Evening star., 1937-10-24
Much of Retail Advance
Laid to Good Weather.
Wholesale Trade Lags.
LOADINGS AND ELECTRIC
OUTPUT MOVE DOWN
Steel Operations Decline Sharply,
While Auto Firms Boost Pro-
duction Moderately.
BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.

down operations last week.
Steel output toppled. Freight car
loadings and electric power produc-
tion declined. Retail trade went
ahead, but owed much of its improve
ment to weather. Motor makers, pre-
pairing for the new season, accelerated
output little.
The stock market fell with a sick
ening thud early in the week. recov-
cred most of the lost ground then lost
its footing. The slower pace of busi-
ness, particularly steel, helped unhinge
share prices.
Selling of securities weakly held on
came with steadfast buying by "bar-
gain-hunters." Profit-selling and de-
layed liquidation of impaired accounts
cut gains at the finish.
The Associated Press index of indus
trial activity declined to 944, lowest
since September. 1886. At this level,
it was down around 13 per cent from
the peak reached last May. The week
previous it was 96.3, the same as in
the like week of last year.
Inventories Reduced.
"The favorable trend which has
characterized general retail trade in
recent weeks continued during the
third week of October" the Depart
ment of Commerce reported in its
survey Of 36 cities. THE reports
again indicated that at present sea-
sonable weather is the major factor
in influencing shopping activities.
Wholesale trade continued quiet
with a general tendency to reduce
inventories, temporarily, at least. Mer-
chants seemed to be showing caution
in regard to future buying"
Steel production fell abruptly to
55.8 per cent of capacity, the lowest
since the week of March %, 1886,
when floods dragged down business
to 537 from go per cent of capacity
the preceding week. The latest weeks
drop, the American Iron e. Steel In
stitute reported. was from 63.6 per
cent. A month ago the rate was
76.1; year ago, TAP
Iron Age said there was mo as
surance that next week will not
bring another drop. as new business
comes to the mills in disappointingly
small volume"
Backlogs Exhausted.
Reasons mentioned for the pre-
cipitous fall were the virtual ex-
haustion of backlogs, tardy demand
from the motor industry and almost
complete drying up of fresh orders
from railroad and construction in
dustrieS.
1t was also said many consumers
already have on shelves enough steel
to meet present needs, an important
reason for hand-to-mo buying.
The automobile industry turned out
last week 91,905 units, compared with
89,635 the week before and 64,310
in the corresponding week year
ago, Wards reported.
Still a source of some worry to
motor men were recently posted
higher retail prices. 1t was feared
by some this would possibly tend to
retard consumption, particularly in
industrial areas where slower pro-
duction has brought slackening of
employment.
For instance, It was said the steel
industry and textile and shoe pro-
ducers-to name a few-lately have
been centers of more unemployment.
While it was believed this influence
would slow purchases Of motors in
these regions, it was also insisted a
counter-weight was the continued
well-sustained purchasing power in
many farm districts.
Freight Loadings Drop.
The railroad industry. large en-
ployer of men, money and materials,
presented a mixed picture last week.
Analysts did not enjoy the spectacle
of the more than seasonal decline in
freight loadings. The total, reported
by the Association of American Rail-
roads for the week ended October 16,
was 809,944 down 6 Of l per cent from
the previous week and per cent
under the like 1886 period.
oIl IllS OIllSl ildliu, d oOuIOC VI SOlllC
cheer was the helping hand given the
railroads by the rate increases on
some staples approved by the Inter-
state Commerce Commission. This
move, it was estimated, would put an
additional $47,5Oo,0OO year into the
Golfers of class systems.
Under the increases, it was said,
Eastern roads would gain more than
Western. Nonetheless, it was be-
lieved possible this step might prove
a forerunner of other rate adjustments
which would bring more widespread
benefits.
Power Declines Studied.
Hopes were expressed the rail-
road industry. currently faced with
higher operating costs. might with
the aid of increased revenues be able
once more to step up vigorously to
the counter for materials-all the way
from paper cups to steel rails.
A significant footnote to the down.
turn in some industries was provided
by the weekly power report of the
Edison Electric Institute. For the
week ended October 16 production was
2,276, 6,123,000 kilowatt hours. little
under the previous week, but per
cent above the like week last year.
What arrested most attention was
the narrowing of the rate of gain over
1886 recorded in the New England.
Middle Atlantic and Central Industrial
regions. Other major regions of the
country either improved the rate of
upturn over last year or lost but
slightly.
The bond market followed a course