Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-11-06
Auto Industry
Takes Lead in
Trade Revival
Power, Steel Outputs
Also Climb With
Rail Loodings
Bv THOMAS F. FLANAGAN,

Associated Press Financial Writer.
The motor industry marched in the
van of the business recovery move
ment this week.
Reports from manufacturing CEN
tiers said these factors were instru-
mental in the motor making re-
vival:
Consumer demand. bolstered by
rising wages and increased employ
ment, has been brisk.
Dealers stocks have been de-
pleted.
And of great significance, experts
said. was the comparatively healthy
condition ofsthe used car market.
Several months ago the supply of
used cars throughout the country
provided many a dealer with head
aches. Although authoritative and
complete statistics never were COM
piled, some trade authorities were
convinced the total was large enough
to block the path to increased sales
of new cars.
/ Intensive sales efforts cut deeply.
! however, into the total of old cars
in dealers hands.
Used Cars Watched.
( With these facts in mind, business
men studied closely this week warn
ingS from retail dealers associations
( that there must be no let-up in eff
forts to keep used car stocks down
TO manageable proportions.
/ Should efforS slacken, it was point
ed out, there might develop another
glut OF used automobiles.
This would tie up dealer capital
it was said, and throttle down out
put of new models
While automobile output neared
last years production rate. improve
/ ment was reported also in several
| other sections of industry.
Steel and electricity output in
creased and carloadings expanded
On the whole. these upturns were
matched by improvement in other
fields. Residential building permits
increased in many cities. Retail
trade qmckened. Demand for cleo
trlcal equipment was brisk.
Heavy Industry Lays.
/ Recovery enthusiasm was tenn
I pered, nevertheless. by a number of
SOLDERING considerations. Buying of
heavy industrial equipment contin-
ued to lag. Textile markets were
spotty. Wholesale trade was irreg-
ular. New financing and bank loans
to business were slack
The railroad problem of rising
costs and reduced revenue again
was pushed into the foreground
when the Nations major railroads
Cancelled an order for a IS per cent
wage reduction for more than 900
600 workers. Railroad executives
hoped this decision would help clear
the track for legislation to aid the
carriers.
During the week these industrial
statistics told story of gradually
expanding business vitality:
The American Iron and Steel In
stitute estimated steel production at
568 per cent of capacity, compared
with 53.7 per cent the previous week
and 1876 in the like week of 1887.
Auto Output Jumps.
Wards automotive reports said
production totaled 10000 units. A
week ago the total was 1885,
year ago, SOTO.
| The Edison Electric Institute re-
| ported that in the week ended
! October 30, power output increased
moderately to 2.226.O38 900 kiloWatt
hours. This was 1.3 per cent under
the corresponding week year ago.
The Association of American Rail
roads reported that in the week
ended October %, carloadings totaled
706,640, small increase over the
preceding week. but nearly $4,000
cars less than in the like week last
year.
In its weekly survey of business
conditions in SO key cities, the Com
merce Department said:
stimulated by the advent Of more
SeaSonable temperatures in many
/ sections, retail trade during the
week presented a more favorable
front than for many weeks.
AN increased number of cities re-
ported advances over last year
comparative, including Milwaukee,
New Orleans. Norfolk, Boston, Will
mington, Salt Lake City, Mime
apolis. Omaha, Atlanta, Washington,
Kansas City, St. Louis. Indian
apolis, and the Dallas Federal Re-
serve district"