Evening star., 1938-06-12
TRADE IMPROVES
WHILE INDUSTRY
CONTINUES T0LAG
Warm Weather Is Major
Factor in Increased
Retail Activity.
AUTO OUTPUT JUMPS,
STEEL RATE EDGES UP
Both Freight Loadings and Power
Production Register More
Than Seasonal Losses.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

by IHOMAS T.. FLAN NAOAN,
Associated Press Financial Writer.
Warm weather quickened the pace
Of retail sales in most parts Of the
country during the week just ended,
but industry continued to limp.
Business analysts entered these items
on the ledger for the leading industrial
divisions:
Steel-Slight improvement.
Motors-Production rebounded up
ward after the Memorial holiday let
down.
Carloadings-Down more than sea-
sonally.
Electric power output-A greater
than normal decline for this season.
Economists noted that business loans
declined and the new capital market
remained slow. On the other hand,
they found that cotton manufacturing
gained. residential building kept to
the upgrade, and stocks and commodi-
ties rose unevenly as the result, some
experts said, of imitation talk.
Steep Drop Checked.
The statistical picture drawn from
these varied sources appeared neither
inspiring nor depressing to most stu
dents of the situation. On the whole
about all they ventured to say was that
the steep business downswing appeared
to have been checked. How soon trade
and industry would move forward, few
cared to guess. Those who did hedged
opinions. Predictions for the most
part were that August or September
might see start forward.
Most business men agreed the rail-
road industry was perilously sick.
Wealthy" systems, Government ex-
perts said, are fighting disheartening
| fight in the struggle to meet interest
charges out of declining revenues.
Meanwhile, more roads have been slid
ing into the weak" class
Persons high in the Government
made no secret of their gloom over the
railroads plight. AS they found some
hope, however. in news that President
Roosevelt favored stop-gap legislation
at this session to hasten reorganiza-
ton.
| Called Recovery Key.
Business men said that until the
rail industry was restored to sound
health, other sections of business
would operate under a handicap. An
example which drove this point home
was report by the Interstate Com
meree Commission. 1t showed sub
stantial declines in railroad employ
ment and pay rolls, compared with
1887.
The continued low railroad demand
contributed to the condition of the
steel industry. The Pennsylvania
Railroad Co. authorized some new con-
struction. Analysts said. however, the
Pennsylvania order was but drop in
the bucket so far as the steel industry
was concerned
From the motor industry came word
Of uncertain trends indicated for the
| future. A glimmer Of optimism came
in the reports from the machine tool
industry. These indicated motor max
ers would make strong efforts to cap
ture new buyers by extensive remodel
| Ing OF new cars.
Steel Rate Higher.
| Steel operations were at 262 per
cent of capacity, the American Iron
and Steel Institute reported. The per-
centage was 26.1 the previous week
and 76.2 8 year ago. Motor output,
Wards reported. was 40,175 units.
| Production was 26 $50 in the preceding
week and 1873 in the like 1887
period.
The Association of American Rail-
roads reported carloadings OF 502,624
in the week ended June 4, which IN
cluded the Memorial Day holiday.
This was a decline of 10.6 per cent
from the week before and 27 per cent
from the corresponding week last year.
Electricity production. the Edison Elec-
trio Institute said, was 1,87S,S51, 900
kilowatt hours in the week ended June
4, decline of 11S per cent for q year
ago.
Weather Favorable.
aided largely by more favorable
weather, retail trade moved into higher
| ScdT Ill SUBSTANTIALLY OH poi 10 VA IAiS
country during the week ended We'd
nesday" the Commerce Department
reported.
while the curve headed upward
from the previous week. it lacked suffi-
cient vitality to attain the levels Of the
previous year. Roughly. retail trade
trailed behind the comparable 1887
period by something like Is per cent.
Omaha and New Orleans, however,
reported gains Of 8 per cent over the
like period of last year. while the sur
vey indicated that more than half of
the reporting stores of Dallas showed
business on a par or slightly above
last years levels
Wholesale markets were slow, the
report said.