Evening star., 1936-12-28
BUSINESS HOLDS
AT HIGH LEVELS
Boom Atmosphere Appears
as Production Mounts
in Many Lines.
er<eiaI Dispa tch TO The star.

GlSClal OADp4bCu 70 Lug ot8Es
NEW YORK, December 2s.-Busi-
ness comes to the close Of 1896 with
something Of boom atmosphere
cropping up here and there, says Busi-
ness Week. Production in several
consumer industries like cigarettes,
household appliances. rayon, shoes, as
well as producer industries like chem
icals, Diesel power. petroleum and elec-
trio power has reached new tops. Stock
and commodity prices have reached
the highest levels in at least q dozen
years. Employment and pay rolls
are expanding. Relief rolls have been
reduced, but not so much as the ex-
psnsion Of industry would seem to
justify. Business defaults have
reached the lowest marks since the
boom days Of 1920.
Steel operations this week slowed
down for one Of the few holidays OBJ
served in the industry, but the month
as whole will be the best Of the year.
This years output Of approximately
47,000, 900 tons, 40 per cent increase
over 1885, represents the best results
since 1929, and the third best in the
history Of the industry.
Railroads Get Jolt.
The I. C. C. has jolted the railroads
by refusing to grant the plea for con-
tinuation of freight surcharges after
December 81. An estimated increase
Of S to 10 per cent will be required to
make up for the loss of $4,000, 900
monthly revenue. and judging from
current trends Of loadings in bulky
commodities chiefly affected by the
rate surchages the roads will manage.
So far there have been no indications
that the dismay of the roads has
led to any cancellation OF equipment
orders.
Motor plants are worried about the
labor situation in their parts supply
plants, which may cause serious in.
terruptions in assemblies. Some steel
mills report postponement Of sheet
and strip orders from motor centers.
Assemblies may not reach the 100000
mark expected this month. Neverthe-
less, the year will close with the great
est volume Of cars produced since
1929.
Motor registrations in 1885 are ex-
pected to reach 28.500. 900, q new high.
surprising the former peak of 1880
by 1000, 900.
Trade Failures Down.
Commercial failures have declined
as the business curve has been rising,
dropping to little more than 5000
this year against 1850 in 1885. One
has to 60 back TO 1920 to flnd lower
figures for failures and to 1919 to find
q smaller amount Of liabilities in
volved in failures than the current
estimated total of 100000. That
1886 marks the bottom of the default
curve, and that 1887 will see the up
ward swing begin, Is now expected.
Enterprises which have come into ex-
istence during recent years Of rapidly
rising volume and prices may find 1t
more dificult to hold on in the COM
ing period Of more slowly expanding
business.
SO1StI uCtlOn oCdVuy JuulkCu mO1C
than so per cent over 1885, but fell
short of the 1890 total despite this
substantial gain. As in the preceding
year, home construction has featured
the market. running 10 per cent ahead
Of 1885. Non-residential construc-
ton, especially of an industrial nature,
has revived sharply, but the backlog
Of needed construction Is still SUBJ
stantial
That the campaign for increasing
the use Of incandescent lamps has
borne fruit Is apparent from the report
that sales this year will set . new high
Of $50, 900 900, . 10 per cent gain over
last years peak. Because such in
creased volume made certain produc-
ton economies possible, two large
manufacturers have announced price
cuts on some Of the larger lamps
finding an expanding use in the home
market