Evening star., 1927-05-21
PROSPERITY HOLDS
So FAR THIS YEAR
Industrial Earnings Probably
Will Be Fully Up to the
1926 Level.
BY. j. G. ROYLE.

special dispatch to The Star.
NEW YORK, May 21.-The out
standing feature of the business
situation today is the fact that outside
of oil and coal, there has been com
paratiyely little change in the last four
and half months in the position Of
the basic industries. This means that
the wonderful prosperity which ex-
tended throughout 1925 is still being
maintained. Bankers in various sec
tions of the country have stressed this
fact in the last few days and predict
q good final six months for 1927.
lt~is entirely probable that industrial
net earnings will be fully up to the
1925 level. The agricultural situation
is still dependent on future weather,
but the showing indicated is only fair
in many sections. Growers of Winter
wheat. however, should do well. so
should raisers Of live stock. hTe ma
jority of cotton growers will receive
larger incomes than they took down
a year ago. Beet sugar producers
are in more advantageous position,
Steel Movement Irregular.
The movement of steel in the Pitts,
burgh district is still irregular. but
the May pay rolls will be among the
largest of the year to date. In the
Mahoning Valley, the wages paid out
are at a higher level today than in
pre-war days. Prices are still some
what weak in finished steel. but
makers seem determined TO bolster
them up. The sheet and tin plate
mills have been affected by the late
start of the fruit and vegetable
canning season.
MAor truck and bus production for
the fest quarter of 1927 reached a
new record of 131,411 units, as com
pared with 125,069 for the correspond.
ing period Of last year. This record,
according to Alfred Reeves, general
manager of the Automobile Chamber
of Commerce, is astonishing in view of
the more conservative policies of mer-
chandising commercial vehicles put
into effect in 1927.
The Hudson Co. is expected to make
extensive factory changes in June so
that a greater volume of Essex cars
can be turned out, as dealers are far
behind in deliveries.
The shoe industry seems to be look
ing up and orders are making their
appearance in increasing volume. The
same is true Of hosiery, especially the
full fashioned type. The approach Of
Summer weather is largely respon-
sible.
The actual contracts let for larger
construction work continue to show
gains as compared with May. 1926. Ap.
plications for building permits have
fallen off in many localities. The Chi
cago situation, however, continues
strong, as do those in Ohio and Wis
consin. There is a slight decrease in
the demands for soft wood lumber.
The nonferrous metals showed
price declines. The quotations for
lead and zinc are lower than for
some years. The price of copper fell
below IL cents q pound, owing to
the high rate of production which
has been maintained. The Joplin Zinc
Mills are turning out almost twice
as many concentrates as are being
sold and the demand for lead is as
heavy as that metal.
The exports of nitrates from Chile
are increasing and sales of that COM
modify are being consummated at a
price SO ton below the prices
quoted last year. This may offer
some slight aid TO the fertilizer in
dustry. Production of acid phosphate,
a fertilizer material for the first
quarter of the year has been 20 per
cent below that of last year. De-
natured alcohol has advanced owing
to the flood damage in the Louisiana
sugar cane belt, since molasses is
the basis Of much industrial alcohol
production.
Oil production was not curtailed
to the extent that oil men hoped for
and the industry still Is far away
from a solution of it's difficulties.
Soft coal output has declined, but
without Weakening much increased de-
mand. Prices for cotton textiles are
on the up grade.