Evening Star Newspaper, June 29, 1926, Page 21

THE EVENING STAR, WASHINGTO D. C., TUESDAY JUNE 29, 1926. e e e e e e e e e e e e e TRADE ENDING BEST FISCAL YEAR RECORDED IN HISTORY OF U. S. Automobile, Steel and Construction Industries Three Big Factors in Record Set in 1925-26—Seasonal Decline in Activity Expected in Near Future. BY J. C. ROYLE. NEW YORK, June 29.—Industry, ecommerce and trade went through the record books today and chalked up new high figures for all time. The fiscal year, which ends June 30, has heen the most prosperous period ever enjoyed by the United States. The last six months of 1925 showed a volume business which lifted that cal- endar year above any similar period, despite the fact that the first six months of 1925 showed many weak spots. The first six calendar months of 1926 showed continuous gains over sponding period of the pre- tive estimates indi- cate that the assets of the United States of America today are $10,000,- 000,000 higher than they were a year ago. Only a certain portion of these A ts, of course, have been cash. Many of them are nonliquid, but the volume of actual currency made avail able for retail and wholesale purcha has been sufficient to lift the fi vear to heights unprecendented hith | erto. { This does not mean that there were no thin spots in the business fabric. Certain lines of endeavor fi nally to return adequate profits to those enguged in them. Some of the industries alluded to still have a long | way to go before they find themselves | on a sound and satisfactory footing. Unprecendented Production. | The fact remains, however, that | only a few of the basic industries of the country failed to show better- ments when compared with previous | tiscal years. Production in the last half of 1925 rose to remarkable vol- ume. Tt was maintained, with only slight recessions, throughout the first | Unemployment was al- stent except in the e | of the itinerant work some of whom, either voluntarily or involun- 1arily, always are jobless. There ily few labor dis. putes, but those strikes which did take place were exceedingly costly not only to the workers but to employers. In general, wages were extraordl- | narily stable throughout the entire | {ndustrial field. The general hiring | rate for skilled and unskilled labor during the 12 months of the fiscal | vear period was firmly maintained at A level never exceeded since any rec ords have been kept This resulted in & tremendous buving power on the | part of the population and in a mark- | ed increase In the checking and sav- | ings deposits. Total bank clearings increased over 12 per cent Money Was Easy. Money twas easy. Ample funds | were always avallable for the financ- ing of legitimate business projects, for the movement of crops and for the necessary expansion of bullding and The amount of credit ex member banks of the Fed eral Reserve system was greater than tn any other fiscal vear, espécially for agricultural and commercial purposes. The banks at times were at a loss to know just how to dispose of their cash most advantageously. sulted in a firm and steady invest ment security market and permitted business men to take full advantage of opportunities presented. Indica- tions of the huge monetary returns to individuals and corporations alike are to be found in the announcement of Secretary Mellon, made in June, that the volume of income tax receipts has been such that no new Govern- ment. financing was necessary at this time. Tax reductions unquestionably had a thoroughly stimulating effect on many lines of endeavor. Three Big Factors. The three big factors which alded In establishing this record for. busi- ness were the automobile industry, the steel industry and building con- struction. Production of automobiles has been such that automotive engi- neers anticipate a total production of approximately 4,000,000 cars by De- cember 31. Sales in the first six months of 1926 showed that this country still has a tremendous ability to absorb automobiles, but the heavy sales were not made without the most severe kind of compe ority of auto-| thex were spurred by | duc These were hout deleterious effect | increasesin individual | y_efficiency and volume output. Principal passenger car pro- ducers unquestionalby experienced more satisfactory profits in the last «ix months than in the corresponding perfod of 1925, and more cars were produced and sold in this half year than in any full year previous to 1922. This business has been supple- mented by record-breaking sales In the truck division of the industry, which has been running 15 per cent ahead of that of the corresponding period of 1925. Bus demand has been heavier than ever before. Steel prices in general have been remarkably steady throughout the last six months and the fluctuations in the fiscal year have heen within a comparatively narrow range. Pro- duction has been equally steady, and the fiscal year wound up with mills UNITED STATES TIRES AND TUBES Akron Auto Supply Co. Harry S. Chidakel 509-11 7th St. S.W. Main 4996 Bailey’s Auto Supply 14th and Columbia Road Columbia 7236 2250 Sherman Ave. North 9794-W the last year bullding construction has progressed at the rate of over $6,300,000,000 per annum. There have been marked recessions in home building in certain sections, but this has been counterbalanced by the volume_ of construction for business and industrial purposes. Carriers Increase Efficiency. Business could scarcely have pro- gressed as it did had it not been for the remarkable efliclency and activity exhibited by the railroads. After a record-breaking run of six months in profits to the railroad equipment manufacturers. Foreign trade was satisfactory, but little more could be said for it than that. The volume of foreign business was not heavy, and for a time econo- mists worried over the fact that im- ports were exceeding exports. How- ever, this trend was reversed in the last two months. The British strike was not maintained long enough to materially benefit American firms competing with England for foreign markets. The decline in French ex- change and the uncertainty of the in general running at approximately 80 per cent of capacity, which, before the expansion occasioned by the war, would h: a full 100 per cent. the steel trade undoubtedly was the continuity of orders. ceased to be a reliable indicator since transportation facilities made it pos- sible for consumers to buy in small lots for quick delivery. of purchasing kept the mills at a high rate of production and at the same time prevented burdensome stocks. Yor 18 months many experts have been forecasting the end of building construction activity, but the volume progress indicates that the end has not vet It is a bold prophet who wiil offer a prediction as to its arrival of the country The feature of the piling up ‘W. S. Kenworthy & Co. 1617-19 14th St. NW. North 441 M. T. Maloney 1703 6th St. NW, North 7751 1827 Adams Mill Road Col. 10474 Service Tire Co. 1336 14th S. N.W. North 9224 ‘Whalan’s Real Service 2203 Nichols Ave. S.E. Linc. 10469 AUTHORIZED DEALERS IN WASHINGTON the latter part of 1925, the railroads | French financial program was also a for the last six months have averaged | deterrent factor. weekly cer loadings of r 960,000 The trend toward further merging cars, and when final figures are com- | of 'publlc utility concerns continued piled there is small doubt that the to- | vnabated. It undoubtedly was given tal loadings from January 1 to date impetus by the fact that the vings will exceed 25,000,000 car: Net earn- | resulting from the earlier consolida- ings for the carriers in the last six |tions have now commenced to make months have been greater than for |themselves felt. A check was admin- any corresponding period in years. |istered to the trend toward railroad For the first quarter net ope consolidations by the decision affect- revenue of class 1 roads was $223,559 ing the Nickel Plate mer , but the 000, a gain over 1925 of 9 3-10 per cent. | plans for joining a score of other com- Since gross operating revenue gaineq | panies are still in the air. only 3 210 per cent, the efficiency| Loud complaints came from many of the roads was clearly demonstrated. |of the tire manufacturers in the last Buying of railroad equipment since |six months, but in general the fiscal January 1 has also been ahead of the | year was not unsatisfactory for them. corresponding period of 1925, and the | Original equipment sales so far in fiscal year ended with a spurt of [1926 compared favorably with those orders for rails, freight cars and other | of the early part of 1925. Bad weather materials. his assured excellent | held back replacement demand con- UNITED S TATE S United States Tires are under continual test in our laborato- ries and on our road test ve- hicles. Motorcoach tires, for example, are tested under ac- tual service conditions on this United States Rubber Com- pany Test Coach. Question—With 20,000,000 cars running in Amer- ica, does not the experience of users largely take the place of factory tests? Answer—On the contrary. The very fact that motor transportation is so important in the life of every one imposes an additional obligation for searching tests on the tire manufacturer. The makers of United States Tires do not expect their customers to test their tires for them. Question—What does the United States Rubber Company Factory Test include? Answer—Everything from the Tree to the finished Tire. Raw materials are tested before they go into the tires, and the finished tires are tested in the Company’s laboratories and on the Company’s road test cars, commercial service. Question—What do these tests prove? Answer—The material tests insure the quality of ma- terial used. The laboratory and road tests of complete " Question—What dests are made on Steel Wire? Answer—Steel wire is given a chemical analysis to de- termine whether it meets our specifications, and it is also tested for tensile strength and elongation. tires “prove up” the correctness of manufacturing processes. Question—What raw materials are tested? Answer—Cotton cord, which furnishes the strength and flexibility of the tire; rubber, which binds the various parts of the tire together and forms the tread or wear- ing surface; compounding ingredients, which we mix with the rubber to give it the necessary qualities; and, fiwin,whichiausedinmakinsthobudflofm siderably. Toward the end of the fiscal year crude rubber prices. de- clined ‘sharply to a level about 30 cents under the prices of a year ago, without a corresponding decline in the price of tires. Production in the first quarter was heavy, and stocks even now are somewhat burdensome but a more optimistic sentiment now is in evidence. One of the outstanding features of the year was the enormous increa in the sales of electric refrigerators and washing machines, It is esti- mated 175,000 electric refrigerators now are in use in this country. For the first half of 1926 aggregate sales of electrical equipment in general registered an increase of fully 5 per cent over those of the first six months of 1925. Manufacturers of r: ment felt the res fforts of leading companies to stabilize the industry. Sales during the first half year were fully 10 per cent ahead of those for the corresponding period of 1925. Food Producers Prosper. Live stock had a wonderful Winter and the prices of hogs rose steadil going to the highest price in four years. Cattle prices also were such as to yield excellent returns to grow- ers. The packing house trade has just concluded a fairly satisfactory six months. The uncertainty of TIRES A Question—What tests are made on the cord? Answer—Cord going into the manufacture of Web Cord for United States Tires is tested for strength, stretch, size, twist, ply, length of staple, and freedom from im- perfections. Question—What tests are made on Rubber? Answer—Even though the quality and uniformity of Sgrayed Rubber is controlled by the processes used on our plantations in the Far East, every shipment re- ceived at our factories is again tested for uniformity and also, after mixing with sulphur, it is tested for its rate of vulcanization, its tensile strength and stretch. Question—What tests are made of compounding ingredients? trucks and buses. They are also watched in actual Apswer—Compounding ingredients are tested to deter- mine their purity and uniformity. They are practi- cally all in powder form and even the degree of fine- ness to which they have been ground is tested. Question—Are United States Tires tested along- side of other makes? Answer—Yes. These tests are conducted daily in our laboratories and on our road test vehicles. \ Question—What is the object of these competitive tests? in thelr situation. Domestic sales, | result of these trends, conditions however, were good to excellent. were also unsatisfactory in the hide The dalrying industry made rapid [and leather market. Prices slumped strides toward further expansion in |steadily until May, then started to certain sections of the country, and | recover lost ground, and conditions for the nation as a whole returned |were fmproving as the fiscal year | most satisfying results to the farmers | ended. engaged In’it. Furs were in especially active de- Potatoes, being in short supply, especially for the staple brought splendid prices for a time omewhat stronger than and most of the farmers disposed of year Muskrat was the their crops at a fine figure. As Sum- | feature. mer drew on, however, prices dropped | ~ Retail trade was somewhat affected | harply and stocks moved With (by the cold weather of Spring, but difficuity. : the market recovery in the last twos Orchardists and fruit growers en- | months indicated that the buying tered the Summer season with every [had been merely postponed. This prospect of splendid crops. The late | was also shown by the volume of Spring prevented any unusual damage | business reported by the mail order ‘om unexpected frosts. Canners pre- | houses. The leading chain stores pared for an especially active season. | have done a larger business 0ld stocks of canned goods were well | The textile trades still are in a cleaned up and operations were given |state of somewhat acute depression. encouragement by the especially low | This is more apparent in New Eng. price obtaining for suga {1and than in the: South. Some of 3 | the New England companies have Leather Shoes and Furs. | iauidated their assets and gone out Aggregate production of boots and [of business. Others are mioving | shoes in the first half of 1926 was |their plants to the South. Demand smaller than at any corresponding | for goods has been extremely light, | period since 1922. The weather was |and, even in the South, operations an especially potent factor in re- some mills have been cut from stricting demand. Women's shoe: to 40 per cent. Goods prices have sold more readily than men’s foot- | dropped, and, while cotton prices | wear, but the profits of manufacture | have been low, s: actory profits r- | ran slightly lower for the elgn demand was an unsettling factor | than for the first half of 19 have been the exception rather than | the rule among the cotton mills. s Among the searching tests made on United States Tires is the “Tread Wear Test” which duplicates in a few days the effect of many months of service. Questions and Answers that may be News to You — By a Tire Engineer of the United States Rubber Company Answer—To maintain the superiority of our design and construction. Question—Does the fact that a large number of tires of a certain design and construction have given satisfactory service obviate the necessity for further tests on tires of the same kind? Answer—No. Vehicle design and use, and road condi- tions are constantly changing. - Tires that gave ex- cellent satisfaction ten years ago are obsolete today in design and construction. Question—How does the United States Rubber Company %eep abreast of these constantly changing conditions? Answer—It has a corps of factory trained technical ex- perts in different sections of the country, continually checking the service our tires are rendering under actual operating conditions. Question—Do all companies test their tires in this way? Answer—Most all companies make tests of some sort. Very few, if any, carry them to the extent that they are carried by the United States Rubber Company. M@... United States Rubber:Company UNITED STATES ROYAL CORD BALLOON The financial position of the farmer today is better than it was a vear ago, but what the future posi- tion of the agriculturist will be in the next six months is causing con- siderable anxiety in business circles. Profits of the farmer naturally come after harvest, and were collected_for last year before January 1 Tue weather will have the final say as to what those profits will be for 1926. ‘The crop of Winter wheat gives evrey indication of being an excellent one, and at the moment is forecast at 643,000,000 bushels. According to prevailing prices for the active wheat option, this amount would yield $759,700,000, or approximately $100,- 000,000 more than the prospective value of the 1925 crop at this time last year. The outlook for the remainder of the 1926 calendar year is like soma time tables—subject to change on extremely short notice. Production has proceeded at such a fast pace in the last six months that it has somewhat outstripped demand. This would naturally promote a period of hesitation on the part of both manu- facturers and purchasers until orders cateh up with accumulated stocks: It is normal that there should be n seasonal decline in_activity duripg the next three months. This i3 ex- pected by business men. (Copyright. 1926.) 4