Evening star., 1937-05-30
Industrial Activity Gains
SIight|y-Retai| Sales
Remain Brisk.
CONFIDENCE IMPAIRED
BY WIDESPREAD STRIFE
Distributors, However, Anticipate
Substantial Summer Trade
When Weather Permits.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.


produced statistical improvement
Steel operations rebounded Produc-
ton of electric power and motors in
creased Carloadings expanded and
retail sales continued robust in most
sections.
What effect strikes of some 10000
steel workers will have on trade and
industry in weeks ahead remains to be
seen. Until disputes between en-
| ployers and workers are settled, how
ever, confidence is expected to remain
| impaired and business in afflicted
areas may slow down.
The Associated Press index of in
| dustrial activity rose to 1888 from lO8 2
the week previous and $40 in the like
week last year.
In its weekly report on 81 cities tho
Department of Commerce said trade
figures for the most part showed onlv
slight gains in dollar values over last
year.
Wholesale Markets Quiet.
Distributors indicated they were
viewing the immediate future with
more optimism than has been the case
IN recent weeks" the department
added, "and are anticipating substan-
tial Summer business as soon as
weather conditions warrant. Whole
sale markets generally were dull, as
might be expected at this period be-
tween seasons"
The steel industry accelerated op-
erations to 81 per cent of capacity
from 80 the preceding week and 67.9
per cent in the like week last wear,
the American Iron and Steel Institute
reported.
Trade observers said that although
seasonal influences were beginning to
make themselves felt, demand has
been we'll sustained in all major lines
except the motor industry, where pro-
duction of 1887 models was coming TO
an end.
| Except for dents in output occa-
stoned by strikes in independent units,
current orders for steel appeared TO
point to comparatively good operations
in June.
Freight Loadings Gain.
Freight carloadings increased slightly
more than seasonally. gaining or per
cent over the preceding week. In the
week ended May % the total was
1925, up IA per cent from the like
week last year, the Association Of
American Railroads reported.
Railroad analysts expressed some
disappointment at failure of gross
April earnings to make more i'm.
pressive showing in terms of net in
come. This was accounted for in
some measure by the comparatively
large sums various leading systems
have spent for maintenance.
Automobile production rose to 1884,
$40 units this week from 131 ,306 the
week previous and l0982l in the
same week year ago, Grams re-
ported. The motor industry will
slacken gradually from this point
with the approach of Summer, trade
observers noted.
| Power Output Up.
Output of electric power braced up
a little in the week ended May %,
the Edison Electric Institute reported.
The total 2,l98,646, 999 klowatt hours.
was l2.l per cent ahead of the like
week last year. 1t was the fifth con-
secutive week. however. in which the
margin Of gain over last year was
narrowed. High spot of the report
was widening of the rate of gain in
the central industrial district.
News from the construction industry
provided important cues to trends
during the week. Favorable was the
continuance Of the more aggressive
now of private funds into the building
field.
Home Building Lags.
Engineering awards on private
money for the latest week totaled
s29, ,928. 900. against sl2,662 900 in the
like week year ago. Less encourae-
ing analysts said, were reports Of
slowing down in residential building.
Higher costs was one reason given in
some circles.
Financial markets showed symptoms
of divided opinion. The stock market
was a peg lower on small trading
Frequently during the week shares re-
mained motionless.
Uppermost in the minds OF some
was the calmness with which shares
accepted news Of strikes. This, they
said. bore witness to underlying
; strength in general business and the
belief Of British interests that Amer
ican stocks are cheaper than their own.
The bond market gave steady per-
formance, with United States Gov
ernment issues in good demand. Com
modify prices were lower on the aver
age Wheat was sharply lower. A rise
in corn on scarcity of available sup
plies brought that staple to l7-year
high.
Detailed Reports Given.
Reports on business conditions in
the IL Federal Reserve districts follow:
BOSTON-Retail sales on average re-
ported somewhat under comparable week
Is G'' per T cent higher than in 1885 period
Prices for wool tops AND woTsIsd ysfns
marx Nk trade. With retail business up silently
Wholesae Sp@ Is'G markets tsA quiet. Textiles slug.
sish. Heavier Industrial production con,
tinued in high gear. but new orders fell
below current output. ,Women's apparel
manufacturers reported slow trade. Stores
have returned to cautious buying policy.
PHILADELPHIA.,,Reta trade eased on.
but showed favorable comparison with last
wear. Trade in some mill districts hit by
labor disturbances. Factory, output main
tanned at previous weeks level. Textile
output runs ahead of sales.
acknowledgements Richmond
department store reported sales 20 per
cent ahead Of previous week and same
week last year. Baltimore trade seen in
uptrend: Washington department store
sales of from previous week but about )
bank checks cashed. S34,2O3.00O, against
S2S,256. 600 year ago.
, NEUTRALITY-SUSPICIOUS. stores reported
sales running % per cent ahead last year.
Steel operations in BirmnRham district up
another point to 96 per cent OF capacity.
CHICAGO-Business picture clouded BY
steel strikes. Trade slowed in some loo ALI
ties Outside areas touched by strikes.
Good weather and approaching holiday
promoted sales of Summer and vacation
goods. Packing operations still curtailed
SAN FRANc1sco-coast trade im-
, | ~ln v1v {rrA Av,t hall