Evening star., 1936-11-15
Rising Tide of Pay Boosts
and Larger Dividends
Helps Incomes.
RETAIL SALES EXCEED
1885 IN ALL AREAS
Wholesale Centers Stimulated by
Holiday Orders and Weather.
Textile Markets Rushed.
BY THOMAS z. FLANAGAN.
Associated Press Financial Writer.

/
swept forward last week on q mount
ing tide of pay boosts and expanding
dividends while industry and retail
trade strode forcefully ahead at wide
gains over 1885.
The Associated Press index Of in
dustrial activity rose to 97o, highest
since February, 1880. A week ago it
stood at 962. A year ago at 82.5.
In its weekly study Of business in
36 cities, the Department of Com
merce said: Retail trade everywhera
throughout the country moved to
higher levels than prevailed at this
time last year.
Wholesale markets were stimu.
lated by increased holiday orders and
good buying weather. Textile markets
particularly enjoyed a wave Of con.
sumner demand"
Auto Production Jumps.
Accompanied by predictions of good
business in 1887 by leading motor ex-
ecutives, automobile production shot
In the previous week the total was
1892 and in the like week year ago,
95,O75.
Electric power output declined less
than seasonally to 2,169 ,480 900 in the
week ended November Z, the Edison
Electric Institute reported. The to-
tai was 1874 per cent ahead of the
corresponding week Of 1925.
With power output holding stub
bornly ahead of a year ago, sources
close to the industry predicted ex-
pansion of plant and equipment in
1887 as virtually certain. Barring un.
foreseen adverse developments COM
panies will extend construction sharp
ly over 1886 levels, some said.
Steel experts, noting the industry
running at sharp gains over 1885,
said prospective price increases are
likely to drive in heavy surge Of
buying orders, cushioning the decline
which usually occurs In December.
Higher Steel Expected.
| Announcements of new price sched-
ules were said to be awaiting final ac-
ceptance Of proffered wage increases
by some workers. Numerous men at
Carnegie Illinois Steel Co.. United
States Steel Corp, giant operating
subsidiary, were dissatisfied with the
amount Of increased pay offered.
though many more signed up.
Operations at steel mills ran at "a
per cent of capacity, compared with
TAT per cent week ago and 52.6
per cent in the like week last year,
the American Iron and Steel Institute
| showed.
As shipments Of all classes of
freight, except coke, contracted, car
loadings in the week ended November
7 declined 81 per cent to 759,318.
The drop was somewhat more than
seasonal, but the total was 159 per
cent ahead of the similar period a
year ago.
Claiming the business and financial
spotlight was a generous scattering Of
industrial companies, large and small.
which announced wage increases,
more liberal dividends and sharply
higher third quarter earnings.
General Motors Acts.
At the head Of the list was General
Motors Corp, which presented share
holders with a "year-end" dividend
of s150, raised wages cents an hour
and announced Sl0,000,000 Christ
mas disbursement to workers.
Business observers were impressed
with the variety of business enterprises
which lifted pay, cut dividend melons
and reported wide third-quarter in
come gains over year ago.
On the roster of the wage boosters
were Eastman Kodak Co., Simmons
Co., Columbian Carbon Co., American
Woolen Co. and Du Pont.
Units declaring more generous divi-
dends included United States Gypsum.
Commercial Solvents, Allegheny Steel,
Eastman Kodak. Chrysler, Gulf Oil.
| Sears-Roebuck and Allis- Chalmers.
Important companies entering earn
ings Improvement on the ledger in
cluded General Motors. Chrysler,
Western Union, Anaconda, United
Carbon and Stone g. Webster.
Bethlehem to Spend.
Tangible evidence of the speeding
up of heavy industry and hope for
continued acceleration was seen in the
announcement Bethlehem Steel Corp.
will spend S35, 100000 on new con-
struction between now and the close
of 1887, extending program on which
S34 SOC, 600 has been spent in the past
year or so.
During the week pessimiStic pre-.
dictions were heard in trade circles
about copper Some said they doubted
the recent heavy volume of buying
could be sustained in the face Of
higher output.
It was said a good deal of the de.
mand from abroad has been from
spectators. To the extent the metal
has gone into such hands, it was ex-
planned. this would constitute a pos
sible threat to price stability.
Silver In Spotlight.
Silver pushed into the new last week
as the price of the imported metal at
New York rose 234 cents to 471a cents
an ounce, a peak since January 16,
and the first change in quotation since
May 19. As the week drew to a close,
however, the price was reduced to ASH
cenIS. ee'
merchandising circles, noting Oce
tober sales well ahead Of 1885, said
they expected wage increases, fatter
dividend checks and gains in farm
buying power to provide basis for
the best Christmas trade in several
years with demand for better goods
to the fore.
Shares on the New York Stock Elk.
A., a.-A-
sections as the week wore on. Liqui-
dation was said to have come from
traders who felt prices might have