Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-08-03
INDUSTRIAL SURVEY
INDICATES BETTER
BUSINESS ON WAY

New York, Aug. 2-(AP)-Prom-
ises of business improvement found
tangible fulf1llment in many lines Of
industry last week. Trade irregu-
larities were not entirely eliminated
but, as in recent weeks, they were
out-numbered by uniformly favor
able reports from the basic indus
tries. Influences which might be
characterized as disturbing were al
most wholly absent.
Reports of railroad operations en-
pnaslzed the reassuring condition of
the country's trade. For the first
time this year car loadings for the
third week in July crossed the mil
lion mark figure which Is not
normally attained until crop move
ments reach their peak late in Au-
gust. Analysis of traffic statistics
indicated the movement of diversi-
he'd commodities rather than huge
bulk shipments of grain or coal, a
reflection Of expanding wholesale
and retail trade.
supporting testimony was offered
by the consistent improvement in
railroad earnings during June. On
the basis of statements from the
leading class one carriers, it was
estimated that aggregate net oper-
ating income for the month would
approximate $92,00O,000, the second
largest June on record. So far this
year rail earnings have been re-
markedly stable, with great strides
made in reducing operating expen-
ses. If these gains are maintained
throughout the fall transportation
experts predict that 1925 will be the
most satisfactory year for the carri-
ers since the war.
Growing confidence characterized
the outlook in the steel industry.
The large orders which flowed in
during the early part of the year
We're translated into substantial sec
ond quarter profits by the United
States Steel Corp, which reported
total earnings Of more than $4,000,
900. These exceeded those of the
first quarter when business was
practically booming and were only
slightly below those of the cores
ponding period last year. The week.
~ steel trade reviews continued to
md evidences of more pressing de-
marrd and firmer price tendency.
Fluctuations in the price of crude
rubber have been a cause for grow
ing concern to the tire manufac-
turers. Although the price last week
fell below 81 pound after previous
ly mounting as high as $1.20, the
rubber companies could see no point
of stability in sight because of I'M
certainties as to the further res
friction Of output. Holding that
current prices were much in excess
OF production costs, one of the larg-
est tire companies established a
special raw material reserve fund to
protect it against a possible materi-
al decline in rubber values.
Development of the week made 1t
clear that countries which attempt
to maintain commodity prices at
fixed levels by artifically regulating
their flow into trade channels will
not obtain financial support in the
United States. Negotiations for
$30,000,000 coffee valoriZation loan
to Sac Paulo were terminated by
bankers because it was held that the
effect would be to fix" prices. The
same policy, it was said, would ap-
ply to rubber.
The expected seasonal slump in
the automobile business has failed
to materialiZe. On the other hand,
with the introduction of the new
models and a series of price cuts,
many companies have reported that
buying had been materially stimu-
lated.