Evening star., 1939-08-20
Big Gain in Retail
Sales Tops Trade
News in Week
Unusual Squirt Sends
Steel Rote to Peak
Since November, 1888
BY THOMAS E. FLANAGAN,
Associat ted Press Financial Writsr.

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.
A retail trade gain Of 81, ,O0O, ,O00, 900
topped entries on this weeks ledger
Of business conditions in the Nation.
The upturn--scored in the first six
months of the year over the like
period Of a year ago-was attribut-
able in no small measure to a 40 per
cent rise In motor-car sales, the
Commerce Department said.
This week, however, found the
motor industry idling along at a
much slower pace in preparation for
the change over to production Of
new models.
With a burst of unusual vitality
for this season of year the steel in.
dustry loped ahead to the highest
level since the week Of November IA,
1888. Experts said the industry's
driving power was the more remark
able because it lacked the fuel of
heavy business from the motor, rail
and construction sectors.
Miscellaneous demand for steel
was the stronger because of orders
TO meet the needs of expanding
naval and aviation forces.
Trust Drive Watched.
Inc Governments antitrust
forces, which have made much i'm
portant business news in the last
lew months, did it again this week.
Al New York a special Federal
grand jury indicted the Kraft Paper
association, charging a conspiracy
70 limit production and maintain
prices In restraint of trade In viola.
ton OF the Sherman Act.
Meanwhile, the problem of prices
became paramount In another Sec
tor-the oil industry-when six
states inforced oil field shutdowns,
lhls measure, designed to prevent a
threatened collapse of the industry's
price structure, had the effect of
holding some $500, 900 barrels of oil
on the market daily. It was the
first shutdown of the Continent
area ever put through on such a
wide scale.
Nothing is of more interest to busi-
ness quarters than the state of har-
mony-or the lack OF it-between
Government and business. The
week produced an effort to foster
friendly relations between the two.
John w. Hanes, former Wall Street
banker and now Acting Secretary
OF the Treasury, asked leaders Of
banking, industry, labor, law and
farming to help compile a record of
public tax opinion" to aid Congress
IN revising tax laws next session.
Insurance Sales Lag.
The week found business experts
watching the following straws In the
wind; A lag in life insurance sales.
an impressive rally in utility shares
on the New York Stock Exchange.
rise IN operating railroad revenues,
decline in domestic cotton con-
sumption. tumble in cotton ex-
ports to the lowest level in go wears.
a quickened demand for bank loans.
reduction in prices by a leading
automobile producer, a Jump in bank
clear1ngs for the fourth consecutive
week and a drop in engineering con.
struction awards.
Toward the end of the week. a
fresh outbreak of nervousness over
the possibility Of European war
Jolted the stock market. A burst of
selling on the New York Stock Ex-
change reminded business observers
how quickly any serious war threats
hAPlNt1d "a fon 6,,ri
In its weekly review of business in
So cities. the Commerce Department
said. Retail and wholesale trade
continued to hold UP well, after sea-
sonal adjustments and In practically
all reporting cities the volume OF
sales exceeded that of a year ago.
Operations In the aircraft in.
dustry were we'll sustained, with en-.
courag1ng prospects for the immedi-
ate future.
Disturbed by Crisis.
New York business sentiment was
slightly retarded by disturbing Euro
pean news, though most indices
showed moderate improvement. 80
Chicago retail volume ran substan-
TALLY above a year ago In Kansas
City retail trade improved slightly.
Retail store activity in Los Angeles
was at higher level than for the
two preceding weeks or a year ago,
apparently under the influence Of
cooler weather"
Industrial statistics released dur
ing the week included:
The American Iron and Steel In.
stitute reported production of steel
up to 62.1 per cent of capacity. COM
pared with 601 the week before,
56.4 month ago and 40.4 in the
like week last year.
Electric power output. according to
the Edison Electric Institute, rose
slightly to 1888 ,403, 900 kilowatt
hours IN the week ended August IL.
This was 94 per cent ahead of the
like 1888 week.
The Association of American Rail-
roads reported carloadings gained a
little to 665,l97 in the week ended
August IL. The total was 1913 per
cent above the corresponding week
last year.
Wards automotive reports esti-
mated automobile production at H.
955 units, compared with 24.875 the
previous week and %, $40 in the like
week year ago.
The Associated Press index Of in
dustrial activity rose to "a from 932
the week before and compared with
1858 in the like week last year.
Boston Wool Demand