1960-08-01 — Page 2

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THE CHINA MAIL, MONDAY, AUGUST 1, 1960.

Weekly survey of American economy

COMPANY PROFITS DROP

NEW YORK

Steel output

COTTON declines,

MARKET orders

New York, July 31.

new

climb

New York, July 31.

Cotton futures this week The U.S. business week was highlighted

almost duplicated the

week before with the near

positions slightly, easier

and

the back months

moderatel

showing

strength,

largely

political considerations.

At Friday's close the list ruled ! eight points lower to 50 higher- equivalent to a decline of 40 cents a bale to a rise of $2.50 a bale,

Volume during the five-day period was consistently small, with a considerable amount of the activity switches.

|

tion

by falling corporate earnings, reduc-

· for in margin requirements stock purchases and a paradoxical

New York, Inhal Mr Walter B. Grant, Finan

cial vice-president of New York Central Railroad, is negotiating with Swiss Banking Interests in Zurich for the acquisition of large block of stock in

Baltimore and Ohio Rall- road, Dow Jones learned. The Swiss intereste, urg; be- lieved to own about 25 per cent

0,-Dow Jones said.....

- steel situation in which production of the voting invest in B. and

dropped while new orders climbed,

Both Central and Chesapeake and Ohio Railway are making A number of buge corpora- be that General Motors sold tá oblain control of B. sad O. tione, including General Motors. more big cars and fewer come through an exchange of stock | Standard Oll of 'Indiana, Ford pacts, while Ford

sold many

It is understood an announce- Motor, National Steel and Armco more compacts than GM did. ment concerning the negotia Steel, reported declines in The profit margin on compactstions is due this week, Dow second quarter net profits. is considerably lower than" that Jobes

added. China Mail Standard Oll of New Jersey had on standards.

Special the same dollar earnings as In an interesting sidelight to Street consisting of year ago, but the yield per this situation, the Wall

share dropped because more { Journal, after a Detroit survey. shares were outstanding.

́reported that the trend in 1961 The Federal Reserve Board car models is for the compacts reduced stock margin require to grow and the big cars to ments from 90 to 70 per cent, shrink. effective Thursday, and brought a momentary spurt to a sagging stock-merkel

Professional interests once again focused their attention on the nearby with spot borce hedging supplying contracts for some trade buying.

SMALL ORDERS

Commission houses were on both sides of a thin market in which small orders

were suffi- cient to cause erratic price

Ewings.

སྐ

The companies, the newspaper said, seem to be out to see who can build the biggest, most powerful "compacts,"

while many of the big cars, including Cadillac, will have smaller new models.

Steel production dropped slightly after two weeks of re- non- covery from the 11-year strike low of the July holiday week. Mills were scheduled to "I think the compacts will next to operate at 53.8 per cent of capa- continue to grow in the Spot prices continued weaken as they adjusted to the city, compared with the actual few years" one Detroit source new crop level, which will have rate of 54.4 per cent last week, was quoted as saying, while a lower support level. On Friday according to the American Iron the USDA eet the mid-July cotton and Steel Institute. parity at 3850 against 3963 a month earlier and 3805 last year.

1

Small orders Commission house buying was Steel Magazine reported that

at

some

standards continue to shrink, until they meet place. After that? Probably go through the whole cycle all over again."

If the compacts and the stan prompted in the distant posle steel orders are coming in tions on the promise, taken the best rate since April, with dards da meet, it will mean that from the farm" planks, that

many consumers running short the only true compacts on the either acreage retirement

will again be will

of supplies and placing amall US market

be hastened or the parity price orders for fast delivery, Liqui- foreign makes-UPI. boosted by the next administradation of excess inventories, the tion.

magazine predicted, will end next month

The Republicans favour acre- age retirement while the De- mperata have called for increas- ing parity to 80 per cent-dif- ferent memos to the same end from the trade point of view- UPI.

Bank of England statement

Second quarter earnings of 10 Motors dropped General $101, a

common share, from $1.05 last year, although sales

London, July 31. increased by 4.4 per cent.

The Bank of England state- Nevertheless, first half earnings, ment for the week ending July at $2.15 a share, topped last 27 reads as follows year's $208, and were the incidenation: £2,319,158 289 :

depects....

QUOTED ON second highest in the Private deposits

LONDON MARKET.

is

Ratio

tion's history. First half sales Government, metritisa topped the $7,000 million mark Otherurities ....

Receipts for the first time ever.

Net income for the second quarter was $288 million, com- pared with $297 million for the same period a year ago, al- though sales were $3,451 million. from 1959's up $145 million now second quarter $3,306 million. First half net was $612 million on sales of $7,109 million.

The Landel Trust Lid, a holding campany, quoted on the London Stock Market,

infor

The company was porated in England as a pri vate company with Limited liability on September 27, 1933, but did not commence busi- ness as an investment holding company until October 1951.

The

Sales fall

Ford, on the other hand, re- ported drops in both sales and earnings. The Company's net profit for the second quarter company has an was $121.7 million, or $2.22 authorised capital of £1,000,000 share, off 19.5 per cent from the and

of $151.1 million or $276 a share,

115

issued

capital

а

London market Radio telescope

closes firm

on late rally

London, July 31, Stocks fell away most of the week in subdued holi- day season trading but staged an upturn late Friday to close the week in firmer shape.

The movement partly mirrored, Wall Street's performance but borge-front factors like the con- || Umied'; rise in Beklending spreading fears at now credit screws and more evidence of lagging exports helped the slide in the first three days.

The change of leadership at the Treasury giving the former Foreign Secretary, Selwyn Lloyd, Frontrol of the coffers made no

discernible impact.

Buyers sought the blue chips

·when prices receded, and the institarhonn were taking up -in- vestment opportunities at lower levels. Most focused pa top-ranking coun- issuds did ters but many new well despite the prevailing dull-

news

Japan accused

of deceptive

trade methods

London, July 31,

enables man

to see farther'

OBSERVATIONS by a radio telescope at Cam

- bridge, have enabled "man to see further than ever

Ser before?

Visitors The radio, telescope fixed the

the exhlition, position of a cebula five thou|which deals with British Sclen- sand million light years away fine achievement in the last which, on the basis of the Blog- ten years, cas also hear a re- lih obervation, Bas now beeri |cording of a “would” made from photogrphed by the 200 inch | the intense / radio wien troen optical telescope at Mount - the volliging gilaxles in Cygnus. Palomar, U.S.A

Observatory statement, "eel out Anouncing this in London towards warth 500 million years recently, the Mallard (Radio-

ago. That was 300 million years Astronomy Oberyalary, which

bettwe even the dinosaur, ap- in astuciated with the Cavendish peared on earth (man himself Laburetory, Cambridae," stated | Bas existed only about 1,000,000

The Nebula, designated 3 C 200 years.)!!

is ziow, the roost distant object ever seen:

the whole in universe." The statement added,

iterion The Influential Yorkshire But it is probable that many Tanker cleaning

Post charged that decep of the ratto stars now being re- tive trude methods by corded are at an even greater Japan impede the whole distance." - Du movement towards The newly photographed greater freedom in internebula is said to be reading from earth at close on half the national trade. ?

velocity of light,

The Financial Timer Index fell 7.8 point in the first four 24 points on Friday to end the dealing days but snapped back❘ week 2 300.4 against the year's high of 3429,

as done today

THE fecreas

Mullard's radio telescopes are brought tha among the largest in the world. affestivaly Though less spectacular than charge DË

for^in-parts, scopes (like the world's largest

has

deal

dis

New York, July 30. Minnesota Mining and Manu- facturing Company report- ed net earnings rose to $32,366,002, or 63 cents a share in the first-half of this year from $29,597,- 074, or 58 cents a share in the same period last year. Sales totalled $263 million

In an editorial on British against $237 millions,

allegations that Japan was Jime quarter earnings amounted to $10,148,091, 92 92eal Industrias, Courtaulds Rolls wool textiles the paper said, the giant paraboloid radio tele- Leaders Hko Imperial Chemi- -indulging in unfair practices in

cents a share on sales of $134 | Royce, British American Tobac- "Her price under-cutting in million, cómpared with $15.850,- | co, Vickers and Woolworths world markets -is facilitated, by at Jodrell Bank) they can equm, ravages of oil 554, or 31 cents a share on $122 were all tractional losera across prelics which openly flout the power of two Jodrell Bark beaches, coastlines and malions 2 year ago.China the week.

international codes of fair itallations, it worked in.com- | coastal waters. Mail Special.

training."

junction with each other,· The Cambridge Installation consists

One of the most advanced Janan had still to implement of an serial (hselt a series of tanker-chaining installations in peace treaty claime requicias itara) 1,450 ft. long. Behind is the world, birkt and designed to conform to internationally accepted fair practices in trade another though shore series of by R. and H. Green and Siley serials mounted on rail,The Weird of 18. - London and commerce, it added.

second series can be moved Street, London EC3, am just Ber low export prices for wool back so that together the two High, operations M. Purfleet, Dollar stocks followed, Wall cloth, achieved by hidden subreta scan is sick of mace. The new Tustry on the liver Street's

eewaldies, were largely responsibla movable telescopes run as far anticipation that the cur in mar« |¡mpose a tariff quota on similar sims would induce buying goods from all countries, thereby Foreign bonds were quieity penalizing the innocent as well irreguler, Germans moving up the guilty," said the editorial.

LOW SELLING "While Japan had promised

**

New York, July 30. Phelps Dodge Corporation estimate net profit for the three months ended July 30 equalled $1.22 per share

LACK-LUSTRESSE

·Gils-edged-wen в lack- lustre affair with the abort- All the govemment dated festes particularly easy shaded over the ave dealing days.

securities

fortunes and

:

agginst, 48 cents per, share marking-up on Thursday in for causing the United States 15 |64 1,000 ft. behind the fixeaza in England, Galva

in the first quarter and compared with $1.42 in the second quarter of last year, Dow Jones reports. Higher second quarter earn 21369ings reflected the resumption of 247,139,453 output at company mines and

41.006, 18:3

UPL | Augint-Chiesa Mall Special:

10334,428)

74

the week. side and Greeks the loss OVER

Cape and London gave firmness.

Restrained buying from the

HIGH ACCURACY

The telescope gives a map or an area with one of the Highest degrees of accuracy possible Compechen with the telescope is

d. The work of plesning tankers and freeing them of me follows asiandard practice there intilations. The type of per- 40, port and date of discharge, specific savity and flash port of the cargo see notified to the

03.363.062 plants in March after strikes to golds and copper shares after to discontinue next year, the a computer which deals with foabbiation authorities The that had closed them sinine. Jest | narrow fluctuations. The lenders highly obfectional Link system de Information, received: from Malp's bones sin cöotected to a' which now provides subsidies, space. What is how designated separator cleaning machines hardened at the end of the there is evidence she is planning / kg 43′′C 295" was drst observed | sot working, and walkings:Vare week. Business volume, fi-

on the Cambridge telescope last pumped ashore. Hot or cold ever, stayed mail, Tine were plher price mechanisms designed year and details were paßified water is used for cleaning the

to maintain erratic, diamonds and platinums

low selling prices the Cambridge Survay of fondo, and windaste are rigged

Observations, showed slight improvements. abroad,,

- published in for de-gausing, five ar changes Olls shared Friday's Armer note "There is no sign of a change Auglist. Cambridge and found wally being needed to free after an unsettled week.

of heart in Japanese Industry Palomar have been in cornes the tank of gas." Rubbers and teas were and the Japanese government pondence on the observation, sa Irregular,UPU.”

appears to contre at these part of their regular cooperation RIGID T practices," said the Yorkshire ever since and becently Palom Post..

WALL STREET

AIDED BY

MARGIN CUT

New York, July 31.

£880,000. The firm also owns reported in the same quarter of The Federal Reserve gave the Stock Market a much

the issued share capital of 1959. This put first half net at Marchants, Manufacturers and $284.8 million or $4.83 a.share, Insurance

Investment

Ltd., and other subsidiaries.

Trust as compared with $285.9 mil-

NOTICE.

needed shot in the arm this week in the form of a cut in margin requirements.

Cotton goods /market

remains dull

New York, July 81.

graphed the nebula.

TESTS

When the work is findibed, an

*Tapan seeks most-boured comad that I had photon

independent consulting chemlat sation status under the General

Ja noted, and teala for in- Agreement on Tarifs and Trade Mullard - Observatory stated damnable and taxle (GATT) but wool and other foder. #4 was observations pours are carried out in "gich trading commsmition teck stroog- roade by the observatory which cargo tank, padp

and M. TOOLS. fainter ever conser, dam. A gas-free certif- fly Japan should not be admitted enabled this

to any equal trading relationshic, nebula to be photographed by egte is then posted at the gang- until she discontinues unfair the Mount Palomar optical tele way, with a copp to dockyard

scope, trading methods" it added:

Momcial. If the to The editorial called for other

.. Phy point portions from the pair work Move ferrous soci cruntries to image and dumpingo telekope have been used Ped, con de so duties and asked that "Japan be

The list played its cards well Jersey Standard. General Motors. | Cotion gray goods markets made to see the error of her at the 200 inch Mount Palomar, #Docial testa are mad

were slow and 1. prices on

train The Gral some clothes easier this Japan's own hand the new week.

paper concluded, UPI,

Ways."

Print clotha were down on si average of 4 cent a yard but

lion, or $5.22 a share, for the The firm is managed by sume period last year.

The chief difference between after the Board's action Armco, Baltimore & Ohia, Messrs Wheelock Marden and

seemed to Wednesday, rising substantially National Steel, American and the two companies Co. (London) Ltd

on Thursday, and on Friday, re-American Tobacco, among others. gistering the best gain in more Higher earnings were résister- than 2% years, This kateed by Pfizer, Shell, General strength gave the list its first Telephone, Minnesota Mining, weekly gain in three weeks......... Vendo, Motorola and Concombed goods were firmy

The margin requirements monwealth Edison.

The Dow Jones Industrial were out from 90 to 70 pe sint. This means that stock buyers average on Friday jumped 11.06 now must put up only 70 ante points: the best sain since 1141 for every $1 of securities, yur points, en November 15, 1967, chased, and can borrow the when easier credit via Federal balance from a broker or banker. Reserve discount rate cut wes

The dancial community, while the bullish factor. cutwardly pleased by the action. feels the reduction could ha bean, greater was

FAR EASTERN FREIGHT CONFERENCE

·FAR EAST/GULF OF ADEN AND RED SEA PORTS CONFERENCE

The Member Lines of the Far Eastern Freight Con- ference and associated Conferences are glad to advise that Holland-Oost-Azie Lijn are hot withdrawing from the Conferences and, therefore, remain sa Members.from 1st August onwards.

The Lines greatly regret the difficulties caused to traders and others by the uncertainty prevailing during recent weeke and they are happy to have succeeded in averting a major disturbance in the stability of the shipping arrangements which they have built up and maintained over so many years with the support and co-operation of Shippers and Merchants.

· ́American President Lines, Lid.

Ben Line Steamers Ltd.

Chargeirs Regala."

China: Mutual Steam Navigation Co, Ltd. Ellerman & Barkmall Steamship Co. Ltd. Glen Line Ltd. (Glen & Shire, Join! Servi Hamburg-Amerika Linie."

Helmed.00%-Azle Lijn.

Lloyd Tricelino, S.PAN. Cie. de Mesageries: Maritimes.

Ippon Yuben Kaisha.

Co., Ltd

Carded yarns trading was inactive and prices were easier. Lower prices at the New Zea land wool auctions attracted much attention but were not reflected in markets here.

RECORD OIL

OUTPUT FROM

MIDDLE EAST

Burlap prices were steady butj [buskius" was slow, / Favourable

· AVERAGE UPUSTEN

new crop { conditiona etsblad On the week, the industrial bureee: to shy out of the mara overde was up 6.89 to 1073; ke in the hope that prices will The stock market needed the rail off 0.58 to 135.26 uities eventually move into lower Reserve Board action bedly be of 0.29 to 32.9% and 65 stocks ground

London, Jul 31. come there was nothing very 51.03 21682. DE stimulating in the general bust Geles picked up on the rise but the overall trend was down-

Prices of sita were mixed Middle East bl production

set new records fing ne news this week to cull it totalling 13,683,740 shares, or a ward. In hemp prices were off

first half of this ut of its manner doldrums, dally average of 2772748 shares as much as 7% dent to % cent a The major business indicators against 12,577,480 shares, or pound Inventories of rope and

with total outpat at ware mized, Electricity output 2,510,578 shares per day the bog tre ture more than

12738 right car loadings, coal produce week before page sooogly to take care of the out- too and bank clearings all post-Awserican Boborg was the most rent demand-UPE ed year-to-year gains, steel pro-active, stock on the week with duction slipped back on the ster of 241:800 charts, Jersey week, and business failures con tinued to mount

However, there

indiesione that the busines dip hua touched Sla, low and le moving into a rising

Standard, Benawick. Cop Automatic Canteen and Univer- sal Match rounded "but the top

uruldu!. Imajiem- featured the W

mbed

Britain's industrial

output

optical telescope to find some work is to be done in the ship, of the most exciting objects Inamely the universe entire galaxies in Workin

Radio signals from “3 C 295", received at Cambridge were velayed to:: Burlington - House, Loridan, on Saturday, and playi wd/back. Forhen, the Duke of Kinburgh" ylilled the Royal

Award for Brush aircraft pioneer

have to

riveting, or raked

loting

uminium

eration

hás