Founded in 1937, Davao City owes a big part of its growth to Davao Light and Power Co. (DLPC) whose existence has been beneficial in its rise towards urban progress. This industrial icon has been a primary factor that has steadily pump-primed the city’s economy and is the principal feature that has drawn waves of migrants to Davao. Through the maelstrom of World War II, the adversities of martial law, and the threats of insurgency, DLPC has witnessed the growth of the old township from an obscure agriculture hub to a booming region in the South.
Originally founded as Patrick Henry Frank, Relatives & Associates on Sept. 24, 1929, DLPC was registered on Oct. 1, 1929 with the chief purpose of serving the central section of Davao. It had six American incorporators, three each from Manila and Davao. Each share cost P1.00 or a total of 831, worth P83,100 in subscription or P20,000 in paid-up capital. P.H. Frank and wife Anne of Manila got 410 shares, while W.H. Gohn, a hemp planter, and wife Mary also got the same number of stocks. H.S. Peabody got 10 shares, while J.M. Murphy got a token of one share.
The power firm was registered that year along with Mindanao Sales and Services, a flagship project. The idea to establish an electric firm was not Frank’s alone; his relatives and confreres also helped. Given the presence of the Japanese investments, it was an attractive prospect.
The outbreak of war in Europe and China in the 1930s had a jarring effect on Frank’s decision to continue operating the power plant. As an ex-soldier, his access to latest intelligence afforded a clear picture of how the country would be in case Japan attacked the Philippines. For this reason, he wanted his firm sold and to move out before trouble spilled over in the islands.
Another factor that influenced him was his family’s intention to repatriate all personal assets to the U.S. With the Philippines now under the Commonwealth, he was worried the Philippines would issue emergency decrees, freeze bank deposits, and be drawn into a conflict.
The breakout of war, in effect, rendered all DLPC’s power plants damaged. Heavy bombardment by Japanese and Americans destroyed the machinery. As a result, the city was plunged into darkness, and the future of the company recovering from the tragedy was bleak.
Frank also feared that under an independent Philippines, DLPC would be subject to state regulation and its ownership as a focus of nationalization. In consultation with his sons, P.H., upon the urging of Don Francisco Suche, a Spanish engineer, decided to sell Jolo Light and Power Co. and Cotabato Light and Power Co. to Don Ramon Aboitiz, a Spanish ilustrado. On Aug. 23, 1941, Aboitiz and Suche met with Frank to discuss the sale of DLPC. Still, the founder was hesitant to seal a deal given the optimism he harbored about Davao’s future:
‘[Frank] believed there was a tremendous business opportunity in Davao—a large growing city, and the possibility of business several times its present volume. He had developed a company that had a foothold in one of the most important economic regions of the Philippines. Still, he saw uncertainty in the political situation and the possibility of war to the degree that he was transferring assets to the United States, as were his sons.’
Aboitiz and Frank concluded the sale in November 1941 and agreed to sign the deal on Jan. 1, 1942. But the war intervened. As expected, the conflict ruined most of DLPC’s plants and facilities. What was left was a damaged second-hand 300-HP Fairbanks Morse Diesel engine. Despite the sorry state of the equipment, Aboitiz and his co-investors still pursued the negotiations. Don Ramon Aboitiz, Relatives & Associates, on July 25, 1946, through the efforts of Suche, now the resident manager of Ormoc Electric Light Company, consummated the deal with Frank. It meant the transfer of the municipal franchise and the controlling interests in the firm.
