Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-29

stallation Of automatic exchanges also
has been a helpful factor.
Steel Prices Maintained Well.
The steel companies had splendid
fiscal year, although the first part OF
1t was better than the second. Steadi
ness was the main characteristic OF
the industry. It was subject neither
to extreme depression nor extreme in
| fiation. What helped it most was eff
cheney. The plants today, are capable
of a greater production than ever be.
| fore per unit and the workers employ
| ed are accounting for higher pro
| duction than ever has been turned
out per manpower in the past. Prices
were not high.
In the late Winter and early Spring
there was uncertainty. caused by the
movement of the automobile industry.
But demand from the oil country boil
stored operations, and when this sag
ged off railroad buying took it's place.
March saw the highest activity ever
known in that month. After that pc
Rod output sagged, but Is counted on
to pick up again after July.
Net earnings have not been up to
the 1926 fiscal figures. but have been
satisfactory in general, none the less.
A feature of the year was the dis
tribution of a stock dividend of 40
per cent by the United States Steel
Co. and the maintenance of the per
cent dividend rate on this additional
amount of stock.
Auto Industry Sp0tty.
The automobile industry is spotty.
Less than a dozen firms will show
nTnf1fC q n q
vious year, but at least four of those
twelve are doing huge business and
breaking records with great consist
ency. Passenger car production in the
United States and Canada for the fis-
cal year aggregated approximately
3,425,0 900 cars, and trucks accounted
for about 100000 additional vehicles.
Competition was keen. Ford lost
first place in volume of production to
General Motors, and one of the fea-
lures of the year was the determine.
ton of the Ford and Dodge concerns
to put out new models. 1t has been a
light-car year. with heavy demand for
the light, medium priced skies and for
the runabout and roadster types.
Building construction continued on
the even tenor of it's way. The
amount expended for construction In
the last twelve months was undoubt-
eddy in excess of $500 900, 900. This
was despite the predictions that build
ing was on the decline. 1t Is true that
since January l applications for new
permits have fallen off, but actual con-
tracts let for work already produced
have increased as compared with 1925.
1t has become evident that it will
take at least $4,000, 900, 900 spent an.
nually to care for replacement de-
mands alone, so that even If shortages
all We're filed (Which they are mott no
abysmal drop is anticipated in build
ing.
Building materials held steady.
Competition was keen in cement and
steel, but huge quantities were used.
The returns from lumber manufacture
were not high but were regular. A
continuous flow of foreign brick and
plate glass came into the American
markets, to the detriment Of domestic
makers Of those products. Furniture
makers and manufacturers of Office,
theater and hotel equipment enjoyed
a fine years business. The paint con-
Germs all did big business.
Huge Volumes of Freight.
The rail carriers, whose activities
did SO much to take the fiscal year
1927 out of the ordinary rut and make
it a notably prosperous period, con-
tinued to improve both in efficiency
and in financial position. Freight car
loadings from July 1, 1925. to April 80,
1927, averaged 1,035.200 cars a week.
The first quarter net operating income
Of the class I roads in 1927 surpassed
all records for that period, being $685.
,545. Gross revenues rose $13,065,-
100 or g per cent while operating ex-
penses rose only s. per cent.
The British coal strike, which loaded
all American bottoms with fuel for
the United Kingdom, gave the shipping
industry a momentary false pros
perity. For time not enough ships
could be secured to carry cotton,
wheat and copper to Europe. But
when the strike ended, freight rates
declined and American vessels ceased
to make money.
The British, German and Italian
lines are competing vigorously and
successfully. since much of the Amer
lean tonnage is Anticipated. Then, too,
shipping tonnage still is 38 per cent
higher than before the war and 3,000,-
900 tons are idle, most of 1t in Amer
lean estuaries.
Foreign trade has been on the in
crease, although the political disturb
ances throughout the world have had
some deleterious effect and the dollar
balance of trade has been more heav.
lily in favor of the United States. This
is due in some measure to increased
buying of American goods, but 1t is
also attributed to the drop in prices
of silk, crude rubber and raw sugar,
which form three of Americas prin-
cipal imports. The effect of the for
eign cartels or agreements, formed to
capture world markets for foreign
manufacturers, have not progressed
far enough to be thoroughly effective
against American goods.
Real estate has not been so hec-
tically active in the last IL months as
in the previous fiscal period. and its
condition has been far healthier. The
boom territory has been transferred
from Florida to the other side of the
Canadian border, which now is under
going extreme activity.
Rents are Unchanged.
Real estate transfers have risen
steadily since 1916. Rents for resi-
dences show little change. According
to the reports. SIS per cent of the cit
les show rents stationary, % per cent
stated rents were loNei anu IL pea
cent indicated higher figures, as COM
pared with last year. In most cities
business and Office space rented for
slightly higher sums.
Life insurance also was stable. The
volume of new business written in the
last year compared most favorably
with the huge sum piled up in life
policies in 1926 even though there was
not the high pressure drive in the last
! months Of the fiscal period which was
i SO noticeable a year ago. The insur-
ance companies piled huge sums into
real estate mortgages and this aided
| the real estate and building industries.
Commercial aviation was given a
| tremendous lift by the transatlantic
! flights of American pilots. Today
| there Is hardly an airplane factory
which is not running full blast, and