THE CHINA MAIL, MONDAY, JUNE 17, 1957.
TRADE and COMMERCE SECTION
4. Pagë
ANTI-TRUST RULING CREATES STIR GRADUAL RISE
Alarm Replaced By COTTON CONVULSIONS ON
Consternation As Corporations Wait
New York, June 16.
Sober second thoughts on the Supreme Court's history. making anti-trust ruling against Du Pont-Coneral Motors continued to overshadow all other business news in the United States this past wook.
The alarm with which the financial community greeted the Court's sweeping and revolutionary new interpretation of the Clayton anti-trust law turned to consternation as corporations weighed the implications and possible consequences of the ruling.
per your
been
Wall Street, on the basis of "The total number of mergers private advices from Washing of all kinds, mall and large, in ton, swung to the beller that recent years has
sub- the Justice Department Islantially less than it was 30 preparing to use the decision n years go, when 800 to 1,000
"big slick" which not only mergerm
were being threatens many existing mergers consummated........ but may completely change the diversification expansion and picture for large corporations.
The Court, in effect, opened the way for the government to challenge any corporation's pur- chase of stock in another corporation with which it does business when it found that Du Pont's ownership of 23 per cent of the
shares conunion. General Motors was a violation of the Anti-Trust Act,
No Doubt
:
of
There seemed no doubt that
decision decreased the
The chances for approval of the pro-
posed Bethlehem - Youngalow She apartment mother which already attacked despite the Long that the tie-up would in
than decrease
the Department of Justice has
contention of the two corpora-
Noisiest
GOODS MARKET
New York, June 16.
New business in the Worth Street cotton goods trade this past week de-
routine pace.
WALL STREET OVER IKE
By ELMER WALZER
New York, June 16.
OVER WEEK
IN COTTONS
By WILLIAM T. PLUNKETT
New York, June 16. Rallying tendencies In cotton futures gathered momentum gradually this past week, carrying most deliveries to new seasonal highs.
At Friday's close the list ruled 8 to 80 points -15 cents to $4 a bale-higher than the preceding week.
Late 1058 deliveries
ted to spearhead the riss 23 leved that because
con-parity. But some quarters be-
of small
This past week in stock exchange history will veloped at less than be remembered for two reasons: That billion-dollar
piece of pie that made the President Ill, and traders, taking a dim view on crop posibilities, plus the largo industrial shares ot a 10-month high.
the possibilities of new cotton exprata and my-arides,
ringe mandatory between 12 and 85 per cent,
elpating a possible 90 per cent of increased parity--United Press. to put the
The fourth week of inactivity, milimen feit, might Carty through the rest of June, and pocably until after the mill and Anishing plant vacations arc over in July,
Buyers limited new purchases needs with "The polley of the anti-trust to epot and all-in
individual orders on the small division of the Department of Buyer caution increased Justice has undoubtedly played a part in the emphasis that has as resale offerings of a few basis been placed by management on print cloths appeared at con-
cessions from the miil level. interial growth rather than on | mergers.”—United Press.
Week In
London For
Many
Months
London, June 16.
blunt new
Resale
not offerings were heavy, but they were enough to buying Interost Part of the cheaper second-hand offerings reportedly came from converters unable to get goods through finishing, plants before the vacation shukdown,
MAINTAINED
Milla meanwhile
firm front prices.
concluded
tend into next year. Buyer corridence
The President's illness gave the stock marketention at tila Congressional figure ultimately might a convulsion. Trading was so active on Monday high price supports would ex-with como quarters even anti- morning that tickers fell behind by 14 minutes. Sales for the day crossed three million shares for the first time since last Dec. 31. Prices fell 4 billion in valuation and came back 3 billion.
Industrial shares went through
a 10-point ore and closed well abroo their lows becauPE OF the from favourable reports White House. Next day the Ralls took the market soared. lead on the upside on Wednes day and industrials resumed They managed their top place Thursday
to gain a trille on Friday:
At the week-end the Dow"> Jenes averages showed indus- maintained trials at 811.70 up 6.18 points Manu on the week; ralio 147,27 up
facturers instated quantities 2.26; utilles 73.47 ON 0.07. available at resale were shallow and would be digested, quickly.
Some producers also incleated shipping directions against old orders made a deep dent ic
weeks. Since February when
Statistically, this has been the noisiest weekmill stocks over the past few
in many months. All-time highest exports and ditto imports if we ignore the pent-up post-Suez figures for January; highest steel production ever; highest coal; highest machine tools. Even Imperial Chemicals, shyest and most silent of the industrial giants, burst into speech with its annual report, veer development this past taking a full-page advertisement in the Financial repercusssion: Times. **1957 should be a year of high of the Court's action may activity.... 31
Cropse rathe competition.
week surved in ninpoint how widespread the
become:
Don 1.
Biclfugh, chief Yes, a noisy week, but *
you counsel for է Senate would never guess it from the Committee probing oll company Stock Exchange which ignored, controi of domestic crude olieraly, everything in print. pipelines, hailed the deckton as The index of leading Indus opening "new vistas of anti-trustrials opened the week: at 203.0 enforcement In the oll dustry."
11
2. A group of songwriters,
affillåted with the American Society of Composers, Author and Publishers,
cheered
the 150
decision - as uiding their million anti-trust Buil against Broadcast Musle Incorporatedi, a rival organisation owned by the
radio major
nelworks, and recording companies,
t
Encompassed
From oil pipelines to popular conge le a long jump, but the Supreme Court Paling en- compassed the distance.
HONGKONG STOCK EXCHANGE
Business
Our Own Correspondant
done on the. Hong- The Journal of Commerce, in Kong Stock Exchange this mod
ing amounted to opproximately editorial, pointed out that
$230,000.
Noon quotations and Justice Department's anti- trust actions have been levelled the morning's transactions: against huge corporations while Rharey Bayore Sellers Saleu similar mergery by small com- DANKB panies have been ignored.
the
"A very real risk.
IK Bank INSURANCEs
the Lobard newspaper warned, is that it SHIPPING (the decision) may give impetus Wheelocks to the view, already strong in DOCKS, ETC.
congressional
some
quarters, Dosk
that bigness is evil per se."
In a front page story, base
on interview with
corporation
executives and attorneys, the IK Land
sime newspaper amerled:
...
1033
1010
7.00
300
30
1.00 1000 10
44 4412
300 g 13.10
500 12 100 0 19.40
30 € 11
:
K. Whort.. Pvident (0) 13.30 131 ..., LAND, ETC.
Hotel 15.30 18
333% 30% (rta) 10.0 15.30 Humphreys
16% 18,70 "Expansion and diversification Realty ... 1,425 3.41 of large corporation izs
Le RUBBER
Amaix. ... 1.5215 1.375 1000 futuro
have may
bo accomplished almoot entirely Trent
...... 1.3215
1.45 through new capital Investmen s UTILITIES
Tram rather than through mergern→
tm
and closed practically unchanged at 202.9.
the mills were worried over the of foods in warehouses, the situation has changed to Ipaint where inventories now, as ono observer salt, "down to a reasonable level
After vacations. I was felt a
market of
CONTROL OF U.S. PIPELINES
with Senate vote
acreage reserve back in the soll
bank programme for 1958.
Existing стор uncertainties, created by unusually Inte start in the southwest, also goted to shape market sentiment,
HESITANT
New Orleans, Wall Street commission house and scattered buying found offerings limited: to scale up hedging and really- ing while sellers otherwise be came more hesitant pending Washington developments,
came
FALL
NEW TARIFF DUTY PROPOSAL
Melbourne, June 18. Manchester textile menu-
of
of
BARS plete duty exemption of British
OFF
The October 1058 delivery focurere are strongly opposed" rose to 33.20 cents a pound on to a now tariff duty sought by Friday to show
manufacturers, a cumulativo | Australian gain
225 points-11.25 a bale Samuel Ferguson, director BY HERBERT FOSTER from the season's low of 30,95|the Australian Association
cents, registered on April 20. British Manufacturers told the The December, 1950, contract Tart Board at week. Washington, June 16. BEST LEVEL
The staff of the Senate week, opening
on the Board this past
The now duty would cost two el 92.89 conts, shillings a square yard plus 23 subcommittee then moved up to 33.18 cents a per cent ad valorem, Standard Poors Index of 500 anti-trust stocks closed the week at its has callod on the Justice pound.
Ferguson sold the full British Technicians pondered At Department to conduct an probable support level for
will be best level since Aug. 20.
an the case against the tariff
the place before 48.15 It was up 50 cents from anti-trust investigation of new crop which will be deter- Sydney on July 10, but meso- the Board la the prevolus week, a rise in the control of U.S. oil pipe- mind after the August 1 crop time the Board should know that valization for the $2,200,000,000. It was off only lines by major petroleum report is issued. The support there were maty cheaptr rings $1.50 a chare or less than 7 companies.
level has been determined pro- British textlio lines, with which billion from the record set on
visionally at 77 per cent of Australia never could hope 13 In a report to the subcom- Aш. 2, 1956.
compete. mittee, the elaff said yesterday
SEEKING When the bod news of the the inquiry also should look into
Ferguson is seeking DI CON** resumption of the late-May President's liiness was out of the the interest of major oil firmne buying movement would alway the market rose on sin trucking companies. The sub- GOLD
textiles which Australia is un- underway. Executives believed favourable outlook for the re-committee took no immediate
able to produce economically. consumers still have the biggest mainder of the year in industry. action on the report. percentage of forward require-
the It ignored many items that
SACRED COW monis to be covered for
otherwise might have been cone
·strued as adverse, including o spcond half of the year,
The staff report called U.S. Moreover, military procure-move by the Justice Department oil companies a kind of stered prevent a merger of cow in American industry." In One factor in this stabilityments are expected to be a big to
market factor in the second half
moro Steel and Youngs-one stance, it said, President in the week ended June, 12, importers. may easily have been a decline of the year. Unfiled commit- town Sheet and Tube; a report isenhower had invited all im- madaly attributed to the ICY- milion
large quantities of the Justice Department would | porting firms lo
the Bank of annually. "determine" ed attitude in the belief that more inflation ments for is coming. A certain amount of cotton textiles will be awarded level its sights on at big all US policy on petroleum im- England. goo's was rising steadily. Retail in the next few months. companies* control of sipeilnes; | ports. prices may soon begin to tum commencing with the govern- a statement by William Martin, The staff also said the industry downward.
inent's fiscal year beginning on head of the Federal Reserve that had been more successful than not intend to any other business segment in July 1. Commitment all pend- the Board does
ense money at this time, lower obtaining immunity from pro ing for the military involves a
for several railroads; secution under large quantity of twills, poplins, tamninga
The anti-trusi and a statement by its head thatws. sateens and related fabrics,
Omelals of J. P. Stevens & the Getty Oll group will not be
The Justice Department bas
Middle East dealings were Company expressed optimism more closely unfled at this time. brought anti-charges against again fairly brisk but Far East about general textile-industry There were many items of various companies several times and South American contracts
New York, June 10. prospects for the latter part of
in recent years. news helplug individual shares
At least two were on a limited scale.
Row cotton exports By do- 1937, based on market studies such as a drug said to be help-grand jury investigations are in In addition, the De- which indicate low inventories ful in cancer cases developed by progress.
The absence of margin ham- | olination as reported I bales arting customers, and continued On Mathieson, report
bc-by the New York Colton Ex- dealings that partment accused major firms in perod arbitrage heavy retail sales of clothing, nevlon was buying into Schering 1933 of trying to monopolise tween London, Switzerland and change for the 1950-57 to June and other textile producta,
Paris.
11 were as follows; foreign trade.
The Landency
coln Britain market
irregular, the Continent fuenced by the French Govern-da inent crisis. On balance, prices Total for period"...... declined with Emited buyer same period last year...
excluding inter interest.----China Mail Special,
TOBACCO
Tobacco shares Auctiated a good deal under the Influence of the American allegations of the cancer menace, but they closed comfortably with im perial unchanged und British American up 1/- to 53/- com- pared with Its recent low of 30/-. Unilever way one of the few strong features with a gain of d. to 111/1,
SPOTTY
Spinneis reported Oils also fluctuated a good demand for cotton yarn.
a spolly Dyed notably Shell Transport tot yarns were hiked three deal,
American which on
buying cents a pound by one producer opened the week at 210 shill meeting a heavy demand from ings, rose to 217 shillings but outerwear manufactures, Else-, closed the week back at 210.where, however, the demand for Royal Dutch lost
combed yarm slackened. A slow-down also was noted in the carded yarn section follow- ing the buying spurt of two weeks ago.
Burmah Oll gained
while and
14 Brush Petroleum rose 1790.
Gold shares had short-lived burst of activity-inspired by optimistic Johannesburg.
FAIR DEMAND
Fibres were mixed, Burlap fabrics firmed with Calcutta buying and reports of a fair- sized dhuand In that market
Bethlehem
And nows that Dobeckmun and Dow Chemical were discussing Inerger terns.-United Press.
SEAMLESS
In its 44-page report, the sub- committee staff said the major oil firms also wielded vast power over the industry through their control
of 80 percent of the U.S. all pipelines.
The report bald the Justice Department's Investigation should determine whether
TUBE MILL companies se
OPENED
Sault Ste Marie, Ontario,
June 18. The world's first completely seamlessa sieci lube
British Government enjoyed from Argentina. An uncertain meelianised
to
a mir demand all week with raw Jule crop picture was an mill was opened here last Satur the medium and long-dateds ther stablising influence. day. gaining as much as 12/0 Ou Hemp prices were inclined 1.475
the sisal market Consols and War Loan closed ense, while 5000 ve 1.53
that much higher, The Financial cenerally marked time, Times index of gilts closed the The rayon, acetate and men ... 23.10 23.30 800 23.30 week at 83.72 compared with made ihres grey goods market
1900 23.20
ils 1057 high of 6950 on continued firm with a fair amount of business being · done
133
102 104
19
If the Supreme Court's decision Star Ferry in the Du Pont-General Motors Yanati
is as sweeping a mary C. Lagħil (D) 10.00 anti-trust lawyers believe.
cn.30
*Mergers
#ectric
30 301 Micro E. 2. 10.10 10.00 Telephone 2816 20.70
"Morgers of smaller com-INDUSTRIALS panica vertical, Horizontal Conent
Amoy Cap 3412 and conglomerato...will continue STORES, ETC. and, presumably, will not be Dlier. attacked by the governinent. Won
COTTONS durporations, Textile But the major knowing that they may : FROG || Mangung defect in odeity time-consuming MISCELLANEOUS
Entert. suits, are likely to rely on Vibro inidinal growth, rather than on INVESTMENTYS meryka, this the politlesi | Allied
1. & rt. climate changes....
Home time, the growth of thaler corporations has beert carried out almost entirelý through internal investmerite, rather
through
abotilaillons,' FiTimis, 3 when.
ecutiol 40
the major their pipeline deny
competitive markets to independent crude bil producers aski ræfizer?,
COMPLAINED
The staff complained the Des pariment rever had looked into the leading ell companies control of the pipelines,
The staff noted that, Attorney. General Herbert Brownell Jr. the gave 15 all companies immunity The mill, operated by Mannesmann Tube Company, has
for the anti-trust laws of their formation of been halled by industries as an
the Middle East Introduction to the age of indus- Emerychey committee to supply tial automation.
oil to Europe during the Suez Canal crisis. The 20 million mechanised Dollar stocka werc marked market levels. Many standard mill will price sandless 4% to 15.00 up in accordance with Wall goods wore reported sold up for 10% inch tibes from siecibaramey General, should have the 30 Street prices but they were not the third quarter. Since supplied by nearby Alroma Steti Power to grant such immunity. It called two impending. opsed in great demand; the premium converters have covered for Corporation for the U.B. and to vital to be left to the dis- heavily, some Canadanian Oll and Gas Pipecretion of the Attorney General." 2000 closed 7 per cent compared word rather
with 8% per cent last week.quarter, hand offerings during line market, United PresA.
the next few months,
66 44 103 February
18.00
20.00
1500
200+ 2015
14.10 14.00 300 14.00 11.70 11.30
4.00 4.05
B.05
2423
18.00
4.00
10.30
The Bank Of France
́Statement
Parts, June 10. The Banic of France interent for the
endod June 0, week reads as follows:
Exchange Rates Thier
Generalalotric decided to muknele wie. Done in the local DEA APURED TRAD enter the computer fék, It bullt | ubertatek MENDATAY
Ha qwn plant and is own. U2 Machine) (pur 31) Establikahan disit thủ, ground UD)
PRU
Tulsi oftér purranales Gig)=8 - bekende · abroad 1515 | Adymyco: En alabitians
Total bilde eisovniąd
United Prom
16 said, Congress, not the Al
The staff said the first
out
cast
Present at the opening cere-stemmed from Eisenhower's re-. In raw wool, priocs continued nonles last Saturday were Trade commendation that oll import-
in all activo foreign
C. Minister Mr
Howe,ing companies D.
work markets. Domestic levels were President
of the parent Man voluntary agreement to limit Arm and generally unchanged.nesmann, A. Q, Wilber Zangen petroleums Emporis.
of Dusseldorf, and Dr. Hermann By his act, it added, the Winkhaus, executive Vice-President is giving the
which Preskiont...
porting oil companies constitute brily w portion of the
mile area, is oprsjed by 20 man of the United States In a push-button operation | ment, it- mid.. geared to produce 226,000, tons The second case involved the of, tibes annually, - United | dil companies to build a jointly- Priss.
operated pipeline, from. Iraq...to the Medferranean. While the. dipeline was vital to the warld, it noted that construction was left to private oil companies
The Bank Of England The plant, spread over a half-industry to determine the policy.
Statement
London, June 10, Prane
The Dank: of Drtland Slated 301,306,203,496
ENTRU SIEGEN | racht for the week ended June
-12, reade us follows: 1,
Nobra in circulation....19ft T Publio dépos
13,371,000,000
market
▪་་**
1939 Current auments and
18,107. 21:
when aller compelliere de pe per 1001
this known in
Singapore (itemtia)(A)
have
NAMESAKES
· Aiavoon-1" Buneath; 7, DBS
govern-
free
Gold barg
Zurich, June 15.
were firm tady porters which coat Australian
of
The level later in the week, which had been the highest fully maintained as buying in- since the Suze crisis, was not terest fell off due to the high prices.
Was
on the
Ollver Scott, • customers ogent, sold the dutice were being sought by local manufacturers as a protection against Japanese, British and other textile ex-
Shar 211 Australian pounds
This sum, he said, is ridicu-
the Australian lous, because industry employs a total capital of only 20,000,000,--United Press.
U.S. RAW COTTON EXPORTS
950.851
3,403,004
2,306,736
300,341
7.110.732
1330,122
-United Press.
TYPHOON MAP
With Latest Amendments
$500 MOUNTED
$4NMOUNTED
Ward no governerne zaklanc South China Morning Past. Ltd. -
The report urged the Jurtles Debarduint la kuku mation in thesa bogata inotu, before, the |compuriins: copplete 'Shali) plans.:
---United. Prods.
HONG KONG & KOWLOON