Evening star., 1938-02-06
INDUSTRY SHOWS
FURTHER RETREAT
AS ORDERS SHRINK
CarIoading, Steel, Motor
and Power Barometers
Lower During Week.
USED CAR SALES LEND
SOME ENCOURAGEMENT
Wholesale and Retail Trade Vol.
umes Behind Same Period
Year Ago.
BY THOMAS E. FLANAGAN,

Associated Press Financial Writer.
Trade and industry throughout the
Nation retreated further in the week
| which ended yesterday.
Industry felt the pinch of shrink
ing orders in number Of sectors
Lower figures were posted for the "big
four'-carloadings and steel, motor
and power production.
Every major division except cotton
manufacturing fell back The Asso-
clated Press index Of industrial activ-
ity dropped to 702, new low for the
current downturn. A week ago it
was 1872, a year ago $50.
The arrival Of February brought
no new note of optimism from the
Nations wholesale and retail centers,"
the Commerce Department reported
In its weekly survey of 35 cities.
With few exceptions, retail trade
fell below the volume for the same
period last year and this picture was
largely duplicated in wholesale circles.
Building Pick-Up Indicated.
Some of the cities indicated the
possibility of an early resumption of
building activities on a rather extern
sive scale and there we're instances
here and there of the return of en-
ployes who had been laid off earlier
These bright spots. however. were
pertty much offset by reports of in
creased unemployment and additions
to relief rolls"
The steel industry slowed down to
30.5 per cent of capacity. the Amer
ican Iron and Steel Institute reported.
The previous week it ran at 1927 and
year ago 1876.
Miscellaneous buyers held back. The
two major consumers, railroads and
motor makers, were reported by steel
men to be taking little steel.
Reports from large steel companies
to the American Iron e. Steel In.
stitute showed the industry entered
1888 with inventories of semi-finished
and finished steel about rs per cent
under last year.
On the other hand. inventories of
some raw materials for steel making
were reported above last years levels.
largely because heavy tonnages were
put In stock before steel operations
dropped sharply in the closing months.
The automobile industry, chief con-
sumner Of several raw materials and
a major employer of men and money.
throttled down production. Wards
Automotive reports estimated output
at SLAB units, compared with So.
365 the week before and $4,000 in the
like 1887 period.
Used Car Sales Improve.
The survey cited "a sign of en-
couragement in the sale of used cars
during the past week, tending to re-
duce current stocks" A sizeable cut
in inventories of used cars would
open the way for freer sales of new
motors, experts said
| In the week ended January 29, rail-
way shipments of freight dropped 3
per cent to 553,176 cars, the Associa-
ton of American Railroads reported.
This was 1873 per cent under the like
1887 week. The doWnswing bore wit
ness to smaller loadings of industrial
freight and grain. Coal loadings i'm
proved slightly.
Production of electricity in the week
ended January 20 was 2,oe8 1868 900
kilowatt hours. decline of one-half of
! per cent from the previous week. the
Edison Electric Institute reported The
downturn was more than normal at
this time of year, experts said.
Power Demand Falls OF.
The power figure was So per cent
lower than the like week last year. In
the New England and central indus
trial regions use Of electricity was
under year ago.
Usually telephone installations are
regarded in business circles as q ba-
rometer of the condition of trade
and industry. American Telephone
& Telegraph Co. reported a gain of
! 3l,500 telephones in service for the
Bell System in January It compared
with an increase of $4,000 in January,
1887.
Leading shares of the New York
Stock Exchange were caught in
backwash of selling at midweek. but
pushed up later. Bonds followed
roughly the same course.
Wall Street circles expressed dis
appointment over fourth-quarter re-
ports of various leading Industrial
companies, some of which showed
profits cut by as much as so per cent
under the previous year. Net operat-
ing income of the Nations major rail-
!