Evening star., 1938-05-08
INDUSTRY TAKES
UNEVEN COURSE,
TRADE ST|LLLACS
Steel and Power Outputs
DoWn-Auto Volume
and Loadings Up.
BUSINESS CONDITIONS
SHOW LITTLE CHANGE
Most Cities Report Retail Gains
in Week Due to Seasonal
Needs and Promotions.
BY THOMAS E. FLANAGAN.
Associated Press Financial Writer

Associated Press Financial Writer.
Observers scanning the business
horizon in the week just ended saw
statistics which indicated declines in
steel and power production, some i'm
provement in freight carloadings and
motor output.
The end of the week brought word
from the Commerce Department that
the early days of May brought ns
outstanding change in trade condi-
tions throughout the country"
The tendency" the report said.
was to mark time; and fluctuations
IN comparative results, though de-
cloeoly mixed, were not pronounced"
Reports from industrial centers in
olcated steel men were beset with
price uncertainties. Fresh declines in
scrap steel prices were disconcertine.
some said. Meanwhile it was reported
orders and inquiries were in some
centers barely holding ground, in 9TH
ers declining.
Steel Buying Delayed.
From Pittsburgh came word that
steel consumers were fighting shy of
the market until they knew price
schedules for third quarter deliveries.
Reported price concessions granted
consumers by some companies
brought pressure for price reductions
generally, experts said.
An announcement that the Ma
tons largest steel company would
dip into the open capital market fot
SlOO.OOO,000 was major item on the
business ledger.
This decision of the United States
Steel Corp. to borrow to finance plant
modernization bore witness to an i'm
proved bond market. 1t also remind.
ed business observers that the wear
on heavy industrial equipment cam
not continue indefinitely without re"
placement.
Financial experts were not pre-
pared to guess whether many other
companies would follow suit
1t was noted that actual new finan-
cling had picked up little recently but
that in the latest week it still was
about half the level of year ago.
| fnOne 1Otal Jumps.
| Telephone installations usually give
business observers some hint of the
state of business confidence. 1t was
noted that in April operating subsid-
iaries of the American Telephone &
Telegraph Co. increased the number of
telephones in service by nearly 10000.
In the like month last year about
three times as many were put in sery-
| ice
The stock narket-another ba-
rometer of business-improved during
the week. Utilities led an upswing
which was the broadest on the New
York Stock Exchange in a month. Ex-
perts said the rise reflected a growing
feeling that peace pact was in the
ofing between the Government and
the utilities in their T. V. A. contro-
versy.
Closely studied in utility, industrial
and stock market circles was the plea
OF Securities Commissioner John w.
Hanes for teamwork between the
power companies and the Government.
He said that, if cooperation between
the two were forthcoming, several
hundreds of millions of dollars would
flow into construction and replace.
ment work.
Factory Index Higher.
| The Associated Press index of indus.
tr1al activity rose moderately from the
four-year low touched the previous
week. 1t gained to 67.5 from 66.8 the
week before. In the like 1887 week it
was 1888.
Steel operations receded to 30.7 per
cent OF capacity. the American Iron
and Steel Institute reported. Some
trade observers said, however, there
was no reason to believe the decline
had reached bottom. Production was
at 81 per cent of capacity the previous
week. 326 a month ago and 81 in the
like 1887 week.
Freight carloadings made what traf.
| nc experts termed a more than sea-
sonal rise. In the week ended May
the total was 543,075, an increase Of
81 per cent over the previous week.
but 30.2 under the like week last year.
Motor production totaled 53,385.
compared with 50,755 the week before
and 141,275 in the like week last year.
Wards reported. Production of elec-
trio power was reported at ,938. $50 900
kilowatt hours the Edison Electric In
stitute said-a slight loss from the pre-
ceding week and 116 per cent under
the like week of 1887.
In its weekly survey Of business in
36 cities, the Commerce Department
said the majority of reporting cities
turned in substantial increases over
the previous week, but noted that the
rise was due to seasonal requirements
and special promotional events.
Wholesale trade. for the most part.
was inclined to follow the irregular
pattern traced by retail sales. In the
New York wholesale markets apparel
business was reported fair to slow"