Eastern Textile Factory, Manila

Overview

Eastern Textile Factory was a major textile manufacturing facility in Manila, Philippines, employing 2,000 workers during the 1950s-1960s. For Jesse and Betty Chan, Eastern Textile was more than just employment - it was the center of their professional and family life from approximately the mid-1950s until their relocation to Taiwan in 1968.

Significance to Family

Jesse Chan’s Role

Purchasing Manager:

• “I just buy things. Everything the factory needs, I’m the one who buy it.”
• Senior management position
• Responsibility for all factory procurement
• Critical role in 2,000-worker operation

Board of Directors:

• Served on company board
• Had ownership stake or shares
• Involved in major business decisions
• Part of executive leadership

Basketball Team Owner/Manager:

• Jesse was owner/manager of factory basketball team
• “I’m the owner. I have the place there.”
• Hired workers to play basketball
• Also hired professional basketball players
• Team competed against other companies’ teams
• Sports as employee benefit and company pride

Betty Chan’s Role

Payroll Supervisor:

• Supervised 4 people
• Prepared pay envelopes (with cash) for 2,000 factory workers
• Paid every Saturday
• Handled Petty Cash
• Used her mathematics degree
• Critical administrative role

Shared Workplace:

• Both husband and wife working at same factory
• Unusual for the era
• Professional partnership alongside marriage

Company Housing

Built House for Family:

• Factory built house for Jesse and Betty before John Louis Chan was born (1965)
• Moved from Santa Mesa Compound to Eastern Textile housing
• Company benefit for senior management
• Rose Chan Loui was born at Santa Mesa (1960), later children at new house

Board Split (1967)

The Crisis:

• Board of Directors split into two factions in 1967
• Major conflict over company direction
• Jesse’s faction vs. opposing faction

Jesse’s Faction Decision:

• Decided to sell shares at par value plus 20%
• Cashed out rather than continuing conflict
• This provided capital for Taiwan move

Consequences:

• Prompted decision to leave Manila
• Friend invited Jesse to join business in Taiwan
• Factory board split was catalyst for 1968 relocation
• Ended Jesse and Betty’s 10+ year Manila careers

Memorable Incidents

Jesse Disarms Armed Worker:

• Worker came to borrow money against his salary
• Jesse refused
• Worker later came to gate with a knife, wanting to stab someone
• Office called Jesse
• Jesse went to gate and talked to the worker: “Give me the knife”
• Worker gave Jesse the knife - crisis averted
• Betty: “Daddy’s really brave. He is over brave.”

This incident shows:

• Jesse’s authority and respect among workers
• His bravery and conflict resolution skills
• Dangers of managing large workforce
• Jesse’s “over brave” personality in action

Factory Operations

Scale

Employment:

• 2,000 workers
• One of Manila’s major employers
• Large-scale manufacturing operation
• Significant economic presence

Payroll:

• Cash payment system (Betty prepared envelopes)
• Every Saturday payment
• 2,000 individual pay packets
• Required 4-person team under Betty’s supervision

Basketball Team:

• Employee benefit and recruitment tool
• Hired professional players (company team in league)
• Jesse as owner/manager shows senior position
• Corporate sports common in Asian business culture

Management Structure

Board of Directors:

• Jesse served on board
• Multiple factions (at least two by 1967)
• Stockholders/owners involved in management
• Split indicates significant ownership disputes

Senior Management:

• Jesse as Purchasing Manager - senior role
• Betty as Payroll Supervisor - mid-level management
• Both in white-collar positions despite factory setting

Historical Context

Textile Industry in Philippines

1950s-1960s:

• Textile manufacturing was major industry
• Import substitution policies encouraged local production
• Chinese-Filipino business community dominated sector
• Large factories with thousands of workers

Labor Relations:

• Cash payment system (workers didn’t have bank accounts)
• Saturday payment traditional
• Company housing for management
• Company sports teams for employee morale

Chinese-Filipino Business

Eastern Textile exemplifies Chinese-Filipino business culture:

• Chinese ownership and management
• Filipino and Chinese workforce
• Traditional paternalistic management
• Company benefits (housing, sports teams)
• Family members working together (Jesse and Betty)

1960s Economic Challenges

Factors Leading to Board Split:

• Economic pressures in Philippines
• Political instability (approaching Marcos martial law in 1972)
• Factional disputes common in family businesses
• Chinese-Filipino families hedging bets (some staying, some leaving)

Migration Wave:

• Many Chinese-Filipino businesses divesting
• Families moving to Taiwan, Hong Kong, USA
• Jesse and Betty part of broader pattern
• 1968 move to Taiwan coincided with others leaving

Impact on Family

Professional Foundation

Jesse’s Experience:

• Senior management in large organization
• Procurement expertise
• Board-level decision making
• Labor relations
• These skills transferred to Taiwan businesses

Betty’s Experience:

• Payroll and financial management
• Supervisory experience
• Cash handling and accounting
• Team management
• Used mathematics degree professionally

Financial Capital

Selling Shares:

• Par value plus 20% gave significant capital
• This funded Taiwan relocation
• Provided seed money for Jesse’s businesses
• Converted ownership stake to liquid capital

Social Network

Happy Dreamers:

• Jesse’s social club likely connected to factory community
• Betty’s brothers (Uncle George, Uncle Henry) in same business circles
• Professional and social networks intertwined

Decision to Leave

Push Factors:

• Board split made environment untenable
• Conflict with other faction
• Cashing out was exit strategy

Pull Factors:

• Friend’s invitation to Taiwan business
• Opportunity to be business owner vs. employee
• Taiwan’s economic growth
• Better long-term prospects

Legacy

Career Trajectory Launched

From Eastern Textile to Taiwan Success:

• Management experience → Multiple businesses
• Employee positions → Business owner
• Purchasing expertise → Real estate development
• Financial skills → Running bakery
• Board experience → Entrepreneurial decisions

Educational Investment

Working at Factory Funded:

• Children’s expensive education at Taipei American School
• All four children to US universities with scholarships
• Rose, Meg, Louis, Michelle’s success built on this foundation

Rose Loui’s Birth

Personal Significance:

• Rose Chan Loui born 1960 while parents at Eastern Textile
• First years in company housing
• Factory period was young family time
• From Santa Mesa compound to factory house to Taiwan

Connection to Later Events

1967 Board Split → 1968 Taiwan Move → 22 years Taiwan success → 1990 LA move → Three generations in USA

Eastern Textile Factory board split was pivotal moment:

• Ended Manila chapter (1957-1968)
• Launched Taiwan chapter (1968-1990)
• Enabled entrepreneurial success
• Funded children’s education
• Set family on path to USA

Without board split, family might have stayed in Manila indefinitely.

Research Questions

• Exact location of Eastern Textile Factory in Manila
• Who owned the factory? Names of other board members?
• When did Jesse and Betty start working there?
• What were the two factions fighting about in 1967?
• How much money did Jesse get from selling shares?
• What happened to the factory after 1968?
• Did factory survive or close?
• Address of company housing where family lived
• Names of other senior managers
• Details about basketball team and competitions
• How did Betty get the payroll supervisor job?
• Did Betty work before having children?
• Factory employee Cesar Javier (attended Betty’s 80th birthday) - role and relationship?