RANSPORTATION
Hamburg Spearheads Comeback On
HAMBURG WILL CONTINUE VAST DEVELOPMENT
North Atlantic "Run
AMBURG does not in.! [NDER a new пате, Hond to apply the brake Hanseatic, and flying
THE CHINA' MAIL,
TUESDAY, MAY 27, 1958.
NO TAX CUT
What Has The Bank Rate Done? Reduction Was Termed Profit-Taking "Technical', And Makes Stops Upsurge Very Little Difference On Wall Street
From RONALD BOXALL
London, May 26,
to its manifold port develop the German colours, the It becomes more and more difficult to understand just what ment projects as it is sure tormer Canadian-Pacific to overcome last year's un-Steamship passenger liner precedented post-war fall-off Empress of Scotland will In cargo turnover.
enter the North America line service next July,
Mr Ernst Plate, for the past four years Hamburg Senator for
With the purchase of the the Port, expressed this opinion | 26,313-ton vessel, Hamburg--for Ju a forewell message before re- the first time since World War assuming his position as general may again enli a trans- manager of the Hamburg har-Atlantic passenger ship truly its bour Transport and storage com- own, and its citizens are proud that their centuries-old on- Last year, cargo handled in scale tradition is spelled out in
the ship's name.
pany.
Hamburg port
decreased by 800,000 to 20.4 million tons from the 1900 total of 27,4 million ACQUIRED
tros.
FALL OFF
a
I
Built in 1030, the vessel was acquired insi January for a sum Plale According to Mr
the of one million sterling by Greek fall-off demonstrated the diff-shipping magnate N. Vernicos- Home cult competitivo
Eugenides, president of position of
TC- port robbed
natural Lines, New York, for his of its
com- the Linterlons in
East and rently founded Hamburg drastically changed pany, Hamburg-Atlantik Linie, facing traffic pattern in the West,
major
widespread Eastern Europe,
Contrary to the port until practice of favouring "ags of client of Hamburg
Mr Vernicos- the Iron Curtain slammed down, convenience", now pave ever increasing pre- Eugenides, who in the nephew ference to Pollut and East Ger- and adopted son of the
a harbours,
4
Lici.
it is that authorities hope to achieve by minor alterations in the Bank Rate. If last week's reduction meant anything at all it was certainly not made clear in statements that 'accompanied it.
per
New York, May 26.
Late profit-taking put a crimp in the Stock Market's surge toward new highs today, Volume eased from Friday's pace,
The rails, helped by Standard Brands
Standard Oil of Cal. favourable Senate Commerce Standard 01 of Ind
Committee recommendation to Standard Ui of N.J. help that Industry, retained teep Rock Toronto Es
Sterling Drug Co. part of their cariler" galns and Bickely-Van Camp. finished higher as measured by Studebaker-Packard Corp.
Sunshine Mining the averagCA.
Awift & Co. Текая Со
Steel issues fost most of their carlier gains despite an estimate of higher sleel production again
Vubiles eased. this week.
Strong Spot
Textron inc.
Tide Water Ann. Oll Time Ino,
Twentieth Century Fox Film
Union Carbide
Union Oil of Cal.
Union Pacific Railway
United Aircraft United Gas Corp. Motors generally added small.. Foi "u"
U.5. Gypn.m Tyres had few .. Line Co. fructions. strong spots. The bost gains in S. Bubber the list wera chalked up by US steel issues not used in compiling the Warner Bros.
The Bank Rate of $14 Ocially it was a "technical" The time has come to put tha
implying move
no general Bank Rate in its true perspec-cent gives it the necessary room It is still high Blackening o! Government's five,
the for manoeuvre, Essentially, it is
"disinflationary" effect it Interest rate on which all others enough to be enemie policy. In
And as we but low enough-In view of will make very little difference. ultimately depend, he Stock Exchange had antt-know the amount of money that what has gone before-to per sipated reduction and discounted is borrowed and spent depends mit a rise if things go badly it. As far by the general pubile upon the price that is charged wrong for sterling later in the is concerned nothing has change for the privilege of anticipating year. This is a generally accept- ed except that bunk overdrafts | the future Income-whether cd view and it implies that the will ba slightly cheaper is the company's future profit or present high Bank Itate cannot cheaper but still almost Im a private
Individual's future prevent the crisis from happen- possible to obtain.
sainty.
The real importance of last To some extent that current rate of interest influences the week's reduction, in my opinion, averages.
Steel, Bethlehem amount of borrowing. It vitally is that it finally exploded affects one side of the familiar Bank Rate myth. We ve inanished the session with a small technical age and we should be
gain, led the market in tum- equation of supply and demand,
careful not to pay homage
over, followed by American the wrong Gods-Express.
Motors, V.S. Steel, General American Motors, Jacobs and
It used to be argued that the nan effects of Rhifts in the Bank tule was psychological. It was a traffic signal flashing red for "clop" and green for "go." But who or what should obey the injunction was never very
clear,
Hold Good
borrowed money:
But does it have this influence The blame for all the mis-
In practical sense? Many understanding there has been
seriously doubt 11. about use and purpose of the economists
In full spałe Bunk Rate lies with people res-
When Inflation Homeponsible for explaining Govern- price is too high to pay for When defla- rent policy. Admittedly it was rat an easy task tu popularisetion is rife as it was in the thir- something as csaictic as the ties no Interest rate is low induce people to theory of monetary policy. But enough to the Bank Rate should nover borrow money and spend 1. have been represented as Admittedly these are extreme panacea for all nations' economia examples, but the principle holds good at any level of economic Activity. The Bank Rate may follow but it cannot lead. And this is a recognised fact that the
Government's British
Rn1}-
Lines' founder. decided to operate the Hanscutle under the On the other hand, rival West German dag instead of register European porta attracted a sub-ing her under Panamanian law stantial portion of cargo busi-ins in the case of the Germyin- ness for being closer to the chartered AS Italia, another Alfanile and variety of other Home Line carrier. reasons- situation aggravated by the current low in traffic.
He is of the opinion that the is. freight
Ger- goodwill connected with man trans-Atlantic tradition will compensate for the loss of financial advantages accorded by "cheap" ship registers.
CEMENTING
Hamburg, however, would overcome these difficulties, fur- ther cementing its position In development of the European
trade, Mr Plate asserted.
general
overseas
Own
UNDERGOING
At First
ing.
the
HONGKONG
STOCK EXCHANGE
to
Bbares Buyers Sellers Bajes
BANKS lik Bank 70214 70114
20 70715
88298
Radiator.
which
291,
ET
4916
AP
| Westinghouse Electric
Western Unioa Tel. Co, West Va. Pula & Foyer .... 3735 Woolworth
-United Preu International
Washington, May 26. The White House an nounced today that Presl dont Elarnhower had de- cided not to ask Congress for a tax out to counter the roosion at this time.
The announcement said the President would ra. commend that corporation *and excium taxos be main- tained at the present laysia.
Unlasa the present tax law la extended the exolse taxon will expire - auto. matically on July 1- Rauter..
Short-Term Money
Washington, May 20.
Stats
nt
an
The price the "United Treasury pays for short-term money declined to the lowest level in about four years when the Department today sold an issue of 91-day bills average price of 0.035 per cent. A short-term issue was sold by the Treasury nt 0.834 per cent on June 24, 1954. Last wock the ανατοπο rate Was 0.031 per cent. That too was the lowest rate In almost four years. -Reuter.
Negotiations
Akron, May 20, The AFL-CIO United Rubber Workers Union announced that wage negotiations will begin on
Exchange Rates June 19 in Canton. Ohio, with
Bukind www done in the local
Erkat unofficial exchango morning at the following rated:
U.B. dollar (per $1) Stering notes per £11 York Stock Exchange Australlen notes, iper £3)
shares Indonesian rupiah (per 100) was 2,500,000
New York Stock Exchange bond volume was $3,380,000.
American Stock Exchange volume was 830,000 chaves,
New volume
Of the 1,185 issues traded, Stam tical (per 100)
Hingapore (8)raita) 487 advanced, 410 declined.
Dow-Jones closing averages
were:
30 Industria
20 rails
15 utilitie
05 stocks
40 bonda
Comm. future price index..
Closing Prices
All Chalmers
A Brake Shoe American Airline
American Cable & Radio Corp American_Cymernic Co. Amor de Fectric
„Podizan
706 Am. Gan &
Our Own. Correspondent At Ars, changes in the Bank Rale produced desired shock fatien policy [an not
Busine done on the Hong- effect. When I went up public- | depend upon influence that can | kong
រម Stock Exchange spirited people began to search be exerted on the cost of bor-morning etnot:nied to approxi-Alden Ine. Acy, their conscience. When it went | rowing the Bank Rate. It hou
mately $487,000. Noon quota-Allied Chemicals down the pallon gavo a sub-to be backed with all sorts of
tions and the morning's trans-Alled Mills Inc. other measures ranging from actions were:- The Hanseatic is now under-conscious sigh of relief.
high taxation to instructions to going a major face-lift the
But gradually the effect begun bank managers to burden their In doing so, the primary inamburg-Howaldis..yards which to wear off-partly because the bearis pulse-us had always been the will trim off one of her threo
human mind cannot remain per- ese-would have to come from stocks, streamline her bow and
But the Bank Rates does have manently in a state of shock but its uses as we (urther increase in its
aw last Septem- enlarge her cabin space to ne-
mostly because the supposed liciency, he said.
commodate 1,150 tourist and 00
mystical powers of the Bankber. It did two things then. It Hamburg was not prepared to first-class passengers.
Rate did not square with facts, showed the British Government light and it in a courageous working but recept. the
quo, idly
Firat - clos accommodations The signals were
slopped the run on the pound.
INSURANCES watching traffic switch to neigh will be moved to the completely traffic still got snarled up. The Brat was important because Lombard bouring ports in East and Westtemodelled boat deck, and alr
that Il shower
the Brillsha XD but would remain
An klen that national econy competitive
to buhorities were delermined conditioning will be installed in
DOCKS, ETE "by being better und faster and all cabins and other rooms. could be kept
1 pre-
Dock E determined
Bubile put the good of economy before course by consequently cheaper stil for Its
Provident,
(0. cutiomers."
The Hapeg
travel shifts in the Bank Rate tell into political popularity. The second Lloyd
was vital because it reversed the
Wheelock Inevitably, when a Regrettable us the 1057 agency has been appointed the disrepute.
Une's general agents for Get- real criais arose as it did last flow of gold and dollars and sent
reserves souring. really September, something
LAND, ETC. HK Hotel. But it was not that rale that dramatic had to be done to bring the seriousness of the could be held for long. For one to the nolice of the thing it added tens of millions situation
status
cft might have been, it had the Leneficial, positive Effect of many, rallying the people of Hamburg tu still stronger efforts.
HYDROFOIL SHIPS
A POSSIBILITY.
120-TON
hydrofoll
NEW TYPE CARGO British public, and demonstrate of pounds to interest charges on
BULK CARRIER
THE 15,500 deadweight
Ttens Noordwijk is one devaluation. Since then there
A merchant vessel the present.
man
Interest Rates
East Asia.
MK Land,
Humphreys
GES
41
11.60
5:00
0.10 0.15
4
1000
10.10.20
33 470
1200. #
300
1.30
18 10.40
-1:200
Am. Home Prod. 13 Am Mach. & dry American Metal American Smeking Am. Sugar flef,... American Tob, "B" Anaconda Copper Astuvo Steel ........ Armose..... Allas Cone. Mirinst Hadwin Lima-ú tutti. Baltimore & Ohio
La
Beneficial Finscr
6.10 Bendix Aviation Corp. 0.55 Denguet Cone..
Bethlehem Stool
Boeing Airplane
19:10 Borden (The) Co.
500 ve 19.19 Burrough Add Machine
Canadian Packie R.
BAR Case (11) Co.
Cat. Tractor
150 w
50
00
17.30 177 600 4 17.40
27 27.20
10.00
Celanese Corp.
CIT. Financial Corp Chano Manhat. Barit Chrysler Motora Cluet Peabody Colgate-Palmolive Co. Conmercial Credit Commonwealth Elee.
300 21.30 Conralidated Edison
Continental Dil of Del. Crown Zellerbach
20.49
24.30 20.10 133
600 4 20.
32 22.40 2500
INDUSTRIALS Ceant
FOOD
1341
Amoy Can STORES, ETC.
IT
Cuban Amer. Sugar Diamond Alkali
Diamond Match Co. Dow Chemical
22:20 Dupont de Nemours 300 2.20 Eastern Airline Eastnian Kodak
to informed opinion abroad that Government's own loans-which Realty... So the are footed by taxpayers, And It vis it was under control,
Thor....4 23 23.10 1122 4 Pank Rate was raised a full two started a rush of "hot" money
Into Britain. per cent to seven per cent.
Yaumalt
Festy It did the trick and probably from another
C. Light*** 194
(0) ..... saved sterling
Excurly... When Interest rates are higher | Macao have been two further changes
London
In other Electrio. than of the most interesting in the Bank Rote-both down-in cargo vessels constructed in ward and the present rate is nancial centres, foreign funds Telephone
But down to get the benefit of a according to the official spokes-higher return. But it could just transport 300 passengers at owners, she represents an
on these matters, both as easily flow out again when And it and the situation changed. moves technical speed of 60 to 70 miles an entirely new type of bulk were
general this coincided with a period of implied
any hour appears to be a dis- cargo carrier developed by neither
Dairy This is stably would, it could cause an- tinct possibility, the United the Hamburg ship-builder, slackening of the Government's weakness in sterling, as it prob-
the economic policy.
exchange crisis of last States Maritime Administra-Blohm and Vesa, over
feared to disinflation and all its other tion has announced after past two and a half years. other paraphemalla freezing September's proportions.
As autunn is a period when of bank advances, vetting of preliminary studies of the
As unusual arrangement
public issues and to on-remains seasonal influences are working
sterling, against
the British hydrofoll principle.
holds give the ship "softer" sca-
Intact.
Government had to give liselt But in the mcontine "mysti- elbow room The Commission piso has an- going qualities than the
to take remedial should it become que" of the Bank Nate has dis-action nounced the award of a $75,000 type of bulk carrier.
Even necessary in a few months' time. contrael to an aircraft corpor-feature is the now system
the least-informed members of At the same time i wanted to tests on the hydraulically operated hatch appeared without trace. practicality of using hydrofollscorers, Installed by the Inter
the public no longer regards it as keep a flow of "hot" mæney inte Uonal MacGregor Organisation. in largo ships:
panacea. Experts differ sharply London down to a minimum. So
it reduced the Bank Rate. on its usefulness.
tion to continue
of
usual Another
of
In the hydrofoil system, wing-i The MacGregor organisation Hice structures are Axod to has patented a bulk carrier de atruls below the hull. As speed sign along basically similar lines isatied, the ship rises out of and nine ships, are expected to built in Yugoslavia for the water supported by the foils, be
Greck
Swi With the 'hull riding above aur Yugoslov, face disturbances, resistance is owners. lowered, speed increased, fucl
and
Two definite contracts
Casumption cut and comfort Just been placed by Kulukundis increased.
NOT NEW
* According to Mr C. G. Morse,
Maritime Administrator, use of hydrofoils is not now.
havu
interests through a Swiss asso ciate,
The German Co Shelves
United States Navy is currently experimenting with them oo
naval vessels, and 1 studles Shipbuilding Plan
Maritime HAMBURG Amerika
Indicate the fossibility of hydro- foils for large deep-sen mot- chant vessels, tho Administration maơ build a pro- totype for operational testing
"A large hydrofoll." Mr Morso
COMMODITY
FOREIGN EXCHANGE
NEW YORK
Closing rates were: Can dan doling .... England offic
New Zealand
Bouth Africa
Linie, successor to the famous old Hapag which pioneered modern Equador passenger shipping, has post- poned its plans to build a large
belleves," "abould be unaffected, ocean liner until at least 1000.
Others wichanged-ÜPI.
#51 11/18
1.30 11/14 207 1/10
.010
COTTON
.. NEW YORK ....... Prices of colton, futures closed today as follows:
.... 1840 1814
Watson Lano,
Crawfor COTTONS Textiles
Nangang
... 3.00 1
10.10 10.40
MUSCELLANEOUS
10016
500 @ 10
Paso National Cas Family Finance Corp. Ford Motor
General Electric
230 10% General Foods
4.05 1600
1000 p
1.46
14.80
Trual
N125
Vibro....
Xubber
Amalga
4.05
General Molor
Ges. Pub. THI.
Gelly O
Glidden Co.
Goodrich (B. r.) Co. 4.50 Goodyear Tyre
Urunuman Aircraft
Gulf Oll...........
heyden Newport Corp. Homestake Mining Co. Ingersoll-Hand
mated 1.00 1.40 5001371; Inland Steel Co.
10.000 1.371⁄2 nt Business Machines
Med....
4.05
PRICES
Harvector
International Nickel
481.00
115.0
888885
Firestone Tyre and Rubber Com- pany and in New York with United States Rubber Company,
The Union has previously an- 0.79 nouneed talks will begin with B.F. Goodrich Company on June 1226. and with Goodyear Tyre & 28.30 Rubber Company on June 10-
1.00 China Mall Speciol.
6,83
PO BI EA
COMPANIES
PASSENGER/FREIGHT SERVICE
PENINSULAR, & ORIENTAL S.N. CO.
INSULAR &
Ostwarda "CORFUL "SALMARA" "SINGAPORE"
"CARTHAGE"
"SOUDAN" "CANTON" -
· KHYBER"
Homewardr "CORFU" “SUNDA“ *e "CARTHAGE"
Laars Londra Das Dengkong
Salled 30/4
Balled 10/4
Sailed 8/5
2nd June
42% Jude
17th June
ZAH, May
30th han@
7th June 25th June 18th June
20th July
eath July
8th Auguri
Duə London
Leaves Hongkong
4th June 14th June
4th July
"SINGAPORE" *inth July "CANTON" "SOUDAN" *
1st August
18th August
4th July
23rd July
4th August
24th
August
Ist September
25th September
Vis pors, Penang, Colemka, Bombay, Aden à PL. ÜSIK
"BUNDA", "SINGAPORE" and "BOUDAN“ cal] 5′pórE,
B'wet.. Penang, Aden, P. Bald, Havre, London, ·
Hamburg, Rotterdam & Antwerp.
BRITISH INDIA S.N. CO., LTD.
"FULTALA” due 20th June
kalla Kith June
"SANGOLA"-dun
4th July
il 5th July
from Japen
for Singapore Penang Rangoon Calcutta Chitingung
from Calcutta, štangoɔ, Penang & Bingapore ior Japan
P. & O./B. I. JOINT SERVICE
"ISMAILA"
Int
International Paper
Int'l Tel & Tel
Jatin-Manyillo Co.
Kansas C. Power & Light
Kennecoli Copper
N
**IKAUNA"
Liggett Meyer Tob. Co.
Lockheed Alterati
Loews Incorp.
"ITAURA"
Jono Star Cement Co. Lowenstein à Bond. McConnell Aircraft
Block RV.) T-Morabl Iron Corp. All prices were unquoted in No. 2.rubber per lb. June 15- Minnesota Mining
20.47: Deo: 35.89: Mar: 36.60: May: | No. 1 rubber par 1b. June 7-742..... 54.92; July: 38.11; Oct; 34.76.
Sao Paulo.
"
No. 3 No. 4 In the United States, the Spot rubber unbaled average price of ene-inch cotton No. 1 pale crepe
Blanket crepe
at 14 designated spot markets was 34,75 cents.
Total sales were 19,150 bales., -U.P.I.
RUBBER
NEW YORK
Rox rubber futures closed to- day unchanged to 10 points) higher with sales of six con- tracia. Closing prices:
HAY
riepik.
Nuv.
Spot: 2.2in: July: 80.03; Opti
Mar.
or only slightly affected by even
According to the heaviest of seas and not
managing offeeled at all in a moderate director De Wachs, the line ta at least seaway. The hydrofoll achieves decided to study, for equal spond with about half the three more yours, the develop power used for a displacement ment of the passenger air/sco ship. The ratio of power per ratio before reconsidering con-
struction plans. passenger, lonnago per passen- gor, and attendant. Labosar per In ce
-or...positivo...» survey | 56.3; Dec: 24.03: Mar: 96.07-88; passerster for ocean crossing in results the company
would
May 1-38.85: July: 20.14; Oct; 36.70) fydrotóll craft should be az, silampt to resume ({* traditiormi
NEW ORLEANS preciably less than that required | Hamburg-New" York / pontonger for large displacenwat powenger service with" ships of its own, alipa, today."
| Dr. WYüśla waki.
ELTS 26.70
NAT - SINGAPORE The market ruled very quist Prices of cotton futures aloted todar se followell EPER with majority of dealers disin
25.10. pot: #5.10; - Juty
Oct: clined to trade. Future pricer:
July
65-80
70-7834
7813-8615 -U.P.I.
SUGAR
NEW YORK
Mission Development Monate Chemical Co. Montgomery Ward Motorola e
Becult Co.
Haltona Casts Bog. "AD
National Dairy Prod. National Lead National Steel Corp. New York, Central Oin Kallilegen Otis Beystars............... Arwen-Unis Claims Oxford Paper Co. Pacific Gas & Eleo, Pin
Airways Parmoured ....... Parke Davix Co, World No. 4 sugar futurez Penny 3.C closed today one to 10 points Renn Ball Co.
Philip Morris van Ligher with sales of 791 Procter & Gamblo co contracts
Pittsburgh Plate Domestic No. 0 sugar futures Publicker Industries an
Fury Dil. clored unchanged to one point itadio Corporation Jower with no sales reportedi. Radio Corn. Pref.:
Republic steel Contract No. 4 (world)
Reynolds Metal July: 35T) Gopi: 3.40; Oct: 35%) Roupa Roobuck & Co. MAFI MAKE ALLYN MAN CODE 3601 Bill, ou čega Epot (canis par ib, Rob Cum 206 Beint The Open Intarsel: 7305 conitetą, Atnolair
Contraes, No.76 (demosido)
Paper
Bocony Mobilell
Boutliera Cỹ,, 1Tbe!
Joys 5.19: Brat: 1.9: Marc-$30; - mkr Alteract got (ostiis per. ka cif NY Ex«aly}; | South Puerte Bloo Sugar
U.FI.
"Open interest; : BJLK - penfraéto
Reuthern National 09. Bouthern Railway (Com.)
due 29th Mar salis 30th May
from Japan
tar Singapore, Karachi, Kuwait, Bastab Khor ramshahr Dubai
due 10th Jung from Bombay, Cochin,
Tuticorin & Bingapore satte 11th Jula for Japan
due 29th June
from Bhunagar, Bony- bay, Cochin, Penang & Singapore palle 21st June for Japan
EASTERN & AUSTRALIAN 5.5. CO., LTD.
"NELLORE" dur
5th June salis 19th June
from N. Chine for Labuan, Bandaken, Brisbane. Sydney, Mel- -bourne & Adelaide
"NANKIN" due 20th June from Austenila
maila zand June ter Japan
or off. The route à the ranfe a sailings are rakjest to change or amendment with or without notice.
For full particulary, upply doi MACKINNON MACKENZIE & CO. OF HONG KONG LIO. Telephone Nos: -977214.