Evening star., 1937-10-10
Loadings, Motor and Power
Outputs Up, but Steel
Operations Sag.
RETAIL AND WHOLESALE
TRENDS DISAPPOINTING
Declines in Securities and Staples
Believed Engendering Caution
in Some Trade Circles.
BY THOMAS +. FLANAGAN,
Associated Press Financial Editor.

The Nations business scales tipped
back and forth unevenly last week.
On the favorable side of the balance
were gains in carloadings, motor and
electricity outputs. on the unfavorable
sharp drop in steel production and
some disappointing returns from re-
tail and wholesale trade.
An important weight-and one hard
TO measure accurately. analysts said,
was the drop in prices on the New
York Stock Exchange.
Wall street had a number OF ex-
plantations. 1t was argued traders
had another attack of nerves" Un-
derlying this diagnosis were various
shocks to sentiment.
To begin with, the Nations num-
Der one news-maker. President Roose-
welt, scattered across thousand front
pages his genuine fears arising from
fighting and diplomatic squabbles on
foreign shores.
Cotton Leads Slump.
Next. the Government branded
Japan the aggressor in the Chinese
fight, step which some said had
unpredictable potentialities.
Falling commodity prices did the
rest. particularly cotton. Arresting
most attention was the Governments
crop estimate indicating production
Of about 100000 bales more than
most private guesses and the second
largest in history.
While some believed declining stock
prices was making business men
afraid to make new commitments,
there was another side to the story.
1t was said lower share levels merely
measured uneasiness in the big money
center and that business in other
parts of the Nation remained stable
and gave promise Of continued gains
owing to increased purchasing power
in farm and industrial regions.
The Associated Press index Of in
dustrial activity fell to 992 from 102
the previous week and compared with
962 in the like week last year.
The general trend of retail trade
during the first week of October did
not vary to any appreciable extent
iiOAii tiiC SOul cC lOllONCQ GeD-
tember." the Department of Com
merce said in its weekly survey of 36
cities.
Gain Over 1886 Small.
"The tendency was toward better re-
suits than were scored at the same
time last year. but the margin of in
crease was narrow
THE whole situation might be
summed up briefly with the statement
that progress continued, although at
a slower tempo than had been counted
on. 1t was to be noted that wherever
weather conditions favored Fall ship
ping there was a fairly brisk volume
OF trade. Wholesale apparel markets
were rather spotty, but in other lines
shipments continued high"
Steel operations slid to 66.1 per cent
of capacity, the American Iron and
Steel Institute estimated. A week ago
the rate was 74.4, year ago 75.3.
Steel trade circles said consumers
were buying on hand-to-mouth basis.
Mills having scraped the bottom of
their once large backlogs, have had to
make quick readjustment Of output in
line with incoming daily business.
Although few automobile COM
panies laid some good orders on the
line, the industry's buying has yet to
push forward with robust demand.
The next few weeks should see It de-
velop. experts said.
Motor production jumped to II .958
units from 44,33O the previous week
and compared with 41,36o in the like
1885 week, Wards reported. 1t was
noted most leading manufacturers
have been stepping up output speed
on 1888 models. Only one major
maker has yet completed the change
| over.
| LOadings Best Since 1890.
Freight carloadings in the week
ended October 2. rose to the highest
point since 1880. The total was
847,245. an upturn of 8 of / per cent
from the preceding week and 4 rise
OF 3.4 per cent over the corresponding
week last year. The gain, traffic an
alysts said. was less than seasonal.
OF great import to the railroads
was the wage increase Of 51s cents
an hour granted to the operating
brotherhoods. This, rail men esti-
mated, would add about $4,000, 900
year to the operating expenses of
the Nations leading systems.
This aspect of the boost spot
lighted the possibility some roads may
prove less aggressive purchasers of
supplies unless revenues swell enough
to produce good net profits.
Some hint of the outlook for freight
income was seen, however, in pri-
vate crop estimates which showed
larger yield Of the seven principal
grains than in any previous season
since 1882.
In the week ended October 2 the
manufacture of electricity gained mod
erately to 2.275, ,724,O00 kilowatt hours.
the Edison Electric Institute reported.
This represented an upturn OF SIS
per cent over the like week of 1886.
Widening in the rate Of increase over
q year ago impressed students of
the power industry. In the week
ended September rs, it was noted.
the upswing over 1886 was only "A
per cent.
In the money market, high spot
was continuance of demand for loans
by farmers and business concerns.
Prices for most bonds were lower.
Under particular pressure were me-
dium and low-priced railroad obli-
cations. United States Government
loans were narrow and quiet; they
gave no perceptible reaction to the