Evening star., 1924-05-26
BUSINESS STUDENTS
WATCH INDUSTRIES
Steel, Automobile, Building and
Agriculture Situation Held
Basis for the Future.
OUTPUT AND COST FACTORS
Questions More Important Than
Legislation, Is View.
By J. c. ROyIE.


Special Dispatch TO The Star.
NEW YORK. Mag 26.-Undoubtedly
The action of Congress and the Pres-
dent on tax legislation will be closely
watched by business and industry
during the coming week. but other
factors are expected to be more po-
Tent in the business situation. If de-
nand for products is satisfactory.
plants producing those products will
run at an increased rate without pay
ing much attention to what is done
with tax legislation. according to
many thoughtful tinanciers. \ re
auction of taxes undoubtedly would
be esteemed of benefit to the heavier
taxpayers, but it is held il would
nave little effect on the actual pur
'hasing power of the country as a
whole, on which the activity of bust
ness mainly rests.
OF Consequence TO business.
For this reason close students of
business are watching the steel au-
tomobile, building and agricultural
Situation more closely than the ac-
ions of Congress. In the tirSt-nalned
industry 1t is notable that prices have
expected in view of the light demand.
steel mills have recognized that of
ate years conditions have changed
Productive capacity is so large at
easily after they have been forced
70 low levels. Producers, therefore,
have kent their production costs
strictly i'll mind and have avoided
steel men say there still may be
Some additional declines in some
products which have not as yet suf-
fsred drops, but indications are that
tlnuous decline. In fact, many be-
iieve the bottom has been reached
Bars. shapes and plates have held
well for the last fortnight and the
sttHening in the attitude of inde-
pendent producers of sheets is re
Sarded As having aided sentiment to
4 marked degree. Two blast furnaces
ana one merchant stack have been
"losed down in the Chicago district
and ingot production is down to 80
per cent of capacity for the large
producers and 81 per cent for the
smaller plants. Nevertheless small
out numerous orders are keeping pro-
4ucerS i'll fair shape.
Regarded rs Preraution.
Announcement that the Ford Com
pany VIII close down on Decoration
DAY and next Saturday. May 81. is
taken by many III Detroit to indicate
mat the company may discontinue sat
Lroay work throughout the summer.
MS action, il is felt is "a precau-
f1onary measure to insure balaucius.
~ales and output. Present safes vol
hme would hardly make curtailment
by the Ford plants necessary. but
company officials are understood to
nave thought II best to take this
action.
Sales based on actual deliveries the
urst three weeks OF May and with
the last of the month estimated are
expected TO exceed those of the CORE
spondlng period of last year by 125.-
ooo vehicles. Daily sales are surpass-
lnS those of last ear by I 900 ears
Ire tord check, however, puts prac-
really all the plants i'll the Michigan
district on reduced schedules How
long they will be kept on such sched-
llles depends largely on the weather.
ohould sales show jump i'll June
productions would be speeded ,,r at
once, and materials now being or
dered for fall delivery indicate be-
Nond question that heavy fall sched-
uleS are being prepared for. All ewes
IN the automobile trade are on the
price situation, and dozen makers
are ready to announce advances il
further restriction of quantity pro-
auction becomes necessary.
General Building Situation.
Building activity does not seem to
nave been affected in Detroit. but in
many other cities The main interest
seems to be III securing completion
Of structures already underts ken in
time for the fall renting period rather
man II laying cut and starting new
building programs.
cotton estimates which have been
announced by private statisticians do
not give great hopes for heavv
crop, and the amount of raw COTTON
which VIII be available later in the
year ls rendered more uncertain bv
continued heavy buying from abroad.