Evening star., 1928-06-02
BUSINESS HOLDING
UP TO GOOD PACE
Building Situation Satisfac-
tory-Fabric Producing
One of Sore Spots.
BY j. G. ROYLE.
Special Dispatch to The star.


Special Dispatch to The star
NEW YORK, June 2.--The Memorial
day holiday unquestionably checked
both industrial production and retail
distribution during the last week, but It
did so only because Of the loss Of one
working day. The rate OF production
and distribution was practically un-
changed.
There is small doubt that this Is due
in no slight measure to the strength Of
the position Of the farmers Of the coun-
try. This is shown emphatically in the
profit returns accruing to the farm
equipment manufacturers.
Leaders in the equipment field are
unanimous in the belief that production
and sales in general will not only equal
the records Of last year. but in the
case Of combines and tractors will show
an unprecedented advance. Reports
from the Middle West and Northwest
indicate a shortage Of tractors, cultiya-
tors and thrashers. Tractor producers
are having difficulty in supplying de-
mand.
Demand at Peak.
There is evidence that the automobile
demand has reached it's peak for the
time being and that there may be some
falling off in the next few months.
This is not borne out, however, by the
volume of workers employed, which has
shown a steady growth from the fret
Of the year.
The necessity for low cost produc-
ton and economic management and
distribution was emphasized by the an
nouncement Of the Chrysler Dodge
merger. This combination. it is felt.
has smoothed out some OF the kinks in
the situation in that it has concentrated
large volume of production in strong
hands The truck industry is not par
ticipating in. the prosperous conditions
which have been maintained in the
passenger car field.
Production shows a drop OF over II
per cent. as compared with last year.
The tire men are still in an uncertain
position One of the great mail order
/ houses has cut prices TO Is per cent.
What the manufacturers will do is still
uncertain, but IL Is probable that some
of the producers will meet this decline.
Building Is Satisfactory.
The building situation has been
thoroughly satisfactory. so steadily
have the building programs been main
tanned that the steel industry and the
building material producers have been
able 10 count on a steady demand.
Rentals are perhaps slightly lower at
the present time than year ago. tax
ing the country as whole.
The fabric producers are not show
ing material betterment. It is reported
that many OF the New England mills
are asserting that too wide margin
exists between the cost Of gray goods
and the price Of finished products to
the customer They are attempting to
force the bleacheries TO reduce this
margin, threatening to establish their
own bleaching plants.
Rayon manufacturers and silk manu-
facturers are in slightly better case,
and the strength of the wool market
Is being maintained.
10th the price and statistical position
Of copper are satisfactory. There has
been a slight increase in the demand
for nickel as shown in the exports from
Canada and leading producers are
operating at about 80 per cent Of ca
pacity, an extraordinarily high rate.
Steel Output at Peak.
| Evidence is still lacking of material
/ improvement in the lead and zinc in
F. dustries, although the latter metal mas
/ risen from its low Of February, owing
| TO the demand from galvaniZers.
for the year, but the reduction from
/ the peak has not amounted 10 more
/ than per cent Of capacity and opera
/ tions as whole are decidedly high for
the Summer season with quotations well
maintained.
| Chemicals have shared in the gen.
eral expansion Of production and de-
mand This is true also of electrical
equipment. and the latter industry is
! likely to benefit materially from prof.
ects Co eIectrify a considerable mileage
of main track railroads.
The railroad equipment industry and
the coal mining business have shown
comparatively little improvement. al
though a step was taken in the right
direction in the coal industry by the
recent action of one large bituminous
producer in closing number Of its
properties.
Danger of oyerproduction among the
Canadian paper mills was brought into
prominence by the breaking away Of
some concerns from the marketing as
sociation and cut in news print prices