Evening star., 1938-10-16
INDUSTRY FORCES
TO OH|GHERLE
TRADE IMPROVES
Steel Output and Freight
Loadings Advance to
New 1888 Peaks.
RETAIL TREND SPOTTY
DUE TO WARM WEATHER
Nearly All Major Cities Show
Gains in Week, but Volumes
Are Below Year Ago.
BY THOMAS E. FLANAGAN.

Evidence of continued improvement
piled up on the Nations trade and in
dustrial ledger this week.
Vitality was most pronounced in the
industrial field where steel production
and carloadings rose to new highs for
the year.
Retail trade improved, but gains
were spotty owing to unusually warm
weather in some regions. Although
nearly all important cities scored gains
over the previous week, most totals
suffered by comparison with last year.
A week ago, various experts said the
fall performance of general business
would depend in large measure on the
automobile industry And this week
for the first time since early May
the industrys output jumped over the
SO, ,000-a-week level. Wards automo-
tive reports said that orders at fac
tories are at excellent levels"
1000 Workers Recalled.
Two divisions of General Motors
Corp called more than 1000 employees
back to work.
The motor manufacturers, looking
for an increased public buying power,
were cheered by reports of increasing
employment and wages in other in
dustries and estimates which pointed
to generally favorable outlook for
crops.
Not the least important thing which
happened to the automotive industry
was the cutting of prices on steel
sheets. Experts said lower prices for
sheet steels should help the automo-
bile producers.
What the lower quotations would
mean to the steel industry and to
wages of steel workers was moot
point however. 1t was recalled that
a few months ago steel executives said
lower steel prices would have to be
accompanied by wage cuts. This week
trade experts were quick to point out
that the wage structure depended
largely on the industry's profits.
Few Make Profit.
At the industry's current rate of
operations, it was said, some COM
panies are not able to turn in a profit.
Some saw significance in the fact
that only a few concerns have been
operating at q rate which is high
enough to insure profit at present
steel prices AS the week finished, the
paramount question was whether re-
cent price cuts would precipitats
new wave of price-cutting.
The need for new orders has been
keenly felt for some time. Railroads
have been skimpy buyers while rela-
lively little demand has come from
the building industry. There was
slight drop in orders for machine
tools in September This was felt to
reflect in some measure caution in
forward commitments from miscel-
laneous manufacturing industries.
Although sagging retail trade caused
by warm weather in various centers
put dent in wholesale business, the
tone generally was good.
Prices Show Improvement.
Another factor which provided some
encouragement was the fact that prices
in numerous industries were showing
an apparent disposition to harden.
Meanwhile, sales Offices of industrial
and office equipment reported trade
was coming up to earlier estimates.
Reports from the chemical trade
and metal markets cited rising activi-
ties. Although textile mills were
slowed down by the Columbus Day
holiday, demand for goods broadened
and came from larger number Of
sources.
Closely studied were reports from
Washington that Government officials
were at work on defense program.
The important part of such plan, it
, was said, was to find methods Of hav-
ing the 3,0C0,O00,O00 utility indus
try put it's shoulder to the wheel and
to stimulate the durable goods indus
try.
The decisions of two major utility
holding company systems to submit
plans for simplification under the
Holding Company Act were hailed as
a token of cooperation between Gov.
ernment and business.
Steel Operations Higher.
The American Iron and Steel 1nsti-
tute reported operations at 51.4 per
cent of capacity, compared with 47.9
the previous week, 45.3 month ago
and 63.6 a year ago.
The Edison Electric Institute esti-
mated output in the week ended Octo-
ber 8 at 2,154, 49, 900 kilowatt hours.
a moderate gain over the preceding
week, but SIS per cent under the like
week last year.
The Association of American Rail-
roads reported carloadings in the week
ended october at 702,964, a slight
gain over the preceding week, but 1875
per cent under a year ago. Wards
reported motor production at 50,4
units, compared with 1855 the week
| before and 89,635 in the correspond
ing week of 1887.
The Commerce Department. in It's
weekly review of business in SO cltles'
said Employment, construction, Wnoie-
sale trade and basic industrial lines
displayed definite signs of progress.
Some manufacturing lines. how
ever, were weak, and retail trace ao-
versely affected in many sections by
unseasonably warm weather. failed 10
respond in any marked degree 10 tne
general improvement
Cities which reported trade gains
over the like week last year included
Atlanta. Savannah, Boston, winning
ton and Norfolk.
METAL MARKET.
NEW YORK. Oct. 15 R-CopneI'