Evening star., 1938-01-23
OBSERVERS HAIL
FURTHER UPT(|RN
IN STEEL ACTIVITY
Loadings Rise, Auto Rate
Steady, While Power
Output Drops.
RETAIL TRADE SHOWS
SIGNS OF Improvement
Most Leading Cities Report Gains.
Cotton Production and Home
Building Decline.
BY THOMAS A. FLANAGAN.
Associated Press Financial Writer

Associated Press Financial Writer
Extension Of the upswing In steel
operations cheered observers of the
national business scene last week.
For the third consecutive week out
put quickened in the steel industry.
Freight carloadings increased. Motor
output held steady. Electricity pro-
duction was lower.
The downturn in power. output,
combined with fall in cotton pro-
duction and residential building, de-
pressed the Associated Press index Of
industrial activity. It declined to,
1874 from 74.4 (revised) a week agol
and compared with 1913 in the like
week of 1897.
Some Reports Unfavorable.
In its weekly survey of business, the
Commerce Department found "evi-
dences Of improvement" in the coun-
try's retail trade. Gains were mot
very pronounced" the review said,
stressing "unfavorable tabulations" in
number Of important centers.
In view of the generally down.
ward trend of retail sales in recent
weeks, there is food for comfort in
the fact that the majority of report
ing cities this week were able to say
trade was on the mend" the depart
ment reported.
Steel operations rose to 298 per
cent Of capacity, the American Iron
and Steel Institute estimated This
compared with 278 in the previous
week and 806 in the like 1887 week.
Steel experts said consumers were
still! buying on hand-to-mouth basis.
Much interest centered on the report
OF Iron Age that steel companies have
been showing no disposition to tap
fresh demand by marking down prices.
Rail Orders Revive.
Although demand for steel was SPAS
modic. some encouragement was de-
rived from a quickening OF activity in
the railroad equipment field Motor
makers, 1t was said. have been holding
on until they can get sharper outlook
at spring sales.
In the week just closed motor pro-
ducers turned out 65,418 units, COM
pared with 65,735 the preceding week
and 73,509 in the like week last year,
Wards Automotive Reports said.
1t added: "Curtailments would be
likely In the near future in plants of
several producers, the proba bility being
that weekly February assembly totals
will seek somewhat lower level than
those of January"
Alvan Macauley. president Of the
Automobile Manufacturers Associa-
ton. said he had reported to President
Roosevelt the industry was hopeful"
a seasonal increase in sales will bring
an improvement in business
As spokesman for automobile men
who conferred with the President, he
said they agreed with the Chief Ex-
ecutive's view h-pressure salesman
ship on an installment basis was bad
business all around"
On the other hand, properly used.
installment selling has aided the IN
dustry and consumers and employ
ment, he added.
Power Output Down.
Electric power output in the week
ended January IS totaled 2115,134.00O
kilowatt hours. the Edison Electric In
stitute reported. This was a modest
decline from the week before and 66
per cent under the like week last year.
Freight car loadings expanded ST.
per cent to 580,600 in the week ended
January IS, the Association of Ameri-
can Railroads reported. The gain bore
witness to an upswing in coal ship
ments and somewhat heavier move
ment of miscellaneous freight. The
total was 1855 per cent under the like
week last year.
On the New York Stock Exchange
share prices gave up part of early
January gains. Wall Street men said
traders were awaiting a clearer view
of the business outlook.
Motor. steel. retail and manufac.
turing issues slid. although occasional
rallies interrupted the downward
trend.
Erie Case Depressing.
The bond market was under the
shadow of the Erie Railroads resort
to the courts for relief from its debt
burden after recent interest defaults.
The plight of this system served to
spotlight difficulties Of other carriers
confronted with falling income and
rising operating costs Bonds with
high credit ratings, including U. S.
Government loans, were in demand
most of the week.
Lower quotation for copper, cotton
and other commodities indicated con-
sumers were buying raw materials
less aggressively than in recent weeks.