Evening star., 1935-05-12
Retail Sales Rise Except
Where Weather and
Strikes Interfere.
ABRUPT DROP IN AUTO
OUTPUT ANTICIPATED
Industry Watches Labor Strife
Gains in Power Total and
Rail Loadings Hailed.
BY RAIDER WINGET,
Associated Press Financial Writer

Basic business continued on the
upgrade last week with temporary
setbacks hampering progress in re-
Stricted sections.
Typical of general conditions was
retail trade, which forged ahead in
districts where adverse weather,
strikes or other local disturbances
we're not in evidence.
Most sweeping change in the pri-
mary industry lineup was the abrupt
drop in automobile production, turn
which was anticipated by analysts.
Output was 1895 units last week,
compared with revised estimate Of
110,365 for the previous week, it was
announced by Grams Reports, Inc.
Strikes in some General Motors
plants and shutdowns in allied lines
curtailed production in that segment
of the manufacturing industry, and
Ford placed plants on five-day week,
cutting output of assembly lines.
April production was the second
highest in the induStry's history, but
from the current point onward most
motor experts say manufacture should
work lower until November produc-
ton Of new models swings into action.
Power Output Rises.
Electric power production moved
away from what normally should be
down trend and showed rise Of
Is per cent for the week ended May
over the previous week. The gain
was per cent over the same week
in 1884
Cradj+aJ ,,itI, Forn;rr tho rica r-era
such factors as cool weather and
cloudineSS over great part OF the
country.
Gratifying to industrialists was the
report that 569,065 cars of freight
moved in the week ended May 4, a
total 1.8 per cent higher than the
previous week.
Largest gains were registered in
merchandise freight and ore, and
the average increase in all classif1-
cations was greater than is usual
for this time of year.
Bank clearings for the week ended
last Wednesday were the highest for
the year and the largest since the
first week of January, 1882. The
rise came, of course, as monthly bills
21.1 per cent higher than the same
week of last year.
In the face of curtailment in the
automobile trade, steel operations
held up well. it was conceded in most
quarters. The industry as a whole
operated at APP per cent of capacity,
compared with 43~1 per cent opera
tions last week.
Lag Regarded as Normal.
Labor disturbances, particularly in
the motor industry, were credited
with large share of the decline, but
statiSticians pointed out that q de-
clining steel production schedule at
this ine of year is in line with trends
of previous years.
Preliminary reports indicated the
rise in residential building registered
in April was continuing during the
first part of the present month. Resi-
dental contracts in 81 Eastern States
in April were 05 per cent higher than
the same month of last year and that
type Of private building became the
most important part of the total con-
struction of the country.
Notable in reports on current condi-
tions was the statement that ma
chine tool makers had the best April
in five years.
Detailed reports on business in in
dividual Federal Reserve districts fol-
low:
BOSTON-Leather and wool, two
basic markets in New England, con-
tinued strong, while cotton, third.
remained in the doldrums. Sales of
finished cotton goods, however, were
reported strong throughout the coun-
try in response to heavy advertising
in connection with the observance
of National Cotton Week.
NEW YORK-Although demand in
wholesale markets was on smaller
scale last week in New York metro
politan center, sales of Summer goods
were characterized as strong. Retail
trade was uneven because of rain and
cold, with the volume estimated at 5
per cent under the same week of 1884.
Observation-Disclosures &C
.tivity in the third Reserve district
was reported equal to or slightly bet
ter than year ago. Retail sales
were greater in virtually all lines. but
both losses and gains were shown in
wholesale and manufacturing quarters.
Richmond Gains Shown.
RICHMOND-General retail sales
in the fifth district were characterized
as holding recent gains. with WASH
ington reporting trade strong. Balti-
more building permits were "a per
cent above last year and motor sales
were the highest in five years.
ATLANTA.-Bank clearinss in the sixth
district moved forward with business al
a steady pace without, spurts. Department!
store, and other retail sales were reporsd
Birmingham district was unchanged at
o5; per cent Of capacity. A.
CHICAGO.--Wholesale trade in the
Chicago district was called unusually sat-
with one authority attributing the condi-
trad trade IN IN cRicaFe was favored By weather.
but rain at other points tended to slow
ST. LoUIS-Unfavorabl weather held
back business and the planting. of crops
erage Although local strikes contributed
to unemployment a slight improvement
was noted in building trades. mainly in
Sma of excellent
crops in the ninth district spurred busi-
ness. Manufacturers and wholesalers re-
ported greatly increased sales and a re-
vival Of building operations was reported
througbout the district
KANSAS C1TY.-Restricted buying in
wholesale and retail markets was attrib-
uted by merchants to a let down in Gov
ernment benefits, but collections were
equal to sales ENCOURAGEMENT was de-
rived from rains a good crop being cited
stimulating influence to trade.
DALLAS.-Recent rains over the
drought area west of Dallas are reported
to have frightened ranching prospects,
and an end to feed bills is expected BY
ranchmen over practically the entire cat
tie country. Nearly all west Texas mo-
hair has been sold. and wool shearing In