Evening star., 1937-01-31
HOLDS
RISE OVER 1886
DESP|TEBARR|ERS
Recovery in Other Sections
Helps Offset Strike and
Flood Effects.
TRADE AT STANDSTILL
IN FLOODED VALLEYS
Retail Volumes in Unaffected
Areas Continue to Show Advance
Above Year Ago.
BY THOMAS E. FLANAGAN,

BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.
Although industry faltered and re-
tail trade wilted in flood-swept regions
last week, the Nations business held
stubbornly its advantage over q year
ago.
Strikes and floods cast lengthening
shadows across the trade and indus
trial horizon. Swelling streams in
the Ohio and Mississippi Valleys
paralyzed business nerve centers in
afflicted regions.
Retail trade, power generation,
transportation and manufacturing
petered out and came to dead stop
as life-saving and relief work thrust
to the fore in IL Central States.
Meanwhile recovery energy in the
rest of the country provided busi-
ness with a relatively strong pulse
and left satisfactory background for
rehabilitation work, which will get
under way as waters abate.
Continues to Climb.
with the exception of areas 10
SdlC0 AL L44C 1lOOA OAoIA Al boS
retail trade throughout the country
continued to show advancement over
the corresponding period last year."
said the Department of Commerce in
its survey of 81 cities.
I'm some cities near flooded sec.
tions, abnormal business prevailed due
to demand for emergency merchandise
for relief work. In Cincinnati and
Louisville business was completely
paralyzed," the review said.
Business observers, threading their
way through the maze Of news from
the General Motors strike front, noted
decline in automobile output, some
slackening of steel demand and shrink.
age Of purchasing power in the hands
of striking workers as immediate re.
percussions.
On the long-range view their com.
ment was in general terms and mainly
to the effect the legal aspects OF
settlement might have far-reaching
implications for industry and workers
at large.
Production of motors last week
dropped to 74,14s units from 81 ,395
the previous week and e9,4l5 in the
like week q year ago, Grams reported.
Steel Demand Strong.
Notwithstanding labor troubles and
floods, the steel industry slapped
broad, clearly outlined strokes on the
recovery canvas. These lines spelled
sharp earnings improvement ard un-
derlying strength Of demand.
Samples were: The United States
Steel Corp. report showing 1885 net
profits the best since 1880, and that
of Bethlehem Steel indicating the
highest bookings in 16 years and the
1896 fourth quarter largest for that
period since 1929.
On Monday the American Iron &
Steel Institute estimated the weeks
steel operating pace down to 77.9 per
cent of capacity, compared with 80.6
the previous week and 49.4 in the
like week a year ago.
At midweek, however, Iron Age
put its rate down to rs per cent owing
to enforced shutdowns. The brighter
aspect of the situation, it said, was
that production was stepped up at
Chicago and Buffalo and "is holding
its own in other sections not affected
by floods, except Detroit, where auto
mobile strikes have cut down the
average rate from 100 to SO per cent"
Rail equipment buying and con.
struction demand were the weeks
wheelhorses for the steel industry.
Power Output Of.
Electricity output was a little lower,
but the loss was less than seasonal,
experts said For the week ended
January % the Edison Electric Insti.
tute reported generation Of 2,256..
$4,000 kilowatt hours, up 1877 per
cent from last years like week. This
compared with a gain of 14.9 per cent
over 1886 scored in the preceding
week.
Storm darkness in many sections Of
the country and brisk commercial and
industrial demand helped the power
producers turn in good showing de.
spite labor strife and inundation, an.
alysts explained.
Freight carloadings slid down con-
tra-seasonably, traffic experts said, at.
tributing this in part to crippling Of
shipments on systems in the Missis.
sippi and Ohio Valleys.
Early in the week stock market
begged down in strike and flood fears,
but recovered somewhat later as steel
issues rallied. with United States Steel
hitting a recovery peak.
Failure Of many prominent shares
to join the climb whole-heartedly led
market analysts to adopt an attitude
Of caution toward near-term prospects.
In the bond market softness was
most apparent in United States Gov.
ernment loans, rails and utilities. A
few industrials were in brisk demand
toward the end Of the week, some on
good earnings reports.
BoSTON.-Retail trade in most lines
wen soid trOssS Hetf the repSsssdd ssoo1d
make commitments TOO far into the third
NEW YoRK.-Retailers, wholesalers and
manufacturers reported business running
New = SorE tee c3s RsDsr ard
Brooklyn department stores ran nearly il
per cent ahead Of the same week last year.
PHILADELPHIA.-Rai cramped expans
sion in retail fields. House furnishings.
however. continued in heavy demand.
Wholesalers reported Improvement in
orders for new Spring stocks. They noted
little resistance to higher prices.
= CLEVELAND.-The Retail Merchants
Board revealed retail distribution on from
age. In Toledo retail activity slumped .
RICHMONp.-Unsettledw weather brought
some slackening in retail trade. WASH
tngton department store sales were up 5.3
per cent for the week ended January 27
over the previous week and 20.6 per cent
over the same week last year.
ATLANTA.-Retail trade and bank
cleartngs gained in the sixth Federal Re.
serve district: Continued bad weather