Evening star., 1935-06-16
STORE SALES SOAR
|. HIGHEST IN WEEKS
AS HEAT ARRIVES
Many Wholesalers Inactive
as Buyers Hold Back for
Price Concessions.
STRIKE THREAT SPURS
BITUMIN0US OUTPUT
Home Building Continues to
Gain-Auto Plants Maintain
Pace, but Steel Rate Lags.
NV nAnrn InrIArcrr
BY RAIDER WINGET.
Associated Press Financial Writer.

BY RAIDER WINGET.
Associated Press Financial Writer.
Blistering Summer sunshine over
much Of the country, after cool, late
Spring. sent the largest volume Of
merchandise in weeks over retailers
counters last week.
Wholesale markets in many lines,
however, remain at an impasse, as
buyers awaited possible price conces-
sions as result of the removal of the
codes, while sellers held firmly TO code
price schedules.
Automobile production held at re-
cent high levels, but industrial sc-
tivity generally continued to- follow
the usual June trend toward lower
levels.
Further reports Of expanding resi-
Dental construction we're notable. This
long dormant major division of indus
try, while still contributing but frac-
tion Of the business that it did in
boom times, swelled to the highest VOL
ume in three and one-han years in
May. Contracts let in 81 States ag-
gregated 81 per cent higher than for
May of last year.
Bituminous coal production spurted,
in the face of a threatened strike
tie-up starting tomorrow, but at the
eleventh hour the administration in
tervened to win a two-weeks truce,
in an effort to pass the Guffey coal
stabilization bill.
Lumber Industry Hampered.
The lumber industry was still ham
pered by the continued strike in the
Pacific Northwest, but orders, and in
some sections production, mounted in
reflection Of the revival in residential
building.
Steel production continued its grad
ual seasonal subsistence, The American
Iron & Steel Institute reported produc-
ton for the week at SO per cent OF
capacity, off p Of one percentage
point from the previous week. Soften
ing Of scrap prices was noted with
some uneasiness, but this interpreted
as chiefly reflection of the oncoming
/ Summer hull, and reduced demand
from abroad.
Heavy or capital goods lines were
mostly rather dull. but the gains in
| building activity were viewed hope
fully. The plan to use larger portion
of the $4,000, ,000, 900 work relief funds
on madework projects rather than pub
| lie works requiring large material out
LAYS, was somewhat disappointing to
steel and cement producers.
/ Consumers goods manufacturers
widely complained Of the continued
! impasse in wholesale markets, where
orders expected for Autumn merchan-
disc have been deferred pending clsri-
fication of the price structure, since
the codes have been removed. Cotton
mills were planning further curtail-
ment.
/ Prices Hold Firmly.
The firmness with which prices
we're held. however, led to hopes OF
an early end of the N. r. A. unset
tlement. The Department Of Com
merce. in its weekly survey, said:
Buyers IN many cases called for ao-
| ditional discounts and long credit
terms, such as existed in the pre-
N. r. A. era. Guarantees of rebates
against future price cuts also were
being asked. Manufacturers and
wholesalers. however. were reported
as being losth to grant these conces-
sions."
Crop conditions. said the Commerce
Departments survey, were reported as
generally favorable, although excess
sive rains and floods have exacted
some ton.
Cram estimated automobile produc-
ton for the past week at s0,7sS
units. compared with the revised fig
ure of 1885 for the previous week
and II ,2e3 for the like week OF last
year.
Electric power production, as re-
ported for the first week Of June,
jumped So per cent over the preced-
ing holiday week, substantially
larger than seasonal gain, and was
AZ per cent over the like week Of
1894. In some of the area around
the Great Lakes, however, power pro-
duction was under 1884. evidently re-
fiecting in part lower steel operating
rates.
Freight LOadings Rise.
The movement of freight for the
same week also showed a better than
seasonal gain and topped 1884, re-
f1ecting partly the squirt in coal pro-
duction in advance of the threatened
strike.
Reports from each of the IL Federal
Reserve areas follow:
BOSTON-Uncertaint in the cot
ton textile situation were midgated
as the North and South trade asso-
Citations agreed upon an attempt to
salvage the best features of the cot
ton code, and prices were more active,
with some price recovery.
NEW YORK-Retail trade quick
ened in response 20 warm weather.
The Commerce Department estimated
department store sales at per cent
| over last year. Wholesale markets
remained abnormally quiet, however.
Buffalo steel production was esti-
mated at IS per cent of capacity, of
2 percentage points. .f.
PHILADELPHIA-C Commercial
houses in the third Federal Reserve
area reported moderate recessions for
the early part of June. Department
stores and speciality shops found sales
), 5 per cent or more under 1884. Whole
sslers and manufacturers also noted
some recession. Fair to good results
were reported for farm UtnPlemBzts,
heavy chemicals, paper, ptpse lARiber
and furniture bLoqnorIS
CLEVELAND - Steel production
dropped about 6 percentage lpnlnts
at Youngstown and pointUhbDlsne-
land General employmenE Mas klinl1t-
/ ly down. but retail trade held up well.
Machine tool builders were busy.
Richmond Reports Gains,
RICHNOND-Sal and other busi-