Evening star., 1937-01-03
BUSINESS HOLDS
WELL ABOVE 1885
DESPITE DECLINE
Industry Generally Robust,
Though Facing Strikes
in Auto Division.
STEEL RATE REMAINS
AT II PER CENT MARK
Power Production for Week Shows
Gain of IL Per Cent Over Year
Ago, Institute Reports.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.
The Nations business came down
| the 1886 home stretch with retail trade
better than expected in many cities
and industry generally robust though
threatened with strikes in the motor
| division.
The Department of Commerce, in
its weekly survey of business condi-
tions In IS cities, said:
Notwithstanding the fact holiday
trade in all parts of the country was
better than has been the case in .
number Of years, the letdown imme-
diately following Christmas was no
more than seasonal, and the last week
of the year found retail business rum
ming into considerably higher figures
than during the corresponding period
of 1885.
In many cities the gains for the
year-end period were greater than had
been anticipated Wholesale lines
were seasonally quiet.
'Prolongation of the maritime strike
continues to cut deeper into business
activities in Pacific Coast cities, al
| though trade made a better showing
than last year" the review said.
Strike Threats Watched.
Casting its shadow across the hori-
zon was the threat of strikes in the
motor and allied industries. On this
factor, analysts said, will the near
term rate Of production depend.
Operations in the steel industry re-
mained unchanged at n per cent Of
capacity and compared with 46.7 per
cent in the like week of 1885. the
American Iron and Steel Institute re-
| ported.
Some observers cited advancing
scrap prices and noted that although
aggressive demand for steel had SUBJ
sided somewhat, the industry will
stride into the new year with backlogs
said to be large enough, in some in
| stances, to keep first-quarter opera.
tions undiminished.
For the week ended December 26
| power production totaled 2,O80. .954 900
| kilewatt hours, gain of IL per cent
over 1885, the Edison Electric Insti-
tute reported. In the preceding week
the rise was 1876 per cent over a year
ago.
Narrowing of the margin of increase
| was due to inclusion of the Christ.
mas holiday, which brought a slow.
ing down of operations along the in.
| dustrial front.
Auto Output Down.
A decline in motor output was
studied by experts in the light of in.
creased wage disputes in the industry.
Grams reported production of to
1880 units from 76,989 the previous
week and 55,340 in the like week last
year.
/ In recent months the interest Of
motor makers has focused sharply on
the ability of people to buy cars.
AS the tide of dividend disbursements
| and wage increases and bonuses
mounted the purchasing power ele-
ment came to be regarded as more or
less definitely favorable.
The spotlight shifted during the
week and the big question now is
whether possible strikes in the motor
and allied industries may not put o
serious drag on the production pace.
Although the weekly report on
freight car loadings was postponed
until Monday owing to the New Year
holiday, students of the railroad situ-
alton did not lack for an important
index of condition.
Topping the rail ledger was the fact
class l railroads had scored a gain
of more than 80 per cent in net OPP
Grating income for November.
Drop Less Than Seasonal.
| Meanwhile traffic analysts noted
loadings for the week before Christ
man had declined less than sea.
sonally.
In the market place high spot Of
the week was the boom in commodity
prices to recovery peaks. In the back
ground of higher prices, experts said,
were continued aggressive demand
from industry for inventory, declines
in visible supplies of some staples
and so-called war buying"
The length of the list of commodi-
ties included in the forward trek was
impressive. 1t included corn, wheat,
copper, lead, cocoa, rubber, silk, wool
tops, coffee, cottonseed oil, hides, oats,
rye, lard and sugar. Most pushed
up to tops since 1880 or longer.
Although the stock market enjoyed
midweek rise, shares skidded down
at the close Of the week as the finan.
cial community became concerned
over wage disputes.
The bond market slid under the
finish line with numerous prices at
peak levels, in spite of irregular trends
in some sections. Continued good in
vestment demand was reported in
banking circles.
Detailed Reports Given.
p.CfaL;EI CfL;EIyNELAsMDMTssde Ns.AsuDo,..Tssd showed what the
post-Christmas decline. There were reports
Of numerous orders to postpone deliveries
OF sT siesl eTns .G ssskes and wholesale trad.
continued gains OF about IS and 10 per
cent over last year. respectively: Employ:
ment mem showed an increase OF 2.S per cent
.S1taMoNp- Reporting cities in tn.
store saes shewed hs1p sald
decline from the previous week. but that
ahead Of 1895.
CHICAGO-Many stores reported inven-
Reports indicated wholesale houses and
branch outlets have best advance bookings
OF orders for Spring delivery In seven
years. In some departments. notably tex.
tiles. orders are better than 1929
MINNEAPOLIS-The drug business was
best since 1920 90 per cent over the like
got under way
pHILADELPHIA-Repo from most re.
tailers showed the best Christmas buying
mems apparel shops and credit houses.
Winter sports wear moved fast despite
KANSAS CITY-Wholesale volume was
1S per cent better than the like week o
year ago; Retail trade was up 20 per cent
NEW. YoRK-Retan and wholesale trade