Evening star., 1936-03-08
TAX PLANS HOLD
TRADE SPOTLIGHT
MiIder Weather Increases
Sales and Building Activ-
ity in Week.
ansctal pisna tch to The Star.

@peCt4l Dispatch 70 Allc oteA'
NEW YORK, March THE Presi-
dents proposal to revise corporation
tnscome tax procedure virtually over
shadowed this weeks emergence OF
trade from the grip of freezing tenn
peratures, Business Week reports in
its issue today.
The stock markets leaped to the
conclusion that dividend distribution
would be more liberal. Construction
interests Speculated concerning the
possible effect On expansion programs.
Meanwhile Business Week calculates
that even the 1885 tax rates, based
on the business volume of year as
prosperous as 1929, would yield an
enormous income. obliterating all fear
of infiationary expedients to solve the
budget problem.
Milder weather over practically all
parts of the country except the cir
Gle of Northern States near the Great
Lakes is loosening up sales and con-
struction activity. With Easter COM
ing IN April, the next six weeks
should see the best buying squirt in
spring apparent since 1881.
Home Appliances Active.
After setting records in many lines
in 1885, the household appliance in
dustry is out to make the most of the
1886 market. Washing machine
manufacturers started the year with
q 33 per cent margin over last
Frtgidaire is backing its 1886 line OF
refrigerators with the heaviest adver-
tiSing campaign in its history. Kel-
Vinator reports that its February fac
tory shipments of household refrig-
orators were double those of a year
ago.
The Eastern railroads which have
fought the pasSenger-rate reduction
proposals were diSmayed when the
Interstate Commerce Commission ap-
proved the 2-cent mile rate, to re-
place the basic 36-cent rate.
The reluctance of buyers to place
orders Immediately after the settle
ment Of the threatened dress strike i,
annoying to manufacturers, who art
confident that the delay only mean.
that orders will be punched just be.
fore the Easter season.
Auto Pace Increases.
Motor manufacturers are goine
ahead with Spring business, in tht
belief that the worst Winter in decade!
is about spent. Motor production
which dipped to 38O,554 cars in Jan.
uary. as was foreseen, and shranl
further in February, is now expected
to climb to the 100000 level il
March, and even higher in April
Scattered reports indicate a sharI
pickup in both used and new ca
distribution in the last 10 days o
February. New passenger sale
for the month as a whole probably
stayed close to last years 10000
March and April sales will top thost
Of last year and compare favorabl,
with the Spring of 1880. Truck pro
ducers are counting on making al
all-time record in sales this year. sell
ing over $4,000 units in the Unitec
States alone.
Steel Upturn Seen.
Steel operations in the first week o.
March are estimated at 53.5 per cent
of capacity and destined to go con.
siderably higher now that the motol
industry is ready to expand produc.
tion. Railroad business continues tt
pile up. Agricultural equipment, roac
machinery, machine tool. refrigerator
and tin-plate makers are stepping VI
activity as Spring gets under way.
Offlce-equipment makers repor
sales more than 25 per cent ahead O
last year in the first two months o
1886, indicating that the Replacement
field is still substantial one.
Last months dividend declarations
topped those of January, making th'
best February since 1882 Some s.
companies voted extra dividends
against Al year ago; 81 increasec
dividends against % last year.