Evening star., 1929-06-30


So far as the industrial lines were
concerned, there was scarcely an indus
try which did not show improvement,
especially within the last six months.
. This gain was not evenly distributed by
any means. There are still lines of en-
deavor which are in anything but a
satisfactory condition, but outside the
agricultural field most of them made
some gain. 1t is notable that the great
Il est gains were made by the largest and
most prosperous concerns. This was be-
cause such companies were able to cut
costs to the bone and thus widen mar
gins of profit, for net income came from
savings in production and distribution
rather than from high prices. 1t was
another year of consultations and mer-
gers, with executives striving to cut
costs and keep pace with new methods
of manufacture, distribution and selling.
/. Nearly every line showed indications OF
this trend and the public seems to have
lost its terror of corporations merely be-
cause they are big, as the list of bill
lion-dollar concerns continues to grow.
The Business Barometers.
The state of business is perhaps most
accurately measured by the activities OF
the key industries, such as steel, auto
mobile manufacture and agricultural
implement production, and by the con-
sumption of electric power and gas and
the density of railroad freight traftic.
Each one of those lines established a
record for all time during the last fiscal
year and what is more important,
each is doing better at the end of the
period than at its beginning. At no
time did they show a decided sag, even
during the periods when let-down is
usually anticipated.
The gain in the production and sale
| - IL aI,{a 11ac tremendous
Today there are 19, ,000, 900 homes wired
for electricity. The day Of the individ-
ual plant with q production capacity OF
a million kilowatt hours Is fast ap-
preaching In the last year the country
used approximately $4,000 100000 kilo-
watt hours, gain of about IL per cent,
and before the end of this calendar
year the rate is expected to exceed
one hundred billion annually.
This power has been produced In coal
burning plants at the rate OF 1.76 tons
of coal per kilowatt hour, and in some
plants the cost has approximated 81 per
kilowatt hour The improvement In
methods has been revolutionary, and
equipment new five years ago Is obsolete
today.
Consumption Of gas, manufactured
and natural, reached total OF around
2.2CO. 900 900 900 cubic feet. About A.
600 900 homes now use natural gas, and
manufactured gas accounted Tor over
500, GOO, 100000 cubic feet of total sales.
Chanting Wheels Of the Mills.
The chanting wheels of the steel mills
have sung their song for the last six
months at pitch never before equaled.
Nearly all steel mills were at or close to
capacity continuously. The rate Tor
the industry over much of the time was
95 to 90 per cent, the fall below 100
being due to Shutdowns OF units for
necessary repairs. Seasonal slackening
was conspicuous by its absence. Prices
in general were steady and firm but
severe, but demand was continuous,
with customers urging prompt de-
liveries much of the time.
The steel industry is on a more eff
cient footing as to men, machines and
sales methods than ever before. Pig
iron production averaged around $780,
, 900 tons a month for the last six
months or better, while steel ingot ran
between 10000 and 10000 tons a
month. The slackness in oil country
goods was made up for by gas pipe
, lines orders and by increases in tin
plate and other lines.
Agricultural Implements.
Agricultural implement manufactur-
| CTS 1ldu d 1lIlC OLA HlOIllAlo 4IOILl OulN i
: to December 81, 1923, but with the be-
ginning of the new calendar year, the
effect of the agricultural depression be-
gan to be felt This cut domestic sales
to some extent, but orders already in
i were sufficient to keep the manufacture
ing plants going at top speed until the
; foreign trade picked up and carried the
business along. Profits for the larger
! companies were 90 per cent higher this
. ! SnrinQ than wear nrpViOllS
The railroads received decided
benefit from the Supreme Court de-
cision in the O'Fallon case, which will
require new valuation by the Inter-
state Commerce Commission and delay
for long the recapture of any excess
! earnings over per cent on the new
, valuation by the Government. In only
; few weeks during the fiscal year die
' freight car 1oadings fall below the mil
lion mark. For the II months the
loadings eclipsed previous records. The
class l railroads raised their earnings
to nearly $95,000,000 a month as tho
, fiscal year drew to close, which
represented above per cent on the old
) valuation as compared with trifle
i more than 4 a year ago. Moreover
passenger traffic, long on the down
: grade, has turned upward and splen-
did vacation travel is anticipated.
, hClSCIS LSoCHtidis
! It is unlikely the roads can encompass
| many more economies. In fact operat-
ing costs for the next six months are
| likely to be higher and to maintain the
} gain cited above, mergers seem abso-
, lutely essential. Pressure will be brought
to bear on the Interstate Commerce
Commission to further such consolida.
tions as are warranted.
Building activities seem likely Il
/ touch or exceed the ST 900 900 900 mari
/ again in 1929. The volume of worl
dropped slowly last Fall and the minute
| that Winter weather ceased 1t shot up
t ward again this Spring. The mainsta,
: of the building construction industry
r in the fiscal year has been public utility
4 plant construction, public improvements
( and Office and factory building. TIL,
l | volume of residence and apartment
house construction has been fair, but
S only fair.
The huge, towering Office structures
E are what have set the building yea
! apart from others. These have sprunl
up in cities of all sizes, even thost
, where ground values did not necesSitatt
/ / them. The road building and stree
f paving programs have been more ex-
e tensive than ever before and have en-
a gagged services of hundreds of thou
: sands of men, neceSSitated huge eX.
! penditures for machinery and supplied
and aided the automobile business t
! reach its present heights.
: : All Auto Records Surpassed.
: The saturation point has ceased t.
4 worry automobile manufacturers. The.
know now that so long as there ar
S roads to move cars on the industry vii
5 sell automobiles. Which companies vii
a sell the most cars is question, bu
they will be sold.
Output for the first six months o
this calendar year totaled approximate.