Evening star., 1936-11-08
BUSINESS SURGES
FORWARD SHARPLY
ON BROAD FRONT
Wage Raises, Dividends and
Bonuses Announced as
Markets Boom.
RETAIL VOLUMES SHOW
CONTINUED EXPANSION
Industrial Index Climbs to 96.2
From 95.7 Week Ago and s1.4
in Same 1885 Period.
BY THOMAS e. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS Z. FLANAOANs
Associated Press Financial Writer.
A general lift in steel wages, fast
flowing tide of special and extra divi-
dends, pay bonuses, sharply higher
third quarter earnings, booming COM
modities and shares, all combined with
quickening of the industrial pulse and
expanding retail sales to make last
week one of the most brilliant periods
in the Nations recent business history.
The Associated Press index in indus
trial activity advanced to 96.2 from
95.7 the previous week and Sl.4 in the
like week of 1885.
Top business news of the week was
the general boost in wages by the
steel industry to the highest scale on
record. Averaging 10 per cent and
running as high as rs per cent in some
instances, the pay lift will cost the
industry about $75,000,000 annually.
Steel circles said the advance, which
affects more than 100000 on November
16, may nick final-quarter earnings, as
it will be impossible for steel COM
panies to put through ofsetting steel
price rises before the first of next year.
Virtually all workers accepted the
increase. Some dissenters wanted
more.
Steel Operations Gain.
Steel operations rose to TAT per
cent of capacity, the American Iron
and Steel Institute estimated. The week
before the rate was TAB per cent, and
in the like week last year, sos.
Quarters close to the industry said
demand had been holding stubbornly.
but were mindful of the fact it usual
ly falls with the advance of Winter.
Automobile output jumped to e4,305
units from $685. the previous week
and compared with 80 ,o95 in the cor
responding week of 1885, Grams esti-
mate showed. Some motor men pre-
dicted a monthly production rate Of
around 100000 units on the stretch
ahead.
Electric power production pushed
ahead to the highest weekly total ever
recorded. The 2.175,s10.000 kilowatt
hours reported by the Edison Electric
Institute for the week ended October
81 was up lat per cent over the like
week last year.
Power experts explained the up
swing partly in terms of the cold snap
which hit most sections of the coun-
try, except the Pacific Coast, early in
the week. This made for heavier use
Of heating equipment. Another factor
was shortening Of the daylight hours.
Loadings OFF Slightly.
In the week ended October 81
freight carloadings were down less
than seasonally to 8l4,l75, a drop Of
2 of / per cent from the previous
week, but rise of 1874 per cent over
the similar 1885 week.
Particular significance was attached
by traffic analysts to the smallness Of
the decline in shipments of miscel-
laneous freight. This, they said. bore
witness to the robust condition of
general business in the week leading
up to the election.
Numerous corporations, desirous Of
reducing liability under the tax on
undistributed earnings, tossed more
liberal and special dividends to share
holders. Included on the roster were
such important organizations as
Standard OIL of New Jersey, Socony-
Vacuum, Phelps Dodge and Firestone
| Tire & Rubber.
Large units declaring bonuses for
workers were: Chrysler Corp, which
will give employees $4,000 900 in De-
cember, the third pay extra this year,
and Standard Oil of New Jersey.
which recommended to all subsidi-
aries bonus of "a 500, 900.
In the background of both the fat
ter dividends and pay bonuses was
the upward trend of third quarter in
come as shown in the reports of
many corporations, including Pull
man, United Aircraft, Revere Copper,
American Rolling Mill, Radio, Otis
Steel and Mack Trucks.
Chain Sales Soar.
Leading chain stores reported sharp
gains in October sales over 1885.
Booming commodities and shares,
oOLllC III cdCu Cldcol14CdGlOtl IlLIlLS
new recovery peaks, were attributed
in Wall Street to variety Of causes.
Most observers cited world industrial
improvement and the release Of
pent-up demand following the re-
election of President Roosevelt.
Outstanding among rallying aom-
nlodities was copper, with the export
metal humping to a new high of
10.85 cents a pound. highest since
December, 1890. Meanwhile domestic
copper was marked up to 1850 cents,
top for five years. Foreign produc-
ton Of the metal was extended 10 per
cent to 1885 per cent of standard
tonnages.
Another staple which thrust ahead
sharply was tin. Demand was whipped
up by Slams joining of the restric-
tion system Of the International Tin
Committee. 1t slumped at the end OF
the week.
Rubber, silk, lead and zinc rose to
new highs for the year or longer.
On the New York Stock Exchange
(see BUSINESS Page G-2)