Evening star., 1939-06-04
Navy's Ship Orders,
Worth S350,0O0,0
Stir Business
Warmer Weather
Quickens Pulse Of
Some RetuiI Lines
BY THOMAS E. FLANAGAN,

Dy AhoNAho r LAENaNIATNs
Associated Press Business Writer.
The Navy made major business
news this week by ordering $3.50, ,ooo,.
600 worth of warships.
From the Nations mills and count
ers, meanwhile, came reports that
business was holding an even keel.
A sharp dent in motor production
was offset by gains in carloadings,
steel and electric power production.
Warmer weather quickened the
pulse OF retail trade in some lines.
In the wholesale field there were
reports that buyers had thrown of
some OF the caution of several weeks
ago when war fears predominated.
The orders, for "a warships. which
were rescribed by Assistant Secretary
Edison as "a good size navy" in itself
meant that more men and raw ma
ter1al would pass through the gates
OF the shipyards on the West and
East coasts.
Means Orders for tSeel.
Experts said the Navys building
squirt would mean orders for the
steel industry which for some time
has lacked the normal nourishment
OF business from the railroad in
oustry and some other heavy steel
consumers. At the same time it was
stressed that the electrical eo1ip-
ment manufacturers and numerous
miscellaneous manufacturers would
stand to profit from the laying of new
bottoms.
Along the private business front
the sharp slash in motor output cap
tured most attention. 1t was attrib.
uted both to the Memorial Day let.
down and to the shutdown of Chrvs-
Ter plants because of the strike in
the Briggs Manufacturing Company
at Detroit. 1t was noted that tina
latest week was the first this year in
which production skidded to a level
less than the comparative figure of
1888.
On the other hand, the Commerce
Department reported that sales of
new cars at Wayne County. Michi-
gan, gained to 2163 units from l.752
the previous week and compared with
587 in the corresponding week last
year.
Bottom Seen in August.
Analysts attached considerable sig.
nlncance to indications from motor
centers that preparations for the
next automobile season would get
away to a quicker start this wear
owing to plans for earlier showing
OF new models. Some observers said
that on the basis of current reports
the seasonal bottom for production
Woud be bumped during August in.
stead OF the end of September as in
recent years. This will mean that
the industry will call earlier for
steel, cotton, rubber. copper, wool
and the other raw materials which
60 into automobiles, they said.
Thls weeks meeting of a group OF
top-rank business men with tha
president once more focused atten.
tlon on the problems of Govern.
righteousness relations.
Secretary of Commerce Hopkin,
salo the business group had urged
the President to seek amendments
OF the Wagner Labor Relat tions act.
The Secretary made it plain that
tne President gave no indication Of
whether he favored anv amend.
ments. Mr.. Hopkins asserted the
business leaders told the President
that their own businesses were doing
better than at this time last wear.
Capital Markets Sluggish.
Leading private business survevs
Issued during the week stressed
once more the sluggishness of the
new capital markets. They said
that without a heavier flow of
enterprise" capital the heavy in.
dustries would lag-and with them
employment and the use of raw
materials.
A footnote to the cotton problem
which has long harassed both
government and business-was
provided by the report of the
Bureau of Agricultural Economies
which showed exports of United
states cotton had slunped to a So
year low.
statistics on industry published
during the week follow:
The Associated Press index Of
industrial activity was unchaneed
Tor the week at 1873. In the like
1888 week 1t stood at 65.s.
The American Iron and Steel
institute reported steel production
up 81 points to 522 per cent of
capacity.
In the week ended May 20, out
put OF electric power rose slightly
to 2,2O4,S5sooo kilowatt hours the
Edison Electric Institute said. This
was the highest in two months and
III per cent ahead of last years
like period.
Wards automobile reports said
32,445 new cars came off assembly
nnes during the week, compared
with 67740 the preceding week and
32,980 in the like week a year ago.