Evening star., 1937-06-13
Retail Volumes Surge Well
Above 1886 Levels in
Favorable Weather,
EARLY LABOR PEACE
IS REGARDED AS VITAL
Production and Distribution Nav
Be Seriously Retarded After
Another Few Weeks.
BY THOMAS E. FLANAGAN.
Associated Press Financial Writer


underlying strength was obscured by
strikes.
Retail trade borrowed energy from
favorable weather in many parts OF
the country and surged ahead for
wide gains over 1896.
Industrial statistics, notably electric
power output and carloadlngs. were
distorted by the Memorial day holiday
and business news generally was color.
ed by widening Of the strike area in
the steel industry and shut-downs
elsewhere.
Notwithstanding labor troubles,
trade and industry showed robust vi.
tallty, business observers said.
At the same time, they stressed that
unless employers and workers in
strlke-aff1icted industries settle differ.
ences amicably within the next few
weeks momentum of production and
distribution may be seriously retarded.
Factory Index Down.
The Associated Press index of in
dustrial activity declined to l045 from
1864. In the like week last year it
stood at 903.
Favorable weather came to the
rescue of retail trade and volums
moved to higher levels in virtually all
parts Of the country the Department
OF Commerce said in its survey Of
business in So cities
On the whole the margin over last
year was substantial and the entire
picture was considerably improved
over that Of the period running from
mid-April until around the first Of
June
Wholesale trade generally kept
step with retail although both diyi.
sions maintained a watchful eye on
the labor situation over the country"
Steel operations declined to 1852 per
cent OF capacity from TIA the previous
week and compared with 695 in the
like 1886 week, the American Iron d.
Steel Institute estimated.
Little Change Seen.
THE strikes have caused surpris.
ingly little change in market condi.
tions in the steel industry Iron Age
said.
Only negligible amount of busi-
ness has been switched from strike
affected companies to those that are
operating, indicating that consumers
| nave ample stocks for the present and
are not being seriously inconvenced.
If the strikes last another two or three
weeks, the situation undoubtedly will
change
Steel trade circles said the drop in
steel business was attributable in some
measure to seasonal slowing down Of
the motor industry in preparation for
the change-over to new models.
Freight carloadings in the week
ended June dropped 1873 per cent to
692, l40, the Association of American
Railroads reported The total WIS
down 05 of per cent from year ago,
as Memorial day last year fell in the
previous week.
TRAFFIC analysts said the decrease
reflected strikes as we'll as the holiday.
Rail men surveying the outlook said
estimates of Fall weekly loadings
peak of around 100000 cars NAV bs
modified If strike disputes persist dur
ing the Summer
Power Output Lags.
Electric power production slackened
a little to 2,l3l ,092 900 kilowatt hours
in the week ended June 5, the Edison
Electric Institute reported Output
was 100 per cent above the like week
a year ago, gain which compared
with 1873 per cent scored in the week
ended May 29
Norrowing of the rate of gain was
pronounced in the New England.
Central industrial and Middle Atlantic
regions. Marked acceleration in power
consumption in the Rocky Mountain
district bore witness to aggressive
mining operations, power experts said.
Automobile production stepped up
to 1878 units from lO4,l36 re-
vised the previous week and 9s,96D
in the like week last year, Wards
reported.
Power Shortage Found.
Trade observers said that but for
strikes, including the Consumers
Power Co. shut-downs causing power
shortage in the Saginaw Valley Of
Michigan, output would have probably
approximated the pre-holiday level of
10000 units.
The stock market receded, cautiously
at first, then more positively as the
week wore to close. Slowing Of in
dustrial activity and strikes were cited
by Wall Streeters as factors. That
the recession was accompanied by
comparatively small trading WAS seen
as evidence financial circles remain
hopeful for the long pull
The bond market saw medium
priced rail loans under pressure and
United States Government obligations
steady
District Reports Given.
ROsTON-The wool market was fairly
said the decline vas accounted for by
Leather prces we're m 5rm HTs Tsnnsy, nsy vssK W.r,
s.5tz!H NEW YSoRsx:a,sAlthoush Ssls ,s business va.
was uneven, Retail trade was brisk. whole
''s sHfiApELsHiAaw.rm hi.Etx fTsssed: weather NJ.
vacation season and the closing Of school
g s,es ssn xsT. The ,Hop paf Of r.
call call for merchandise. Factory output was
sec eLEvELAND.-The lSsia,,sd Cleveland Retail
ahead Of last week IA and last last ye1". 1sa osss s
per cent measured by bank debts. En-
ployment was about 80 per cent better
ri RicHMoNp.&A brisk demand for hot.
weather goods maintained retail trades
m9he5sss oyer last in II.
Alss M1NNEAPoLis@coei SEct dfEs Weather eontin.