Document Sample
               AN APPRAISAL


      The basic assumption underlying an antitrustl policy is that the public
interest is best safeguarded from evils of monopoly and predatory behavior
by the maintenance of a competitive economy unfettered by limitations
based upon corporate self-interest. Hence, the unrestrained interaction of
market forces would dictate the best course of development of a nation's
resources and would insure a prosperous economy.
     But unlike the classical American2 approach to antitrust problems, the
formulation of a viable antitrust policy in the Philippines must take into
serious consideration certain legitimate goals of a developing economy-
that of promoting and obtaining economic growth and performance, chan-
neling the use of natural resources, and encouraging the development of
small business. These chosen goals must be viewed in the context of the
Philippine investment and development policies and the legal framework
     * LL.B., U.P. 1976. Member, Editorial Board, Philippine Law Journal SY 1975-
1976; Associate, Siguion Reyna, Montecillo & Ongsiako Law Offices.
     1 The definition in Black's Law Dictionary of the term "antitrust" is hereby adopted
for purposes of this study: "Antitrust-    ...  statutes to protect trade and commerce
from unlawful restraints, price discriminations, price-fixing and monopolies." BLACK'S
LAw DICTIONARY (5th Edition, 1979).
     2 Domestic antitrust policy in the United States is based on both common law and
on five U.S. statutes, namely: the Sherman Act of 1890, the Clayton and Federal Trade
Commission Acts of 1914, the Robinson-Patman Act of 1936, and the Celler-Kefauver
Act of 1950. Briefly, these statutes, separately or together, prohibit: a) contracts,
combinations, and conspiracies in restraint of trade; b) monopolization, attempts to
monopolize, and conspiracies to monopolize trade or commerce within the U.S. or
between the U.S. and foreign countries; c) price discrimination or pricing that tends to
create a monopoly; d) tying clauses and exclusive dealing agreements that adversely
affect competition; e) mergers lessening competition substantially; f) interlocking
directorates among competing firms.
     Another relevant statute is the Webb-Pamerene Act, 15 U.S.C., Sees. 61-65, which
excludes from the application of the Sherman Act associations entered solely for, and
engaged solely in, export trade and agreements made by such associations in the course
of export trade, as long as the associations do not restrain trade in the U.S. and do
not restrain the trade of any domestic firm 'which competes with them. However, the
associations may not affect the prices, in the U.s., of the commodities they export;
nor may they substantially lessen competition or otherwise restrain trade in the U.S.
The Act also excludes the applicability of the Clayton Act to acquisitions of corpora-
tions organized solely for, and engaged solely in export trade, as long as they do not
substantially lessen competition or restrain trade in the U.S. On the other hand, the
Federal Trade Commission Act's prohibition against unfair methods of competition is
expressly made applicable to export trade, even if the acts involved were all done
outside the territorial limits of the U.S.
within which the same are to operate. Rather than concentrating on limiting
market power, enforcing standards of fair business conduct, and reducing the
power of large business enterprises, an effective antitrust policy must con-
sider the country's cultural tradition, political pressures, economic objectives
and perceptions 'of what is practicable." Moreover; questions concerning re-
strictive practices legislation are inextricably intertwined with broader prob-
lems of foreign economic policy-fo); instance, balance of payments deficits,
the need for access to foreign markets, tariffs, consumer protection, treaty
obligations and commitments made to international organizations-which
may affect the scope and reach of any antitrust legislation at a given time.
In sum, the Philippine antitrust policy must be devised in the context of the
country's economic, social and legal perspectives.
       The Philippines subscribes to the enterprise type of economic organiza-
tion with liberal rewards for enterpreneurial initiative. But unlike the Ameri-
can modeP-where free competition was thought to be the best method of
preserving the Jeffersonian ideal of an economy made up of many indepen-
dent small businesses-in the Philippines, competition plays a subservient
role in relation to entrepreneurial initiatives in organizing resources. As one
economist stresses: "[T] he Philippines has maintained a broad spectrum
of legislative controls ostensibly designed to regulate private economic
activity. Understanding of Philippine public economy policy turns, however,
on an awareness that regulation results primarily from manipulation by the
State of the intensity of economic incentives to individual action."4
     There is still much confusion about the relationship between the net
benefits of direct foreign investment to the developing countries and the
monopoly power of the investors. Rightly or wrongly, it is usually supposed
that those industrial brontosauruse~alled     "global" or "transnational" or
"international" or "multinational" corporations, depending on the semantical
preferences of the writer-are able to extract even larger monopoly profits
from developing countries via direct investment. While there are no solid
propositions to support this observation, a closer scrutiny of the Philippine
competitive scenario presents a potentially grotesque picture for smaller
      The impact of foreign direct investment on the structure and per-
formance of local enterprises and the competitive climate in the Philippines
has been largely ignored, perhaps because the issue is subtle and complex,
involving as it does a certain degree of technical refinement in the area of
antitrust analysis. Fortunately, this task is made easier by the fact that a
basic knowledge of the rudiments of industrial organization economics would
      3 Some economists have questioned whether, in principle, the American competition
model is always the best instrument for bringing about economic integration. The most
detailed argument on this score has been advanced by Professors Vito, Marchal, Wessels
VELOPM,ENT"ii-viii (1961)
suffice in understanding issues where antitrust and economics interface (e.g.,
predatory pricing). However, this paper is not intended as a comprehensive
treatment of the complex subject of Philippine antitrust policy vis-a-vis
multinationals. Instead, it is merely an overview of the subject, designed
to alert the readers to some problem areas facing our policy makers in
today's domestic antitrust climate.
      This paper attempts to synthesize the antitrust policy in the Philippines
by identifying and analyzing Philippine laws which are in the nature of
antitrust legislation, situate and assess the proper role of antitrust policy
within the legal framework in relation to the current investment policy
vis-a-vis multinational corporations, and evaluate the antitrust policy's via-
bility in the market structure thus created by said investment policy.
      The study begins with an analysis of the antitrust policy in the Philip-
pines and then proceeds with a discussion of the competition profile, with
emphasis on a cross-sectional analysis of representative industrial sectors in
the Philippines and the competitive role of the multinational corporations
in their respective groups. The next section then makes an assessment of the
Philippine antitrust policy regarding foreign investment and relates this to
the present investment policy. The study concludes with a policy assessment
of certain aspects of Philippine antitrust and an evaluation of its viability
within the market structure.

      The Philippine antitrust policy is embodied in several laws scattered in
the statute books.6 These laws, separately or together, prohibit: 1) entering
into any contract or agreement or any conspiracy or combination in the
form of trust that affects by artificial means free competition in the market;
2) monopolizing any merchandise or object of trade or commerce, or com-
bining with any other person to monopolize said merchandise or object in
order to alter the price thereof by spreading false rumors or making use of
other artifice to restrain free competition in the market; 3) or if a manu-
facturer, producer or processor of any merchandise of commerce from any
foreign country either as principal or agent, wholesaler or retailer, combines,
conspires or agrees in any manner with any person likewise engaged in the
manufacture, production, processing, assembling or importation of such
merchandise or object of commerce or with any other person not so similarly
engaged for the purpose of increasing the market price in any part of the
     S An in-depth study of Philippine antitrust policy is seriously hampered by the
dearth of materials which can shed light into the legislative history of the pertinent
laws. Congressional deliberations and committee reports are often no more precise
than the statutes themselves. Hence, the so-called legislative wisdom, energy and con-
sensus which serve a guiding light in the proper analysis of legislation are not available.
     6 The term "antitrust" is rarely used in Philippine judicial parlance. This term is
used synonymously with "laws against monopolies or combinations in restraint of trade"
which "ant aimed at raising levels of competition by improving the consumers' effective-
ness as the final arbiter in free markets." See J. Gokongwei, Jr. v.. Securities and
Exchange Commission, et aI., G.R. No. L-45911, April 11, 1979, 89 SeRA 336.
Philippines of any such merchandise or object of commerce ll1anllfactured.
produced, processed, assembled in or if any articles in the manufactur~ ~f
which such imported articles are used;' 4) certain mergers and acquisitions;
and 5) interlocking directorates among competing corporations. Thiss~ctio!l
of the paper will review the existing antitrust policy in the Philippines with
particular emphasis on its application to direct foreign investment.

      Article 186(1) of the Revised Penal Code of the Philippill~$penalizes
the act of "entering into any contract or agreement or any conspiracy or
combination in the form of trust that affect by artificial means free cOmpeti-
tion in the market." For reason to be discussed in another section of this.
paper,s this provision has not been given much application and construction
by Philippine courts. Consequently, there is a dearth of materials on this
particular aspect of antitrust policy in the Philippines.
       However, in J. Gokongwei, Jr. v. Securities and Exchange Commission,
et aU the Supreme Court of the Philippines had occasion to discuss the
nature and scope of other laws in the Philippines which prohibit monopolies
 and combinations in restraint of trade. Thus, in :mstaining the validity and
reasonablesness of certain by-laws of respondent San Miguel Corporation
disqualifying a competitor (petitioner in this case) from nomination or
 election to the Board of Dire.::tors of San Miguel, the Supreme Court,
quoting several American precedents,lO said:
           There are other legislations in this jurisdiction which prohibit mono-
      polies and combinations in restraint of trade. Basically, these anti-trust laws
      or laws against monopilies or combinations in restraint of trade are aimed
      at raising levels of competition by improving the consumers' effectiveness
      as the final arbiter in free markets. These laws are designed to preserve
      free and unfettered competition as the rule of trade. 'It rests on the premise
      that the unrestrained interaction of competitive forces will yield the best
      allocation of our economic resources, the lowest prices and the highest
      quality ...  .' They operate to forestall concentration of economic power.
      The law a£ainst monopolies and combinations in restraint of trade is aimed
      at contracts and combinations that by reason of the inherent nature of
      the contemplated acts, prejudice the public interest by unduly restraining
      competition or unduly obstructing the course of trade.10a

      The Philippine courts have not adopted a per se rule11 in the area of
 price-fixing primarily and largely because there is no common law on
    , Article 186, Revised Penal Code of the Philippines, Public Act No 3815 (1930).
was taken from Articles 543, 544 and Act 3247. See also ApPENDIXA.
    8 See discussion, infra at 149.
    9 Gokongwei-, 89 SCRA 336.
    10Standard Oil Co. v. United States, 55 L. Ed. 619; Blake & Jones, "Contracts
in Antitrust Theory," 65 COL. L. REV. 377, 383 (1965).
    lOaGokongwei 89 SCRA at 375-376.
    11In a series of decisions culminating in U.S. v. Socony-Vacuum Oil Co., et al.,
310 U.S. 150,218-221 (1940), the American courts decided that price.fixing and similar
antitrust in the Philippines. Aside from the criminal sanctions provided by
Article 186 of the Revised Penal Code, administrative measures designed
to counteract anticompetitive practices, such as price-fixing, were formulated
via legislative and executive fiats. For instance, Republic Act No. 6124,
otherwise .known as the Price Fixing Law, prescribed "fair, just and
reasonable" maximum prices of essential commodities and established a
Price Control Council for that purpose. Executive Order No. 273 (creating
the Presidential Oil Commission) and Republic Act No. 6173 (establishing
the Oil Industry Commission) were given power to set the prices of petroleum
products and take adequate steps to prevent monopolies and combinations
in restraint of trade within the petroleum industry. The Consumer Com-
plaints Center is charged with the duty to "receive and evaluate complaints
and inquiries from the general public and immediately take action thereon
or refer the complaint/inquiry to the government agency concerned for
appropriate action," and "recommend measures to make the implementation
of consumer protection, price stabilization, fair trade and related laws
more effective and meaningful."12
      A U.S. Federal Trade Commission probe in 1960 of the activities of
General Foods Corporation and four other U.S.-controlled enterprises has
an interesting link with the Philippines and is particularly instructive for
purposes of the present discussion. In the Matter of General Foods Cor-
poration, et al. 13 involves a series of agreements among respondents to:
fix, stabilize and maintain uniformly identical F.O.B. port of entry base price
and price schedules for all types or cuts of Philippine dessicated coconut
imported, sold and distributed by respondents in the U.S.; adopt, maintain
and use and revise from time to time a system of established price dif-
ferentials composed of freight, handling and storage charges, etc.; fix,
stabilize and maintain uniformly identical base prices and price schedules
for all types or cuts of sweetened coconut processed, sold and delivered
by respondents anywhere in the U.S.; eliminate and refuse to grant free
delivery, cartage or drayage, or any allowances for such services, on sales
of Philippine dessicated coconut or sweetened coconut to any buyer from
any port of entry, etc.; and adopt a price leadership plan whereby respon-
dent General Foods generally leads in the announcement of Philippine
dessicated coconut and sweatened coconut price increases and decreases,
etc. A consent decree14 was subsequently entered and the Federal Trade
conspiracies are illegal per se; that is, the prosecutor or civil plaintiff need only prove
the existence of such an agreement for the consequent harmful effect to be presumed.
Included under the per se violations are not only price-fixing agreements but also
agreements to restrict output, to assign areas or specific customers to individual sellers,
to adhere t@ standard pricing formulae, and to punish competitors who do not abide
by the norms. The .only important exception to ~hi~ per se rule .derives fro~ the
rights to impose prIce, output, and market restnctIons on a valid patent hcense,
although these exemptions are far from absolute.
      12 See ApPENDIX A. Infra at 143 et seq.
      13 FfC docket no. 8198, filed 1960, 59 FfC 706 (1961).                .
      14 A consent decree is a negotiated compromise to which the {J.S, Justice Depart-
 ment and the defendants agree. If accepted by the courts, it binds the future activities of
Commission issued a cease and desist order whereby the respondents were
prohibited from doing or performing acts and practices deemed anticom-
petitive in relation to the importation, offering for sale, sale or distribution
of Philippine dessicated coconut or sweatened coconut in U.S. commerce.
Interestingly enough, the subsidiary of respondent multinational in the
Philippines was not impleaded in the FTC charge sheet notwithstanding
evidence that the multinational produced, processed and exported from the
Philippines approximately 75 % of all Philippine dessicated coconut im-
ported, sold and distributed commercially in the United States through this
subsidiary in the Philippines. Nor was there an attempt to prosecute the
foreign enterprises involved in this collusion before Philippine courts. This
sad state of affairs only dramatizes the utter helplessness of the Philippine
government in controlling the operations of foreign multinationals within
and without the Philippine territory.

      Article 186(2) of the Revised Penal Code punishes any person who
shall monopolize any merchandize or object of trade or commerce, or shall
combine with any other person or persons to monopolize said merchandise
or object to alter the price thereof by spreading false rumors or making use
of any other artifice to restrain free competition in the market. As in
price-fixing, Philippine courts have hardly applied this provision due to
serious deficiencies in antitrust policy implementation.
     Perhaps the earliest case to reach the Philippine Supreme Court in-
volving the construction of this provision on monopolization is U.S. v.
Fulgueras.15 This case involved the use of deceit and machinations for the
purpose of manipulating prices of staple commodities in a remote province
during the American regime. So far, this is the only case reported involving
the direct application of said provision. It is obvious that the ruling herein
has no relevance nor application to foreign investment in the Philippines.
      In Gokongwei, the Philippine Supreme Court, citing numerous Amer-
ican cases,16 adopted the following definition of the term "monopoly,"
          The terms 'monopoly', 'combination in restraint of trade' lInd 'unfair
      competition' appear to have a well defined meaning in other juri~dictions.
      A 'monopoly' embraces any combination the tendency of which is to

the defendants but protects them from further prosecution by the government. Whether
consent decrees remedy the original evil must be judged on a case to case basis. Since
a consent decree negotiated before a trial does not constitute lIn admission of guilt by
the defendant, it cannot be used as precedent or a prima facie evidence in subsequent
litigation (such as private suits for treble damages).
      154 Phil. 432 (1905).
      16 Love v. Kozy Theater Co., 236 SW 243, 26 ALR 364; Aldea-Rochelle, Inc. v.
American Society of Composers, Authors and Publishers, D.D.N.Y., 80 F. Supp. 888,
 893; National Cotton Oil Co. v. State of Texas, 25 S.T. 379, 383, 49 L. Ed. 689.
      prevent competitIOn in the broad and general sense, or to control prices
      to the detriment of the public. In short, it is the concentration of business
      in the hands of a few. The material consideration in determining its
      existence is not that prices are raised and competition actually excluded,
      but that power exists to raise prices or exclude competition when desired.
      Further, it must be considered that the idea of monopoly is now under-
      stood to include a condition produced by the mere act of individuals. Its
      dominant thought is the notion of exclusiveness or unity, or the suppres-
      sion of competition by the unification of interest or management, or it
      may be thru agreement and concert of action. It is, in brief, unified tactics
      with regard to prices)7

      In American jurisdiction, price-fixing violations are considerably easier
to detect, prosecute and prevent than monopolization, largely because the
first falls under the per se rule while the latter is subject to the "rule of
reason." In two early cases,18 the U.S. Supreme Court ruled that monopoli-
zation consists of two elements-viz.,     the actual acquisition of monopoly
position, and the intent to acquire that position and to exclude rivals.
Parties attempting to prove these two elements face a formidable burden
of proof and must contend with the difficult problems on how large a
market share constitutes a monopoly position and, more important, how
narrowly or broadly "market" should be defined.
     Philippine courts have not evolved a "rule of reason" for much the
same reason as adduced earlier in their adjudication of monopoly cases,
and little case law has been established in the almost four decades after
the Philippines attained its political independence from the United States.
Of the extremely few cases that have reached the Philippine Supreme Court,
successful prosecution involved illegalities (i.e., violation of statutory laws)
other than monopolization.
Mergers and Acquisitions
     Act 3518, section 20 is almost a verbatim reproduction of section 7
of the American Clayton Act of 1941, as amended by the Celler-Kefauver
Act of 1950., It provides that:
           No      corporation engaged in commerce may acquire, directly or in-
      directly,    the whole or any part of the stock or other share capital of
      another     corporation or corporations engaged also in commece, where the
      effect of   such acquisition may be to substantially lessen competition between

      17Gokongwei, 89 SCRA at 376.
      18U.S. v. Standard Oil Co. of New Jersey, et al., 173 Fed. 177 (1909) and 221
U.S. 1 (1911).
     The "Rule of Reason" was launched by Chief Justice White in the Standard Oil Co.
case: because the statute is "broad enough to embrace every conceivable contract or
combination. . . anywhere in the whole field of human activity. . . , it inevitably. . .
called for the exercise of judgment. ...    [T]he standard of reason which had been
applied at the common law and in this country in dealing with subjects for the character
embraced by the statute was intended to be the measure used for the purpose of
determining whether, in a given case, a particular act had or had not brought about
the wrong against which the statute provided .... " See P. AREEDA, NTITRUST    ANALYSIS,
     the corporation making the acquisition, or between any of them, or to
     restrain such commerce in any section or community, or tend to create
     a monopoly of any line of commerce. 18a

      Curiously, Act 3518 was hardly applied or construed by Philippine
courts; hence, there is no case legacy which one could look into to under-
stand and analyze the scope of the above law. However, there are special
laws which set maximum limits to stockholdings in certain corporations for
the purpose of preventing illegal monopolies or combinations in restraint
of trade.19
     Hence, Section 140 of the present Corporation                  Code pertinently
provides that:
           . . . J[M]aximum limits may be set by the Batasang Pambansa for
     stockholdings in corporations declared by it to be vested with a public
     interest pursuant to the provisions of this section, belonging to individuals
     related to each other by consanguinity or affinity or by close business
     interest or whenever it is necessary to achieve national objectives, prevent
     illegal monopolies or combinations in restraint of trade, or to implement
     national economic policies declared in laws, rules and regulations designed
     to promote the general welfare and foster economic development

      The old Corporation Law likewise provides quantitative restrictions
in equity participation to forestall combinations among corporations en-
gaged in mining and agriculture.20 Republic Act No. 337, also known as
the General Banking Act, provides limitations on equity participation of
certain classes of stockholders in the banking business.21

Proposed Antitrust Law of the Philippines
      Sometime in 1980, 13 members of the defunct Interim Batasan Pam-
bansa introduced Parliamentary Bill No. 989 entitled "The Antitrust Law
of the Philippines"22 which seeks to prohibit and penalize all contracts or
agreements or conspiracies-such     as price-fixing, market divisions, group
boycotts, etc.-that   would unreasonably restrain trade or commerce. The
Bill also prohibits and penalizes monopolizations or attempts to monopolize,
and the unjustified discriminatory practice {usually resorted to and availed
    18a 38 Stat. 730, 731   (1914).
    19 Section 140 of the    Corporation Code (Batas Pambansa Big. 68); Sees. 12-B,
12-D, 12-E of Rep. Act No. 337 (General Banking Act) as amended by Batas Pam-
bansa Big. 61. Section 12-E authorizes the Monetary Board to further limit the equity
investments, direct or indirect, in banks and non-bank financial intermediaries perform-
ing quasi-banking functions "to promote competitive conditions in financial markets."
     20 Corporation Law, Secs. 13, 5-A. The Explanatory Note to this law is instructive:
"Some mining companies have surplus capital but they do not possess good mines. Other
mining companies havtl promising prospects but have no available capital. There are for-
eign companies that are decided to invest multi-million dollars in the development of our
mines, provided that the law allows them to own and hold up to 40% of the capital
stock of a domestic mining corporation ....     " Hence, Section 5-A was inserted by
Rep. Act No. 5167 to strike a balance between the policy against monopolies and
 combinations in restraint of trade and the need for a fuller and faster development of
our mineral resources.
of by those who are dominant in a particular market) of certain unscrupu-
lous persons in entering into contracts with different persons similarly
situated but under different contractual conditions. Section 6 of the proposed
Bill prevents the undue concentration of economic power in one corporation.
It includes a section on unfair competition and false advertisement and a
provision on prevention of undue concentration of economic power through
interlocking directorates.
      The proposed Bill applies to all persons, natural or juridical, who are
engaged in commerce. It has an extraterritorial reach being applicable to
both domestic and foreign corporations where their contract has substantial
effect on Philippine trade and commerce.23


      It is axiomatic that effectively far-reaching statutes which are in the
nature of antitrust legislations are rooted in the notions of "competition."
Hence, to understand economic competition more concretely, a study of
the Philippine antitrust policy vis-a-vis foreign investment requires an ap-
preciation of the structure of the Philippine economy.
      In the tradit}g~al--&p.£ryticsense,the    Philippine economy is divided
into six sectors, viz., manufacturing, commercial, mining, services, utilities
and agriculture. The manufacturing sector is further subdivided into the
following groups: food processing; textile and garments; petroleum; vege-
table and animal oils; chemical and chemical-based products; wood and
wood products; paper and paper products; rubber and plastic products;
basic metals; non-metallic mineral products; alcoholic drinks; transportation
and heavy equipment; electrical machinery, appliances and supplies; and
miscellaneous manufacturing. For the commercial sector: principal com-
modities; general merchandise; primary industrial products; general retail;
automotive vehicles and supplies; petroleum products chemical-based pro-
 ducts; real estate and construction supplies; home and office appliances and
supplies; agricultural and industrial machineries; and miscellaneous com-
 mercial activities. The services sector components are: management service;
education; construction; medical services; hotels; restaurants; printing and
 publishing; brokerage; games and amusement; and miscellaneous services.
 The utilities sector-power;      communication; broadcasting; air transport;
 land transport; sea transport. Lastly, the subdivisions of the agriculture sec-
 tor irtclude: fishing; sugar; fruits and vegetables; logging; poultry and live-
 stock. .
     A brief cross-sectional analysis of the six economic sectors, with em-
phasis laid on the performance and competitive positions of multinationals
    22ParIlamentary   Bill No. 989. See ApPENDIX B for full text thereof.
    23 See [d. Explanatory· Note of Parliamentary Bill No. 989.
in their respective industrial sectors or groups, is presented below for a
proper perspective on the competitive situation in the Philippines. In assess-
ing the following figures, however, it must be borne in mind that in the
compilation of industry totals, only firms in the so-called SEC-Business
Day Top 1000 companies, measured by 1982 sales, have been taken into
consideration. This is so because although some industries are crowded
with small firms, in most cases their aggregate contribution to the industry
activity is quite small.
     The following examples illustrate the competitive positions of multi-
national corporations in the different industrial sectors of the economy.
      The manufacturing sector represented by 404 firms reported a com-
bined revenue of P105,216.19 million for a 41.74% share of the total. The
multinationals-dominated soap and synthetic detergents group registered a
combined net sales of P2,809.38 mIllion from P2,559.88 million the pre-
vious year. In the petroleum products group, the two government-owned
oil giants (both under the Philippine National Oil Co. [PNOC] umbrella),
Bataan Refining Co. (BRC) and Pilipinas Shell Petroleum Corp., registered
net sales of PI2,327.75 million and P7,581.48 million respectively. Follow-
ing closely were Caltex (Phils.), Inc. (a subsidiary of Caltex Petroleum Co.)
with net sales of P7,067.03 million and Philippine Petroleum Corp. with
Pl,526.73 million. Mobil Oil Phils., Inc. bowed out of the scenario with
the recent finalization of the sale of its local operations to Caltex and its
40% interests to BRC and PNOC. Significantly, Mobil is the third oil
multinational to pull out its investments and operations from the Philippines.
Esso (Phils.), Inc. and Getty Oil Phils., Inc. were sold out by their parent
companies in 1974 and 1979 respectively.
      Pilipinas Kao, Inc., a Japanese subsidiary, led the perfumes, cosmetics
and toilet preparations group with a turnover of P233.54 million. Philippine
Refining Co., Inc. (PRC), a subsidiary of the Dutch Maribel N.V., led the
soap and synthetic detergents group with sales of P947.83 million in 1982.
The other American subsidiaries producing soap and other home products
locally are: Procter and Gamble Philippines Manufacturing Co., Inc., with
P866.70 million in 1982 sales and Colgate-Palmolive Philippines, P870.347
     With the exception of Metro Drug Corp. (P817.39 million) and
United Laboratories, Inc. (P732.76 million) which are currently at the
helm of the local drug industry, the Philippine drug industry is composed
mostly of foreign firms operating either as branches or subsidiaries of their
parent companies. This is due mainly to the technical factor which is of
crucial importance to said industry. Most notable of these multinational firms
are Johnson & Johnson (Phils.) (American, P334.52 million), Wyeth-Suaco
Laboratories, Inc. (American, P252.12 million), Abbott Laboratories
(American, P181.20 million), Warner-Lambert Philippines, Inc. (American,
P175.98 million), Bayer Philippines, Inc. (German, PI72.45 million),
Pfizer, Inc. (American, P145.58 million), Ciba-Geigy (Phils.), Inc. (Swiss,
P116.16 million), AHSjPhils., Inc. (American, P108.16 million), Mead
Johnson (Phils.), Inc. (American, P96.79 million), Roche (Phils.), Inc.
(Swiss, P94.12 million), Winthrop-Stearns, Inc. (American, P93.49 million),
E. R. Squibb & Sons Phils. Corp. (American, P83.64 million), Boehringer
Ingelheim (Phils.), Inc. (German, P77.22 million), Smith Kline & French
Overseas Co. (American, P70.56 million), Richardson-Vicks Corp. (Amer-
ican, P62.59 million), Eli Lilly (Phils.), Inc. (Swiss,P62.52 million), Astra
Pharmaceuticals (Phils.), Inc. (Swedish, P57.80 million), Schering Corp.
(Phils.), Inc. (American, P47.80 million), Upjohn, Inc. (American, P47.61
million), Bristol Laboratories (Phils.), Inc. (American, P46.02 million),
Hoechst Philippines, Inc. (German, P45.84 million), and Sandoz (Phils.),
Inc. (Swiss, P38.22 million).
     The tires and tubes group which is dominated by U.S. tire companies
reported net sales of P826.03 million. However, stiff competition for the
consumers' money was clearly evident as the top three firms-i.e., The
Goodyear Tire and Rubber Co. (Phils.), Ltd. (P398.61 million), Firestone
Tire and Rubber Company of the Philippines (P353.06 million) and Sime
Darby Int'l. Tire Co., Inc. (PI74.35)-once       again dominated the market.
     A somewhat similar situation obtains in the fertilizer group were
Planters Products, Inc. recorded sales of PI ,345.59 million or about 71%
of the group's total. Phimco Industries, Inc., a subsidiary of Sveska Taenstick
of Sweden, virtually monopolized the match manufacturing with sales of
P223.798 million, or roughly 66% of the aggregate sales of its group.
     In the aluminum and aluminum base alloy casting group of the metal
industry, two multinationals, Hooven Comalco Industries, Inc. and Reynolds
Philippines Co., dominated the aluminum market by capturing a combined
sales of P380.52 million. The iron and steel products industry group is
likewise dominated by a foreign-owned firm, the Philippine Sinter Corpora-
tion (a subsidiary of Kawasaki Steel Corporation of Japan).
     In the commercial sector, leading the household-type appliances group
was Singer Sewing Machine Company, Inc., the sister company and market-
ing arm of Singer Industries Corporation, both wholly-owned subsidiaries
of the U.S.-based Singer Company. Singer Sewing registered a net sale of
P194.01 million in 1982.
     Multinationals likewise led the office machines and equipment group
in sales. IBM Philippines, Inc., a subsidiary of IBM U.S.A., was the front-
runner with P288.77 million sales in 1982. A far second was another
wholly-owned American subsidiary, 3M Philippines, Inc., with a turnover
of P87.06 million. Other notable members of the group and their respective
sales are: NCR Corp. (Phils.), a subsidiary of U.S.-based NCR Corp.
(P46.89 million); and Burroughs, Ltd. with sales of P44.44 million. Not
surprisingly, the combined turnover of these four firms accounted for 83 %
of the group's aggregate sales of P561.90 million in 1982.
      In the utilities sector, two multinationals, i.e., Pakistan International
Airlines Corp. and China Airlines, Ltd., occupied second and third positions
behind state-owned Philippine Airlines. The fruits and vegetable group of
the agricultural sector was led by Dole Philippines, Inc., a multinational
which is a subsidiary of Castle & Cooke.
      In resume, a cursory examination of Tables I and II (Appendix C
hereof) reveals that multinationals have gained well-entrenched positions in
the domestic markets. It is therefore not surprising that about 165 multi-
nationals figured in the SEC-Business Day Top 1,000 Corporations. Multi-
nationals dominated the following industry-groups: petroleum products;
vegetable and animal oil industry; cosmetic and toilet preparations; soap
and other home products; chemical and chemical-based products; rubber
and plastic products; fertilizer; match manufacturing; iron and steel products
and non-ferrous metals; car manufacturing; household industry; office equip-
ment group; and the fruits and vegetable group. There are clear yet alarming
indications that several multinationals are gradually assuming positions of
dominance in other groups as entry barriers to manufacturing industries rise
each year. This is particularly true in the manufacturing sector where the
presence of multinationals continues to gain strogner footing in highly com-
petitive fields such as drugs and pharmaceuticals, food processing, petroleum
and tire manufacture. A rundown of these multinationals among the Top
 1,000 reveals that U.S.-based firms still dominaate Philippine foreign invest-
ment in terms of capital distribution, technology dominance, market influence
and similar factors in the country's economy.

                       CONCLUSIONS   AND EVALUATION

      Against the backdrop of Philippine antitrust policy, the nature and
content of the policy's application to foreign investment are more easily
evaluated. With respect to foreign commerce and investment in general,
the Philippine antitrust policy has two objectives: 1) to encourage foreign
firms to enter the Philippine market; and 2) to eliminate unreasonable
restraints on Philippine trade.

Foreign Investment Scenario
     A Filipino scholar observes that "the present policy of the Philippine
government towards foreign investment in general, and the multinational
corporations in particular, is clearly one of 'attraction'."24 As can be seen
    24 Maria Clara L. Campos, Multinational Corporations and the Philippines As
Host Country: A Legal Assessment, 50 PHIL. L. 1. 149, 156 (1975).
in the following discussion, this policy remains unchanged particularly in
light of the current economic crisis.
      The almost phenomenal growth of foreign investment in the Philip-
pines during the last decade is a concrete proof that the policy or
"attraction" has indeed attained a certain degree of success. In 1980,
the Securities and Exchange Commission reported 4,537 domestic corpora-
tions with foreign equity and 2,116 partnerships with foreign participation
licensed to do business in the Philippines. About 256 regional headquarters
of foreign corporations engaged in international trade and 20 off-shore
banking units were licensed by the Commission in the same year.
      Central Bank of the Philippines figures show that from February 1970
to December 1980, $1,519.02 million had been committed in foreign invest-
ment, $1,280.88 million of which had been inwardly remitted, with $238.14
million outstanding as of December 31, 1980. Over half of the inward
remittances were in manufacturing, mostly chemicals (14.7%), food (6.9%),
basic metals (5.8 %) and transport (4.3 % ). The next largest categories
include banking (18.8 %) and mining (17.57 % ), with petroleum and gas
extraction (14.3%) consisting the largest component part of the latter.
     The United States remained the largest investor with 54.6% of the
investment inwardly remitted since 1970. Japan (16.7%) came second,
with Hong Kong (4.3%), Canada (3.9%), and Switzerland (2.5%)

Laws and Policies Affecting Multinational Corporations
      The official Philippine policy -largely echoing traditional analysis25-
promotes foreign direct investment in all economic sectors in the country.26
The govenment's most straightforward tool is in the form of incentive
legislations, the most important of which is the Omnibus Investments Code
 (Presidential Decree No. 1789),27 The Omnibus Investments Code expressly
  , 25 Traditional theory advances the view that foreign direct investment contributes
positively to development. For a comprehensive treatment of this theory, See G. L.
      26 Some areas of economic activities are expressly reserved for indigenous com-
panies. Ct. Campos, supra note 24, at 160-165. Certain special laws impose restrictions
on foreign equity participation in certain ventures. It is completely barred from rural
banking, operation of mass media, and retail trade. Foreign equity in coastal shipping
companies is limited to 25% and, in bay and river shipping, to 30%. Some limitations
(e.g., the 40% foreign equity limit in public utilities and in utilization of natural
resources) derive from the Constitution.
      27 Under the Omnibus Investments Code, incentives to registered producer enter-
prises include: deduction of organization and pre-operating expenses (Article 45 [a] );
accelerated depreciation (Article 45 [b]); net operating loss carry-over (Article 45 [c]);
tax exemption on imported capital equipment (Article 45 [d]); tax credit on domestic
capital equipment (Article 45 [e]); tax credit for withholding tax on interest (Article
45 [f]); incentives for necessary and major infrastructure and public facilities (Article
45 [g]); employment of foreign nationals (Article 45 [h]); deduction from expansion
reinvestment (Article 45 [in; anti-dumping protection (Article 45 [j]); protection
from government (Article 45 [k]); deduction of labor training expense (Article 45 [I]);
and protection of patents and other proprietary rights (Article 49 [m]).
repealed Republic Act No. 5186 (Investment Incentive Act), Republic Act
No. 5465 (Foreign Business Regulation Act) and Republic Act No. 6135
(Export Incentive Act) pursuant to Article 82 thereof.
      Article 68 of the Omnibus Investments Code provides that if an invest-
ment by a non-Philippine national in an enterprise not registered under
Book One thereof is such that the total participation by non-Philippine
nationals in the outstanding capital thereof shall exceed thirty (30) percent,
the enterprise must obtain prior authority from the Board of Investment,
which authorization shall be granted if the proposed investment: a) would
not conflict with existing constitutional provisions and laws regulating the
degree of required ownership by Philippine nationals in the enterprise; or
b) would not pose a clear and present danger of promoting monopolies or
combinations in restraint of trade; or c) would not be made in an enterprise
engaged in an area adequately being exploited by Philippine nationals; or
d) would not conflict or be inconsistent with the Investment Priorities Plan
in force at the time the investment is sought to be made; or e) would not
contribute to the sound and balanced development of the national economy
on a self-sustaining basis.
      The 1973 Constitution and other statutes have expressly reserved some
areas of economic activities for indigenous companies. Hence, Section 9,
Article XIV of the Constitution mandates that "the disposition, exploration,
development, exploitation, or utilization of any of the natural resources of
the Philippines shall be limited to citizens of the Philippines, or to corpora-
tions or associations at least sixty per centum of the capital of which is
owned by such citizens." The provision further allows "such citizens,
corporations, or associations to enter into service contracts for financial,
technical, management, or other forms of assistance with any foreign person
or entity for the exploration, development, exploitation, or utilization of any
of the natural resources." Section 5, Article XIV of the Constitution limits
the participation of foreign investors in the governing body of any public
utility enterprise to their proportionate share in the capital thereof.
      Certain special laws impose restrictions on foriegn equity participation
in certain ventures. It is completely disqualified from rural banking, operation
of mass media and retail trade. Foreign equity in coastal shipping companies
is limited to 25 %, and 30% in bay and river shipping. 28
     Additional incentives to pioneer enterprise cover: tax exemption (Article 46 [a]);
tax exemption on imported capital equipment (Article 46 [b]); deduction for expan-
sion reinvestment (Article 46 [c]); post-operative tariff protection (Article 46 [d];
and employment of foreign nationals (Article 46 [e]).
     Articles 47, 48, 49 and 50 provide additional incentives to agricultural producers,
export producers, export traders and service exporters, respectively. Special incentives
in the form of financial assistance, exporters assistance and assistance to. individual
applicants are likewise extended to registered enterprises under Articles 51, 52, 53, 54,
55 and 56 of the Omnibus Investments Code.
     The Omnibus Investments Code refined and harmonized a host of incentives decrees
and streamlined registration and incentives availment procedures.
     28 Republic Act No. 1937, sec. 806, as amended.
      Presidential Decree No. 218 offers numerous incentives both to regional
offices as well as to foreign executives to encourage them to set up regional
headquarters in the Philippines. Corporate incentives include exemption from
income tax, from three per cent contractor's tax and from local licenses,
fees, dues, imposts or any other local taxes or burdens. As to foreign execu-
tives, the following incentives are extended: 1) ease of travel facilitated
through multiple entry special visas; 2) exemptions from all fees under the
immigration and alien registration laws; 3) exemptions from customs duties
and compensating tax for personal and household effects; 4) exemption
from obtaining immigration clearances, certificates, tax clearances and all
other types of clearances to facilitate travel except upon final departure
from the Philippines; and 5) a minimal 15 per cent tax of gross income paid
in the Philippines. However, multinational corporations setting up regional
headquarters here cannot engage in activities other than to act as a super-
visory, communications and coordinating center for affiliates, subsidiaries or
branches of the region. They are barred from actually participating in the
management of any affiliate, subsidiary or branch office in the Philippines.
With the exception of investment income, income they derive from within
the Philippines shall be taxable.
      A more recent law, Presidential Decree No. 1892, suspended for a
period of one year the nationality requirement under Article 34 ( 1) of the
Omnibus Investments Code of at least 60% Philippine nationals for non-
pioneer industries to be entitled to registration under Book One of the
Code. This Decree likewise allows existing non-pioneer enterprises registered
under Book One of the Code to increase their foreign equity beyond the
60% nationality requirement. The suspension of the nationality requirement
was conditioned on fulfillment of requirements in Article 34(1) of the Omni-
bus Investment Code, particularly Article 34(1)(b), and such other conditions
provided in Book One of the Code, and that the foreign investors will not
engage in activities reserved by the Constitution and existing laws to Philip-
pine nationals and corporations and other juridical entities owned and
controlled by Philippine nationals. This Decree was designed to encourage
and promote foreign investments in the various economic activities of the
country provided their participation is consistent with national goals and
policies and would accelerate entry of foreign investments during the current
economic crisis. Presidential Decree No. 1892 expired on December 5, 1984.
A ntitrust Policy Dilemma
      The massive intrusion of multinationals in the Philippines elicited a
mixture of reactions among Filipino businessmen and some beleaguered
foreign entrepreneurs. Indeed, the need to scrutinize the multinationals'
operations and transactions has become a cause celebre nationwide.29
     ;, For notable  examples,  see STUDY OF PRIVATE FOREIGN INVESTMENTS IN THE
PINES (I.L.O., Ranis Report,   1974); Campos, supra note 24.
     Amidst the highly charged rhetoric of dependency. and exploitation
which accompanies any debate on multinational corporations, there seems to
be no consensus regarding what effect(s) multinationals have on the develop-
ing countries' own interest-whether investment stimulates desirable develop-
ment, or, is a means for the industrial countries to exploit them through
the process of cumulative dependence. Most developing countries have seem-
ingly discarded the "zero sum game"30 in favor of a "positive Sllm game"
and proceeded simultaneou3ly along two tracks: inducing foreign investment
and then harnessing them to their goals.31
      Proponents of foreign direct investment in developing countries often-
times argue vigorously that the multinationals' presence breaks down local
monopolies and exposes local prodt:cers to rigorous competition. But this
statement is belied by certain inherent characteristics of multinationals and
their actual impact on developing economies. The heart of multinationals'
enormous power lies in their economies of scale in production, in raising
capital, in distribution, in advertising and in research and development, as
well as the legal protection afforded them as holders of patents, trademarks,
trade secrets, and mineral rights. It has been suggested that price-fixing,
market-sharing, cross-licensing, mergers and joint ventures all play roles in
the domestic and international growth of multinationals.32 Whether the
operations of multinationals in particular developing countries will benefit
the latter remains a question of great controversy with little empirical
      In opting for a policy of enticement vis-a-vis foreign direct investment,
the Philippines is inevitably exposed to the same economic evils ordinarily
associated with and practiced by multinationals-i.e.,     cartel activities; busi-
ness restrictions practiced by multinationals; agreements on market distri-
bution and allocation; tying arrangements and exclusive-dealing agreements
that adversely affect competition;33 restrictions specified in contracts for the
transfer of technology; arbitrary transfer pricing between the parent company
and its affiliates; monopoly practices; restrictive practices in relation to
licensing arrangements; related arrangements referring to the use of patents
and trademarks; market sharing; pricing policy; and participation of firms
of developing countries in industrial projects of multinationals.34
     30 R. N. FARMER, INTERNATIONAL        BUSINESS 225 (1966). The phrase "zero sum
game," as it refers to multinational enterprises, was probably coined by R. Vernon to
describe the negativistic attitude of developing countries vis-a-vis the presence of foreign
corporations in their midst. See also R. VERNON, SoVEREIGNTYAT BAY 4-25 (1971).
                             E                                    A
374 (1978). According to these authors, these goals fall into four categories; 1) domestic
economic objectives, such as reducing unemployment or raising tax revenues; 2) external
economic objectives, such as improving the balance of payments or breaking into new
markets; 3) national ownership of certain economic activities; and 4) indigenous
managerial control over certain economic activities.
     32 Ibid. at 265.
     33 A tying clause requires that a customer who buys a product from a supplier
buy a second product from the same supplier. An exclusive-dealing agreement requires
a dealer to handle no competing products.
      Empirical research supports the view that direct foreign investments
are made by firms with some kind of monopoly advantage that is best ex-
ploited by maintaining management control of operations in host countries.
The advantage may be a superior product or production process; lower costs
owing to economies of scale or preferential access to capital or raw material;
or a product that the foreign company can, through advertising, differentiate
from more or less identical local competitors. Hence, such advantage is a
necessary condition of foreign direct investment if the foreign firm is to
meet the competition of local entrepreneurs which are closer to the market
and which have shorter lines of communication. In fact, it is often the
emergenc~ of local competition behind a tariff· wall that prompts foreign
firms to make direct investment. 3S
      Furthermore, available data suggest that it is the largest firms located
in concentrated industrial sectors that make direct investments. Such enter-
prises appear, as a rule, in industries in which formidable barriers exist to the
entry of newcomers and in which the competing firms are few in number.36

Philippine Antitrust Policy: An Assessment
      Studies on multinational corporations in the Philippines have invariably
laid emphasis on some general effects their operations have on the economic
development of the country. No Serious efforts so far have been made to
examine the impact of multinationals on the competitive position of locally
owned and controlled corporations. To be sure, there had been some animated
discussions on the likelihood of Filipino entrepreneurs eventually being
driven out of business by these industrial brontosauruses, but no one has
so far suggested exactly how and under what circumstances this is bound
to happen.37
      It will be observed at this juhcture that most of the laws surveyed in
ApPENDIX A of this paper are desif.:ned to combat the abuses of the
consumer-oriented marketing system by categorizing certain business prac-
tices as either unfair or deceptive. Presumably, these laws were passed to
remedy the evils perceived at the time they were promulgated. It took quite
some time, however, be~ore Filipino policy formulators could absorb the
implications of the mushrooming growth of multinationals in the country.
Though multinational enterprises existed here and there for almost as long
 as the modern corporation itself, they have appeared in considerable numbers
"Foreign Private Investment And Its Relationship to Development," adopted 19 May
1972. U.N. ECONOMICANDSOCIALCOUNCIL, "The Impact of Multinational Corporations
on the Development Process and International Relations," E/500/Add/l         (June 1974,
processed) .
      35 D. R. Weigel, Multinational  Approaches to Multinational Corporations, FINANCE
AND DEVELOPMENT (September,          1974»,   Vol. II, Number 3, 27-29 and 42. Also,
R. Vernon, Multinational Enterprises: Performance and Accountability,       in MULTINA-
      36 See R; VERNON, SoVEREIGNTY     AT BAY, at 4-25 (1971).
      37 G. SUTER, AMCHAN JOURNAL,Vol. LIV, no.         10 4, 38 (Octeber, 1978).
only during the past decade or so. How viable then is the Philippine anti-
trust policy on multinational corporations?
      The Board of Investment (BOI),38 as primary administrator of these
incentive laws, is conferred broad rule-making powers39 so that it can disci-
 pline firms that have reneged on their commitments to refund,40 in monetary
form, incentives they have received from the government (e.g., tax conces-
sions). Moreover, violations of any of the terms 3.!1dconditions appearing
in the certificate of registration may lead to either the cancellation of
 registration or suspension of enjoyment of incentive benefits. The scope
and nature of these broad rule-making powers of the BOI are elucidated
by a Filipino scholar, thus:
          In exercising the rule-making power granted to it by law, the BOI
     lays down the general conditions for the entry of multinationals in specific
     areas of investment. In addition, the Investment Incentives Act (now
     Omnibus Investments Code), in granting the BOI the power to approve
      application for registration thereunder, gives it the authority to impose on
      the multinational corporation such terms and conditions as it may deem
      necessary to promote the objectives of the Act. Thus, rather than laying
     down specifically all the conditions under which multinationals should
     operate, the law quite appropriately leaves to the BOI, the agency best
      equipped for the purpose, the important and delicate task of indicating to
     all multinational corporations taking advantage of our hospitality what is
      expected to them in their role in assisting in our economic development.
      The BOI can therefore assess the circum6tances surrounding each applica-
      tion and lay down the conditions most appropriate to such circumstances,
      having in mind our own economic goals....        41

     One of the primary objectives of the BOI is "to achieve a planned
dispersal of industries under conditions that will encourage competition and
discourage monopolies." Hence, in its exercise of administrative supervision
      38 The Investment Incentives Act, or Republic Act No. 5189, created the Board of
Investments (BOI) and invested it with both planning and implementing functions.
The BOI was charged with the responsibility of drawing up annually a list of priority
areas, evaluating project applications for the manufacture of preferred products, admin-
istering the grant of various tax and non-tax incentives and supervising and monitoring
registered projects.
        The powers and duties of the BOI are enumerated in Paragraphs 1 to 20 of
 Article 7 of the Omnibus Investments Code (Pres. Decree No. 1789).
       39 Paragraph 21, Article 7, of the Omnibus Investments Code empowers the Board
of Investments to "promulgate such rules and regulations as may be necessary to im-
plement the intent and provisions of this Code."
       40 Section 1, Rule XXVI of the Rules and Regulations to Implement Pres. Decree
 No. 1789 authorizes the BOI in appropriate cases to require refl:md of incentives in
whole or in part with or without interest or penalties in the event of withdrawal or
suspension of operations of registered enterprises in preferred areas.
      Paragraph 8, Article 7 of the Omnibus Investments Code empowers the BOI,
after due notice, to cancel the registration or suspend the enjoyment of incentives
benefits of any registered enterprise and/or require refund of incentives enjoyed by
  such enterprise including interests and monetary penalties, for a) failure to maintain
  the qualifications required by the Code for registration, $r b) for violation of any
  provisions of the Code, of the rules and regulations issued under the Code, or of the
 terms and conditions of registration, or of laws for protection of labor or of the
 consuming public.
        41 See Campos, supra note 24, at 71.
to curb monopolies and combinations, the BOI is required to certify that
the entry of a non-Filipino firm applying for license to do business "will
not pose a clear and present danger of promoting monopolies or combina-
tion in restraint of trade."42 But before issuing this certificate, the BOI must
assess the merits of each application with the objectives of the Omnibus
Investments Code in mind. In other words, the BOI should proceed on a
case-by-case basis, laying down conditions which may cover matters such
as the amount of required capitalization, the choice of products to be
manufactured, even the training of Filipinos in specified training skills.4J
Theoretically, the BOI, in its exercise of this broad and extensive power,
may deny an application for license to do business where it appears that
the applicant's presence in the business would create the contingency the
law seeks to forestall.
      As seen in the previous discussion, most multinationals have clearly
dominated many of the industries analyzed. There is further indicated that
wholly-owned foreign subsidiaries earned quite sizeable profits and captured
huge market shares. But beyond these statements, however, simple generali-
zations do not come easily. The effects of multinational enterprises differ
considerably according to various characteristics of the enterprises and of
the environment in which they operate. Enterprises that derive their oligopoly
strength from some special technological factors have rather different in-
fluences, as a rule, from those that depend on sheer bigness as an economic
advantage; and those that rely on large-scale production facilities have
different influences from those that operate on the advar.tages afforded by
tradenames or advertising alone. Moreover, there are differences in effects
which are associated with time: after a foreign subsidiary has been perform-
ing some well-defined task of production or distribution for an extended
period, the advantage accuring to the local economy from the continuing
task are likely to decline.44
      Despite the obvious limitation expressed above, there is one generaliza-
tion which cannot be gainsaid: multinationals invariably manage to
stay at the helm of the industry they are engaged in and their presence is
most felt in industries where an oligopolistic situation obtains. On the basis
of this practical reality, certain crucial questions need to be considered:
How effective is the BOI in safeguarding and promoting the competitive
climate in the Philippines? Would the broad rule-making powers granted it
suffice to effectively correct certain trade imbalances and restricted practices
in the domestic market?
     For one thing, the said incentive laws failed to provide for a review
mechanism for re-assessment of the conditions originally imposed on multi-
nationals prior to registration.4s This is especially true in the contex.t of our
    42 Pres. Decree No. 1789, art 69, par. 5, (Omnibus Investments Code).
    4J Campos, supra note 24, at 166.
    44 Vernon, supra note 30, at 71.
    4S See Campos, supra note 24, at 165-166.
present analysis since the impact of the multinationals' operations on com-
petition in the relevant markets can only be felt after a certain period has
elapsed and not prior to registration. Besides, these laws are designed not
so much to promote competition per se as to insure survival of domestic
business enterprises against foreign competition. Hence, the requirement in
the law that adequate development of the industry by Philippine nationals
will not be possible because of lack of capital, technology, skill or because
of the business risks involved.
      Another possible barrier to the BOl's effectiveness as watchdog of the
competitive climate is the very law itself. The law grants multinationals,
as incentives to pioneer as well as non-pioneer ventures, protection from
government regulation and unfair or unnecessary import competition.46
Given the breadth and scope of multinationals' resources and capabilities,
these incentives seem utterly superfluous. They will certainly serve to further
entrench the multinationals in their positions of dominance in the domestic
market. Moreover, a literal interpretaiton and application of these incentives
will mean that imported goods produced by competing but unlicensed multi-
nationals abroad, which may prove cheaper and perhaps better in quailty
than those produced by licensed multinationals, will not be given customs
clearance as these will compete with the latter's product lines.47

      Philippine antitrust provisions are within the rubric of criminal statutory
and jurisprudential precepts although non-penal enunciation of antitrust poli-
cy may be found in special laws. For instance, prosecution of an Article 186
charge under the Revised Penal Code is gravely stymied, if not rendered im-
possible, by its lack of extraterritorial reach as that which the U.S. Sherman
Act has. To illustrate, in the landmark Alcoa case,48 a Canadian corporation
was held violating Sec. 1 of the Sherman Act for its agreement with
European aluminum producers to stay out of the U.S. market. In condemn-
ing the foreign aspect of this agreement, Judge Learned Hand said that a
"state may impose liabilities, even upon persons not within its allegiance,
for conduct outside its borders that has consequences within its borders
which the state reprehends," or at least where those effects were intended.
Domestic effects undoubtedly warrant domestic concern with foreign conduct
causing those effects.
     46 See supra note 3,4.
     47 Empirical studies show that multinationals utilize their patents as licenses to
import, to the exclusion of others, patented products (e.g., medicine, food and much-
needed technological devices) made in their home countries and then sell these products
at grossly inflated prices through transfer pricing.
     48United States v. Aluminum Co., 148 F. 2d. 416, 440-445 (2d Cir., 1945).
AREEDA, ANTITRUST ANALYSIS, PROBLEMS, TEXT AND CASES             125-126, 138-153 (1974),
cited with approval in Continental Ore Co. v. Union Carbide & Carbide Corp. 370 U.S.
690 (1962); Pacific Seafarers, Inc. v. Pacific Far East Line, Inc., 393 U.S. 1093 (1969);
Steele v. Bulova Watch Co., 344 U.S. 280 (1952).
      While Philippine courts do not hesitate adopting applicable doctrines
embodied in leading U.S. cases - especially in the commercial law area,
where most of Philippine laws were engrafted from U.S. models - and give
the latter considerable persuasive effect, the inherent defect in the Philippine
antitrust implementation scheme is the negation of the applicability of the
above principles to a similar factual situation. Parenthetically, as the Alcoa
case establishes, a U.S. investor cannot escape antitrust scrutiny by simply
traveling abroad or by working through foreign subsidiaries.49 However, the
rather embarrassing jurisdictional fiasco depicted in United States v. Imperial
Chemical Industries, Ltd.50 only serves to dramatize the glaring fact that
even the United States, which is reputed to have the most sophisticated
antitrust legislation in the world, is not spared from certain difficulties
inherent in the application of antitrust laws to international business.
       One of the most telling criticisms hurled at multinationals is that of
their lack of accountability to any government.51 To effect a viable antitrust
policy, it is imperative that measures be adopted to extricate antitrust provi-
sions from the matrix of criminal law principles such as that of territo-
riality.52 Perhaps as a remedial measure to this legal kink, the proposed
Parliamentary Bill No. 98953 makes the provisions thereof applicable to
both domestic and foreign corporations where their contract has substantial
effect on Philippine trade or commerce. Hence, antitrust violations, even if
committed abroad or outside the territorial jurisdiction of the Philippines,
are within the jurisdictional competence of the Philippines so long as such
violations substantially affect our trade and commerce.54
    49   See Bergsten, supra note 31, at 260.
    50 For a summary of this case, see FuGATE,FOREIGNCOMMERCEANDTHE ANTI-
TRUST LAws,  129-134 (1971).
    51 As Prof. Vernon puts      its: "The multinational enterprise, though capable of
wielding substantial economic power. is not accountable to any public authority that
matches it in geographical reach and that represenls the aggregate interests of all the
countries the enterprise affects." See R. Vernon, supra note 30, at 71.
     52 Article 2 of the Revised Penal Code provides:
             Except as provided in the treaties and laws of preferential application,
       the provisions of this Code shall be enforced not only within the Philippine
       Archipelago, including its atmosphere, its interior waters and maritime zone,
       but also outside of its jurisdiction, against those who:
             1. Should commit an offense while on a Philippine ship or airship.
             2. Should forge or counterfeit any coin or currency note of the Philip-
       pine Island or obligations and securities issued by the Government of the
       Philippine IslandR.
             3. Should be liable for acts connected with the introduction into these
       Islands of the obligations and securties mentioned in the preceding number.
             4. While being public officers or employees, should commit an offense
       in the exercise of their functions; or
             5. Should commit any of the crimes against national security and the
        law of nations, defined in Title One of Book Two of this Code.
     Article 14 of the Civil Code states that "Penal laws and those of public security
and safety shall be obligatory upon all who live or to sojourn in the Philippine territory
subject to principles of public international law and to treaty stipulations."
     53 See Appendix B.
     54 Ibid.
      Another significant facet of the proposed Bill No. 989 is that it applies
to all persons, natural or juridical, who are engaged in commerce. The bill
seeks to make civilly liable those who commit antitrust violations where
mere "preponderance of evidence" would be sufficient to impose civil liability
upon the violator, awarding to the victim treble damages to compensate for
his injuries. Unlike in the situation envisioned under Article 2855 of the
New Civil Code (which is anchored on private injury thereby not warranting
a government-initiated prosecution), the proposed Bill authorizes the gov-
ernment motu proprio to initiate its own civil suit against the violator.
As a matter of fact, the government may likewise motu proprio lodge its
own civil suit for any violation of the proposed law.56

A Need For Centralized Antitrust Agency
      The effective enforcement of antitrust laws in the Philippines is made
extremely difficult by the lack of a centralized antitrust agency which is
vested with broad investigative powers in the area of anticompetitive prac-
tices. Under the present administrative scheme, several administrative agen-
cies-viz., the Board of Investment, Securities and Exchange Commission,
Fair Trade Board, Consumer Complaints center, Technology Transfer Board,
Technology Resource Center, Price Control Council, Philippine Patent Office,
Securities and Exchange Commission, Board of Energy-are              empowered
to take cognizance of certain specific cases falling under their respective
statutory jurisdictions. Needless to say, the likelihood of wasteful duplication
and overlapping of enforcement efforts and occurrence of jurisdictional
quarrels is great since no elaborate system of notification and consultation
has been worked out either formally or informally between and among
these bodies. Hence, there is an urgent need for a strong centralized anti-
trust agency which is charged with the duty, among others, of overseeing
the competitive climate in the different industrial sectors under certain
guidelines previously set by government antitrust experts.
      This centralized antitrust agency, which must have an expertise on
legal and economic antitrust analysis, should be given the authority to
register, disapprove, review or terminate agreements which are deemed
restrictive in character; conduct investigations on price levels and competitive
conditions; informally negotiate corrective measures; and render binding
reports on its findings. The power of this agency to make corrective measures
must be extended to allow it to issue orders against price discrimination and
other kinds of preference, orders requiring publication of price lists and
forbidding deviation therefrom, orders regulating prices, and orders requiring
divestiture or dissolution. The power to issue orders must likewise be made
      55 Article 28 of the New Civil Code states that "[u]nfair competition in agricul-
tural, commercial or industrial enterprises or in labor through the use of force, intimi-
dation, deceit, machination, or any other unjust, oppressive or highbanded method
shaJl give rise to a right of action by the person who thereby suffers damage."
      56 See Explanatory N9te of Parliamentary Bill No. 989.
applicable to specified classes of restrictive agreements57 which are to be
deemed contrary to public interest if they increase costs, prices, or profits
unreasonbly, if they limit the supply of goods to consumers, or if they prevent
or unreasonably reduce or limit competition .
      The provision for a screening procedure through the registration require-
ment is an effective device to monitor agreements containing restrictive
agreements and is designed to forestall potential domination of certain
economic sectors by powerful foreign interests. Agreements entered into by
foreign firms must be registered periodically if such agreements have effe·cts
upon domestic markets. Additionally, all firms established in the Philippines
must be obligated to inform this agency what enterprises, to the best of
their knowledge, are parties to a restrictive agreement. Registration of
dominant firms provides a convenient way of obtaining information about
the practices of such firms and of curbing restrictive practices.
     Agreements as to merger, joint venture and related forms of business
concentration must likewise be registered. Said registration might be an
effective way of mobilizing badly needed data in order to formulate a more
discerning public policy toward such arrangements.
      Registration of licenses and assignments of patent rights and techno-
logical knowhow must be effected through this agency. While patents are
themselves immune from the law against monopolies as the basis for lavrful
exercise of monopoly rights-and      patent licenses share that immunity as
means by which the patent is shared and thereby mitigated-numerous
antitrust proceedings have shown that violations of antitrust laws, and
arrangements inconsistent with the policy that underlines both these laws
and the patent laws, can be and often are built upon or camouflaged by
contractual arrangements about patents.58 If patent licenses and patent
assignments were valid only when recorded with an antitrust agency, the
ability of the government to detect and terminate such provisions of the
patent system should be substantially enhanced.
      The enforcement efforts by this antitrust agency must be geared towards
the prevention or obliteration of perceived pernicious effects of certain
restrictive acts on the competitive environment. Rather than undergo the
      57 Which may include horizontal agreements on prices, discounts or tcrms; vertical
collcctive agreements on prices, discounts, or terms; horizontal agreements to require
resale price maintenance; vertical agreements between a single supplier and a purchaser
as to resale prices; agreemnts as to aggregated rebates; agreements to limit output or
supply; agreements to allocate markets; agreements to restrict methods of production;
and agreements denying particular enterprises or classes of enterprises the opportunity
to buy or sell or limiting the number of distributors or sources of supply. In addition,
orders are applicable to monopolies; practices that tend to bring about monopolies;
practices that tend to bring about combinations in restraint of trade; refusal to sell;
unjustifiable exclusion from a trade association; sale under tying arrangements; payment
of excessive royalties or commission or license fees; and profiteering, black marketing
and hoarding. See C. D. EDWARDS,       AN INTERNATIONAL                    3
                                                            CoMPARISON, 58 (1975).
      58/bid. at 215; See also Bergsten, supra note 31, at 249.
usually cumbersome processes attendant to judicial or quasi-judicial deli-
berations, proceedings in this proposed antitmst agency must be chiefly
administrative in nature. Stringent application of antitrust norms should be
deemphasized through the adoption of a more flexible and pragmatic
approach in assessing the impact of economic activities on current or future
overall economic environment. The thmst of the analysis should be on the
effect of the arrangement rather than the intent. With this approach, the
implementation of antitmst policy will hinge mainly on the aspects of civil
liability and implementation which are principally preventive rather than
punitive. Consequently, this would obviate the use of criminal law p:-inc:iples
which hamper the prompt enforcement of antitrust and unfair trade practices
      Finally, the preventive approach in antitrust policy formulation will
encourage governments affected by mergers, joint ventures and related
forms of business concentration to fashion out procedures which will in-
clude collaboration between the home and host countries on antitrust
or home-country consultations with the host government concerning actions
being considered. 59 If this system of collaboration and mutual consultation
is achieved, the government's bargaining power will be considerably en-
hanced in its negotiation with prospective investors (most or whom are
based in countries with highly sophisticated antitrust legislations) for the
purpose of inducing foreign investment, and then harnessing them to host
country development needs. Moreover, jurisdictional irritants caused by
the extraterritorial reach of antitrust laws of other countries will be hope-
fully avoided.

Developments in the Field of Antitrust Policy Formulation
in the Philippines
     Studies conducted by the United Natior.s and its specialized agencies
have inspired a re-examination of Philippine antitrust policy vis-a-vis multi-
     59 See Bergsten, supra note 37. Also see E. W. KINTNERand M. R. JOELSON,AN
INTEIlNATIONAL   ANTITRUST   PRIMER,271 (1970). It has been proposed in this regard that
long-run efforts to create internationally agreed antitrust concepts and regulatory pro-
cedures should begin. As a practical matter, all offices and employees of multinationals
are invariably required to accomplish a "Statement of Policy on Antitrust Laws" em-
bodying compliance with and strict adherence to applicable .antitrust laws of home
     60The United Nations' initiative is traced back to ECOSOC Resolution 1721
(LIII) of July 1972 which led to the massive study by the Department of Social
Affairs of the United .Nations Secretariat entitled "Multinational Corporations in World
Development," ST/ECA/190, followed by the report of the Group of Eminent Persons
to study the impact of multinationals on the process of development, the implications
thereof on international relations, and the formulation of conclusions which might be
of help to governments in making national policy. The most recent development of
this work has been the establishment, on a continuing basis, of a commission on trans-
national corporations, with a supporting information and research center on transna-
tional corporations. Cf. ECOSOC Resolution E/RES/1913 (LVIII) (December 1974).
The U.N. Conference on Trade and Development (UNCTAD), in its third session in
national corporations particularly in the context of licensing agreements,
know-how licensing, and trademark licensing.
      Presidential Decree No. 1263 amended Republic Act No. 165 (Phil-
ippine Patent LaW)6t because certain. provisions thereof "have become ob-
solete and are inadequate to meet the demands of our primordial goal of
industrial and overall national economic development." Its ratio legis is
further explained in this tenor:
           In this period of heightened industrial activity and economic develop-
      ment in this country, the present patent system actually hinders rather than
      promotes industrial and economic development considering that our
      (present) laws merely protect rights but do not compel the patentees to
      do their share in the promotion of economic development by the working
      of the patent, either by the patentees or by willing--licensees. Patentees, it
      is observed, use their patents purely as licenses "to import to the exclusion
      of ethers, thus allowing virtual monopoly of trade. Taking advantage
      of this monopoly, these patentees import imported products-usually        im-
      portant ones like medicine, food and much-needed technological devices-
      made in their home countries and then sell these products in this country
      at excessive and abusive prices. This is in fact a universal practice which
      has been noted in conferences on the transfer of technology on the revision
      of the Paris Convention of Industrial Property, and even in the Report of
      the U.N. Group of Eminent Persons on the Impact of Multinational Cor-
      porations on Development lUld on International Relations. 62

      Noting that these restrictive practices have prevented the establish-
ment of many important new industries or trades in the Philippines which
could contribute to the development of the national economy and help
alleviate the unemployment problem, the Decree seeks to J;l:medy this· by
instituting measures for the regulation and supervision by the governmerit of
voluntary licensing agreements, and improving upon the previous system
of compulsory licensing. Also noteworthy are the provisions of Sec. 33-03
1972, adopted Resolution No. 73 (III) on restrictive trade practices an has devoted
much attention to the preparation of an international code of conduct on the transfer
of technology. A special committee reporting to UNCT AD's Trade and Development
Board has been established and this, in turn, convened an international group of experts
to help in the preparation of a draft code. See R. GOLDSCHEIDER,          1979 TECHNO.LOGY
MANAGEMENT        HANDBOOK,    41-43.
      6t While patent laws are not traditionally regarded as belonging to the congeries
of antitrust legislation, this subject merits special attention as it is a fertile source
of restrictive trade practices in a developing economy such as the Philippines.
     "62ElOplanatory Note to Pres. Decree No. 1263.
      63 Rule I. Definitions-Sec.     i(b). "Technology Transfer Arrangements" shall
refer to contracts or agreements entered into directly or indirectly with foreign com-
panies and/or foreign-owned companies, companies having as their principal or
accessory objective the transfer, assignment or licensing of technology or trademarks,
in the following manner:
              1. Transfer, assignment or licensing of the use or exploitation of
        patents (whether registered with the Phil. Patent Office or not) for inven-
        tions, improvements, industrial models and drawings;
              2. Licensing of the use or exploitation of trademarks;
              3. Furnishing of technical know-how and information by plans, diag-
         rams, models, instruction sheets, instructions, formulae, specifications, and
        training of personnel;
(on right of licensee) of this same decree which declares as null and void
certain restrictive provisions in voluntary licensing.
      The amendment of Republic Act No. 165 is certainly a significant step
toward the right direction. A recent survey64 of patent holdings in the
Philippines shows that 93% of all invention patents are held by foreign-
ers. The study however added that this figure will go down to about 75%
if utility model and design patents are included since a considerable number
of these models and patents are owned by Philippine nationals. Setting aside
for the moment the philosophical bases for the grant of patent rights and
the justification therefor, it has been conclusively determined that existing
patent systems have had limited contribution to the economic and tech-
nological development of developing countries, and that existing patent
systems seem to protect mostly import monopolies while at the same time
discouraging the technological development of domestic firms in developing
countries.6s In any event, the Decree is therefore aimed at reconciling the
often conflicting interests of the patentees in protecting the know-how
related to the patent, and the legitimate development goals of the country.
Moreover, it can play a useful defensive role in controlling abuses to
equitable technology transfers.
       Another recently promulgated law in the nature of technology control
legislation is Presidential Decree No. 152Q66 which created a Technology
Transfer Board "to help cope with abrupt and unforeseen changes in
worki economic conditions that hamper the stability and progress of indus-
trial development, and to maintain the responsiveness of the Philippine
industries to the needs of the economy and the people." The Board-com-
posed of representatives frem the N ationa] Economic and Development
Authority, Central Bank of the Philippines, National Science Development
Board, Technology Resource Center, Board of Investment, and Philippine
Patent Office under the chairmanship of the Minister of Industry or his
 representatives--has    the specific function of registering all technology
 transfer arrang(jlflents "after due evaluation of the technology transfer set
by the Board, subject to such sanctions the Board. and/or its member
 agencies may impose for the effective implementation of this requirement."
The Board has adopted certain screening procedures which follow certain
previously set guidelines to ensure that restrictive business practices are
controlled, alleviated or eliminated. Upon fulfillment of the pre-registration
requirements and the issuance of a certificate of registration, the Board is
duty-bound to monitor compliance with the conditions for registration of
technology transfer arrangements. But unlike the BOI, which is not vested
           4. Technical consultancy, services and assistance in whatever form it
      may be furnished.
    6S See Bergsten, supra note 31, at 260.          .     _                          .
    66 Rule V, Sec. 1(c) of this law enumerates restrictive business clauses which are
deemed prohibited.
with power to review conditions originally imposed on multinationals prior
to registration, the Technology Transfer Board is explicitly given the power
to cancel, after due investigation, the registration of the agreement ancI
require the surrender of the certificate of registration should it be estab-
lished that the terms and conditions of the technology transfer agreement
have been amended or modified without the approval and registration
thereof by the Board, or the terms and conditions stated in the certificate
of registration have been violated. The adoption by the Board of certain
screening procedures for the purpose of detecting potentially restrictive
business practices enhances to a considerable extent the bargaining power
of prospective local licensees who, principally because of their weaknesses
in technical experience, capital and perhaps sophistication, are no match
against the more powerful multinationals. This is indeed a welcome change
because it is in this area that the government, through its administrative
bodies, must play a more active role.67

     67 One author rightly observes that "as recently as ten years ago, mu1tin~tional
corporations were virtuaJly unrestrained in their dealings with enterprises in develop-
ing countries. Antitrust laws-which     must always be considered when licensing in
the U.S. and which had then just been introduced in the European Common Market-
were unknown in the less developed parts of the world. Enterprises in these countries,
including their governments, who are seeking new technology, were inexperie~ced.
and frequently naively overambitious, about the types of projects they could eff~ctlvely
handle. In this relatively free-wheeling atmosphere, deals were often made whIch are
unfavorable to the licensee, Of were at least ill-designated to succeed in the recipient
countries." See R. Goldscheider, supra, note 60 at 31.

      The first Philippine statute in the nature of antitrust legislation is
Act 3246 [Public Laws, Vol. 21 at 195] entitled "An Act to Prohibit
Monopolies and Combinations in Restraint of Trade." The American in-
fluence is immediately apparent in its provision for recovery of treble
damages in favor of any person injured in his business or property by
reason of the proscribed acts; and the provision empowering the court to
make or issue temporary restraining orders or prohibitions. (Section 4
authorizes the court to make or issce temporary restraining orders or pro-
hibitions. Section 6 allows of treble damages in favor of any person injured
in his business or property by reason of the forbidden acts.)
     Article 186 of the Revised Penal Code (R.P.C.) penalizes 1) combina-
tion in restraint of trade, 2) monopoly to restrain free competition in the
market and 3) importer's act prejudicial to lawful commerce [Public Act
No. 3815 (l930). See II A. PADILLA, RIMINAL          LAW, REVISEDPENAL
CODEANNOTATED,       446-447 (lIth Ed., 1976). Article 186 was taken from
Articles 543, 544 of Act 3247. Par. 3 of Article 186 was amended by
Rep. Act No. 1956].

Civil and Administrative
     There are special laws dealing with the problems inherent in com-
binations and monopolies. The Philippine Corporation Law (Secs. 13, 5-A)
imposes a quantit~tive limitation in equity participation among corporations
engaged in agricultural and mining. The newly enacted Corporation Code,
in Sec. 140 thereof, expressly empowers the Batasang Pambansa to set
maximum limits to stockholdings in corpo;:ations declared to be vested with
public interest belonging to individuals or groups of individuals related to
each other by consanguinity or affinity or by close business interests or
whenever it is necessary to achieve national objectives, prevent illegal
monopolies or combinations in restraint of trade, or to implement national
economic policies declared in laws, rules and regulations des!gned to promote
the general welfare and foster economic development.
     Article 28 of the new Civil Code of the Philippines gives a right of
action to persons who suffer damage as a result of acts constituting
unfair competition in agricultural, commercial or industrial enterprises or
in labor.
      Sec. 4(5) of Republic Act No. 5455 (Foreign Investment and Na-
tional Economy) requires non-Filipino firms to procure a written certificate
from the Board of Investment to the effect that "their entry will not pose
a clear and present danger of promoting monopolies or combinations in
restraint of trade." [See note 40, supra.]
     Republic Act No. 337, as amended, prescribes quantitative restrictions
in equity participation of persons engaged in the banking business [See
Sees. 12-B, 12-D].
      Republic Act No. 6124 [55 O. G., no. 32, 7344-A, August 10,
1971], the Price Fixing Law, prescribed maximum prices of essential
commodities to counteract egregious anticompetitive practices perpetuated
by some unscrupulous businessmen who took advantage of the economic
crisis in the early 70s and established eAiremely inflated prices of consumer
articles. The administrative body empowered to establish "fair, just and
reasonable" maximum prices for goods was the Price Control Council which
was created by Executive Order No. 249 (July 27, 1970).
     Executive Order No. 273 [67 O.G. 346, Jan. 18, 1971], creating
the "Presidential Oil Commission" and Republic Act No. 6173 (67 a.G.
at 3495, May 10, 1971), establishing the "Oil Industry Commission," were
designed to cushion the impact caused by spiralling prices of petroleum
products. These administrative bodies were given the power to set the
prices of petroleum products and take adequate steps to prevent monopolies
and combinations in restraint of trade in the petroleum industry.
      Republic Act No. 5186 (1968), also known as the Investment Incen-
tives Act, grants pereferential treatment and other benefits to enterprises
registered with the Board of Investment and operating in preferred areas.
Among the benefits granted to both pioneer as well as non-pioneer ventures
which are particularly relevant to this study are protection from the govern-
ment competition and protection from unfair or unnecessary import com-
petition. Equally important is the protection given to investors in a preferred
non-pioneer enterprise - as distinct from the enterprise itself - from in-
fringement of patents, trademarks, and other rights. A complementary
legislation is Republic Act No. 6135 (Export Incentives Act of 1971).
     The Fair Trade Board was created by Executive Order No. 286
 [45 O.G. 4234, October 18, 1949] to "synchronize, coordinate and
make more effective the activities of the various government agencies relating
to the adminstration and enforcement of the unfair competition and unfair
trade practices laws and regulations." The unfair trade practices sought
to be prosecuted were "cases of imitation, alteration and substitution of
lawful trademarks and tradenames, misbranding, mislabeling, fraudulent
designation of origin, false description, adulteration, fraudulent methods of
unfair competition and unethical trade practices."
      Executive Order No. 249 [66 O.G. 7344-A, July 27, 1970] amended
the aforementioned Executive Order No. 286 by reorganizing the Fair Trade
Board and vesting it with more power. Noting that increase in proportions
of the nefarious practices just mentioned above, and the need to eradicate
and suppress them, the Fair Trade Board was henceforth empowered "to
synchronize, coordinate and made more effective the activities of the various
government agencies relating to the administration and enforcement of the
laws and regulations governing unlawful importation and/or exportation,
unfair competition, unfair trade practices or deceptive acts or practices
in commerce and industry and laws against monopolies and combinations
in restraint of trade, such as collusion in price-fixing, entering into any
contract or conspiracy to prevent by artificial means free competition in
the market or by making other transactions prejudicial to lawful com-
merce." Moreover, the Board was given the duty "to take steps to prevent
and suppress monopolies, price-fixing agreements, boycotts, combinations
in restraint of trade, interlocking directorates and offices, fraudulent ad-
vertising, hoarding, misbranding, mislabeling, unfair methods of com-
pitition and all forms of unfair and deceptive acts or practices in commerce
and industry prohibited by existing laws." The Board likewise has the
power, "after termination of any investigation, to order any person, firm,
 association, partnership or corporation to cease and desist from practicing
or using an unfair trade methods, combinations in restraint of trade, price-
fixing agreements, boycotts, or deceptive or practices in commerce and
 industry, and refer the matter to the proper courts upon failure of such
 person, firm, association, partnership or corporation to comply with such
 order or orders."
       Special laws, basically in the area of deceptive and unfair practices,
 were enacted to cover most of these proscribed acts:
    - Act 3740 (1935) concerning misrepresentations through advertising
or misbranding of certain goods;
      - Rep. Act No. 71 (1946) requiring articles offered for public sale
to be displayed with appropriate tags or labels to indicate the price of each
article, which articles are to be sold uniformly and without discrimination
at the stated price;
     - Rep. Act No. 623 (1951), law on the use of marked containers to
identify the containers used in manufacturing, packing or seIling one's
product; to protect the right to the exclusive use of the same and to protect
the public from confusion or deception;
     - Rep. Act No. 1556 which gives protection to the consumer by re-
quiring the registration of any person, partnership, firm or corporation or
association engaged in the manufacture, importation, sale or distribution of
feeds or feeding stuffs;
      -=-Rep.Act No. 3452 (1962): "An Act to Adopt a Program to Sta-
bilize thePtice .of Palay, Rice and Corn, To Provide Incentives for Pro-
duction· and· to Create the Rice and Corn Administration to Implement the
Same and to Provide Funds Therefor;"
      - Comtn.onwealth Act No. 617 requires that all trading in riCe, palay,
not including the bearded and unthrushcd palay in straw and in bundles,
shall be conducted on the basis of the liter, the kilogram, the sack or
the ganta;
       - Rep. Act No. 4229 (1960) regulates the sale, dispensation and/or
distl'ibution of contr~ceptives, drugs and devices;
  , -'- Presidential Decree No. 280 authorizes the Food and Drug Ad-
ministration to mete penalty to erring drug establishment;
     - Rep. Act No. 5921 (1969) provides liability for a manufacturer,
importer or distributor of drugs who, among others, manufactures, pre-
pares, sells or administers any prescription, drug, pharmaceutical or poison
under any fraudulent name, direction, or pretense to adulterate any drug,
pharmaceutical, medicine, etc.;
     - Rep. Act No. 3720 (1963) insures safe and good quality supply
of food, drug and cosmetics and regulates the production, sale and traffic
of the same to protect the health of the people;
     --'- Act No. 3595 requires manufacturers, sellers, importers or offerors
of any galvanize iron, barbed wire or nails to conform to certain standards
of measures and identification;
     - Act No. 3073 regulates the sale of viruses, serums, toxins and
analogous products;
     -Act   No. 3526 regulates transactions involving paints;
     - Act No. 3091 (1923) penalizes sale or offer of adulterated or mis-
branded insecticide or fungicide;
     - Rep. Act No. 1929 (1957) prohibits sale of acetic acid in any form
in groceries and retail stores selling foodstuffs;
     - Commonwealth Act No. 560 (1940) provides for security against
fraud in case of sawn lumber offered for sale;
     - Rep. Act No. 428 (1950) penalizes any person knowingly possess-
ing, selling or distributing in any place and manner fish and other aquatic
animals, stupefied, disabled or killed by means of dynamite, or other
explosives or toxic substances;
    - Rep. Act No. 1071 (1954) prohibits sale of veterinary biologics
and medical preparations to the public by unregistered pharmacies or
drugstores, biological laboratories,        veterinary clinics and· government,
veterinary agencies;
     - Republic Act No. 1517 regulates collections, processing of human
blood and the establishment and operation of blood banks and blood
processing laboratories;
     - The Ministry Special Order No. 226, Series of 1979 (April lJ. 1979)
created in the Ministry of Commerce a Consumer Complaints Center-
composed of the Chief, Management Division, Firilincial and MaI1agement
Service of the Ministry of Trade, as chairman, and representatives from
Bureau of Domestic Trade, Philippine Bureau of Product StariClards,Phil-
ippine Patent Office, Price Stabilization Council and Trade Assistance
Center. Among the functions of the Center are "to receive and evaluate
complaints and inquiries from the general public and immediately: take
action thereon or refer the complaint/inquiry to the government: agency
concerned for appropriate action" and "recommend' measures to make
the implementation of consumer protection, price stabilizatidri;fair trade
and related laws more effective and meaningful;"
     - Executive Order No. 913 strengthens the rule-making and adjudi-
catory powers of the Minister of Trade and Industry to further proteCt
     - Letter of Instructions No. 1359 directs measures to prevent hoard-
ing, profiteering and price manipulation.

     Among the egaEtarian principles enshrined in the 1973 Philippine
Constitution are those directed towards the curbing of monopolies and
combinations in restraint of trade or unfair competition. Foremost of
these constitutional provisions is:
          The State shall promote social justice to ensure the dignity, welfare
     and security of all the people. Towards this end, the State shall regulate
     the acquisition, ownership, use, enjoyment and disposition· of private pro-
     perty, and equitably diffuse property ownership and profits. [Const., article
     II, section 6].

     The State shall likewise regulate or prohibit private monopolies when
the public interest so requires. No combinations in restraint of trade or
unfair competition shall be allowed" [Const., article XIV, section 2].
     This Bill is general and comprehensive both as to its nature and scope.
     The Bill's substantive provisions seek to prohibit and penalize all
contracts or agreements or conspiracies which would unreasonably restrain
trade or commerce such as price-fixing, market divisions, group boycotts, etc.
The Bill also seeks to prevent monopolizations or attempts to monopolize.
While the Bill does not prohibit a monopoly which is "thrust upon" a person
engaged in commerce by virtue of superior skill, technology, foresight,
industry or other objective factors, a violation occurs if such person acts
to preserve or exploit its dominance in a manner that is not the result of
such objective factors.
      The Bill likewise prohibits and penalizes the unjustified discriminatory
practice of certain unscrupulous persons in entering into contracts with
different persons similarly situated but under different contractual conditions.
This practice has been usually resorted to and availed of by those who are
dominant in a particular market and has anti-competitive effect. It is for
this reason why the Bill also prohibits and penalizes the so-called "tie-in"
      Under Section 6 of the proposed Bill, the undue concentration of
economic power in one single corporation is sought to be avoided. The fear
of a financial institution with vast capital resources dominating a particular
industry in which it heavily invests, led to the incorporation of some form
of antitrust provisions in the recently enacted universal banking laws.
While Section 7 of the proposed Bill serves another facility-of-competition
function, it also seeks to prevent undue concentration of economic power
through interlocking directorates.
     The section on unfair competition and false advertisement serves the
cause of consumerism.
       The scope of this Bill is as general and comprihensive as the nature
 of its substantive provisions. It applies to all persons, natural or juridical,
 who are engaged in commerce, from the ordinary sari-sari store in every
 neighborhood corner to the biggest corporations in high-technology indus-
tries. It applies to both domestic and foreign corporations where their conduct
 has substantial effect on Philippine Trade or commerce. Antitrust violations,
,even if committed abroad or outside the territorial jurisdiction of the Phil-
•ippines are and should be within our jurisdictional competence so long as
:such violations substantially affect our trade and commerce.
      Contrary to popular conception, the Philippines does have some form
of antitrust law. This antitmst legislation is contained in Articles 186, 187,
188 and 189 of the Revised Penal Code. The Code being penal in nature
and therefore requiring "proof beyond reasonable doubt," rarely has there
been any prosecution for antitrust violations, especially where the victim
of such violations is the impersonal Juan de la Cruz as Consumer. This Bill
therefore seeks to make civilly liable those who commit antitrust violations
where "mere preponderance of evidence" would be sufficient to impose civil
liability upon the violator. As a further incentive to the victim, this Bill
seeks to award to the victim damages threefold that actually sustained by
him. Further, to cover instances where the consuming public at large would
be the victim of an antitrust violation, the government may motu proprio
initiate its own civil suit against the violator. The government may likewise
motu proprio initiate its own civil suit for any violation of this Bill.

         Introduced by Assemblyman Soller, Minister Natividad,
         Assemblymen Baterina, Roman, Bello, Alinea (A.), Ortiz,
         Amante, Nunez, Royeca, Fider, Espina, and Quiambao

Be it enacted by the Batasang Pambansa in session assembled:
     SECTION1. It shall be the declared policy of the State to promote
free and fair competition, to stimulate the initiative of entrepreneurs,
to encourage business activities of enterprises, to heighten the level of
employment and labor's real income, and thereby to promote the democratic
and wholesome development of the national economy as well as to assure
the interests of consumers in general.
     SEC.2. Every contract or agreement, conspiracy or combination in the
form of tmst or otherwise, which unreasonably restrains trade or commerce,
whether domestic or foreign, is hereby declared to be illegal. For this
purpose, the following, though not exclusive, shall be considered per se
violations of this Section:
      (a) An agreement between competitors enga.ged in commerce which
directly or indirectly fixes the purchase or selling price of any commodity;
     (b) An agreement between competitors engaged in commerce to limit
production or control supply; and
     (c) An agreement between competitors engaged in commerce to allocate
customers or to divide markets among themselves or to share sources of
      Nothing herein contained shall· render illegal contracts or agreements
prescribing minimum prices for the resale of a commodity which bears the
trade mark, brand, or name of the producer or distributor of such com-
modities of the same general class produced or distributed by others:
Provided, That this shall not make lawful any contract or agreement pro-
viding for the establishment or maintenance of minimum resale prices on
any commodity between manufacturers, or between producers, or between
wholesalers, or between brokers, or between retailers, or between persons,
finns, or corporations in competition with each other.
     SEC. 3. No person shall monopolize or attempt to monopolize, or
combine or conspire with any other person any part of trade or commerce,
whether domestic or foreign.
      SEC. 4. It shall be unlawful for any person engaged in commerce, to
discriminate in price or other contractual· conditions between different pur-
chasers of commodities of like grade and quality, where the effect of such
discrimination may be substantially to lessen competition or tend to create
 a monopoly: Provided, That nothing herein contained shall prevent price
differentials which make only due allowances for differences in the cost of
manufacture, sale, or delivery resulting from the differing methods or quan-
tities in which such commodities are sold or delivered: Provided, further,
That nothing herein contained shall prevent persons engaged in commerce
from selecting their own customers in bona fide transactions and not in re-
straint of trade: Provided, further, That nothing herein contained shall
prevent price changes from time to time where such changes are in response
to changing conditions of the market, such as but not limited to actual or
imminent deterioration of perishable goods, obsolescence, or forced sales
under court process.
      SEC. 5. It shall be unlawful for any person engaged in commerce to
sell or lease goods, wares, merchandise, machinery, supplies or other com-
modities on the condition that the purchaser or lessee shall not use or deal
in the goods, wares, merchandise, machinery, supplies or other commodities
of a competitor of the seller or lessor, where the effect of such sale or lease
is to substantially lessen competition or tend to create a monopoly.
      It shall likewise be unlawful for any person engaged in commerce to
sell or lease goods, wares, merchandise, machinery, supplies or other com~
modities on the condition that the purchaser or lessee shall also acquire
other goods, wares, merchandise, machinery, supplies or other commodities
of the same seller or lessor which. commodities, either by their nature or
according to commercial usage, have no substantive relation or connection
with the subject of the original sale or lease.
     SEC. 6. No corporation engaged in commerce shall acquire, directly
or indirectly, the whole or any part of the capital stock or the whole or
any part of the assets of another. corporation where the effect of such an
acquisition may be substantially to lessen competition or tend to crea:e a
      This section shall not apply to corporations purchasing such stock
solely for investment and not using the same, by voting or otherwise, to
bring about the substantial lessening of competition. Nor shall anything
contained in this section prevent a corporation from causing the formation
of subsidiary corporations for the actual carrying on of their immediate
lawful business, when the effect of such formation is not to substantially
lessen competition.
     This section shall also be inapplicable to mergers or consolidations of
financial institutions under the system of universal banking where such
merger or consolidation is approved by the Monetary Board of the Central
Bank. This section shall however be applicable to the investments of a
universal bank in both allied and non-allied undertaking where the effect
of such investments is to substantially lessen competition or tend to create
a monopoly.      .
      SEC. 7. No person at the same time shall be a director in any two or
more corporations, anyone of which has capital, surplus, and undivided
profits aggregating more than PESOS: TEN MILLION (PlO,OOO,OOO.OO),
other than financial institutions, if such corporations are or shall have been
theretofore, by virtue of their business and location of operation, competitors,
so that the elimination of competition by agreement between them would
constitute a violation of any of the provisions of this Act.
     No person may serve as director, officer, or .employee of two or more
financial institutions, except that the Monetary Board of the Central Bank
may by regulation permit such service as a director, officer, or employee of
not more than one other such financial institution.
     SEC. 8. Unfair methods of competition in commerce, and unfair or
deceptive acts or practices in commerce are declared illegal.
     The dissemination or the causing to be disseminated of any false adver~
tisement shall be unfair or deceptive act or practice in commerce within the
meaning of this Section. A "false advertisement" is one which is misleading
in a material respect. In determining whether any advertisement is mislead-
ing, there shall be taken into account not only representations made or
suggested by statement, word, design, device, sound, or any combination
thereof, but also the extent· to which the advertisement fails to reveal facts
material in the light of such representations with respect to consequences
which may result from the use of the commodity to which the advertisement
relates under the conditions prescribed in said advertisement, or under such
conditions as are customary or usual.
     SEC. 9. Labor organizations and unions which are instituted for the
purpose of mutual help among its members, not having capital stock or
conducted for profit, shall not be construed to be illegal combinations or
conspiracies in restraint of trade.
     SEC. 10. Any person who shall be injured in his business or property
by reason of the violations of this Act may sue therefore in the Court of
First Instance irrespective of the amount involved, but subject to the
ordinary rules on venue, and shall recover threefold the damages sustained
by him, and the cost of suit, including attorney's fee.
     Whenever the public interest or national security so requires, the
Ministry of Justice and the Office of tile Solicitor General are hereby
empowered and authorized to initiate and prosecute civil suits to restrain
and prevent violations of this Act, or to intervene in any civil suit pending
between private parties for the effective enforcement of any Section of
this Act.
     The civil suit filed by a private party or by the Government shall
proceed independently of any criminal action which may be brought under
the succeeding Section.
     The Ministry of Justice is hereby further authorized to issue rules and
regulations to implement any Section of this Act.
      SEC. 11. Any person violating any section of this Act shall be punished
by the penalty of" prision mayor or a fine ranging from five hundred to
fifty thousand pesos, or both.
      Whenever any of the offenses is committed by a corporation or asso-
ciation, the officer or employee immediately responsible, the president and
each one of the directors or managers of said corporation or association
or its agent or representative in tl,1ePhilippines in case of a foreign corpora-
tion or association, who shall have knowingly permitted or failed to prevent
the commission of such offenses, shall be held liable as principals thereof.
     Any property possessed under any contract or by any combination
mentioned in the preceding Sections, and being the subject thereof, shall
be forfeited to the Government of the Philippines.
     SEC. 12. Such provisions of the Revised Penal Code which are clearly
repugnant and inconsistent with any of the provisions of this Act are hereby
repealed and amended, otherwise, they shall be in full force and effect.
     SEC. 13. This Act shall take effect upon its approval.
Source: S.E.C.-Business Day
        Top 1000 Corporations                                       (1983)

                                                 MULTINATIONALS                         AMONG THE TOP 1000
                                                                         (Figures in th<IUsand pesos)

                                                           GROSS     REVENUE                  NET INCOME
                                                          1982         1981               1982       1981
Caltex (Phils.). Inc.                                7,100,063        7,068.185         31,502     209;121       Celtex Petroleum     Co.                            American
Mobil Oil Phils., Inc.·                              4.soa,720        5,107,882         47,386       38,400      Mobil Oil Co.                                       American
Citibenk. N .A.                                      2,108,124        1,817,685        257,030       68.954      Citibank,  N. A.                                    American
Pepsi'Cola Bottling Co. of the Phils., Inc.          1,189.737        1,480,546     11.062,6161    1136.717)     PepsiCo, 1 nc.                                      Americafl
a,rique Nation.le de Paris                             955,1'"          767,477         15,711         7,268     Blnque Nationale      de Paris                      French

Phil. Amerie.n    Life Ins, Co.                          950.219         796,572       189.458      145,811      Americen    Life Insurance    Co.                   Amerkan
Phil. Refining'Co.,   Inc.                               947,839         824,882        38,729        26,121     Mavibel N. V.                                       Dutch
Philippine Packing Corp,                                 947,732         832,847        97,899        39.794     R. J. Reynolds                                      Amerieen
Colgate-Palmolive     Phil •. , Inc.                     881.220         854.428        92,437     109,600       Colgate P,.lmolive Co.                              American
Procter and Gamble Phil. Mfg. Corp.                      866.705         795,553        12.552        11,048     P1'octer & Gamble Co.                               American

 Dole Philippines. Inc.                                  857,192         746.707        10,382         5,438     Castle & COOke                                      American
 Cam.tion    Philippine,; Inc.                           623,375         560,777            297       11,464     Carnation   Co.                                     AmeriC8n
 Bank of America NT & SA                                 606.650         625,858            4
                                                                                         2 •. 14      50.645     BlInk of America                                    American
 Ford Philippines. Inc.                                  602,908         464.058         3,419       146,711'    Ford Motor Co.                                      American
 MBnufaetuf&l'1 Hanover Trust Co.                        576,685         578,532        32,258        25.611     Manufacturers    Hanover     Trust   Co.            American

                                                         575,193         595.041        129,257)      tA7.498)   General Motor. 0veIwI. (60%)                         American
                                                                                                                 lsuzu Motors Corp. (4m&.1                            .10•••••••
Philippine Geothe~maI.lnc.                               570.778         399,818       170,;39       120.743     Union Oi(cO.                                        American
AdYal'\C8d Micro Devices (Phil,J,lnc.                    564.152         "487,288       17,072        29.984     Advanced    Micro Devices. Inc.                     American
Union Carbide Phils.:lnc.                                545.407         470,697        52.481        37.051     Union Carbide Corp.                                 American
Texas Instrument.  (Phils.), Inc.                        511 ,Q49        437,334        13,762        22.218     Texas Instruments                                   American

Philippine Sinter Corp.                                  480,358         478,902        21,463        16,257     K8W8l8ki Steel CorP.                                Japanese
C.lifornia Manufacturing       Co., Inc.                 466,398         375.939        28.865        25,191     CPC Intentational  Co •• Inc.                       American
Chlmal Bank                                              417,397         337,531        22,728        13,118     Chemical Bank                                       American
Goodyear Tir. &. Rubber        Co. (Phi Is",   The       398.612         336,416        59,279        36.950     Goodyear Tire & Rubber Co.                          American
L10Yds Bank lntlrnltional,        ltd.                   384,143         302,471        14,825        11,494     lIoyds Bank International,    Ltd.                  American

Barclay. Bank InternatjOMI. Ltd.                         374,378         325.414         5,140         6,291     Barclay. Bank International,         Ltd.           British
link of Nova Scotia. The                                 349,102         260,509        15,576        12,573     Bank of Nova Scotia                                 canadian
~nk of Tokyo, Ltd., The                                  348.153         317,400         3,787         '3,453    Bank of Tokvo.   Ltd.                               Japanese
Johnson &: Johnson    (Phils.tlne.                       337,190         286,842        28.869        27.971     Johnson &: Johnson                                  American
a.a.e   Manhattan  Bank, N. A .• The                     333,997         312,928        18.500)        5,563     The Chase Manhattan     Bank                        American

Hong Kong and Shanghai           Banking   Corp .• The   309P73          296,589        39.593        47,105     Hong Kong & Shanghai Banking                Corp.    British
IBM Philt[)pines, Inc.                                   295,165         225,139        37,356        20,131     IBM Wond TradeArrteriC81                             American
Societe Generale                                         285,313         262,190         5,553         7,303     Societe Generale                                     French

Amoco Philippines      Petroleum     Co.                 266,835          58,398         8,446       137.7051    Amoco Production     Co,                            American
Crp.dit l yonnais                                        265,835                         7,051                   Credit Lyonnais                                     French
KimberlY-Clark    Philippines,    Inc.                   255,648         227.954       2M41          24,400      Kimberly Clark Corp.                                American
Wyeth..suaco    Laboratories,    Inc.                    255.009         210,489       41,202        35,706      Wyeth International.  Ltd.                          American
Singer Sewing Machine Co.                                253.737         265.430         6.428        3.915      Singer sewing MKhine Co.                            American

Pilipinas Kao, Inc.                                      233.541        227.001         13,576        10.327     Keo Soap Co .• Ltd.                                 Japanese
Phimc:o Industries.  Inc.                                231 $)27       203.696         23,144        35.111     Svenska Taendsticks                                 Swiss
 Henil Development    Co •• Lid.                         225.770        481,914          5,475       157,4451    Hanil Dev't Co .• Ltd.                              Korean
Jardine Davies. Inc.                                     224.061        248.684          1.553        (3,213)    Jardine M8th~n                                      British
American   Home Assurance Co. (AIU·IJII                  220.551        200,671          5.325         4,033     American   Home Assurance                           American

Hooven Comalco Industrin,          Inc.                  206,013         184,302        125.7731      f36,4431   Comalco, Ltd,                                       Australian
CoCa.cola    Export Corp.                                198.469         154,317         52,452        41.392    The Coca-Cola Export Corp.                          American
Shell Distribution  Co .. Inc.                           198.340         248.668          9.333        13.667    Shell Petroleum    Co .• Ltd.                       British
European    Asian Sank AG                                198,297         237,761          2,987            588   Deutsche Bank (60%)                                 German
                                                                                                                 Credltanstah    Bankverein    (22%1                 Austrian
                                                                                                                 Societe General de Banque 19%)                      Belgian
                                                                                                                 Amsterdam      Rotterdam     Bank    19%)           Dutch

Sea·Lend Service, Inc.                                   191.614         166,768          6,727       116,6301   Sea Land Industries,      Inc.                      American
Philippine American Gen. Ins. Co., Inc.                  190.679         170,541         1'7,753       11.872    American     Life Insurance    Co.                  American
Kodak Philippines.    Ltd.                               189.581         185,945             746        3.814    Kodak                                               American
Sun Ufe Assurance Co. of Carwdl                          187.938         143.564          2,936        10,569    Sun Life Assurance       Co. of Canada              Canadian
Philippines-Cities  Service, Inc.                        185.682         126,371        f55.074)           258   Phil. Cities Service. Inc.                          American
"nque      Indosuez                                      115,266         178,4'4          ',361        10.011    CompagQie      Financiere de Suez                   French
                                                      MULTINATIONALS AMONG THE TOP 1000
                                                                                  (Figures in thousand            pesc;>s)

                                                                     GROSS REVENUE             NET INCOME
        NAME ·OF LOCAL           FIRM
                                                                       1982      198'          1982    1981                  NAME OF FOREIGN               FIRM                  NATIONALITY

Mattel,Philippines,   Inc.                                           185,231    144,861          780 13,948             Mattfll; Inc.                                                 Arrierican
American Presid«tnt Lines. Ine.                                      184.893    115,090         919   .. 713            Ar:nericen Pres. Lines                                        America.,
Abbott Lfboratories                                                  181,230     144,491     13.921   3,800             Abbott Laboratories                                           American
Scott Papet Philippines,   Inc.                                      180.257    203.961     112,7581 12,499             SCOtt Paper Co.                                               Arnftan
Br(e, Philippines, Inc.                                              179.24"     154,113      4,834   2,705             Bay.,. AG                                                     GermeR
$ime Darby International     Tire Co •• Inc.                         178,545    310,559      16,427  29,477             Sime: Darby                                                   Malaysian

SKurit)'   Pacific National Bank                                     176,398    151,313      11,686      10.200         Securitv Pacific Corp.                                       American
Chllrtered   Bank                                                    115,177    139,270      24,78"      20,809         The Chartered    Bank                                        American
American EXPfess Internetional             Banking           Corp.   165,707    131,768       7,471       5,781         American   Express International                             American
B-nk of California,    N. A.                                         159,367    145,074       5,095       4,522         Bank of California                                           American
Rainier National Bank                                                156.231     76,147       9.423       5,017         Rainier National Bank                                        American

 L•••• S"trauss IPhils.t Inc.                                        156,204    155,841      24,261      20,021         Levi Strauss Co.                                              American
 TermiNillnsta"ations,      Inc.                                     156,189     41,695     116.591      29,390         Terminal Installations                                        Liberian
 Pepsi.cola    Far East TradB Dev'tCa             •• lnc.            152,229    221.170       19,4311      12551        PepsiCo, Inc.                                                 American
 Bankar. Trust Co.                                                   150,145    188,889        9,678     12,657         Bankers Trust & Co.                                           American
 Pfizer. Inc.                                                        146,811    143.575       8,303      12.011         Pfizer, Inc.                                                  American

Triumph     Internatio~I(Phils.I,          Inc.                      146,275    157,678       4,453      2,473          Triumph  International       (Phils.),     Inc.              Swiss
Exxon Chemical Eastem, Ine.                                          141,184    134.159        (669)     1,077          Exxon Chemical                                               American
Kratt Foods, Inc. (Phil • .!                                         140,624    109,804       9,644      7,129          General Foods, Inc.                                          American
Beautifont,    Inc.                                                  135,772    109,887      24,788     14.234          AVOn Products                                                American
Motorola Phils .• Inc.                                               135,522    119,151      14,036     20,689          Motorola International       Dev't       Corp.               American

FairChild Semiconductor      (Hong          Kong),          Ltd.     135.218    102.191      16,6881   7,827            Fairchild Semiconductor       (Hong Kongl,        Ltd.       British
Crocker National Bank                                                129,014      83,670      2,360    2,528            Crocker National Corp.                                       American
Philips Electrical   Lamps. Inc.                                     128,324    112,332       4,_      4,140            NVPhilips    Gloielampenfabrieken                            Outch
Philippine   Explosives Corp.                                        126,344     123,066        331    5.437            Imperial Chemical Industries,      Ltd.                      British
Ensite. Ltd.                                                         123,845     157,851     15,248) 117,443)           Ensite, Ltd.                                                 Canadian
                                                                                                                        Ford Motors                                                  American
Intel Philippines Mfg., Inc.                                         121.770    101.196      16,8871      3,621         Intel Corp.                                                  American
General Electric Phils~ Inc.                                         118,851    126,273     19.7.10      14,411         General Efectric                                             American
Oata General Phils .• Inc.                                           116,718     117,358      3,703      10,217         Oata General Corp.                                           American
Biophil, Inc.                                                        116,438     136,856      1,753        15031        Kanegafuchi   Chemical Industry Co. (SO")                    Japanese
                                                                                                                        Takeda Chemical Industries,    Ltd. 130%)                    Japanese
                                                                                                                        Mitsui aCe •• Ltd. (10")                                     Japanese
Ciba.(;eigv    (PhilsJ.   hic.                                       116.161      99,800        291         992         Ciba Geigy, ltd.                                             Swiss

TMX Philippines,       Inc.                                          115,600    122,804     (15,367) 119,8411           TMX, Ltd.                                                    Bermudian
Borden International        Phils., Inc.                             114.033    130.174      10,500    8,204            Inmont Corp.                                                 Americor.    Bank of Chicago                                   110,321    103,956      11,1731      88            First National Bank of Chicago                               American
First Interstate    Bank of California                               108,545     90-,142      9;328-     '0,759         First Interstate Bank of California                          American
Compaftia      General de Tab.cas      de Filipin.                   108,321    122.179     10,663       11.839         Compai'iia General de T abacos                               Spanish

AHS/Phils.,   Inc.                                                   106,262      85,416      3_          1,118         American      Hospital SuPPlY Corp.                          American
Hoechst Far East Marketing Corp.                                     108,211      91,725        130         265         HoccOst AG                                                   German
International    Harves'ter Macleod. InC.                            107,790    '-",415       5.129       5.585         International    Harvester Co.                               American
Bank of Credit a-Commerce        Int'J «(}verseas.                   10fi.368      13.424     2,825        14371        Bank of Crodit & Commerce        International               A".b
Allied Thread Co •• Inc.                                             105,556     108.700         32      (29,545)       Tootal, Ltd.          (7&4")                                 British

Pakistan JnternationaJAirtines Corp.                                 105,134     84,599      52.898      37.159         Pakistan International Airlines Corp.                        Pakistani
Roche (Phils.), Inc.                                                  98,244     84,897       5.808       2,796         Sapec Co., ltd., Pluto S. A.                                 Swiss
Orient Leaf Tobacco Co., Inc:.                                        96,976     96,493         335       1.756         Universal Leaf Tobacco Co., Ine.                             American
Meed Johnson     (PhilsJ, Inc.                                        96,798     61,818      21.318   11,196)           Bristol Mvers Co.                                            American
Ricoh Watch Phils., Inc.                                             95,267     161,845     125,7161 120,753)           Ricoh Watch Co., Ltd.                                        Japan •••
Uneaster    Phils .• Inc.                                            84,840      71.762       2,265    1,390           Lancaster  Leaf Tobacco Co., Inc.                            Americ.n
Winthrop-Stearns.      Inc.                                          84,236      81,453       9,777   8.111            Winthrop  Stearns. Inc.                                      American
Philip, Components        (Phils.), Inc.                             88,926       9.307       3,8n       200           NV Philips Gloielampenfabrieken                              Dutch
3M Phils., Inc.                                                      87,341     85,914       6,087       5,454         Minnesota  Mining Mfg. Co.                                   American
Gelmart Industries      Phils .• Inc.                                85._        85.325        12381       314         Gelmert Industries,    Inc.                                  American
China Airlines, Ltd.                                                 85,17~      61,191     72.156      51.396         China Airlines                                               Chinese

E. A. Squibb & Sons Phils. Corp.                                      84,849     73,819       2.530      1,310         E, R. Squibb & Sons. Inc.                                     AmeriQn
S. C. Johnson & Son, Inc.                                             84,884     76,578       7,160      6,129         S. C. Johnson & Son, Ine.                                     American
Columbien    Carbon Phlls., Inc.                                      84,100     70,274       9,679      4,142         Columbian    International  Chemical.                         American
Ari. (Phi1sJ. Inc.                                                    84,161     81.691      11,9301       580         ConsolidalPd    Foods Corp.                                   American
Wriglev Phils .• Inc.                                                82,948       83,811     (2,1271      13041        William Wrigley Co.                                           American
                                              MULTINATIONALS AMONG THE TOP 1000
                                                                 (Figures in thousand pesos)

                                                   GROSS REVENUE          NET INCOME
     NAME OF LOCAL             FIRM                 1982    1981         1982     1981            NAME    OF FOREIGN        FIRM               NATIONALITY

Boehringer Ingelheim (Phils.l. Inc.                79,140   sa,098     11,431       6,663     Boehringer Ingelheim International GmbH             German
Gillette (Phils.!, Inc.                            78.643   58,273      5.819       1,510     Gillette Co.                                        American
Union Insurance Society of Canton,        Ltd.     76,614   81,854       6,964      6.301     Guardian Royal Exchange                             British
Gold-Zack Phils .• lnc.                            76,217   71,200       3,115      4,131     Gold Zack Werke. German Dav't Bank                  German

Wander (Phils.!. Inc.                              75.356   38,994      3.335       1,659     Glasa, Ltd.                                          Swiss
Fireman's Fund Insurance Co.                       75.28t   67,120      7,203       6,067     Fireman's Fund Insurance Co.                         American
lubrizolFar    East, Inc.                          14,695   77,128      5,590       6.345     Lubrizol International,    Inc.                      American
Gralier International,    Inc.                     n,5OO    64,731      6,646       8.192     GroHer International                                 American
Westinghouse Int'I Projects Co.                    71,579   47,975      7,603       4;851     Westinghouse   International    Projects   Co.       American

Slgnetks Filip'mas Corp.                           70,890   64,857      (5,544)     12.9491   SigneticS Corp.                                      American
Smith Kline & French Overseas Co.                  70.568   50,540      9,619       15,0361   Smith Kline & French Overseas Co.                    American
Rohm and Haas Phils .• Inc.                        68,699   64,983       5,174      3,026     Rohm & Haas Co.                                      American
Lincoln Phil. Life Insurance Co., Inc.             68.186   57,563       8,886       7,595    Lombard Ins. Co., Ltd. (60%)                         American
                                                                                              Jardine Davies, Inc. 140%)
Cyanamid   Phils .• Inc.                           68,064   65,144      4.562        9.540    American Cyanamid Co.                                American

Keppel Phil,. Shipyard. hie.                       67,159    51.652      2,402         551    Keppel Shipyard, Ltd.                               Singapore
GTE Directories Corp.                              66.371    53,469     16,439      13.og6    GTE Directories Corp.                               American
Edward Keller (Phils.), Inc.                       63,930    47.788           84        323   Cargill, Inc.                                       American
Ault & Wiberg Co. (Far East). The                 63,733     60,957       5,775      4.738    Inmorl't Corp.                                      American
Getz Corp. Phils .• Inc., The                      62.764   103,832    (35.045)    (31,240)   Marmon Group                                        American

Eli Lilly (Phils.l. Inc.                           62,763   55,681      6,398      7.122      Eli Lilly SA                                         Swiss
Richardson-Vicks     Corp ..                       62,595   85,743      5,567      12,933     Richardson Merrel. Inc.                              American
Telefunken Semiconductor         IPhils.!. Inc.    59.778    49,228      2,405        150      AEG Telefunken   International                      German
General Foods Phils., Inc.                         59,539   39.106      8,201        2.485    General Foods Corp.                                  American
PepsiCo, Inc.                                      57,918     9,062   (63,6081       5.218    PepsiCo, Inc.                                        American

Astra Pharmaceutical     (Phils.!, Inc.            57,852   27,353      7,199      f1.1121    AB Astra                                             Swedish
Dart fPhils.), Inc.                                55,379   45,339       3,490       2.890    Dart Industries, Inc.                                American
Manufacturers    life Insurance Co., The           55.062   47,281       7,043       3,288    Manufacturers    Life Ins. Co., Inc.                 American
.Aura Laboratories,   Inc.                         54,590   57,493       2,417       7,026    Manila Mfg. Co. (was of Avonl                        American
New Hampshire Ins. Cu.                             54,566    53.331      1,272       1,306

Tabacalera Insurance Co., Inc.                     54.115   53.331        1,064      1,160
Allied Guarantee Ins. Co., Inc.                    53,105   50,961       1,499         856    Jardine Davies                                       British
Singer Industries, Phils .. Inc.                   51.085   44,847          432     11,6081   Singer International Securities Co.                  American
New India Assurance Co .• Ltd .• The               49,165    51,381     11,9911      1,114    India Assurance Co., Ltd.                            Indian
Commercial Union Assurance Co., Ltd                49.989   45,546      4,448        1,356    Commercial Union Assurance Co., Ltd.                 British

Phoenix Assurance Public Ltd. Co.                 49,842    42.241       4,378        655     Phoenix Insurance Co .• Ltd.                        British
NCA Corp. (Phils.)                                 48,566   51.170      (2,9341        902     NCA Corp.                                          American
International Bank of SingapOnJ, Ltc!              48,403   76.676         359      3,218      International Bank of SingaporP-. Ltd.             Singaporean
Schering Corp. IPhilsJ, Inc.                       47,805   43,564       5,437      5,242      Schering Overseas, Ltd.                            America:"
Upjohn, Inc.                                       47,803   43.037           10     1,237      Upjohn Co.                                         American

Bristol-Myers {Manila), Inc.                       46,817    36,016    12,545      10,687     Bristol Myers Co.
Philips Industrial Dev't. Inc.                     46.180   34,027       1,734      1.053     NV Philips Gloielampenfabrieken                      Dutch
Burroughs. Ltd.                                    46.084   44.224      4,855       5.770     Burroughs, Ltd.                                      American
Bristol Laboratories  (Phils.), Inc.               46.024   47.50'     12.367      13,832     Bristol Laboratories International                   American
Hoechst Phils., Inc.                               45,840   46;            31'      1.122     Ho.chst AG                                           German

Jardine Nell Corp.                                44,483    54,779     (1,5871     (3,227)    Jardine Davies                                      British
Du Pont Far East, Inc.                            42,845    43,854          156     2,663     Du Pont Co.                                         American
Home Insurance Co • ;rhe                          41,362    37,046       5,654      4,082     Home    Insurance Co.                               American
W. A. Grace (Phils.!. Inc.                        40,621    43,369       3,038      4.707     W. R. Grace & Co.                                   American
Spicer (Phils.l Mfg., Inc.                        40.544    36,352      13,0841        366     Dana Corp.

insurance Co, of North America                     40,346   41.446       1,754      3,111     Insurance Co. of North     America                  American
Monsanto Phils., Inc.                              40.280   38,690      (1,5911        179    Monsanto Co.                                        American
Atlas Copco (Phils.J. Inc.                         39,203   45,382           88        845    Atlas Copeo A B                                     Swedish
Sandoz (Phils.l, Inc.                              38,220   36,393         684      3,504     Sandoz,Ltd.
A. H. Robins {Phils.l Co., Inc.                    36,632   27/374       6,692      5.109                                                          Swist
HOW COMPETITORS                                                       COMPARE
               il.fA1JlLE II                                   NElSAHS             GROSS REVENUE          NET INCOME              TOTAL ASSETS           PAID·UP CAPll Al
                                                                 IPOOOI                    IPOOOI            (PODOl                 IP_                        IPOOOl
                  INOUSTRY/CORPORATION                      'IIU                    1112                 1112       in,          'Ill                     ,nz      1911
                                                                         '"'                   '"'                                        In'

•••••• Production                                          750 •••• &81.&'0        m.S4I   80'.734        2'.854       2.334    583,190  490.390         111.3&3 11_,461
    Tllgum AgricultunIH)ev't Co., Inll..                   301.027  216,459        307.826 219.576         3,779      14601     290,098   2SA,791         65,500  65,500
    DaviD Fruits Corp.                                     231,929  198,860        232,680 '99,607         2,419      19911      79,328   69.516          13.903  10,000
    Twin Rivers PI.otltion, loe.                            63.117   46.488         63.874   47.151          741     13,5411     34.037   30.560          11,&92 11.682
    Guihinll Agricultural & Owt Corp,                       ~7,9'9   66,795         58.SA8 67.079            422    12,860       55,408    61,321         13,200  13.200
       AMS FerminllCorp.                                    54.0&16 40.164         54.4'8    40,265         2,225     13,1011      &8,36& «.518            9,600   9,601
   . F,rminglown Agro-DlVlloptfl" Inc.                      42,196    27,844       42.224    28.056      '2,279     12,4331      56,655   19.684           4,478   4,478

"'rana P,oduction,illcludi ••• MlIICIft40       S••••     lcial."      F••.•
   r.rlat Orvtlopmtnt Corp,                                  59.011     69,574       71,474    76.235    17,9111     1.053       240.569     214,109       9,280        9,280

Aericultunl       Crop •• , •••   .c.
       N •• tf,rm',lne.                                     47.«0       38.988      47,505      39.054     (9581      15551       60,025       53,987      4,583       4,583


CHlmtrejal      (Offshore) Fishinl Usi~1V•••• '"           492.787     406,110\    491.137   432.772    131.1121 111.1321 511.041            445.127     '62.231      154,231
       Fnb'1I1 Fishing Corp,                               154,707     '3'.405     156,037    135.684      2,462      528    SA.o53           62.547       13,500      13.500
       RU Fishing Corp.                                    107,90&        95,053    107.905     95,053       2,875    3.091 43,«3             30.615        8.lJO(J     4,000
       Mar Fishing Co., Inc.                                99.512        31,715      99.512 31.715    128.5211 115.1&31    281,307           230,976      75,000      75,000
       F,.b.1 Fishing & lee P\, ••t Corp.                   97.391       90,977     97.4'9    90,977       16851   14151    84,032             SA,&99      33,837      29.837
       F1Jl MartinuFishinll Corp"                           33,272        67,45\    37,964    99,343     17,2431 16.1711     45,206            56.300      31,894      31,894

   M'SIlI.ung S.klh.n,         Inc.                         41,026      35,44'      42.754      37.435   17,6361 14,2941         90.4&7       63.900      25,000       9,650

LQIi •• O,. •.•tian.                                       351.487     312,218     3&9.399 32','95       18;tU1 IID.51l4l  547,523      319.053     Z34,093 '3,5Z1
   Industrial Timber Corp,                                  73,147       59.«9        77.164 63,009           320      193  87,002       79.076       8,000     8,000
   Findlty MiII.r Timber Ca., The                           63,198      88.562      63,703   90,213       11,5951 110,1321    84,970       87,865     3,354     3,354
  N.~dico, Inc.                                             62,230      45,343      62,288   45,416          339    13221    1S,263      28.040       8,583     8,583
  Sutig.o Dl\lllapmlnt Corp.                                59,771      23.209      63,725   24.301      17,1151 11,4281    220,SAO       &0,382 190,626 40,061
  M & S Co., Inc.                                           55,890       56.114       58.250    59,162       11,2961 3,104      105,661      133.432 17,849 17,849
   Industries ol\l't Carp.                                  «,271       39,594      44,271   39,594         13261 11.9191      32,997       30,258        5.681 5,681

e.ttli    R.isin., including Milk " •• Htio.
       YKR Corp.                                            61,363      34,172      61,363     34,172     1.119      (69t1       57.617       48.469       2,000        2,000
Hitl    A.ising
       MonttrlY f..rm.Corp.                                229.236     l&a,192     231,487    155,334      9.190      2.720        253.976     216.711    44,929      37.440

EIKtriGlI IInd Work lit Site
of Canstnu:tian                                            307,141     221,995     333,402    244,072    33.094 27,18'          359,929      315.141      43,276 33,176
   Pttesco,lnc.                                             96,475      85.196      97,444     89,335     5,451    6,634         131,251     '109,703        24,393 24,393
   POWirContractors, Ine.
   Westinghouse Inttrnation.1 ProjKts Co.
   Globel Electrificlltion Systems, Ine.
                                                                                                                                                            1,000 1,000

                                                                                                                                                           10,000        500
   Romago Electric CO.,lnc.                                 40,023       15,546     40,723     15,942       53i       78          58.585      40,603        7,883      7,883

e •• .,111 Entin"rin,   COnstruction                    '0,414,045    1.074.249 11,081,28110.210,652  207,735 63,523          '5,778,15712.351.392       '.900,6281,815,595
       Construction & oIV't Corp. of the Phil••           2,989,036   1,783,380   3,307,452 3,77&,311    15,879 21,145          8,377.568 . 6,104,606       887,556 887,473
                                                        NETSALES              GROSS REVENUE                 NET INCOME         TOTAL ASSETS          PAIO·UP CAPITAL
                                                           IPOOOI                   IPOOO)                   IPOOO)                 (PODO)                   (PODOl
             INDUSTRY/CORPORATION                    ll1Z         1981          191Z      1111          UIZ         1911       IIIZ         1911        '9IZ      1911
  Atlantic Gulf & PIl;ific Ca. of Mil., Inc.       1.018.557 729.404        1.039.569 740,909           60,318     33.029     784.998    672.432      133.265 133.265
  E",inttrln, Equipm.nt, loc.                      745,803      652.537      765,693    672,812         45,025 39,001          705,288 591,914       181,827     181.827
  erectors,lnc:.                                   661,282     501.544        816.486 504,290          130,98311110,831)       761,623     706.161     75.275     49,475
  Hydro Rllourc •• ContrKton Corp,                 486.504     878.551       506.835     902,763         3,079    62,741      456,315    643,778        97.035    97,032
  AWASS,lnc.                                       382.107     245.570       382,107     245,570           6.414 5,576        444,104     221,113        22.325 22.325

  Capitollndustri,1 Cont\. Groups, Inc.            367,180      306.915      371.491    312,859          4,126     4.806      258.892     244,354     20.000     12,050
  D. M. Consunji,lnc.                              325,152      245.729        339.007 253,\73           9.272 3,149           239.776    269,968      60,000    50.000
  F. F. Cruz I Co.,lne.                            254.319     204.541        259,536 207,414           16.455    9,055       494,633     378,371       53.125   40,500
  Hanil Dev,lopm.nt Co•• Ltd.                      225,098     481.914       225,770   481,914          5,475 157,445)         193.383    117,165
  Robl," Industrial Constrvrtion Corp,             182,436       43,190      163.336     45.505         5.227     193         121.513      40,578       5.158      1,767

  Asiln Construction and Dev't Corp,               165.140      13,629        165,194       13.855      8,480     2,538          47,801     13.491    3.000       3,000
  Philippln,lnfrastructur.;lnc:.                   157)57      59.009        158,840       00,703         100      169        448.084   266,374       44,320     44.320
  Contrite Aggrl"atll Corp.                        155,789     147.747         155.789   149,106        7.457    8.409         117,917 122.550        49.763     42,899
  Erincor Development Corp.                        152,282     139.880       152,828     140.065         17,057) 3.4~9        109,202    78,929       4,750       4,750
  AUtech Contractors,lnt.                          151,279     64,634         152.104     65.025       13.340     5,144          54,778 33,927         6.258      3.345

   Filipinas (P,.f.b Buildinl) Systtms. Inc.       131,108      84.818        131,387      85.027          1.472 1.144          90,808    72.876       6.000      6.000
   Pacific ~nllin•• rjng Co•• Inc.                 112,486       26.857      114,276      27,428        4.495        23        75.096     37,203      12,000       9.000
   East.rn Construction Co., Inc:.                 109,003      49)09         109.466      49.467            937 400           19.143     16,029       2)50       2.350
   Asil Intern.tionll Build.,. COfJl!.             107.560     102,213        107.955     102.498       9,874    10,676          53,946     40.836    10.000     10,000
   F•• ,,1t Construction Corp.                      89.951      83,433         90,111      93,796          1.894 4,312         32.332      31.533      5.040      3,600

  M.k,ti DlVelopm.nt Corp.                          86,913       65.042       89,968    68,126           (677)      1114)       97.339     93,328     16.000     18.000
  If MIIII Corp.                                    80,271       24,406       80,374    24,621          8,390       1.089        52.622    30,511      6.509      6.509
  New Slmplguitl Build.,. Const., Ine.              78,380       58.059         78.425 58,059               655        503    152,685     117.148      5.000      5.000
  R. C. Gonzilez Co., Ine.                          77.361       99,134         78.142 102,822          (3,5041    12.2251    216,160     183,742     30.515     30,515
  PKtIlndu.trill  Corp.                             74,300      26,884        14/590     26.900         3,352      1,892       94,612      29,720      4.099        2.801

   Mon.rk Intlrnltion.l, Int.                       71.811       78.188       78.609       79,872        6.172     1,900        65.190    66,7!!       20,000      30.881
   PKiflc Equipmlnt Corp.                           66)70       41.543        70,004       50.528        4.036       381        64,395    59,433       5.853      5.853
                                                    64,504      23,m           64.764     23,871             348     168        46.039    33,032      15.000      4,776
   J. H. Pti ••.• Construction CI!Ip.
   Kll'tlton Construction Enttrprias Ca., Jne.      58,382       30.918       58.382       30.918           1371     298       14.392       9.485      4.840      4,840
   fJtIHippin. Iron Const. & M.,lnl Works. Ine.       53.871       54.955     53.875      55,081        14,775)    2.532       49,082      48.890     13,063     13,063

   Jo. Rodriguez Con,truction, Ine.                 52.250      64.339        53,093       64,587        1,794    4,585          95.274    86,928       8.720     8.720
   DCCD Engineering Corp.                           51.533      38.606        51.869       38,806          1,698 1.363         30.625      28,304      5.423      4,173
   Bllm Construction Co., Inc.                      51.161      28,417         51,161       28.417            429 347          24.629      16.084       2.000     2.000
   Pyramid Construction & Engin•• ri"g Corp.         49.485     29.574        50,111      29.838            261     234        20,991       18.114     2.040       2.040
   Alen Enoinl.,ing Corp.                           48.768      58,188        49,217      56.790            585    745        116,342     111,712       7,500       7,500

   Mlrch,nu Construction Dw't Corp.                 46,617       6,700          46,620         6.783     1283)         12)     10,841       9,900      1.563      1.563
   NlwCity Builder•• Inc.                           46,337      67,070        46,710       67.070           851      384        43.404                 7.000
   C&A Construction Co., Inc.                       46,163      41,630        46.175       41,743           898    1,418       118,001     75,875       2.000       2.000
   ViII.mll Con.truction    a
                          Dw't Corp.                44.650      29.684        44,814       29.751         633         407       9.883       9.605      8,400      8.400
   Conclpt Builder•• lne.                           43.682      69.259          45.259    69.577           883     1.040       99.064     112.675      10.000      10.000

   Clrdlnllindustri,l,   Inc.                       42.292      28.970        46.299      32,375       11,786       6.742      44,369       32.874       822      1,749
   Permlstreulndu.tries,lne.                        41.783      42,317        42.763     42.631         I,m          697        37.632     37.186       4.000       4.000
   H. R. Lop,zCo., Inc.                             41.605      48.315        46,448     53.596            47         1971    113,487     114.803       3.000       3.000
   ErecA,lnc.                                       41.544      39,9\4         41,892    40,933         2.485      2.739        25.369     21,228     10,000     10,000

   C·E Con.truction Corp.                           41.295     41.432          41;295      41,432         197 216        62.693      50.631             2.000       1.000
   F. S. Duterte Construction & Mgt. Corp.          38,377      12.654          38.377      12.654         284        30         8.276                 2.000
   Engintering & Construction Corp. of A.i.         38,111      48,813        36,598     17.809    112,9371 112,5821     105.773      103,613           12.234      12.234
   V. P. Eusebio Construction, Ine.                 36.710      22,782        38.215      24.774       1,716    2,222    72.398       46,531           10,000      10.000

   ELECTRICITY,                     GAS 01 WA TER
Distributing Electricity to ClHtIU ••••           8,045,188 5,254,986       8,147,758 5,3Z5.265   134,401 (32,7111           8,414,847 5,238,095     621,252 493,917" Ellctric Co.                             5.790.664 4,982.207       5.887,632 5,047,924   123,870 140.828)           5,765,849 4.548,578      477,296   350.635
   Dlvlo light & Power Co., Inc.                    128,039    154.759          128,478   155.855       1.757 364              484.754    456.185       85.381 85.381
                                                                           NETSALES                 GROSI REVENUE             NET INCOME                TOTAL ASSETS         PAIO·UP CAPITAL
                                                                             lPIlOII                      IPIlOII                  lNODI                     IPDIOl                lNODl
                  INOUSTRY/CORPORATION                                 I"Z           1111            1.12        1111         lilt       1111             ll1Z          1111        ll1Z         1111
     hillY     Eltctric Co., lne.                                     75,OZI          69,57.         71,691    72,159        .,.50       .,.71        115.2"      115,920     29,052      29.052
     tlpy.n      Electric Po•. & light Co., lne-                      52.155           49•• 56       52.955      41.127      .,332       3,210        129.795     111•• ,2    29.533     21 ••••

1_          ••• 0 ••••••••••               EIoc1ricIty
     H,tion.1 Power Corp.                                          6.665,290     1,131.341       7•• 20•• 53 6,345,329      161,975 .33.421        44.262.11136.052.120      11.352.920 1.754.619

     BASIC METAL INDUSTRIES and AI,min,,,, ••• AlloyCnIiIII                             310.621       324.13Z        38Z.7.1     3Z6,211       171.6041 1.1 ••• 11       711.654     741.131       122.08     121,393
   Hoown Com.lta Industria, In~                                      206.013      lM.3OZ           206.013    lM.30Z         125.7731 136.4421        371 •• 1.    363,386      59,95Z       59,952
    R.ynolds Philippine Cotp.                                        174.515       139,130        176.721     '.0,959       152.7311 15.0471          390.140     313.250       62.117       61,441

lien F'fnlCtl.nd S1nI    M.killl F..-
   Arml:o·MlrSt •• 1Alloy CorP.                                      1".911       237.213          '.9.151    2.2,449         16,957)   9.110         246.169     205,438       60.612      10.612

GalnnizH          Stftt, Tin' ••••         " ••••        CNIIllI
     MetlIPr.d.ets                                                   79Z.111      •••• 132        715,321    401,375        131•• 711   11,5471       515.171    141,352        11.702    11.'"
     Philippine Stnl Coding Corp.                                    265.694        32.573        261.907     36.174        127.7."       I.m         291.571    259,213        64.040     51.000
     Jttinto Iron& Stnl Sheth Cor,.                                  10Z.577       96.'76         103.910     97,274            509      2.018          89.015 100,905           3.000      3,000
     South.m Industrial fIr.itm, Inc.                                 76.243        53.529           71 ••35 53,901          11.965)    13.1631         51.571     .7.899          12.397       9.301
     Mind'RIO $Inl Corp,                                              75.611       1•••••          12.052     19 •• "          11M)        2••         51.513     54.503          4.915    ."'5
     Rilallnttgl"1ttd Stnl Mill Corp,                                 66,554       60.613          66,551     10.692           (201)        51         ".139      51.120          .,100       4.100
     SlIprmll Industri ••• Inc;                                       59,311        54,923         51.331     54,959              34        349        11,27.      15.363           1.000 '.000
     Mlrtitn StI.1 Corp;                                              51.100       27.014           51.1111 27,Q84                15         52           25.525   1,319            250       250

Pi,. ,114 T••.• M••••ftcbtri •••• I,on ••••                ItHI      131 •• 27    1.5""            131 •• 27 1•••• 51         1.111      1,117        117.'13      95.533        1••• 12    1."12 $t •• 1Pipt Corp,                                        14,310        94.151          94,310    94.151            569          141         10.312       60.345      9,372       9,312
          Stltl Pip. Corp;.                                           54,1147       51,691            54,1147 51.691             512       .,0         37.291       35.188        5.600      5.100

R•••••• MWS                                                        2.384,2171;135.117             2•• 18,538 1••••• 701      7.,211   10.048 3.5",31Z     2••••• 091 1.421.013 1,214.112
     N.tionJ,!     Stltl   Corp.                                   1,324.400 1.050.104           1,338.791 1.0SO.104         61.112     8.12.   2.946.381 U48.014 1.237,684 1.112.113
     Globe Sfn! cOrp.                                                192,4SO' 124,811               192.506   12•• 123            332    264       61.312    61,916     15,000     15.000
     FiljpinoMttaisCorp,                                             '.5.370     101•• 52           '.5.407   101•• 81            522    112      65"'0      17.381        1.625       1.625
     Luner St •• 1 Corp.                                             134,065      72,130            134.729    72,902            153     121       43.562      25.936        3.665       3.165
     PIII__ SteelWorks, lnc.                                         127.641     121,563            121.641   1'21.563            813    .54      63.578     11.663        8.404       8.404
     Capitol      Steel Corp~                                          14,232      12 ••••            84,347    63,964           409      119     54"15      41 ••39    12,000     12,000
     ToWlt'Sttl1 Corp.                                                 75.100     12,930              76.1.'   82,930             M     (1931     60.387      87.560     2,250       2.258
     Welding 'industria
     G,llKii Stefi Cor,.
                                o'   the PhilL, ht~                   a,."
                                                                                  79 ••37
                                                                                                   ' 83.11S
                                                                                                               85 •• "
                                                                                                                              Z•• 12
                                                                                                                                                                        31.587     21.11'
                                                                                                                                                                          20.000 20,001
     Cath.y M.taI Corp.                                                81"79      51.100               62.0l.  51.143             130   (131)     21.515     24.141        2,100     2,1lIO
     Mwceto S••• ICorp.                       ,                        58,923     .5,311               68,509  52.5~5            210   13.153:    131.205 131,947       88.491      21.217
     Unmrsal        $,",
                   Sinllti           •••   Co., Inc.                   41.501      SO.881             ".518    SO.119             200       135   51.1"      51.179     12,550      12••••

Ire, •• d StHIIasic          Indutcrin.        ••• .co               511,1"       .71.1OZ,         511.1"     .7I,J02        21.141     11,217      1.371,."  1."1,20          •••• DOI •• 5••••
     Philippi,.     Sinttr Corp;                .                    410,358      .11,J02           490,35'   411"02         21.464      16.211     1,358.621 1.410.299        .15.000   415.001
     I~on<lMe,. Mf,. CorP.                                            39,.'1                        39•• 11                     171                    13,169                      3.000

St •• IWo~   In' ,Alllin.,Milk,               '.u.
     D...,wiliu ~ndustrill. tI.lwc.rlu Corp.
                                S                                     ".525           25.63Z        ".851       25.164           513       (58)         62,211
                                                                                                                                                                   ••••••        11,914     17••••

     CHEMICALS              AND CHEMICAL.                    PETRDLEUM,       COAl.     RUBBER AND PlASTI~                PRODUCTS

                                                                                                 •• 182,9193.511,428        216,522 213.712     2,111,217 Z.529.1&I             I3I,3U        111)1
Dr ••• ~MHicinn
     U.itid l.borltorits, Inc.
                                                                   .;122.5ZZ 3.611,233
                                                                                                     819,232 160 ••••
                                                                                                     165,515 195.213
                                                                                                                                 9.451    8.125
                                                                                                                               39.434 31.118
                                                                                                                                                  21•• 933 239.242
                                                                                                                                                  ~6.331     596.813

     John~n & Johnson (Phils.), Ine.                                  33.,528  295.W                337.190    216.142       21,110 27.9,72        203.539    114.513             44.525
     Wyeth&.co labor.tories, Ine.                                     152.121   209.433             255.009     210.419      .',203    35.107     134.161    129.195              59.311
     Abbon',tn                                                18l,206  144 ••31             111,230    144.491       13,921     3,901     117,296    101.105              20,628
     W...., ••.
              ·l.mbtrt Philippinn. tnc.                               175,9$5  1.1.306               171.121 1.9.949           20.109 11,929      119,a97 ' 110,359               22.532
     I.'f'f' Philipplnel, Inc.                                        17Z•• 53 '.8,3017             119.241    154,213         •• 134'  2,111      7•• 554    64,912              25.000
     PfJlIr,lnc.                                                      '.5.511  142.920              1",911     1.3,575         1,31M 12,012       110,343   .\13.050              36,100
                                                                  ,..,                                                            I.n ,..,                                ,..,
                                                       NETSALES               GRGSSREVElfU£             IETIIICO.t                 TGTAL ASSETS              PAIG·UP CAPITAL
                                                         (POO61                     (PDDGI                    (P01lI1                 (POGGI                        (POGol

            INOUSTRY/CORPORATIGN                    '"2
                                                  116.161       •• .9OG
                                                                            116,161       '"I
                                                                                                                       •• 2      132,366       138,.78
                                                                                                                                                              , •• 2
                                                                                                                                                             54,600      54.6OG
  Cib•. G,igy {Phils.!. loe.                      108,161       .6,247       108,262    86,41.                      1.11.         74.640         68.374        13.092      10.ODo
  AHS/Phil'.,lnc.                                  .6.7.8         61.818     96.7.8                   21.318        11.1861      139.977        108,124      24.700     24,700
                                                                                        61 •• '.
  "' •• d Johnson (Phil•.). Inc.                   94.121       82.067       98,244      84,897        9,808        2.797          86.ODI       61,646       30.000      30.ODO
  Rod!.IPhils.l, Inc.                              93,497       .0.912        94.236    81.463           9.777      8,112          73.363         67.891
                                                   86.909       76.004       8U72        76,51&         2.496       2,017          49.240         40.607         10.012     10.012
   Inttfphil L.bor,torilS. Inc.                    83.644       73.718       84.949      73.819         2,630        1.311        9'.829         8'.893       23,040    23.040
   E. A. Squibb I. Sons Philippi,," Corp.          77,229       67.327       79,140       68.098         11,'31     6,664         44,812         33.066       19.600    13.000
   Boehringer Invelh.1m IPhits.I.lne.              76.660       68,686        76.682     68.6'6         •• 1.8      3.970         31,670         28,036       19,584    19.684
   Mtdich.m Ph.rm.tlutiClI., Inc.                  69.963       49.931       70.568      80.640          8.126     (6.13IH        43.M3          33.136
   Smith Klin. I. Fr.nch Over." Co.
                                                   &2,696       86.743       62,696      86.7'3         6,m     12.93'             36.868       61.630         10.400     10.400
   Rich.rdson·Vicks Corp.                          62,629       66,348       62.763       66.681        6.398     7.123            66.170       '8.467        16.000       8.187
   Eli Lilly IPhils.l,lnt.                         67,800       27,273       67,862       27,363          7.199    11.1111         '2.m         31.609        16.000      16.000
   Anr. Ph.rm.clutiClJs (Phils.l, Inc.                                                                                             ~8.346                     11.929        8.621
                                                   '7,806        '3,380        '7.806    43.564          6.438     6.242                        37,148
   5ehtring Corp,IPhils.l,''''.
                                                    '7.610      '2.709         '7.803       '3.037          11    1.238            36.818       '2.390         3.000        3.000
   upjohn,lnc.                                                  47,507       '6.02'      47.607         12.368 13.132              73.669        69.492       20.0OD       17.0OD
   Bristol Labor'lorte. (PhilL), Inc.               '6.024
                                                     .5.8.0     46.724         46.840    .6.72.           312     1.123              29.613         26.894     6.600        6.000
   Ho,ehst Philippi,.." Inc.                                                 38.220       36.393             886 3.584             34.686        32.020        7.600       7.600
                                                     38,220      3'.687
   Sandoz {Phils.l, Inc.

bplosms .nd Ffnworlts                              126,344     123.066      126,344     123,061            331      5.'3,         133.161      130.969        36.169      35.189
   Philippin. Explosivn Corp.
                                                 1,8")13      1,831,'81    2,315.010 2,038.&01         86.(22      1•• 138      2,19',280     2,447,"5       325.003 326.045
FertiliZlrs                                      1,3'6,699    1,143.2'2    1,74',006 1.663,9"          54.977      34.'71       1,820.769     2.108.'61       266.860 266.892
    PI.nt,r,P,odum,       Inc.                     299,738      2.0.29.        300.36' 2fO,406          6,276       (2.2611       "7,119        160.773        43.862  '3.862
    Atl•• F.rtiliz.rCorp.                          2.6.978     ,.8 ••• 6     270.64G 192,162                170   (13,2841        231.392       178.771       ",29'     ".29'
    Maria Cristina Fartilii.r Corp.
                                                  17.,116      188,6'&      179,175     18.,843           '61         811          17',513     129,'70        80.952      21,786
ItldustrillAlcohols                               131.661      147.918       133.238    ,.8.926             76                    168.892       112.376        63.162     14.000
    Asian Alcohol Corp.                            '8.644       40.677       '6,637       40,711          37.         184           15,701      17,095        7,790        7,790
    83rbaci Ch.micall, Inc.
                                                  303,'67     231,911       333.861     258.378       17,281      12,72&         '8',62'       348,141       138,280      98.388
IndultrilIICom,,...d    •••d L1quetitd) 0 ••••
                                                  122.916     108,7'2       123)87      110,469        9,499       &.704          312.030      2",69'         90.000      76.OGG
   Consolidatad Indultrial G•• s, Inc.                                                   82,878
                                                   78.73'      71.088         84.038                  12.'291        231           33.'95        36,23'        6.000       6.006
   Philippin. Aeetyl.n. Co.,lne.                                                                                   6,792           87.134       70.016        17.388
                                                   69,"3       '6.086        83.26'      66,089         9,999                                                             17'88
   C.bu Oxy"n & Ac.tyl",. Co., Ine.
                                                   '2,896       36.326        '3.261     36,784          192          •••          63.N6        '8.683        16.892       16.'68

                                                  858,7'6      668,207      868.088     681,'64        2&,712 23.88.      '18,18'    '71,11'                 112,722 112,722
 htor,anlc Acids, Alk.n.l.nd ChiDrin.                                       328.668     .299,361                           181.189    166.377                   30.000 30.0OD
                                                  328.668      299.361                                 16,'63   12.'39
    Sh.1I Chemical Co. (PhllLI.lnc., Th.                                                                                   130.898    137.340
                                                  177.638       168.'21       18'.328   169,673        12.'67   10.712                                        ".173     ".173
     lMG Chamleels, Inc.                                                    103.986                     1,720    1.296      84,336      8••• 8.                 30.000 30.000
                                                  103,768        '3,3'9                   '3.708
     Ch.mphil M.n'lf.eturing Corp.                                                        47.722        13.1681     16681     89.766 83.983                   11.6'9   11.549
                                                   48.683       '7.086        '9.106
     Int.rn.tion.l Chtmic"lndul1rltl,  InC.
                                                  &'5,213      811.768       628.034     820,'13       (127.3011 (11,'681         1,177,'"       1.231,319       '02,962 342,962
 Mart•••.•• Fibers, .XCI,t GI.u                                616.168      449.'06     621,033        117.8861 9,616             894.083       808.627       197.246 137.2'6
    FilipinlsSynth.tic Fiber Corp.                              79,262                                                            11.823        11.396                      '.000
                                                    69.867                   70.21'      79.636            1.088   1,'00                                      '.000
   TI,FibtrS,lnc.                                   61.228      88,204         64.832    90.117         1'.9121     III          173,682       166.342      '0.000        '0.000
    Univlfstl Synth.tic Mfg. Corp.                             129,i4i                  130.197      (106.6961 (27.7981           91.831       266.966     161,716 161.716
                                                    ",004                    '3.682
    Llk.view Indumi.1 Corp.
                                                   337,'86     288,2"       352,871     lI2,&2'       3'1,611 "38.285             "411,1121 431,082          120.113     76,263
 M.tch"                                            223.798     203.346       231.927      203.611     23,1'6    36.112             319.036 2'6.629            71,730     '7.820
    Phimco Industries,lne.
                                                    61.236      '6,7'2       66.792        62.084         6.388       676         12'.393    13'.072          36.600     20.600
    EUr&silMatch. Inc.                                                                    36,744                                                                           7.833
                                                    62.931      36.161       54,167                    3,0'3       678             66.201    68.381            12.833
    ROYIIMlteh Inc.

 Plint A.mon", Thinners Ind Brush C••• nt"          .2.03d       37,'28      '2.129      37.'91           104          66           21.666      17.193          6.698      &.048
     Asi.n Chamic.1 Corp.
                                                  630.818     '80.214        m.l00      "'.88.          6,147         6,812      300,844       lIo.m           63.682    • ••• 82
 hints                                            217.908      192.89'      217.964      192,899        1,8'23       1.699          96.316       96.29'       20.000     18.000
     P.ciflc Plint & Oil Mf•.• Inc.               100.396       81.670      100.637        81.754         4.899     '.194         60.771         66.81'       11.420       9.320
     Dulch Boy Philippin,s,lnc.                    68.700       64.888       68.700       6•• 9.2                      293          8.'38         8.047          6.000     6.000
     Glopsco, Inc.                                 54.308        61.'86      54.677       61.647            12           1.71     '2.066         39.117        '.096       ',096
     Fortun. Trading Cor$t.
HOW COMPETITORS                                                             COMPARE
                                                                      IETIALR               IRDIS    REYUUE           NElINCOME                 TOTAL ASSR,         PAIO-UP CAl'ITAL
                                                                         lPlOOl                    IPOOOl                 IPOOOI                  IPOOOI                   IPOGOI
                INDUSTRY/CORPORATION                               1112           1111       ,.2        1111         1112     lHI             11.2       1111           ln2         1111
       Century Chemicaf Cor"                                      45.411      34,955        15.698     S5,D13         300      242           23.577      11,792       3,000    3,000
       hcific Products, Inc.                                      44.021       54.421       44.432      55.364         18111 14191            75.477     72,D99     lD,D56     10.lJ66

•••••••••      CWlMrics .nll 0'"          TDilit   P~fItiHi.     213.117    2I1.N7          m.1I1       2'5.474    15.9M     17.354         411.211     421.'"    105.423     103.923
       Pilipin•• KIO. Inc.                                       233.541    227,991        233,541      227.981     13.516   10.329         359.910       310.901 82.423       90.923
       Avn lIbOrItorin. Inc.                                      50,388     52-"6          54.590        57.493    1.418      7.028        48.309       48.191     23.000     23;000

l'estkidn.     1.1ICtiddn.      hlllicill"aH       .M_id_
       Monunto Philippi •.••• Inc.                                35.117      34.592          40.280        38.590 11.5901        179        28.601      17,272      4.437      4,436

htteItvm       RIfiMrin-                                     2'.552,11521.702.111   21.7'2.411 21.'03,240 314.530 304.451                  ',124.731 1I.'M.5H      8'0.903    "8.803
       BIlIIft A,finl", Corp,                                12.376.757 ",290,258   12.378.7571 h290,259  22.021   19,273                 2.383.771    4.490.452   210.991     210.898
       Pilipinn Shill Petroleulll Corp.                        7.581.419 7."9.475    7.758,924 7."9.475   218.493   40.465                2,749,905   2.815,161     190,304     180.304
       Clhex (Phlls.), Ine.                                   7.067.032 8,987.059     7.100.063 7.068.195   31,502 209.122                3.489.741   3.700.581    346.000    346.000
       Philippin. Petroleum.COrp.                              1.528.731. 1.325.322  1.526.737 1.325,322   42.514 35.591                   1.301,308     897,759   143.4"      143.4"

       Plr.mount Vinyl Produttl Corp.                             98.833     61,486         98.845       61.5"         90         tt6       43.630       32,238      4.000       3.603

PIntic IMI,strili     Supplies                                   190,11'    135.IM         110,711   138.774 112.7131 111.8351      157,141      215.783     5'.157            53.037
       Philippine Vinyl Conaortium. Inc.                          72.188     51,%75         72.1a      58.389   12.9131 15.3201      98.675       72.828     21.000             15.1lllO
       'lillie GroUp Philippines. Inc.                            48 ••      34,378         59.039     35.865   19.978) 111,4501 76.290           178.690    33.167            33.167
       T.xlCo Vinyl Products COrp.                                39.434      42.511          39.491     42.520       79        135        14.893        14.3055,000             4,970

__                •••••••••• _                 F••••••   0••••               81.7H          1••• 11                  5IZ         48.        42.878        53.141     5.111       5.150
                                                                  H,7.                                   '2.290
       Firll: Unittd Mktg. Corp,                                  57,938     58,554         57.877       56,627       87         67         17.873        27.776     2,600      2,600
       Pllltimer Indumil' Corp.                                   41,901      35,241        42.742.      35,633      475        421         24,806        25.363     2,550       2,550

fI,"', Feotwlar                                                  47',132    432,1"         478,1&5      434.712    17.131     17.&H        510.995      545.113      92.150    81.112
    Rubbtrworld IPhils.l. Inc.                                   409.191    362.019        409.997      363,833    17.510    17,434        542.827      416.260     76.500     76.500
    Gin.11 Rubber'   Footwtw Corp.                                81.135      70.750        61,258        70,929       56       256         48,189        59.653    16.250     15.312

Soap ••       SynthetiC DttIrfIab                              2••••• 311 2,551.1'5      2,121.491     2.578,988 145,255 150.218 1,292,278      1,148.151          Z90.075 252.900
       Philippine  Rtfipint Co., loc.                            947;131   924,112         947.939        824.882 38.729     26.122  410,628      358.522          108,DOO lOS.000
       Colpt,.p,lmoIN,              1m:.
                           Philippinu,                           870,341   844.366         891,220       854.428     92.437 lD!l.BOD  400.180     375.520           75,000  75.000
      Proctlr ,nd Glmblt Phil. MIl. CoqI.                        1!66.705   795.553        866.705        795.553     12.552  11.049 316,043       331.767          9D,DOO 6D,OOO
     "Petri••• fQ.ducu Mil. Corp,                                 72.&H       52.470          72,",           52.480    834      401  46.127       41.858            3.500   2.000
      Royllindustrial DlVtlopmant Corp.                           51.923      42.814        53.048         49.563        903   3.044     Z9.302    26.998           15,575   9,900

Iy"",-RniM                                                       285.422    325.'74       311.513   331.914    18.871        13.221        315,730      311.113    109.118    101,'15
       Resins,lnc.                                               220.727     265.431       224.813 299,236     13.862         12.679        239.200     285.478     99,\86     99,195
       Philippine Petrochemic.l Prod\lcts.         IK             14.595      59.638         83.770     62.751 3.009              542         75.530     16,334     10.000      10.000

1irll •••• 1••••                                                 126.037    934.541         133.921       144.641 111.811  91.655           771,475     714.240    322,233 309.771
       Goody •• , Tir.    a   Rubber Co. (PhiIL). The            398,112    338.416        398.612      338,416    59.279 36,951           196,133      203,996      50,000 50,000
       Firestone Tirt 8: Rubber Co. of the ",ilL                 353.056     297.095        356.764     297,675 38,112 26.227              293,143       241.926      99.910 87,449
       Sin O.rby Int'!· Tin Co•• he.                             114;359    301.038        178.545       310.557    16,427 28.477          281.199       268.318    172.323 172.322

Wlxes IINf ',lishifttP,.,.miHi
   S. C. Johnson &, $on.• Inc.                                    14.615      76.149        84,694       76.578     7,181     6,129          48,453      43.532      18,000     15.000

laic     h.dustr" C,",miah, LU,                                  117;111    773.nt         713,931      790.8IT IT,305        1,621         775.'28     105.299    153.527 147.'"
       Marie Cristina Chtmitllindustri •• , Inc.                 154.062    173,393        156,514      177,673   4.113        1,563       235.707      256.471     48,776 48.778
       PolyphosphltlS, Inc.                                      151,947    141.436         156,210      146.793 12.911       5,267         104.291     131.861     40.236  34.079
       Bardin ,lntlfNllion. Philippines. Int.                    110.791    130.027         114.033      130.114 10.50\         8.204      111.287      113.527     23.665  14,199
       Eltctto Alloys Corp.                                       88.999      93.491        92.709        81.355 {24.4631     128,5971       140.550    123.401     27.000 27,000
       Rohm .,d H•• Philippinn, Inc.                              61,666     84,983         61.699        64,993    5,114         3,027        53.651    54.701      11,200  11.200
       CYlnlmid Philippinis, Inc.                                 67.152      84.398          68.064     65,t44   4,562       9.541          55.518      52.317      2.250   2.250
                                                                          NETSALES           GROSS REVENUE               NET INCOME             TOTAL ASSETS            PAID-UP CAPITAL
                                                                            (POOOI                 (POOOI                  (PODOl                     (POODI                  !PODDI
                   INDUSTRY/CoRPDRAT1oN                                1112       1111         1112     1111           1112     1111            1112        1111          nl2     1911
    Proton    ChemiCiI      Industri.s,    Inc.                       44,004     31,518        44,231 3'1,572          1,310    2,252             16,263 15.315          4,200    4,200
    DuPon' Far hst, Inc.                                              40.945     41,156        42,845 43,854             159    2,663           2M04       29.142
    W. R. Grate      (Phils.!.   Int.                                 40,621    43,369        40,621     43,369        3,On    4.109            29,m        21,920       6,200      6,20n

Other Chlmic.l Producu .••. I.e.                                     423,731    398.128     431,253      414,810      18,051 13,01'            338,142     354,145      38,989      38,989
   Kodak Philippin!s. lid.                                           189,581    185,945     189,581      185,945           146    3,815        120,618     142,814
   Columbian Carbon Philipplnts. Inc.                                 83,225     69,196      84,190       70,274       9,680   4.143            85,955      83,500      23.156     23,756
    Aul,& Wiborg Co. IF,r Entl,Th.                                    60,146     51,855      63,133       60,951       5,116   4.139            80,812      16,811
   NeeQ Chemica!    COIP,                                             51,088      48,845       52,230     49,812         440      212           19,599       21,748      5.000      5,000
   hnchoCofp.                                                         39,697      36,285      41.519-     31,832       1.415    (4891            26,698       30,012    10.233     10,233

Olhtf hbricttedPlastic           Produm.     ,•••. c.                126,505    643,496     631)05        648,594     (92,1121    1I1,111l11   1,21',541   1.111,729   228,37&    219.911
    Mlbuhay Vinyl Corp,                                              159,613    214,932     160,531       218,119     193,8841    (30,0271     861,616     648.199      81,188     81,091
    Fluo Manut'eluring Corp.                                         142,951     131,130    142,951      .131.162      3,189       3.419-       81,859      15,151      23.150     18,214
    Solid State Multi·ProductS Corp,                                  61,810      53,15'     68,950        53,956         99          91        21,281       24,054        650        650
    V8Ssar IndustrieS,lnt.                                            55,489     51,111      55,569        51,111       1,626      2,695        15,183      68,633        9,600     9,GOll

    Dart (Phils.),lnc.                                                55,319     45,339-      55,319      45,339       3,490     2,890          69,360      13,869       31,250    31.250
    WillexPlastit Industries Corp.                                    52,950     63,020        53,106       63,320         1,148 3,476          13,325      16,662       23,338    21.500
    ACIFibreghmIPhils.J,lnt.                                          49,813     39,951       &1.869      40-,127      1,388       295          52,960      52,039       29,600    29,600
    Pacific Enilmel & Glass Mlg. Corp.                                42,494      31,600        42,844       37,600       (9,8181 46           114,303      99,522       23,000    12,000

    FABRICATED              METAL PRODUCTS,                    MACHINERY       AND EQUIPMENT

Cftffnt-c.ryinll     WiringDl9icn,         Conduits
Iltd Fini""                                                         2,179,831 2,392,965    2,1",421    2,403,384      12,'"      136,314    1,811,658 1,353,516   291,965 181,812
    Advanced Micro Devices (Phils.l,lnc.                              561,489   484"4        564,152     481,288      11,013      29,984      100,851    90,643    18;273    18,213
    NS,ElectronicsPhils., Inc.                                        525.944   421,541      534,518      430,445     51,239       49,279       258,611   195,061     14,339 27,345
    rexas Instruments (PhilsJ"lnc'.                                   511,049    431,334       511,049     431,334    13,163      22,219      311,922   233,866
    $t.nford Microsyl1emS,lnc,                                        359,861   :!95.209     360,883      395,223        2,060    28,039      221,405   195.121    51.145    50,986
    Oynetics,lnc.                                                     207,095    161,515     202,095     161,515      18,9181       4,094     252,040   116,039     65,'445 32,445
    F.itchild Semiconduttor   (Hong Kong), Ltd.                       134,B94    100,353     135,218     '02,19'      16,6881       1,828      1&4,423 &9.010
    Intel Philippines Mfg., Inc.                                     121,398    100,849      121,710     101;196       (6,8861 3,621        80,391           67,935        8,375  8,375
    Semiconductor Devices fPhib.), Ine.                              103,306     95,488      103,696      95,152       9,954     2,368      59,648           66,915       11,250 11,250
    Sjgnttics Filipinas Corp.                                         10,828      64,857      10,890       64,851       (5,5441 12,9491    131,166         126,810      35,000    8.000
    rtlefunkln   Semiconductors (Ph-ilL).-'nc.                        58,327      48,385      59,118      49,228       2,405        151       22,361       23,010        10,000 10,000
    Integrated Mitro·lhctroni".s,lnc.                                 56,128      20,261      58,581      21,099         1,515 110,3041     15,121           69,412     15,000   10,000
    Deltron Aulomation, Inc.                                          38,316      23,628       38,190        24,030        3,625     1,512 49,214           21,021        4,OGO 1,000
    Complex Electronics Corp.                                         31,837     33,165       31,941      33,168       1,598        412     15,427          12,601       4,138     4,13B

   Gillette (Philippines),       lne.                                 18,643     sa,D19         18,643      58,213     5,820       1,510         64,420       48,911    24,366     22,301

Duplicating Mlchines, except Photocopying
Machines                                                             141,950    122,149      148,023      122,958      5,161       4,481       155,'83     146,395       16,534     10.940
    U'Bix Carp.                                                       19,159      65,826     19,159        65,826        3,618     3,028        15,366       12,293     10,000      5,000
    Philippint fllji XerOll CorP.                                     68,191      56,923     68,264       51,130       2,088        1,459       80,611      14,102        6,534     5,940

Eleetrte F.lns, Vlcuum ele.nln.            Floor Will'"
andPolishen                                                          201,618    223,189     214,915      224)85         259        1,018       348,575     302,411     82)54      6~,253
    Union Industries,lnc.                                            100,955    111,116     104,204      111,611         116       1,050       333,106     282,478     51,254     57,253
   Standard Appliances Corp.                                         100,123     112,613     100,111     112,514         143          39        14,869      19,999       5,000     5,000

E-.ctric Lamps. and F'uorncent     Tubes                             208,318    171.1&5     212,514      114,317      12.533 11,753            144.917   141.491        45,246    45,246
    Philips Eltctricallamps,  Inc.                                   121,258     111,339    128,324      112,332         4,398   4,140          90,292     86,224      30,000     30.000
    Philippine Elmrical Mlg, Co.                                      81,120      68,626      84,260       11,985      8,135   7,613              54,685    55,274     15,246     15,246

£laetrial Commuaic.tion   Equipment
    Veterans Electronics Communications,                Inc.          38,560     37.187       39,463       38,584      1,043       4,202        78,243      59,016      12,652    12,652

Elaetronic 01" Plocessiog Equipment                and Accenori-.
    DJlta Gentral Philippines,lnt.                                   115,149    116,651     116,118      111,358       3,103      10,217        31,881      68,149       1,000      1,000
                                                                  N£JULES                  GROSS REVENUE            NET INCOME               TOTAL ASSETS          PAID·UP CAPITAL
                                                                    IrODO)                       lroool                (rtOIIl                  (rOOOI                   IrODOI
              INOUSTRV/CORrORAnON                             1112       IS.'               1112        ,9.,        19.2      ,9.,         1112        1111         19.2      11.,
firm Trletors
   Intlrn,tion.1   H.rvtl!ll'   MlCltocI,lnc.                 75,755            90,271     107,790      111,415      5,130       5,585      172,749    174,323     26,500     29,500

Household Eleetrtc C•• kNl, Etlui,....nt
  P. I. Manufacturing. Int;                                   48.335            55,352      48.519       55.491      3.915      4,426       44.787      40.386     24.061     21.873

IltIUletlll WiresInd c.lIIl••                               273,7.'        281,070         27••037      210,137        77.  110.&341 304,798           271,15& 127,392       121,912
    Am.rieln Wire& Clbl, Co.• lne.                          107.425         100.242        107,425      100.242        939 (3.0211   111,817           100.378  63.012        63.012
    Ph.lps Dodge Philippines, Inc.                          101.898        101,860         105,988       105.990      14571 18.214)   128.540          112,677  46,500        46,500
    Columbil WirlSand, Corp.                            64.418          63,968          64.624       64,405       296      601   64,379             58,801 17,880        12,400

MlJluftctllfl .nd Assemtlly of Motor V,hichs              3,147.13. 2••n,2.5              3,213.'"     2,928,114 1132.OSI) (373.1151 3.647.320 3.122.859 418,211             414,232
   Olltl Motor Corp,                                      1,125.029   915,729             1.163.724      937,456 1109.4091 (77,773) 2,269,299 2.288.714 43,000                43.000
   FClrdPhilippines, lne.                                   6DO,712   459,816               602,908       464,058    3,420 (146.7101    271.688    271.205 193,67.           193.674
   C,nlubang Automotive AlIOwen Corp.                       576,137   621.991               585,904      630.939    2,447 1102.7561 439,946      571,666    10,000            10,000
   Gener,1 Moton Pilipinas. Inc.                            575,193   591,955               575,193       595,041 (29,256) (47,4971 421,719      413.410    88,800             88.900
   Frlncisco Motors Corp,                                   233,109   244.695               247,295      259.630      665        655    196.595 228,986     £0,969            56.982
   YutiVD Corp,                                              37.759    38,099                38,564        39.060      77        166    48.073    48,878    21.776            21,776

Meul Stlmpi •••    P,,, •.•$,._""
                         11                 Milh
  Ensitl,ltd.                                               116.072            157,830      123,945      157.851    (5,2471    (17.4431      95.730    127.108

Motor V.hid. ",ru .od Accessories                           14&,297            137,711     148.705      137,941     (2,213)      1.&64     122,971     129.228     31,141     37,141
  Asi.n Tr.nsmisa:ion Corp.                                  62,424             72.881       63.729       72.979       610       1.197      50,794       52.072    12,446     12,246
  UE Automotivt Mfg., Inc.                                   42,329             28,510      42.432       28.617        190         100       36,200       30.765     8.675      8,675
  Spicer (Phils,) Mfg., Inc.                                 40,544             36.290      40,544       36,352     (3,083)       367        35,977     46.389      17.028     17,028

Motorcydn                                                   325,287        211,847         330,779      2••••• 0      1,984   4,45&        335,207     292.118     41,314     31.131
  MerJwui-Hond •• Ine.                                      104,014         89.064         109,375        89.632       107        78       200,318      159.432      8.864     8,850
  KlWlIS,kiMoton (Phils.) Corp.                              88,587          80,358         88,587       80,672       2,890   1.203         40,909       44,318     16,000    13.281
   V,zlki·Torrts M,nuf.cturing,lnc                           13.741         51.427           83,741      51.427      6,067    2,874         52.628      46,016       6,500     6.500
  Antonio-Suzuki Corp.                                       48,925         47,998          49,076        48.149         (801   300         41.352       43.049     10.000    10,ODO

',m'   Supplin U.d'or R.di., TV •
CommuniCitioa Ellull't. A,P8fI'"                            224,441        129,D84         224.441       128.451    17,863     20,'"     218.840       181.849      ~OOO      39.000
  Motorol, Philippines, Inc.                                135,522        119,151         135,522       119,151    14.036      20,690 117,324         102.781>    22,500      22.500
  Philips Componenu (Phi's,), Inc..                          88,926          8,933          88.826         9,307     3,817           201 98,616         49.054     31,500      16.500

Prim,ry C.lls •••d 8,ttIrift                                795.916        179,314         711,171       111,711    11,.79      31,488     418,581   462,431 107.125         107,125
   Union Carbid. Philippinn, Inc.                           543.646         469.586        545.407       470,697    52,482     37.0&2      272,762   233.574  60,000          60.000
   R,mur,lne.                                               132,033         114,256        132,033       114,256     1.520       1,673     123,013    141.304  28.125         26,125
   C. C. Unson Co., Inc.                                    120,306          95,471        120,739        96,813     1,877          771       93,821 87,553   19,000          19,000

R.dio , ••d TV TrensmittinL Sip.IIi.1       a Detect•••   ElIui,'t ••   ","'      ••••s
   MVR TV Picture Tube, InC.                                 64,572            41,1182      64.915        42.225       169         42       121.101      89.611    20,000     20,000

Refripf1lton, Dom.stic/lodudri,l;        R••••••
   (ElectriclNon .•I'etricl
   Gener.1 Hut Corp.                                        47,181             35,010       47.181        35,226        441          564    23.083      24.831      4,000       4.000

Shipbuilding (PIS•••••••. IIHf CIrge V••••                 111,214         108,640         171.117       108,091 (59,3141         177   178,058         873,237 352,843      350,243
   K.ppel Philippines Shipyerd, Ine.                        66.m             56,298           67,159     57,652     2,403         551   103.084         103,565  38,600       36.000
   Philippine Shipyard end EnginHring Corp.
   Cl!buShipyard & Engin.ring Works, Inc.
                                                            51.639                          55,085            -   158,9701              656.142         665,773 280,000      280,000
                                                            48.344             50.342       48.873         51,446    12,7471       13741 118.830       '03,m     34.243       34,243

Tin Contain."                                              146,081             40,599       141,645        40.599    1,521         95      141,508     35,200    30.728      1.,721
   Oriental Tin Can' Mltal Sh•• t Mfg. Co., Inc.           101,815                         102,391                   1,420                 110,551               20.000
   Quality Container Corp.                                  ",254              40,599       44,254       40,599         106          95       37.957      35.200 10.728       10.728

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