Evening star., 1937-02-14
Steel Pace, Rail Loadings
and Auto Production Turn
Up in Week.
RETAIL ADVANCE HELD
DESPITE BAD WEATHER
Cincinnati and Louisville Trade
Returning Rapidly to Normal,
Survey Reveals.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Power for further national indus
trial and business acceleration was un-
leashed last week
The General Motors strike was set
tied. While analysts will await terms
Of forthcoming negotiations in order
to make specific appraisal of the out
come of last weeks agreement, the
business telescope swung forward to
likely near-term benefits.
Some 100000 workers will 60 back
to production posts. The steel. glass,
rubber, metal and cotton industries
will likely enjoy some quickening of
orders.
Meanwhile. abatement Of floods
helped stir the blood stream of trade
and industry in afflicted areas.
indicators Rebound.
| Actual indicators of steel produc-
ton, freight shipments and motor pro-
duction pointed up during the week
and retail trade strode along higher
plane than last year, despite unfa-
vorable weather in many sectors.
''The reports from Cincinnati and
Louisville indicated that business con-
ditions in those cities are rapidly re-
turning to normal" said the Depart
ment of Commerce in its survey of 81
cities.
Cincinnati stated that department
store sales showed signs of slow re-
vlval from the stagnation of business
caused by the floods. A survey Of
conditions in Louisville indicated that
losses to various industries may run
as high as s60o,00O.0O0, although it
was stated that anything like a def
mite estimate could not be given at
this time" the review said
Associated Press Index Up.
The Associated Press index of in
dustrial activity rose to 99.5 from 98.9
a week ago and compared with 800
in the like week last year.
Business and industrial statistics
accumulating during the week were
studied in the light of what some OBJ
servers termed the possibility" Of
steel and coal strikes ahead.
Bright performer of the week was
the steel industry. with production
bounding forward to equal the prior
recovery peak Of 80.6 per cent Of ca
pacity.
This rate, estimated by the Ameri.
can Iron and Steel Institute. COM
pared with 796 per cent the week
before and SO per cent in the like
week year ago.
The sturdy growth of the heavy
goods industries was high-lighted by
reports the steel industry had pro-
duced at the highest level for any
January in history.
Consideration of this was tempered
to some extent, however, by the belief
in some circles that possible Spring
upturns may have played part in
speeding up the rate.
Auto Output Improves.
Automobile output was somewhat
improved at 82,850 cars compared with
1925 the week previous and 75.l70
in the corresponding week Of 1886,
Grams estimate showed.
Trade circles said that notwith-
standing the General Motors strike
the motor industry at large may prove
able to turn in February record
which will at least compare favorably
with that month last year, which was
hampered by unfavorable weather.
| Freight loadings for the week end
ed February increased 2.3 per cent, a
better than seasonal upturn. The total
of 675,026 cars, reported by the Asso-
citation of American Railroads, was
8.6 per cent higher than the like 1886
week.
A sharp gain in coal shipments and
moderate expansion of less-than-car-
lot haulage were factors in the ex-
| pansion.
Electric power output was somewhat
lower. at 2.201 ,057,000 kilowatt hours
! in the week ended February 6. the
Edison Electric Institute reported.
Week-to-week comparisons, often
distorted by sudden weather changes
at this time of year, drew less atten-
ton than the fact the total was still
holding we'll above the like period OF
last year. For the latest week the gain
over 1886 was 12.1 per cent. compared
with a rise of 1873 per cent over last
year scored in the week ended jan
uary 80.
Store Sales Resistant.
An important weight in the scales
of business was the manner in which
retail sales have proved resistant to
floods in the Middle West, the motor
strike and unreasonable weather in
many regions.
Sales of So prominent retail distrib-
utors reporting for January showed
an expansion Of 1873 per cent over
the like month last year. Significant,
business observers said, was the va
riety covered by reporting organiza-
tions. On the roster were mail order.
shoe. grocery, drug, variety and motor
accessory concerns.
A rise in the average level of COM
modify prices last week was empha-
sized by the forward drive of metals.
Export copper was ringleader on, the
advance, at one time reaching 1353S
cents a pound. a new high sipps
April, 1890. Zinc at East st. Loais-
jumped to $40 cents pound, top
since October, 1929. -, -
The stock market pushing irregu.=
larry ahead early in the week accei-T
Grated lather when news Of the motor
strike settlement appeard. Uneven. =
ness in the weeks final session failed
to dim the luster of rally in steel
and other industrial issues.
Lower prices for high-grade loans
was the distinguishing aspect of the
bond market. This, studied in terms
of the sale Of domestic municipal loans
at higher interest rates, was seen as
symptomatic Of tighter money market
conditions, some Wall Street men