Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-06
BUSINESS STRIKING
INCREASED PACE
Holiday Used to Put Equip
ment Into Shape for Next
Six Months.
BY j. c., ROYLE.
special Dispatch to The Star

Special Dispatch to The star
NEW YORK. July 6.-~The team of
business and industry surged into the
collar with renewed determination after
the Independence day holiday and
swiftly struck an increased pace. The
load was lightened by the cleanup in
cident to the end of the fiscal year. IN
ventories had been held down TO. mini
mum proportions and the various COR
porations were put in fine shape to start
the second half of 1928.
In many industries. the holiday was
devoted to putting machinery and
equipment in shape for more efficient
production.
The steel industry has maintained an
unusual pace since the Summer started.
In the Mahoning Valley the plants will
move right back to around rs per cent
of capacity and an upward buying
movement Is anticipated little later
by steel executives. including President
James "A, Campbell of Youngstown
Sheet g. Tube. Steady orders are COM
ing In from the automotive trade and
from users of structural steel. Oil COM
panies are comemncing to order pipe in
big lots and the Pennsylvania and Ohio
plants are beneffting.
Effect Of New Models.
The automobile trade Is now meditat-
ing as TO the effect the new models will
have on the retail sales. Further mer-
gers in the automobile field are still in
prospect. but negotiations are still far
from completed. The truck produc-
ton of the country Is we'll under that of
a year ago, but it is ample for the needs
of the trade at present. Profits, how
ever, will probably be slightly under
those of 1927.
Tire producers have their plants run
ming at fine rate, and the present
weather Is likely TO increase demand
Some corporations. however, have an
nounced price cuts, which will narrow
profit margins.
Millions OF spindleS in the cotton
mills OF the country are idle this week,
and many will remain so next week.
The rayon plants are very busy. and
many new factories are now in course
of construction The silk mills are
doing fairly well, but the industry is
still overproducing,
Farmers. with money coming In from
farm products, are buying farm ma
chinery In large volume Sales of conf
bines and tractors are running eSpe-
cially heavy
PtUHIhHtS HkG
heavier than ever, and the outlook for
the remainder OF the Summer and the
Autumn Is exceptionally bright. This
Is cheering to the building material
men, but most of them realize they
must continue to hold production close
to demand in order TO keep on the right
side OF the ledger. The lumber indus
try Is making real progress. and the
recent mergers are likely TO help the
cement situation to some extent.
Coal and Coke Unsettled.
Coal and coke remain in an unsettled
and unsatisfactory condition The larg-
est interest In coke production has put
into effect a reduction In wages aver
aging II per cent. This Is the first
change in the scale for this company
since 1922.
The heavy consumption Of gasoline Is
aiding the crude petroleum producers
and the refiners. but the situation, while
promising, has still some way TO go
before 1t is satisfactory. Industrial
chemicals are showing heavy produc-
ton and sound price situation. Elec-
trical equipment company activities
have fallen of. but still are in good
shape. The demand for electrical house.
hold appliances Is specially noticeapi"
and the sales IN the electric refrigera-
ton field are good,
The situation in provisions has shown
decided Improvement as compared
with last year The demand for beef
Is still restricted by high prices. but
most packing concerns have been able
10 show moderate profits and the de-
mand for pork products and mixed
meats has been up To expectations.
Price cutting has developed In the
paper industry owing to overprodue~
ton. Consumption Is at record rate
and mills are working at only % per
cent Of capacity. but even that rate
seems too high.