Evening Star Newspaper, December 31, 1928, Page 22

BRILLIANT PROSPECTS SEEN FOR MANY IN 1929 Aviation Movement, New Industry, Has On Begun—Foreign Sales Boon to Many Businesses. BY J. C. ROYLE. support the| . industrial and com- | structure of thi Nation are the basic com- modities produced and consumed. An engincer or architect called in to pass | on the soundness of a structure looks the sup- pillars, _situation of each of the chief com- modities will serve to give business men, both em ployers a ‘workers, an oppx tunity to estimate the strength of the business struc- ture and formulate 1629 accordingly. J. C. Royle thelr plans for AIRPLANES. The best indication of the advances made in airplane manufacture is the fact that, nearly all of the big automo- | bile manufacturers are prepared to | jump into the airplane engine field at | a moment’s notice. The output of air- craft for 1928 will exceed that of 1927 approximately 300 per cent. About 7,000 planes or more have been turned gut and the movement has only begun. One concern alone, the Wright Co., plans to manufacture 500 planes a month by next April and others are making plans for similar expansions. Profits have been larger this year than last for the established companies, but many have rushed into the busi- ness without proper financing. These may suffer mortality losses in the com- ing year. There are now scheduled air routes in this country being covered at the rate of 31,500 miles a day and there is still a tremendous demand for big planes. But the main dependence of many manufacturers now is centered on the private or sport planes ranging in price from $3,500 up. These, it is claimed, can be operated at around P cents a mile. There are now about 5,000 licensed pilots in this country and about the ssme number of student pilots. Planes left over from the war have been scrapped and new machines are going into commission in their places. There are 110 airplane manufacturers, at Jeast, in this country todey. More than 32 airplane engine makers are now operating while at least 24 accessory manufacturers are listed. AGRICULTURAL EQUIPMENT. Volume of business for the farm fequipment manufacturers during 1928 exceeded that of the previous year by from 15 to 20 per cent. Sales for the first nine months were 221> per cent higher than for the corresponding period of 1927. The biggest demand Mwas for power farming machinery. The eall for combined harvester-threshers continued and the sales of tractors was 80 high as to tax capacity of some ducers. pr?l'he most significant thing in the situation has been the gain in foreign 'sales, which have been 28 per cent higher than a year ego. This has taken out of the industry the slack time production periods, since many foreign countries harvest during our Wipter., Price reductions have cut t margins but this has been terbalanced by volume production d increased total of sales. Stocks on hand are small and since ‘he agricultural situation assures ample duying power, the industry faces pros- ts of another prosperous year in m& Most of the manufacturing com- s are in the best financial position ey have ever held. l AUTOMOBILES | “Between 4,600,000 and 4,700,000 pas- nger cars and trucks were manufac- red in 1928. This exceeds the 1927 juction by over 20 per cent and Tepresents the greatest year the indus- try has ever had, topping even 1926, the record year, by, around 5 per cent. 4t was also the best year ever known for profits in general. There were only ® half dozen or so makers who reported smaller net incomes than in the previous 12 months. The cutput would have been far thigher had not the Ford out-turn been glow in reaching high production fig- ares. Now, more than 6,000 Fords a day are being made, and the plants are only at half capacity. The other makers outside Ford showed a gain of better than 20 per cent. Competition was keen, and the year wound up with company after com- ny exploiting new models. Changes cluded front drive, improved brakes #nd other innovations, with varied body changes and artistic color schemes for oth bodies and upholstery. General Motors had its best year with huge gales, especially of its Chevrolet models. Other producers, especially those in the medium priced field, did almost as but some showed a drop in productiop. here were a few mergers and amalga- mations and more of these are now un- ger consideration. More men have been employed in the putomobile factories than ever before, Bnd there is every indication that the first half of 1929 will be fully as profit- mble and show fully as high levels of production and sales as the average in 3928. One of the features of the year was the growth of export sales, and an- fpther was the wide popularity gained by the straight eights. l TRUCKS AND BUSSES. I There was a rather sharp demarka- tion between the automobile truck jmanufacturers who made satisfactory ofits in 1928 and those who did not. e former, however, far outnumbered the latter, which were confined to a oup of five or six. Truck production {rls run over 525,000 units, according to expert estimates just completed. This fompared with 488,000 in 1927. ‘The feature of the truck field has been the popularity of the medium ca- acity vehicle, with speed and flexi- ility which would enable it to move freely in traffic and the passing of the old-time solid truck tires in favor of balloon tires. The truck industry was dormant in the first part of the year, t showed marked activity in the last months, Profits have been hetter stabilized be- use much of the bus business has now ssed into the hands of public utility mcerns, and few losses have resulted om failures to pay for vehicles. More- the trade has relieved itself largely § | well, | of the burden of excessively high trade- in values and consequeent big stocks of used trucks. A number of consolidations have taken place. These have usually been among companies serving and specializing in sales in a certain restricted territory. AUTOMOBILE ACCESSORIES. Profits of the automobile accessory manufacturers in the last year have | been approximately 50 per cent higher than in the previous year, taking the major producers as a group. It was the best year the body build- ers, the engine, axle and springwheel, shock absorbers, bumper, motometer bearings, lamp and other parts and ac- cossory producers ever had. Most of them have had to expand plant capacity to keep up with orders and business on their books today insures active produc- tion for months to come. This reflects the increasing call for accessories as original equipment. There have been more than 35 important mergers in the field during the year, affecting assets of over $300,000,000. BRICK P $7,000,000,000 construction year médde the past season a fairly prosper- ous one for the brick manufacturers. Taking the 1923-25 period at 100, the employment in the brick yards ran from 7 to 35 points higher than a year ago, but prices were a trifle under those of the 1927 period during most of the year, running about at an average for common brick of $13.75 a thousand as against an average of $14.02. CANNED GOOD: Profits in the canning industry in 1928 varied with the section, as must always be the case, but the results were far more satisfactory on the whole than in 1927. The big excess stocks which hung over the market last year have been dispersed and, while packs were reasonably heavy this year, there is no indication of another distention of stocks. Packs of corn, peas, fish and peaches were heavy. Tomatoes had a light pack and lima beans and waxed beans were not put up as extensively as anticipated. ‘There ate some indications of higher prices in those lines. The fish pack was welcomed since it followed a very short output in 1927. The pea pack was near record levels. The situation was not favorable to the growers in all cases because of huge crops in some-districts. This was true of the peach output in Georgia. The position of the canners was benefited by the steady and low prices of sugar and the relatively low prices for tin and tin plate. The canned meat and prepared food lines had a fine year with a splendid demand from the public. I CEME I Demand for cement continued strong almost up to the close of the year and many plants were run at as high as 90 per cent of capacity. A few probably exceeded this figure. Although some of the stocks on hand were dissipated by the year end, the total still was higher than at the beginning of 1928. Many of the companies did splendidly from a profit standpoint, but the indus- try as a whole still is faced by a prob- lem of over-capacity and over-produc- tion, and also by strong competition from other materlals and by foreign made cement. In spite of these adverse factors, the year has been a better one for most units than 1927, owing largely to the en- couragement of the $7,000,000,000 con- struction program. Prices were slight- ly lower than in the previous year, but this was compensated for to a great ex- tent by better productive methods. Many construction men and those connected with highway work declare that they feel fairly confident that when the final figures for the year are com- iled total production will be found to gave closely approached the 200,000,000~ barrel mark. I CLOTHI I A marked turn for the better was manifest in the apparel trades in 1928. Sales in the early part of the year were hardly up to normal, but there came a decided expansion in July, and there was then a more gradual increase throughout the Fall and early Winter. So far as volume is concerned, the hosiery trade had one of the best years of its history, with a splendid demand especially for both silk and rayon stockings for women and men, and also for wool and wool and silk sport stock- ings. The trend toward brighter colors helped the underwear trade decidedly, and so did new designs of men’s un- dergarments. Shirt and collar manu- facturers did well, especially the semi- soft and light-weight starched collar lines. The cotton and silk dresses for Sum- mer were bought in larger' numbers than ever before, Their prices were rel- atively low. The printed silks had an- other good year, while the velvet dresses were extraordinarily popular. The real advance, however, was shown in “flfuywwku‘}a lhaea ‘These b%clme especi popular, due to new and ap- pealing designs of light-weight fabrics and artistically developed color schemes, | The weather was fairly favorable, except for fur garments. There is small doubt that the actual | profits earned will show the second half | of 1928 was one of the best half years the clothing trade has experienced since 1920. The trade was remarkably free from serious labor disturbances, and merchandising methods were re- vised to conform with present-day con- ditions by all the principal producers. Work clothing, especially denim over- alls and similar garments were in fine demand all during the year, and many of the men's alothing manufacturers were pressed to keep dellveries up wil orders. There was a sharp demarkation line between the relative success of anthra- cite and bituminous coal operators dur- ing the year. Winter found the anthra- cite mines operating at capacity, with a bi-weekly pay roll of approximately $12,000,000. Moreover, the industry has made wide installation of improved ma- chinery and has injectea new and vig- orous blood into producing and sales ex- ecutive forces. It has also conducted a scientific campaign for education in fuel and its uses. Bituminous coal other hand, showed Throughtout much of the year many union mines were closed by the labor dispute. The non-union mines were worked fairly extensively, and }:roduoen, on’ the ittle improvement. H. G. ZANDER. have now been reduced to somewhere near normal, but the producing ca- pacity of the mines is far greater than the consumptive demand, and men are working only a few days a week, when they work at all, in many sections. Stocks of soft coal now are around 40,000,000 tons, as compared with dou- ble that amount at the beginning of the strike. Those union mines now op- erating are on a wage scale well under the demands of the men, and cuts have also been made in the non-union flelds. Prices have averaged 10 per cent lower than in 1927, although production was about 11 per cent less and labor costs 20 per cent less. Production at the close of the year was about 10,000,000 tons weekly, while only* about 9,000,000 tons is necessary under normal conditions. The low cost of fuel oil has changea many patrons over to liquid fuel. The future of the soft coal industry seems to rest on in- tensive and scientific processing of coal and the marketing of coal by-products. Final figures probably will show that total bitumious coal production for the year reached 465,000,000. COFFEE ‘The restrictive measures put into effect by the Brazilian government were sufficient to put and keep up the price of coffee during the year. As the year drew to a close prices were 5 cents or more & pound above the 1927 level for the corresponding period. Coffee was in strong demand in this country, and while no small amount came in from other countries the Bra- zilian supply is the mainstay of the market. Imports, it is belleved, will show a decided drop below the 1,432- 800,000-pound mark established in 1927. CONFECTIONS ‘The candy trade has been splendid throughout the year. This has been due to stability in the sugar and chocolate markets and to the quality and prices of the other mal used. SECRETARY WHITING. H. A. SCANDRETT. g H. H. SIMMONS. GEORGE 0. WALSON. a decided increase in the capacity of the tire fabric mills. Dairy products producers were aided materially throughout the year by ad- vantageous weather conditions. They also were helped by marked improve- ment in transportation and storage methods. The returns from the indus- try to the farmers were higher than in 1927 and more widely distributed as to geographical sections. Some of the larger companies strengthened their positions by mergers and other recorded net earning gains as high as 40 per cent over 1927. Stocks were reduced to advantageous proportions. Marketing was done in many sections in the most approved fashion and without overloading the markets, In consequence, butter, cheese and milk prices were well above the 1926 and 1927 levels. Taking 1926 as 100 the index for the 1928 year to November 1 averaged 104.8. Tnkmgl the period from 1909 to 1914 as 100, the price index of dairy products and poultry the 1928 index was 140, as compared with 133 for 1927. ‘The imports of butter from foreign countries exercised less influence on the market than in the previous years. IDRUGS AND CHEMICALS | Demand fer industrial chemicals in 1928 was so heavy that the manufac- turers wound up the year not only sold out of immediate supplies in some lines, but booked far into 1929. The consuming industries were mov- ing at top speed and, the chemical manufacturers had to step along to keep pace. This meant quick sales, good rofits and low stocks, a thoroughly gealthy condition. Sales and shipments in many of 'the chemical lines broke records. This was essentially true of industrial alcohol, which found its final impetus in the Winter anti-freeze motor demands, Mineral aclds, caustic soda and dye stuffs closed the year with prices firm and high with no buyer hesitancy in evidence. The sulphur companies arc in improved positions due to the tech- sales, | nical decrease in stocks and production case of most companies. Sales ‘were enhanced by the expansion of chain candy stores and by the merchandising of candy and soda in the regular dry goods chain stores. Earnings of the gum manufacturers have shown a moderate gain, but it is a healthy one, since it is at about the same rate maintained since 1820. All pmus consumption records were sur- P 5 Ice cream sales were aided in most parts of the country by weather condi- tions, and profits were raised and ex- penses cut by a number of mergers of ice cream and dairy products com- panies. Never has the soft drink industry had such a year. The two leaders in this industry showed increases in prof- its of 33 and 7.4 per cent, respectively. Competition was severe, and many new concerns entered the field. The baking companies made as much profit, relatively, from their sales of sweet cakes and crackers as from the sales of bread, and this line has be- come one of their mainstays. ‘The cotton mills of the country gen- erally are in better shape than they were a year ago, but many still find their position anything but satisfactory. The prosperous mills are growing more prosperous, but the fact remains that mill capacity still is 25 per cent higher than any presumptive demand neces- sitates. Some of the mills are old and equip- d with out-of-date machinery. Others ave been unwilling to follow style stocks | responding trends into new fields. None the less, sales have run much th | higher than in 1927, and prices from September on showed & disunctly strong tendency in .response to the possibility of high priced raw cotton. Stocks on hand at the year's close were under 395,000,000 yards, or less than the un- filled orders booked. Employment in the New England mills has been uncertain and low, and efficiency there also has been low, as well as morale. Price cuts and strikes were features of the period in the North. The South had no such factors to contend with; in fact, the Southern mills are expnndl:{hto care for some of the business growth. Sales toward the end of the year were at a monthly rate of about 380,000,000 yards. Prices have been well above the 1926 and 1927 levels and raw cotton comum%tlun has been at the rate of 552,740 bales a month. Billings, which represent finished yardage or real pro- duction, totaled 655,400,000 yards for the first nine months of the compared with 760,000,000 period of and the heavy demand especlally from the rubber and tire trade. The molasses | than output, the source of much_ industrial alcohol, was affected by the Cuban sugar situation which Insured a wider margin to alcohol producers. ‘The new paints and lacquers and the rayon industry absorbed many chemical products. The dyestuff chemical sales were aided by the tremendous sales value of color combinations in all lines of industry, from automobiles to textiles, which developed. Carbon black was aided by the re- strictive measures entailed by State regulation in Louisiana and by the huge volume of business in office supplies, in- cluding typewriter ribbons and carbon paper. The betterment in oil aided sul- phuric acid producers and the radio trade and electrical developments caused a ’glg demand for nitric and muriatic acids. The agricultural and fertilizer chem- icals did well and have a promise of doing better, owing to the small cotton crop this year. In general, chemical company earnings showed a gain of around 12 per cent as compared with 1927. Chlorine sales were spurred by ntgmm in the paper, textile and oil es. Proprietary medicines and toilet preparations, especially rfume, had about the best year they have ever ex- perienced in America. | DRY GOODS | Gains were recorded in retall dry- ' sales all over the country in 1928 and in various forms of distribu- tion during the year, but the chain stores and mail order houses registered the major improvements. It probably was for this reason that wholesale dry- goods’ sales fell off and the jobbers did not do so well. ‘The chain stores and mail order houses each piled up gains of 20 per cent or more, while the department store gains mounted to 5 to 7 per cent. ‘The ¢l stores and mail order houses put extensive expansion pro- grams into effect. The mail order com- panies opened a big number of retail stores in strategic centers and all seemingly did well. The chain order houses expanded their list of stores and some of the smaller units were absorbed, ‘The smaller independent stores in gen- eral did not do so well, but it was ved over and over again that there still a place in retail merchandising for such stores. Thekdepnrtment zetolt'esbyhenenud an extraordinary exten the holiday trade, which was the heaviest ever known, according to the figures so far Sales were helped out by the trend toward vivid colors in bed- tchen, bathroom and other and in clothing. But the hing record sales way to | character which spurs bu; the huge purchasing power now pos- sessed by the American people. The average monthly sales of the principal mail “order houses for the first 10 months ran about $43,000,000 as com- pared with $41,290,000 for the entire year 1927, |ELFCTRIC AL EQUI ENE New records for electrical equipment sales were established during the year. Higher records for profits also were hung up by the principal producers. In the third quarter, orders booked totaled $264,419,328, the largest three months’ business ever recorded. The fourth quarter sales are believed to have been approximately as high, since the year closed with factories going full blast to keep up with demand. The extensive electrification programs announced by_the Pennsylvania, the Reading, the Illinois Central and the New York Central Railroads are count- ed on to stmiulate business further. The central station equipment demand has been extraordinary and more household electrical equipment has been sold than in any previous year. This was specially marked in the refrigera- tion field, in radio equipment and in household utensils. The gain in profits for the year for the industry in general is estimated as 8 per cent over 1927, The sales of lamps has been stimu- lated by price cuts, especially for the smaller sized lights and for automobile lamps. The automobile industry has absorbed a big volume of products, as have new buildings and the transfer of industrial plants from a steam power to electric power basis. FLOUR Demand for flour has been excellent in 1928 both at home and abroad, but it has been accompanied by lower prices than obtained in the previous year. The big flour companies, however, ‘were able to buy wheat in larger quantities this Fall at comparatively low prices and to reduce the price of flour to the lowest point since 1924, at the same time re- taining their profit margins. These grlce reductions brought out big buying y_domestic and foreign consumers, Earnings the flour fiscal year ended June 30, 1928, were slightly lower for the preceding fiscal period for the more important producers, but the situation has been reversed in the last six months. The trade has been helped not only by the expansion of the baking industry, but by the fact that many chain store groceries now are baking their own bread. The trend toward crackers and sweet cakes also has helped consumption. Production for the first three quarters of the year was at the rate of 9,050,000 barrels monthly, as compared with 8,- 820,000 barrels in the corresponding period of 1927, i FRUIT As 1s usually the case, the fruit mu-' ation in 1928 followed sectional trends. In some localities the growers found | splendid markets and did well. In others there was a huge glut of fruit on the markets and low profits for pro- ducers. ‘The apple, pear and peach crops were all large. The apple crop was placed at 59,500,000 bushels higher than in 1927. Pears exceeded the 1927 crop by 4,900,000 bushels, while peaches grown were 21,630,000 bushels in excess u!xgm 1927 crop. provement was undoubtedly made in marketing methods, however, and Llllge;e :u a ;hn.rp immlovex;nent in for- e lemand, especially from Great Britain, The citrus fruit growers an- ticipate an excellent season during the remainder of the Winter, and what they have sold already brought good returns. The grape crops undeniably were too heavy for adequate returns, and it was with difficulty the various juice, table and raisin varieties were gotten off the o ‘mélon. Faarkets ded in melon markets expanded in re- sponse to production of new varieties, and most of the small fruits did especially prunes. I FURNITURE I Furniture manufacturers had a fine year in 1928, owing largely to the trend toward modernistic furniture of the skyscraper, or architectural, patterns. Themso were aided materially by the em| is placed on color in house deco- ration, which necessitated the purchase of l’,l:&l xuxinltur% to gomwmx new mod- ernistic color schemes - ings and decorations. P e The manufacturers look with favor on the demand at present, for it is of a both dur- of the styles now in fa- ter they have given way to a different type. The Grand Rapids market has been so busy it decided ing the vor and to add additional shows for buyers who conld not reach the semi. annual exhibitions. well, | be has been | wit L. J. HOROWITZ. activity in business and industry has kept demand for office furniture and equipment at a high pitch, and the building of new schools, theaters and churches has produced a demand for seating equipment which has been ex- traordinary. Prices were on practically a par with those of 1927 during the major part of the year. I " FURS I Both domestic and wild furs were in demand throughout 1928 at increasing range of prices. The wild furs were ad- vanced in direct proportions to the way they proceeded to “be themselves.” The domestic furs got their advances for Seeming to be other than themselves. Rabbit or coney and cat were so well handled by furriers that they did some- some other skins which were imitated. Fox was the feature of the year, ow= heavy bands of this fur on woolen and advanced, but rates of advance depend- ed on the quality of the furs. Silver fox, blue fox and gray fox always were in to rose pink, found a ready sale. The flat furs prospered, and the “bar- bered” or shaved furs and flat furs, such as Persian lamb, kolinsky, caracul, broadtail, fine prices. One of the features of the seal. Mink, marten and baum marten, fitch and skunk were all easily vendible. Coon skin was at a slight disadvantage, owing to the early warm season, Hudson and ka seal were desired for short Jjackets as well as for trimmings. ‘The swankiest fur of the year was chinchilla. Reptile skins were used not only more extensively but more artis- tically than ever before. Production in the Mississippi Valley, the largest fur- producing area in the world, yielded furs valued at more than $70,000000. About 12,000,000 American muskrat pelts were cured, Glass did better in 1928 than in 1927, but the industry still was in an un- enviable position at the close of the year. The plate glass industry benefited by the increased production of auto- mobiles, since the motor manufacturers take a lot of glass products for wind- shields and windows. The foreign producers still threaten American producers with severe compe- tition, although the flexible plate now being developed in American plants is helping’ sales. ‘The big building program insured the use of a large volume of window glass, but profits from these sales were meager. The electrical and radio industry helped the glass manufacturers and the activity of the canning and preserving field ad- vanced the demand for glass containers. So did the big sales of the soft drink producers. Improved processes in 1928 insured a better net return per box for window glass than in the previous year although prices were low. Some plate glass works opened up as the year drew to a close after having been closed since January, 1928. l HARDWARE | ‘The huge volume of new construction and the shifts from coal-fired furnaces to ofl and gas as fuels accounted for much of the increase in sales which the rlumbmz and hardware and supplies lines did in 1928. One was able, how- ever, to draw a line right through the industry and find the unprofitable busi- ness on one side and the profit makers on the other. The difference between old and new methods of stock keeping and merchadising divided them. ‘The $7,000,000,000 building year as- sured sales, but it did not assure sales at a profit by cor&)nnuns run on old- time lines. The interior work sure to carried on during the Winter will thing toward depopularizing ermine and ing to the vogue for huge collars and silk and velvet garments. The prices demand, and the cheaper pelts, which were dyed every shade from lead gray mole and others, brought season was the revival of demand for muskrat and its wide use as a trim- ming under its trade name of Hudson BIG BUILDING trend away from the fine weaves which have always been most expensive, and the color schemes of the bands again were a factor in sales. The growing trend toward the wear- ing of silk hats with formal eyening dress and opera hats with dinner coats aided sales. Labor difficulties were com- paratively negligible, HIDES, LEATHER AND SHOES “On top of the world” was the way many hide, leather and shoe concerns \found themselves at the end of 1928. | Hide prices advanced owing to a strong | statistical position and the relatively | | small marketings of cattle. Stocks were | low. This gave firmness to the leather | market. Shoes were in strong demand, with orders running 10 to 15 per cent heavier than a year ago. The holi- | day shoe demand was stronger than | for years, and plants began Spring | production in many instances before the turn of the year. Leather orices, which promise to be well sustained, were aided by the addi- tional uses for this product. Bags, millinery, luggage, sport goods and garments entirely of leather aided to { use up the surplus stocks. Moreover, | the "American tanners have proved their superiority and there is a strong | and growing demand for Amerisan | leathers abroad. Calf and kid have led the van in popularity despite the | | vogue for reptile leathers, and patent | | leather sales have grown beyond all | | expectations. | “'The sole leather tanners have per- | haps done as well as any units in the | trade, their earnings being almost 50 | per_cent in excess of 1927 for the year. The shortage of hides continues and stocks are low despite an increase of 43 per cent in imports. Stocks amount to around 3,500,000 pieces. Leather stocks occupy much the same statistical position. There were about 1,800,000 more pairs of shoes made in the first 10 months of the year than in the cor- responding period of 1927. Prices of shoes have moved up somewhat, but not sensationally, November produc- tion was 28,351,000 pairs, making the 11 months’ total 324,252,000. The year’s output probably will reach 350,- 000,000 and may exceed the previous high of 351,114,000 made in 1923, LUMBER I The lumber industry has got itself, not out of the woods, but ‘out of the red.” The leaders of the industry re- port what they claim is a permanent revival. There has been a net gain in sales in 1928 after declines in both 1927 and 1926. These net gains were sufficient to bring mills and lumbering operations to a high point, although not to_capacity. Unfilled orders were high at the year's end. This applied both in the Pacific Northwest and in the long leaf pine belt of the South. Production of soft wood mills has been running around 350,000,000 to 375,000,000 feet weekly, while hard wood plants have been turning out be- ::;in 50,000,000 and 60,000,000 feet a Demand at high levels and pros- pects for continued strength and im- provement, but competition will con- tinue keen, not only in the ranks of the lumber producers themselves, but from producers of alternative materi- als. The situation was helped by the $7,000,000,000 building year, but it was the sound business judgment used by men in the nidustry which was the ;eacl factor in putting lumber on its eet. * Export demand was excellent, es- pecially from the Latin American and Oriental countries. Employment was good in the wood camps, and mills and wages at a high level. Soft wood prices were silghtly lower in the early months of the year than in the corre- sponding Yerlod of 1927, but advanced in the Mall. In the first three quarters of the year 7,863,900,000 feet of Doug- las fir and yellow pine were produced as compared with 8,374,200,000 feet in the corresponding period of 1927. | MEAT PACKING l The meat-packing year ends officiall: October 31, and in that period of 192§ meat packers showed substantial im- provement, as compared with the previous fiscal year. For the last two calendar months profits were no less satisfactory. Beef prices rose to the highest in years. This advance had a tendency to curtail consumption, but buying power throughout the country was so great that the effect was not heavily felt. The same was true, in some measure, of the pork trade. However, the heavy pork inventories accumu- lated at the beginning of the year had to be dispersed before the advance was fully felt. Most of these reserve stocks were disposed of at a profit. The foreign demand for pork prod- ucts was uncertain. Toward the end of the year certain pork products de- creased sharply in price, but this was compensated for by heavy marketings and low prices for animals. Smoked meat trade was good almost all year, although both ham and bacons re- tailed at low prices as the year closed. I NON-FERROUS M TALSI The non-ferrous metal producers en- Joyed a distinct revival of prosperity in most cases during the year and mines were reopened and actively operated, some of which had been shut down for long periods and others of which had been under restricted production. The advance in the demand for, and price gé,n l?opper was the feature of the metal Under careful restrictive measures the stocks of copper dropped to a low point. Demand advanced surprisingly and the result was an advance in price from around 13 cents to above 16. duction increased with this advance, since it enables all except the tre- mendously high cost producers to mine at a profit. In October production reached a high of 149,199 tons of re- fined copper and stocks dropped below 46,000 tons. As a result 1928 copper PROGRAM AIDS MATERIAL DEMAND Unfilled Orders Assure Continued Heavy Operation in Several Lines as New Year Dawns. strength toward the end of the year. Consumption gained rapidly, but 1t has failed to equal production. The tin sit- uation is likely to be benefited by the demand from can makers now making itself evident, Prices have not shown marked strength. Demand for aluminum _continued throughout the year at a high rate, aided by activity in the automobile and airplane flelds. Prices remained steady at comparatively low levels, how- ever, and earnings of producing col panies may not show marked improve- ment over 1927. The rise in sllver production attendant on the high prices in the Spring and the increase in the metal produced in conjunction with copper, lead and zinc ores had a tendency to, turn prices for the white metal downward. This was increased by resumption of production at_ many mines in Mexico and Canada. Nickel producers were kept busy by expanding demand, and the merger of International Nickel with the Mound interests had a strengthening effect. PAINT | Paint materials in most instances rose in cost steadily from May onward. None the Icss, the paint manufacturers had what was probably the best year in their histories—at least the major producers did. The demand was insistent not only as a result of new construction, but for refurbishing purposes. More house- holders bought and used paint them- selves than ever before. This trend was emphasized by the development of brushing enamels and by the sales of paint in the chain stores. Gains were recorded from month to month with great steadiness. ‘The automobile industry was largely responsible for the increased sales of spray enamels and lacquers. The paint makers found a ready market for their by-products, especially in the textile trades. The furniture industry was a heavy paint consumer, as were pro- ducers of household and kitchenware. I APER | Overmilled! That accounts for the fact that the print paper industry wound up 1928 in the throes of a des- perate competition, with attendant price cutting and reduction of profit. The United States and Canadian mills are equipped to produce between 20 and 25 per cent more print paper than can be absorbed in the markets they reach. For a time production was held down by agreement, but before the close of the year competitive bidding for 1929 contracts reduced prices to $50 a ton, the lowest level since 1916. As a result plants which depended on capacity operations could show only small profits, and those less fortunately situated will not cover operating ex- penses until conditions change. Stocks are 6 per cent or more larger than a year ago. Many of the manufacturers who have been dependent on news print sales are turning to the manufacture of 3ther paperxs &ox:-n: of themhmr pro- ucers are bul more mills in the South. s Many new news print plants already have been built and others are only waiting for a change for the better in %hm:l?i‘su ‘:o i&mmmce construction. situation prevailing, it be some time before the industry hm(.nyl a_satisfactory footing. However, some of the companies are not only paper manufacturers. They are to all intents public utilities, having developed hydro- electric power, which can and is being uch of the increase in paper output is due to Canadian mills, for the Unlpt:d States production decreased, while that of Canada increased more than 13 per cent, making the combined gain about 6 per cent. Consumption increased, but did not equal production gains. Late in the year combined production ran around 14,400 tons daily. The larger producers are feported to have reached an agreement to curtail, but no one knows how long this will last. The general paper trades have im- proved, outside of news print. There was & heavy demand for wrapping pa- pers and tissue papers for the Christ- mas trade. Paper board and fine pa- pers showed gains amounting to 55 per cent for the former and 2.7 for the latter. ‘The petroleum industry not only is convalescent, but it has thrown away its crutches. It is, however, still some- what weak after a depression of nearly two years. The production and con- sumption of crude have been kept kept within reaching distance of each other. Domestic production just about balances consumption. The danger in the situation at the moment is in the probability that South American oil fields will achieve a rate of pro- duction which again will flood the market. Gasoline consumption has increased 8 per cent above 1927, but refinery op- erations are 25 per cent above those of a year ago. There are 480,000,000 barrels of crude above ground and the Seminole and Santa Fe Springs flelds are likely to add to that stock in stor- age this Winter. Besides this, there is shut in a big production in Oklahoma, California and Venezuela. Pennsylvania crude has advanced in prices the situation of producers also not be unexpected. Profit margins have been fair for refining and distributing companies and, with higher crude prices, the situation of producers alss- will improve. The threatened price war between Royal Dutch and some of the Standard Oil group has béen averted. Compe- tition from liquid fuel derived from coal is far in the future. With profits already showing a gain for this year of around 40 per cent for most cor- panies, the outlook is by no means gloomy, although production still re- mains at a high level. Gasoline re- quirements for 1929 are expected to be about 408,000,000 barrels. RADIO Sales of radio equipment were at rec- ord levels during most of 1928. Sales of keep the trade at a high rate of produc- | property earnings are estimated at 50 to | electrically operated sets, both direct tion for builders’ hardware. The retool- ing of auto factories and other indus- 5 ?er cent higher than in 1927. Foreign demand is strong and electrifi- and alternating current aff: at - ular prices spurred mmhmn. pTol?ne trial plants has brought in a big volume | cation projects and other activities by | presidential race raised interest in ra- of business, especially for wrench and machine tool makers. farming communities ig of garden and agricultural implements. Wholesale hardware trade fell off as compared with 1927, but this was a neral condition since more consumers ught direct than ever before. HATS Manufacturers of felt hats did a big volume of business in 1928, althon the margin of profit was not large. fur felts were in ithstanding that the prices of raw ma- terials necessitated fairly high prices. ‘The vogue of the “brown demr' got. 0 real start and the other stiff hats consumers seem 1 sumption and prices to come i likely to keep con- h for some time Lead Stocks Are Reduced. Lead stocks also were reduced by careful gauging of output and the | tol atn.lsuuf‘ poalr.fan of the metal and price strength bettered in consequence. Consumption was heavy, but the o:;g situation complicated matters. S still are somewhat higher than a year 'r than in 1927. wound up with prices for they wound 0, but profits of lead companies were | wild flurry of ulll.n‘c', ;hh:h put year slab zinc at about the best of the year, |and telephony and special demand not-|and visible supply was reduced to | sorts, around 45,000 tons. to indicate price strength in but caj ty of mines is well above con- sumptive demand. : e n its history, but fell dio broadcasting and reception to the boiling pntnt.m‘ e The stock market flurry, the interest keep manufacturers gnge u.h;nd Earnings lished companies were ahead of 1927 when the holidlym-‘:e'lmx“ approached, and up in a net in- o Varbus mergers of including producers of tubes, sets comes to record heights. Developments in wireless ‘This would, seem | and talking machines, all contributed prdspect, | to the l'a_rr:cdperm condition. The had one of the plano the sales of. e S, A= Ry