Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-29
RECORD BUSINESS
GAINS ENUMERATED
Most Profitable Year Since
World War Indicated in
1929 Survey.
Bv Nae Associated Press.


gestion Of gloom. 1929 will be found
when the book is closed at midnight
on December 81. the most profitable
year for business since the great war.
Likewise, the closing year has been the
first boom year for industrial produc-
ton since 1925. These facts are pointed
out by the Business Week, which has
just made public the results of a sur
vey covering the state of business and
industry in the United States.
Gross corporate income of all cor
porations," the survey said, probably
will run between $150000, OO0, 900 and
$3.50, 900, 100000 and show an increase
Of 10 per cent over 1928. Net earnings
should average an even larger increase,
as much as IL per cent, and probably
will amount to $4,000, 100000. This
does not mean that business as such
was more profitable in itself, but that
corporations did more business and
made more money. It is likely that the
average ratio of net profit to gross sales
and capital investment was no larger
than the normal 10 per cent.
Speculative Activity.
I'm spite of the large role that f.
nancial and speculative activity PLAYED
in the year 1929, larger industrial ac-
tivity had an unquestionable part In
the picture. This year will show the
largest annual increase in production
for any year since 1925. Although the
general impression Is that business has
been going through boom period con-
tinuously since the war, the first half
Of 1929 will be the first time in three
years to which the term can be accu-
rately applied"
Some industries made spectacular
gains" the report adds. These were
chiefly those which had not recovered
their normal rate of increase during
1928 following the recession in 1927
In general the industrial boom centered
in the enormous expansion of the au-
tomobile industry. Production of cars
and trucks increased about 80 per cent
this year. Truck production alone in
creased over As per cent.
This growth carried with Il enormous
increases in steel and other lines of
production. Pig iron output rose over
"A per cent. steel tngot production about
IL per cent, copper about IA per cent,
steel castings 80 per cent, plate glass
over 80 per cent. The automobile op-
tlmism brought with 1t boom year in
the oil industry, with increases In crude
petroleum production of nearly IA per
cent. in gasoline Of over Is per cent.
Textile Production.
THE year was also an exceptionally
big year for textile production as a
whole. Wool consumption increased
ABOUT Is per cent. cotton consumption
over IL per cent, silk consumption over
per cent above the preceding year.
AT the same time there were some
industries which did not make such a
good showing Building construction
ana most OF its related industries had
a poor year. This slump was chiefly
in residential building. Heavy engineer
ing construction increased IL per cent.
but general building contracts were
about IL per cent below 1928. Lumber
production fell at least per cent under
the preceding year, flooring OUTPUT
alone from is to 20 per cent, cement
nearly 3 per cent. brick about 10 per
cent, radiators more than 20 per cent
and plumbing fixtures about Is per
cent
"Bituminous coal production for the
year increased about per cent, while
anthracite output declined slightly.
Zinc and lead production showed rela-
lively small increases, but the output
OF tin increased more than Is per cent.
Poor Crop Year.
ut was a poor year for crops as a
whole. Total agricultural production for
the year will show slight increase, but
somewhat higher prices for some prod
ucts Is expected to yield a small in
crease in total agricultural income.
1T was unquestionably a good year
Tor factory workers. Employment and
pay rolls for the year averaged S per
cent or 6 per cent higher, and the cost
OF living ran fraction below the pre-
ceding year.
Despite the breaking of many
records in industrial output, and the
relatively higher level of general pur-
chasing power among industrial work
ers and farmers, 1t Is striking that the
general volume of trade does not seem
to have shown as great an increase for
the year as industrial production. Pri-
mary distribution as measured by the
carloadings Of other than bulk COM
modities increased barely per cent;
total freight tonmileage only per
cent Wholesale trade showed an in
crease Of only slightly over per cent
and department store sales only per
cent. Export trade increased somewhat
less than 3l2 per cent, but imports
showed marked growth of approx
Business done by check in the l31
cities outside the speculative centers
increased little over 8 per cent.
Postal receipts gained only 3 per cent,
considerably less than the normal aver
age. 1t was a good year for life in
surance statesmen, the amount of new
insurance written increasing per cent:
but along with building. real estate had
thin year, the total of transfers being
per cent less than last year. News
paper advertising showed a growth of
between S per cent and 6 per cent.
and magazine advertising over Z per
cent.
Banks Weather Storm.
The general average growth in trade
during the year. rejecting mainly raw
materials was slightly lower than 1923.
THE financial record Of the year"
the report concludes, SIS wholly with
out parallel-in the volume of security
trading, the volume Of security issues
the amount OF credit used to float them.
and the degree and intensity of the in
hation and collapse OF security values
The figures are insignificantly large
but the outstanding fact to remember
about the year from this point Of view
Is that the banking system weathered
this storm without breaking This year
put 1t to test such as 1t never had be-
fore, and 1t stood the test This NAV
remain-among all the other records
Of the year - the most important
achievement Of 1929"