Evening star., 1938-05-15
INDUSTRIAL RATE
SHOWS DECLINE;
TRADE IRREGULAR
Steel and Auto Outputs Sac
With Loadings, Power
Rate Gains.
LITTLE CHANGE SEEN
IN GENERAL BUSINESS
Commerce Department Finds Pace
Neither Gaining Nor Slowing
Any Extent.
BY THOMAS E. FLANAGAN.

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer,
A decline in industrial activity and
reports of trade irregularity were en-
tered in the Nations ledger for the
week just ended.
Declines were registered in steel
production. carloadings and motor
output. Production of electricity
picked up slightly, but was consider
ably under year ago.
Citing mixed trends In both re-
tail and wholesale trade, the Com
merce Department in its weekly sur
vey OF business in SO key cities said
general business is neither advancing
nor retreating to any appreciable ex-
tent"
Steel production was slightly under
the preceding week. In steel trade cir
cles 1t was said there had been yir-
tually no change in the pace of in
coming orders nor was any expected
curing the next few weeks. Some
thought that various Government con-
structlon projects and scattered de-
mand from railroads might serve to
bolster output.
Price Action Awaited.
once more steel experts focused at
Nntlon on price announcements for
tne thlrd quarter, which are expected
before the end of the month. It was
noted that although prices have been
irregular recently there have been no
indications of markdoWn in listed
quotations for the second quarter
Some encouragement was derived
from the report of Iron Age that steel
scrap prices appeared to have "hit
oottom," remaining unchanged during
the week at $1175 a ton.
comment on steel demand from
motor companies was conspicuously
absent from steel trade reviews.
Motor production which dipped mod
erately under the previous week con-
tinued to lag far behind the like week
OF 1887. The production declines
were studied in the light of lower
purchasing power in both farm and
industrial areas and declining dividend
payments.
On this score 1t was noted that
sales of cars and trucks by General
Motors Corp. in April had fallen to
the lowest level for that month since
1888. Sales to consumers in the
United States were slightly higher
than in March but only about half
those in the like month of 1887.
Barometers Studied.
Business analysts, scanning statisti-
cal evidence for straws in the wind
noted the following: A decline in
commercial, industrial and agricul-
tural bank loans, lower first quarter
corporation earnings. a drop in the
daily national production Of crude
oil, decline in drug sales under
1887 levels, continued weakness in
commodity prices, lower bank clear
ings and seasonal increases in ship
ments of some building materials.
A footnote on the continued lag
in heavy industrial activity was pro-
vided by the National Machine Tool
| Builders Association, which includes
most of the Nations largest machine
tool producers. The association re-
ported its index of orders declined to
9o.3 in April from 1O7 in March and
1925 in April, 1887.
Shares on the New York Stock
Exchange felt the effects of profit
selling but held stubbornly the gains
made in the previous week. In the
bond market price improvement which
started about month ago continued.
Utility and railroad issues were par
ticularly in demand.
The American Iron and Steel In
stitute estimated production at 3O4
per cent Of capacity, compared with
307 the previous week, 1927 a month
ago and 9l.2 in the like week of 1887.
Electricity output totaled 1889, 100
| 900 kiloWatt hours in the week ended
May Z, the Edison Electric Institute
reported. This was slightly higher
than the previous week, but 1.09 per
cent under year ago.
Freight Loadings Down.
Freight car loadings, reported at
536, ,140 by the Association of American
Railroads, were down 13 per cent from
the previous week and 1913 per cent
under year ago. Motor production
totaled 47,415 units compared with
53,385 the previous week and 139,507
in the corresponding week last year,
Wards reported.
The Associated Press index of in
aSstrial activity slid to 662 from CTS
| the previous week and 1886 in the
like 1887 week.
The Commerce Department said
that while nearly all reporting cities
showed retail losses from 1887, declines
were small in most cases and were
attributable mainly to unfavorable
weather. Compared with the previous
week, cities reporting losses about
equaled those with gains, with num-
Der of centers indicating no change.