Evening star., 1939-02-26
Marked Revival
OF Industrial
Spending Due
Prospect Frightened
Despite Continued
Lag in Activity
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.


Associated Press Financial Writer.
Business plans for spending
frightened an otherwise cloudy in
dustrial scene this week.
Industrial operations slumped fur
ther. Declines were posted for steel
production, electric power and mo-
tor output, but carloadings nudged
ahead slightly.
| Along the retail trade front small
gains over a year ago were noted,
although comparisons with the pre-
vious week were spotty and unin-
spring. Analysts said a lag in the
Eastern part of the country put a
dent in the Nations showing.
For many months businessmen
have bemoaned the failure of pri-
vate money to go to work. Recent
weeks have found private funds a
little bolder in pushing into new
enterprise or improvement work.
The week just closed was no ex-
ception.
Texas Corp. 10 Act.
! Topping the list of companies
which will spend money for improve
ments and developments was Texas
Corp. Dillon, Read g. Co., invest
ment bankers, announced the oil
company plans to file with the Sc
curlties Commission within the next
few weeks a registration statemen.
for new issue Of $4,000, 900 deben-
lures.
The securities will represent one
OF the first new capital borrowings
in recent months Most recent ap-
proaches to the capital market have
been for refunding issues. Finan-
clal and business analysts noted.
however, that stock financing has
remained at low ebb and that until
"speculative' capital becomes more
active in the search for profits bust
ness will lack an important ele-
ment of strength.
Other spending plans which
brought cheer to business circles
were: American Gas and Electric
Corp. disclosed it intends to spend
s25 100000 in 1899; the Chicago.
Milwaukee, st. Paul e. Pacific Rail-
road announced it will spend moro
than sll,000000 this year, and In
ternatlonal Harvester Co. announce i
a s3.O0O000 modernization program
for its Milwaukee works.
Construction Jumps.
A report of Engineering News
Record showed that the construc-
ton industry has quickened It's
pace. The survey reported con-
, struction awards in the latest week
had jumped a. per cent from last
week to level Sc per cent higher
than year ago.
Meanwhile, Iron Age had some
encouraging comment on the steel
industry. 1t said that notwith-
standing the current decline in steel
production there were signs of an
early upswing in operations.
The recent decline. the survey
said, was probably mot so much a
reflection of poor steel business as
an indication of over anticipation
by some steel companies, which
have built up larger stocks of raw
and finished steel than are currently
required"
Businessmen, always chaE of ex-
cessive raw material inventories.
gave thought to the fact that lead
stocks had spurted unexpectedly in
January and that copper inventories
had also swelled.
Ihe motor industry, which IS
counted on to provide considerable
energy soon for the business main
spring, again showed underlying
stamina. This week sales Of new
passenger cars in Wayne Count.
Mich, rose. The total was 1.2OC
compared with 1,134 the previov
week and 655 in the like week tn
year.
Auto Gains Forecast.
Wards automotive reports est
mated factory output was down
1850 units this week compare
with 1880 the preceding week ar,
56,677 in the corresponding week
year ago. The report said produc-
ton lis poised for gradual a6
vance which will move steadil
ahead starting by the middle c
March at the latest"
Virtually all of the loss" said the
report in commenting on this week
decline, was accounted for by thu
1actlonal dispute of the United Auto
Workers Union at the Plymouth
plant this week"
Other industrial statistics issued
during the week included:
The American Iron and Steel In
stitute estimated steel production a
53.7 per cent of capacity, compared
with 548 a week ago. 512 a month
ago and 30.4 in the like week of 1888,
The Edison Electric Institute re-
ported production in the week ended
February 18 totaled 2,248. .767,vv,
kilowatt hours. This was a slight
drop from the week previous, but
go per cent ahead of last year. De-
spite the interruption incident to
the Lincoln's birthday holiday, ana
lysts said the drop was less than
seasonal.
The Association Of American Rail-
roads reported carloadings totaled
580,071 in the week ended February
18, Slight gain over the preceding
week and 82 per cent higher than
year ago.
The Associated Press index Of in
dustrial activity dropped to 877 from
1874 the week before and compared
with 69.3 in the like week last year.
The Commerce Department, re-
porting on business conditions In IS
key cities, said, retail trade gener-
ally showed small gain over last
years volumes"