Evening star., 1934-12-31
BUSINESS TAKES
IRREGULAR PATH
Consumer Goods Continue
Upgrade, but Other
Industries Lag.
Continued From Page BID

the cost of installation and further IN
creases in the general income level will
create an effective demand of substan-
tial proportions for this type OF equip
ment. Many of the old-line companies
are jumping into She picture with their
best efforts. There still appears to be
a chance, however, for small lnde-
pendent company to capture the mar
ket with some special Improvement.
Construction.
In this connection, the building in
dustry comes to our attention. Resi-
dental building has evidently COM
pleted its long deaation, although the
Improvement that was registered IN
1884 was not important. The Govern
ment is evidently determined to create
activity in the building lines, even II IL
is necessary to furnish the cash 10
stimulate them. The year we are now
entering will give the acid test OF the
Government building program
Many industrious minds have been
set to work on the problems of re-
ducing the cost of building increas-
ing its efficiency, and making it pos
sible for the lower income groups TO
enioy decent housing. The burden
of slun clearance will probably fall
on the Government, thus definitely
establishing it as the duty OF the Ma
ton to provide adequate shelter, as
well as food and clothing, TO those
who are not in a position to afford
1t for themselves.
But there is still tremendous de-
mand for new housing ineffective for
the moment because of low incomes,
low rents, and the high cost OF build
ing. Prefabrication may be the So
luton: Government subsidies have
been suggested, further industrial re-
covery may prove to be the only real
stimulant.
The housing activity for 1885 will
probably be greater in the renova-
ton and repair lines than it was in
1884. Paints, wallpapers, roohng,
plumbing and hardware should con-
tinue in good demand as all the de-
ferred wants of present home owners
become effective Likewise rugs, fur
nishings and textiles will probably be
bought in better volume. The stay
at-home habit that has been the di-
rect result of the depression has in
creased the consciousness of the aver
age home owner of the Improvements
that are needed.
Railroads.
No summary Of general business
would be complete without discus
sion of the railroads and the utilities,
neither of which have made much
progress since the bottom of the de-
preston. The crying need of the rail-
roads at the present time is more
traffic. which can come only as the
result of a pickup in the heavy in
dustries. Numerous other burdens
have assumed temporary Importance
In the attitude Of investors toward
rail securities. namely the pension bill
of the last Congress, which will prob
ably be revised IN a more acceptable
form, and the increase Of wage scales.
But the major problem is traffic, and
when that picks up, the other troubles
CT the railroads viii seem relatively
unimportant.
Utilities.
The utilities have continued their
downward course, partly because Of
the increase in labor and material
costs and partly because of the many
enforced rate cuts. The troubles of
the utilities are not yet at an end,
although the end is probably in sight.
Gross business of the utilities, con-
trary to the case with the railroads,
has been very satisfactory, with power
production at the present time not
far from the highs of 1929 But
the industry has not yet struck bed
rock, from which secure foundation
for renewed prosperity can be built.
Equipment.
The outlook for equipment sales for
railroads and utilities alike is good.
The carriers have become conscious
of the value of modern equipment as
a cost-saver, and wherever it has been
possible to do SO, they have bought
new, lighter, more powerful locomo-
tives. The resumption of the upward
trend of electricity sales will shortly
call for an expansion of present
generating facilities.
Farm Machinery.
Industry dependent on farm income
stand in a good position for the COM
ing months. With farm income ap-
proximately 25 per cent better for
the past growing year than for the
year previous, makers of agricultural
equipment have witnessed better COL
lections, fertilizer sales have been
higher, and the mail order houses
have improved their earnings con-
siderably. Farm products are almost
universally bringing higher prices,
and the spread between the prices
that farmers receive for their prod
ucts and the prices that they pay
for finished goods has narrowed.
In summary, the prospects for the
average industry for 1885 would prob
ably appear to show only very con-
servative advance.