Evening Star Newspaper, December 31, 1926, Page 24

{MOST PRODUCTS BRING . PRODUCERS GOOD PROFIT Farm Implement Sales Better and Tex- tiles Find Somewhat Readier Market. Auto Trade Is Spotty. BY J. C. ROYL garment | tow ployers, distributors i no more po eir operations the cloth of business the yarns which the tes have supplied for woof. On the strength or weakness of the commodities depend: bric which will cove tes during the comir owing surveys of the of hasic commodity mar | cates the dependence on the individuva tory, tained a The majo ated at capacity greater part of the ye they were unable to keep demand at certain periods This was due in large t to the multiple air mail routes established, the introduction of night flying on these routes, and the success of freight and passenger transportation services in various sections. Public _interest was stimulated by the breaking of previous speed rec- ords and by long distance flights in various parts of the world. The polar exploits of flyers was not least among the factors tending to build up the industry. Many manufactur- ers now are planning factory addi- tions and betterments, and more than one of the big automobile makers are prepared on short notice to turn lheir equipment to the production of air- plane engines and parts. mao ories were oughout Sper- the | 01 AGRICULTURAL EQUIPMENT Domestic sales of farm implement manufacturers were about 20 per cent larger in 1926 than in 1925 and foreign sales rose more than 15 per cent. In consequence, earnings of most manufacturers in this line were the best reported since 1920. The de- mand for combines and tractors was the feature of the year. It is esti- mated 10,000 of the former were sold this season in Texas, Oklahoma, Col- orado and Kansas. The slump in cotton and the un- favorable weather which existed in £ome parts of the Middle West in the Fall cut sales somewhat, but not enough to endanger the fina results of the earlier months. Tne outlook for 1927, however, is by no means &0 bright. AUTOMOBILES Spotty is the only possible descrip- tion of the automoblle year. Some companies made the most wonderful profits they have ever had and kept operations at almost 100 per cent of capacity during the whole period. Others found competition stiffer than in the past and curtailed production sharply in the last quarter. For these, profits were well below 1hose . of 1925 and, indede, for the industry us a whole net returns wera scarcely s large as for the previous record- reaking year. For the first 10 months of the year output was about 10 per cent heavier than for the corresponding period in 1925. For the whole year it is esti- mated that passenger car production in the United States and Canada ran up around 4,000,000 units. The output would have been higher, but for drastic curtailment by one of the chief producers who in the past has accounted for more than 40 per cent of the total output of the Unit:d Btates. Exports to foreign countries fell off, being some 20,000 cars less than in the previous year. Eye appeal was specially stressed during the year and paint became an important selling factor. Models were littie anged an basic essentials, the alterations be. ing in most cases in the nature of refinements. A real demand was re- vealed, however, for light cars of the “big” type, with low gasoline con- sumption. As in the past, a tremen- dous percentage of sales was made on part payment basis. The decline in demand at the close of the year was attributed largely to the less favorable situation of the farmers in parts of the South and Middle West. Price cuts were made freely by many producers during the year, but the greater efficiency of pro- duction counterbalanced the price de- clines. Improvement was indicated in December and the outlook for 1927 among the leading companles was considered bright. One feature of the year was the progress of General Motors, which had the best period so far in its history. There was a dis. tinct trend, however, toward consoli- dation of some of the weaker com- panies to cut costs as the year closed, Motor trucks and busses tightened thelr hold on freight and passenger short-haul transportation during the year. Preliminary figures now avail- | able Indicate that production will ex ceed that of 1925, when slightly more than 500,000 trucks and busses were produced in the United States and tanada and over 478,000 were made in the United States alone. Production for the first 10 months , of 1925 in Canada and the United Btates totaled 458,180, of which 385,880 were made in the United States. Sales Degan to fall off in the last quarter of the year, and production was cut down accordingly, but throughout th. Jarger part of the twelvemonth manu- facturers made fine profits and their Dalances on the right side of the led- ger for the entire yvear in most cases ‘were superior to those of the previous year. BRICK Careful estimates of consumptive demand, more economical manage- Juent and the heavy volume of build- ing construction combined to give brick manufacturers a satisfactory it 20t & record-breaking year. Face brick were turned out in excess of 300,- 000,000 units. . These factors combined to make up the difference in the prices obtained for ordinary building brick, which javeraged $13.93 a thousand for the first three quarters of the year, as compared with $14.01 for the preced- ing 12 months. CANDY It required more candy than ever before to fill the sweet tooth of the pmerican people. Competition. how- ever, was cxtromely brisk, and, as a result the 1 of the confectionery would ten t of these rice of suzar, profits n most instances were exccllent, with r volume of business main vight up to date. ven the | in sugar prices after | November 1 did not tend to diminish | profit Some makers of package | andies made remarkable successes, although others found the market overstocked with this variety of con d to cut id of the | fections. CANNED GOODS anners and preservers had their uy d downs in various sections of e country, but taking the industry a whole they had a ye: ich as ost of them dream of. ‘Demand was ant e season overburdensome large and m anized by rad pes, wn with not of Fruits were nd came i prices enough uni, to afford a wider were in abundance, anner those of las " of profit margins. Some vegetable crops were in short supply in isolated sections, but this was not a gen trend, except in the pickle industr The trade staggered somewhat under the terrific production of sweet potatoes and under the load of dried and pre ved fruits which huge crops and bad marketing threw into dryers' and preservers’ hands. CEMENT Highly competitive conditi tained in the cement industry thre out the year, due largely to the tre- mendous increase in plant capacity which has taken place since the huge building demand has been in progress. There is little doubt that when the fig- ures for the year are totaled a pro- duction of some 166,650,000 barrels will be shown. This compares with 161,160,000 barrels in 1925, Sales of some companies have been 20 per cent in excess of those of last year, but net profits have shown only minor increases. Stocks on hand showed no tremendous increase, how- ever, and the future of the industr in the early months of 1927 is regard- ed as bright. Prices were uniformly below those of 1925, the difference being about 10 cents a barrel at the plants. CLOTHING It was well for the apparel trades that there was a decidodr;?nprovtmem in the last half of the year. Sales in the early part of 1926 were extremely limited, but after a slow start the Fall and Winter merchandising developed rapidly and trade assumed larger pro- portions than in the corresponding pe- riod of 1925. In addition, buying for the Spring season of 1927 took on size- able proportions before the end of the year. Except in some sections of the Mid- west and in the South, where agricul- tural conditions were somewhat un- favorable, there was a sharp retail clothing demand. This was stimu- lated by slightly lower prices, estab- lished in accord with the lower trend in raw cotton, wool and silk prices. In spite of this activity, results for the full year for many manufacturers will be little if any better than in 1925, although the returns in the last half year have been better than in the corresponding period of last year. Unfavorable weather conditions af- fected trade in the Spring and Sum- mer. Consumers made their Fall and Winter garments do, instead of pur- chasing new apparel for Spring and Summer. Consequently they entered the late Fall and Winter with badly depleted wardrobes and purchase of new garments became necessary. This trend was more noticeable in men's clothing than in women's wear. Manufacturers of men’s fine quality suits and overcoats have found late trade gratifying and the retailer re- sponse to Spring offerings has been satisfactory. Women's wear also showed improvement, especially for coats. Dress sales have been heavy recently, and there has been a notable revival of demand for women’s neck- wear. Labor disputes were not a dominant factor during the year. COAL Soft coal fluctuated widely during 1926, but the industry as a whole had a better year than in 1925. It is not out of the woods and its future re- mains one of the business problems of the countr When the anthracite strike was tled last February that end of the industry got back to work and has plowed steadily along ever since, producing between 8,000,000 and 9,000,000 t a month. How- ever, the stri undoubtedly da aged some markets, and prices July were under the level of 1925. Bituminous coal was at a high level of production and prices during the first two months of the year. For | four months thereafter productio eased off, but not to the 1925 mark. Prices fell sharply. Then came the British strike, with heavy demand for American fuel. Mines started up that had been closed for months and even years. Miners who had been working but a few hours a week went on full time. Prices shot up as high as $11.50 a ton at Boston. The main benefit came to mines within reaching distance of Atlantic ports, and ope in some of these sections voluntarily raised wages te or above the Jucksonville scale. Since the tern mine output went abroad Midwest from the heavy demand for lake shipments to the Northwest, which geregated more than 22,000,000 ton Stll further West the situation of both miners and operators was un- imnroved When the British miners straggled back to work soft coal prices began to drop and miners in some proper ties were notified that the high wage level could mot be maintained. Yet the shortage in Europe was such as to keep the price from sharp and udden drops. Production was main- ained in November around 13,700,000 tons a week, or 4,700,000 tons above n 1 doraestic requirements. ns Co Brazillan growers sold far more cof- fee to the United States than in 1925, | but they disposed of it at a_somewhat {lower level of Restrictive | measures and Rio de Ja | neiro were not effective. 1In the first I nine months of the year 1,082,000,000 |pounds of coffee were imported, a monthly average of 12 00 pounds. | This compares with a' monthly aver trade was to.. . mergers and amalga- 1ge for 19: 10,000 pound: Prices for No. 7 grades producers benefited | in 1925 averaged 20.37 cents a pound for the year. For the first three quarters of 1926 the average was 18.92 cents. The feature of the coffee year was the great increase in pro- duction and cultivation in Colombia. COTTON GOODS The worst of the perlod of depres- sion in the cotton goods industry was passed a year ago, but the improve- ment in 1926 was not of great pro- portions. None the less, more mills raduated from the red to the black side of the ledger than in 1925, and leaders in the industry are con- fident that more marked improve- ment s near at hand. Production was at a higher rate than in the previous vear. For the first nine months billings—which in veality. represent production, since oods are Dbilled as completed— v ited to 723,100,000 yards, as compared _with hout 709,000,000 vards fot the corresponding period of | 14 When the break came in the raw cotton market it appeared that mills would close the year on a high de- gree of activity, but the slump un- settled the goods market, causing many buyers to hold off in hope of even further price reductions. Some mills worked production to a high per of capacity in the third quarter and as prices stabilized near the end of the year buyers increased fabric purchases both for prompt and future shipment. Stocks are smaller than for a long time. The Southern manufacturers did better than those of New England, ind the gradual growth of the in- lustry in the South continued. But ¢hile some companies made good rrofits, the cotton textile situation in zeneral continued to be a dark spot on the business horizon. DAIRY PRODUCTS Dalry farming played life-saver to the farmer who got poor prices for his crops, as some of them did in The year's production of dairy products was slightly higher than in the previous 12 months. At certain intervals there was an actual short- ze of fluid milk, which would pass s tests in some KEastern was a decided reduction in butter storage, due to an unexpected decline in Midwest cream production in the Fall. The increase in the tariff on butter to 12 cents a pound has caused considerable Canadian cream to_he shipped into the United States. Milk and cream were ship- ved longer distances to market than ever before by use of new and im- proved equipment and by co-opera- tion of producers. On the Pacific slope they now are planning to in- vade Eastern markets by means of tank shipments in refrigerator ships. Despite the tariff, considerable Dan- ish, New Zealand, Swedish and Siberian butter came into this/ country. Consumption of ice cream did little more than keep pace’with increase in population, owing to unfavorable weather in the early Summer months. Prices obtalned for dairy products by producers were in the main satisfac- tory. DRUGS AND CHEMICALS Industrial chemical manufacturers made profits approximately 25 per cent larger in 1926 than in 1925. In fact, seven companies reporting for the first three quarters of the year showed a’ combined gain of 27.5 per cent. This reflected the high rate of industrial actlvity all over the country. Sulphuric acid, one of the most widely used chemicals, advanced 5 cents over the 1925 price level in the latter part of the year, and scores of new plants were built or projected. Sulphur prices, both domestic and ex- port, were high and showed no signs of weakness. Demand continued right up to the close of this month and it was necessary to curtafl ex- ports somewhat. Profits for some sulphur companies ranged from 50 o 115 per cent. Soda ash prices were steady through- out the year at 1925 levels, while sul- phate of ammonia fell off sharply, as did fish scrap, also used in fertilizer. Potash prices advanced along with ocean freight rates, but still remained under the 1914 level. Phosphates were strong, but Chilean nitrates found sharp opposition in the syn- thetic German product. Fertlizer companies were helped by advancing prices, and sales during the 1925-6 season were excellent, but thelr situ- ation has been complicated by the probability of a curtailment of cotton acreage in 1927, Industrial alcohol, after a disas- trous drop earlier in the year, due to the huge Cuban sugar crop and con- sequent high production of black strap molasses, from which much al- cohol s made, recovered some ground as the year drew to a close. When cold weather brought non-freeze mix- tures into demand, it was necessary to draw on reserve stocks. Nitrate of soda was well under the 1925 price range most of the time, but glycerin prices were very strong, owing to steady increase in the use of explo- sives for industrial, agricultural and road building purposes. DRY GOOD othing so convincingly illustrated the enormous buying power of the country In the past year as the trend of retail dry goods sales. These anged from 5 to 15 per cent higher in 1926 than fn 1925 for most mer- chants. The profits closely followed the sales advance and dry goods had one of the most prosperous years in the history of the count The mail order houses excelled all former year's records, despite the check to trade which conditions in some cf the agricultural sections ex- erted. Sales of the more prominent mail order houses approximated $490,- 000,000 for the year. Chain stores, with the exception of those handling shoes, reported gains of as high as 5 per cent. Department stores sales | eded those of last year con- sistently, according to flgures com piled by Government agencles cov- ering 500 stores. Buying of electrical goods of all types held up remarkably throughout the entire year. Bookings by the larger manufacture were the rgest on recd and earnings com- red more than favorably with pre- vious years. Perhaps the outstanding feature of the year was the development of ele tric’ refrigeration systems. Electri refrigerator sales were about four times as heavy as in 1925. But many additional manufacturers entered this field and a period of intensive com. | petition is undoubtedly at hand. In | spite of this trend, which has had the |effect of cutting profit margins, the prospect for the well managed, ade- | quately financed companies is excel- |tent.” Manufacturers of household clectrical ejuipment registered heavy les. The demand for heavy electri- cal - equipment was exceptional, fol- i FRIDAY, DECEMBER 31, 1926, 926 Business in Principal Commodities and Industries of United States in Review Index Numbers Based on fiqures of N.Y. Annalist L) X R eReSe¥ MONTHLY INDEX OF COMMODITY PRICES FOR 1926 iy sales have aggregated £00,000,000 units during the year, of which 300, 000,000 went fnto household and indus. 1 use. The cut in prices, put into effcct last Fall, brought costs to con- sumers to 44 per cent below pre-war levels. FLOUR Flour production was maintained 2 heavier rate than in 1925, when 160,000 els were produced, the monthly average being approximately 9,500,000 barrels as against 8,850,000 Prices were on a lower scale than in the previous year, but wheat wr cheaper, 8o that the manufacturers in most Instances showed excellent profits. FRUIT The fruit crops of the United States were enormous in 1 and many growers piled up splendid profits. The apple yield amounted to about 265,000,000 bushels, and part of this was left to rot because it did not pay farmers to pick it. A similar condi- tlon existed in regard to peache which exceeded the 1925 crop by near ly 22,000,000 bushels: with ar output of 25,270,000 bu a gain @ 6,000,000, and grapes, hich als showed a tremendous gain. California alone produced and shipped out of the State nearly a million tons of grapes. The watermelon crop was heavy and some markets were glutted. Lemon growers were faced with disadvan- tageous weather early in the year, but secured good profits. Some orange growers did well. The berry growers prospered and producers of dried fruits found broadening markets. Rai- sins and prunes were profitable, The outlook for the orange and grapefruit crops is not particularly bright, since the California production is apparently sure to be heavy. Flor- ida will produce 15,000,000 or more boxes of oranges, and the Louisiana and Texas citrus groves will add ma- terially to the total. I FURNITURE I Fashions in furniture had much to do with the prosperous year which is just being concluded for furniture manufacturers. The volume of home building was not so heavy as in 1925, but the demand for household furni. ture was fully as strong. This trend was fostered by the spreading applica- tion of installment selng, which was a feature of the year. Office furniture has been in con- stant demand, as was to be expected during a period of high business activ- ity and prosperity. All in all, the manufacturers had a most satisfac- tory twelvemonth, with factories work- ing at a good rate, especially in the sections near hardwood supplies, such as Michigan and Louisiana. Fashion stood solidly behind the fur market during the year, and in conse- quence trappers, deaters, furriers and retailers had a most prosperous sea- son. The prices for pelts at the lead- ing auctions of the year ran higher than for the corresponding periods of 925, and supplies were adequate un- der the stimulus of steady, satisfac- tory quotations. The skins of domestic animals came in for more than their usual share of profit, there being a special demand for baby lamb and baby calf. The short-haired pelts were in the fore- front, with good sales of such furs as broadtail, caracul, kolinsky, mole, squirrel, rabbit and muskrat. Of course mink, sable, ermine and chin- chilla continued to command splendid figures, as did Government sealskins. Cat, rat, skunk, raccoon, opossum and others were In steady demand. So keen was competition for advan- tageous trapping grounds that the struggle developed into a pitched bat- tle betweer! rival factions in the musk- rat swamps of Louisiana, which was settled only by the purchase and lease of exclusive rights to certain territory by one faction for some $800,000. A fur exchange similar to the organiza- tions which hold auctions in St. Louis and New York was organized in New Orleans. at HARDWARE The tremendous volume of bullding construction in the last year kept de- mand for hardware at a high pitch This was especially true of plumbers® and steam fitters’ supplies. Prices were strong and steady, but costs of materials to manufacturers were high. The farming communities bought freely during the first three quarters, but agricultural sales fell off late in the year, as was natural. All in all it was a fine year for the hardware trade. | HATS l “elt hat manufacturers had an ex- cellent year, although the prices of raw material showed the effect of y. The vogue for women's felt ats was a feature and the materials employed in the fur felts rose in price. The late Spring militated against the straw hat trade, but the volume of wles when demand did materialize was well maintained, with less nec sity for bargain offerings to clear stocks than usual. The Winter resort season exerted a favorable influence from October on. | HIDES AND LEATHER l Hide and leather companies suffered luring the first half vear from tk tremely backward demand for sho In the Fall months the sharp rise in shoe production resulted in better prices, but in the last two months of ear shoemakers were cautious about placing orders, and some reces- slon took place in upper leathers. On the other hand, sole and offal leathers remained exceedingly strong, since production in these lines cannot be rapldly increased. The Fall demand from the shoe industry therefore re- lowing the trend of expansion In the power generating field. Bleetrie lamp duced stocks and left the sole leather men in a strong statistical position, with amounts on hand about 30 to 40 nt lower than a year ago. vy cattle hides rose over 40 per cent during the Fall, but dropped ack at the beginning of Winter. ome manufacturers of upper leather did very poorly in the first nine months, while makers of novelty kid leathers reported splendid profits, On the whole the industry had a poorer year than in 1925. I GLASS | Nineteen twenty-six was a year of nsion in the glass Industry. This nd was fostered by the splendid de- mand for plate glass for automobiles and_building purposes, the c window glass and the huge glass bottles and containers us the soft drink and preserving trade. Plate glass sales were aided by dis- covery that % Inch thick plate glass could be produced as cheaply as 1 inch. This stimulated demand for plate in dwellings, since it obviated necessity for speclal window frames and weights. The trend toward closed automobiles caused a big increase in plate glass d. The number of workers em- ployed in the industry was consistent- ly greater than in 1 Production of electric light bulbs totaled more than 300,000,000 during the year. Lowering of prices stimulated lamp sales. Stability was the watchword of the lumber industry in 1926. De- mand W fairly constant owing to the volume of building construc- tion, and prices were well main- tained at or about the same levels as in 19 This was made possible ul estimates of demand and restriction of output. At some times production ran up, but the heads of the industry were quick to advocate a check such tendencies. The hurricane in the Southeast in the Fall accounted for an additional lumber demand, but foreign shipments were not particularly heavy. During the first three quarters of the year 10,263,600,000 feet of yellow pine, Western pine and Douglas fir were produced. In the last three months, when building slackened a trifle, this rate was reduced slightly. The entire 1 production of these softwoods was about 14,022,000,000 feet. Hardwoods were in fine demand and some large stands of hardwood timber changed hands at high prices during the year. Railroad maintenance ac counted for a large amount of general lumber consumption. FERROUS METALS Some of the companies engaged in production of non-ferrous metals had a good year, but for many of them re- s were only fair. Consumption of ¢ all the metals was heavy, but production of some was of sufficient volume to hold prices down. . Copper fluctuated through a fairly narrow range above and below 14 cents a pound. In the early part of the year many producers did well, but foreign consumption was checked by economic conditions, such as the Brit- ish coal strike. The drop in silver hurt those who depend on the silver content of their ores to pay certain extraction charges. The Copper Ex- port Association did not get get into full stride, and the check to building and automobile production lessened demand at the year end. Lead and zine prices dropped from last January to nearly midyear under heavy production. Then prices recov- ered and turned upward, only to drop again in the late Fall. Supplies of tin were short during much of the year, and with the auto- mobile trade, the tinplate mills and building construction consuming at a high rate, prices went high. Demand fell off during the Fall. Aluminum business was of fine pro- portions in the first part of the year. Later business fell off, influenced by reports of price cutting abroad, which, with heavy stocks on hand, led con- sumers to hope for lower prices. The vogue for platinum in jewelry continued unabated. Prices for latter metal fluctuated between $108 and $118 an ounce during the year. Gold, of course, is not subject to fluctuation, and gold mining activities fell off even from 1925 levels. The fashlon for emeralds and sapphires sent those gems up in price, and rubies and pearls also were in blg demand. Diamond prices were well stabilized. PACKING HOUSE PRODUCTS A number of the packing house | companies found their 1926 profits be- low those of the preceding year. This was due to a number of causes. Some lost heavily because of a price war in- volving their Argentine plants and the London markets Hog supplies have been limited, first by bad weather and later by hog chol- era, and prices have been high. De- mand for pork products has not been particularly brisk. Export business in these lines has heen poor. In addi- tion, owing to the amount of corn avaflable, the hogs sent to market have been exceedingly heavy in weight, producing much lard. Lard has been affected by the sharp drop in cottonseed ofl prices. PAINT The paint industry had a highly atisfactory e, with profits for the rger produ At a higher level than n 1 les were aided by a num- ber factors, chief among which were the heavy volume of building, the e production of automobiles and farm machinery units and the active market for by-products result- ing from paint manufacture. PAPER Paper manufacturers enjoyed a most prosperous year. Production for the indusiry ran about 10 per cent heavier than in 1925 and prices were far more stable. e favorable trend was felt in practically all grades of paper, but the writing paper sections reporfed poorest results. News print, on the other hand, ex- panded extensively. The combined v production of Canadian and Ameri- can mills during the year closely ap- proximated 3,400,000 tons. The petroleum Industry in general had the most prosperous year in its history. Profits or the larger and more important oil companies ex- ceeded those of 1925 by approximately 20 per cent. Production was of record- breaking proportions, and so was con sumption. The technical position of the commodity was stronger at the close of the year than at the end of 1925. That technical position, however, was weakened somewhat by heavy output during the last quarter of the year, when daily production ran as high as 2,300,000 barrels. This, with seasonal decline in gasoline de- mand, resulted in price cuts for both crude and refined products, but the markets were not disorganized and the future of the industry is bright for the Spring of 1927. POTATOES The potato crop approximated 360, 20,000 bushels in 1926, or almost halfway between the extremely small crop of 1925 and the average pro- duction of the last 5 years. The Guality of the tubers was not es- pecially good, since frost and blight damage was fairly hea: The acre- agp was small but the crop yield per acre, 112.7 bushels, was high, due largely to improved seed. The sweet potato crop was an enor- mous one, aggregating 84,346,000 bushels, a gain of 22,000,000 bushels over the 1925 yield. This heavy pro- duction resulted in lower prices but aggregate returns were high. RADIO Radio sales in 1926 approximated $550,000,000. This was a gain of be- tween $75,000,000 and $100,000,000 as compared with 1925. In the first months of the year the industry suf- fered from overproduction and from severe competition by a tremendous number of new companies. The poorly financed companies were finally shaken out to a considerable extent. New and improved equipment, ex- tensive advertising, low prices, lib- eral trade-in and flnancing policies, and better broadcasting served to stimulate sales. The heavy expense for plant expansion and development of new models has militated against net income for some companies, and profits in general for the year will not show so great an increase as did gross sales. RAILROAD EQUIPMENT l The railroad equipment industry re- flected accurately the conditions at- tending the greatest year American railroads ever had. The -carriers spend around $875,000,000 for improver ments and new equipment, but their efficiency made replacement of a large number of freight cars unnecessary. Buying of locomotives went on steadily and one of the features of the twelve-month was the develop- ment of the high-powered electric locomotive for handling freight. The locomotive manufacturers closed the year with practically double the un- filled orders carried a year ago, and this would seem to assure them con- tinued activity well into 1927. Freight car production has been at a rate of only about 33 1-3 per cent of capacity. Signal and accessory manu- facturers had a splendid year, many establishing new earning records. Un- filled freight car orders,are heavier than they were a year ago by 5,000 to 10,000 cars. Purchases of repair and replacement parts have been excellent. Strong competition marked the prog- ress of the rayon industry In the last year. This came from forelgn as well as domestic manufacturers. Produe- tion was the highest ever established, exceeding that of 1925 by approxi- mately 20 per cent. But the level of prices was lower, and this cut down the margin of profit of the manufac- turers, who, none the less, had a fine year in most instances. Profits were helped by lower prices for cotton linters and ammonia, both used in rayon production. Total production for the vear Is placed at about 64,000,000 pounds, as against 62,250,000 pounds last year. Prices were reduced an average of about 35 cents a pound in July and suffered another sharp cut late in November. RICE Rice production gained remarkably during the year, owing to the in- creased acreage in California, Loulsi- ana and Texas. The crop aggregated 40,810,000 bushels, as compared with 34,300,000 in 1925. Prices as the year drew to a close ‘were above those for the lata months of 1925. California acreage jumped nearly 50 per cent. RUBBER Crude rubber prices marched briskly down the steps In the first six months of 1926, from near the dollar mark to the 40 cent level or below. They hovered around the latter mark during the remainder of the year. The cause of this was the decreased American consumption. Despite the huge new automobile production in the first half year and the normal re. placement demand, consumption by American tire and rubber mfinufac- turers was some 20,000 tons lighter than in 1925, when 382,000 tons were used. Expected consumption at the beginning of the year was placed at 420,000 tans. The drop was attributed to the use of reclaimed rubber, which was used in a ratio to crude of more than 40 per cent. Despite the drop in crude rubber prices, it is expected that when full returns are avallable profits of tire manufactugers for the year will prove slightly less than those of the pre- vious twelvemonth. There were three price cuts which contributed to this, a 10 per cent cut having been an- nounced in Febrmary, ons of 12 per cent in July and one of 11% per cent in November, These practically wiped out the advances made in 1925. The lntest cut was made to stimulate re-. placement demand. Shoe manufacturers had an uneven year, but they were down more often than they were up. The inclement weather had a depressing effect on re. tal demand in the first half year, and trade conditions were poor. Husiness started to revive in July, but retatlers were hesitant about placing orders. In August, September and October, however, dealers had to replenish their badly depleted stocks, and manufac turers were working on a capacity basis. Although the heaviest part of the season’s runs was completed in vember, the activities of f. the last two months compare ably with those of 1925 e bur of activity averted any acute disaster to the industry, but in only a moder- ate number of cases was it sufficient to raise profits above those of women’s novelty footwear, many of whom had a splendid year. SILK facture. The hoslery producers did splendidly, aided by the wide varie of shades which this year’s fashioi compelled dealers to keep, and by the continued vogue for short skir The knit goods trades also made satisfac- tory progress, but the tide of profits turned outward in the case of some broad silk manufacturers. The first six months of the year were disappointing to manufacturers because of strong buyer resistance to prices, The situation bettered ma- terially in the third quarter, but was complicated later by the sharp drop in cotton and cotton goods value and the slump in raw silk prices. This curtailed buying, since purchasers hoped to benefit by further reductions. The outlook for the Spring trade, how- ever, is regarded as brighter than a year ago. 5 STEEL Steel companies in the aggrezate earned around 30 per cent more in 1926 than in 1925. Prices have been lower than last year, but production established a new high record and the steadiness of operating schedules and increase in worker efficlency made economical operation not only pos- sible but the rule. Consumption remained heavy throughout. The bulk of orders was large, but the orders themselves were small and for immediate delivery in many cases. This disposed of the bugaboo of ‘“back log.” Prices rose in some products with the advance In bituminous coal, but dropped again when coal slumped from its price peak near the end of the year. Producers have enough business in sight to in- sure against any drastic curtailment in the early months of 1927. There was a decline in demand for structural steel and automobile sheets in the Fall, but the slack was taken up by increased demand for other products. In the first three quarters of the year production ran 10.7 per cent ahead of that of the correspond- ing period of 1925, and was on a basis of around 85 per cent of rated capacity. The huge Cuban sugar crop of 1925-26, totaling approximately 5,000,- 000 tons, together with a fairly heavy production of beet sugars abroad, hung over the sugar market during the early part of the year and kept prices down to a low level despite tremendous consumption. Conditions began to improve somewhat after mid- year. Demand for canning and pre- serving purposes was huge, owing to the fruit crops. The per capital con- sumption showed an increase. This fact, with Cuban shipping re- strictions and the absorption of heavy stocks, served to harden prices, but it was not until announcement that Cuban production would be limited in 1927 to 4,500,000 tons, or 500,000 less than the crop was expected to yield, that prices really responded. Both raw and refined sugars shot upward to levels about 25 per cent above the year's low. Imports of tea into the United States fell off a trifle from the 101, 040,000-pound total of 1925. The im- ports this year are expected to run about 500.000 pounds less when final figures are assembled. The increase in consumption did not amount to as much as the increase in population. but prices were approximately a half a cent a pound higher than in th previous year. TEA TOBACCO There was a sharp demarcation he- tween the grower and the manu- facturer when results for the year in the tobacco industry were totaled up. The grower had a bad year. Leaf tobacco prices wound up 20 to 30 per cent lower than in 1925. This Is chargeable to the refusal of growers to curtail production, and to in- efficient marketing efforts. Consump- tion “increased ant the crop was smaller than last year but thers was pressure of unsold stocks from for- mer years. For the sixth successive year clgarette consumption gained, the in- crease being about 12 per cent above the total for 1925, when 80 hillions of the paper-covered cylinders were sold. The three leading producers of popu- lav priced blended cigarettes closed the vear with earningssat new high levels, owing to the increased demand. ‘The cigar trade benefitead by the reduction in taxes and by lower costs of production, and cigar companies showed increased earnings. WOOL Increased yvields in all the wool-pro- ducing countries of the world were a dominant factor in the raw wool sit- uation in 1926. Prices sagged stead- ily from January to August, when a | slight recovery began to be manifest. This increased in September and Oc- tober, but in the later months of the year prices again turned downward. 923, | This does not apply to makers of | | tion of the old paper currency. ECONOMIES IN OUTPUT OFFSET MOST DECLINES Some Clothing, Hardware, Electrical Equipment and Building Material Firms Make Excellent Progress. that a large mnount of 1928 woo held over by dealers and growers camo on the market this year. dications of the increase in produ tion can be gained from the fact tha 319,000 more sheep wers slaughtersd 1n 1920 than in 1525. The pulled woo! from thess alons was an appreciable item The above fasts 4o not mean thar wool growers end. case. Moat of th dition that they can thelir stocks for a f. such con afford to Pl' 1 ble rarks gouds ¢ and much of t It was a spotty year In silk manu | and ign of loom > manu surplus produc bsolete equip ce conc iring cargo the fallure capt done by I the coal str and r space was don manufac the business ord; t n to img mained active cember. Prof in the ca of some of the larger producers w not se satisfactory ¢ 1 STOCK LIST RISES AFTER SLOW START IN YEAR'S TRADING (Continued from Twenty- astic carps stage of collapse. Capital was rush- ing out of the country despite all artificial attempts to stop it. In March, 1924, the franc had sunk to nearly 3.40 ‘cents. The hundred-mil lion-dollar Morgan loan temporarily turned the tide, but it subsequently proved to have heen merely a stop- gap. In December, 1925, the franc was selllng within less than 20 points—that is, less than a fifth of a cent—of its 1924 bottom. France had exhausted outside means of help because other coun- tries were not willing to come to the rescue until the budget had heen really balanced and until an agree- ment had been reached for the fund- ing of the war debts. With tre- mendous issuos of new paper notes made necessary by the constant depreciation in purchasing power, the franc went from bad to worse until in July, 1926, it touched its lowest in all history, 1.9313 cents. Franc’s Amazing Recovery. The subsequent recovery furnished one of the most interesting of the year's episodes. It began with the formation of the coalition ministry, the very nature of which was an a m t France was in more des- perate straits than it had been since war times. This coalition was for- midable enoush to override opposi- tion and to adopt a financial program In which the world had confidence. Refugée capital began to flow back, slowly at first, then more rapid until in the latter weeks of the year the movement at times became ur- gent. Then, of course, arose the problem of how French industry and finance were to adopt themselves to the new conditions. They had made their calculations upon a very much depreciated value of the paper cur- rency. Wages, cost of materials, all other items entering into the opera- tions of manufacturing and mercan- tile enterprises had been adjusted according to a very low level for the franc. The sudden upturn in the currency unit was equivalent to an equally sudden advance in commercial costs L it meant that securities into which paper francs were converted while the latter were going down became less valuable in the eyes of their holders. The Paris Bourse went through some days of severe liquida- tion and *considerable unsettlement was reported in husiness lin The impression toward the end of the year was that the Irench govern- ment would like to see the franc come to rest temporarily around the exist- ing level, giving time for industry to catch up before a further recovery ontemplated. With Belgium it was a case of revalorization of the paper currency, acknowledging as a fact what was everywhere appreciated, that there was no chance of ever getting back anything like pre-war rates. The stabilization flgure was fixed where, under the new conditions, the gold standard represented less than a fifth, in terms of forelgn money, of what it formerly did. Germany Comes Back Strong. Toward the end of the year there was a spread of over 14 points be- tween the selling price of the Ger- man 7 per cent honds and the Italian 7 per cents, hoth dollar loans with a similar character of security and having not far from the same length to run. This was no disparagemaent to Italian financlal progress, but it was a most striking tribute to the wonderful recuperation of German credit. The German loans, publie and private, were taken with the utmost nd later commanded con- stantly rising prices. The attractive- <s of the investment yield as th 11t of the money position was, of course, a factor, but the main con- sideration was the successful way in which Germany had met the first two years' payments under the Dawes plan, following the write-off of its internal debt and the extinc- Ger- man industry, once solidly on its feet, has received the unstinted support of foreign ital. (Copyright. 1926.) . ‘The American Federation of Teach- ers, which is made up of 32 local unions, with a total membership of 3.500, is planning an intensive organi- This was due in part to the fact . zation campalign. ‘