Evening star., 1934-01-26
TRADERS CHEERED
|. BYMOTOR REPORTS
Wage Boost at Tire Plants
DovetaiIs With News
From Detroit.
BY GEORGE T. HUGHES.
Special Dispateh to The Star.

Special Dispatch to The Star.
NEW YORK, January 26 (N.A.N.A).
The most encouraging business news
comes from the motor and allied fronts
Announcement Of 10 per cent in
crease IN wages in the tire industry,
effective February 1, dovetails with dis
patches from Detroit telling Of the
widespread public demand for the new
products Of the motor factories.
In fact, the tone Of automobile fore
casts Is so brightly rosy that some of
the more cautious in Wall Street are
wondering If 1t is fast color.
The new wage scale in the tire indus
try is about 20 per cent above the Level
Of a year ago and compares favorably
with the average Of the years preceding
the depression. It Is estimated that
over $4,000 workers will be affected
Higher wage rates will count heavily 10
Akrons weekly pay rolls, for the reason
that tire companies now are generally
operating on a six-day week, against
five and four day operations only re.
Gently.
G. NJ. Earnings Jump.
General Motors preliminary earnings
statement for 1888, released Thursday
has inspired the hope that the corpora.
tion's first 1884 quarter will be a gooG
one. Delay in getting its new model.
into production, due to inability to OBJ
tain tools and dies on account of the
previous strikes, resulted in the outturr
OF only 2l 900 new model cars during
the fourth quarter of 1888 Normally
some $1,000 cars and trucks are re.
quired as sample stocks for dealers and
distributors at home and abroad.
As the head Of the corporation pointed
out. this does not necessarily mean q
loss of business, but the transfer of q
certain amount OF business from the
fourth quarter Of 1888 to the first quar-
ter of 1894
1t Is this manufacturing delay which
has resulted in such a piling up OF
orders for new automobiles and has
changed the problem of the industry
almost overnight. from one of sales to
one Of production.
Incidentally, this situation is helping
the market for the products of some oi
the smaller companies. And these So
called independents. whose markets
have been somewhat eclipsed by the
big three" during recent dificult years
are now being regarded with more
speculative favor. 1t is reasoned that
as the market for cars expands, there
the independents to cash in on the
overflow.
There Is also a suggestion in recent
sales reports Of buying trend in the
middle priced field Makers in this
classification have long had to take the
dust OF the highly competitive low
priced products.
Same Showing Expected.
Other car makers are likely to show
in fourth quarter results, the effect o
the same slowing down of production
that threw General Motors revenues ou
OF kilter. For the last quarter OF l93'
General Motors operated at an indi
Gated loss of about / cent a share
against a profit of 70 cents in the pre-
ceding three months For the full yea
earnings were equivalent to $l.72 com
mon share, as compared with deflci
Of 81 cents share in 1882. Income TO
last year is computed after making pro
vision for possible losses of s5.ooo,oo
on mpounded cash balances in closet
banks.
For General Motors and also for tn
industry as a whole the forward surg
of production and sales in the curren
quarter are expected to retrieve all los
8A0h44d oAAA RAOAbSS oAA CHNCASAS SOAl
parison with the first quarter of 1888.
Good news also comes from the stee
industry. Bethlehem Steel reports tn,
first profit for any quarter since tn
three months ended June 30, 1881. Fo
the fourth quarter of 1888 net profit.
we're about $500 900. against a net los.
OF $283, 900 in the previous quarter anc
loss OF more than $500, 900 in th'
fourth quarter of 1892. For the yea.
1888 Bethlehem reports a net loss O
8,735 900, as compared with net los
Of $19,400 900 for 1882. While ship
building activities have probably helpec
Bethlehem great deal, some credit fol
the good showing is also given to tn,
recent pickup in operations, along with
better prices.
(Copyright, 1924. by North American News
paper Alliance. IncD