Evening star., 1936-12-31
HEAVY INDUSTRY
STEPS INTO LEAD
Sharp Recovery Trends of
Last Year Outlined
by Months.
BY THOMAS E. FLANAGAN.
Associated Press Financial Writer

Associated Press Financial Writer
NEW YORK, December 3l.-Heavy
industry drove home the rivets Of
business improvement in 1885 with
more force than any year since 1880.
Sentiment may have been warmed
by sharp retail gains, by the highest
electric output ever recorded. by sweep
ing wage boosts, by the sudden flood
Of extra and special year-end divi-
dends. But nothing did so much to
buttress hopes Of sustained progress
as the gradual mounting Of the tide
Of orders for rails. construction steel,
freight cars and locomotives.
The years business story unfolded
as follows:
JANUARY-Followi an unexpect-
edly fast December pace, industrial
operations slipped back little. Inval-
idation of A. A. A. brought passing
quiver Of apprehension that farm
prices might skid. Little happened as
heavy farm surpluses had already been
sharply reduced. with the exception
Of cotton. Heavier railroad buying
helped cushion a fall in steel opera
tions occasioned by slower automobile
output.
FEBRUARY-Cold and blizzards
boosted sales of Winter merchandise
and hoisted coal production to a six
year peak. but cramped general busi-
ness and blocked freight movement.
Forerunner of other similar steps to
come was registration by Jones &
Laughlin Steel Corp. of a $40 600 900
change Commission, largest issue yet
filed for construction funds.
MARCH-Farmers' cash income
swelled to s528, 10000, 900 for the month.
from $479,000,000 in March. 1885.
Floods put a drag on operations in
the important industrial regions of the
Ohio River basin and New England.
Steel, coal. construction and railways
suffered worst Trade in afflicted areas
slumped Elsewhere it expanded.
APRIL-A financial crisis in France
shook stocks lower. Flood losses in
many sectors of industry were quickly
made up. Motor sales spurted. Auto
mobile makers stepped on production
accelerators. Beneflciaries were pro-
ducers of steel, parts. tires. accessories
and gasoline. Retailers did a brisk
Easter trade.
MAY-Motor makers drove steadily
along. Steel mills held gains stub
bornly. Cotton consumption hit
peak for the month since 1929. Rail-
roads bought more equipment than in
any month since 1880.
JUNE-Drought threats loomed. In
dustrial production further postponed
its normal" decline. Mailmen dis
tributed $1,000 100000 in soldiers
bonus bonds, giving flip to trade.
JULY-Retail trade was hit In
drought regions. But farmers in other
sections got scarcity prices for staples,
a factor which helped offset losses in
blistered districts. Industry continued
to fight of Summer drowsiness.
Threats Of conflict between workers
and employers in steel and other in
dustries cast a shadow.
AUGUST-Vacation slackening OF
trade and industry was smaller than
usual. There was no seasonal drop in
steel operations. Cotton manufacture
ing ran at the highest Summer rate
on record. Miscellaneous demand for
steel held steel operations at more
than 70 per cent Of capacity.
SEPTEMBER-Cotton goods sales
doomed, moving swiftly into consump-
ton channels. Automobile operations
slid further as the 1886 season ended.
Industrial demand helped steel opera
tions Jump to IS per cent of capacity,
a new top for the year. Many indus
tries took steel in advance Of expected
price increases.
OCTOBER New model motors
swung of production lines. United
States Steel Corp. put its preferred
stock back on a regular dividend basis
and announced a big construction
project for q subsidiary. The cotton
goods industry did an enormous busi-
ness. Commodity prices advanced,
some to recovery peaks.
NOVENIBER-Wage increases were
posted for the entire steel industry.
for motor and textile workers. and
many others. Wage bonuses spread.
A burst of extra and special year end
surplus profits tax" dividends sluiced
more than 100000, 900 into the hands
of shareholders. Bethlehem Steel an
nounced major construction plans.
DECEMBER-Railro ds, with earn
ings swelled by the best carloadings
since 1880, bought heavily of locomo-
tives, cars, rails and other equipment.