The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-06-17
TRADE FUTURE
STILL CLOUDED,
REVIEW STATES
Forward Buying Is Virtually
at StandStiII, Business
Week Points Out.
By Times Special

bW iWC6 SptCiht
NEW YORK, June 17.-Another
Goddess week finds the business
situation substantially unchanged,
the immediate future still obscured.
Business Week declares in its issue
today. Forward buying, particu-
larly in textile and steel markets, is
virtually at a Standstill. On the
whole, prices have continued firm,
though reduced buying volume leaves
quotations with more or less NOM
inal significance.
Industrial support of code prin-
cipleS, of wage, hour and price pro-
Visions" the review said, lis being
announced daily. In fact. it looks
as though the Blue Eagle had arisen,
like a Phoenix from the ashes of
the Supreme Court bonfire, to hover
over all current activity-or lack OF
activity. Labor Federation protests
that violations of wage and hour
standards are rampant meet with
immediate denials from industry.
now fully aware of its responsible
ity and of its interest in maintains
ing stability of price structure.
Summer Dizziness Here.
Customary summer dullness.
partly enhanced by uncertainties
brought about by sudden elimina-
ton of the codes, is turning BUSH
ness activity induces downward. Mo-
tor production is definitely on the
down grade. and steel orders have
been curtailed accordingly. Check
transactions fell below last years
level during the first week in june
in such significant industrial dis
tricts as Boston, New York, Phil
adelphia and Chicago. Lumber
production is still hampered by
strike.
"On the other hand, electric power
production rebounded from holiday
levels to the highest volume since
the end of March, despite the fact
that a number of states bordering
Great Lakes region called for less
power than a year ago. Cotton
cloth production is upward bound.
Some mills, now free from hours
restrictions, are set to operate on
old three-shift basis, much to the
chagrin of the industry.
ALSO encouraging is the May rec
ord of construction, which reached
the high point of the year to date
with total of $126,7OO,000 in the
81 states east of the Rockies. Resi-
Dental awards were the largest for
any month in three and one half
years, and ran 81 per cent ahead
of a year ago. residential con-
Struction jumped into prominence
last month with awards of over
$50,000000, % per cent gain over
April rate Public construction pre-
sents sorry picture, largely be-
cause of delay in getting the new
work-relief program started. In
May, this group, plus a few utility
awards, amounted to less than Is
per cent of all construction.
Steel Rate Favorable
Despite the declining trend Of
steel production in the past few
weeks, May tonnage was little more
than 1000 tons under the April level.
Last year May activity represented
the peak of the year, production
being stimulated by threat Of higher
third-quarter prices-that eventu-
ally failed to materialize. With no
such artificial support for activity
this year, the industry will avoid
the sudden third quarter contrac-
ton OF 1884 In fact, there is an
excellent chance that the third
quarter of 1885 may run we'll above
last summers PAPER cent of Ca
pacity level
IF the Administration persists in
cutting down average work-relief
expenditure per man, steel, cement
and other industries that had
counted on good slices of the four
billion dollar outlay may find their
shares considerably reduced. Re-
building following floods in Mid
west brought some business to steel
last week. but structural steel vol
ume this year 'ags behind 1884.
Railroads continue to puy cautiously
awarding only tow freight cars in
May. A 180-mile oil pipe order ma
teraliZed this week. and several
other Western prospects are in the