Evening star., 1928-04-27
KEY" INDUSTRIES
ON STABLE BASIS
Usual April Slump Absent.
High Rate of Building
Considered Normal.
BY 7. G.. ROYLE.
Special Dispatch to The Star.


Special Dispatch to The Star.
NEW YORK, April 27.-The old bally-
hoo about "key men" in business is
dying out. but the discussion Of key
Industries today shows that the opera
tions of trade, commerce and industry
now are on a flrmer and more stable
basis than at this time last year. This
statement has been fully supported by
the announcement Of first quarter
earnings in a score of industries which
bear on the general situation.
The shoWings made by United States
Steel and General Motors provided out
standing evidence to this effect, but
not the only evidence by any means.
The usual slump which comes to in
dlIstrial activity in April, between-sea-
son month, has been notably lacking.
The building construction industry and
all it's affiliated lines, back to raw ma
terial production. have shown bet
ter than normal trend.
The other automobile companies with
possibly one or two exceptions nave
shown gains. which, If they did not
parallel those of General Motors. at least
tive statisticians expected two months
ago. The steel plants have kept their
pace instead of dropping off in pro-
duction and when the Improvements in
methods. labor efficiency and equipment
are taken into consideration, are high
above the April level for many years.
Heavy Building Normal.
It is now coming to be considered
that the high rate of building con-
struction in this country is not abnOr-
NAL. but normal. and that unless un-
favorable general conditions crop up Il
may be expected to continue. Money Is
available for building operations in ade-
quate amounts and the costs are chart
ing recovery steady level.
A better knowledge Of the real amount
of cotton carried over from the last
crop year has left a better feeling in
the cotton States. The canning and
fruit outlook is for excellent prices. The
grain crops are still uncertain owing to
prospective weather conditions, but the
general agricultural outlook Is fine.
The live stock men are proSpering to
such an extent that they are choosing
their own time and convenience for
marketing.
The business machine and Office
equipment manufacturers are taking
advantage Of the unprecedented ac-
tivity which is flooding plants with
orders. The same is true of the ma
chine tool manufacturers. The air
plane manufacturers are benefitting
from the intense interest aroused by
record flights and added interest in
commercial aviation.
Electric power output Is between 6
and per cent higher in most indus
trial sections than year ago. This has
been an aid to the non-ferrous metals,
which have displayed steadineSs. despite
the possibility of overlooking the mar
kets. The possibility of huge conSoh-
dations among the public utility COM
panies is still constant topic OF con-
versation in financial circles, despite
the denial that Public Service OF New
Jersey was to be merged with United
Gas & Improvement OF Philadelphia.
Limping Industries Improve Little.
While the businesses which have been
prosperous are becoming more prosper
Gus, the limping industries are showing
little Improvement The cotton teNtIie
groups are still discouraged. Inls Is
not true of silk or rayon manuIaC-
tlrers but woolen men are as pesSi-
The oil industry is bettering Slowly
THE coal miners and operators are sun
in the gloomy depths. with condltionS
hIockinc an exit TO industrial daylgnt.
THE rubber manufacturers are ceasing
IN tremble so violently over the situa-
ton as time goes on, and no cut IN tire
nrices has been recorded. Tney are
last getting rid of high-cost inventory.
The low Joints and high centers are
heInq Srnoothed out Of the railroad
SITUATION. The purchase of the Delaware
&. Hudson holdings in the Wabash ana
TehIah Valley roads by the Pennsyl-
yania has definitely eliminated the
prnblem of a fifth tranScontinental
system under the leadership OF Leonor
+ Ioree Moreover, it has opened the
door to agreements as TO ALLEGATION OF
the loose end roads of the East among
the four existing systems, the PennSyi-
vauia, Baltimore s. Ohio. New YORK
Central and the Van Sweringen system
Some tentative agreements are under
stood already % have been reached and
il is not doubted in railroad circles
that the other three systems we're fully
advised beforehand as 10 the negotia-
tions between Mr.. Loree and the Penn
sylyania. OF course. any such agree
ments must be subject 10 approval OF
the Interstate Commerce Commission.