The term “magic elixir” refers to a potion that gives one powers and in modern usage it refers to a sort of magic that was the reason for an entity to rise. In this article I am not referring to something illegal but to one of the reasons for the rise of two of the most storied shipping companies of the Philippines where in their peak were contending for the bragging rights of being the biggest shipping company in the country.
Historically, the Chinese mestizo shipping companies were not as blessed as the Spanish mestizo shipping companies which antedated them in the business. The latter not only had a head start but they also possessed powerful political connections and that was very important then in getting loans from the Philippine National Bank (PNB) which dominated commercial banking then as there was almost no other commercial bank big enough in that time able to finance acquisition of ships. It was also crucial in getting ships from the National Development Corporation and earlier in getting surplus ex-”FS” ships from the Rehabilitation Finance Commission that was awarded as war compensation by the US Government.
A 1950 ad of William Lines (Credits to Phil. Herald and Gorio Belen)
Of the two companies, William Lines had an earlier start and it was also blessed by political connections – the founder of the company, William Chiongbian happened to be a powerful Congressman who in his run for the Senator missed by one just slot (and his brother was a Congressman too at the same time but in another province). Carlos A. Gothong & Co. had to start from the bottom as it began almost a decade later than William Lines in liner shipping. But later it was blessed by a good strategic relationship with Lu Do & Lu Ym, the biggest copra concern then when copra was skyrocketing to being the Number 1 cash commodity and export commodity of the country.
The first liner of Gothong & Co. (Credits to Manila Bulletin and Gorio Belen)
In the national liner scene, after its restart right after the end of the Pacific War, the strongest after a generation were the shipping companies that had routes to Southern Mindanao. Left behind were the shipping companies that just concentrated in the Visayas routes like Southern Lines, General Shipping, Philippine President Lines/Philippine Pioneer Lines/Galaxy Lines and other smaller shipping companies to Eastern Visayas, Bicol and the near routes to Mindoro, northern Panay and Palawan. Actually, in my totem pole of national liner companies in 1972, the Top 5 — Compania Maritima, Gothong & Co., Aboitiz Shipping+PSNC, William Lines and Sweet Lines — all have routes to Southern Mindanao.
What made Southern Mindanao the “magic elixir” of William Lines and Gothong & Co. when the latter was not even a liner company in the latter half of the 1940’s and William Lines was behind many shipping companies that preceded them?
In business, there is nothing better barring the illegal than a customer base that simply keeps growing and growing. And that was what Mindanao then was to the shipping companies Southern Mindanao. Before the war the population of Southern Mindanao was small and was practically composed by natives. That was before the government encouraged and assisted the resettlement of people from other parts of the Philippines to resolve what was called then as the “population pressure” (rapidly growing population in an agricultural economy with not enough land anymore to be divided into the next generation and there were no contraceptives yet then and the average number of children was five).
Northern Mindanao after the war already had Visayan migrants as it was just near the Visayas and the Spaniards was able to establish a strong foothold there even in the 19th century. But Southern Mindanao almost had no transplanted population and it is this part of the Philippines that experienced the greatest population boom after the war with what was called by the Moro National Liberation Front as the “colonization” of Mindanao (well, even some politician used the word “colonization” before that became politically incorrect). Where before in the 1948 Census the transplanted population was just a minority in Mindanao, in the 1960 Census the natives suddenly realized they were already the new minority and in the 1970 Census they saw they were beginning to get marginalized (Sultans and Datus who were once Mayors were even beginning to lose the elections).
This population boom, the opening of land for cultivation and the consequent exploitation of the natural resources of Mindanao needed transport and it was not by air (and not by road definitely) but by ship. And by this all shipping companies that were plying the Southern Mindanao routes benefited a lot. Of course shipping companies serving Northern Mindanao also benefited but not to the same extent as the Southern Mindanao shipping companies. And anyway the shipping companies serving Southern Mindanao were the same shipping companies serving Northern Mindanao (with exception of Escano Lines which has also routes to Northern Mindanao but not Southern Mindanao) and so the benefit of those serving Southern Mindanao were double.
If we analyze the biggest shipping company then which was Compania Maritima, most of its ships were assigned to Southern Mindanao. That was also true for the liners of Gothong & Co. (this company has a lot of cargo-passenger ships then to gather the copra for Lu Do and Lu Ym) and William Lines (which assigned 3/4 of its ships in Southern Mindanao early and Gothong & Co. of to 80% in 1967).
One will wonder how this small ex-“FS” ship sails all the way to Davao
Although William Lines started ahead of Gothong & Co., the latter vaulted ahead of the former in the 1960’s. I think the reason is William Lines relied too much and too long on the ex-”FS” ships and it was only in 1966 when they acquired other types. Meanwhile, Gothong & Co. acquired ships from Europe earlier and in greater numbers. That does not even include the Type “C1A” ships acquired by Gothong & Co. which were big ships and were really ocean-going plus a lot of small ships the likes of lengthened ex-”F” ships and a host of local-builds. In ports of call, Gothong & Co. simply had too many because of the need to gather the copra of Lu Do & Lu Ym which was exporting a lot (and which Gothong & Co. also carried).
For sure, Compania Maritima which was already the Number 1 right after the war also benefited from the growth of Mindanao. However, their subsequent collapse in 1984 at the height of the financial and economic crisis then besetting the country is of another matter. Sulpicio Lines, the biggest successor company of Gothong & Co. also benefited from Mindanao after their creation in 1972 so much so that later it became the biggest shipping company of the country in the 1980’s.
What happened then to the shipping companies started after the war that just concentrated on Visayan routes? Well, by the 1960’s Southern Lines and General Shipping were already gone from the local scene and a few year later Galaxy Lines, successor to Philippine President Lines, the local operation and Philippine Pioneer Lines was also gone. And the smaller shipping companies like Escano Lines, Bisaya Land Transport (this was also a shipping company) were just in the fringe and barely alive in the 1970’s like the shipping companies that just concentrated in Bicol, Samar and northern Panay. That was also the fate of the shipping companies that was concentrating in what is called MIMAROPA today. After the 1970’s practically only batels survived in the last area mentioned.
Meanwhile, Gothong & Co. threatened Compania Maritima for Number 1 before their break-up in 1972. Later with the downward spiral of Compania Maritima, Sulpicio Lines and William Lines battled for Number 1. And when Compania Maritima quit and Aboitiz Shipping Corporation also quit Mindanao, Sulpicio Lines (the biggest successor company of Gothong & Co.) and William Lines further benefited. Actually, no shipping company that did not serve Southern Mindanao ever became one the top shipping companies in the country (that was before a lot of liner companies were culled in the crisis of the 1980’s).
That was the importance of Southern Mindanao for the shipping companies of the country. William Lines and successor of Gothong & Co. Sulpicio Lines ended up the Top 2 in Philippine shipping. Know what? They were the only survivors of the Southern Mindanao routes after all the rest quit (of course, Aboitiz Shipping came back later and there were others in container shipping).
Now, there are no more liners to Southern Mindanao, funny. But, of course, that is another story. The magic elixir dried up?