Evening star., 1936-11-22
CASH FLOW SPURS
BUSINESS ACTIVITY
ON BROAD FRONT
Associated Press Industrial
Index Reaches Highest
Point Since 1929.
UNUSUAL RETAIL PACE
LAID TO MANY FACTORS
Widespread Corporate Payments,
Ideal Weather and Approach
of Christmas Help.
BY THOMAS e. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.
Shock troops Of trade and industry
pressed forward over a broad front
last week as reinforcements In the
form of wage increases and heavier
dividends brought up the rear.
The Associated Press index OF In
dustrial activity rose to $50. the high
est since December, 1929. A week ago
it stood at 970, q year ago at 1874
widespread corporate disburse-
ments, favorable shopping weather,
and the approach of Christmas were
major factors contributing to unusual
retail activity during the week ended
November 49," the Department of
Commerce said In Its survey on 81
cities.
with the exception Of some Pacific
Coast cities, where the maritime strike
was exerting q depressing influence, re-
tail trade throughout the United States
sureed upward to heights far above
levels of this time last year"
A small upturn in steel mill opera
tions was aided, experts said, by de-
mand prompted by price increases
scheduled for January 1. Trade sources
expressed satisfaction at the proportion
Of output said to be moving into active
consumption.
Predicting steady production over the
next few weeks, some said possible
advance would depend on the rate at
which specifications might fiow in from
motor makers.
Output was estimated at TAI per
cent Of capacity by the American Iron
and Steel Institute, compared with 74.0
a week ago and 53.7 In the like week
last year.
Auto Output Jumps.
Automobile output advanced to
ll0, 0,l60 units from l04,24s . week ago
and 100,723 in the same period last
year, Grams estimated.
Some observers said production has
recently run ahead so fast as to raise
the possibility Of some slackening owe
the next several weeks.
Bolstered by heavier shipments on
miscellaneous freight, coal and grains,
freight carloadings scored O CONTRA
seasonal gain in the week ended No
| vember II. The total Of 784,672 cars
was an increase of 3.3 per cent over
the preceding week and a rise Of 24.6
per cent over the like 1885 week, the
Association of American Railroads re-
ported. A decline in the movement Of
ores was the only important drop.
The outturn of electric power gained
slightly in the week ended November
IA to 2,169,715, 900 kilowatt hours. It
was the nineteenth consecutive week
in which production held above the
1000, ,000, 900 mark.
While the total was 11.9 per cent
ahead of the same week last year.
analysts pointed out the upswing last
Fall was beginning to render COM
parsons with 1885 somewhat less i'm.
pressive.
Dividends Still Mount.
The tide of wage increases and more
liberal dividends continued to fiow.
There were 1872 favorable dividend
actions for the week, record Of which
1874 were extras, Standard Statistics
said. Declarations will sluice some
$500, ,oo0, 900 into pockets of share
holders.
Included on the roster Of companies
cutting dividend melons to reduce ha-
bility under the tax on undivided prof
It's were: General Electric, Du Pont,
Chesapeake & Ohio, American Smelt-
ing, Anaconda Copper. Commercial
Credit, Inland Steel, Swift, Texas Gulf
Sulphur, National Cash Register, J. I.
Case, Loew's and Lggett & Myers.
OF great significance to further re-
covery momentum, analysts said, was
the continued acceleration in the pace
of heavy industry.
Youngstown Sheet & Tube fell In
line with other steel companies an
nouncing $1o,000,00o expansion pro.
gram. Meanwhile, U. s. Steel let con-
tracts for new mill equipment orders
involving several million dollars. A
week ago Bethlehem Steel announced
q $35.000. 900 expansion program.
Also enjoying the benefits of more
aggressive capital goods expenditures
were the railway equipment makers.
Baldwin Locomotive received an order
for 80 freight engines from the st.
Paul Railroad, the largest single order
since 1881.
Commodities at New Peaks.
Also bearing witness TO industrial
and trade momentum we're rises In
commodity prices to new recovery
peaks. Lead and zinc were both
marked up 50 a ton to the highest
level since october, 1880. Silk futures
reached a new top for the current adj
vance. Cocoa and rubber futures both
jumped to new highs since early 1880.
Shares on the New York Stock Ex.
change bumped into selling after Q
mild rise early In the week, but I'm
ished q little higher. Brokers said
some Liquidation came from circles
fearful Of the effects on trading of
(See BUSINESS. PAGE G-20