Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-26
POWER EQUIPMENT
SALES MAINTAINED
Many Firms Report Better
Business in 1890 Than
During 1929.
BY ELY C. HUTCHINSON,

Committee Of the World Power Conference
Power equipment manufacturers, as
class, have been thus far less af-
fected by the depression than others. A
considerable number report an increased
volume of sales for 1890 over 1929.
Many others indicate q satisfactory
year, with q recession of orders in the
last quarter, while much smaller num-
Der are pessimistic. It is significant
that many have been requested to pre-
pare proposals on new work. Some have
taken advantage of q period of lessened
production to better their plant facil-
tiles, improve their product and
strengthen their sales set-ups to better
meet competition when the time comes,
Gross Revenues Gain.
Last year the electric utilities planned
to spend more than 5000, 100000, Of
which 100000 were allocated to
power-plant construction. The total
budget for 1881 will be less than that
of last year. One factor having TO do
with this reduction is the present con-
dition Of the bond market. On the
other hand, gross revenues for the first
10 months of 1880 exceeded those Of
O.c
This Is despite numerous rate redue-
lions.
While work upon relatively few new
stations was started during the year,
several were completed and extensions
we're made to q considerable number OF
existing plants. Extension programs are
being carried forward. Preliminary
plans are also being made for some new
stations.
r.. At t..5,,sk.;oy ala ,-~nr mn-v
high pressure plants In the process ifl-
dustries and much reconstruction were
completed during 1880, hence there il
comparatively little uncompleted con-
struction Of Importance ct the present
/ time. Many firms are now holding Up
projected work pending further Develop
mentS in the business situation, as they
do not deem it wise to include such
commitments in their financial state
ments.
There is q marked desire among in
dustrial executives to secure cheaper
power. This has led to the making OF
numerous studies which await only the
signs of business recovery for release.
Some believe this will come about grad
ually through the early months of the
year, while others, feeling that the re-
covery period will be about equal to the
recession period, do not anticipate nor
NAL conditions until later in the year.
institutional Work.
As to institutional work, the outlook
portends greater activity, due, in part,
to public appropriations to relieve un-
employment. One State Is already COM
mitted to an extensive program of re-
facilitating the power plants Of its pub
| lie institutions. Such work offers wide
opportunity for operating economy and
the example is almost certain to be
widely used
Experience with the present depres-
sion has added to the growing opinion
that business should be programmed
over long periods and definite detectives
covering five years or more will tend 10
stabilize conditions, and avoid cyclic
disturbances. This applies not only to
plant extensions and reconstruction, but
may also properly include maintenance.
The very conditions brought about by
the depression. namely. low commodity
prices and cheaper labor, are one of the
best arguments for starting construction
now. It is doubtful, If for many years
to come, materials will again be OBJ
tainable at anything like present prices.