Evening star., 1939-05-14
Auto Output Climbs
As Other Industrial
Lines Decline
Expanding Motor SoIes
Indicate Big Gain
In Buying Power
BY THOMAS E. FLANAGAN,
Associated Press Business Writer.

Associated Press Business Writer.
The automobile industry was the
strong boy of business this week
Steel, power and freight car load
ings dropped little but motor pro-
duction got boost from expanding
sales.
The Commerce Department re-
ported that sales of new passenger
cars in Wayne County, Mich, rose
to 2,198 units from 2,053 the previous
week and compared with 681 in the
like week year ago.
The width of the gain over last
year bore witness to the higher plane
Of purchasing power compared with
last year at this time.
Also throwing additional light on
expanded buying power were sales
reports Of two leading mail order
houses. Sears, Roebuck & Co. re-
ported April sales at S49 159 636, the
highest for that month on record.
Montgomery Ward & Co. had new
high of SAL 595,3 ,351.
The week produced tangible evil
dence that fears of war abroad were
receding. The American Institute Of
Marine Underwriters reduced war
risk insurance rates on shipments
between the United States, the
, United Kingdom and Europe.
Trade Only Steady.
II business men felt better over
the lifting Of war threat clouds they
failed to translate better sentiment
nptint1
trade was only steady at best, while
industry showed signs of oncoming
summer doldrums.
Experts seemed preoccupied with
developments along the Washington
front instead of the tumble of Euro
pean power politics. They noted that
Secretary Of Commerce Hopkins said
the 'pessimiSm expressed at the
recent United States Chamber Of
Commerce meeting was unwar.
ranted.
Closely studied by business an
alySts was the Senate's passage Of
a record-breaking Sl2I3666.572 bill
for Government OUTLAWS for the
farmer. The bill must 20 back to
the House, where a contest is ex-
| pected over the 1888 647.959 in
creases provided by the Senate over
the total earlier voted by the House.
Business spokesmen said that
controversy in Government circles
over taxes likely will remain an i'm
portant influence on trends during
1 the coming months.
! I'titify Ein21cioo ToIl,oJ
From Wall Street came reports
that various utility companies were
edging up to the capital market.
some observers interpreted this TO
mean that some concerns are ready
to move forward with an admin.
lstration proposal that the Ma
tons power-producing systems be
/ strengthened to meet any needs
arising in a national emergency.
1t was pointed out that utility
executives would prefer to raise
money by common-stock financing
but that some bankers are timld
about floating stock issues.
Analysts studied trade trends In
the light of some of the following
developments: Wholesale commodi-
ties stiffened up on the average.
Prices of some steel products were
cut. Sales Of electrical goods
gained sharply for the first quar-
ter. World wheat prices were
strong on uncertain crop prospects
in this country. Lumber orders
! jumped we'll ahead of last year. The
influx of gold from abroad con-
tinued Orders for machine tools
were sharply higher than a year
ago.
Retail Reports Mixed
The Commerce Department. in its
report on business in 36 cities, said:
Expanding activity in the con-
structlon industry has stimulated
allied lines, and total industrial pro-
duction is running about one-ffth
above the level of year ago Re-
ports on retail trade varied in diff
ferent sectors, with small increases
and decreases approximately on a
balance. Wholesale trade was fea-
tured by small but steady orders
for immediate needs"
The following industrial statistics
were issued during the week:
The American Iron and Steel In
stitute estimated production at At
per cent of capacity, slightly under
the preceding week. and compared
with 304 per cent in the like week
last year.
Wards Automotive Reports, Inc,
said production rose to 72.375 units
from II, ,420 in the previous week and
49,415 in the like week of 1888.
Carloadings for the week ended
May 6 were reported at 572857 by
the Association of American Rail-
roads This was slight loss from
the preceding week, but 367O8 cars
more than the corresponding period
a year ago.
The Edison Electric Institute re-
ported electric power production at
2,163, ,538 900 kilowatt hours for the
week ended May g. The total, the
smallest for the year, was slightly
under the previous week, but ll.6
per cent higher than last year.
The Associated Press index of in
dustrial activity declined to 8l.8
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