Evening star., 1939-02-05
Stability Helps
Trade Outlook
For Spring
Declines Smaller Than
Expected; Important
Gains Cited
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

k6ScSldIcu Iltoo WLIlcIs
Leading industries opened the
new month with a show of stamina
last week.
Gains in carloadings and produc-
ton of steel and electric power were
studied in the light Of statistics for
the month just ended.
Normally, January business is
spotty. In some divisions it usually
brings declines. In others opera
tlons quicken.
A survey issued yesterday by the
Chamber of Commerce of the
United States said that on the basis
of latest available figures the rec
ord was this: In January increases
generally occurred in those sectors
where an upturn is normal. Where
decreases were expected they were
in numerous instances "on a smaller
scale than usual
Gains made in the later months
of 1888 appear to have been held in
January, and in some directions new
progress has been made" the
chamber said. The net results in
business conditions during January,
therefore, augur well for the fol-
lowing months"
Steel Consumption Steady.
The steel industry-a major en-
ployer OF men, materials and
money - reported consumption
steady. Trade experts said the in
dustry was drawing fresh vitality
from the railroads and the con-
struction field. With motor produce
ton and sales running at a better
than-seasonal pace, analysts said
new orders for steel would likely be
sluiced in from this source before
long.
A blot on the steel industry's
ledger, however. resulted from per-
sistent reports that the price struc-
ture was weakening. Producers,
keenly aware that rumors of price
cuts usually put buyers in a timid
mood, were quick to deny prices
would be shaved
| Those who studied the outlook for
steel demand from railroads noted
that carloadings. although per
cent ahead of the like week of 1888,
were still long way from satisfac-
tory, Experts pointed out that
many systems are still wobblng
along under the strain of heavy in
terest charges. Until this burden
was hghtened in part. they said,
numerous roads would be forced to
stay away from the equipment
market.
New Agency Proposed.
The railroad problem still ha-
rassed Congress. The House Inter-
state Commerce Committee received
a proposal for creation of a railroad
reconstruction finance corporation to
help railroads Whittle down their
funded debt.
I Focuslng attention on one espe.
clally knottv part of the railroad
problem was statement to the com.
mlttee by George NJ Harrison. rail.
way labor executive. He said he
+ thought that if the railroads had
realized sooner the ability of truck
ana motor carriers to haul freight. a
part OF the current railroad difficult
ties would have been avoided.
/ In this connection some observers
studied statistics released this week
by the American Trucking Associa-
ton. Inc. They showed that the VOL
ume OF freight moved by truck in
December. for the fourth consecu-
i've month, exceeded the volume for
the like month the year before.
Inese straWS in the trade winds
were watched by businessmen in the
week just ended: Construction
awards hit a 10year top in Janu-
ary. The National Industrial Con-
terence Board. research organiza-
ton sponsored by private business.
reported national employment rose
slightly in December. The Com
merce Department reported whole
sale inventories down nearly ID ner
cent at the end of 1888 from 1887.
Lumber output increased well over
, year ago. The first 26 companies
10 issue fourth quarter income state
ments reported IA per cent decline
from the previous year.
AIdut Up moderately.
In It's weekly review of business In
50 cities, the Commerce Department
said industrial activity was about
| one-fourth above the rate last year
'' Retail and wholesale trade gen.
orally continued a moderate advance
- Employment conditions were
spotty.
Despite snow and rain in manv
sections, practically all reporting
cities registered nominal increases
IN retail trade, or business on a par
with last year. at which time how
ever, this branch of trade was ex-
tremely dull"
The American Iron and Steel In
Stitute reported production up to
52.8 per cent of capacity from 512
per cent the week before. A month
ago it was 50.7, year ago 30.5.
Electricity production for the
week ended January %. totaled
1892, $4,000 kilowatt-hours, accord
ing to the Edison Electric Institute.
This was slight gain over the prev
ious week and up go per cent from
the like week last year.
Wards Alternative Reports. Inc,
said motor production totaled 79,410
units, compared with $4,000 the pre-
ceding week and 81, ,443 in the CORE
spending week year ago.
The Association of American rail-
roads reported loadings totaled 594,-
379 cars in the week ended January
%. This was small gain over the
week before and 9 per cent better
than the like period year ago.