Evening star., 1937-04-25
STEEL RATE SCARS
TOALL:T|ME PEAK
FOR PEACE TIME
Auto Output and Rail Load
ings Also Gain-Trade
Advances.
INDUSTRIAL ACTIVITY
INDEX FAR ABOVE 1886
Roosevelt Economy Plea, Rising
Corporate Costs and Slump
in Staples Studied.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Associated Press Financial Writer.
Soaring steel production, to heights
never before reached in peace time,
topped last weeks national business
account, which also included entries
on higher motor output and freight
loadings and further momentum in
the pace Of retail trade
The period witnessed three streams
OF influence which, business and
financial circles said, may have an
important bearing on the ebb and
flow of trade and industry in weeks
to come. These we're:
l. President Roosevelt's request to
Congress for economy.
2. Comment of corporation ex-
ecutives at annual shareholders meet
ings citing in most instances good
current business and higher operating
costs.
3. A decline in commodities, led
by non-ferrous metals.
Throwing light on the vitality Of
business was the advance of the Asso-
ciated Press index Of industrial activ-
ity to 1858. The week previous it
stood at 1o4.s, year ago at s5s.
Retail Volumes Gain.
Retail trade generally throughout
the country picked up added mo-
mentum during the week ended April
2l," the Department of Commerce re-
ported in its survey of 81 cities.
'In very limited number Of places
unfavorable shopping weather slowed
down business sufficiently to develop
loss from the same period last year,
but such cases were of so rare oc-
currence that the general picture Of
rising volume was not greatly affected.
Wholesale trade was a little slower,
due largely to seasonal influences"
The steel industry accelerated oper-
ations to 9l.3 per cent of capacity.
This estimate of the American Iron
g. Steel Institute compared with 903
the week before and 7O4 in the like
week of 1886.
Steel circles said that although the
estimated rate of output was greater
in terms of capacity in 1929, owing
to subsequent plant expansion, tho
present rate of s1.3 per cent repre-
sented the largest weekly peace time
actual production in the history Of
the industry.
Steel Prices Stabilized.
Announcement that prices of major
lines of steel products will remain un-
changed for the third quarter was
hailed in steel circles as a factor for
stability. This action, they said,
would serve to- prevent excessive spec
ulative buying of steel by consumers
fearful of price increases.
A heavy accent on general business
improvement was provided by the bet.
ter than seasonal gain in freight
shipments. In the week ended April
II carloadings jumped 40 per cent
to ISL, 1923, the Associate of Ameri-
can Railroads reported
This was an upturn of II per cent
over the like week year ago. The
expansion over the preceding week
was attributed by traffic analysts to
the sharp gain in the movement Of
ore, which reflected the early opening
of the Great Lakes shipping season.
Significant also, they said, was the
heavier haulage OF miscellaneous
freight, which afforded a symptom Of
the quickening pulse in numerous in
dustries.
Auto Production Jumps.
Automobile production rose to 1872
$40 units from 125,472 (revised) the
previous week and 120.5l9 in the cor
responding week of 1886, Grams re.
ported.
The gain was analyzed in conjunc-
ton with swelling demand for motor
cars. March domestic retail auto
mobile sales gained to 48O.253 units
from 399,547 a year ago. the Auto
mobile Manufacturers Association
reported
Output Of electricity was down o.
OF l per cent to 2,173,223,0OO kilo-
watt hours in the week ended April
II, the Edison Electric Institute dis
closed. The total was 124 per cent
ahead Of last year. Power experts
noted this was the fourth consecutive
week in which the margin of gain
~'>A oAAS fAS'Aoeo ySdl Riho bSScAlO
narrower. In the week ended March
~ the rise over 1886 was 1871 per
cent.
Uniformity Cited.
Business men casting about for
hints OF trend expressed satisfaction
over the almost complete uniformity
OF the gains in first-quarter earnings
over year ago. On the other hand,
murmurs Of concern went up that
higher operating costs may eat more
lnsistently into profits.
Again the center of debate was the
question of whether rising prices will
sharpen consumer resistance. Some
said they will.
Copper Is one Of both light and
heavy industry's prime ingredients.
During the week makers of numerous
products greeted a decline Of cent
IN the price OF domestic copper to
1412 cents a pound, following lower
(see TRADE, Page G-2)