Evening star., 1937-01-17
Retail Activity CurtaiIed by
UnfavorabIe Weather
in Some Areas.
GENERAL MOTORS TRUCE
DOMINATES SITUATION
Final Settlement Will Be Major
Influence in Many Lines.
Wholesalers Busy.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.


Retail trade faltered in some Sec
tions last week owing to unfavorable
weather, but industry kept steady
gait despite the motor strike.
Dominating all other business news
was the truce reached between Cen
eral Motors Corp. and representatives
Of striking workers.
The cessation Of hostilities was in
the nature Of an "armistice," observ-
ers said. On the final terms of agree
ment, it was said, will depend the
vitality Of many sectors of business
and industry.
The Associated Press index Of in
dustrial activity receded to 1902. A
week ago it stood at l02. A year ago
at 85.8.
Retail trade, although retarded to
some extent by unfavorable weather
and labor disturbances, continued to
show a fair margin of gain over the
same period last year." the Depart
ment Of Commerce said in its report
on business in 81 cities
Wn0leSaIerS more active.
Wholesale lines displayed added
momentum as the season advanced
toward the Easter period whica this
year falls two weeks earlier than
last.
Wholesale trade also was stimu-
lated by the possibility of advancing
prices for many commodities, the
review said.
Although steel operations slack.
ened little, trade circles said the
showing made by the industry at
large was good, considering the motor
strike had put a dent in operations
in some sectors.
Output declined to 1873 per cent Of
capacity from 79.4 the preceding
week and compared with 49.4 in the
like week year ago, the American
Iron and Steel Institute reported.
Heavy industry gave evidence Of
continued robustness 1t was this,
most said, which enabled steelmakers
to keep output throttles at relatively
high speed.
Steel BackIogs Large.
Word from the steel front said there
were heavy backlogs in most products.
AS the week drew to close the ver-
dict in most circles was that unless
the motor strike spreads aggressively
to other industries or remains long
unsettled the pace of steel output
should continue relatively steady for
the near term.
Throwing brilliant spotlight on
the more hopeful aspects of the steel
and durable goods terrains were con-
struction plans announced
United States Steel Corp. will spend
s60,000,000. L. H. Brown, president
of Johns-Manville Corp, forecast a
major building program this year,
stressed possibilities of rising building
material costs and announced expan-
sion plans for expenditure OF several
millions. At the same time the Fed
eral Housing Administration disclosed
large scale home building scheme.
Auto Output Declines.
Motor output declined to 81 ,685 units
from 92,230 the week before and COM
pared with 105,17 year ago, Grams
reported. General Motors production
was sharply lower.
Bearing witness to quickening of the
general business pulse after the holi-
day letdown and paving the way for
continued railroad equipment buying
was a run-up of 1873 per cent in
freight shipments for the week ended
January 9.
The total of 698,529 cars, reported
by the Association of American Rail-
roads, was up 1876 per cent over the
like week last year.
While all classes Of freight showed
loading gains, particularly wide up
turns were scored by miscellaneous,
less-than-carlot and coal
Railroad experts, eyeing equipment
purchases and the outlook for further
demand, noted untitled orders for loco
motives at the end of December to-
tailed 1853, compared with rs the pre-
vious year, according to the Depart
ment Of Commerce
Power Production Up.
Electric power production increased
moderately to 2,244,030,000 kilowatt
hours in the week ended January o.
the Edison Institute reported. Observ.
ers said no strictly accurate COMPARE
son with last year was feasible owing
to discrepancy in calendar weeks.
Speculative demand and industrial
buying for inventory again gave va
rious commodities an upward whirl
some to recovery peaks.
Domestic copper edged up to i8
cents a pound, a top since May, 1880.
Other non-ferrous metals which
gained recovery highs were zinc, lead
and tin. Foodstuffs were also in de-
mand, Chicago corn rising to a peak
since early 1925.
Although many issues on the New
York Stock Exchange crept along on
fairly even plateau a good part of
the week, some showed a pronounced
residence.
The so-called commodity" shares
jumped with staple prices, metals, rub
bers and sugars gaining favor at
times. Low-priced equities found
friends. utilities at one time attaining
q 1867 top. AS the week closed
steels took the leadership bit in their
teeth, rejecting good business, analysts
| said.
The bond and money markets in
terpreted slight advance in accept
ance rates as symptom the low point
in money rates had likely been passed.
United States Treasury obligations and
railroad loans were well liked, most OF
the period.
RICHMOND-Tradeo OF two large Rich
mond department stores fell from 10 TO
Is per cent in the week ended January
13 under the like period last year. owing
favorable increases u 3att9more.