Evening star., 1940-05-05
Ship Scarcity Faced
As Signs Of Trade
Upturn Appear
Consumers Of Imported
Materials Follow
War News Closely
BY FRANK MacMILLEN.
Associated Press financial Writer.

BY FRANK MacMILLEN,
Associated Press Financial Writer.
NEW YORK, May "A growing
worldwide shipping scarcity COM
plicated the wartime problems Of
business managers today as Ameri.
can industry sprouted signs Of .
late spring upturn.
Merchant marine operators faced
the task Of servicing the United
States own supply lines to distant
sources Of raw materials and i'm.
ported foodstuffs, including rub.
Der and tin from the Far East.
Foreign trade authorities said
shipping would be among the first
to feel the effects of the allied de-
feat in Norway and diversion Of
British ships from the Mediterra-
near to the. longer route around
South Africa.
The possibility the allies may
seize the big Norwegian merchant
marine, the fourth largest, handling
cargo on many routes, forced COM
modify markets and manufacturers
working with imported materials to
consider the meaning of the war
news for home industry.
Rubber Prices Rise.
Rubber, largely imported from
British Malaga and the Dutch East
Indies, sold at the years top prices
in commodity trading today. Rub
ber for immediate delivery was
quoted around 20 cents a pound, a
rise Of about cent the last two
days.
Trade quarters estimated one.
third OF the rubber imported by this
country has been carried by British
bottoms, with American craft
handling cnly about one-fourth.
There was much talk among ship
ping men Of diversion of Norwegian
craft to handle cargo for allied war
needs as result of the additional
strain placed upon the British fleet
by the rerouting of Mediterranean
trade to the longer distances around
Africa.
In highly mixed business picture
at home, full of contrasts caused By
wartime shifts in trade and indus.
trial production, shipping stood out
as one Of the brightest spots.
American shipyards were judged
in line for additional business to
obtain replacements for vessels sold
to foreign interests and to meet the
demand for more sailings to markets
outside the war zones.
Trade Handicapped
Expansion of trade with Latin
America and other countries since
the start of the war emphasized
shipping needs. The Iron Age,
trade publication, reported shortage
OF cargo space was handicapping the
taking of export orders for steel,
estimated to have increased to about
Is per cent of the industry's total
business from per cent previously.
The demand for Yankee merchants
men was indicated in Government
figures showing American shipping
activity at the highest point in 10
years.
| Wall Street markets, generally in
clined to drift until the European
situation and the political future at
home clear, continued this week to
concentrate on the war angles Of
business. Shipping shares were
bought, some rising to the highest
prices Of the year.
Interest ofsthe financial district
In war angles was evident in reports
two banking .syndicates were dicker-
| ing for the purchase of controlling
stock in the Newport News Ship
building & Dry Dock Co. at Newport
News, Va, one of the Nations chief
naval and merchant ship construc.
| ton plants.
Caution Is Apparent.
Despite the decisive events in Nor.
way, with threats of fighting in
the Mediterranean as Italian and
allied fleets concentrated at strategic
points, most wholesale markets
found dealers and consumers OPP
Grating cautiously, except in the
few imported staples Immediately
touched by the shipping problem.
Nevertheless, commodity men
counted the latest turn of the war
as an incentive toward maintenance
OF raw material reserves at higher
levels than usual in peacetimes.
The downtrend of production In
steel, bulWark OF war industry, was
reversed after one of the sharpest
declines in the first four months
this year in history Of the industry,
This weeks steel operating rate rose
to GLIB per cent of capacity from
60 per cent and was greeted in some
financial circles as q trustworthy
sign that the winter and early spring
recession was playing out.
A similar hint was seen in tha
Associated Press index of industrial
activity, which remained UNCHANGED,
on basis OF latest figures from the,
previous week after an almost un-I
interrupted decline from the De-
cember peaks.
Retail trade, feeling the Lift Of
spring merchandise buying, also
raised hope for expansion of factory
schedules later in the year.
Back to its pre-war levels. the
Associated Press industrial index
now stands at 935 per cent of its
ls29-30 base, compared with the
December high around 112 and with
S2 per cent year ago, when a late
spring upswing was getting started.
Private Building Gains. i
Private building, leader Of tho
turn-around a year ago, continued
70 SHOW gains in factory and resi-.
oentlal construction but expansion
In those sectors was more than of.
set by curtailment in Government.
financed projects.
Whether expanding activity In
shipbuilding, aircraft manufacture
ing and miscellaneous lines catering
TO allied war needs would expedite
a general f1lrn tnuo rd }vor~o,,n-.-A