Evening star., 1939-01-22
Railroad Orders
Boost Demand
For Steel
| Retail Advances Spur
| Wholesale Buyers
| During Week
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Fresh railroad demand helped
stiffen the steel industry's backbone
this week.
Other important entries on the
Nations business ledger told a story
of further gradual industrial expan-
sion following the holiday let-down.
Fatter figures were posted for pro-
duction of steel, motors, power and
carloadings. Gains in the retail
division helped put buyers in whole
sale markets in bolder mood.
A short time ago, steel trade cir
cles hitched their hopes to the rail-
roads. This week there were indi-
cations these hopes had not been set
too high.
Iron Age, Bible of the steel in
dustry, reported that railroad orders
and inquiries have heightened in
terest in the steel market
Even without Government assist
ance," the survey said, 1T is now
estimated by the steel trade that Or
ders for rails this year will total
about 100000 tons, or double the
amount rolled in 1898, and that iron
and steel sales as a whole to the
railroads will gain not less than so
per cent over those of last year."
Other Buyers Delay.
Other big steel buyers, however,
seemed to be turning a cold shoulder
to the steel market. Experts said
that steel lacked the fuel for fresh
momentum until the motor industry
stepped up production.
Recently, it was noted. the motor
makers have been timid buyers of
steel. Lack of nerve has for the
most part reflected the industry's
desire to keep production from out
running sales.
Thus far this month the retail
sales curve has climbed much more
steeply than usual. Preliminary re-.
ports to manufacturing centers
| showed that sales have run more
than 80 per cent ahead of a year
ago. Meanwhile the motor industry's
prime barometer-sales in Wayne
County. Mich.-shoWed new pas
senger ear turnover was 1.142 in the
latest week, more than double the
previous week and nearly three times
over the like 1888 week.
Capital Is Watched.
Business experts who looked to
| Washington for hints of future
trends had the following factors to
| reckon with:
AT his first press conference, At
torney General Frank Murphy said
he intended to pursue a policy of
vigorous antitrust enforcement.
Congress gave further demonstra-
ton that it is in an economical
mood. Reports from the Depart
ment of Agriculture left no doubt
that farmers cash income still de-
pends in some measure on Govern
ment disbursements. John Hanes,
Undersecretary of the Treasury in
charge of tax matters, in a speech
put the accent of administration
policy on recovery. At the same time
he said: Il have not been able to
think Of any practical, attainable
way of bringing income and outgo
into substantial balance now"
Meanwhile, Senator Burton K.
Wheeler, Democrat, of Montana in
dicated he would probably intro
duce next week legislation intended
to improve the financial health of
the long -ailing railroad industry.
The Senator said it was his under
standing that President Roosevelt
desires comprehensive rail legisla-
ton at this session.
Wheeler said his proposals would
embrace voluntary consolidation and
coordination of lines, simplification
of the Interstate Commerce Commits
sion and regulation of all types of
transportation by a single authority.
Broad Recovery Seen.
In its weekly review of business in
81 cities, the Commerce Department
said: Business conditions through
out the country showed moderate
Improvement in practically all lines.
The great majority of cities re-
ported retail trade practically on a
par or above last years comparative,
| though increases, where shown, were
generally small. Increased whole
| sale activity again was in evidence,
with one of the most promising signs
that of the increased number of
buyers present at various trade
shows"
Industrial statistics published this
week follow:
The American Iron and Steel In
stitute reported steel production at
52.7 per cent Of capacity. a rise Of
a point over the preceding week.
A month ago the rate was SIT, a year
ago. 1913.
The Edison Electric Institute esti-
mated output of electricity at 2269. =
5000 kiloWatt hours for the week
ended January IA. This was a
moderate rise over the previous week
and 7.3 per cent over last year.
The Association of American Rail-
roads reported carloadings in the
week ended January IA totaled $685.
BIT. up 10.6 per cent over the pre-
ceding week and IL per cent ahead
of the like week year ago.
Wards Automotive Reports, Inc,
said motor production rose to 90
205 units from 86925 the previous
week and compared with 65,41s in