Evening star., 1938-05-01
INDUSTRY DRIFTS
TO LOWER LEVELS
W|THSTORE SALES
Steel, Power and Motor
Outputs Move Down.
= Loadings Drop.
HESITANCY Is EVIDENT
IN RETAIL DEMAND
Auto Sales Rise Steadily in April,
but Fall Short of Earlier
Expectations.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.
The Nations trade and industry
orlfted downstream this week.
Statistics on steel, power, motors
and carloadings were lower. Retail
trade hit slower pace.
Wholesale trade reflected the hesi-
tant tone of the retail trade segment"
the Commerce Department reported
IN its weekly survey of conditions in
36 cities.
The Associated Press index of in
dustrial activity made one of the
deepest declines of the year. It fell
to 66.8 from 68.3 the previous week
and 107.5 in the like 1887 week.
Although Iron Age, steel industry
trade paper, reported more cheerful
sentiment, steel operations were throt-
tied down little The American Iron
and Steel Institute estimated produc-
ton at 80 per cent of capacity, COM
pared with 324 the preceding week,
35.7 a month ago and 92.3 in the like
week a year ago when the industry
was riding the recovery crest.
Stocks Cut Sharply.
Other reports from steel trade cen.
ters said some users had cut stocks of
steel sharply. while others still had
large amounts of steel on hand.
Demand for steel for construction.
motors and railroads was said to be
still at low ebb. One motor company
sent out inquiries for steel for 1899
mooels. but experts said the industry
at large was not expected to start buy
Ing until about July, when the need
for steel for new models would become
general
Notwithstanding the fact the Gov
ernment has made loans available to
the railroads to some extent, rail OBJ
servers said the industry probably
would not venture to buy equipment
until freight loadings definitely started
on the upgrade
Output of automobiles slid to 50,775
units from 60,563 the previous week
and compared with 141 ,485 in the like
week year ago, Wards Automotive
Reports said. The downswing was at
trlnuted in these reports to strikes at
General Motors plants.
Automobile output appears def
nitely to have passed its spring peak"
the review said.
Motor Sales Improve.
Although motor sales climbed stead
lily during April, the final score was
expected to fall short of earlier ex-
pectations. In this connection observ-
ers noted farm income had dipped
under 1887 figures and that national
income in the first quarter of 1888, as
reported by the Commerce Depart
ment, was 5.4 per cent under last year.
Wages made the sharpest drop-7 per
cent-while payments of dividends and
interest declined "a per cent.
Production Of electricity totaled
1851 .456,000 kilowatt hours in the
week ended April %. the Edison Elec-
trio Institute reported. This was a
little under the preceding week and
| down 1913 per cent from the like week
a year ago.
In the week ended April % freight
carloadings totaled 523,767, the Asso-
citation of American Railroads reported.
This was 2.6 per cent under a year
ago and down 307 from the corre-
spending week a year ago.
The slower freight total reflected
smaller coal shipments and a mod
crate dip in miscellaneous loadings,
the largest industrial classification.
Rail WaUo plouc Watched
Closely studied for its implications
In relation both to the railroad indus
try itself and allied fields was the
proposed IS per cent wage cut for
100000 of the Nations railway work.
ers. In voting the cut, effective July /,
the Association of American Rail-
roads contended the action was neces-
sary because the finances of the rail-
roads were in worse shape than 1882,
the bottom year of the depression.
Strong opposition to the reduction ap-
peared in prospect from union leaders.
On the New York Stock Exchange,
shares sagged in quiet trading. Me-
dium-priced bonds decline debut high
priced issues held steady. U. S. Gov
SAAAA4ASAc bS4ANo
Commodities slid to the lowest aver
age level since July, 1894.
Retail Trend Unfavorable.
Miscellaneous straws in the busi-
ness and financial wind were: De-
clines in mail order sales, lower first
quarter earnings reports by industrial
companies, the continued low level
of new financing, scattered wage cuts,
an increase in lumber orders and a
further rise in surplus lendable bank
credit.
Detail volume compared unfavorably
both with the previous week and the
like week last year, the Commerce
Department reported.
Some encouragement was gained
from the fact, however, that de-
creases from 1887 were relatively
small, while eight cities reported gains
over last year. These were: Kansas
City, Boston, Minneapolis, Memphis,
Washington, Charleston and Los
Angeles" roa
-JIa