Evening star., 1936-10-18
Steel Output and Railway
Loadings Soar to New
Recovery Highs.
WEATHER CUTS STORE
SALES IN SOME AREAS
Retail Volumes Generally Gain
Over Preceding Week and 1885.
Wholesalers Busy.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

covery last week on its drive toward
1929 levels.
October expectations of industrial
expansion, in contrast with diSappoint-
ments in the worst depression years,
were fulfilled in ma jor lines of activity.
Steel production and railroad carload
ings, two outstanding measures of the
industrial pulse. stepped up to new
highs since recovery.
Freight movement and steel output
were the best since 1880. A few indus
tries were near 1929 records. Expand
ing business moved many executives to
consider plans for modernization of
plant facilities, holding out promise Of
increasing pay rolls.
The United States Steel Corp, long
noted for industrial leadership, lent
emphasis to the plant expansion tend
ency by announcing a s29 ZOO. 900 i'm
provement program for its subsidiary,
the Tennessee Coal, Iron & Railroad
Co., in the Birmingham district.
THE revival which we have seen and
are witnessing in its earlier stages is
the beginning of progressive resump-
ton of full operation of Americas vast
productive enterprises" said Myron C.
Taylor, chairman of the corporation.
Index Again at Peak.
Rejecting chiefly expansion in pro-
duction of new automobiles and the
rise of carloadings and steel output to
new peaks, the Associated Press index
of industrial activity duplicated the
recovery top touched fortnight ago.
1t stood at 964 per cent of the 1929-3o
average compared with 96.2 the pre-
ceding week and 76.1 year previous.
Trade returns generally echoed
cheerful industrial reports, although
chill winds and rain dampened the
shopping urge in some centers.
The Department of Commerce, in
its summary of reports from 36 key
cities, said the retail trade trend
generally continued upward, both
when compared with last week and
the same week last year."
THE upward trend in wholesale
trade continued in line with activities
Of the late Summer and FALL" it
added. Reports from industrial
centers indicated increased production
and employment"
Improved purchasing power was
spread among the man behind the
plow, the man in the mill and the
shareholder, judging by the weeks
varied fare of business news. Scat
tered third-quarter earning reports
bore out expectations of profit gains.
American Telephone & Telegraph
covered dividend requirements for the
first time in five years.
Steel Shares Advance.
From the rise in leading steel
shares, Wall Street appeared to be
impressed by the stamina of expan-
sion in that key industry Of the ma
chine age. The American Iron &
Steel Institute estimated operations
had risen to 75.9 per cent of capacity.
the highest for the recovery. The in
crease for the week was small, but
the operating rate compared with 5o.4
per cent in the 1885 week.
Where the steel industry was getting
some of its stamina was apparent in
additional reports of orders for rail
equipment. At the rate new inquiries
| for locomotives have come into the
market it was figured the total for the
year would approximate $50. the
largest since 1880.
Steel activity was mirrored in car
loading reports. Ore shipments were
more than $1,000 cars ahead Of the
same 1885 week. Total loadings in
creased to 82o,19 compared with
734,154 in the 1885 period and 636,999
in the 1884 week.
The freight increase over the pre-
ceding week was 1869 cars. Loadings
normally reach the years peak around
this time.
Business trends got new support
from the motor industry as makers
heightened their stride in production
of new models. Grams estimated
weekly output at 48,195 units compared
with 80, ,345 the week before and 44,416
| year ago.
Electric power output did not come
up to seasonal expectations. But pro-
duction was close to the record set re-
Gently and was 16.1 per cent ahead OF
the comparable figure last year.
Increased world use Of copper, in
cluding demand for armament and a
dwindling surplus, were seen as forces
behind a rise in the export price of
copper to 10 cents a pound, the highest
since April, 1881.
Stock Demand Broad.
Besides steel shares, stock market
bulls favored wide assortment Of met
ais, farm implement. building and
other industrial issues considered in
line to benefit from the rising produc.
ton curve.
With trading on the exchange at q
o-million- -share-day pace, the mar
ket resumed It's advance into new high
ground for the bull campaign toward
the end of the week. Renewed buying
while secondary issues Jagged after .
recent rise.
Reports Of business conditions in
the IL Federal Reserve districts fol.
low:
BOSTON-Operations in cotton
cloth markets continued relatively
high. Leather was firmer. Long-term
prospects for shoes looked favorable
to manufacturers. Interest in wool
perked up little.
NEW YORK-Retaii trade stimulated
BY. weather. Department stores reported
sales nearly IL per cent higher than COM
furnishings relatively good. Orders for
holiday merchandise reported flowing into
wholesale markets in substantially highee
volume.
Observation-Disclosures weather
(see TRADE EXPANSION, Page G-3)