Evening star., 1937-08-22
INDUSTRY HOLDS
| AT HIGH LEVELS;
STORE SALES GAIN
Sustained Steel Rate Cited,
With Power Record and
Loadings Rise.
RETAIL TRADE SHOWS
SIGNS OF RECOVERY
Number of Cities Report Volumes
Above Previous Week and
Same 1885 Period.
BY THOMAS f. FLANAGAN,
Associated Press Financial Wrlter

unprecedented peak IN power produc-
ton, and more than seasonal expan-
sion Of freight carloadings gave strong
structure last week
Retail trade in various sections Of
the country showed signs of over
coming hot weather sluggishness," the
Department Of Commerce reported in
its survey Of business in 36 cities.
In number of reporting cities,
trade advanced over the previous week
and the same period last year, with
gains ranging from slight to moderate.
The trend OF wholesale trade generally
was good"
Industrial Index Up.
The Associated Press index of
industrial activity rose to 1892 from
1924 the preceding week and 957
In the like week last year.
Steel operations receded slightly to
1872 per cent of capacity The Amer
lean Iron & Steel Institute estimated.
The rate, regarded as unusually brisk
for this time of Summer, compared
with 84.6 the previous week and 1872
in the like week of 1896.
Steel trade experts said a quicken
Ing OF the inflow of new business
seemed indicated Although betterment
was moderate. observers were i'm
pressed by the fact it included all
regions
Sources OF fresh energy, it was said,
were the motor industry and miscel-
laneous users WHO have been drawing
on inventories recently.
Auto Makers Hold Kew.
Analysts scanning steels Fall pros
poets said motor makers seem to hold
the Key to more vigorous buying for
Autumn requirements.
| 1t was expected that volume steel
orders for new models would come
earlier than this. but the motor car
companies have been DELAYED in get
ting into production of 1898 cars"
Iron Age said
Last week output of automobile,
declined to 93.339 units, Wards re-
ported. The week before the total
was lo325o, and in the corresponding
week last year 1885.
Most important factor in the drop
was the completion of 1887 model
output by three producers and slacken-
ing at other plants as the end of the
1887 run approached
Current production pace. II was
said, is the fastest ever reached in
the closing month of a model wear
Araoe estimates indicated 375,ooo
units may be completed in August.
Power Output Scars.
| Floouctlon OF electricity rose to O.
500, 900 kilowatt hours in the ueek
ehoed August IA. the Edison Electric
institute reported This was the high
est point reached in the history of
Ine INDUSTRY and represented A gain
OF lo6 per cent over the like week
VI 1885 In the preceding week. the
gain over year ago was 81 ner
cent.
| POWER circles said hot weather use
OF energy for refrigeration and other
pul poses ana the high rate of indus
'rlai activity boosted production.
rover circles said hot weather
use OF energy for refrigeration and
oller purposes and the high rate of
industrial activity boosted production
~ was noted that for the past sev-
eral weeks electricity output has been
rising enthusiastically. This has
puzzled experts who looked for no re-
petltion OF last Summers unusual
demand for power.
Loadings Up l Per Cent.
Freight carioadings increased nor
cent TO 777,382 in the week ended
August IA, the Association of Amer
lcan Railroads reported. The total
was % per cent ahead of the like
week last year.
Hall men were said to have been
disappointed at the showing made bv
systems reporting for July. Net on
Grating income of early reporting
ROADS was shown to have declined
under year ago, notwithstanding
rise In gross. This was commonly
ascribed to higher operating costs.
Some cheer was derived from hopes
OF good expansion OF freight ship
ments on the path ahead Estimates
were the Fall peak would be in the
neighborhood of 100000 cars. Last
year the Fall high was $4,000 cars.
Students of heavy industry noted
drop of S per cent in engineering
construction awards from the previous
week. The total of s43,341 900, re-
ported by Engineering News-Record
was down IA per cent from the corre-
spending period last year. A bright
aspect nevertheless, was the increase
In private contracts over the previous
week and the like 1885 period.
Shoe Production Cut.
A foot-note to the speed with which
many industries have stepped up pro-
duction this year was provided by the
Endicott johnson Corp, shoe manu-
featuring concern, which throttled
| down operations to a three-day week.
production and large inventories
were cited
Shares on the New York Stock Ex-
change beat retreat on small volume,
Unrest over the Far Eastern strife
helped unhinge prices, Wall Street
men said.
A second factor in falling stock
prices, it was said, was the weakness
in United States Government bonds.
Selling of these obligations was said to
have come from banks desirous OF
getting more cash. The cash, it was
said, was needed by some to take
care Of possible further expansion in
the demand for commercial funds and