Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-01


been the petroleum situation. This line
of endeavor has been in the thloeS oi
depression for year and a half. Pr1c-
tically ever factor in the industry. with
the exception of two. showed smaller
profits in 1927 than in the previous year
One of thoSs two exceptions was also
a public utility company and not de-
pendent solely on its income from Pc
troleum. The other was extraordinarily
situated In a field least affected by the
huge production of crude oil which
flowed from the Seminole and Texas
fields throughout the year To-day the
industry Is reported to have turned the
corner
Industrial chemicals have shared full
~ in the up-trend which has been gem
crai throughout the other sections OF
the business list. Production in the first
half of this year will run we'll ahead OF
that for the corresponding period OF
1927. The price situation is sound with
very small accumulation of supplies Nc
extraordinary fluctuations in price arc
anticipated. except perhaps in the nj
trates and ammoniatcS. There is a well
substantiated report that new methods
of production of synthetic nitrogen are
likely to change the industry very ma
terially. Chemical companies. in many
instances. have benefited very decidedly
from the low cost of sugar and molasscS.
which forms the basis for production OF
much industrial alcohol.
The fertilizer industry recorded sales
for the first half of this year fully IS
per cent in excess Of the corresponding
period of the previous year. The total
amount disposed of was almost up To
100000 tons, Prices were well main
tanned. but many of the companies are
still in a position which is far from
satisfactory 50 far as profit margins
are concerned.
Electrical Equipment.
The demand for electrical equipment
is in step with the development of pub
lie utilities Much of the new machin-
cry required is of the central station
type Household equipment sales arc
not falling materially behind. An ex-
ception may be noted in electrical re-
frigeration circles. There. too many
companies, some of them i'll financed
and not adequately managed, engaged
in a field which provided opportunity
for only a certain fixed output. AS a
result some factors in the industry have
suffered. whereas the main producers
have benefited and shown remarkable
gains.
The position of the radio industry
is far more satisfactory today than 1t
was a year ago. There is less uncer-
tainty both in the minds of possible
customers and in the attitude of deal
ers. Demand has stabilized itself to a
remarkable degree and distress stocks
are no longer apparent on the market.
Sales are experiencing a downward
tendency at the moment. but this Is
due to seasonal influences rather than
to an unhealthy condition in the in
dustry itself.
Machinery Buying.
The industrial activity was the fac
tor which has given the machinery and
machine tool equipment companies a
volume of business which they scarcely
had the right to expect at the opening
of the present fiscal year. Sales by the
factors in the industry are reported
from 5 to 30 per cent in advance of
those of last year. while some few
speciality concerns have registered a
gain Of fully so per cent. The trend
was especially noticeable in the auto
mobile. airplane md electrical equip
ment groups with road building and
agricultural machinery concerns coming
close behind in the list Of customers.
The demand for news print paper Is
running at a tremendous rate and for
the first six months of this year has
shown a gain of approximately s per
cent as compared with the previous II
months. but during this time the out
put of the Canadian mills rose II per
cent. Some Of the American mills de-
clined slightly. but the gain in produc-
ton over consumption resulted, Just
before the close of the fiscal year in
a sharp cut in the price Of news print
and a detection on the part OF some
Canadian companies from their selling
organization.
Coal Trailing the Field.
The coal industry is in just about
as bad a shape as it can possibly be.
In the bituminous fields the strike is
still on. Moreover. the non union
mines have been more than adequate
to provide all requirements. The only
bright spot shown in this outlook was
the action taken by one Of the main
bituminous producers to close It's less
economic mines and thereby shut of
production II Is admitted by all fac
tors that the industry Is overturned and
overmanned.
Lead and zinc have experienced a
most uncomfortable and Improbable
year. 1t required most strenuous efforts
to hold output within limits which
would enable any sterilization Of prices
whatsoever. Even now production is in
excess of demand. although both OF
these two metals are showing improve
ment. Lead is undoubtedly showing
tho greatest improvement of the two.
There has been recent expansion IN
the demand for nickel, but this has
been filled largely from Canadian en-
ports which for the first quarter OF
1929 amounted to % .905 500 pounds a
gain Of so per cent as compared with
the previous year. Leaders in the m
dustry are now operating their refiner-
les and smeltcrs at better than 30 per
cent Of capacity.
Tin prices are low at present record
ing a drop of some 10 per cent a pound
in the last ID months, but the demand
for tin plate is insistent and IN view OF
the recent slump in the worlds visible
supply, no further fall may be antici-
pated.
Leather Industry PrOspers
The leather industry has finally
turned the corner with supplies oi hldes
and leather only few weeks ahead oil
CONSUMPTION. This had a favorable re-
action on the position Of shoe manu-
lacrIrers and retailers There has been
a sharp squirt In womens novelty lines
Of shoes In the last months. with price
advances current throughout almost the
entire list
The textile trades is still dark and
dismal cloud on the business horizon
II is far darker In the North than IN
the South Even in the North, however
there are breaks In the clouds,
A tremendous volume Of cotton goods
is being sold. The trouble Is that II
is being sold at price level which leaves
a profit only for those who buy ra"
materials In the most advantageous way
and who have efficient and contented
workmen. New England is still dotted
with textile labor disturbances caused
by wage cuts and disagreements over
working conditions However, taking u