Evening star., 1937-07-25
Steel Operations at Hiqh
Levels, Although Down
Slightly in Week.
POWER OUTPUT SCARS
TO RECORD HEIGHTS
Auto Production Reduced Sharply
in Preparation for New Models.
Freight Loadings Gain.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

.
Trade and industry displayed under.
lying vitality last week despite synp-
toms of Summer lethargy in some
divisions
Although down trife, steel opera
tons Whirled along at a high rate
| Electric power scared TO new record
| heights. The motor industry cut pro-
duction sharply in preparation for
output of new models. Freight car
loadings gained. Retail sales extended
| recent upturns.
The Associated Press index Of in
dustrial activity receded to 1047 from
LOS the week previous. In the like
week year ago it stood at 942
Reports to the Department of Com.
merce from 81 cities for the week
ended Wednesday gave further evi-
dence of a definite turn in the tide Of
retail activities. with sales maintaining
| a consistent upward trend.
While the gains generally we're not
large in comparison with the like
period last year, they we're universally
consistent and bore evidence of a
reversal Of conditions that prevailed
in the early Summer weeks.
Fall Buying Heavy.
wholesale markets largely reflected
retail conditions with considerable
Fall buying beginning to make its
appearance In substantial volume"
Operations in the steel industry de.
clined to 82,5 per cent of capacity
from 827 the preceding week and
compared with TOO tn the like 1885
week. the American Iron & Steel In.
stitute estimated
Reaffirmation Of prices on almost
all steel products for the fourth quar-
ter was in line with trade expectations.
The industry continued to draw
strength from substantial backlogs Of
| orders. Slackening Of new business
was seen as a purely seasonal phe-
| nomenon, and some observers said the
new order curve had proba bly, reached
its low for the Summer
Extension of the rise In scrap steel
| prices was said TO reflect both a hope.
full outlook for the industry and an
| apparent scarcity Of old material.
Auto Rate Slumps.
Motor production fell abruptly to
s8.055 units last week lowest since
February when the industry was afiiict-
| ed with strikes. In the preceding week
the total was 1880 and in the like
week last year, e9,329.
The sharp cut in operations was
| occasioned mainly by shutdowns Of one
| producer. Trade analysts said they
believed operations would likely hold
| around the current level for the near.
term.
Trade circles noted premilinary
| adjusted index Of the value of retail
sales of new passenger cars had Drop
! ped more than seasonally from May
to June. according to the Department
| of Commerce
In the week ended July II freight
carloadines totaled 770075, an increa Sc
of 1919 per cent over the preceding
| week and SO per cent ahead of the
corresponding week last year
The upturn. analysts said was a
little less than seasonal. With the
exception of coal, grain and grain
products shipments, all groups of traffic
| showed an upturn over year ago.
Some commentators said grain load
l.ings were down because farmers were
holding crops on the farm owing to
surplus production.
Power Gain Is Sharp.
Production of electricity in the week
ended July II rose to a height never
before touched-2, ,298 ,o05 900 kilovatt
hours. the Edison Electric Institute
reported. The total was 1872 per cent
above the like 1886 week and con-
trasted with a gain Of 70 per cent
scored over last year in the week
ended July TO- the period including In
dependence day.
The extraordinary vitality of the
industry at this season, utility men
said. bore witness to both the well-
sustained industrial demand for power
and widening industrial uses Of
! electricity.
The financial scene provided busi-
ness observers with evidence of nu-
| merous good profits in the second
| quarter. Although earnings we're
generally ahead of the like period
last year, it was noted the rate Of
profit gain had slowed down from the
first quarter in some instances. This
phenomenon experts attributed large
ly to rising operating costs.
The stock market. traditional ba-
rometer of hopes and fears in business
circles, moved irregularly forward.
Wall Street experts noted demand
had tended to shift from some leaders
to less prominent shares.
In the bond market rise of United
States Government obligations af-
forded bright spot Corporate loans
advanced. Foreigns were generally
higher.
Staple Average Down.
Abrupt declines in farm staples
pulled the average Of commodity
prices lower despite a rise IN hog
quotations to 10-year peak and fur.
ther sharp gains in scrap steel.
As trade and industrial analysts
wound UP the week, they said one Of
the most important factors remained
the outlook for robust farm purchas-
ing power. On this score they noted
cash income of farmers this year was
estimated at new top since 1929.
ACKNOWLEDGEMENTS store sale,
and wholesale trade In the NTH Federal
Reserve district showed q substantial in
crease during the week over the sans
period last year. Richmond bank debts
were slightly ahead of the previous week
and the same week q year ago.
HILADELPHIA-Wth passing Of the
heat wave and advent Of q normal work
week, retail sales showed conslderahIe