Evening star., 1937-06-27
Declines in Steel and Power
Contrast With Motor and
Loadings Gains.
CONFLICTING FACTORS
AFFECT STORE SALES
Retail Trade Spurred by Good
Weather in Some Areas, Curbed
by Strikes in Others.
BY THOMAS f. FLANAGAN,
Associated Press Financial Writer.

The Nations trade and industry
pushed unevenly across the threshold
OF the Summer season last week.
Small doWnturns in steel and elec.
trio power production contrasted with
an increase in motor output and a
contra seasonal expansion of freight
shipments.
Retail trade was spurred by favor
able weather in some sectors, ham,
pered by labor disputes in others.
Strikes in the steel industry con-
tinued dominant factor Business
observers said they put drag on in
dustrial activity and were an i'm
portant influence psychologically.
The Associated Press index Of in
dustrial activity remained unchanged
for the third consecutive week. It
stood at 104.5, compared with 91.3 in
the like week of 1886.
Crop Sales Help.
Nationwide retail trade, subjected
to conflicting influences, lacked def
mite direction during the week ended
Wednesday," the Department of Com
merce said in its survey of 81 cities.
Trade in many centers was stimu-
lated by crop sales which brought in
creased funds into rural areas. Warm,
seasonal weather helped business in
some cities and excessive rains inter-
fered with shopping in others.
Business made its best showing in
the heavier categories. Orders for
machinery and heavier equipment,
while tapering off slightly were far
ahead of a year ago. Machine tools,
electrical apparatus, building supplies,
office equipment, rubber products.
chemicals and conditioning equip
ment continued to show better re-
suits than year ago. Wholesale ap-
parel markets we're somewhat draggy."
Steel Operations Recede.
Steel operations receded to 75.9 per
cent of capacity, the American Iron &
Steel Institute estimated. This COM
pared with 766 the previous week, and
! 70.2 in the corresponding week last
year.
Trade circles said steel business
being allotted to companies not af-
fected by strikes appeared to be grow
ing. but added switching was not Of
large proportions. This it was said.
showed in some measure consumers
needs were less insistent.
In the new business division Of steel,
heavy products held the spotlight.
| Swelling demand for oil pipe was noted.
Farm equipment makers continued
large users. Structural steel awards
bore witness to sizable private con-
| struction work.
| Automobile production was stepped
up to l2l.032 units, Wards reported
This compared with l11.62o the week
before and 104,473 in the like period
| last year
Followers Of the motor industry
noted dollar volume of retail financing
Of new passenger cars increased A. per
cent in May over April, but dipped
8.6 per cent under the like month last
year. according to the Department Of
Commerce.
Power Output Down
Electric power output fell back a
little in the week ended June 10. The
Edison Electric Institute reported a
total of ,2l3,7830 900 kilowatt hours, q
rate 113 per cent ahead of the like
week last year. In the week ended
June II the advantage over 1886 was
1873 per cent.
Power experts stressed that narrow
ing OF the margin of gain over 1896
ruled in every major geographical
region except the New England district.
Freight carloadings rose contra sea-
sonally in the week ended June 10, the
Association of American Railroads re-
ported. The total, 756.289 cars, was
up .03 of l per cent from the pre-
ceding week and 95 per cent ahead
of the like period year ago.
Railroad men stressed the signif-
canoe of one Wall Street compilation.
1t showed the first AZ railroads In MAY
had an increase Of 95 per cent in gross
over last year, but decrease of 3.5
per cent in net operating income from
the 1896 period
Higher Costs Reflected.
This. they said. reflected higher op
Grating costs, including wages It was
noted the railroad labor wage confer
ence was stopped. There was appar-
emily deadlock over demands Of
workers representatives for a wage
boost amounting to around S40O 900 900
year.
The stock market traced an irregular
pattern on small dealings. Traders
were confronted with continued steel
strikes and miSgivings over war-Eke
utterances and gestures abroad. Soft
spots were steels and rails, selling in
the latter rejecting Wall Street dis
appointment over earnings reports.
:, The bond market worked lower. Carrier
| liens fell to a new low average level sine =
Huy tdchsd 1S3s and n utilities dropped t low
| ment issues were mixed. sh
| District Reports Given. 30
Reports on business in the IL Federal
Ressrye districts follow:
BOSTON.-Cotton and leather markets
we're quiet, while strike of Boston wool
OF wools. Retail sales rose 9 per cent over
the ike period year ago Bank deposits
declined, investments decreased slightly
NEW YORK.--Retail trade was spotty,
but generally higher than last year. Mer-
| chants reported inventories except in
some textile lines. generally Of favorable
| proportions.
| PHILADELPHIA.-All retail business
| maintained a consistently upward trend
with buying of vacation accessories push
ing totals ahead Of 1885. Wholesalers had
an active week.
| RICHMOND.-Adverse weather slowed
down retail trade in sections of the NTH
Federal Reserve district, althoush Bslti-
Department store sales in Richmand fell
| under the previous week. but remained
| about even with the like 1885 week.
ST. LOUIS.-The Federal Reserve Bant
reported dry goods. hardware. groceries
electrical supplies and furniture sale.
slowins down. with a recession in bank
| deroSits.