Evening star., 1938-02-27
INDUSTRIAL RATE
ANDRETA|L TRADE
DECLINE IN WEEK
Steel and Motor Outputs
Down Slightly With Freight
Loadings.
WEATHER is ADVERSE
FACTOR IN SOME AREAS
Most Cities Report Recessions
From Previous Week as Well
as From 1887 Levels.
BY THOMAS E. FLANAGAN,


The Nations business barometer fell
little during the past week.
In three major divisions-steel op-
erations, carloadings and motor pro-
duction-there were small declines
The electric power industry made
slight gain, but experts said it was less
than normal.
Retail trade failed to live up to the
promise Of reports made a week ago.
when some leading cities showed
gains.
Although the Commerce Depart
ment noted weather as an extenuating
factor in some sections, it said retail
turnover had slipped back into low
gear"
In its report on business in 81 cities,
the department said:
With only few isolated excep-
tions. every city showed losses in
trade. compared with the like period
last year. Most of these likewise re-
vealed let-down from the previous
week.
New orleans Gains.
The only city in the country where
retail business was good from COM
parative standpoint, was New Orleans.
where precarnival sales put the VOL
ume Is per cent ahead of last year"
The Associated Press index of in
dustrial activity fell to 693, the lowest
since December, 1894. The week pre-
vious it was 10. year ago 1881.
Steel operations receded to 304 per
cent of capacity from 81 the week
before, the American Iron &, Steel In
stitute estimated. A month ago the
rate was 327 a year ago 825
Steel men said the recent removal
Of price uncertainties had cleared the
air. A few companies did the best
business in several weeks, it was
reported.
Railroads Watched.
Steel experts focused attention on
the railroad industry, which has gone
before the Interstate Commerce Com
mission with a plea for a IS per cent
freight rate increase. Some said sew
eral roads had been inquiring for
steel in anticipation of 4 decision
shortly by the commission.
Iron Age said:
In industry generally steel Is being
consumed at rate faster than it is
being produced. One large steel COM
pany, for example, in survey among
Ire 1ornor ciictoroorc fNrIy,I hot
were operating up to go per cent, or
double the steel rate"
Although the approach of spring
usually brings an upturn in building
activity, thus far no speeding up in
structural steel buying has been noted.
Auto Production Says.
The automobile industry, a main
stay of the steel makers. slowed down
production to 56,677 units, compared
with 59,100 the previous week and
lis, $3.50 in the like 1887 week Wards
| Automotive Reports said, however, that
output lis on the verge of q normal
seasonal advance"
One footnote on the automobile
| industry came from General Motors
| Corp, which announced pay cuts for
salaried workers. Chairman Alfred
P. Sloan. jr., said the action was
taken because Of the drastic reduc-
ton" in the corporations business
Another straw in the wind was the
decision of directors Of Chrysler Corp
not to declare dividend The pre-
vious dividend, SO, was paid on De-
cember 49, B. E. Hutchinson, chair
man of the Finance Committee, said
the board had based its decision on
the obscure" near-term business out
look.
Freight Loadings on.
In the week ended February 10
carloadings totaled 535,97O, a decline
Of 13 per cent from the preceding
week and 247 per cent under the like
1887 period. the Association Of Amer
ican Railroads reported
The figures came in the wake of
reports which showed a sharp drop
from 1887 in January net operating
income Of several railroads
For the first time this year electric
power output gained over the previous
week. The total of 2,059, ,165, 900 kilo-
watt hours in the week ended Feb
ruary 10. reported by the Edison Elec-
trio Institute. was 03 of l per cent
above the preceding week. but So per
cent under the like 1887 week.
Construction Down.
While business moved toward spring
influences, statistics on engineering
construction awards assumed signifi-
canoe. In the week ended Tuesday
the total was down to $40, ,161 900 from
$45.001 900 the previous week and
compared with s72,178,000 in the cor
responding 1887 week, Engineering
News Record said 1t was noted pub
lie Projects had gained over the pre-
vious week and private work dropped.
Bank clearings were down 80 per
cent from 1887 in % leading cities in
the week ended February %, Dun &
Bradstreet said.
The Federal Reserve Board reported
that bank loans to business declined
In the week ended February Is, re-
suming a downtrend interrupted by
the limited advance in the previous
week.