Evening star., 1939-02-19
Industry Takes
Irregular Path
During Week
RetoiI Trade Steady,
But Wholesale Orders
Reflect Caution
BY THOMAS E. FLANAGAN,

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer
Business activity was marked by
cross-currents this week.
Retail trade held an even keel
in most sectors, but wholesalers re-
ported buyers in a cautious mood.
Modest declines in electric power
and motor production contrasted
with upturns in carloadings and
steel production.
Analysts said many divisions of
business continued to idle along and
that no pronounced change of pace
was expected until the spring out
look becomes more clearly defined.
Rejecting the slackening of in
dustry at large, the Associated Press
index OF industrial activity slumped
to new low for the year. AS the
week closed it stood at S8.4, COM
pared with o89 the previous week
and 10 in the like week a year ago.
From the peak touched early in
December, this barometer has fallen
6 per cent.
Steel Recovery Is Slow.
A few weeks ago steel trade circles
issued bright predictions on the
lndustry'S behavior for February.
However, the steel operating rate
has edged ahead slowly.
Much hope has been pinned on
the prospects for railroad buying
and steel men still view this out
look optimistically. The Chicago
ana northwestern was a recruit to
the ranks of prospective railroad
customers this week. It's president.
Fred w. Sargent, said the system
was considering buying 900 freight
cars and 10000 tons of steel this
year. In this connection it was
noted the road had more cash in
the till than year ago.
That other railroads had improved
their financial condition in January
was evident from the report of the
Association of American Railroads.
1t showed that 90 class one rail-
roads had estimated operating rev.
enues OF about s25O.OOO.OOO in Jan.
uary. While this was about 500
100000 more than year ago, it was
on the other hand about S26,OOO,OOO
short of January, 1887.
Rail Orders Expected.
Surveying the outlook for railroad
purchases of steel, Iron Age said,
Railroad buying, though still lack
Ing the stimulus of such Govern
ment aid as may ultimately be fur
nlshed, continues to be a promising
prospect"
1t was pointed out that if pending
car and locomotive purchases are
piled on top of recent fairly sizable
rail and accessory orders" the rail-
road participation in steel manu-
featuring schedules of the next few
months will be well above last years
showing
Automobile makers, trade observ-
ers said, have been bidding cau-
tlously for steel, but large orders
Tor spring programs are expected
before long. There was moderate
downswing of motor production this
week. but sales of new passenger cars
in Wayne County, Michigan, Jumped
to 1,l34 from 921 the previous week
and 668 in the like week last year.
Aircraft Plants Busy.
Up toward the top of significant
items on the weeks business ledger
was news from the aircraft industry,
Lockheed Aircraft Corp. of Burbank,
Calf, filed with the Securities Com
mission a registration covering the
intended issuance and sale of COM
mon stock. Proceeds will be used
to finance new equipment to take
care of swelling orders, partly from
foreign countries expanding air
forces.
The Commerce Department re-
ported that Douglas Aircraft will
furnish 100 planes to France at a
cost of about s12,0O000O, and North
American Aviation 200 at S8,OOO,-
900. This, the department said,
brings the backlog of Southern CAL
ifornia aircraft manufacturers up to
S100,0O000O.
Businessmen had the word of
President Roosevelt that they have
nothing to fear in the way of new
and heavier taxes or Federal spend
ing outside budgetary limits.
Statistics Outlined.
Industrial statistics during the
week included:
The American Iron and Steel In
stitute estimated production at 54.8
per cent of capacity, a new high
for the year. This compared with
534 the previous week, SGT a month
ago and 81 per cent in the like 1888
week.
Production of electric power to-
tailed 2,268 ,387 900 kilowatt hours in
the week ended February II, accord
ing to the Edison Electric Institute.
This was slight drop from the
preceding week but 1O5 per cent
higher than the like week last year.
The Association of American Rail-
roads reported carloadings up slight-
ly to 579,918 cars in the week end
ed February II. The total was 6.8
per cent ahead of the like week a
year ago.
Wards Automotive Reports said
production totaled 1880 units, COM
pared with 84,500 in the previous
week and SO 100 in the cOrrespondinp