Evening star., 1934-03-10
FEARS Of LABOR
TROUBLES MOUNT
Detroit Is Nervous Spot, but
Other Centers Also Are
Threatened.
Special Disps tch to The Star.

NEW YORK, March 10.-Growing
uneasiness over the labor situation is
probably the most noticeable aspect
of business sentiment as this week
draws to a close, according to the
current issue OF Business Week, pub
lished today. Detroit is nervous"
the report continues ''justifiably so.
1t has been straining every nerve to
get production up to peak volume, now
fears interruption. But Detroit is not
the only nervous spot
Some manufacturers blame the ad-
ministratlOn'S recent publicizing of its
desire for shorter hours and better
wages, say this has stirred up labor
and emboldened it TO make demands.
But labor, historically speaking, never
has needed much stirring up when it
sees business making brisk gains after
a depression. Never strike till the
mill starts to run nights they used
to say in New Bedford.
Warmer weather in States that
recently shivered in subzero blasts is
giving Spring goods another chance.
With less than a month left before
Easter, an intensive drive will be nee
essary to boost sales. Chain stores
report their February sales maintained
the same spread over year ago as in
January. A Al per cent increase over
last year in cash farm income bring
ing the January farm purse to S494,-
100000 may explain the notable gains
Of mail-order houses and retail eStab-
liShments in agricultural areas. Fac
tory pay rolls were 80 per cent larger
than year ago, but Secretary Perkins
prophecies February and March will
be better
Building Figures Drop.
Construction activity took a nose
dive in February, both public awards
and non on-residential projects con-
traCted sharply from January levels.
That construction should present
such contrary picture TO the eXpan-
sion in steel, motors and textiles is
Disappointing. Part of the blame lies
with the short month which often
tends to reduce volume: part may be
due to the unusual cold weather. But
the main cause IS the withdrawal of
public support Public works and
utility contracts last month declined
from a corrected total Of s113700,0O0
to $50 100000, a SO per cent drop. A
year ago. S17.200OO0 reached the con-
tract stage.
Private building was unable to i'll
the gap though the last days Of the
month show encouraging gains Plans
for nOn-residential construction de-
cIned from s57600,00O to S29 000.0 900.
a so per cent shrinkage and only %
per cent better than last year
Residential contracts maintained
the greatest stability. declining only
4 per cent from the January total,
which had four more days. The VOL
ume Of SI45 millions won't provide
many houses, but plans are on foot to
stimulate this branch Of the industry.
steel plants continue 10 expand
operations, reaching 81 per cent Of
capacity in January, 428 per cent in
February. and currently AIT per cent.
"Tin-plate makers are operating at
IS per cent OF capacity. and rail ton
mage is appearing in fair volume.
Labor problems are now engaging
the attention Of steel and motor exec
utiyes as much as production difficult
ties.
Skilled Hands Scarce.
After the steel industry obliged by
holding in allegiance price advances
for the second quarter, in the hopes
that volume might overcome higher
operating costs, the threat Of shorter
hours and higher wages is looked
upon with some concern. Fear of
advances may drive in additional
business. Shortage Of skilled me-
Chanics is being reported frequently
in metal centers, a situation that will
be aggravated by hours restrictions
Truck sales are 95 per cent above
January. 1893. Production Of Ford
cars and trucks in February totaled
59.337. March schedules are placed
at $4,000 Chevrolet turned out To-
273 cars. a IS per cent jump on Janu-
airy. Plans for 100000 a month for
the next four months are on the
boards. No wonder that employment
in the motor industry is approaching
1929 levels and that the Detroit in
6ex of employment on February IS
stood at 80 per cent Of the l923-25
average compared with Isl per cent
a month earlier and As 5 per cent last
wear"