Evening star., 1939-04-19
Machinery Industry
Faces Real Test
After Upturn
New Deal and FOREIGN
Uncertainties Cloud
Prospects
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, April l9-Industrial
business right now is facing a real
test, reports .Burnham Finney in
today's issue of American Machinist
Since last summer it has shown a
steady upward trend, not so fast as
some sales managers wished, but
still a good gradual growth.
The March machine tool index
Jumped to 1854, the highest level
for 18 months. Business still seems
TO want to move ahead, but to do so
1t must pass series of hurdles, any
one of which may throw it off its
stride.
New Deal "appeasement" which
was promised to 60 beyond the
verbal stage has stopped right there,
and the stopping place appears to
be the White House. Labor troubles
have reappeared with the outbreak
in the soft coal fields. Several in
dustrial centers are jittery for fear
that this symptom may materialize
in a new rash. The foreign situation
has not been conducive to quiet
nerves, with the man on the street
giving greater attention to geog-
raphy than he ever did at school,:
and the corallary to this uncertainty
a stock market break, has not helped
sentiment.
Foreign Sales Drop.
Government orders, educational
and otherwise, so widely heralded
as new stimulus for industry have
not materialized in sufficient volume
to have strong effect. Foreign
sales have tended to fall off. The
result has been a spotty business
picture, with some sections still
pushing ahead, while others feel
the pinch. An encouraging indica-
ton is the underlying vitality in the
face of so much uncertainty.
At New York the metropolitan
area is doing pretty we'll Some
good business has been placed during
April and more is pending. Air
craft makers are among the active
buyers. Government orders are COM
ing in steadily.
Buying in Eastern PENNSYLVANIA
has slowed up. Other than small
individual orders little business is
being placed. with the coal strike
blamed as the repressive influence.
Some action in Government inquir-
les is looked for within the next go
days.
Labor Troubles Feared.
At Pittsburgh labor troubles give
concern, with the c. I. o. losing in
f1uence and local leaders using snip
ing tactics. AS a result orders and
inquiries have dwindled during the
past 10 days.
At Detroit war scares and lower
stock prices have dampened senti-
ment in the auto industry. New
model programs are about cleaned
up. General Motors has not placed
many orders on its 100000 pro-
gram for its new transmission plant.
Some die work is being let with
about s1,000,00O worth being placed
by Fisher Body. Interest is being
displayed in industrial baking ovens.
At Chicago activity has changed
from steady to spotty. With less
upsetting news the feeling is that
business would resume it's recent
strong tone. The tractor industry
shows signs of fair activity. Deere,
Oliver and the Moline plant of j. I.
Case was running close to capacity
Other implement plants are slow
The Harvester Farmall plant at
Rock Island will not get into opera
ton for several weeks because of
changeovers to take care of the new
20 and 80 horsepower models. Cater
pillar is going strong at Peoria. Last
week Chicago Flexible Shaft started
new three-story building, partly
machine shop and partly stores.
Consolidation of Austin Western ac-
tivities at Aurora means some outlay
for plant and equipment.