1938-12-03 — Page 3

4

limited as in the case of public

İG CIVIL AIR utility concerns, was unfair to share

holders who accepted the risks, of plancering a new means of trans- port and who have received on the average only a modest return-a little over 4% per cent,

MERGER State Control MPERIAL AND RITISH AIRWAY the nirways Public Corporation

Bir Kingsley Wood, Secretary State for Air, announced in House of Commons recently at a public corporation is to set up to acquire Imperial rways and British Airways. A bill is to be introduced ortly for this purpose, and if 'fair and reasonable price" can agreed it will be incorporated

the bill. Otherwise, ice will be fixed by arbitra-

on.

JINISTER'S STATEMENT

(2) The Hambling Committee's recommendation that civil aviation. should become self-supporting as quickly as possible was incompati ble with the ideal of ensuring that of this country lead the world in ur service, which im plies the progressive development of speed beyond its economic utility to ལ་ travellera

of additional

(3) The question capital for development purposes hus been discussed with representatives of the Government. Apart from any other issues involved, any allerna- plan the Government's tive would entail a great Incrence in share capital or the creation of obll- gations with rights ranking in front of the existing shores,

to

(4) The board, whatever its legal powers under the articles of associn- thelon, will not agree to any price for meeting of share- calling another the male of the undertaking without holders.

Sir Kingsley Wood in his statement aid the Government had been con- View ldering the question with

he coo-

RELATIONS WITH THE STATE

Indec

Act.ubstantial.

o the creation of the most suitable instrument for developing our over sens civil aviation com,

"The House will Unued, "that under the Air Naviga- tion (Financial Provisions) which was passed earlier this year, the statutory limit on the aggregate amount of subsidies was increased to is intended 10 £3,000,000, and it devote the greater part of this to overseas development.

additional payments will

"Development to-day is so rapid," Sir John said, "that any large air- craft is almost out of date before delivery, and to base the provision on anything ap- for obsolescence

real life of aircraft proaching the will defeat the alm of air leadership: If such policy is to succeed support must of necessity "Relations with the State were not us they should be," Sir John added. "In every activity much depends on the personalities involved, but it was the system for more than anything else which in this case provoked dis- there are who on ueenston secure, or think they secure. what is termed the best of both worlds. Bere the boat was on the other foot, and that is where I found It."

Core fall to be made to the tension. Those

On

ment

based on

companies selected by the Govern- and in the ment for this purpose, light of the opinions expressed by the Cadman Commitice that dividends to air transport com- subsidies to

A YEAR OF TRANSITION panies should be restricted to public

Reviewing the year, he said it had utility rate and of the Government

rutes, and

principle that publieeen une of transition from one ma- agreement in

for policy to unother. The com- money thould not be used for rals-

undue levels, it any's agreements with the Govern ing dividends

the carriage of to

and appears desirable to take steps

surcharged mall ensurc that the large additional passengers,

due to expire between capital needed for the development freight, were due

1939. The Empire Air should be raised on terms which 1937 and

Mail Scheme, nerented in principle would not be proved unduly expen-

for the in 1934, provided

curringe pros sive to the Exchequer,

surcharge. "Rapid extension of the overseas of letter mail without

a great increase the grent This involved service, coupled with

alteration in the technical advances which are being activities and an made in this sphere, moreover, call relative amounts of mull. passenger under present clrcumstances for the und freight traffle. pooling

the ΩΣ resources strengthening of administrative and operative organisation to the fullest possible extent.

of

BILL AT EARLY DATE

directors of the

and

in

The Empire Air Mall Agreement displaces other agreements for the operation of Empire services, leaving the European agreement to expire on March 31, 1939,

THE

"In those circumstances the

"The European services have been handicap," Government are of the opinion that operated under severe the most satisfactory instrument for Sir John continued. "New aircraft

civil the development of overseas

were ordered in 1934, and at the aviation would be provided by the meeting last year it was reported association of the two chosen in- that the first of them was then over struments, Imperial Airways, Ltd., a year late. Not one was delivered

under

review and, in and British Airways, Ltd., under n In the year single public corporation.

fact, the first has only now been de- "The Government therefore pro-livered-four years after the order. "Instead, therefore, of having new to recommend to Parliament pose

faster and more larger, ale craft, legislation to set up a public cor-

the comfortable than those of its com- will poration which

Bequire

has had to compete existing undertakings of imperial petitors, the company with its old

aircraft Airways and British Airways. Be against the new aircraft of foreign

introduced the fore the bill is

ax with

companies and of British companies the Government hope to fix

two co

using foreign alreraft. And that is why the European services did not fair and reasonable price each expand; in the circumstances it was undertaking which could be sub- satisfactory to have carried the same mitted to the shareholders for up-number of passengers ns in the pre- proval and, if agreed, could be in-

vious year." serted in the bill. It agreement the bill will be reached cannot

He went on to say that the com- provide for the price to be fixed by

prbitral

pany had also placed order for more an independent

tribunal. "It is proposed that the new public flying-boats, some of which were to be used for experimental Dying corporation should obtain funds for the purchase of the two existing across the Atlantic. These are also undertakings, and for Its further somewhat overdue, Similarly, the Air Ministry placed orders for two capital requirements, by the issue of fixed-interest

by high speed land aircraft with which stocks guaranteed by the Government. Full details of the the company was to do additional proposals will be contained in the bill, which hope will be available at an early date." COMPETITION

Mr. Simmonds (C.-Duddeston) sold that while it was true that the Cadman Committee suggested amal- gamation on the London-Paris route, was it not a fact that they stressed

the value of competition throughout

the Empire, and was the Minister quite right therefore in bringing to the aid of this scheme the Cadman Committee's report?

Sir Kingsley Wood: Yes, sir. I think so.

POLICY MAY BE VARIED

ocean flying. One of these had now been completed but too late for the necessary preliminary flying before winter. Others of this type adapted for short haul services were also late in delivery.

"Hitherto," Sir John added, the company has bought only aircraft And engines designed and built by British manufacturers, but the dif ficulties in obtaining delivery in accordance with contractual terma may force the board to apply for permission to adopt some varia- tion of this policy."

Dealing with the year's results he stated that the route miles open to traffic increased from 20,329 to 22,- 395, 1.c., 10 per cent; the miles flown from 5,231,655 6,223,968, 10 per

to rent.;

the traffic ton mileage from panies at some date prior to his 5.171,504 to 8,353,618, 61.5 per cent. statement in the House this morn- At the end of the company's first ing?

year there were 1,700 miles of

Mr. Ede (Lab South Shields): Will the Minister take steps to en- sure that the price to be paid will be fixed at the value of the com- T

Sir Kingsley: If an arrangement is not arrived at the matter will have

to go to arbitration.

JUMP IN IMPERIAL

AIRWAYS SHARES

The

route open to traffic. At the end of the past year there were 22,305. mileage flown had increased from 053,042 to 0,223,068 per annum, and the traffic ton miles from 301,032 to

onnum. **with

per 8.333,018

un-

Sir Kingsley Wood's statement surcharged mail." he said, "a new

took the London Slock Exchange by surprise. At first the shares of

phase hins opened."

A general discussion, followed in

put to Sir John,

In Britain's trade has been checked is provided by the Board of Trade returns for October issued recent-

Imperial Airways were quoted which a number of questions were rather wirely around 25s. 6d. com- Further evidence that the decline pared with Thursday's closing quo- tation of 25s. d., but the price quickly advanced and showed a gain on the day of 3a. 74d., at 20s. 4. The shares of British Airways are privately held and are not dealt in on the Stock Exchange.

"Imperial

Airways is a service of Arst importance, and it must know where it stands in the political and economic life of the nation, Sir Jolin Reith stated in his speech at the company's meeting recently.

present position is neither

Costactory s

Although the totals for Importa, exports and re-exports are still well. below those of year ago, the rises, compared with Sept., are the largest monthly increases since Feb. and mo considerably in excess of the usual seasonal movements,

Exports from Britain in October mounted to £42.589,908 the highest Agure since March.

nor constitutionally The Increase, compared with Sop- he went on. "The tember, is £2.751.030. This follows company.. I neither wholly free nor n rise of £3,477,487 in that month's total over August. Comparative, figures are:

wholly securo."

FOUR POINTS

....

Vi Sir John Reith made four vitally mportant points in his specchi,

Hese wäre?, (1) The suggestion of

that

Cadman Committee that the Oct

HONGKONG, TELEGRAPH, SATURDAY, DECEMBER

UFS)

intimate suuy or the family circie of Thomas E. Dewey, Re- publican candidate for Governor of New York. With Mr. Dewey are his wife and his Rons, Thomas E., Jr., 6, center, and John Martin, 3.

Compared with September, nearly all sections of manufactured exports register gains. An exception is the sharp fall of 2,091,334 to £3,404,- 405 in the value of vehicles includ- ing ships and aircraft, but Inal month's figure was exceptional.

Coal exports show a substantial gain on the month, the figure being £3,549,223, an increase of £422,334.

Ponny-a-Mile

Atlantic Excursions

1938.

EMPIRE NEWS

LOCAL OPTION IN AUSTRALIA

Melbourne.

The Local Option Alllance is ura- Ing a restoration of the right of citizens to hold local polla on the question of abolition of licences. The Alliance was heavily defeated at the poll on October 8 throughout Vic- torio on the question "liat leences should be abolished."

Liquor interests are urging that as the electors have so heavily rejected abolition there should be no furthe | pool on the Issue. There is a wide- spread bellet that liquor Interests will press for an extension of hours during which licensed premises may remain open. These are at present from 8 am to 6 p.m., Sunday ex- cluded. The public generally is op- posed to extension of hours.

It lo

Victorian

Pi, probable that the

will leglainte for ü further general poll in eight years Lime, giving electors the additional right to vote for abolition in a parti- cular district. In effect, this would be_restoration of the local option poll. Melbourne Land Values. A Little over a century ago, at the first land sale held in Melbourne, half an acre of land on the north side of Collins-

ન street was bought for £23 London.

freehold Trans Atlantic penny-a-mile ex-by a man named Peers. At a recent auction the trustees of the Peers LB- cursions, giving trippers a month in the United States, are being arranged tate refused £80,000 for a part of

with a frontage on

on Col- for next year by Cunard White Star. this half-acre with a The Atlantic. excursionists will be lins-street of just over 12 yards. able to use any of the crack Cunard

strike on the State- To some extent the increased ex-

between April 3-23 and June 20 to owned Victorian railways by drivers port values reflect higher prices of bety raw materials, but in some sections July 23rd. The round trip fare will of electric trains hus in eight

be £32 5. or £27 5s, on slower delayed 5,000 trains, and caused the quantities of goods sent abroad renat. Britain is also planning to loss of 7,000 houra' running time. The gistered substantial gains, particu- regain lost cross-channer iradle with strikers aim at operating the services larly iron and steel and machinery streamlined ship which may be strictly in accordance with the regula-

A further indication that manu faster than the Queen Mary. The ions for safety working. facturing trades are experiencing propused new channel ship is to be more activity provided by the of about 2,000 tons displacement fact that raw material imports show

with six engines developing An increase on the month. Pur-20,000 h.p. chases of metala and raw cotton, especially, were higher.

HIGHER PRICES

Imports of food, drink and tobacco were up on the month at £30,334,- compared with £37,606,673.

475

White Star Hners leaving England ve A "work

about

manufactured articles, £4,400,310.

Imports: Food, drink, and tobacco, · A large amount of leeway, how-£4,018,531; raw materials, £0,087,-

237; manufactured goods, £4,150, ever, bus to be made up before the 903.

Cosmetics Called Necessary

to

days

Wellington, New Zealand.

trade lost earlier in the year is re- covered. Compared with

Food, drink and tobacco exports last, the following decreases are are the only category of either ex- shown in the main figures:

ports or imports to show an increase Exports: Raw materials, £498,320; compared with last year.

civilized October

A woman must spend at least $7.25 a year on cosmetics in order to sup- port herself in accordance with a standard of life. That opinion was expressed during a wage dispute case involving clothing trade workers.

NEW SHIPMENT WITH XMAS GIFTS

JUST ARRIVED.

9639-86

Perfect shoes for gentlemen. Double soled and prepared for every kind of hard walking. In brown or black.

Price $10.90.

Modern style.

9638-12 Masterpiece in footwear.

In brown or black.

Price $12.90.

2346 13

Nice and comfortable suede shoes for afternoon wear.

Price $10.90.

Flat heel. combination.

4674-37 Suitable for hiking.

Price $6.90.

Suedo

6865 51

Velvet

New design in evening shoes, top gives perfect comfort,

Price $6.90.

5462-34

Wide fitted flexible shoes for children, Price $3,90-$4.50.

Up to Their Necks in Smartness

WHITEAWAY'S

have all your

Knitting Needs.

Wool

Boucle

60 cts. oz.

Wool String

70 cts, oz.

WOOLLEN

Jumpers

and

Cardigans

from Paris

New as new can be..

those

soft, warm Jumpers in all colours are so well woven and look much

more expensive than

moderate.price.

from

$595

New

Yarns

Tweed Knit

Knits up Tweed effect 45 cts. oz.

a complete range of Needles and Kntting Books

IN ALL

Colors

thair

each

Whiteaway, Laidlaw & Co., Ltd.

A Century Old Briar Root

Perfect Cleaning

Cool and Dry Smoke

No contact between Tobacco and moisture

DAPAT

2332-36

ES

Children's fashion shoes.

Price $3.90-$4.50.

Rata

CHINA BUILDING,

BRANCHES :

212, DES VOEUX ROAD CENTRAL,

Importa. Exports

No- exports

3.

ALL ZE (TO RAK 47.380 DOG 8,446.03

HO TUNG BUILDING,

PR005.497 47,218,048 3,808,837

1, PEKING ROAD,

dends of the company should be Sept. 30 ... 25,000,980 39,008,057 4,037,308

224, NATHAN, ROAD,

453, SHANGHAI STREET, 60, NAM CHEUNG STREET.

$3.50 ONLY

PIPE

GUARANTEED

NO INNER BORING WHATSOEVER

ALL POPULAR SHAPES

SOLE IMPORTERS FOR THE FAR EAST - C. INCENOHL'S CIGAR STORES LA PERLA DEL ORIENTE

HONGKONG

SHANGHAI

COUNT THE ELEGRAPH S

EVERYWHERE.