Evening star., 1936-12-20
Steel Rate, Power Output
and Motor Production
Hit High Levels.
PRONOUNCED SHORTAGE
IN MANY LINES SEEN
Trend Toward More Expensive
Types of Holiday Merchandise
Shown by Retail Reports.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Associated HTeSS FINANCIAL writer.
Steel operations, electricity output
and motor production were thrown
into higher speed last week as retail
trade, although retarded by bad
weather in some regions, turned in
wide aggregate gains over 1885.
The Associated Press index Of in
dustrial activity advanced to 1908,
highest since November, 1929 A week
ago it was 99.6, year ago $40.
THE trend toward more expensive
types Of holiday merchandise with a
continuation of substantial gains over
last year, and a pronounced shortage
of many lines due to an unexpectedly
heavy demand. characterized retail
trade during the week ended December
Is" the Department of Commerce re-
ported in its business survey of 81
cities.
Weather UnfavOrable.
"Unfavorable weather interfered
with holiday shopping in a number Of
important cities, cutting down to a
nominal figure the percentage of gains
in those places, but sales in the coun-
try as whole moved TO considerably
higher levels than for the comparable
period of 1885" the review said
Heavy pressure on mills to turn out
the enormous tonnages recently booked
provided partial explanation of the
rise in steel operations to 1872 per cent
of capacity, highest since May, 1880.
In the preceding week it stood at 1858
per cent and a year ago it was at 545
per cent, the American Iron e. Steel
Institute reported
Predictions in trade circles the oper-
ating rate will likely hold around its
current level for several weeks were
studied by steel men in the light Of
shortages in raw steel. coke and pig
iron. In some quarters it was said
these shortages might put a drag on
further accelerations Pf output.
Steel Scrap Advances.
That heavier operations went hand
in-hand with the widest jump in steel
scrap prices scored in a single week in
years was seen by experts as evidences
of the growing robustness of the in.
dustry.
An increase in the rate of gain over
last year was the high spot of electric
power output, which advanced to a top
never before seen and thus held above
the 100000, ,000- 0-kilowatt-hour level
for the twenty-third consecutive week.
For the week ended December IL
output reached 2,27S,303, 900 kilowatt
N-,z
reported this was l49 per cent above
the like week of 1885, whereas the
gain over year ago scored in the pre-
vious week was only 1879 per cent.
Shortening of daylight hours. I'M
favorable weather and continued heavy
industrial demands for power were
factors in the rise, utility circles said.
Statistical yardSticks indicated the
motor industry had whirled along at a
better-than- seasonal clip last week.
Outturn rose to 121, ,038 units from
l19,055 the preceding week and COM
pared with ll3,600 in the like week q
year ago, Grams estimated.
Buying Power Mounts.
This stepping up of output was ex.
planned in some measure by continued
swelling of the purchasing power res
ervoir through wage bonuses, dividends
and higher farm income.
How great have been the gains in
the last-named classification was dis
closed by the final 1886 general crop
report of the Department of Agricul.
ture showing farm incomes the best
since 1929
Price upswings to the highest point
since 1929 were credited with offSetting
deep losses in production owing to
drought to such a degree that 1886
gross farm return was put at $780,
100000. This figure, which included
income from crops, live stock and
benefit payments, was 81 ,027 900 above
1895.
Freight carloadings continued to
hold stubbornly to the better-than-
seasonal action which has been noted
since the years peak was reached in
the week ended October II.
In the week ended December II the
total was 738,747 cars. the Association
of American Railroads reported. AL
though this was down 0.8 from the
previous week, it was 1913 per cent
higher than the like week last year.
Coal was the only major classification
in which shipments increased.
Rail Earnings Gain.
The better than normal movement
OF freight was in turn offered by some
in explanation of stout gains in No
vember net operating income for some
systems.
And to carry the cycle one step
further, income improvement was seen
as having paved the way for the
steadily y-mounting tide of railway
equipment orders.
Booming commodity markets had as
their base both worldwide recovery
and war buying, experts said.
What was described in some circles
as fears of world shortages brought
soaring prices for wheat, rye and rub-
Der futures to highs since 1929.
Other staples which were chalked up
on the weeks score board Of new re-
covery highs included domestic and
export copper, lead, zinc, hides, wool
and cottonseed oil. Some of the highs
were made in prices quoted for imme-
diate delivery and others for delivery
in the future.
On the New York Stock Exchange
shares slipped into reverse as traders
withdrew to await clarification of in
dustrial wage disputes, refusal of the
Interstate Commerce Commission to
grant an extension Of emergency
freight rates and other problems.
In the bond market U. s. Govern.
ment obligations had sinking spell