Evening star., 1938-11-20
Heavy Industry
Forges 70 New
High Levels
Motors and Steel Set
Pace in Extension
Of Recovery
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

| Associated Press Financial Writer.
Heavy industry, paced by motors
and steel, moved farther into re-
covery territory this week.
Steel operations rose to a new
1888 high. The motor industry,
stimulated by increased sales. Wild
ened its production gain over a
year ago.
Electric power output swung up
ward. Experts said statistics on
electricity production carried
stronger indication of industrial i'm
provement than recorded in any
previous week this year.
Two weeks ago, analysts were pre-
dieting a sizable decrease in power
output.
Instead, the total of 2.209 32400
kilowatt hours, reported by the Edi-
son Electric Institute, was up is
per cent over the corresponding
week last year. In the week ended
November 5, the gain over the like
1887 week was only 0.2 of per cent.
Reflects Factory Activity.
Favorable behavior of this i'm
portant industrial barometer re-
flected heavier demand for power
in both the New England and the
central industrial regions.
1t meant that steel mills. motor
and textile makers we're turning out
goods at faster speed.
AS in recent weeks, the motor in
dustry again was the wheelhorse.
Reports from motor centers were
that field stocks remained low. Mean
while. from the National Automobile
Show in New York came word that
the demonstration was closing on
the most optimistic note in several
years. Cash sales have exceeded
early estimates and sales forces re-
ported that first-time buyers had
done much to swell totals.
The upswlng in steel production
came in for much comment in busi-
ness circles. Business men noted
that the current advance was in
contrast with the situation last year
at this time. when operations de-
creased shortly after mid September.
1t was recalled that the downsWing
carried output off to 1872 per cent
Of capacity in the week after
Christmas.
In trade circles it was predicted
that the final quarter Of 1888 would
bring no such slump. Although it
was said the industry has drawn
energy from price reductions, the
motor and railroad industries have
been good buyers. Business from
these sources and from public
projects, it was said. would probably
hold production steady for several
weeks.
In most important centers goods
moved across retail counters in in
creased volume. The result was
heavier turnover in wholesale mar
kets.
1t was noted that the expanding
force of industry had its counter
part in the wholesale field. AL
though speculative demand was
light. the Commerce Department
said there was disposition to step
up inventories whereas at this time
last year merchants we're letting
stocks of goods run out rather than
get caught with excessive supplies.
Revival Continues.
In its report of business condi-
tions in 81 cities, the Commerce
Department said:
Despite the Armistice Day holi-
day business activity continued its
advance on a broad front. Retail
trade repeated its gradual improve
ment of the previous week.
only five cities reported definite
decreases in retail business from
the previous week and the great
majority of the 81 registered in
creases over last years compare
tive. Where decreases were re-
vealed. narrowing margins of losses
were indicated
Here are samples of the weeks
statistics on major divisions OF
industry:
The American Iron and Steel In
stitute reported production up to
62.6 per cent of capacity, from 81
the previous week and compared
with 63.6 per cent in the like week
a year ago.
The Association of American
Railroads reported that in the week
ended November IL carloadings to-
tailed 636,7l0, a decrease of 5.4 per
cent from the preceding week and
down 70 per cent from the CORE
spending period of last year.
Wards automotive reports esti-
mated production at 96,735 units
compared with $4,000 the previous
week and 85,757 in the like week
last year.
Goodxenr Tire Calls