Evening star., 1936-06-28
Aided by Bonus Spending
in Some AreaS-Hurt by
Drought in Others.
SIX-YEAR PEAK IS SET
/ BY INDUSTRIAL INDEX
Better Than Seasonal Trend Mai
tanned, With Further A1-
vance in Week.
BY THOMAS E. FLANAGAN.
Associated Press Financial Writer.


The nations industry last wca':
maintained better than seasonal mo-
mentum while retail trade, nourished
by soldiers bonus spending in some
sectors and cramped by drought in
others, held wide gains over last year.
The Associated Press index of in
dustrial activity advanced to 91.3 per
cent of the 1929-30 average from 9O.9
the previous week and touched the
highest level since the middle of 1890.
For the like week of 1885 it stood at
72.9.
The weekly survey OF business in
36 cities by the Department of Com
merce said: Detroit, Jacksonville,
Savannah, Buffalo, Atlanta, Denver
and Los Angeles reported that the
bonus payment had stimulated trade
in their respective areas -"
Business was being retarded by the
growing drought areas of Minnesota
and the Dakotas, Minneapolis reported
although wholesale business was
strong with no cancellations so far.
The serious drought situation contin-
ued in Alabama and the Tennessee Q
Valley, where, according to the repo.
from Birmingham, corn and cottcl
crops were withering in the fields"
Power Output Jumps.
Production of electricity for til
week ended June 20, aided by indu -
trial activity and irrigation pumpir
in some dry sections, scared to the ur-
precedented peak of zoos, ,243 900 kiio-
watt hours. Slightly higher than. Ii,
preceding week, the total topped IT,
previous record high of last Decent,
and stood Is per cent above the liz
week year ago.
Although steel production aG-
vanced from 70 to 70.2 per cent G.
capacity. or within l point of tn
years high. experts in the industr,
said activity was attributable in SON.
measure to large orders placed il
anticipation of the July price rise
Reports from steel centers stresset,
that the ability of the steel industry
to hold around the best levels in si;:
years was due in part to building Of
railroad rolling stock and demand
for heavy construction steel.
Grams estimated automobile out
put for the week at 99.695 units, COM
pared with 100,733 a week ago and
88,537 a year ago. The slightly lower
rate was seen as the result of factory
outings rather than a pronounced
trend to slower production. Retail
auto sales we're reported to be hold
ing near the May high.
Freight Loadings Rise.
Carloadings gained 1904 from the
previous week to 690,7l6, or 123,667
ahead of the corresponding period OF
1885. Declines in -than-carlot
shipments, coal and coke put a check
on the expansion of freight.
Analysts studied the upturn in the
light of the estimate of the Midwest
Shippers Advisory Board, indicating
that commodities comprising IS PEI
cent of the total freight in that area
would score 10 per cent gain in the
third quarter over the like 1885 period
Bright news on oil was one of the
4lASAA SpObS AlC AlAdlAolA - supply dlAN
demand statistics showed a more IA
vorable relationship, as finished gaso-
line stocks dropped 1,426,000 barrels
the largest weekly decline of the year
Slower refining operations and crude
oil production went hand in hand with
the calculations of the Bureau Of
Mines that gasoline demand in July
will run about II per cent ahead of the
like month year ago.
Rejecting the faster-spending pulse
and higher farm income, Sears-Roe-
beuk reported sales for the four weeks
ended June 18 at rs per cent over
last year and the best in the company
history.
Dividends Favorable.
Numerous representative industrial
companies increased, resumed or de-
clared extra dividends. A partial ros-
ter of companies taking favorable dis
bursement actions included: Westing-
house Electric e. Manufacturing Co.
U. S. Smelling, Refining e. Mining Co.
Consolidated Oil Co., Chicago Railway
Equipment Co. and New Jersey Zinc
Co.
Other important elements in the
weeks financial news we're: Abate.
ment of political and labor distress in
France and strength in the French
franc, opinion in financial circles that
the new tax law might result in highe,
dividends for some companies ano
gains in May net operating income Of
some railway systems.
Although shares worked higher in
the New York Stock Exchange, as
the week drew to close an irregular
decline set in as traders sensed the
usual approach to Summer trade and
industrial slackening.
Detailed Reports Given.
Detailed reports on business in Fed
eral Reserve districts follow:
BOSTON.-BusineSs was mixed
Reports to wool trade circles noted
slackening demand. Sole leather
activity Slumped.
NEW YORK-Retailers estimated
gains of 10 to IL per cent in dollar
volume over year ago. Mems lines
spurted on bonus buying The adj
vance in raw cotton stimulated gray
goods markets.
PHILADELPHIA.-Retail turnover
was brisk. Manufacturing was fair Il
good, except in hosiery. Wool goods
led textile activity.
CLEVELAND.-Steel operations con-
tinued contra -Seasonally strong, boil.
stored by demand for structural
shapes. Freight car awards of about
5000 were an important factor. Re-
tailers said the bonus had brought q
sharp upswing.
RICHMOND.-Despite a temporary
slackening, owing to cooler weather
retail trade held gains over last year
Him r,,l,nlnsnIn .tnliar,,n ix,ararnatat