Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-05-16
TRADE IRREGULAR,
WIDE GAINS OVER
1885 LEVELS HELD
Steel and Auto Activity Up,
Power Output and Load. ,
ings Down. J
DEEPENING CLEAVAGE
ON PROSPECTS WATCHED
One Group Believes Business May
Slow Down-Other Sees Stock
Declines Overstressed.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer,

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.
Although the Nations business last
week continued at wide gains over q
year ago, small setbacks from the pre-.
ceding week occurred in some sectors.
Minor improvement In steel oper-
ations and motor production con-
trasted with modest recessions in
electric power output and movement
Of freight
One phenomenon which was moro
pronounced and which may fore.
shadow events to come, observers said.
WAS the deepening cleavage of opinion
on the outlook
On the one hand, some said bust.
ness might slow down following tho
swift pace of recent months. Others
stressed too much importance has
been attached to stock market de-
clines
Trade and industry, the latter group
said, have swept ahead with great
momentum and order blacklogs in
many divisions provide powerful fuel
for further progress.
Index Climbs Further.
Rising for the fifth consecutive
week, the Associated Press index Of
industrial activity touched 1886, the
highest since November, 1929. The
week before it was 1888, a year ago,
1913
While tabulations indicated gains
In the dollar value Of retail sales in
substantially every part of the coun.
try, increases were so narrow that
doubt was expressed in many places
whether the figures reflected actual
gains In unit transactions" the De.
partment of Commerce said in its re.
port on 81 cities
1T was noted that where gains Of
substantial amount were recorded they
were due largely to special promotions
or some local temporary stimulus.
Much OF the same lack of enthusiasm
seemed to pervade wholesale markets"
Steel operations gained to 9l.2 per
cent OF capacity from 81 the preced.
ing week and 69l in the like week Of
last year, the American Iron and Steel
Institute reported
From the steel trade came word
the majority Of consumers are we'll
enough supplied to meet near-term
needs. Nevertheless. in many lines
consumption is heavy and conse-
quently current orders reflect actual
requirements.
Scrap Prices Steadier.
Symptomatlc Of generally robust
condition in the industry, some said,
was the steadying of scrap steel prices
following declines which started
around early April.
In the week ended May 8 electricity
output declined little to 2,176. 383, 900
kllowatt hours, the Edison Electric
Institute reported. This was 1873 per
cent above the corresponding week of
1886, gain which compared with
l3o per cent scored in the previous
week.
Since the week ended March q,
when the gain over 1896 was 1871 per
cent. there has been an almost unin.
terrupted narrowing of the ADVANTAGE.
FACTORS in the decline of the latest
week, power circles said, were favor.
able weather in many regions and the
beginning OF curtailment Of industrial
activity For instance, a number of
textile mills eliminated the third
shift.
Carloadings Decline.
Freight carloadings declined 1.e per
cent IN the week ended May to
767,48l, the Association of American
Railroads reported The total was
l4.7 per cent above the like 1896
week. Pulling down the total in tho
latest week was fairly stable drop
In coal shipments.
Railroad circles. however. tended tn
give more attention to good gains in
April operating revenues. continued
equipment buying and estimates of
tramc gains on the stretch ahead.
Motor production was a little
higher at 1882 units, from lao 8e2
(revlsed the previous week and H.
lo6 in the corresponding week a year
ago, Grams estimated.
The speed Of the output pace WAS
emphasized by the fact it surpassed
the like week OF 1929 when the total
was 14l.5l6. Motor men cited con.
tinued stout consumer demand and
shortage of stocks in dealers hands
owing to the strikes.
Analysts of the industrial scene were
impressed with the gain in April resi-
dental construction to the highest
level of any month since May. 1880,
The total for 81 States east OF tho
Rocky Mountains, reported a: sl0s,-
204,400 by F. w. Dodge Corp. was
20 per cent over March and 81 per
cent better than last year.
Trade Loans Sustained.
One item entered high on the sta.
tistical ledger was the fact commercial
loans have been we'll sustained, con-
trary to expectations in banking circles
Of decline. Important, bankers said,
was the way commercial loans were
flowing into heavy industry.
Commodity prices, vital nerve center
Of the business world. softened for
the sixth consecutive week with pres.
sure on farm and industrial products
still heavy. Livestock was the sole
group to run counter to the general
declining trend.
Shares on the New York Stock Ex-
change beat q retreat, but found some
irregular support at the end Of the
week. Thrusting prices back, Wall
Street circles said, were rumors of .
possible margin requirement lift, some
foreign selling and the continued be-
lief the upward climb of the profit
curve may be less steep from now On.
RICHMOND.-Departme store sales
In the Nth Federal Reserve district
slumped sharply as adverse weather kept
customers away. Washington bank clear
tnss rose to s24.4ss, s52 from S23 1885
last year.