puerto

on

increasing transportation require¬
In 1960

old

numbers

the

the historic

include

area

million

comprising

The plans for

and

revenues

program

tions

$16
at

of

directly

acres

Through

bulk

ance

Net

un¬

in the latter part of 1962.

gun

planned in the Puerto

Harbor,

Bay from

fa¬

investment,

a

initiated

also

was

than

more

accounts

Net

traffic, modern loading and

on

produce1 as well

and it velopment program, also included
volume plans for improvement to other

1970.

exceeded

was

of

in

of

The International Airport de¬
and, in the current year, doubled.
The movement of cargo through velopments included extension of
transit
and requiring
dock, even though the Puerto Rico International Airport the runway from 7,800 feet to

Puerto

of

be

estimate

few
minutes and ships which
every

that

estimated

was

land¬

planes

year

a

has

the ditions

at

year

difference be-

jet

fiscal
repre¬

365,335 passengers dur¬

1951

When Puerto, Rico

is, of
a

considerable

predecessor airport,

shipping.

course,

preceding,

gain of 16%. This

a

airports

New Harbor Development

administration of

operations,

and

in

other

completed.

and maritime

capital

new

with

with

services.

mendous

compared

created

ploughing back

from

Au¬

public corporation of

a

•growth

2,020,282,

Ports

Commonwealth,

sizable

ended

and Central Market facilities will

permit centralization, free access

Construction in this

cargo

year.

Rico

Puerto

is air traffic.
year

been

of

ment

cilities

fiscal

and

to

preceding fiscal

substantial

showing

the

30,

Actually maritime

safety installations, and the im¬

the

1942

is

expansion

ternational Airport at Isla Verde,
near

by

and

Expansion and modernization of

velopment
moved

The movement of passengers and

lighting

port facilities requiring an invest¬

the

Authority's growing activity.

earlier

increased

thority is

developments and notes that the Authority's

and fire sta¬

new cargo

structures,

2,172,548

The

increased 30.5% and net Income 39%—indicative of the

revenues

Thursday, September 19, 1963

tons compared with 1,778,241 tons

cen¬

new

tion

2,811 compared with

year

a

tonnage

Gains iit last fiscal year of 16% in air passenger traffic, 21% in air

buildings,

provement

facilities in the 1962-63 fiscal year

By Ruben Sanchez Echevarria, Executive Director, Puerto Rico

cargo,

.

loading,
adequate
warehousing
handling
As for maritime services, the the island and the development of and
equipment,
and
number of ships using the port new ones. Most of this work has means of distributing perishable
27%.

Authority

.

i

.

Ports

.

sections of the island, 57 of the 89
firms will be

located

outside the

San Juan metropolitan area when
all the

projects

PRIDCO also

are

completed.

serves

as

a

credit

6300

Number

198

Volume

despite the fact that capi¬

source,

financing is readily available
Puerto
Rico
through
such

tal
in

institutions

private

commer¬

as

banks, factoring and invest¬

cial

.

.

.

Development of industrial sub¬ the
divisions has, in the past several; in
years,

become an important part

of PRIDCO's mission.

subdivisions

companies and such public
sources as the Puerto Rico Gov¬

fiscal

ernment

These

ment

7

The Commercial and Financial Chronicle

'63

Seven such

completed

were

bringing

in

number

the

most

popular vacation areas

minority capital investments and

in¬
played host to 465,267 visitors in vestors have taken the lead with
fiscal
1963
as
compared
with the growth of tourism, as evi¬

1952.

in

99,871
are

Americas.

the

And

The

island

the figures

still climbing. Recent

While

financing.

studies

denced

the

private

by such recent projects as

new

El

Convent©,

Ameri¬

is

constructing,

currently

cost

of

$2,700,000,

hotel

in

western

coast

When

Mayaguez,
of

at

a

150-room

a

the

on

Rico.

Puerto

finished, this hotel will be

operated by Hilton Hotels Inter¬

Con¬ national, under a 20-year lease.
What of the future? The Plan¬
Hilton
hotels and the major expansions ning Board expects that in fiscal
U. S. Small Business Administra¬ 200,000, cover 1,548 acres and in¬ lar visitors. It has been estimated
of the Caribe Hilton, the Condado 1964 net income, manufacturing
759
tion and the Area Redevelopment clude
factory sites. In the that between 10,000 and 11,000
and
construction
will
Beach
and
the
Dorado
Beach income
hotel
and
guest
rooms
will
be
Administration.
In
fiscal
1963, past two decades, PRIDCO has
PRIDCO loans
supplied industry with 489 build¬ required to meet the ever-grow¬ hotels, PRIDCO still functions in each, again, rise by more than
Development Bank, the

completed

a

of

cost

Condado

50.

indicate that by 1970, the Com¬

cana,

$19,-

monwealth expects 872,000 regu¬

quistador

to

PRIDCO

by

represent

Lagoon,

El

Dorado

and

,

amounting to $1,-

648,000

granted to 27

were

com¬

panies and minority equity capi¬
tal

investments

totaling

ings at a cost of more than $77,-

ing demand at this vacation para¬

this important aspect of the econ¬

000,000.

dise. As

omy.

tion

$570,000
Mecca

made in five industrial op¬

were

erations. These figures do not in¬
clude the

dollar

than $2,356,000

more

credits

facturers

to

offered

Puerto

with

Rico,

trade

winds

New

England

and

its

balmy
around

year

"Boot¬

under

climate

has

spring

fast

-

become

has

summer
one

of

result, hotel construc¬

boomed

ever

since

the

In

fiscal

'63,

PRIDCO

ap¬

proved investments of $922,000 in

10%

of

Island

will

Puerto

Rico's

growing

of locally

owned

facturing
served

enterprises

by PRIDCO.

tourist

facilities,

mainly

through

Hotel, both in San Juan. PRIDCO

tions

nancing,

properties

totalling

also

fi¬

grants

and

$4,650,000 for

expanding operations
to

com¬

1963,

and

new

made

were

Last year

locally owned firms.
The

$22 million

vestment

in¬

expansion

announced

Union
the most

by

Carbide Caribe, Inc. was
significant development of fiscal
1963

in

PRIDCO's

subsidiary,

wholly-owned

Foreign

Trade

of Puerto

Rico, Inc. The

vestment

is

of

the

for

additional

an

No.

zone

7-A,

Zone
in¬

new

Sub-

in

for
producing petrochemical products
related

to

thetic

rubber

the

expansion is
because

it

Penuelas,

plastics

and

passengers

This

significant not only
create

used Puerto Rico's

syn¬

industries.

will

2,000,000

construction

plant

in

120

International

new

jobs but because it demonstrates
the soundness

of the Zone's duty

advantages and will probably at¬
tract

related

Rico.

The

industries

plement

Union

existing

$38. million

cal

to

com¬

Caribe's

petrochemi¬

The

plav

Puerto

will

Carbide

operations.

pected

to

plant

new

Zone

is

ex¬

increasingly

an

important part in the future
pansion
trial

of

base

wealth's

and

role

trade and
tween

Rico's

Puerto
in

the

ex¬

indus¬

Common¬

combination

a

as

manufacturing link be¬

North

and

America.

South

Sale and Leasing of Facilities

Since

firms

average of three

an

week

a

to

move

Puerto

PRIDCO must maintain

Rico,
active

an

inventory of plant sites and fac¬
tory buildings

which

be

can

oc¬

cupied immediately. Construction
as

rule

a

gories:
for

falls

into

standard

lease

signed

specialized

the

cate¬

buildings ready

sale;

or

for

three

buildings

specific

industries;

de¬

needs

of

plant

and

expansions. A total of 31 factory

buildings

completed and 17

were

others expanded in 1963 at a cost
of

$4,271,000.
■

Outstanding
ects

completed
included

year

plant

of

Shoe,

this

PRIDCO

by
new

facilities

aries

This is 13 times the 1950

construction proj¬

or

expanded

local

subsidi¬

Kayser-Roth,

Wilson

for

Shoe,

jets arrive and depart at the rate

day! The airport is used by twelve separate airlines, American and

foreign. Truly this is one of the world's great "Air Thruways"!
■

International

figure and almost equal to the entire population

of the Puerto Rican Commonwealth! The newest
of 32 per

and

Only about 3 hours from New York City, and 20 minutes from downtown

provides additional proof of the

Burlington Industries. The largest

San Juan, International Airport

project

growing importance of Puerto Rico to world markets.

was

B.

a

V.

tures,

completed

■

Privately financed

completed and

during

included

a

for

Corp.,

the

California

and

processing
&

put

a

tuna

op¬

year,
can¬

$1,700,000

for

Libby.




Federal and State income taxes.
more

with

a

They

are

from

attracting more and

private arid institutional investors seeking good income compatible
high degree of security.

Packaging

tuna

$1,000,000 tomato

plant

Bonds of the Commonwealth of Puerto Rico are exempt

ven¬

in

fiscal

$3,700,000

IBEC's

cannery,

Neill

1963

$600,000 PRIDCO plant for
D.

eration

nery

fiscal

in

Libby,

Mc¬

outlook
1960s

is

substantially

of

manu¬

are

In

the
the

Hotel early in

strap."

munity

and

decade

for

the

that

the

surpass

the Caribe
Hilton loans to four tourist projects. the better than 8 % average an¬
This included a $200,000 partici¬ nual growth attained during the
the 1950s.
PRIDCO has helped meet this pation in the financing of the 1950s. PRIDCO, we believe, will
demand by assisting in the
de¬ new $4,200,000 Holiday Inn and play an ever expanding role in
velopment
of
Puerto
Rico's a $650,000 loan in the Pierre the conversion of these projec¬

opening

manu¬

part of the industrial

as

incentives

granted

in

for Tourists

a

THE PUERTO RICO PORTS AUTHORITY

into reality.

8

The Commercial and Financial Chronicle

last

network,

Small Business Firms Are

loans

i

Fomento

Puerto Rico is

now

beginning to spawn

and moderate businesses

it needs to

the

performed

a

for

of

establishment

the

By Gaspar Roca, Jr., President & General Manager International

plants, with an initial invest¬
ment of close to $60
million were
concluded

Economic

the

by

Not too

De¬

velopment Administration during

economy's require¬

The need for small business equity capital spells investment
opportunities which Mr. Wong, head of the Islands only active,
publicly-held SBIC, discusses in general. He also specifies the

the

type of investment his firm has made to illustrate prospects for

side

the

area,

thus giving better geograph¬

ments.

investment

Puerto Rico Enterprises

available to small business. Nego¬

302

sizable number of small

a

serve

also

has

Rican

of the

Over 63%

past year.

the

negotiations will be located out¬

growth.

San

Juan

for the

name

the

where

unofficial flower of the Common¬

of life"

wealth of Puerto Rico. It's

luxuries.

let

a scar¬

crimson tree with bright

and

blooms.

red

the

in

omy

Webster
of

been

burning
10

and
even

should

go

during the next

higher

10.

Last year's per capita income in¬
of 10.8%

crease

cation.

is only one indi¬

Look at the GNP

it passed the $2

record:

billion mark last

year.

There

are

behind

many reasons

the startling rise in the economy

of Puerto

Rico.

out of the 100

The fact

that

50

leading U. S. blue-

chip industrial corporations have
installations there is one. Twentythree of the 184 U. S. owned proj¬
ects

initiated last year. The

were

brought

blossom.
more

almost

It is these young

many

act

companies

there

And

now

business

are

reasons.

in

been

growth,

4,000

a

and

men

with

the

past

Simul¬

years.

increase

who

have

in

higher

readily noticeable public taste
living.
Hence, we be¬

a

for better

lieve that the businesses that fill

these

better

grow

at

a

living demands will

greater rate, than

the

rest of the economy. These service

firms

should

much

grow

faster

the well-established,

than

facturing
mands
need

have

manu¬

In turn, these de¬

ones.

generated

a

by local businesses for

great
more

equity capital. The result is that

"Bootstrap"

economy

is

now

the verge of blossoming into a

shared

this

in

need by small and

companies

and

the

local

It

is

in

this

Puerto Rico's

tential lies.

area

that

public,

enous

Today, the U. S. Federal SBA
feel

greatest growth

Why? For

po¬

one reason,

personal income levels of the Is¬
land

have

reached

families and friends.

fast.
we

the

point

relating

to

problems

unique to Puerto Rico.

For

example, business planning
systems controls are

pioneer stage in the Puerto

a

Rican economy. Another problem
and

major

a

scarcity

the

recently

has been until

one,

middle

of

management talent. A small busi¬
is

ness

only

good as its man¬

as

agement.

program

through
f

o

i

in

million

Rican

one

companies,

these,

Rico

Capital

have found

we

problems of

expanding

-

solve

to

have

indeed

set

of

listed

Gaspar Roca, Jr.

in

far

as

program

in

has been

meeting

some

The local SBA-

a

of this demand.

ly the most active in the entire

to

have

We

gerial

invested

our

found

abilities

companies.

superior
in

mana¬

Puerto

young

as

it goes, but un¬

purpose

investment

channel

has

to

those

situations that promise

most

in

half billion dollars in invest¬

a

hired

ment,

close

thousand people,

six-fold

almost

to

hundred

a

and sparked an
step

in

up

our

the

We partici¬

rapid growth.

and

encouraging.

But all this is

per

am¬

expansion plans.

mainly

taken

place

States

know

not
-

only

how,

tech¬

but

the

technique of widely held financial
control

well.

as

Chalet:

Swiss

hotel

of

past

the

in

the

nological

only part of the

in1 the

made

business

middle

printing

These

and

complex

a

restaurants

and

of
an

example of the "go public" ten¬
dency

applied to Puerto Rico's

as

rocketing tourism
The

total

investment.
of product

range

service is suggested

or

by additional

machine

firm,

a

company,

a

supply stores and
of

bootstrap" story also

important

implications

for

of

ducer

feeds,

a

tankage

manufacturer

garments,

furniture,

maker

a
a

dis¬

materials,
We
ture

and

of

a

pro¬

livestock

ward:

stateside

individual

institu¬

and

tional
of

its

investors.
little

told

Here

are

three

an

the

Puerto Rican

the

U.

gressive

bedroom
a

of local waste
office

stock

swing-back

market,

educational

activities

local branch brokerage

chapters:

"Our

(Latin American)

vate

skills

and

.

private

.

.

through encouraging pri¬

investment

channeled into their economies. One

equip¬

harness both
would

be

funds

foreign and domestic capital

through

the

establishment

of

be

to

important

feel

will

way

to

resources

private,

broadly held investment companies."
Hon. William Fitts Ryan,

confident that the fu¬
demonstrate

that

now

Congressman from

the

(CONGRESSIONAL

manag¬

March 19,

New

1963)

panies.

Hence, Puerto Rico Capital Cor¬
poration

is

investing

in

these

human resources—in the future of

people of Puerto Rico—and in
business

acumen.

They

intelligence
are

and

the flamboyant

bloom of the Island's economy.

international inbeatment

Company, inc.
San

Juan, Puerto Rico

York

RECORD,

selves by the growth of their com¬

of
ag¬

of

organiza-

foreign economic policy is designed to help these

areas

ing small firms will prove them¬

their

the

supplier.

talented businessmen

the

securities?

have been put for¬

recent

S.

of under¬

manufacturer,

soap

chemical processor

ment

for

reasons

a

phono¬

We have also invested in

in

Many

soft
chain

a

coin-operated

a

boom

drug

a

distributor,

aids

bottling

the

company,

distributor,

food

beauty

auto

of

"other

holds

particular

service firms.

on
a

been

tier

with

scale,

emphasis

have

graphs.




prerequisite to

necessary

from

story. The other part, which has

This

investments

Our

tributor

Cable Address: Baccate

which

going public

are

of the firms. As a matter
names like these:
Bacardi; Com¬
"outsiders" have done for Puerto
monwealth Oil; Pueblo Supermar¬
policy, we do not seek control
Rico,
but
what
"insiders,"
Puerto
of the companies in which we in¬
kets; Puerto Rico Telephone, and
vest.
The
interest of
our
2,000 Rican entrepreneurs and corpora¬ San Juan Racing Association.
stockholders has been most active tions, are doing for themselves.
Why this surprisingly sudden

of

BROADWAY, NEW YORK 4, NEW YORK

Common¬

enterprises

owners

drink

26

successful

York

1963).

of

vending

Exchanges

New

(May

Girard. Industries: Puerto Rico's

1

$700.

into

funds

been

and

Members New York and American Stock

of

Co.: first

corporation

leading

capita income from $120 to over

Rican businessmen.

quality

Established 1877

offering

Corporation,

services in all phases of manage¬
ment

include

JESUP & LAMONT

are

furniture
manufacturer
the fortunately it doesn't go very far. after only seven years of opera¬
only active, publicly-held SBIC True, during the past 20 years tion. Typical of local "bootstrap"
these new facilities have brought
on the Island, provides consulting
manufacturers who have imported

major force

office, undoubted¬

com¬

widening

the

on

family

bitious

description is

vest-pocket

right

Who's

ever

owned

for the first time
as a

smaller fry."

all

wealth

Exchange

of

a

Puerto

an

Exchange

Typical

Commonwealth,

the

dozens

blue-chips and hundreds of

This

listed

be

Stock

up

including

million.

Rican

Rican Cement

Rican

com¬

panies

To

economy.

staff

the

$2

over

in 13 Puerto

year

the normal growth

rapidly

of

investment

our

Puerto

has

value

sample

a

spectrum

Puerto
Puerto

S.

U.

$200

over

just

among

the

inside and outside Puerto Rico:

Close

thousand

a

number

and

their securities to the public both

suc¬

cessful.

is

product

ntives.

n c e

20,

panies that in

other

Highly
to

Here
Who

the

Today
to

general

total value of $50

a

quadrupled to

rgiveness

and

only

were

available to the

doubled

tax

branches
In

equities
million.

can

there

ago

public with

Ri¬

"Puerto

clecade

about ten Puerto Rican corporate

thing like this:

industry

problems within our expe¬
are

The "Go Public" Trend
A

e-

businesses, indig¬ pate in the capital appreciation of two rather than 20 years, is the
to Puerto Rico, presents a our investments
jointly with the complementary tale not of what

has not been favorable
investment
opportu¬
publicly cited, that is small busi¬
nity. In the past, the main source
ness. The small firms,! particular¬
ly those that service the bluechip of capital has been the savings of
have grown remarkably

is

m

Some
rience

interna¬

moderate-sized

group

one

potential

o

s

to attract new

Our

Equity Needs

well-informed

this type of investment are many.

middle class economy.

>

have

the

great,

mana¬

The infusion of this group into
the general population has caused

dozen

a

investment

the

idea which

has begun to catch fire.

tion

However, even though the need
and

Mr.

joint ventures and calls attention to the

dollars un¬ tionally interested businessman,
normal com¬ and you'll probably get a defini¬

channels.

mercial

to

though all segments of the

economy

colleges,

fill the ranks of

marked

a

This equity

Even

five

skills and command better wages.

on

"Operation Bootstrap,"

another. The tax incentive

Roca also notes the rise of

need

through

in

known

has

and

graduate

available

Tal¬

Island's

universities

who

greatest

its tpeople.

the

is

that

ly needed

the

as

growth

Rico's

from

firms

habits of

sample Who's Who of Puerto Rican firms whose

a

newest local "bootstrap" effort—the investment company

and business

great job that Fomento has done,
is

main

resource:

capable people

flames

the

the

decades-old

control. The former President of

publicly available in and out of Puerto Rico.

are

Investment

The Small Business

gerial skills that have been bad¬

has

Quing N. Wong

years

offers

PRIDC0

try.

ing

taneous with the economic growth

bright for the
past

capital.

Puerto

flows

small

has

economy

complement the out¬

or

to

year.

The Island's

management and family

securities

Mr. Roca is not unmindful of

steps to change

average,

women

brilliant."

first

Say "Operation Bootstrap" to an

which

or

difficult

monies, available to those grow¬

fine

being

"flamelike

Island's

combining both public and private

ent

the

relatively recent rise of local Puerto

to match

natural

sense

the

Companies Act is another source,

However,

econ¬

is

known

going public which offer investment opportunities for

internal

due

Puerto

Rican

Likewise,

well

growth capital is being generated

also the word
describe

"necessities

longer considered

no

side-fostered

Flamboyant is
to

American

are

Company, San Juan, Puerto Rico

firms

money

metropolitan

ical balance to the Island's indus¬

Flamboyant is the

Investment

individual and institutional investors.

factory jobs created by these

new

Thursday, September 19, 1963

.

Investment Opportunities in

valuable service in making funds

tiations

By Quiiig N. Wong, President, Puerto Rico Capital Corp.,
Santurce, Puerto Rico

the previous year.

over

.

403

totalling $8,795,840—a 50%

increase

Important in the Economy

handled

year

.

Volume

tions like
Fenner

198

Number

6300

Merrill, Lynch, Pierce,
Smith

&

and

the

.

.

at

The Commercial and Financial Chronicle

.

least

in

the

beginning,

Nonetheless,

as

decades-old habits of money man¬

couple

pectedly strong acceptance by the

agement

company

island's

the middle class

the

investing public back

middle

securities

Rico

unex¬

1950s

of

in

pioneering

a

offering by the Puerto

Telephone Co.

But

.probably

of San Juan's

"Puerto Rican

have

as

leading brokers:

companies have at

a

to

By
i

II

The Joint Venture Trend

Not

only is local Puerto Rican

industry beginning to feel its oats,
but

the

Government's

Economic

a

developing

family control,

most

of

fact,

itself

in

that

country"

small

go

public

catch

scale

new

stockholder

can

be

found

Rico,

so-called

in

the

but

physician,

druggist,

at¬

university professor,

en¬

dissolu¬

tion.

gineer,

insurance

agent,

people's
was

invest¬

limited

to

today it also includes

only

energetic

creative

but

sive

community

to

also

highly

also

Bootstrap's
into

moved

picture

any

two

"other bootstrap" a*

kind of roaring
things

First,
spawn

Rico

own

by

a

business journalist:

auto¬

has

already.

of

they

cash,

not j ust lip

beginning to

are

service,

part of it.
Many of
kind

entre¬

fort,

of

feel that it is this

us

do-it-yourself,

local

this "other bootstrap,"

way

re¬

mate

story,

Rican Rico,

new

class

not

but

in

as

well.

places

just

many,

in

many

by

coming U. S. producers and suit¬
island

able

partners.

Director

J. Diaz-Hernandez

"Today
does

not

plant

or

on

its

U. S.

a

wish

in

As

EDA's

the

U.

S.,

put it recently:

which

company

to

underwrite

a

other investment entirely

own

find Puerto Rican

can

capital ready to share
nancing

well

as

...

of

pool

as

engineering,

a

administra¬

tive and managerial talent, there¬

by
of

availing

itself

of

phases

all

island know-how."

Theory has paid off in practice.
During the past
joint

ventures

close to

year

of

variety

one

or

another have taken place between

island

A

and

stateside interests.

typical

such

win-Williams

medley:

Co.,

the

Sher¬

Cleveland

paint producer, joined forces with
de

Sues

23.000

A

Bayaman,
of

Mayol

provides

in

a

factory

in

fast sprouting suburb

a

Juan.

San

Co.

and

foot

square

Sherwin-Williams

75%

of

the

capitaliza¬

tion, Mayol the othfer quarter. In
similar alliances Reichold Chemi¬
cal

Morton

and

island

found

the

is

deal

to

agreement
monwealth

three

bagasse

into

C.

NOW 18 YEARS OF STEADY GROWTH

signed

produce

Oil,

also

while

newly

entered

wallboard

have

ambitious

more

even

an

way

Saldt

counterparts,

by

WATER AND SEWER

Com¬

CUSTOMERS

Bootstrap
kind

this

go-it-together

will

rangement

found

be

REVENUE (IN MILLIONS) $
14

□

WATER *12,070,054

■

SEWER *

REVENUE

that

feel

observers
of

NUMBER OF CUSTOMERS

350

and

Brewer

REVENUE AND

(IN THOUSANDS)

National Bagasse of Vacherie, La.

2,167,387

ar¬

in

ni icTnMcoc

an

WATER

increasing proportion of the thou¬
sands

of

incentive

new

ventures that

backed

programmed for

are

the decades immediately ahead.

And

in
The Investment Companies

This

is

Trend

the pace

least1

the

probably

known

and newest

chapter in the

"other

bootstrap"

story:

quickens—

at¬

an

1962

1963

tempt not only to have local in¬
dustrialists

do-thou-likewise,

participate personally

but

increas¬

middle

moneyed

ingly

Rico's

Puerto

induce

to

class

to

in modern

notion

Act

Companies

of

Investment

had

as

its

which,

1954

without going into too

tail,

nine

embodied

the

in

ago

years

was

much de¬
objective

prime

Aqueduct and Sewer Authority performs two major services for the people of

Puerto Rico—the distribution of pure

service. Year after year
of these

development.
The

The Puerto Rico

water

into

areas.

revenues

everywhere in Puerto Rico sets

even

water and the maintenance of modern, efficient

an

the smallest hamlet meets the

have increased

sewer

more

than five times

over.

■

And

example for purity. The drinking water that is piped
rigid standards of the U.S. Public Health Service. The

supply is constant and abundant. The rates
for both water and

sewer

since its inception in 1945 the Authority has shown rapid growth in both

Customers and

are

service, is under $4

low. Average charge to residential customers
a

month.

■

The bonds of the Puerto Rico

"to enable Puerto Ricans to share

directly in ownership benefits
an

expanding

industrial

of

econ¬

omy."
To

come

make
a

the cake

series

as

principally in the

taxes,

was

area

of

put forward.

many

this

as

one

apparently
didn't




well secured and fully exempt from Federal and State in¬

institutions. The

Authority's

latest annual

provide

an

attractive return to

report is available

on

incen¬

of solid

tives,

Like

sweet

are

taxation. These sound investments, at current prices,

individuals and

possible

ideas,

Aqueduct and Sewer Authority

work

good
out,

pay

to be

ef¬
that

will in the long run tell the ulti¬

this

"A

ning,

to

begun

Puerto

top

But

success.

said

brand

described

preneur,

cently

be

can

Puerto

its

to

"marriage brokering" between in¬

Executive

prob¬

lems."

has

sponsor,

the

.

respon¬

social

Development Administration, Op¬
eration

.

and

velopment right from the begin¬

deal too early

good

a

describe this

ex¬

torney,

in

It is

just

ample,

ended

these

fective economy.

nearly

for

of

experience

not

And second, while the Puerto
insurance,
hotel
development and other phases of Rican middle class backed the
an
increasingly modern and ef¬ concept of dynamic economic de¬

"underdeveloped
world:

.

is

manufacturing,

kind

not

in

name

he

real estate:

in

list

the

this

too

ment

to equity in¬

resembles

of imodern, efficient businessman
just is developing in Puerto Rico

manager and

few.
Most

ex¬

"model" investment company, but
effort

a

fire.

for

dealer, dairy

property appraiser, to

of positions and profes¬

Puerto

ing

very

to

mobile

past

100 local people

over

Our

every

a

begun

closely

tried to prime the pump by help¬

organize

the

investment

organization,

th^m

vesting.

sions

government

has

own

of roster

position.
the

1958

just
the

idea, like the

gether well

an

distaste for minority

a

Our

in

years

ample, has managed to bring to¬

desire for quick high

a

investment

wants

of

of

notion,

as

overwhelming preference for real
property,

works.

everybody

in

of the world. Among these:

yield and

Now

dominate

consciousness,

otherwise

tradition

long last learned that stock issue
get into the act."

to

incidentally

hundred
areas

important

as

anything else is this comment by
one

they

continued

9

Puerto Rico Aqueduct and Sewer Authority

request.

Puerto

other

The Commercial and Financial Chronicle

10

Commonwealth Banks and

as

their

as

Puerto Rico, and

share

proximately

review

Rico's

Puerto

of

exceptional

pinpoints

growth

developments sector by sector including banking services,

Rico

during

business in Puerto

has

decade

last

the

exceptional.

ment

houses, and office buildings

Hotels,

at

a

N.

been

has

P.

million

ing at the rate
of

a

year

Manufacturing

esti¬

tive

it

that

the

next
year.

for

jobs,

is

here

agriculture

Webster E. Pullen

now

position

the fastest gaining

as

Thus, the out¬

be

Bank

today

deposits

at

stand

loans at $666,133,954. The local chartered banks,
and

$946,002,524
branches
New

and

York,

communities

smaller

service

bank

about

has

the

gap

passed

will

be

and

land

with

two

is

Rico.

Their

watched

being

high and there is an in¬

very

bus

possibilities

manufacture

of

industries

service

and

Puerto Rico

in

from expanding corporate entities
States.

United

the

from

and water require-

power

in¬
en¬

has

of

Ronrico,

strongest

the

Rican

Puerto

to

in

spirits

within

the

United

mated

sumed
The

1961,

quality

when

advantage

strong

cocktail

brought to market, Rums

of Puerto Rico

sumer

high

new,

Daiquiri

frozen

was

a

of

was

its

quick to take

favorable

acceptance,
emphasis

and

on

the

con¬

placed
use

of

-

5.7%, and during
an

Martini

is continuing to

numerous

expand,

additional

mixes

placed in distribution.

share of the U. S.

rum's

spirits

in Puerto Rico?

still

is

market

of the total dur¬

ing 1962, it has increased rapidly

only 1.3% in 1949 and 1.6%

recently

as

these

the

reveal

which

steady

occurred,

has

extent they mask the

some

strides

ous

Although

1959.

as

figures

cent

made

U.

million

in

re¬

through
of

rum

virtually constant at 1.1

cases

per

and it

annum,

not until 1957 that sales

was

to

vigor¬

rum

1953

consumption

S.

remained

by

From

years.

their

commenced
movement.

brisk

During

cans

consumed

lion

cases

of

really

upward

Ameri¬

1962
than

more

mil¬

2

indicating

rum,

an

annual increase in

average

As

the

revealed

the

gain

in

shipments

to

been

even

explosive.

more

to

Tourism and
is

in

changing taste to lighter alcoholic beverages undeniably

to

to

continue

projected

the

outpace

growth

maintained

and

standards,

over

the

is

rum

exempt

from

the

output and

reasons

redounds to the

shipments
the

sumption

on

Fed¬

mainland,

the

Rican

rum

exports climbed almost 25%

dur¬

eral

taxes

Puerto

on

to $34

1 i

by

total

not

and

the

which

not

U.

S.

towards

light

are

in

strong in taste,

ing the past two
rum

only

body
has

rum

producing

areas

Rico

highest

(which

have felt the

currently

accounts

dollar amount

for three out of every four bottles

collected from

of

nels) that has benefited the most.

Common¬

a

wealth

non

of

rum

Will Keep Its Lead

lights the dy¬
namic

Actually,

prog¬

ress

of the Is-

1

d's

nounced

bur¬

geoning

rum

industry

the

its

Donald I. Trott

of

segment

past five
as

the

an

years

and

important

Puerto

Rican

economy.
a

exposure

12-fold

tourism

though

during

most

the

pro¬

five

past

the shift in American tastes

away

from

whiskies,

smoother
been

bonded, blended

and

and

lighter

underway for

and

over

drinks

some

time.

to
has
As

indicated by the fact that between
1949 and 1962 the combined pene¬

Reflecting

a

into

1950

indicated

the

has

been

States

limited

As

cases.

Rico's

imports

United

to

result,

a

the

of

percentage

68.8%

in

1960

76.7%

and

1962.

Government's
Puerto

played

generating

an

Government

combination
to rum

of

through

expansion of Caribbean

during

the




past

decade

tration

of

increased

and

has

16.4%

gradually
of

the

increased

total

U.

S.

rum

from
market

you

future, and helping to build

the future of

community through thought¬

our

ful, farsighted and dependable service.
you can

depend

bank that knows Puerto

on

the

Rico best

consumer

for,

demand

large part of the credit for the

Federal

Rican

rums

taxes
to

accrue

Puerto

on

eral Government. A

portion of the

funds the San Juan Treasury de¬
from

to

gains
"Rums

this

source

in

is

turn

promote further industry

through
of

its

Presently,

Puerto

the

Rico"

-

POPULAR
DE PUERTO RICO

known

program.

government

spending $1.5 million
this purpose, with

well

BANCO

Com¬

the

monwealth, rather than the Fed¬

Scotch, Canadian, gin,

vodka, brandy, cordials and

business is helping

important role in

industry's recent growth.

used

our

for Puerto Rico and deserves

rums

rives

Popular

to build for the

...Yes,

Role

Rican

of,

awareness

a

in

At Banco

I

The

has

IS PUERTO RICO

gain

net

total has risen from 60.7% in 1950
to

WHOSE BUSINESS

Puerto

modest 5%

a

further

the

only 138,000

All

years,

straight

emergence

greater

As

Commonwealth

-

Puerto

-

export

but also high¬

a n

entering U. S. trade chan¬

rum

non

annum) during the

tabulation

our

in

While all

years.

impact of this trend, it is Puerto

represents the
third

within

spirits

underlying

an

per

1960.

products in rate of sales gain dur¬

mil-

This

o n.

shift

and

12

the

have advanced only

sources

since

duties

led all other major distilled spirits

ing fiscal 196263

half,

during

from

BANK WITH THE BANK

accelerate

prior similar period.

(4.6%

since
a

This

rate.

continuing to

past five years, and

Island's economic benefit.

and

annual

with

25%

Analysis describes the distillers,
for their optimism, and how this

Spurred on by rapidly rising con¬

14%

a

Rican

imposed upon non-U. S. sources.
their

in¬

58%, and since 1957, 91%

Shipments

Puerto Rico rums accrue to the Commonwealth, strict control is

on

rum

have

States

is

over

All Federal taxes

spirits consumed here.

alone

Rican

of

ing liquor in the U. S. A. which even today represents only about
of total distilled

has

S.

years

Puerto

trend

"lighter" spirits in general and to hold its own as the fastest grow¬
2.1%

Rican

U.

months ended June, 1963 up 23.2%

Mr. Trott expects rum in general, and Puerto Rico rum,

particular,

at

of

United

creased

responsible for the increased rate of increase of Puerto Rico rum

exports.

the

or

data

Puerto
the

During the past two
shipments

City

the

by

accompanying table how-,

rum

ever,

York

and
have

...In business

small with 2.1%

in

New

and

as

2.1% of U. S. Liquor Market

years.

I

extent

trail only the

now

America's favorite
The Daiquiri's popular¬

cbcktail.

been

con¬

States.

its share al¬

year

entrenched

lytanhattan
ity

United

expanded to such

Daiquiris

well

cocktails

all
the

following

that

In

of

within

most doubled to
1962

States.

3.0%

consumption during the past five

By Donald I. Trott, Research Analyst, Jesup & Lamont

rums

During
1960
rum-based
Puerto years.
Bacardi Daiquiris accounted for an esti¬

aided

also

has

California.

11.2%

Changing Tastes: A Boom

this

the

in

particularly

nation,

provided

have

stimulant

using

in

rum|

promotion is believed

in

gained

it

This

mix.

style-setting states, New York and

1956,

business

in

confidence

creasing amount of interest in the

three

or

Puerto

great deal of interest.

a

General

The

have

mills

are

tire

high)

is

still

throughout the

years

creased favor

six New

the

within

States

England

organization uptrend
some

in

has been popular

rum

basis

capita

from

purchased

experiments

days a week.
The

that

serving all

communities.

main

the

in

Canadian

two

branches

have

banks

chartered

banks

of

now

Hawaiian

large

a

brands

creasing the popularity of Puerto

mix

turies (and consumption on a per-

While

being tried out by

are

of continued

one

within New England for two cen¬

distilled

The Hawaiian methods of sugar

production

Though

of

has

and

remains

in¬

rum

growth and prosperity.

manufac¬

lengthened every year.

estimated
$1,400,000,000 for 1964.
and is

billion

$1

over

Industry

particular

Rican

new

a source

product

the

incen¬

of

Rican rums, most notably

program

providing

income and

in

tured.

grown

the

under

tax-exempt

new

pride

market

The

and

continues to grow,

10.4%

fiscal

which has

year

$66

imagi¬

more

its

recent

at

now

million five years ago.

is

will be

of

a

$30

it

mated

is

business

9%

and

to

from

con¬

being processed at

are

increasing rate.

Tourist

ris¬

loans

FHA

including

types,

ever

an

pace.

G.

all

munici¬

the

and

Rican

Puerto

to

"good mixer."

a

Increased,

establishing this image and in in¬

increas¬

command

market.

bond

dominiums,

very

rapid
The

of

built

being

and

consideration in

pality

and are

up

basis

nue

ing

have sprung

reve¬

ex¬

of

dustry

a

image

new

being light and its versatility

and

,i

on

Thursday, September 19, 1963

"lighter"
spirits in general, and to maintain
growth

through Authorities whose bonds

purchased

.

pected to continue to outpace the

look for the Puerto Rican

been

is

particular,

ments have been largely financed

have

apart¬

been

ap¬

rum's

on

.

enlarged native advertising by distributors dynamic growth of the past two

of an

liquor in the U. S.
The progress of

to

general, and Puerto

in

projected

Compact

46%

rum

for

advance

to

Rum is

base.

Rican

President, Puerto Rico Bankers Association

look

observers

market

By W. E. Pullen, Vice-President, First National City Bank,

being placed

continuing, and by 1965 most in¬
dustry

The Puerto Rican Economy

Moreover, this trend is

41.5%.

to

.

per year

is

for

prime emphasis

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Volume

.

.

The Commercial and Financial Chronicle

.

government's role in aiding jected

The
the

Number 6300

198

of

consumption

of

growth

million

$23

at about

this

Bacardi with 1962 estimated

year,

record,

does not end

sales of $30 million is expected to

million

with its highly successful promo¬

retain its position as Puerto Rico's

45%

Commonwealth

tional

rums

quality

The

however.

campaign,

controlled by law, and only

also

which

rums

in

sulting

aged in oak (re¬

are

extra

for

dryness)

specified period of time

Other important brands include

is

Puerto Rican rum

of

Ronrico whose Arecibo

that if

U.

as

S.

last

Superior which

year,

operating out of Mayaguez bottles

mitted to be sold.

distributes

and

purchased

rum

Other Factors
Serralles

from

substantial

As

U.

S.

the

factor

which

has

per¬

mitted Puerto Rico to increase its

All

are

expand

been

important.

Rico

estimates

tourism has also

Year

volume.

VVO':- V

■' •;

Puerto

Non

Rico

Puerto Rico

Total

2,193

out

nine

% of Total

this figure may

1951

1,596

614

2,210

72.2

conservative, and all agree

1952

1,467

508

1,975

74.3

its image

71.2

even

however,

Ifill

1,497

605

2,102

1954

1,440

625

2,065

69.7

product, it can double its share of

1955

1,597

641

2,238

71.4

the U.

can

escape

in

general, and

future with
the

basis

the

with
are

looking to the

optimism.

of

the

industry

Simply

past

on

statistical

S.

market by

1956

1,593

721

2,314

68.8

rum

1957

1,722

799

2,521

70.2

industry has been of prime im¬

1958

1,732

715

2,447

70.8

1959

1,996

801

2,797

71.4

1960

2,089

946

3,035

68.8

an

1961

2,537

905

3,442

73.7

next

1962

3,300

999

4,299

76.7

This rapid

portance

1966-68.

expansion of the

in Puerto Rico's

recent

growth, and on the basis of
ent

trends is expected to

even

greater

chapter

role

as

pres¬

play

the

unfolds.

Source

Distilled

Spirits

1

Institute.

of

drinks while there, and

rum

a|

sizable number of these, once ex¬

posed to it, continue to order and
serve
rum upon returning home.
Rican

Puerto

from

fited

Commonwealth's

association

political

States.

United

has also bene¬

rum

the

As

the

with

result of this

a

relationship it is exempt from the
$1.75

per

imposed

duty

case

imported from

rum

such

locations
British

price
U. S.

imported

thus

and

advantage

on

U. S.

-

Jamaica

as

Guiana,

non

and

has

a

other

all

over

except those

rums,

originating in the Virgin Islands.
Bacardi

all

Corporation, which

for

counts

Rican

Puerto

the United

to

U.

total

S.

working

of

exports

States

of

rum

(or 45% of

has been
widen¬

sales)

rum

ac¬

60%

estimated

an

further

towards

ing the scope of rum usage within
United

the

States, which if suc¬

could

cessful,

further

Rican

Puerto

the

accelerate
industry's

rum

growth beyond already impressive

future

projected

Bacardi

1962

U.

S.

known

as

the

markets,

lowing
tails

Latin

prefer

it

of

the

in

eggnog

States,

rocks."

rum

long fol¬

ingredient for cock¬

an

as

in

within

While

strong and

a

and

Late

dark rum,

a

"Anjeho."

built

has

levels.

reintroduced

Americans

"straight,"

United
tend

to

"on-the-

or

With over-all acceptance
the

on

rum

Bacardi

rise,

is

hopeful that Anjeho will lead the
in expanding American con¬

way

sumption

as

an

undiluted bever¬

age.
Last

Bacardi ranked 23rd

year

among

within
timated

all brands of spirits sold
the U. S. with volume
at

850,000

trends indicate that

will

become

rum

to

cases

year.

sell

the
more

during 1963 it

first

brand

than

a

of

million

in the U. S. during a single

While

Bacardi's leadership

the mainland does not

on

es¬

Recent

cases.

other

vulnerable,

Puerto

appear

Rican

The

steady growth of industrial Puerto Rico has

been due

distillers have also benefited from
ness

the

rum's

enlarged

market,

the least of which has been

stileria

not
De-

Serralles, whose flagship

brand "Don Q" leads in popularity

Situated in Mercidita, a suburb

Ponce,

largest

Puerto

city,

Rico's

increased

second

consump¬

tion of Don Q has propelled sales

upward

an

largely to the establishment of a busi¬

climate favorable to private

enterprise.

The Puerto Rico Industrial Development
pany, or"PRlDCO",

Com¬

has given specific cooperation

and assistance to hundreds of
them in

within Puerto Rico.

of

companies — most of

newly established industries. Altogether it

has built 458

buildings at

a

cost of $73,000,000.

No wonder that 20 of the 100

largest corporations

in the United States have Puerto Rican
pridco itself has set an

plants.

outstanding example of

successful management.
with

an

initial

It.was organized in 1942

capital of only $1,500,000. Total

investment has

already passed the hundred mil¬

mark.

lion

dollar

over

$12,000,000.

Cumulative earnings

are

Bonds of the Commonwealth and its
such

as

the Puerto Rico Industrial

now

agencies

Development

Company are exempt from Federal and State in¬
come

taxes.

They are attracting

more

and

more

private and institutional investors seeking good
income

compatible with

a

high degree of security.

estimated 25% annual¬

ly in recent years compared with
a

17%

Bacardi

average
over

With Serralles

rate

the

of

same

gain for
period.

rum revenues




60.7%

1953

rum

seasonal summer and

a

ten visitors to the Caribbean sam¬

ple

Puerto Rico

1,332

experts,

of Puerto

Rums
that

S.

U.

holiday

a

expected to continue to

along

of this growing market. As

share

mentioned above,

Carioca,

division of Schenley.

Rican

been, it is by no means

only

and

Govern¬
increased

to

of Puerto

awareness

has

rum

the

as

contribution

ment's

almost

or

1962's

THE

861

believe that

shipped about 275,000 cases to the

1965,

TO

1950

liquor

prove

in

than

SHIPMENTS

(thousands of tax gallons)

a

per¬

are

distillery

cases

more

Many

leading producer of rum.

RUM

within

consumption

rum

the United States is charted at 2.9

pro-

PUERTO RICO INDUSTRIAL DEVELOPMENT COMPANY

12

The Commercial and Financial Chronicle

Parallel

Puerto Rico's Electric Power

with

the

increase in power

Island

the

has been

continuous

remarkable

there

improve¬

ment in the standard of living

the

By Rafael V. Urrutia, Executive Director, Puerto Rico
Resources

people.

appliances

Water

in

commonplace

are

Puerto Rican homes. Sales

Authority, San Juan, Puerto Rico

of

household

Electrical

of

re¬

frigerators, ranges, TV sets, water
If

took the

one

of

name

Puerto

Rico's

Water Resources

heaters,

Authority

99.9%

utility, produces

of

its

thermally

power

and

only

0.1% hydroelectrically, and spectacularly increased power output
15-fold

the

in

past 22 years to spark the

the

the

Authority's soundly

managed and financed activities,

has sold

tion

eight years ago the asser¬
that

made

was

country

no

future

demand

Rico

special

studies

in the world had shown a greater

growth in its economy, in a ten-

In

period,

year

Rico.

kw

the

kw

of

economy

the

pace.

to

kw

an

and

are

provided

Water

8,000
and

ap¬

much

very

by

the

Resources

its

own

over

Rural

Authority

Washington

has been instrumental in the

from the

issues

bond

revenue

Authority at 2% annual

interest cost.

kw in

1957;

in

1960;

82,500

powers

to issue and sell its

electric

revenue

11

own

totalling

$352 million. The Authority's

fully tax-exempt from

are

Federal

both

state

and

income

the

In

Rico,

credit

its

history of Puerto

municipalities,

record

default

of

in the

obligation,

on any

there been

aged"

forced

any

refunding;

bonds to

avoid

nor

of

is

portion of the

a

in

1962.

about

to

in

1961,

Another
be

Power

Rafael V. Urrutia

Authority,

supplier of electric

the

In

sole

The

publicly

a

resources.

At

to

pres¬

only about pne-tenth of the
power generated by the Authority
hydroelectric.
produced

The

1956.

it

remainder

thermally

the

An abundance of electric power
of the main

one

2.9

1.3

maturing

billion

kilowatt-

of its existence has

sources

Authority to levels above

dustrialization

from

program,

known

"Operation

launched

by

the

the well

Bootstrap"

Governor

of

gram

under

1947

Luis

In

its

the

creation

has

constantly

been

ticipating the demand for

ment in

generating capacity to

Rico

Additions

the

are

planned

as

cus¬
pro¬

over

they

occur.

of in¬

care

$42 million

societies

of

growth

Estimates of

and

power

to

and

measure

con¬

con¬

a

good

improve¬

living conditions. Puerto

offers

a

good

close

between
the

example

of

relationship that
economic

demand

for

Puerto

Rico's

growth
electric

energy.

sensible

hotel

amazing economic growth.

development to cultural

CHOICE INVESTMENT OPPORTUNITIES I
AVAILABLE IN PUERTO RICO

Tourism in Puerto Rico continues

ism

its

with

dramatic

and

visitors

more

the

year

growth,

more

enjoying

Island's

beaches

with

that

PLANTATIONS

INDUSTRIAL BUILDINGS

HOUSING

wide,

sandy

reaus.

and

many

large investors
Rico where
economy to

opportunities

available

moun-

tains,

both

staying

small

in

/•

For

PUERTO

further information, write
RICO
Emma

REALTY

call:

CORPORATION

Boehm-Oller, President

420 Lexington Avenue, New York




or

Phone:

OR

9-5898

17, New York

ment

effort

its

are

personal

and

contact

carriers,

convention

the

year

for

travel

in

newspapers

Alliance

bu-

Department

hotel

was

born,

9%

Lopez Garcia

reached
same

hotels

new

in

newspapers

Holiday

Inn,

and

Nov.

on

staging extensive

13

to

17),

area promo¬

personal calls to travel
familiarization

agent

island

to

Oct.

4;

scheduled

the

for

The

of

breaking

four

hotels

will

diving

a

attraction

Last

Hilton

was

highly

"Moscoso's

dubbed

some,

was

a

dramatic

December,

1949, supported by

advertising
campaign.

and
It

public

was

soon

operating in the black and within
a

few

years

ernment's
This

had repaid the gov¬

entire

investment.

encouraged

success

new

construction by private in¬

terests and the
work

of

beginning of

luxury

hotels

a

and

net¬
new

houses

blue

game

fish,

are

is

as

November

a

the

the

classic

Grand

was

in-

augurated in Puerto Rico.
Major

be-

highly-organized activity,
Development

huge

the

of

Island

has

tained

despite the fast growth of

been

tourism

the

carefully main¬

industry

enormous

amount

struction.

The

been

the

and

of

new

con¬

development

orderly, with

new

has

hotels at¬

tractively spaced. In San Juan, for
instance,
clusters

hotels

along

frontage.
between

This
each

bu il t

are

seven-mile

a

allows
group

Transportation

in

ocean

for

space

of hotels.

to

and

within

Puerto Rico is excellent. The low-

fare

jet

service

to

and

from

an¬

visitors.

Economic

of

special "sail-in" event for yachts-

racing-car

which

record-

exhibitions

Prix

Hilton,

for

other

men.

add

Depart-

(Biggest marlin to date: 780 lbs.).

1;

fjJ95 rooms to those avail¬
promotion,

catches

land

an¬

the

by

Tourism

Ponce

Nov.

only in the late 1940s, has be-

come

ment

the favorite

during

the Sheraton, sched-

open

Tourism
gan

hotels,

Tournament, with

awarded

of marlin

number
the

on

construction

were

to

provides

about

ParUcularjy popular is the
nual Game Fish

Hilton,

the Lee and the Mayaguez

able

also

information

(Americana, prizes

the

rooms

Leon,

other

the

The Caribe Hilton opened

strong

hotel

Department

gky

These

to

leas¬

all-time

Dorado

brought

available

to

in

and

by

success.

relations

Show

visitor

opening and an-

hotels

new

the

and

sports, fishing, sightseeing tours moderately-priced guest
and special and cultural events throughout the Island.
period, with offered throughout the year.
The
natural
beauty
an

Eco¬

investing

construction

the previous year. Hotel

over

construction

The

luxury

the

Administra¬

venture, which

Travel

The
Jose

The

Folly"

shows

trips to San Juan.

a

with

property

magazines,

1963. This
about

the

and

travel

selective

of

ing

criticized

the fiscal year

represented

for

advertising

agents. It will continue sponsoring

gain

(Fomento)

by

agents

tions and

June

tion

there.

first

Development

funds

were

is

exceeded

30,

S.

United

to

who

opportunities
Island's

saleable

more

275,000 during
ended

U.

Progress, be¬

available

the

a

and

for

Thus

(among them, the Boston Herald

registrations

develop¬
the

now

chain to manage.

with

hotel

and

visiting Puerto Rico to study in¬

cooperation
resi¬

-

Rico's

Puerto

Tourists

hotels.

■/:

.•

of

be

in

Non

Moscoso, at that time

head

businessmen

participating

uled

to make sound real estate investments in Puerto
industry and the tourist trade is causing this Island's
expand at an unprecedented rate.
—

new

of

States

luxurious

Under

—

potential

recognized.

was

should

making the Island

and

period

DEVELOPMENTS

for

business

$7,000^000

a

ranging from

agencies,

clubs

This

__

cool

de
are

until

was not

constructed

the

dollar

investment potentials

travel

travel

Tanama, El Conquistador and El

pro¬

on

maintains

each

M02.

CONDOMINIUMS

coming

a year were

1947, when the Puerto Rican gov¬

nomic

FARMS

OFFICE BUILDINGS

rela¬

industry.

as an

lieved that modern hotel facilities

by the E. D. A.

Lobo)

COMMERCIAL BUILDINGS

Rico's
a

one

Recapitulated below

attractions.

opportunity to be briefed

other four under construction.

HOTELS

Puerto

Island, and it

vestment

offered the

even

high during the

We are offering for investment a variety of selected income
ducing properties in this rapidly growing Island.

contributes

now

to

boom, has had

Teodoro

mainstays contributing significantly to

various factors responsible for tourism's growth

are

six

There

significantly

Coordinator for the multi-million

"flash-in-the-pan" tourism has become

a

economic

the Commonwealth's

dent

the

fairly reliable index of

very

exists

only to meet the existing de¬

mand but also to take

a

yardstick

an¬

power

its system.

creases

modern

economic

and adding

not

491,000

construction

involving

stitutes

Rjico Water Resources Au¬

thority

a

sumption of electric

since

Ever

Puerto

and

revenues

for fiscal year 1963-64.

Marin.

Munoz

sales;

energy

tomers,

Commonwealth

around

leadership

Newly arisen but not

in

(1962-63)

$57 mi 11 iion annually in

the

Tourism, which
so

New York, N. Y,

kilowatt-

billion

raised the Puerto Rico Water Re¬

incen¬

industrializa¬

Series of Economic Successes

million

year

tives offered by Puerto Rico's in¬

Government

Bootstrap"

ernment

the

spectacular increase in

years

tours and brief¬

Commonwealth's "Op¬

tion program.

Development Administration, Commonwealth of Puerto Rico,

production and sales within

22

Development Adminis¬

luxury hotel—the Caribe Hilton—

Puerto

15 times the 1941 fig¬

over

power

station.

fiscal

reached

The

and

the

By Jose Lopez-Garcia, Director, Department of Tourism, Economic

1946

343

was

be

Rico,

Tourism Joins Puerto Rico's

production in
In

and

may

Puerto

in

eration

Authority

million

1951

Last

ure.

steam plants and one gas turbine

been

Economic

who

to the

production continued

685

to

in

hours,

three

in

rise

hours

ent

is

generation

years power

of developing the Island's

is

power

al¬

are

During the late 1940s only about

ki}owatt-hours. In the succeeding

assembly of Puerto Hico for the

has

vacationing

40,000 visitors

Years

the

year

kilowatt-hours.

total

by an act of the legislative

hydroelectric

22

Resources

created,

lion

owned electric utility, was created

purpose

in

investor

tively brief history

Puerto Rico amounted to 192 mil¬

Authority,

in 1941

Water

was

Commonwealth.,

the

1941,

Rico

in the

power

Times

travelers

for the businessman

economic

Output Multiplied

Fifteen

claimed by the Puerto Rico Water
Resources

And,

potential

tourism

is

growth

to

Briefings for Potential Investors

has

credit for this

amazing

visitors

usually include

welcome.

toie

added

Plant.

and games, and

ings of

default.

oc¬

the

dancing, fireworks, fairs, contests

or

104,500

unit at the South

new

Coast Steam

kw

most

Puerto Rico. They

arranges

"man¬

or

throughout

tration

payment of principal of

interest

festivals, which

charm

year,

authori¬

delinquency

or

by Art Films Coop¬

frequently

ways

taxation.

films, ballet,

the l Commonwealth's

and

Patron saint

the

in

beginning

Arts,

Institute of Culture.

cur

bonds

Rican

theater, music and paintings, and

bonds in the open

it has floated bond issues

the

on

week-long Festival

It features

15.

erative

u

in

kw

1959;

101,500

kw

kw

in 1963 in

35,440

kw in

Puerto

Oct.

is sponsored

f

and

suc¬

of this program, by purchas¬

ing electric

of

the

is

procedures

trative

Puerto

Electrification

in

Island

operations and adminis¬

rural

The

year.

cess

1954

its

electrification ties, agencies and other political
program which is now in its 11th subdivisions, there is no known

was

24,000

and

plete supervision and control

additional 68,440 kw was

an

82,500

good

A

total

1953

in

Between

1958; 22,200

faster

even

1954.

39,280

has

at

grow

in

this

To

added

remote

irons, hot plates,

as

Administration

economy.

in

autono¬

an

installed, followed by increases of

Common¬

continued

kw.

was

1956

Island

wealth

trends

1952, for example, the Au¬

170,560

Since

time

that

growth

on

thority's generating capacity

Puerto

than

of

in the Island's

based

are

as

public corporation, has com¬

mous

evidence, thanks to the electric

through

About

Authority,

sources

Among the free activities
Re¬

and market. Since its creation in 11941

smaller electrical

radios

table

service

total of $352 million to continental U. S. A.

a

dwellings

Thursday, September 19, 1963

.

Water

over

in

which it autonomously issues in the open market and

—

Rico

continental United States

and

high regard held for its bonds—exempt from both Federal and

state taxes

Puerto

ing from day to day. Even in the

pliances such

and

The

humblest

rural areas,

Commonwealth's phe¬

nomenal economic advance? Briefly reviewed here are the highlights
of

machines,

air conditioners have been mount¬

figuratively, how could one teli that it is the Island's sole electric
power

washing

.

Bonds Highly Regarded

consumption in

Commonwealth

a

.

Ad-

ministration Department of Tour-

One

of

events

is

Cultural
the
the

Events

major

major

cultural

Festival

Casals,

which features international

con-

cert artists performing under the
direction

of

the

distinguished

cellist-composor-conductor
Casals.

Pablo

mainland

tributed

to

travelers

to

stays
to the

3y2

as

the

the

well

as

hours

of

has

from

the

con¬

increase

of

Island, for short
long

ones.

jets, Puerto Rico is

has become the
ter

cities

New

Due

an easy

York,

recreational

entire Caribbean

and
cen¬

area.

Volume

6300

Number

198

.

.

The Commercial and Financial Chronicle

.

i

be

New Pre-Planned

Consumer Market Potential
Lures Chain Store

13

Expansion

City Dedicated
SAN

houses

The list of
is

encouraged rapid expansion of non-food retail chains.
retail

consumer

outlets, many of which are prominent,

just

in

Munoz

PUERTO

JUAN,

Less

than

Ricans

decade

a

RICO—
Puerto

ago

approxi¬

spending

were

mately $300 million on food which

purchased

was

at

7,800

some

Puerto

Supermarkets
total

a

of

Rico,

located

with

operates

markets

metropolitan

to open

Pueblo

currently

ten

island—nine
Juan

in Ponce

-L—--

grocery

in

chain

the

on

in

the

San

area

and

one

scheduled

11th

an

this year. Pueblo's largest

competitor is Grand Union which
operates

D

largely

and

sub¬

de¬

standard,
of

fresh
and

While

dairy

of

bone

the

and

small

by Governor Luis

and

a

new

sister

eastern

all single-

and

for

occu¬

price

in

range

from

a

The

city will be Levittown

new

Puerto

ocean

six

Rico
miles

the

on

from

Atlantic

San

Levittowns

in

the

S., said that the Com¬

closely
all

expansion

watched

over

by

will be

communities

the world and that other

cities stand to gain from the Com¬

two-story detached

monwealth's example.

Governor

Munoz

Marin,

He

who

said

the

headed the delegation of govern¬

made Puerto

ment and civic leaders at the de¬

he

center.
Initially
planned for 3,100 families, it is the dication, said construction of this

complete large community to city "sets

have

praised the Commonwealth for

its "vision" in instituting the pro¬

splendid example to

a

Guidelines

"pace-setter," and

a

Juan's

commercial

most

U.

Levitt, President of

Sons, which built the

orderly urban

$9,100

one-story attached house to

a

$15,500 for

food

the

gram.

back¬

sales,

This

super¬

of

with

compares

the U.

S.

growth

of

on

mainland.
these

in

ex-

of

cess

The

HHHHHHi

people

Spend

Toppel r "

Harold

supermarkets in Puerto Rico has
been aided by the rapid

$440

million for food and stroll up and

ment

of

omy.

aisles

well-stocked

down
modern

air-conditioned

super¬

markets

that

the

newest

found

the

in

they

variety
and

rival

a

seafood, vegetables and fruits,

fresh,

have

not

1955, Puerto Rico did

as

truly modern

a

market

or

though

certain

kinds

Al¬

locally

of

products
Rican

Puerto

imported and

were

for

ready

was

the

bring

which would

supermarket

the

that

Convinced

expensive.

most

reasonable,

and

better food at lower cost,

him

enterprising
lished

first

the

super-

estab¬

described

the

present

Supermarkets in
what

then

Since

Juan.

San

Jersey
of

of Pueblo

chain

an

Toppel,

New

Harold

marketer,

the distribution and marketing

to

Mayaguez
The

such

largely

sugar

crop

fastest

cost, but with rising em¬

ployment and real income growth
helped change their shopping and

habits.

dietary

of beef in

million
million

Puerto Rico

pounds

in

pounds

in

the same

consumption

The

from

During

1955.

138%

milk

and

Chains in

Soon

after

the

established

was

chain,

financed

Operation

Pueblo

chain

the

Todas

came

by

the

This

Rockefeller

the

by

chain

was

Union

Grand

later

interests.

sold

to

third

A

Co.

the

chain,

Supermarcados Co-op, also oper¬
ates in Puerto Rico.

Generally,

these

industrial

econ¬

to

$1,985

1962,

$755 million in 1950

million

capita net income
for

1950

1962

and

$1,070

is

by

from $343

than

Personal

Con¬

Expenditures

143%

$1,609

to

for

reach

sumption
from

$700

to

expected

1970.

year

162.9%. Per

rose

better

to

the

for

increase of

an

increased

million

for

1962

$662 million in 1950.

Of

significance

yardstick

a

potential

redistribution

projected
increased

this

as

market

consumer

spending

family units. In

among

is
of

power

1962

ap¬

proximately 93,000 of the 448,000
in

year.

than

more

had

Rico

Puerto

of

income

$3,000

an

per

By 1970 it is estimated that

$375,000 of the

projected 545,000

family units will have an annual
income in

excess

of $3,000.

Non-Food

Retail

Commonwealth Oil Grows With Puerto Rico

Growth

Chain

The

the

of

success

pioneer

Toppel,

Harold

supermarketer,

has encouraged many U. S.
firms

establish

to

in

outlets

Walgreens,

are

Woolworth, National Bellas Hess,
S.

S.

Thorn McAn, Ler-

Kresge,

ner's

and

All

Roebuck.

Sears

of

prominent retailers is expected
widen

to

island's

are

the

as

program

con¬

While

fifth

Rico

Puerto

today

market

dollar

market

largest

is

for

a

the

and

U.

S.

comparable to the newest main¬ goods, supermarket expansion in
land
Commonwealth
is
largely
supermarkets. They are of the
modern

design,

air-conditioned,

located

usually

a

of

and

foods,

well

a

as

shopping

in

centers and offer

large selection

liquors, as
large variety of other

wines

controlled
Commercial

limited
for

and

site is found,
Estate

Real

In

titioned to

some

fered to
carry

6,000

customers

items
on

a

are

of¬

cash-and

basis.

Thought to be the largest food




availability.

land
is

area

this

purposes.

both the industrial
the need for

by businessmen who

source

products. Since then, to keep
oping
has

economy

was
saw

potential of Puerto Rico and

major local

a

Company 1

pace

of petroleum

with the devel¬

of the island, Commonwealth

expanded refining facilities, trained skilled

workers,

and

increased

the

of

range

its

ical

Today, Commonwealth's refinery has

a capac¬

one

—

of the

largest independent operations in thd United
Sales

are

running

at

more

than

Commonwealth is

proud of its role in the

growth of Puerto Rico. It provides the

con¬

with

raw

materials,

and

transportation outlets with gasoline and jet fuel.
It

supplies export products that contribute in¬

creasingly to
In

favorable balance of trade.

a

addition

current

future

to

providing for Puerto Rico's

needs, the

—

in oil

company

is planning for the

refining, and in petrochemicals.
refinery expansion,

now

under

will increase throughput capacity to

way,

ap¬

proximately 115,000 barrels-per-day by the first
quarter of
work

1964.

a

Commonwealth continues

to

actively to expand its business into

related

$100,000,000.

companies with fuel, chem¬

units

process

A $5.1 million

products.

States.

and power

sumer

petrochemicals fields which will be

valuable addition

industrial

to

the island's

growing

complex.

makes
a

store

the Commonwealth
Board

zone

This

must

be

pe¬

it for commercial

will

continue

to

prevent oversaturation, especially
in urban

Refining

extremely

scarcity

high land values. Once

conveniences and specialty items.

all,

by

Oil

ten years ago

ity of about 90,000 barrels-per-day

tinues to accelerate.

billion

markets

considerably

economic

Commonwealth
formed

the better

Rico-^mong
names

retail

Interna¬ have expanded rapidly. This list

tional Basic Economy Corp., head¬
ed

its

on

Gross National Product has in¬

known

Food

under¬

of the world's

one

growing

Puerto

consumption rose 39%.
Three

Bill

20

past

an

dependent

to

creased from

31

period poultry consump¬

increased

o

historic

to 43

rose

1962

t

omies.

families

only

not

brought better food to the people
at lower

from

as

u e r

a

the

over

evolving

ciety

the

and Ponce.

supermarket

P

undergone

transformation

of

Arecibo,

as

Bootstrap,"

has

years,

of

and has spread

area

cities

major

tion

Rico

in

food has occurred in the San Juan

metropolitan

econ¬

known

Program

•

"Operation

can

revolution

a

as

develop¬

Rican

Puerto

Sparked by the Industrial De¬

velopment

fruits and vegetables were

grown

plentiful
food

super¬

center.

shopping

the

of

developed agriculturally-based so¬

and frozen.

canned

As late

be

wide
poultry, fish

from

meats,

of

States. Here

United

choose

can

acceptance and

areas.

on

monwealth Guideline program for

by middle-income families

pancy

home.

maps.

de

three

Puerto Rico.

name

Commonwealth

to

J.

styles to be built at Levittown de

family homes designed for

recently in

William

house

and

are

which has

attention

this Commonwealth."

Levitt

They

progress

stores

grocery

approximately 70%

prod-

added

San

five

urban

two

open

still

as

retail

market.

Marin,

be

city

the

dedi¬

sincerely

the

on

markets have better than 25 %

meat,

poultry

the

to

Will

Exhibit

of

genuine

world-wide

focused

builder, showed furn¬

models

to

—the kind of progress

metropolitan San Juan.

U. S. home

metropolitan

dedicated

for the planned urbani¬

of

community

any

cated

"Guidelines"

end.

"colmados"

or

tables,

veg e

quality

markets

plans

year

fruits

void

eight

of

were

—

Common¬

program

ished

ocean-front

new

ceremonies led

Island's remarkable real, per capita income and continuing growth.

SAN

a

west

Juan

considerably in step with the

expected to continue to widen

JUAN, U. S. A.

the

Levitt and Sons, Inc., the largest

In Puerto Rico

in turn, has

under

pioneering

zation

Following the precedent set by Pueblo Supermarkets, Puerto Rico's
leading food chain, two other? have come into operation and this,

built

wealth's

COMMONWEALTH OIL REFINING COMPANY, INC.
Refinery
Guayanilla Bay

Executive Office
P. O. Box 4423

Puerto Rico

San Juan, Puerto Rico

.

New York

Office

60 'East 42nd Street

New York 17, N. Y.

The Commercial and Financial Chronicle

A

1

j

>

^

HIV1

;

A

^

1

facilities to all Puerto Rican

cities

and

When
When

1

towns.

the
the

The Puerto Rico Aqueduct and Sewer
Water

with the

Resources

constructing integrated water and
ahead

debt

progress, stresses

under

conservative use

their

and

Aqueduct

Rico

highlights

Authority's

for

The growth for the last six

follows: (a)

,

.

,

,

,

and

filtra¬

and

Rico

s

private

ground

no

leveling off

a

plants;

of

In

water

Juan Labadie Eurite

(f)

60,145 feet of sewer

or

an-

finished,
a

twelve

constructed

plants

28

placed

towns under

more

water

one

19632

like-to

would

I

these

elaborate

on

today

have

we

41

plants serving 57 towns. When the

The
revenue Penuelas plant is dedicated this
represents a 25.6% increase over fall, all our towns but one will be
the figure for the previous year served
either
by
fully-treated
which
amounted
to
$11,544,461. water or from deep wells which
highlights.

substantial

This

increase

was

require only

25% rate

plication.

onCjeulv
July lWh19C62
1, 1962. "There
There waslko
was also

off-shore

largely gained through
on

an

a

8.5% gam in number of custo-

mers'

Whenever

is

ciable

rate

have

tendency to be

a

past
that

an

increase,

servative with water
experiences

tendency

is

Means

puerto

live

mainly

by

are

rivers

no

consumers

tap and up to

more

wells have failed,

use

we

here

appre-

con-

but from

know

that

temporary.

We

now

creeks to

or

the drilling of

have

we

par-

tially solved their water problem

water

nated.

The

the

year

consumption.
acquisition of nearly 26,000

new

water customers

our

growth

in

shows

that

revenue-paying

subscribers proceeds at full speed,

Year

1958
1959

1960
1961

1963__

three

(plus

year

treatment plants

sewage

five

the

transferred

to

developers) is also part of

on

June 30

Water

Sewer

us

a

by

Sewer

100,284

16,335

6,506

236,398

107,199

16,368

6,915

t

.'

cur,ent

rowed

TABLE II

The

.„

$19,600,000

12,700,000
6,400,000
3,800,000

(Water Pollution Control Act)__

2,300,000
$44,800,000
TABLE III
Maximum
Balance for

Annual Debt

Times

2,345,368

been

'have

TABLE

Original

Year

Amount

1949

$22,700,000

1957




Outstanding
30,1963

June

_L

service

always

$10,724,000

10,000,000

9,895,000

issued

and

the

carry

on

to

know,

may

recently

a
large
privately owned shares

of

the public,

is

listed

now

Puertcf Rico

issued
the

and

the

on

Company

New

York

are

Another Oil Refinery
On

the

north

coast

the

of

Is¬

830— land, near San Juan, is another
oil refinery, Caribbean Oil Refin¬
Puerto Ri¬
ing Company, owned by Gulf Oil

now

largest

such

as

value

number

concerned

are

added

products

brassiere manufacturing,

sembly of electronic components.
These

plants

ex-

require

has

tric

advantage of Puerto Rico's abun¬
and

dant

low

are

many

the

high

cost

such

There

opportunities

added

value

than

labor.

but

try to cover the

en¬

subject, I shall direct specific

attention to
erage

has

heavy industry. Cov¬

given

been

to

Puerto

industry in

sugar

the

cent press,

Company's

shown

amount of
Island.

Near

the

northwest

today

the

tip

of the

Island, at Arecibo, is the multimillion dollar bagasse paper
plant
of International Paper

Company.

That

plant converts bagasse,
residue from sugar cane

the

grinding

operations, into liner boards.
There is presently considerable
talk

concerning

the

construction

a

talks with the

principals involved

in that proposed
in

substantial

a

heavy industry

On

production

plants.

plant,

any comments

south

the

on

we are not

position at this time to make

a

on

Au¬
out¬

the

phthalic anhydride plant near
Arecibo. While we have had some

phases of this.

is

of

is the other of the Puerto Rico

Cement

of

on

plants

Also near the Caribbean refin¬
ery

re¬

and I will only touch

generating

thority.

in

field,

near the Caribbean refin¬

Puerto Rico Water Resources Au¬

relatively

Heavy Industry Plants Now

this

Very

ery are two additional steam elec¬

little capital investment and take

rather

^
an

as¬

shown by

are

block

than

of its bor-

by

you

Cement

Corpora¬

more

that plant.

New Ford Plant

coast, adja¬

cent to the Commonwealth refin¬

issue

with its expansion
the

market

favorable,
been

line

agent,
all

to

of

provide

has

a

The

Bank

been

instru¬

financial trans¬

our

year,

13,000,000

erations,

the

Also
is

$32

million

1963-64, its 19th
with

full

its potential and

year

of

confidence

op¬

in

in Puerto Rico's

growing economy.

adjacent

the

sources

to

There has also been announced
the

plant

pany.

Our

generating

Rico Water Re¬

Authority,

ment-owned

refinery

our

electric

steam

station of Puerto

electric

refinery

the

govern¬

might

electric

here
power

prospects for the establishment of
new
are

heavy industry

good.

utility

com¬

supplies

mention

supply

as

that

this
fuel.
the

in

Puerto

is

adequate

and

stable

the Island

by the Island's Government and I
can

assure

in

you

such

plants

will

From my experience

working with the various

gov¬

ernmental officials in Puerto

Rico,

I

can

assure

industry
Puerto
utmost

Rico

on

New industry is wanted

be welcome.

plant with residual pitch
I

Authority enters the fiscal

14,000,000

is

the Authority's

actions.

The

ery,

not

banks

credit.

Development

for Puerto Rico, as

in

to

pro¬

has

private

willing

short-term

fiscal

placed

was

remainder of the

and

gram,

13,000,000

$47,619,000

high

pr0.

amounts

of June 30

as

1963

14,000,000

$71,700,000

as

com¬

employ

We

Rico

Puerto

mo

coverage

ample

bonds

mental

12,000,000

in

tire

£rom

use

ranges

As

the large plant

employs

the

with

Authority has been Rico's

Government

IV

tbo

not

foreign

construction, by a subsidiary
of of the Ford Motor Company, of a
1949
Union Carbide Corporation which ball bearing plant somewhere near
issue. The refunding, in addition
San Juan, at a
cost of several
utilizes
refinery gases and im¬
to
providing
a
lower
interest
million dollars.
The products of
rate, allowed the Authority to. ported naphtha to manufacture the
plant would be used in the
liberalize the trust indenture by ethylene glycol.
That plant is various Ford assembly
operations
putting into effect a supplemen¬
presently being expanded by an in the United States.
tary
agreement
in
force
since
While
the
existing industrial
additional investment of about $22
1957
for
the
other
revenue-se¬
plants on the Island are not nu¬
million
tc>
produce
alcohol
inter¬
cured bonded debt.
merous, they are exceedingly im¬
Whenever
butadiene
and
other portant, we
the
Authority
has mediates,
believe, to the Island's
needed some additional funds to petrochemical products.
economy.
We believe that the

2.18

2.25

._

in Table IV.

2.62

2.20

^

constructio„

loans is

The

debt

The

2,34

2,336,573

$3.8

resources,

moneys

than

The

these

of

Cigar

1

There

1,813,977

2,993,682

persons.

to

than 60,-

Outstanding Bonds

4,757,208
5,268,079

$7.3 million.

of

persons

1 9 5 0,

Operating

Service

6,594,135

1,200

the figures in Table III.

$1,847,318

1960

of

been

$4,358,660

1963

bor.

legis.

Fe<Jeral and

conservative in the

Debt Service

1962

own

>s

ception.

Year

5,101,330

increase

follows:

as

Drenonderanrc

sources

1959

Earned

addi.

an

$7 6 million

thig

refund the

__

ct

e

from

our drug manufacture, cigars and
the

For

contributions, $5.6 miUion.

The

_

we

and

standing

10,841

? water

million plant

Authority's

thority

13,836

nf

urogram

mon

11,659

23,794

w

-+lf A

lative appropriations

11,516

25,938

nnn

financed

be

which

of

Corporation. That refinery is ap¬
of proximately one-third the size of
the existing manufacturing plants the Commonwealth Oil
refinery.

Ihe intenAt/of

year

Uonal $24
to

tion,

By far

*

.

w}th the increase

20,134

Federal Government

1961

.

to

persons

Consolidated

of

92% of these

Tahie. iT

„

tnnn

20,156

141,215

g

.

.

118,858

Aqueduct and Sewer Authority—

1960_

the financWofthe

y
,

®

°.vq

130,374
155,051

bi„h

10-20

importation

plants employing Stock Exchange.

small

the

the

To the east of
our
plant, in
Ponce, is the cement plant owned
by Puerto Rico Cement Company.

size

Casey

but, more
recently, extremely difficult mar¬
keting problems occasioned by

plants has in¬

plants

cans.

y

....

256,532
300,482

relativelv

'

.

276,688

326,420

Sam H.

culties, not only operating prob¬
lems in its initial stages

petitive products.

in

te(J

long-A rowing capacity. Because of that

Increase for Year

Water

municipalities benefitted

Other

.

Rico.

000 today.

amwii-v

our

220,030

Commonwealth Government
Five

of

during

TABLE I
Customers

estimate

gram

Completion

t

.,

n

Fomento

n

5,000

•

'

i

promote d

more

subCatasanandthhousrconnec«ons
?"°™al"s and nouse connections,
'

plants

creased

in

from

by the construction of catchment mim
areas from which the
water is
al

collected, delivered to some distribution reservoirs and chlori-

expect

at

been estimated to cost $11,-

'

than the normal amount of diffi¬

trial

Employmenf

h

tations

m

Kave

R. Grace. That plant has had more

indus¬

i

construc_

fi

pro¬

moted

Puerto

under

now

under

re¬

tion)

operating

of

estimated

sections

exce,ptio"
ia Culehbra'
a" value shows
island where
about 500
construction

1963-64 to show higher individual

can,

therefore,

ap-

fishing and cattle raising. Because

.

there

slight chlorine

a

is

when

expended

those

our

are

miles

The

coft

towns:

there

s

cost

About 15 miles west of

result of the incentives of¬

a

Sani_

.

Its

m

and

value-

plant

^

,

alread

atio

*

utility

expect-to share.

can

today approxi¬ finery is an ammonium sulfate
mately 1,000 new Fomento (Eco¬ plant of Caribe Nitrogen Corpo¬
and
nomic Development Administra- ration, presently operated by W.

population

1975.

Ieted

c

to serve filtered water to 24 cities

in

million

for

been

of

had 13 plants

we

which new plants

progress

$44.8 million of which $22,200,000

system.

$24.9

,

estimated

an

has

pipe installed; and (g) an increase

In 1951

nomic

San
.

completed has been

m

when-

and

a

As

projects

our

J

.

we

years

and

prospects for the establishment of new heavy industry on the
are very good.
Though existing industrial plants are not
numerous, they have played an important role in Puerto Rico's eco¬

Juan and i?ur neighboring commumties. The project will cover
an area of about 30

program

possible have integrated two

ever

stalled;

£

y

T

all

manu¬

Island

fered,

comprehensive

of

»

about twelve years

those

operation

and

year,

practically

began

have

1,145,000

(e)

one

which

plants;

feet

other

ago.

most

875,000

,

during the

marks the conclusion of

treat¬

ment

that

filtration

two

of

plants

of the types and investment expenditures of

the

ex¬

Sizable Project

square

Completion

(d) eight new
sewage

for

in

......

tion

still

economy

is

The

expensive

full swing

in

Water and Sewage Plants

customers; (c)
new

public

.

with

sewer

water

Puerto

.

,

trend.

938 water and

two

both

expecting

gain of 25,-

13,836

...

booming there

(b)

revenues;

..

housing construction

,

$14,505,542,
a

With

ended June 30, 1963 were

the year

years

is shown in Table I.
,

Brief summary

facturing plants in the Commonwealth optimistically concludes that

sys¬

Within

construction.

Most

Puerto

sewerage

disposal facilities.

sewage

of June 30.

as

Refining Co., Inc., San Juan, Puerto Rico.

cept the isle of Culebra, will have

and lists outstanding bonds it has issued

service coverage,

1

By Sam H. Casey,* President and Chief Executive Officer,
Commonwealth Oil

sew¬

all Puerto Rican towns,

year

than ample

more

in

tems and those for the other three

Mr. Labadie de¬

borrowing capacity said to provide

made of its

is

Today, 72 cities and

have

towns

are

scribes the Authority's intense

which

created in 1945 only

was

facilities.

er

services while keeping

sewer

of the Island's burgeoning, rapid growth.

Heavy

r

AqueAque-

411 towns in Puerto Rico had

Authority, not to be confused

Thursday, September 19, 1963

.

Industry in Puerto Rico
gation)

Authority, has done yeoman's work in

.

The Prospects for

charge of electric power and irri¬

Aqueduct & Sewer Authority, San Juan, Puerto Rico

as

Rico
Kico

Puerto
Puerto

Authority

sources

By Juan Labadie Eurite, Executive Director, Puerto Rico

Sewer

sew¬

erage

Authority Moves Ahead

,

The

provide

program—to

range

Island's Aqueduct-Sewer

.

you

desiring
Rico

in

can

that
to

any

new

locate

anticipate

in

the

cooperation and assist¬
1

ance.

enough for practically any indus¬
trial plant.

♦From

ing

in

a

New

talk

by Mr. Casey at
City.

York

a

meet¬

Volume 198

,

Number 6300

.

.

15

The Commercial and Financial Chronicle

.

and Offices of the

Aiming for

a

Balanced

cludes

financial

and

Distribution System
Commonwealth

the

of

Puerto Rico's

Commerce

Island's three-year-old

the

Department

the

cost

tration,

of

of

warehouses and shopping centers, the

through

business

practices and managerial methods, the supplying of tech¬

assistance to commercial

of

a

increasingly
ation.

cause

of

total

that

of

41

the

of

One

mana¬

most

jointly

organization,
Cash

five

the

in¬

methods

ferent

sys¬

with

towns

held

a

of

Co.,

modern

on,

mer¬

dif¬

in

of 342

total

during the past two decades participants.

tem

distribu¬
System. Complex because of
great number of very small

sponding progress in the
tion

the

businesses, the widespread ignor¬

made any

the lack of capital,
solution"of the problem

tion

selfis

list of new

of equipment

the

policy of the Depart¬

in

which

705

such

agencies

government

ganization

The recently organized Field Of¬
fice of the United States Depart¬

promoting

ment

of

Commerce

of

system, integrated with
and cultural de¬

economic

the

velopment of Puerto Rico. A sys¬
tem where large and small

firms,

Training
oped
of

programs

nessmen

devel¬

are

for

activities

benefit

the

and

for

also

our

their

consumer

consist of purely formal

training,

on-the-j ob
combination of both.

practical

completely

are

referred

chains

as

candidates.

where

The
Rico

world.

Department and the

Puerto

Economic

maximum

participation

of

the
local ing

indicates

businessmen.

Department expanded and in¬
its

tensified

programs

for

the

cashier

obtain credit to finance improve¬

technical aid

ments and providing
in

these

carrying

and

planning

The

improvements.

mercial

Development

Help

needed,

to

tached

a

establishing

in

the

to

The

help

and

of

Commerce, is engaged in develop¬
ing

facilities:

commercial

houses,

shopping

Department's

first

others. At the

year,
one

the

of

construction

present
was

of the four warehouses to be

built in the port area of San Juan,
the

capital

of

Puerto

Rico.

The

first two of these warehouses will
be

completed

by

the

end

of

and

number
market

of

Union

Grand

the

and

University) and mahy others.

in

planning stage.




long

start

all,

we

to

way

has

been

go.

But

made

good

a

and,

above

have been able to

prove

to Puerto Rican businessmen that

there

is

worth

really somewhere

while to go.

in

in Puerto Rico

formed
and

dealers

promoted

the

among

jewelers and beauty parlor
In

addition,

final

the

stages

Puerto

the

Hospital Association

is

now

the

of

or¬

ganization of a purchasing group.

The first Puerto Rican office of The Bank

the Lucky Seven

members of

37

of Nova Scotia
island

sale

tween Puerto

worth
this

for

ago

is

company

now

This

$15,000.

selling

$25,000

Seven

Technical Business Assistance

to

teaching better business

direct

and

technical

aid

to

Department's

has

programs

to go before we attain

way

the aim of

a

balanced distribution

opment

attended

businessmen
advice

or

1,007

seeking

assistance

cases

of

orientation,
in

The Bank of Nova Scotia,

!

Business Development Department

j

44 King Street West, Toronto.

Canada

interested in modern¬

so

except for the lack

obtaining credit under the present

of

regulations

Gentlemen:
Please send
a

me a

copy

of Advantagervf

Puerto Rican-Based Operation.

\

fore

credit granting

studying

sources

businessmen.

small

insti¬

Bank

(or Company).

is there¬

of

possibility

the

new

Name.

and

government

A ddress

of credit
One pos¬

sibility is the formation of groups
for

this purpose among the

busi¬

themselves.

nessmen

business

Developing Foreign Markets

practices, the localization of their
businesses, modern techniques and
related

problem s.

Of

these

725

of their

stores.

The

technical

remodeling

different

Another

cial life
the

Department is taking part is
development of foreign

kets

dered

by

the

different

ren¬

Bureaus

BRNK

commer¬

of Puerto Rico in which

the

Many
assistance

aspect of the

for

of

Puerto

the

tablished here
the point

new

Rico

THE BRNK OF NOVR SCOTIR
Executive Offices: 44

mar¬

industries

where they need to

ex¬

Street

Chicago: Board of Trade Building

es¬

to

King Street West, Toronto

New York: 37 Wall

products.

have developed

1

I

capital and the impossibility of

for

Devel¬

I

system. For instance, many busi¬

cal year,

Commercial

concisely
brochure

rapid, we still have a very

been

developing

the Department's Bureau

are

outlined in the Scotiabank

Although the rate of growth of
the

businessmen. During the past fis¬

Technical

addition, the special incentives offered

business in Puerto Rico

tion. You can obtain your free
copy simply
by completing and mailing this coupon.

commercial

ices

business customers through

Advantage of a Puerto Rican-Based Opera¬

tutions. The Department

serv¬

Scotiabank office.

your

$1,538,381 from the Consumer

ing

consultation

any

to

has bought a total

methods: it implements its teach¬

providing

the

Cooperative Wholesale Company.

of

The Department does not limit

on

Since then

readily available both to

and

In

stores.

member

to

established

Rico and the North American

you

of

goods monthly, 80%

of

total

was

than 50 years ago.

mainland—all

several

establishment

drug

months

more

the bank has accumulated a vast store of
experience and information on trade be¬

dur¬

their businesses

remodeling

able to do

shopping centers

places

a

services.

above, we still have

second

its

was

furniture

others

retail

in

chain

one

CADEM
two

cutting long

local supermarket

a

nical assistance in the

parts of the Island are in an ad¬
vanced

arithmetic,

meat

received partial or complete tech¬

January, 1964.
A

public

and

commercial
training,

fiscal

started on

goods and

the

nessmen are

of

beginning

of

As I said

Lucky

year:

During

stores.

year,

during

Los
Houston

Puerto

Angeles: 611 Wilshire Boulevard

Representative: Gulf Bldg.,712 Main St.

Rico Offices at San

as

integra¬

and Golden Cross

Seven groceries

ware¬

public

centers,

market places and

economic

of

Two

groups.

formed

were

of

inter-Caribbean

chains

voluntary

purchasing

these

merchandising

Com¬

of

the

Area

spot business

you

Or¬
and

possibilities

Caribbean

BRNK can

the

promotes

Department

organization

izing their business and would be

Company

Department

tion

How

a

the

out

public corporation at¬

works

investigating

both

and

also

given,

also

is

es¬

potential

Agricultural Extension Service of

itself

(CDC),

of this train¬

range

(jointly with

taught

subjects

personnel

relations,

in more
chain,
helping them

practices,

collaborated

Puerto

tion of the region for the produc¬

a

counting.

university Lucky
businessmen. A of

program:

training of businessmen
efficient

the

methods,

During its second year of life,
the

trade

Development Ad¬

have

of

Caribbean

the

the

a

the

simple but adequate system of ac¬

Departments,

is professors and
kind sampling of the

with

system

ment

It

profit.

own

aim to develop this

distribution

of

the

of

in

in

the

in

whole:

a

in in¬

us

participation

throughout

the basis of investigation ing the past fiscal year. Golden
A given program may Cross Drugstores bought a whole¬

on

corporate chains, training or a
Instructors for these courses are
cooperative and independent es¬
tablishments may participate in a found among the personnel of the
situation of balanced competition Department and other Govern¬
to

trade

co-

number of trade fairs and similar

needs.

and

voluntary

been

of trade opportunities

us

grocery chain and 13 of the 28
Rico, the Golden Cross drug stores received
Labor Department and others.
complete technical assistance in

development
and efficient dis¬

balanced

a

has

operating closely with

forming

Department of Education,

the

ment to stimulate the

tribution

with

in buying Puerto Rican products.

ministration

completed

Department

closely

the

When

is

The

interest

an

participation

Rico in international affairs.

in

American

Latin

and

the University of Puerto

It is

businessmen

countries have shown

participated. The Bureau
Continuing assistance is offered
cooperated in the organiza¬ these groups after they are es¬
of educational programs by tablished. For example, 25 of the

other
as

difficult indeed.

very

European

of

persons

also

and

niques

personnel, 35 programs

organized

were

tech¬

of modern commercial

ance

tablished

Rico

regards the training of op¬

erational

the

the

for

number

grand opening. Modern¬

a

stores

owners.

had not been matched by a corre¬
As

distribution

cluding

the drug

with

Register

seminars

chandising

Carlos J. Lastra

a

merchandise.

ized

the

period,

organized

1,052 businessmen par¬

National

industrial pro¬
duction

the

at

teresting of these projects was the

the rapid

by

end
had

ticipated.

be¬

shown

created

was

Department

the

a

Para¬

growth

of

Bureau

gerial training programs in which

situ¬

rate of

the

Bureau

By

and

doxical,

of

beginning of fiscal year 1962-63.

para¬

complex

the

Resources

within

selves, to cope
doxical

re-training

and

personnel,

Human

them¬

with

trailing

ness

the businessmen

the

A

publicity campaign is planned, in¬

implement the program for

managerial and operational busi¬

created, at the
insistence

To

(on

including

modernization

Measures

its third

The Department was

of life.

year

entered

Rico

Puerto

of

Commonwealth

of the

store

pattern, wherever this

equipment needed and floor plans

Teaching Better Business

1963, the Department of

July,

Commerce

the

of

and

In

plans.

fered.

ing the applications of local busi¬

for the

Secretary's report on progress and prospects.

the

remodeling

organizing commercial missions to
different countries and arranging

Others

in different countries and process¬

feasible)

Presented below is

of foreign markets to the Island's products.

up

Adminis¬

could

expand if the opportunity of¬

plan for the moderniza¬

a

service

and trading firms, and the opening

Bank

pand their market.
so

The second stage consists in pre¬

tion
nical

the

Development

preliminaries to mak¬

as

paring

teaching of better

as

fi¬

a

estimate

an

modernization,

loans

specific

ing

ha^ accelerated the development of such commercial

facilities

devel¬

opment; the preparation of
nancial statement and

Government

production has far outrun distribution. To remedy the

imbalance,

business

for

and the Small Business

threatening

present

a

potentialities

processing

of Puerto Rico, San Juan, Puerto Rico

of

standing

its

of

By Carlos J. Lastra, Secretary, Department of Commerce,,

Department in¬

assessment

Juan, Fajardo and Santurce

The Commercial and Financial Chronicle

16

.

.

Thursday, September 19, 1963

.

THURSDAY EDITION • OVER 20 FEATURES • SPECIAL ARTICLES

-

calendar

new issue
.

Novmhdw 3

Cwrgl*

The Security I Like
Best..

Registration!
h

in

Securities Now

A continuous
forum in

Froul

,

I Thursday )

tick wt.k.

.1

MUTUAL FUNDS

* HI

a

**-.

VIII

Tb^Ti ;S,0;.-m->:v:ih'nV.-«2.ooo.ooo''

ember 4

which,

"r!nvas»n.?n7Tn,tf ^vSoV^ild
,,nf"
it toVI.ATS'.*
l«

(Friday)

SECURITY SALESMAN'S
CORNER

«

,

.

.Common

The State

'

"miwi/I

'faaftu
Vrmhr
Sttiil, /■;.»,

BY JOHN

Hunt

DVTTON

''rid

nf

c/ood

A'Vc»;;
•runa
a. 'o

i

pi

I

Consultants

5-

of

What Lies Ahead
...
For Interest Rates/ »

prcferrcd.stoc^is 1-y rts_For cxprnisicmj.

|i

Ave"ch,c*8

Something No Security Salesman Should
There

still

are

'->•••-

•«--«
that

.

'»!

Ever

^ASHINGTo

Forget

...

(he fund

put

Kxrailirr liVn/Wdrn/.
t',omi>nny, Nno York ('My

every

Casizza.*

Hv Alfred J.

-"'irtsr «■

.

Truft

It

is,

it J
respond
had

oxpoeti a "further sap" '"J"'""' rJ
IHt. Ho basos Ibis on tbo prospoet of somo decline in tl
tor funds next yoor end on tbo oxpoetation of an ample
institutional serines that will bo seekinc iovostnuot oath
term rotes, kc also poreoWes, will similarly opp-or at U

Industry: Its
Problems and Potentials g,.

Now York bankor

PUBLIC UTILITY

|ECURITIES„II„r

tkon tkis

kanco tbo

The Oil

year's. All in all. Mr. Cosoxio eoneiudos, this .
desirability of wall soeorod mortgages. whore
at attractive yields, in bankings portfolios.

By Jolni E.

fluctuations are de-

new^demands by

,n

you so

Sweurinpen,* Present.

...rchlnt inventory

of »ho

steel

St,mil,ml OH 0>. '/mfmmi)

;.«•««

»""« ■» «< «

industry

No other publication

gives

rail

on

GOVERNMENTS

iij

centur;

BY JOHN

prc-l!)il
A soul

interest rate

Our Reporter

f(i|T

the

no

...

J

Mj|««

T.

Regal,

CHIPPENDALE,

[n the

pooka

JR.

ndustrf'

financial service

much—so economically as

The COMMERCIAL and FINANCIAL CHRONICLE
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.

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56 PAGES OF STATISTICS AND NEWS

lr»lng Lundborg At
8. D. Lunt At CO.
W.

L.

Lyor-

Co.-

SSOO.OOO

Ch

200.000

(|

of

fhn

irr>n«T

[

Corporate
and Municipal Financing
Ahead
A
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_

By

*■

SIDNEY

|to°ck orYondYn whichYrfv
jange for Week

d

Ending Oct 28.

'J

i,"tended to
" HaVe °-CL

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nnn.uu

BROWN

Stock Exchange
HOHQ

l\VvUI U
"

IMW1BW

P„lod"

Th«

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FRIDAY—WEEKLY—YEARLY

A"..AhA 2S2S2

X\dlclm»l

lndlc.tr In

each cat* the month

32«1. o( . point.

point r.pr.»«nt on. Of more

,h.n u

'

■

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LOW AND
a

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MIOH SALE PWCM
toaAMx

ii■

,

STATE AND CITY DEPARTMENT

or

bocght (indicated
by

whichUhaave°an

the

"«1

wSln.lT

Montreal Stock
"...

JBONLLPROPOSALS AND NEGOTIATIONS
~—f
f
CANADIAN MARKETS (R.n8efor
DIVIDENDS
ton.

Exchange

A„

i

stock

D-ri_ri
*or

Bl<

Pickering Lumber

COMMERCIAL




AND

FINANCIAL

nounced

during the

second table in

ously announced.

oi

current week

whiS
atfoJ,
bZi,"h ftT

Thi^

we

paymen^yi^^^BBlBnMtl!Il-Z

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THE

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CHRONICLE

25

PARK

PLACE

NEW

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n

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reached their

YORK

8, N.Y.