Evening star., 1937-08-01
SUMMER VITALITY
At STEEL PLANTS
TOPS TRADE NEWS
Other Industries and Store
Sales Hold Advances
Over Year Ago.
BOOST IN AUTO PRICES
TERMED SIGNIFICANT
Regarded as Indication Of Future
Price Trends as Result of
Mounting Costs.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer

Associated Press Financial Writer.
Unusual Summer vitality Of the steel
industry was the high spot Of entries
on the Nations trade and industrial
ledger last week.
Statistics from other divisions Of
industry and the retail front showed
gains over 1885 still stubbornly held,
despite some moderate recesslons from
the preceding week owing to seasonal
influences.
For many months business men have
said retail prices provide an important
hint of trends. Rising operating costs
have already brought higher retail
prices for some goods.
Last weeks mark-up Of prices ir
the low-bracket automobile field. ana.
lysts said. may prove an important
chapter in the business story which
will unfold the next few months.
Buying Power Rises.
Those who argued this development
was forerunner Of price advances
in other products called attention to
bright factor in the business eoua-
ton. Increased purchasing power
through improved wages and farm in
come will help consumers absorb high
er prices without serious slowing Of
the purchasing pace, they said.
Retail trade throughout the coun-
try continued to show fairly substan-
tial margins over the same period last
year. said the Department Of Com
merce in its survey of 81 cities.
In addition to the actual gains In
the dollar value of sales, merchants
generally were inclined to view the
future with added optimism. Much
the same situation pervades whole.
sale markets
The Associated Press index Of In.
dustrial activity dipped slightly to lo4
last week. In the preceding week 1t
was 104,7 and in the corresponding
week last year e53.
Steel Rate Advances.
Steel operations accelerated to 843
per cent of capacity from s2.5 the
previous week and IS in the like 1886
week. the American Iron and Steel
uEtlCute estimated.
Steel trade circles expressed con.
vlctions the bottom Of the Midsummer
recession has been touched. Lending
strength to the industry they stressed,
was brisk activity in farm equipment
industries.
Although 1t was said the motor in.
dustry has not yet stepped aggressively
up to the steel counter for 1888 model
requirements, a good flow of business
from this source is expected shortly.
Important foot-note on steel business
in the second quarter was given by re-
ports Of leading companies. United
States Steel Corp, free from strikes
during this period, reported highest
quarterly net income since 1929. Beth
lehem, though confronted with strikes
at its Cambria plant, had the best sec.
ond quarter net since 1880. It de-
clared a common dividend Of sl50
against the previous payment of 81.
Republic Steel's second-quarter net
provided a measure of the extent to
which strikes had impaired operations.
Earnings IN the June qua rter fell
more than s5000,00O to &4s7.251.
youngstown Sheet & Tube, another
unit affected by strikes, had its earn.
ings cut in half.
Automobile production slid to 1854
units from 88,055 the week previous
and compared with 97,755 in the like
week year ago. Wards estimate indi-
Gated. Production in the near term is
expected to hold about even. although
many plants are approaching the date
when they will suspend operations in
preparation for the change over to new
models. it was said.
Electric power output in the week
ended July "a totaled 2.258, 776 900
kilowatt hours, a modest recession
duction mounted to height never
| before reached.
The total was 76 per cent ahead Of
the like week of 1896. which compared
with a gain of 1872 per cent over last
| year, scored in the week ended July II.
Power circles gave close attention
to the statement of the Federal Power
Commission that many utilities are
now operating without sufficient
reserve capacity and with no inme-
date provision to meet rapidly ex-
panding needs.
Loadings Gain Slight.
Freight carloadings In the week end
ed July "a totaled 770980 The total
represented a negligible gain over the
preceding week, and rise of SIS per
cent over the like week last year.
Traffic experts scanning the horizon
said the outlook was good for rise in
August loadings owing to expected up
turn in coal shipments.
Shares on the New York Stock Ex.
change moved irregularly higher. Re-
covery in the latter part Of the week
was pronounced in steels and motors,
two groups which had suffered from
profit taking earlier.
Modest improvement in United
States Government loans and softeninR
Of corporate obligations were outstand.
ing phases Of the bond market. Me-
dium and low priced rail liens came
under pressure.
Although the average Of leading
commodity prices shifted little lower,
wide swings occurred Live stock
prices jumped to the highest level in
10 years, while grains fell to new low
for the year.
District Reports Given.
e,Is RIcHMoND1Depa1tmsnt aSdcIsT stores in the
Midsummer drop in sales. Wholesals
lines felt the impetus OF Fall buying A
leading department store in Richmond
reported sales 10 to 90 per cent under
the like week last year. but per cent
ahead of the preceding week Bonus
money was at work year ago. 1t was
stressed.
PH1LADELPH1A.-Reta trade turned
I'D slightly with GOOD demand for clothing.
furniture sales were disappointing. Re.
sorts did . booming business.