Evening star., 1936-08-30
INDUSTRY FALTERS
AND RETAIL TRADE
TURNS IRREGULAR
Slump in Auto Production
and Slight Decline in
Loadings Cited.
MANY LARGER AREAS
REPORT STORE GAINS
Weak Spots Appear, However as
Heat, Vacations and Drought
Exert Influence.
BY THOMAS E. FLANAGAN,
Associated Press Financ.aI Writer.

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.
The Nations industry faltered last
week under the influence of sharply
lower automobile production and a
slight drop in freight car loadings,
while retail trade had a ragged look
in some regions.
The Department of Commerce in its
weekly business survey of 81 cities
said: 'The trend of retail trade were
of decidedly mixed character during
the week ended August 20.
Although many of the larger trade
areas reported gains over the previous
week as well as the corresponding one
last year, evidences we're not lacking
Of a number of weak spots.
| Hot weather, vacations and the
drought were the major adverse in
fluences. AS partially compen.
sating factor, many of the reports re-
vealed continuation of excessive
tourist activities. Wholesale lines
shared to some extent the let-down in
retail business" it said.
industrial index On.
The Associated Press index Of in
dustrial activity fell back to 95.1 from
95.7 the previous week. A year ago it
stood at 1876.
The marked slowing down of auto
mobile output owing to preparations
for the change-over to new models
carried Grams output estimate for the
week down to SO, 937 units from 1902
IN the preceding week, and compared
with 49,l15 in the like week year ago.
In spite of rise in miscellaneous
shipments, aggregate freight carload
ings decreased 0.2 per cent in the
week ended August %. Smaller move-
ment of grain owing to the inroads
OF drought was seen by analysts as
an important factor in the recession.
The total, 734.973 cars, was IT'S per
cent ahead OF the like week Of last
year. Students of traffic trends, how
ever, said that, despite the smaller
haulage Of grains, general industrial
and trade momentum would likely help
to expand the total during the next
few weeks.
The steel industry kept its CONTRA
seasonal vigor. Production last week
edged forward to TBS per cent of ca
pacity from 1872 per cent the week
before and 479 per cent in the cor
responding week Of 1885, the American
Iron and Steel Institute estimated.
Citing the robust demand for fin
ished steels and the fact that various
plants operating rolling mills at from
80 to 100 per cent of theoretical Ca
pacity have not cut down backlogs by
much, steel experts predicted faster
operations for the industry at large
over the next month or two.
Power Output Watched.
The rise of electric power output to
a record high of 2,l25, 500, 900 kilowatt
hours in the week ended August %,
as reported by the Edison Electric In
stitute, was critically studied by busi-
ness circles in view of the fact that
there has been some shifting to steam
generated power from water power be-
cause of the drought.
In some circles the idea prevailed
that, inasmuch as some hydroelectric
companies bought power from steam
generating units, there may have been
duplication of production" in the
latest figures.
Utility observers said that the con-
tinued brisk use of electricity for home
equipment has remained potent in
fiuence in expansion of the industry's s
production.
On this score they stressed the ad.
vance of 54 per cent in July shipments
of washing machines over that month
a year ago. The seven-month total,
% per cent over the like months OF
1885. was the largest on record for
the period.
Motor Firms to Expand.
From two automobile companies
came news of expanding operations.
General Motors Corp. will build at
Linden, N. j., an assembly plant which
will be one of the worlds largest.
President Alfred P. Sloan, jr., return.
ing from Europe, expressed encourage
ment over the domestic outlook. both
for motor makers and general business.
until well into 1887"
Meanwhile, the Packard Motor Car
Co. announced plans to double its ca
pacity. The company expects output
in the next IL months to show a wide
advance over any previous year, an
official said.
Financial and business observers de-
rived cheer from current expert opin.
ions that the Nations railroads will
shortly be more aggressive buyers OF
: eouipment. They cited estimates
which indicated rail systems as a
whole may show an aggregate net
profit of several million dollars for the
first eight months. This would con.
) trast with a net loss Of around $780,
000, 900 in the like period of 1885.
Trade and industrial executives, who
have been cropping in the dark to learn
the possible effects of drought on farm
buying power, had the report Of the
Department of Agriculture to guide
them. It showed that cash income tc
farmers in July totaled $735, 900 900
the largest for any month since 1929
, While 1t was noted the total In
cluded $24,000,000 Of Government
rental and benefit disbursements, the
S711 ,O00,00 of sales was up from
$582, ,000, 900 in June and $45l ,o00, ,001
in July year ago.
Stock Prices Recover.
! On the financial horizon the recov
: cry of prices on the New York Stool
: Exchange bore witness to relaxation
? of tension over the Spanish civil war
: q continued scattering Of improved
= earnings and more liberal dividend
and the huge sum Of idle money still
I in search of employment, brokers said
. In the bond market a run-up o
: United States Government loans =
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