Evening star. [volume], April 03, 1938, Image 55

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
FINANCIAL AND MARKET
TREND OF WEEK
PART FOUR—FINANCIAL AND CLASSIFIED
8fye gfaf
CLASSIFIED ADVERTISING
PAGES THREE TO FOURTEEN
FOURTEEN PAGES.
WASHINGTON, D, C., APRIL 3, 1938.
SHOW
MODERATE LOSSES
ON D. ^EXCHANGE
Both Stocks and Bonds Hold
Comparatively Steady in
First Quarter.
GAS LIGHT 5s PROVE
MOST POPULAR BONDS
Register Drop of Only Half a
Point—Capital Traction 5s
Come Next in Volume.
By EDWARD C. STONE.
Stocks and bonds listed on the
Washington Stock Exchange, although
losing some ground during the first
quarter of 1938, held comparatively
steady and were in excellent demand.
Losses were very much smaller than
on many of the other exchanges. Vol
ume compared favorably with the first
three months of 1937.
In the bond division,- Washington
Gas Light 5s. 1958, were the most
popular issue in the trading, being off
only half a point at the end of the
three-month period, the last sale reg
istering 105. Next in sales volume
came Capital Traction 5s, which
opened the year at 65 and are now
selling at 66, although reaching 70 at
one time this year.
Anacostia & Potomac River R. R.
5s, now at 57. are off three points
from the year's high, city & Sub
urban Railway 5s opened 1938 at 55
and have since advanced to 58. Wash
ington Gas Light 5s. 1960, have been
very strong during the year and are
now quoted at 115. while Washington
Gas 5s. 1958. are commanding 105,
within half a point of the year's best
price. Washington Railway & Electric
4s have remained steady at 107 and
Chevy Chase Club 4',s recorded their
last sale at 104 ',.
blocks Ketain High Figures.
Many stocks, on the exchange are
selling well above par. Potomac Elec
tric Power 6 per cent preferred stock
Is now at 113 and has lost practically
no ground during the present slump.
The same corporation's 5'2 per cent
preferred is higher than In January,
the last sale being made at 112. Capi
tal Transit, the most active utility
stock, sold off during the three months,
dropping from 91, to 7.
Washington Gas Light preferred ad
vanced from 97 to par during the
three months, a small lot selling at 100
in yesterday's trading. There have
been a good many other sales at par.
Washington Gas common has held
at 23. Washington Railway & Electric j
preferred advanced from 109 to 11038
during the first quarter. Railway com
mon recorded one sale at $616.50 a
share during the three months.
National Bank of Washington stock
closed the quarter at 130. Riggs Na
tional Bank common registered 273.
which was lower than at the opening
of 1938. the same bank's preferred
stock moving at 10112 on the last
transfer. The last sale in American
Security & Trust Co. stock was at 240.
also lower than the high point for this
year. Miscellaneous stocks have been
quite active, with varying prices.
Transportation Chief Named.
S. William Miller, treasurer of the
Union Trust Co., has been appointed
chairman of the Transportation
Committee for . the 1938 Convention
of the District
Bankers’ Associa
tion to be held at
Hot Springs. Va..
June 9 to 12.
President Thomas
J. Groom an
nounced yester
day. W. T. Van
doten, vice presi
dent and cashier
Liberty National
Bank, is vice
chairman. The
other members of
the committee in
clude:
S. Wilson Earn
S. William Millrr.
shaw. secretary-treasurer East Wash
ington Savings Bank: Joshua Evans, jr..
vice president Hamilton National:
Edward L. Hillyer, vice president
Union Trust Co.; T. Hunton Leith,
cashier and secretary Security Savings
& Commercial: Richard A. Norris,
assistant cashier Lincoln National: H.
F. Stokes, assistant cashier National
Metropolitan; Norman E. Towson,
assistant treasurer Washington Loan
& Trust Co., and E. Percival Wilson,
secretary National Savings & Trust Co.
Sheik Rejoins Reliance Life.
David M. Stephens, field manager
of the Reliance Life Insurance Co.,
announced yesterday that Russell
Sheik had been reappointed to the
Russell Sheik.
. Washington staff
of his company.
He was formerly
t with the same
| company for sev
i en years, giving
| up his position to
become general
agent of the
Pacific Mutual
Life Insurance
Co., in 1931.
Since 1934 Mr.
Sheik has been
| associated with
I the Thomas P.
Morgan, jr„
agency of the
Mutual Life Insurance Co. of New
York. He has been in the life in
surance business 15 years and received
the chartered life underwriter desig
nation in 1932. '
Easter Buying Is Awaited.
The Commerce Department reported
yesterday that trade during the past
week in the fifth district, except in
Washington and Norfolk, was better
than in the previous week but lower
than last. year. Real Easter buying
is still awaited, the report said.
Trade in Washington was 8 per
cent under the previous week and 12
per cent under the same 1937 week.
Bank clearings totaled $19,355,300,
against $24,436,498 a year ggo. Build
lug permits amounted to $297,750,
compared with $489,250 last year.
There were 5.000 more tourists than in
the previous week. .
i ^ 1
Honors Agent
JAMES A. FULTON,
President of the Home Life
Insurance Co. of New . York,
who conies here tomorrow to
pay tribute to Paul F. Grove,
jr., of the Washington office
who has recently made the
best production record in this
territory. — Underwood &
\ Underwood Photo.
SSI.500 PROFIT
1937 Net Compares With
$2,923,118 Recorded
in Previous Year.
Br the Associated Press.
NEW« YORK. April 2.—Crowell
Publishing Co. reported consolidated
net income of $2,821,500 for 1937,
after charges including Federal surtax,
equal after preferred dividends to
$3 68 a share, compared to $2,923,118
or $3 81 a share in 1936.
Seversky Aircraft.
Seversky Aircraft Corp. reported
net loss of $1,210,516 for 1937 after
depreciation, ordinary taxes, interest
amortization of patents and provision
of $859,132 lor loss on cost to date of
contracts in process. This compares
with 1936 net loss of $70,843
Graham-Paise Motors.
Grahani-Paige Motors Corp. and
subsidiaries today reported net loss
for 1937 of $2,253,485 after taxes, in
terest, depreciation and other deduc
tions, comparing with 1936 net loss
of $4l7Tl45.
J. B. Graham, president, said drastic
economies have been effected since
January 1, 1938.
Continental Oil.
Continental Oil Co. reported 1937
net earnings of $13,948,459 after de
preciation. depletion and taxes, equiv
alent to $2.98 per outstanding share,
best earnings in the company's his
tory. Earnings for 1936 were $9.
612.596. or $2.05 per share. Conti
nental's sales of all refined products
during 1937 were largest in history,
the report said.
Olher Report* l.isled.
Other corporate earnings report* re
. leased during the week showing profits
per common share included
'Year ended December .31.)
1 tt.tr. i tilth.
Aluminum Co j;t.-fh K.tiS
American Rolling Mill .. „. r.i.i •'.7.3
Anaconda Copper _ _ . tt.ttr t.stt
I Bendix Aviation _ _ l .tir i .44
Cannon Mills ___ _ 4
Continental Oil __ -J.sts •; nr,
Curtis Ptb, . __ _____ ’4 iff
General Electric __ ■; 1 l.iVf
I.one Star Cement _ 4.11 ‘.’.titt
Shell Union Oii _____ 1,44 1.57
Tide Water Assoc. Oil ... tl.ittt 1.11
Union Carbide & Carbon __ 4.15 4.OH
•On preferred shares.
-•
METALS NERVOUS
AS SECURITIES DIP
Tin Slumps to Lowest Level in
Five Years—Other Markets
Show No Change.
By the Associated Press.
NEW YORK. April 2.—Weakness in
Wall Street upset the non-ferrous
metal market last week. Tin dropped
to the lowest level in five years, al
though other markets, while unsettled,
showed no actual price change.
There were rumors of resale copper
available at concessions in the do
mestic market, but custom smelters
and producers held to the 10-cent
level. Export copper reacted about
35 points, then partially recovered the
loss. Russian buying of copper at
London, plus an equally good demand
here for Japanese account, the latter
paying premiums in some instances to
obtain nearby metal, were steadying
influences.
Tin reacted over 2'i cents a pound,
with spot dropping to 39 cents a
pound. Weakness of the London mar
ket was accentuated by the failure of
a large Japanese house at Singapore.
The establishment of record low prices
since 1933, however, was followed by
better consumer demand.
Lead remained in doldrums,
holding at 4.50-55 cents a pound, New
York. Zinc was unchanged at 4.25
cents a pound, East St. Louis.
WEATHER VANE AWNINGS.
DAYTON, Ohio, April 2 (Special).—
An awning that is automatically raised
or lowered by means of a photo-elec
tric cell sensitive to sun and rain has
been invented here.
CAPITAL ACTIVITY
HOLDS DP WELL
IN FIRST QUARTER
Retail Trade Maintains High
Levels Despite Moderate
Declines.
•
U. S. PAY ROLL STABLE
IN RECENT MONTHS
Housing Loans Gain—Sales of
New Automobiles Show Pickup
of 70 Per Cent for March.
By DONALD B. HADLEY.
Washington business remained at
high levels in the first 1938 quarter
despite some moderate declines from
1937 records. January and February
department store sales were only 1.9
per cent under the same 1937 months
and were about 13 per cent ahead of
1929 levels. March showed an im
provetnent with the approach of
Easter.
Last year, the city's population
| reached 627,000. compared with 619.
! 000 in 1936, 594,000 in 1935, 560,000
in 1934, 543.000 in 1933 and 492,000
in 1930. As the District of Columbia
itself includes only 69.24 square miles,
much of the growth here has spread
out into adjoining Maryland and Vir
ginia sections of the metropolitan
area.
The entire metropolitan area is
: estimated to have a population of
830,000. all within a 20-mile radius
of downtown Washington.
l!. S. Pay Roll Remains Stable.
The major pay roll, which comes
from the executive branch of the
Federal Government, has been ex
! tremely stable in recent months. The
January total of $19,948,315 for 113,
i 338 persons was only slightly below
the $20,225,313 for 114,398 in De
cember. 1937, and was well above
totals for any of the other previous
six months.
Including other branches in addi
tion to the executive, the total Fed
I cral pay roll is keeping close to $23.
500,000 a month while the total
private pay roll is averaging around
$16,500,000 a month.
The grand total pay roll of both
Government and private business,
$40,000,000 a month, is probably the
chief reason why Washington business
men may be disappointed by setbacks
from time to time, but maintain
: strong confidence in underlying con
ditions.
i
Housing Loans Increase.
After three years of spectacular
building gains, construction slackened
toward the end of 1937 and in Janu
ary of this year, but in February signs
of an upturn appeared and applica
tions for loans under the Federal
Housing Act, indicate the improve
ment will continue in the spring
I months.
Building in the metropolitan area
provided quarters for 27.883 addi
tional families in 1935, 1936 and 1937.
January brought homes for -377 more
families and February added 488.
i These compare with 210 in December
and 617 and 895 in January and Feb
ruary, 1937.
After several months of decline, new
car sales in Washington proper have
turned sharply upward in the- last 30
days. The March total is expected to
rise 70 per cent above the February
volume, although still well below last
! year.
Washington life insurance sales in
January and February totaled $9.
431,000, which was 19 per cent below
j. the record levels of a year agp. During
1937 the average size of policies sold
in the District of Columbia was
$3,357, the highest average in the
United States.
Bank Deposits Mount.
Bank deposits in Washington totaled
$335,523,597.86 on March 7, 1938.
compared with $322,651,855.54 on De
cember 31, 1937 and only $308,972.
682.03 on June 30, 1937, but were still
below the all-time peak of $341,235,
513.26 on March 31, 1937.
Bank clearings in January and Feb
ruary totaled $177,667,363. compared
with $192,754,453 in the 1937 months,
but were well ahead of $165,015,070
in the 1936 period and $130,523,204 in
the 1935 months.
The two months' postal receipts of
$1,129,446 were below the $1,159,402
in the 1937 month- and $1,190,598
in 1936, but were ahead of the 1935
total of $1,036,815 and the 1929 total
of $947,902.45.
Utility Gains Noted.
Utilities continued to show gains in
service durng the first two months of
this year. The number of telephones
climbed to 228,930, a new all-time
record and compared with 216,915 on
the same 1937 date: 178,264 in 1933
and 152.381 in 1929. Daily average
telephone calls in February reached
942,333, against 910,026 in the 1937
month: 708,212 in the 1933 month
and 658,394 in the 1929 month.
Electric power production for the
two months totaled 118,499,906, com
pared with 107,858,205 in the 1937
months and was well above the same
period in any other previous year.
-»
COCOA FUTURES.
NEW YORK. April 2 (4>i.—Cocoa fu
tures closed 3-4 hieher. Sales. 1.032 tons.
May. 5.45; July, 6.47; September. 6.59:
December. 5.56.
Weekly Financial High Lights
By the Associated Press. This week. Prev. week. Year ago.
Brokers’ loans . *542,000 *575,000 $1,092,000
Holdings U. S. securities. 2,564,015 2.564J015 2,430,227
Gold reserve--.-- 9.2UJ08 9,197,203 8,844,400
Rediscounts ... 12,040 9,523 12,007
Bank clearings. 4,505,667 5,186,762 5,762,202
Electric output (kilowatt hours)
week ended March 26. 1,975,239 2,017,653 2,200,143
(Final three ciphers omitted in above.)
Car loadings, week ended March 26.. 572,952 540,332 756,416
Crude oil produced (barrels) _... 3,405,600 3,433,550 3,431,300
Stock sales, N. Y. Stock Exchange_ 7,372,510 6,654,180 7,248,250
Bond sales, N. Y. Stock Exchange.... *47,798,350 $36,770,905 $78,837,000
New financing._ 61,652,500 8,270,500 36,571,000
Federal Reserve ratio_I_ 80.5% 80.5% 80.5%
Steel output rate_ 35.7% 33.7% 90.7%
Call money rate. 1%' 1% 1%
Time money rate. l^-l‘/a% lVi-1^4% 1&%
Commercial paper_......... 1% 1% 1%'
4
STOCKS IMPROVE
Jl TO M OR MORE
AT WEEK’S CLOSE
A. T. & T. Leads Sharp Rally
With Day’s Advance of
41/4 Points.
ALL GROUPS JOIN RISE;
SHORT COVERING HELPS
European Peace Hopes. Steadier
Business Trend and Moves
in Congress Watched.
WHAT STOCKS DID.
. , Sat. Pri.
Advances _ «i4 3; 7
Declines -*7 So
Unchanged _ _ 7 1 117
Total issues 71 l 774
By FREDERICK GARDNER,
Associated Press Financial Writer.
NEW YORK. April 2.—The stock
market swung upward today, extend
ing the rally of Friday by 1 to better
than 4 points and wiping out the mid
week .slump that tumbled leaders to
new lows for the past five years.
The star performer of the brief ses
sion was American Telephone, which
ignored the one-man report of Federal
Communications Commissioner Walker
recommending rate cuts and stricter
governmental regulation. The stock
exhibited a burst of strength that en
abled it to finish with a net gain of
4' i points at 117.
The run-up of this ‘blue chip.”
helped by covering of shorts whose
numbers had grown extensively in the
lengthy market slide, inspired buying
elsewhere and virtually all depart
ments forged to the front.
Bolstering the list was the somewhat
brighter outlook for peace in Europe,
a few faint sigas the recession may be
nearing bottom, revived hopes that
Congress would act quickly to stem the
downward trend of industry and adopt
a program for railroad assistance. Also
mentioned as a factor was talk of
possible acceleration of Federal spend
ing.
Volume Picks Up.
Prices edged forward at the opening,
picked up a little volume on the up
side later and established top marks
around the beginning of the final hour.
Light profit selling near the close re
duced extreme advances moderately.
While sentiment was undoubtedly a
shade more optimistic in the financial
sector, brokers were inclined to at
tribute the recoveries of yesterday and
today largely to speculative operations
based on the ancient market theofy
that markets, after a lengthy setback,
usually retrace a portion of the last
ground even if the main trend is still
downward.
The day's improvement lifted the
Associated Press average of 60 issues
1.2 points to 36 4. This was on top
of an advance of 1.5 the day before,
which was the best upturn since Jan
uary 6. On the week the composite
showed a net gain of .4 of a point, the
first after lour consecutive weekly de
clines. The pace was slow compared
with the preceding Saturday, trans
fers totaling 603.850. against 1.383,370,
w hen pricey were under pressure.
It S. Steel Prominent.
Conspicuous shares on the day's
upswing were U. S. Steel, at 42»„;
Bethlehem. 45'-; Chrysler, 4118; Gen
eral Motors. 28V Westinghouse, 69;
Western Union, 20V Chesapeake &
Ohio, 26'3; Southern Pacific, 11V
General Electric. 31V Anaconda. 25:
American Smelting. 327s: Cerro de
Pasco. 31V Sears Roebuck. 511 -;
Consolidated Edison. 19V U. S. Rub
ber, 25% ; Standard Oil of New Jersey,
43V and Eastman Kodak, 129V
While news of the week w'as far
from bright, marketwise, there were
some indications the slanting trade
line was flattening out.
Extreme weakness of bonds until the
final two sessions contributed much
toward the clouds of pessimism that
enveloped boardrooms. Stocks suffered
their sharpest break on Wednesday,
following the Senate's passage of the
administration's reorganization bill.
Reductions of silver prices here and
abroad, in the wake of the Treasury's
decision to stop buying the w hite metal
from Mexico, w:as a market damper
for a time.
HIGHER EGG PRICES
BELIEVED LIKELY
Bureau Expects Rise in Spring
Months With Decline in
Chicken Quotations.
Egg prices apparently have reached
the usual early year low’ point and
will probably trend upward during the
spring months, says the Bureau of
Agricultural Economics in the poultry
and egg situation report issued today.
Chicken prices, however, are tending
downward and by mid-year may go
below those of 1937.
The bureau points out that some
small declines in egg prices may occur
during the spring, but unless con
sumer incomes fall more than is now
believed likely the general trend of
egg prices Is expected to be upward.
Supplies of ' eggs probably will be
smaller than in 1937 and August 1
storage stocks substantially smaller
than a year earlier. The effect of the
smaller holdings In the last half of the
year will probably raise egg prices
above those of 1937, it was stated.
In contrast, chicken prices are de
clining relative to the average for
corresponding months in other years,
even though supplies of poultry are
rather small, both on farms and In
storage. The drop that has occurred
is attributed at least in part to de
clining consumer incomes.
The bureau said chicken prices are
likely to go below those of 1937, in
the last half of the year "largely be
cause of greater supplies of poultry
expected from this year’s larger
hatch.” The favorable feed situa
tion and present low level in num
bers of laying hens on farms are the
major factors tending toward an in
crease in hatchings this spring.
ft
. Dow Jones Stock Averages
(Registered United r.tgtes Patent Office.)
-JAN- --FEB- -MAR-- -APR——
r—i-f--**—22 - 29 6_n_lg_26 5_12_19_26 2-?_J6_23__30
[INDUSTRIALS^
.H, h H.B. 23 I- ---
130 —J fhrl--130
/ l
120 I---4^ [j----~yt-—-120
118.49
v KEB.3 H|
110-1--' ■— »-—!-1—.1,-1 i --I..1——J-[i-1-1-I— II no
. I \ IV *
100-r-'U-100
was
March 31
Lj-----4_L
The high, low and closing averages of 30 industrial stocks as compiled by Doiv Jones & Co. are
shown above. Extending back for four months, the top of each vertical line represents the
high while the bottom represents the low point of each day. The small intersecting horizontal
line represents the closing average. The high and low averages of each movement are given
on either side of the average lines. Industrials continued their headlong retreat in the first
four days of the week and reached a new low of 98.95 on Thursday. A sharp recovery followed
on Friday and Saturday.
I jjjj t • i * ii i i i i r i I-1—■—i-1 i.
! JAiu\. | railroads]
r lrril feb. x
30 tr,rl-fHir,---30
1 11 l r^r
H.nr rk
i 1 -;"s i..**,
25-^-25
H
20-1-:-1-1-1-L-i-1-1-1--1-1--L 20
. i
. 19 rr,
March jl !
____j_ ;
The Dow Jones averages of 20 railroad stocks are compiled in the same manner. Rails also
slumped early in the week and recovered to close about unchanged.
• . .. • * > i • I 1.1 ,
viui;, I 3,:o puTiLmEsl
_ ^ Vw 1,11
20-ht;>7>7—-—t,y¥*v^yi7i--20
* l.^r rk,>r rk‘»**r|.L I
is:^ lHi I
I n-1:- -5 111., r
15-h—-lur-15
I’M
March 31
-*-J-J-1-_jJ-J__J_!_I_!_ ' til I t 1 I _
Averages of 20 utilities are shown in the third section of the compilation. This group
followed the same course although their week end recovery more than wiped out losses re
corded earlier in the week.
n 3 i
..s'DAILY VOLUMES-T-x-T T-1-T-I-T-1-t 1-1-r5?
4 i •SATURDAYS I |'Ef
= 4--1---45
« . 5
o 3--1 ■ ■■■ • 1 30
« •
z I «c/>
2.......—-21
"iiilHilllirmihifciiiliTi iiiulilx,:ii,uiiiiylHlljrr. , , ‘!i
The volume of shares traded on the stock market for the same period is shown above.
HELD UNLIKELY
Miller-Tydings Price Act Not
Expected to Affect
Buying Much.
Sri'cial Dispatch to The Star.
NEW YORK. April 2 —Price-fixing
laws upder the Miller-Tydings Act,
coming at a time when department
stores were already beset by decreas
ing earnings, should have little effect
on consumer buying habits, according
to Poor's Industry and Investment
Surveys.
“There is a possibility that adher
ence to a rigid price policy will result
in some loss of sales which may go to
other retail channels that could not
hope for the business under a free
pricing policy,” states the analysis.
"However, it is doubtful that a sig
nificant change in consumer buying
will be witnessed, for there will always
be a multitude of ‘free price’ articles
that can be used to attract custom
ers, who will also purchase the fixed
price goods, since they are not avail
able more cheaply elsewhere. Mean
while, the tremendous sales volume
enjoyed by department stores is a
valuable weapon in discouraging pro
ducers from fixing prices when unde
sirable. Quite naturally, a manufac
turer will hesitate in making a de
cision that will affect adversely the
sales of his best customers.
"Should price fixing on any given
line of products prove detrimental,
the industry is still free to handle
‘private brands’, the pricing of which
the department store itself can con
trol. Already there are such examples
as May Department Stores and R. H.
Macy, where nationally advertised
brands selling on a fixed-price basis
are meeting with keen competition
from company products.”
-•--J
NATIONAL INVESTORS
REPORTS ASSETS DOWN
By the Associated Press.
NEW YORK, April 2.—National In
vestors Corp., an investing concern,
reported today net assets’ as of March
31 totaled $12,926,000, equal to $3.99
a share of capital stock, compared
with assets on December 31, 1937, of
$16,022,675, or $4.80 a capital share.
SALES OF MEN’S WEAR
FAR BELOW 1937 MARK
By the Associated Press.
The Commerce Department reports
average daily sales of chain men’s
wear stores were 24.3 per cent lower
in February than in the same month
1 last year.
k
Trading During the Past Week
high, low and closing Dow Jones averages for the past week.
INCOME TAX RECEIPTS
HIT PEAK SINCE 1920
By the Associated Press.
The Treasury's month-end state
ment yesterday showed the largest
March income tax receipts since 1920
and an increase of $2,828,058,112.14
in the gross public debt over March
31. 1937.
March income tax receipts totaled
$723,002,013.12, compared with $700,
272,831.10 in March last year. The
March, 1933, receipts exceeded esti
mates by approximately $23,000,000.
A
CLEARING HOUSE ISSUES
REPORT AT NEW YORK
By the Associated Press.
NEW YORK, April 2 —The weekly
statement of the New York Clearing
House shows:
Total surplus and undivided profits
unchanged at *907,225.800. Total net
demand deposits (average) increased
*19,696,000. Time deposits (average)
increased *3,849,000. Clearings week
ending today *3.380.638.649. Clear
ings week ending March 26—*2,966,
> 191,609.
k -
ADVANCE SCORED
BY RETAIL TRADE
AS EASTER NEARS
Steel and Auto Rates Up
With Rail Loadings.
Power Total Off.
TWENTY LEADING CITIES
REPORT SALES GAINS
Seven Suffer Declines and Others
Show Little Change—Less
Pessimism Expressed.
Bv THOMAS E. FLANAGAN,
A.«\ciated Press Financial Writer.
Business moved ahead gingerly in
the week just ended.
The approach of Easter quickened
the pulse of retail trade. Industry
struck a faster pace In some sectors,
but ft'l back in others
The steel industry felt the effects
of better miscellaneous demand Car
loadings and automobile production
improved. On the other hand, elec
tric power output dropped sharply
from the level a year ago.
For the second consecutive week the
Associated Press index of industrial
activity gained. It rose to 69 3 from
68 8 the previous week and compared
with 105.2 in the like 1937 week.
The Commerce Department said
reports from 35 key cities "lent a
mildly favorable aspect to the Nation s
retail and wholesale trade picture for
the closing days of March."
"There was a rather general up
ward movement In retail turnover
from the previous week. Twenty o!
the reporting cities definitely showed
gains, some of which were pronounced.
Losses were sustained in seven of the
reporting centers while in others there
were no changes of consequence ap
parent."
Comparison Distorted.
Experts explained that comparison
with the corresponding period last
year was distorted by the fact that
Easter came earlier in 1937 than in
1938.
It is of interest to note that the tone
of many of the reports, insofar as
trade outlook is concerned, were less
pessimistic than has been the case
in recent weeks,” the Commerce De
partment said.
• Steel output advanced to 35 7 per
cent of capacity, the American Iron
& Steel Institute estimated. This
compared with 33.7 the previous week,
29 3 a month ago and 90.7 in the cor
responding 1937 week.
Noting the heightened demand for
miscellaneous steel products. Iron Age
•aid the big buyers—the motor, rail
road and construction industries —
were doing little to bolster steel orders.
Trade opinion was that the »cran
steel market had yet given no hint
of a production advance along a broad
front. On the contrary, a drop in
scrap prices in the face of higher
production was seen as indicating both
thin buying at mills and shrinking
export demand.
Construction Lags.
One cloudy spot on the steel horizon
was the failure of heavy’ construction
to brace up as is usual at this time
of year.
Because the steel industry’s welfare
is related closely to the motor in
dustry,' unusual interest attached to
the meagerness of improvement in
motor production and the continued
low rate at which production is run
ning compared with a year ago
Output was 57,500 units, compared
with 56.900 the previous week and
97,710 in the like week last year.
Ward's reported. The slight rise'was
attributed to "advancing volume of
orders coming to the factory."
Freight carloadings gained 8 per
cent to 572.952 in the week ended
March 26. the Association of Ameri
can Railroads reported. The upswing
was aided by a fair gain in shipment
of miscellaneous classes of freight.
However, the total was 24 3 per cent
under the like week a year ago.
A footnote on the constricted fi
nancial condition of the railroad in
dustry was provided by the associa
tion's report on operating income for
the first two months of the year. It
totaled $4,783,395. compared with $77,
659.615 in the like 1937 period.
' Power Output Slumps.
Suffering the deepest year-to-year
cut since early 1933. electricity output
fell under the two-billion kilowatt
hour weekly level for the first time
since July. 1936. For the week ended
March 26 the total was 1.975.239.000
kilowatt hours, a downswing of about
42,400.000 from the previous week and
10.2 per cent under the like 1937
week. An important factor in the de
cline, experts said, was the continued
slow use of power in the central in
dustrial region, the area which nor
mally is the heaviest user.
Further contraction in the demand
for bank credit by business and agri
culture was shown in the week ended
March 23 by reports from Federal Re
serve member thanks in leading cities.
Banking analysts said the steady de
cline reflected mainly liquidation of
borrowings contracted a year ago to
step up inventories.
Shares on the New York Stock Ex
change toppled to the lowest levels
since the spring of 1933, but recovered
somewhat at the end of the week.
Grains, cotton and other commodities
were marked down on the average.
In New York, the Nation's largest
trade center, conditions were “dis
tinctly discouraging,” the Commerce
Department reported.
Along the wholesale front it was
reported the bulk of ordering in Easter
apparel was for lower priced goods.
Strongest demand came from the agri
cultural South. The Pacific Coast
and industrial centers of the Midwest
bought sparingly.
■
INDOOR GAMES POPULAR.
NEW YORK, April 2 (Special).—
Home-loving Americans last year paid
$30,000,000 for indoor games, or about
$1 a family. Sales of such games as
ping pong, mah jong and monopoly
have tripled since 1900, according to
recent estlmatea.