Evening star., 1936-09-20
BIG GAINS HELD
BY RETAIL TRADE,
|NDUSTRYUNEVEN
All Sections of Country Show
Wide Advance Over
Last Year.
FACTORY INDEX RISES
MODERATELY IN WEEK
Analysts Stress That Statistics
Are Distorted by Labor Day
Coming Later This Year.
BY THOMAS z. FLANAGAN,
Associated Press Financial Writer.


The Nations industry strobe along
unevenly last week while retail trade,
bolstered by cooler weather in some
regions and hampered by heat in
others, held aggregate wide gains
over a year ago.
In its weekly survey Of 81 cities the
Department Of Commerce said: "Al-
though retail trade in substantially
all sections Of the country showed
improvement over the corresponding
period last year, continued warm
weather slowed up Fall buying in
many areas to proportions below
those Of the previous week. Where
buying fell of it was largely con-
fined to apparel lines"
The Associated Press index Of in.
dustrial activity rose to $40 from 93.6
the previous week and 70.I In the
like week Of 1885.
Analysts stressed that comparative
figures on both industrial activity
and retail trade were distorted owing
to the fact Labor day fell a week
later this year than last.
Steel Rate Advances.
Steel operations this week advanced
to 72.5 per cent of capacity from $50
per cent in the previous week, which
included the Labor day holiday. A
year ago output was at 48.3 per cent
Of capacity.
Steel men, noting reports that new
business had again revived said in
d1cat1ons were operations will hold
at the current rate or q little higher
during the next few weeks.
Scrap steel. commonly regarded as
the industrys barometer Of condi-
tions, advanced in Pittsburgh with
the price OF heavy melting scrap
rising so cents to $3.50 a ton, the
highest since August, 1929. Scrap
prices in other steel centers also i'm
proved. Experts ascribed the rise
both to increased activity and scarcity.
Freight carloadings for the week
ended September IL showed the in.
roads Of the Labor day holiday, drop.
ping 6.5 per cent under the pre-
ceding week to es9. 1853 cars, a total
slightly ahead Of the like week a
year ago. which did not include the
holiday.
OF more interest to business circles,
however. were the sharp gains in
August net operating income re-
ported by several systems. This. most
agreed, had q two-way significance.
It pointed to improving railroad
credit and 1t paves the way for long,
deferred replacement Of equipment,
they said.
Power Output Declines.
Production of electricity in the
week ended September II was lower,
rejecting the holiday. The total.
2,028, 1888, 900 kilowatt hours, was
about II per cent ahead of the like
week last year, which did not include
Labor day.
As some motor makers got pro-
duction of 1887" models under way,
automobile output for the week rose
to 33,615 units from 26,850 the week
before and compared with 12,600 in
the like week a year ago.
Production is expected to scrape
bottom for the year next week when
an important maker stops operations.
Within the next few weeks, observers
say, the motor industry will swing
into the new production season with
increasing speed. Current predictions
in well-informed quarters are that
output for the final three months Of
the year will reach about 1900, 900
units, compared with 100000 in the
last quarter of 1885.
Sales reports coming to hand last
week bore witness to gains in pur-
chasing power. Sears-Roebuck re.
ported for the four weeks ended Sep
tember 10 sales Of $37,047,510, tho
largest for that period in the history
of the company and 1927 per cent
ahead of the like four weeks Of 1885.
Copper Earnings Mount.
Throwing the spotlight on increased
copper business at higher prices, Ken
necott Copper Corp, reported net
income for the first six months OF
$9,097, ,Ss1, or "a cents share, COM
PdICo Will 0osx4o,VSts "a % SSA4sS -
share in the corresponding six months
last year.
Other significant items on the
weeks business ledger were: Sharp in
creases In cigarette sales, the advance
of private construction awards to the
highest level in more than five years,
dividend increases and arrearage pay.
ments and price increases by two ims
portant soap companies.
Rejecting q mood Of uncertainty in
financial circles owing to uneasiness
over the Spanish civil war and French
political and economic stress, share
prices on the New York Stock Ex.
change dipped early in the week and
recovered later with the aid Of favor.
able business news.
The bond market gained fresh in
vestment interest after the slight de.
(See TRADE, Page G-4.)