Evening star., 1937-01-24
Most Industrial Divisions
Move Vigorously Ahead
During Week.
AUTO STRIKE REMAINS
HURDLE FOR BUSINESS
Labor Strife Puts Dent in Motor
Output and Chokes Off Some
Demand for Steel.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Associated Press Financial Writer.
Most divisions of industry steamed
vigorously ahead last week, but retail
trade was buffeted by unfavorable
weather in many sections of the
country.
Rising floods along the Ohio, Wa
bash, Monongahela and Mississippi
Rivers loomed on the business hori.
zon as the week drew to a close.
Gripping business and industry in
adjacent States and carrying threats
Of further trouble ahead.
Continuance of the General Motors
Corp. strike put dent in automobile
output, choked off some business in
the steel and other industries and
remained hurdle to be met by ousi-
ness.
In view Of these various drags on
business momentum, residence shown
by major industrial indicators
notably steel-Was remarkable, ana.
lysts said.
The Associated Press index of in
dustrial activity rose to 1913. A
week ago it was 1902, year ago BAL.
Weather conditions which inter.
fered with shopping caused a drop in
retail trade from the previous week
In most parts of the country, but
results were generally ahead of the
comparable period last year." said the
Department of Commerce in its sur
vey of 81 cities.
Store Gains Held.
From the standpoint of general
trade, strikes in progress during the
week did not seriously interfere with
activities. Detroit, for example, re-
ported retail trade advanced per
cent over the previous week and 10
per cent over year ago." the
review said.
Piling up of new business and al
ready heavy backlogs OF orders pro-
vided the groundwork for a rise in
steel operations to 80.6 per cent Of
capacity last week. This estimate of
the American Iron g. Steel Institute
compared with 1873 per cent in the
previous week and 49.9 per cent in the
lIhc NCCh d year d5O. ~
a climb to a recovery peak.
Underscored by steel experts was
the appearance in the market of steel
consumers which have long tarried
on the sidelines. Oil companies and
public utilities were prominent among
those stepping up to the counter.
Power Output Climbs.
Electric power was another to turn
in vital performance, notwithstand-
ing any slackening of demand for
power which may have been at.
tributable to the motor strike.
1t rose to the third highest weekly
total in the history of the industry.
For the week ended January Is. pro-
duction increased somewhat over the
preceding week to 2,264125,0 900 klo-
watt hours, a rise Of IA per cent
over the like week last year.
Heavier call for power owing to
weather conditions in some parts Of
the country played an important part,
observers said.
Carloadings expanded OF per cent
over the preceding week, an upturn
analysts said. For the week ended
January Is the Association of Amer
lean railroads reported movement of
700, 0,238 cars. 14.5 per cent more than
the like week last year.
There were increases in shipments
of all classes of freight but miscellane-
Gus and coal. Sizable gains we're
scored by forest products and less
than-carlot goods.
Auto Production Says.
Automobile output slundped to ST.
395 units last week. Grams reported.
The week before s2,28O units were
produced and 1924 in the like week
of 1886.
Business observers strived to gauge
possible effects of floods in the Ohio
River basin.
Last year, it was recalled, business
struck snag in those sectors follow
ing floods only to surge ahead later
when damned up needs demanded to
be filed. On the long term, the major
thing suffered was The destruction OF
plant and equipment.
While it caused confidence to falter
momentarily the upward swing OF re-
covery sentiment in the Spring of 1886
was more than strong enough to off,
set i'll effects. Sentiment remains
robust, most think.
Business swung rs sights to WASH
ington last week. Fo:al point Of in
terest was President Roosevelt who
launched his second administration.
His inaugural address was termed a
general restatement of his political
philosophy. Some business men said
the motor strike, Government SPEND
ing, relief policies and monetary prob
lens were among questions they would
like to have had the President answer,
but he did not see fit to discuss them.
Staple Prices Matched.
Prices of raw staples and finished
products captured much attention.
Leading tire makers hoisted quota
tions some per cent, an unusual
thing at this time of seasonally low
demand. The move was made in re-
sponse to recent rises in raw rubber.