Evening star., 1938-03-06
INDUSTRY SLOWS,
| BUSINESS TAKES
| UNEVEN COURSE
Auto, Power, Steel Rates
Show Declines With
| Freight Loadings.
COTTON MILL ACTIVITY
| INCREASES MODERATELY
Only 4 Out Of 26 Leading Cities
Report Any Improvement in
Retail Volumes.
BY THOMAS E. FLANAGAN,

Associated Press Financial Writer
The beat Of the Nations business
pulse slowed little the last week.
Modest declines were registered in
steel operations, carloadings, electric
power output and motor production.
Retail and wholesale trade was spotty.
The Associated Press index of indus
trial activity receded to 68.2, the
lowest since December, 1884. A week
ago it was 6SS, year ago 1851.
Observers were heartened, however,
by the moderate pickup in cotton
manufacturing. They noted that for
the last five weeks this index of con.
sumer demand has been pushing ir-
regularly higher.
"Of the rs key cities throughout the
country reporting current business
conditions. only four gave evidence
OF any improvement in retail trade
compared with the same period last
year. the Commerce Department re-
ported. The four were Dallas. San
FRANCISCO, Norfolk and New Orleans.
Steel Output Curbed.
The brakes were on steel production.
Operations were down to 293 per cent
OF capacity from 304 the week before
and compared with 856 In the like |!
1887 period, the American Iron and !,
Steel Institute reported. The weeks /
operating pace was slowest since the
week OF January 10, when the industryl
worked at 27.8 per cent of capacity.
Steel experts took some cheer from
reports that demand had quickenedI
In some centers. The consensus, nev-
ertheless, was that the improvement
was not stout enough to indicate anyI
important upsWing in the nationall
operating rate in the near future
United States Steel Corp. opened four
additional furnaces of subsidiary.
1t was noted the railroad industry,
which has kept orders at low ebb for
some months, was buying little more
aggressively. But steel circles said no,
large buying from this source could be
expected until the Interstate Com
merce Commission has ruled on a IS
per cent freight rate increase request.
Steel men said they were keeping
sharp watch on the effort of the mo-
tor industry to clear the path for a
spring upturn in new cars by reducing
stocks of used cars. The motor in
dustry Is steel's number one customer.
Auto Production Down.
The current cautious mood of auto
mobile manufacturers was emphasized
by the moderate downturn in produc-
ton to 54,445 units. This compared
with 56,677 the week before and 127.-
134 in the like 1887 week, Wards auto
motive reports said.
Reports from motor centers indi-
Gated the likelihood of a gain in pro-
duction this month but pointed out
that higher March output was a sea-
sonal trend.
Those scanning the horizon for in
dications of consumer demand for
automobiles cited reports to the De-
partment of Commerce. For example,
Cleveland reported automobile regis
trations for the week ended February
rs totaled 4,713, decline Of 1000 un-
der the like week year ago. Detroit
reported new passenger car sales in
Wayne County, Mich, were down to
$50 from 655 the previous week, and
compared with 2,620 q year ago.
In the week ended February 26.
freight carloadings declined As per
cent to 51l,930, the Association of
American Railroads reported. The
total was 26l per cent under the like
week last year.
Railroad traffic experts said the
downturn was less than seasonal for
the week-which included the WASH
ington birthday holiday. Lower Ship
ments OF miscellaneous freight. coal
and grains bore witness, however,
to the slackenlng activity in both
trade and industry.
Power Total Smaller.
Production of electric power In the
week ended February 26 slid to a
new 1888 low of 2,031, ,4l2,O0 kilowatt
hours, the Edison Electric Institute
reported. This was a drop of IA per
cent from the preceding week and 8
per cent under the 1887 week.
In addition to the gain in cotton
goods output, higher rayon ship
ments and shoe production were cited
by experts as straws in the wind indi-
eating seasonal lift in the con.
sumers' goods sector.
On the other side Of the scale and
"outweighing" these consumer gains,
some said, there have been declines in
L..
industries. These have been most pro-
nounced in rail equipment. machinery
and machine tools.
Usually regarded as an index Of the
Nations business hopes and fears are
telephone installations. American TEL
ephone g. Telegraph Co. reported that
during February telephones increased
10000. The rise compared with a
gain of $4,000 in the like month of
goo7