The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-27
INDUSTRY SEEN
HOLDING GAINS
UNTIL SUMMER
Coal Mining Adjustment
Points to Increase in
Car LoadingS.
BY JULES BACKMAN and
A. L. JACKSON


NEW YORK, April 27-MoSt of
the weekly induces recorded small
advances last week. These, however,
were more than offset by the sharp
decline in bituminous coal produc-
ton. The average daily rate of
bituminous coal production 20 was
TAG, 900 tons, as compared with 1911
900 tons in the preceding week.
Under normal conditions, coal pro-
duction usually declines slowly from
January to the end of April. This
year, however, production continued
to increase enthusiastically until
the end of March, because of strike
fears.
The unusually high level of coal
production during the first three
months of the year caused an in
quently this sharp correction became
necessary. This correction was so
drastic that no further reduction in
the rate of production is necessary.
1t might also be pointed out that
inventories in the hands of con-
sumerS are not so burdensome as
they were year ago, and thus pro-
duction should not remain at its
present low level for more than a
few weeks. In fact, an increase is
expected in the immediate future.
Rise in LOadingS Expected
The sharp decline in car loadings
during the week ending April was
due almost entirely to the reduc-
ton in shipments of coal. Coal
loadings amounted to 74,761 cars, as
compared with 1852 cars in the
preceding week. The ~cause of this
decline is similar to that explained
in connection with coal production
Loadings of merchandise increased
rising to the highest level of the
year, and loadings of miscellaneous
freight were only slightly lower than
the peak of the year.
There was not much change in
the other claSsifications; and since
coal loadingS will probably increase
in the immediate future, the general
trend in total loadings over the next
two or three months will be upward.
Activity in the cotton industry has
also been curtailed sharply and the
inventory position is being rapidly
corrected. Thus cotton forwardings
should not decline much further.
The steel industry showed the
first improvement experience since
the week ended March g. This in
crease was contraseaSonal, and thus
our adjusted index advanced. In
ventories have been sharply reduced,
according to the Automotive Daily
News, and currently the automobile
companies have only about ten days
supply of steel on hand.
Steel on Upgrade Again
Orders placed by other consuming
industries are also showing some
improvement. Thus the rate of steel
production should continue to in
crease. AS is pointed out below,
automobile production seems to be
at its peak at the present time, and
q gradual curtailment in this in
dustry should take place during the
next two months. This should lead
to some curtailment in the rubber,
plate glass, and other industries
that are closely associated with the
automobile industry.
The corrections that took place
recently have improved the supply
demand situation of industry and
thus the decline from current levels
should be relatively small. The i'm
provement that is expected to take
place in steel, coal, petroleum and
textiles should just about offset the
declines that are expected in the
automobile and allied industries.