Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-02
BUSINESS IS GOOD
IN BUFFALO AREA
Spring Movement of Wheat
to Flood Veins of U. S.
With New Money.
RY j. C. ROYLE.

BUFFALO, N. Y, February g.
Scores of millions of dollars in frozen
assets will come flowing through this
gateway early this Spring. These
assets are in the form of wheat and
are as thoroughly frozen in as the
vessels in which much of it is stored
The owners of this wheat have not
yet received the money for it. and its
movement and sale will send flow OF
new money through the veins in every
section of the country.
There are 100000 bushels at the
head OF the lakes and other millions
are scattered in vessels frozen in the
ice at various points, Where the last
storm of the season forced them to
take shelter Vessel men here antici
pate moving 275,o00,0 900 bushels OF
grain through this port in 1927. AL
ready shippers at the head OF the
lakes have offered 31s cents bushel
to carry their wheat to Buffalo the
moment the ice is out. This com
pares with an average price OF 2A
to ga cents. but vessel owners have
not as yet accepted.
In the meantime, there are 100000
bushels of wheat in storage here, but
this amount is not regarded as bur
densome in view of the pace at which
the milling industry is moving. With
capacity of 100000 barrels of flour
week, the Buffalo mills are working
at about so per cent of capacity and
accounting for a large quantity OF
grain. The growth of the milling in
dustry here has been phenomenal and
is due in no small degree to the fact
that it is cheaper to ship wheat here
than -four, since one is bulk freight
handled in the least expensive man
ner, while the other is package
freight. This reverses the general
theory that 1t Ia cheaper TO ship a
finished product than the raw mate
rails for it.
These are only two of the factors
here which indicate progress and
prospects in other sections OF the
country. Buffalo, with a half dozen
huge industries such as the produc.
ton and sale of electric power iron
and steel, automobile manufacture
the packing of meats and the han.
ding of coal and a score OF smaller
industries, is keenly responsive to
changes of conditions in other sec
tions whence raw materials come OF
whittier finished products go.
Power Sales Increase.
The curve of power sales to indus
try in this section has moved steadily
upward in the last year. The Buffalo
Niagara and Eastern Power Co.,
which serves this city, Syracuse,
Rochester, Niagara Falls, jamestown
and Auburn, covering 1S counties,
sold power to the amount of 4,08S,-
52S,083 kilowatt hours in 1925 as
against S,678.28S,219 in 1925. This
company sells per cent of all the
power produced in the United States.
In January the concern sold for in
dustrial purposes 43,180,0 kilowatt
hours as against 44,143,595 in Janu-
airy, 1926. This is a fair measure of
the slack period which hit industry all
over the country and which is passing.
The above conclusion is supported
by the sales of the Buffalo General
Electric Co. to factories in Buffalo
only, which in the last week amounted
to about 100000 kilowatt hours, as
against about 10,225,000 in the cor
responding period a year ago. There
Is no Disgusting the fact that the
steel situation has shown a slump re-
Gently in this section, where quanti-
ties Of automobile sheets are pro-
duced. Competition is OF the keen
est nature and prices have been cut
In some instances.
Unemployment Seasonal.
There has been some unemployment
here, but 1t has been largely seasonal.
Buffalo is called upon each Winter
to absorb some 10000 men off the
lakes, who leave again in the Spring.
Employment has risen steadily since
January 15. The meat packers are
starting out the year most satisfac-
torily. The automobile factories are
not at capacity, but their pace is
steadily improving.
The situation of the local banks
shows plainly the condition of bust
ness in this barometer territory. De-
posits are at least $10,000,000 higher
than a year ago. Loans are $4,000
900 higher and reserves over $1,000
600 higher. That would seem to indi.
cate a most healthy condition, since
it is plain that the loans are moving
money into commercial and trade ex-
pansion channels.