Evening star., 1938-10-30
TRADE CONTINUES
T0EDCEFORWARD
ON BROAD FRONT
Cooler Weather Stimulates
Store SaIes-UtiIity
Spending Planned.
SHORTAGES ARE FACED
BY SOME WHOLESALERS
Steel Industry Expects Increased
Rail Equipment Purchases.
Motor Output Rises.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer,

Business continued on the march to
higher ground this week.
Fourteen large utilities announced
a substantial spending program for
the next two years. Retail trade.
stimulated by cooler weather, caught
up with the industrial parade. The
railroad industry stepped up to the
equipment buying counter.
The utility companies, joining with
the Government in it's national de-
fense program, said they would spend
about billion dollars a year to in
crease power production facilities.
1t was announced that definite
commitments" had been made for
new equipment capable of turning out
100000 kilowatts. Some utility ex.
perts present at meeting with Gov
eminent officials said, however, that
this addition to plant and equipment
would represent only about one-third
of the rate of increase which pre-
vailed annually during the expansion
Of the 1920's. Some of the utility
representatives who attended the con-
ference also expressed skepticism pri-
vately that the program would pro-
duce the far-reaching improvement
hoped for in some quarters. But 9TH
er utility men who Joined in the
negotiations contended the program
would prove an important aid to
business.
Lower Temperatures Help.
n
weather in many sectors had put
dent in retail sales. This week. lower
temperatures quickened tournover and
put new life into wholesale markets.
So brisk was the demand for goods
at wholesale in some centers that 1t
caught some dealers without sufficient
stocks.
For many months the steel industry
has complained of the dearth of busi-
ness from railroads. Numerous rail
systems had stayed out of the market
on the grounds of shrinking revenues
and mounting expenses. During th,
week, evidence came to hand tha2
some roads had reached a point wher9
they could no longer defer new equip
ment purchases While buying wal
not heavy, it suggested that ono
the problem of wages was settle1
more new business might be forth
coming.
Business experts said a signiflca1
cue to future trends was the continuei
increase in employment and pay rolls.
The Commerce Department reported
rise in national income in September,
the fourth consecutive monthly up.
swing
Expanding Income Studied.
Expanding income was closely
studied in relation to the motor in.
dustry. the division from which much
stimulus for general business has been
expected. With motor output this
week climbing to new peak for the
year and with stocks of automobiles
at a relatively low point, the COM
ment of Alfred P. Sloan, jr., chairman
of General Motors Corp, came in for
close scrutiny.
Reporting a sharp drop in the COM
pany's earnings for the third quarter,
he said:
Such information as is available
makes the current trend a matter Of
opinion rather than of fact, but for
what it might be worth it can be
stated that the corporations new
models, So far as they have been shown,
have been we'll received.
Reflections from all parts Of the
United States indicate consumer in
terest considerably in excess of that
existing year ago. This is supported
by a material increase in advance
orders"
Retail Sales Improve.
In its weekly survey of business in
81 cities, the Commerce Department
said:
with the advent of cooler weather,
retail trade throughout the country
swung into line with the general for
ward movement of business Indus
trial activity increased more than sea-
sonally.
In retail trade, practically all cities
registered gains over the recent un-
seasonably warm weeks. Louisville,
Denver and Washington reported busi-
ness about even with last year and
the following cities registered in
creases: Boston. Providence, Seattle,
Los Angeles, Salt Lake City, Charles
ton, S. c., and Atlanta"