Evening star., 1937-12-12
Faster Flow of Christmas
Trade Brings Gains
Over Year Ago.
ELECTRIC POWER RATE
AND LOADINGS CLIMB
Steel Production Again Recedes,
but Drop Is Small-Auto
Output Smaller.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Associated Press FINANCIAL Writer.
A faster flow Of Christmas mer-
chandise across the Nations retail
counters contrasted with continued
industrial irregularity last week.
For the fifteenth consecutive week
steel production fell, but the down
swing was modest. Electric power
production gained Railroad loadings
Of freight increased. Motor assembly
lines moved trifle slower.
Industrial activity, measured by the
Associated Press seasonally adjusted
index, fell to TIA per cent of the
l929-30 average. This was the elev-
enth consecutive weekly decline A
week ago it was 791, a year ago 99.6.
Christmas shopping gathered mo-
mentum during the week with most
cities reporting gains over the pre-
vious week, and a large number over
the same period year ago." the De-
partment of Commerce reported in
its survey of So key cities.
East Still Behind.
Gas was the case last week, the
pickup was largely noted in the South
and Midwest with most of the large
Eastern cities failing to develop the
volume Of sales anticipated. While
purchases were varied, holiday gifts
were for the most part useful COM
modities rather than the luxury lines.
The wholesale markets were slow and
somewhat spotty."
Steel operations were throttled down
to 27.5 per cent of capacity, lowest
since the week of November IL, 1894.
The previous week the American Iron
and Steel Institute estimated produc-
tion at 296. A month ago it was Al,
a year ago 1856.
Steel trade circles said there were
indications the downturn of opera
tions was approaching bottom.
Heavier inquiries for and purchases
of scrap steel. they said, hinted steel
consumers may shortly add to in
ventories Of raw material. Rail-
road orders, they stressed, were con-
spicuous in an otherwise quiet mar
ket.
Some quarters derived cheer from
the fact one leading Chicago producer
received the largest orders in eight
weeks. Some believed there might
be a moderate rise in production
within the next several weeks.
Power Output Gains.
Production Of electricity increased
during the week ended December 4
to 2,152,643,0OO kilowatt hours from
2,065, ,378.O0O the preceding week, the
Edison Electric Institute reported
The total was Al per cent under the
like 1886 week. allowing for the COM
parsons which were thrown out Of
line by interruptions owing to the
Thanksgiving Day holiday.
Freight carloadings in the week
ended December 4, totaled 623,337,
the Association of American Rail-
roads reported. This was an in
crease of 11.6 per cent over the pre-
ceding week, a better than seasonal
showing. The width of the upturn
was attributal to the holiday letdown
in trade and industry during the pre-
NAobo NCSh WAiiCll lllSluuCu
giving. The total, however, was 1874
per cent under the like week year
ago.
Production of automobiles totaled
85,763 units, compared with 86,l73 in
the previous week and 1l9,660 in the
corresponding period last year. Wards
automotive reports indicated. The
downturn in motor output, it was
pointed out, found decline in Gen.
eral Motors production more than off,
setting an upturn in assemblies by the
Ford Motor Co.
Security Markets Mixed.
Share prices on the New York Stock
Exchange rallied unevenly, humping
into prof1t-selling at times. In de-
mand were steels, rails, airplane and
manufacturing issues. Late in the
week, President Roosevelt's declara-
ton that the Interstate Commerce
Commission should seek to foster SOL
vency of the railroads so as to keep
them under private ownership was
warmly greeted in financial circles.
Later the edge was taken off this en-
thusiasm when the commission ruled
out the carriers request for higher
freight rates Immediately.
In the bond market corporate loans
were mixed. The heavy oversubscrip-
tion Of the United States Treasury
bonds was followed by fresh demand
for Government obligations from banks
and insurance companies, experts said.
Higher prices were posted for most
important raw materials. Wheat was
bought at Chicago on reports of DAM
age to the Argentine crop. European
buying stimulated corn. Cotton pushed
ahead Notwithstanding the Depart
ment Of Agriculture's estimate Of
rocnrd cror,