Evening star., 1937-06-06
Store Sales Advance Far
Above Last Year in
Most Sections.
INDEX OF INDUSTRIAL
ACTIVITY GOES DOWN
Power Production, Auto Output
and Freight Loadings Hold
at Steady Levels.
BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.

tered along on three cylinders last
week
Steel operations, choked off BY
strikes in independent companies, fell
| sharply. The three other major di-
vlsions-motor output, power produce
| ton and car loadings-whirled along
at steady pace
Retail trade, facing its first test OF
Summer consumer demand, responded
smartly to hot weather in most sec
tions. 1t surpassed the corresponding
period last year by substantial mar
gins" the Department of Commerce
said in its report on 81 cities.
Wholesale Trade Gains
wholesale markets, particularly In
apparel lines. also showed improve
ment," the report added
The Associated Press index OF In
dustrial activity dropped to 1854 from
1888 the week previous and compared
with 89.4 in the like period of 1896.
Steel production fell to TIA per cent
Of capacity from 81 the preceding
week, the American Iron g. Steel In
stitute reported. In the like week last
year it stood at 682
Trade circles said the decline was
somewhat less than expected, owing to
well-sustained demand for steel. Hard
est hit by strikes was the YOUNGSTOWN
district, where operations fell to about
4o per cent of capacity from 81
Although new steel business had
been slackening before strikes got
under way, experts pointed out speci-
flcations against contracts have been
holding up stubbornly
Stresslng the bright outlook for siz-
able orders from the automobile IN
dustry for July and August delivery,
observers expressed the opinion there
Will be no important let-down of steel
consumption in the near future.
Loadinss Increase
Freight carloadings rose 2 per cent
TO 794,855 in the week ended May %,
new 1887 peak, according to the
Association Of American Railroads.
The total was 229 per cent ahead of
the like week last year.
Significant, analysts said, were the
good gains scored in shipments OF ore,
coal and miscellaneous freight Rises
in these classiflcations bore witness to
widespread vitality in both trade and
| industry
Output of electric power was up A
little to 2,206, 7l3 900 kilowatt. hours in
the week ended May 90, the Edison
Electric Institute reported. The total
was 1873 per cent ahead of the CORE
| spending week of 1886, an advantage
which compared with l21 per cent
| scored in the preceding week
| High spot of the report was contin-
ued brisk demand in the Central in
| dustrial region and widening OF gains
| over year ago in the New England
and Middle Atlantic sections.
Auto Output Down.
| Automobile output was off to 1033l9
units from 131 ,42l the week previous
and compared with 101 ,752 in the like
period last year. Although the decline
in some measure reflected interruption
OF the Memorial day holiday, trade
observers noted slackening was in
order in any event, owing to the ap-
proach of Summer
A correlative of the slow production
pace was the less insistent retail de-
mand for motors. This was seen as a
normal phenomenon, contrasting with
the contra-seasonal strength of de-
mand in the two preceding years
| Reassuring to business observers
was the fact wholesale commodity
prices, in terms of the Bureau of
Labor index, remained unchanged in
! %
cent of the 1926 average
Ruling trade opinion was that
months ahead will probably bring
some stiffening Of the wholesale price
structure with consequent mark ups
on retail products.
Buying Power Climbs.
Experts in the retail division say
they had seen no important symptoms
of consumer resistance. Furthermore,
some ventured to predict swelling
farm purchasing power and higher
wages will help absorb increases post.
ed by retailers.
Footnote to purchasing power In
farm regions were estimates indicate
ing wheat growers may get about
ST ,000, 100000 or nearly double the
average of the past six years, from
1897 crops
The stock market dipped on Euro
pean war threat fears, then recovered
as clouds disappeared The rebound
lacked energy, however, owing to
| strikes in steel and other industries.
Bonds were steady with fair de.
mand for medium priced rails. Ac-
tivity in United States Government
| obligations was restricted pending dis
closure Of coupons and maturities on
the Treasurys $soo,ooo,Ooo note issue
to be offered Monday
Detailed Reports Given.
BOsTON.-Interest in cotton goods re-
SLIGHTLY. Retail sales were about = per
W ke was last
brisk WhSsssls apparel p , sDs5tsd a.
week. Department store totals in the
metTGP1ifsn sTsa w.Ts uneven xnor,,rx
weather sent retail business 5 per cent
ahead sd. Ms Of thf n like sbow week last yom
CLEVELAND.-Reta distribution was
good and, compared tavorably with the
Weather boosted sales at Toledo where
volume as shown by bank debts was
S21,2l3,4OO. or IL per cent over last
year.
HMOND.-Departmen store turn.
| over in the NTH Federal Reserve district
| climbed we'll above the like period a year
ago with some stores reporting Gains -
high as 25 per cent. Bank clearinRs at
| Baltimore and Washinston were above
the previous and the like week last year.
ATLANrA;-Retail' safes were steady.
| like 1895 week Bank clearinss declined
| to S47 900, 900 from $50 900, 200 the
week before. Steel operations in the Biru1: