Evening Star Newspaper, January 1, 1930, Page 40

" - CONSTRUCTION PROGRAM AIDS RELATED GROUPS 1929 Was Banner Year for Electrical Equipment, Hardware, Clothing, Ma- chinery, Paint and Radio Makers. BY J. C. ROYLE. EW YORK, January 1.—The anatomy of business is as com- plex a structure as the anatomy of the human body. Like the latter, it is composed of a wide variety of parts and elements, but the skeleton of the business, indus- trial and commercial structure of the United States built up around and supported by’ the commodities of the Nation. They are its skeleton, and no study of business conditions can be accurate or complete without a thorough knowl- edge of this sup- porting_structure. The following #nalys>s of the chief commodities which form this support will serve to give business men, both employ ers and workers, a basis on which to judge the business health and strengtlr of the Nation on which their prosperity will depend throughout 1930. J. C. ROYLE. ‘The growth of aviation in 1929 made extraordinary strides, but its pace was not comparable with the advance in air-mindedness throughout the world. Manufacturers recognized that fact and were perhaps misled because air-mind- edness did ‘nu?;‘ trul;llylfn itself immedi- ately into ane buying. Production of airplanes was slightly in advance of consumption. Careful estimates “throughout the business in- dicated that about 6,500 aircraft were constructed and somewhere in the neighborhood of 6,000 machines were sold. Scores of companies rushed into airplane manufacture. Some of these were inadequately financed and have found themselves in considerable dif- ficulty. This resulted in a number of Sweeping mergers, which placed many of the weaker companies in stronger hands and seemed likely to result ad- vantageously to the industry in gen- eral. Prosperity has followed the builders of commercial and military aircraft, rather than‘those who have appealed to the individual sportsman as a customer. It had been anticipafed that well over 12,000 planes would have been built in 1929, and it speaks well for the judg- ment of the men in the industry that they were able to revise their plans downward with so little disaster. ‘There are now some 27 big commer- clal concerns operating routes through the United States. Their demands for lanes are growing constantly. There g"m""’i, $issn in sppications. for 1 schools and in appl ns pilot licenses. These facts indicate bet- terment in conditions for:1930. ‘The air mail service has been a sta- bilizing influence. The first 10 months of 1929 saw 5811,100 pounds of air mail tr: , which was a gain of 125 percent as compared with 1928. It is estimated that aircraft in the United States g!" s mnlg 100,000,000 miles d T, irther pi m huxhwum throughout 1930, ing “to Secretary of Commerce Lamont, will depend on adequate regu- better in general throughout 1929. De- mand was not affected materially by the financial uncertainties of the year, whereas the programs outlined in the Hoover conferences in November and December did much to stimulate the demand for heavy duty vehicles. Bus lines increased steadily in mile- age, reliability, number and in profits of operation. -Many of the weaker com- panies passed into stronger hands and it was a notable development that the railroads absorbed a greater number of bus and truck lines or started opera- tions of such lines than in any previous year. Use of trucks for freight transporta- tion was given encouragement. The plans for express highways which would provide more road room and speedier transportation for motor-carried freight were made. In the first nine months of 1929 there were 664,990 trucks produced in the United States and Canada. The trend toward division of territory which would permit local demand to be satis- fied by local producers continuad. AUTOMOB:LE ACCESSORIES Automobile accessory manufacturers established another new record of pro- duction in the last year. This was nat- ural in view of the gain in automobile and truck output. The industry, how- ever, felt the recession in the later months of the year to considerable ex- ent, In general the profits of the manu- facturers during the year were larger than those for 1928. “At the moment, orders already placed earlier in the sea- son and the demand for equipment for new models are keeping the accessory factories well engaged. A factor in their prosperity was the trend of automobile manufacturers to include accessories previously sold apart in original car equipment. Body, bump- er, shock absorber, steering gear and axle producers were behind on de- liveries most of the time. BRICK The brick industry in the last season was well sustained by the volume of construction, especially public building work. None the less, prices were at such & level that many manufacturers had difficutly recording adequate profits although production was at a very high stage. For the first 10 months of the year, the price index of brick, with the 1926 average taken as 100, amounted to 91, a drop o 2.7 per cent as compared with the index of 1928. The average price per thousand for common brick ;flss first 9 months of the year was A huge volume of cement was used In building, highway construction, paving and other industries through the year. Despite this fact, the industry is more severely de than at any time in 10 years. is was due to severe compe- tition and to the fact that the plants in this country now have a capacity far in excess of the present consumption requirements. Excess of mill capacity has led to sharp price cutting and recent contracts have been awarded at fig- ures well below any touched for a long CEMENT lation of production. Part-payment | period. sales have already become a factor in distribution of aircraft and the trad- ing in and sale of used planes is grow- ing, just as it did in the automobile field. One fiotable development during the year was the éntry of large luto<‘ “‘mobile manufactuters into the airplane field. EQUIPMENT A gain of at least 10 per cent was recorded in the sales of farm equip- ment in 1929 as compared with 1928. Profits of the leading manufacturers ‘made corresponding or greater gains, al- though there were reductions in price lev!hg of certain lines. Better distribu- tion and better collections together with a sustained improvement in foreign trade accounted for the latter fact. Despite the uncertain situation of some of the farmers there was no let- down in the demand for equipment as the year drew to a close. Despite the drop in the size of the wheat crop and difficulty over prices, the dellar value of agricultural equipment manufactured in this country approximated $575,000,~ 000. The best sellers were the combined harvesters, threshers, tractors and barn equipment machines. ~ The field is still wide for the manufacturers since 70 per cent of the farms still remain to be equipped with power machinery. The extent of hthe fore! l"“re: prom- ises to carry the manufacturers com- fortably over the dull period of the American season. AUTOMOBILES I ‘The automobile year was divided into two fairly distinct parts. For the first six months production, sales and profits were extraordinary. These continued with only slight diminution throughout the third quarter. Then followed a sharp decline coincidental in large measure with the tremendous break in s2curity values on the stock markets of the country. Despite this, schedules were pretty well maintained and the more stable manufacturers wound up the year with thoroughly satisfactory profits. ‘There always is a drop in production and in the fourth quarter, accord- ing to automotive experts, and man feel that the industry did splendidly to sustain the shock of the upheaval in the securities markets as well as it did. In spite of the unfavorable factors it must not be forgotten that in the first nine months of 1929 there were manufactured 4,860,141 cars and trucks, a gain of 259,344 over the total for the entire year turned out in 1928. year closed with stocks of new and used cars high, but the best in- formed men in the trade maintain that the automobile has passed from the Juxury class of commodities to the necessity class and has become an in- tegral part of American life. They feel, | therefore, that extreme curtaliments in demand are not to be expected. They are precautions against any tendency toward curtailing of demand. New models are being prepared to stim- ulate buying and heavy advertising con- tracts are being placed. Some manufacturers have reduced prices, others have increased prices in of most satisfactory pro- portions. | TRUCKS AND BUSSES | Busiiiess df the automobile truck and bus manufacturers took a turn for the I ‘These cuts have ranged from 20 to 30 cents a barrel. The industry was further disorganized by uncertainty as to action that would be taken by Congress on the tariff since 2,500,000 tons of cement are imported annually. Production was scarcely as heavy in 1929 as in the previous ye:r, but it was still beyond consumptive needs. The tremendous building program scheduled for 1930 promises to afford considerable relief to this industry. CANNED GOODS l ERR SN ——— ‘While the canning industry was sub- Ject to the usual sectional variations due to inequalities in crop conditions, both production and profits were on a better basis than in 1928. Throughout the year stocks of canned goods were comparatively light. Demand was excel- lent and conditions were such as to show fairly adequate profits to both growers and canners in many Mnes. ‘There were exceptions to this rule, as is always the case in this industry. The situation was favored by the sta- bility of the sugar markets at low levels. Farm prices for fruit and vegetables were well above those for 1928 in the later months of the year. There was a special demand for can- ned fish which reacted most favorably on producers on the Pacific Coast, Louisiana and New England. Pears, ap- ples and peaches were not in as heavy supply as in the previous year and prices were correspondingly strong in most sections. There was for a time a threat of a shortage of fruits and vegetables for canning, but this was relieved by the break of the drought of Midsummer, Prices in consequence have been of a character to stimulate sales and still leave profit margins for growers and canners. ‘The preservation of fruit in sugar was at a new high level, and the distribu- tion of fish frozen under the new low- temperature processes almost revolu- tionized the New England fishing trade. ; I CLOTHING Not only did the clothing industry | record improved profits in 1920 but the | prospects for 1930 are exceedingly | bright. Sales of women's wear were in- creased by the fact that there was a Y | drastic readjustment in fashion trends which necessitated the buying of new garments. Production was held within reasonable bounds, and distress stocks | were absent from the market through- |out most of the year. Profit margins | were slightly larger than in 1928, and the volume of business was greater. Sales of extremely high-priced cloth- ing suffered somewhat during November and December, but compensation for this was found in the increased dis- tribution of the more reasonably priced articles. Demand for the printed silks and rayon fabrics and for the new light woolen materials and for cotton dresses showed improvement as com- | pared with the previous year. Produc- tion and sales of silk hoslery estab- lished new records for all time, accord- ing to preliminary figures, with Novem- ber output exceeding that of last year by 500,000 dozen pairs. The longer length of dresses did not serve to cur- tail this demand in the slightest. Underwear, shirt and collar manu- ported excellent profits. The unusually warm Fall delayed the buying of heavy ‘Winter nts and overcoats to some ml. t the cold snaps which fol- d had been present although latent. Dur- ing the Summer sales of bathing suits were of extraordinary proportions here and abroad, and the knit goods indus- try- in. general had a prosperous year. facturers, producing lines for men, re- | 000. THE EVENING instability were beaten off. automobiles were turned out. construction. Industry, commerce and trade, with their companion, agricul- ture, performed astounding deeds .in 1929. During the first 10 months of the year they broke all records for national prosperity. In the face of the most unexpected attack this country has ever seen, they stood back to back until depression, fear and business Production in most lines exceeded all previous records. Fifty- five million tons of steel were produced. More than 5,000,000 Eight billion dollars was spent in The national income is estimated at more than $92,000,000,000 and retail trade piled up & total of $47,500,000,000. | As the year closed money, which had been high and.tight as | | a result of the placing of funds COAL | Coal is still a sick industry. ' It showed decided improvement during 1929, but its basic trouble still remained uncured, although earnings for many of the coal companies showed gains of 25 to 30 per cent as compared with 1928. ‘This unhealthy condition was especially noticeable among the bituminous pro- ducers. There are still more soft coal mines in operation than are needed. Equipment in those mines has not as yet been brought up to the proper effi- clency to make profits . satisfactory under existing price levels and costs. The labor problem is still unsolved, and there are many miners working only part time or not at all. The trade has been supported by the heavy buy- ing of railroads and the steel mills, which have been operating at extra- ordinary rates throughout the year. This has been counterbalanced to some. ex- tent by the increased use of other forms of fuel. Demand showed a sharp upper trend, espechally for domestic use for the late Summer and early Autumn, but the warnr weather of the late Fall season served to check this to a certain extent. 4 Bituminous coal has been turned out at the approximation of 11,250,000 tons a week. This has meant an increase in stocks in storage. For the first three- quarters of the year approximately 383,000,000 tons of soft coal was pro- duced, and the estimate for the full year is for an output of . 518,000,000 tons, as compared with 493,000,000 tons in 1928. Stocks in storage probably will approximate 33,000,000 tons at the end of the year. . Anthracite operators have been slight- ly more fortunate, but hard coal has never regained some of the markets lost during the strikes which disor- ganized the indistry. None the less, pay rolls have been high throughout the last half of the year, and output is expected to be between 78,000,000 and 80,000,000 tons for 1929, | COFFEE - I The average price for coffee in the United States throughout the year has been 24.1 cents a pound, which is only one-tenth of a cent below the high annual average for all time. This price, however, is not a natural one. It has been caused by a withholding of coffee from the market by Brazil under a plan of valorization. It is estimated that Brazil now has in stock a full year's supply for the éntire world. The United States, the largest con- Sumer, takes the major part of the 22,000,000 bags sold each year. The Question of price maintenance depends on the size of the coming Brazil crop and the continued success of the valor- ization scheme, which is dependent on government loans obtained abroad to finance growers, with the coffee itself as security. The Brazillan crop this year promises to be large. CONFECTIONS Candy manufacturers and distributors were somewhat disturbed by a contro- versy with factors in the tobacco trade, but their apprehensions proved un- founded and they completed the year with splendid profits. They were aided by the stability of the sugar market ;nd %flm pfl':e of that commodity, and y ability to secure adequate supplies of chocolate as needed at nu':dy prices. The volume of candy trade showed ar: increase due not only to population ad- vances but to an increase in national purchasing power. Distribution by means of extensive chains of retail stores proved successful in many in- stances, and the package candy trade held up, well supported by improve- ments in automatic marketing machines. The industry, as did that of the cake and cracker manufacturers, showed the mergers in the reduction of overhead. Consumption of chewing gum increased, as it has done since 1920, but the in- crease in net income was moderate in the cases of most of the larger manu- facturers. Profits showed an improve- ment of approximately 5 per cent for ‘The manufacturers of soft drinks also recorded profit gains, but these not so extensive in 1920 as in Some of the newcomers in the soft drink field found competition extremely hard to meeti a The annual candy bill of the coun approximated a billion dollars and Nkp! resented 3.6 per cent of the total ex- penditure for food. ‘were about 450,000 retail candy outlets, with the confectionery, soft drink and ice cream establishments handling 58.3 per cent of this business, with drug stores sec- ond and 5 and 10 cent stor ‘The cotton mills of the country turned out far more yardage in 1929 than in 1928, but despite that fact, production was held closer to consumption than in the latter year. The takings of raw cotton by estic mills in the latter part” of the year approached . record levels. The mills wound up the year with comparatively small stocks on hand, and are today in a far better statistical position than they have oc- cupled for 3 production has natural- COTTON GOODS years. Restriction of ly narrowed profit margins since it is impussible to run on a part-time basis as cheaply as at capacity. The strong- est link in the industry was to be found in the tire, cord and fabric production and many of the mills turning out those products were enlarged during the year and ran at a high percentage of capacity. m!n the South hb:r ‘“uxu“bla made eir @) ance an pted con- ditions ?g:‘rme time. The combined rayon and cotton producers did a fine volume of business. Print cloth prices from April on were well under those for 1928, with 64x60s averaging 5.31 cents a yard. Production for the late months of the year hung around the 75,000, -yard mark. DAIRY PRODUCTS Dairy products were a source steady and constant profit to the farm- ers throughout the year. More and | more, farmers went into the Producuon | of dalry products and in near] Hll cases with advantageous results. e huge salutary effects of consolidations and preceding in the call money market, became easier and there is no lack of funds available at reasonable rates for legitimate business expansion in 1930. increase in ice cream sales aided this trend. nd. Another factor which encouraged the farmers was the improvement in dis- tributing policles and factories. The per capita requirements in dairy prod- ucts in the United States is advancing steadily. The amalgamation of food product companies for purposes of eco- nomical production and distribution was a factor of the year. Prices for butter, cheese and milk were slightly under those for 1928 : . the year drew to a close. This was due largely to the weather conditions, which favored heavy production. [ DRUGS AND CHEMICALS There was an extraordinary demand for industrial chemicals throughout 1929. This abated temporarily in the last months of the year owing to the uncertainty of conditions in some of the consuming industries, but the vol- ume of business done by producers of chemicals was well in advance of that for 1928. The increased demand came from the textile trade and the auto- mobile, steel, petroleum,- fertilizer and paper industries, & Industrial alcohol prices were about 54 cents a gallon, above those for the previous year at the close of 1929 and while the demand for anti-freeze mix- tures was late in coming, it was active when it did arrive. The industry, how- ever, is not so heavily booked for 1930 as it was for 1929. Sulphur prices also showed advance of $1 a ton in comparison with 1928. Dyestuffs were in excellent demand and reflected the improvement in the textile trade. Sulphur was aided by the consumption of the rubber and tire industry. Carbon black still shows a slight ex- cess of production over consumptive demand. In general the leaders of the chemical industry reported profits in excess of 10 per cent above those for the preceding year. Producers of toilet preparations, proprie! perfumes & splendid season and their profits compared more favorably than those of ceding years. Prices for glycerin, nitrate of soda and sulphate of ammonia were slightly lower than in 1928, while soda ash and sulphuric acid were steady and about the same. Dry goods sales all over the country! were sustained and increased through- out the year by the extraordinary vol- ume of money at the disposition of the public. This buying power made itself felt especially thl'ouf the medium of the chain organizations and the mail order houses. The trade was flelt{‘e‘d slightly at the start of the year by the changes in fashion. As soon as these became stabilized business proceeded with & rush which carried the stores over the normally dull Summer with scarcely a break. Even the stock market developments did not serve to check buying except in_the most expensive goods. That check was only temporary and the vol- ume of Christmas buying, while not perhaps up to the optimistic predic- tions for ig was fully equal to that of 1928. Stocks of goods at the close of the year were low. Prices did not be- come inflated and the industry in gen- eral closed the year in a healthy con- dition. General stores did not expand 80 rapldly as in the preceding year. This was lm:clllly noticeable in the chain , but even these gained approximately 15 per cent. The department stores were on a far better operating basis, and were aided by more economical buying policies ef- fected through contracts and mergers. The sales of the mall-order houses av- eraged $57,100,000 & month for the first 10 months of the year. This compared with about $43,200,000 & month for the year and the $41,290,000 a month for 1927. ELECTRICA UIPM The electrical equipment manufac- turers had the best year of their history in 1920. Their operations and sales were supported by the programs for rallway electrification, by demand for new central-station power equipment, I{hyptbe increase in radio sales, and by purchase of large quantities of domestic labor-saving appliances. ‘The demand in each division was ex- tremely well balanced, and the huge programs for building and other con- struction laid out after the stock mar- ket break served to maintain production at the equipment plants at capacity levels. Bookings of manufacturers are believed to have approximated $1,400,- 000,000 for the entire year. Developments in the power develop- ment and transmission fields have been so rapid that constant replacements of old equipment have been necessary. Export sales were very heavy, amount- ing to over $135,000.000, according to the latest avallable figures. ‘' Flour producers were favored throughout the year by the advan- tageous levels at which wheat was to be bought. In addition, prices of flour were close to 50 cents & barrel higher | the throughout the first 10 months of the year in 1928, and production also registered a decided gain. Ex sales were supported by the fact that eco- nomic conditions in importing coun- tries were decidedly better than in the previous year. Production for the first nine l:on'-hl of 1929 totaled 85,900,000 FRUIT Fruit suffered considerably during the Summer from the drought which had existed in most sections. The lediterranean fruit fly also was a Florida M mltx in_holding go':m 4 citrus production and profits. The pear 2,000,000 ‘The apple less. m was ximately els lower n crop was nearly 45, ug ‘The peach of | nearly 25,000 . The grape Cali- fornia, Michigan and other sections did better than in the previous year, and most of the small fruits returned ade- quate profits. tary medicines and | of STAR, WASHINGTON, D. C., WEDNESDAY, Having become converts to American business turned at the close of the year to solving the problems of mass distribution, confident that such solution would do more than any other influence to maintain sales volume and consumptive demand. The business outlook today 1s brighter than it was a year ago. Construction will be tremendous in 1930. will be high. The preliminary crop outlook is bright. goods on hand are light. It may take some little time for the favorable factors to make their influence felt. Business, in consequence, may be beneath the levels attained in the first three months of 1929. The remainder of the year, however, is likely to be exceedingly profitable in most lines of business endeavor. Competition will be keen, profit margins will be narrow and the successful business man probably will play less golf and take more orders than he did this. year. Furniture manufacturers had little time to sit down on their own products in 1929. They were actively engaged throughout the entire year. The cause leading to this activity centered nat- urally in_the great construction move- ment. Practically every house and apartment completed involved the pur- chase of new furniture to a greater or less extent. Hotels, theaters, churches, schools and office buildings necessitated expenditures ‘of large sums for furni- ture equipment. ‘The trade was assisted to an addi- tional extent by the development of manufactured composition and metal furniture. Many sales were made to replace the futuristic style which be- came valent in 1928 and of which some householders tired quickly. ‘The diversity of color schemes, how- ever, cgl:llnued to be 7. H‘Ifleffl:::l’nlnnd to ass especially of gs and draperies. Velvets and damasks, as well as the printed silk and rayon fabrics, found a ready market in the furnishings fleld. The same is true of wall paper. Prices were slightly under the levels maintained in 1928, but vol- ume was greater. Some of the fleece of the lambs shorn in Wall street found its way into the fur market, but in general the high- priced furs were disadvantageously af- fected by the financial developments the late Fall. This was true, however, only in the more expensive pelts. America assumed the leadership in fur production, with a yleld of nearly $70,- 000,000 in the raw furs. Sales of fur products amounted to nearly $300,- 000,000, ‘The prevalence of the all-fur gar- ments was not so noticeable as in pre- vious years, although furs were used with extreme freedom for trimming. ‘There was a great demand for fox scarfs and collars. Muskrat skins were exten- sively sought, and formed the basis the larger part of the profits of Am%rlun {-rmerls.“ludr tnm;en. Baby lamb was especially favored, as were some of the flat skins, like broadtail, mole and others. ‘Trade was aided by the fact that the style in dress necessitated changes in the construction of the outer coats and wraps. Reptile skins were only mod- erately used. The purchase of “musk- rat units” assumed almost the propor- tion of stock speculation. Under this plan individual investors were sold male and female muskrats, which they left with the seller, dividing with the latter the profits from increase. Schemes of this kind were checked by State au- thorities in some of the Middle Western communities. In Louisiana alone 15,000 trappers were busy this Winter, and the catch for the season, which will end February 5, is expected to exceed $7,000,000 in value. ‘The glass industry operated on a fair basis in 1929, but still was aficted with some of the ills incident to heavy for- elgn competition and high production costs. The plate glass industry ben fited from the increased number of au- tomobiles produced and the demand for window glass in new edifices was fully up to that of 1928. The radio industry absorbed more glass in the manufacture of tubes than any previous 12 months and the demand for incandescent bulbs was also fully up to standard. The canning and preserving industry ab- sorbed a large volume of glass contain- ers, and so did the soft drink trade, but the demand for bottles has never regained the volume which it exhibited before prohibition. | HARDWARE | New methods of heating and refrig- eration went far toward making 1929 & banner year for the hardware pro- ducer. Building hardware was in ex- cellent demand throughout the entire year. Radio manufacturers did a tre- mendous amount of business and closed the year running almost to capacity. The oil-burning furnaces, gas-burning furnaces and gas refrigeration necessi- tated purchases of new household equip- ment. ‘The hardware trade has benefited to a greater extent than any other through adoption of simplified practice and the elimination of & large number of styles and sizes. Buying of farm and garden utensils was extremely heavy. The general stores and mall order houses Enegtf: materially from this trend in e " | * HATS ' ‘The hat industry did not have a par- ticularly prosperous year and wound up with many of the larger factories run- ning part time. The trend toward felt headgear was continued. Straw hat sales in some sections lost ground be- cause of weather conditions. There was, however, a decline in the cut-price sales which usually are a feature of the Summer season. The rather disap- pointing sale of men's headgear was compensated for by the heavy sales of small felt hats to women. Prices of ese women’s hats were not excessive, but this fact stimulated purchasers to buy more hats per customer than ever before. HIDE, LEATHER AND SHOES Profits of the hide, leather and shoe concerns very closely approximated those of 1928. The leather men per- haps did not do quite as well as in the previous year. Some shoe concerns, on the other hand, showed decided im- provement. In general the statistical position of all three sections of the leather industry was decidedly better. The number of cattle slaughtered was approximately 200,000 head more than in 1928, but stocks of hides were lessened by consumption, although there is every evidence that they will prove sufficient to meet demand. Stocks of leather also are on the de- cline and are at present around 7 to 8 per cent below those of the end of 1928. | in Shoe production has been and,| heavy is being well maintained. Prices ~4 ot | able to take advantage of this demand arej| JANUARY 1, 1930. COMMODITIES SURVEY SHOWS INDUSTRIES PROSPERED DURING YEAR BUSINESS BULL'S-EYES IN 1929 the theory of mass production,} Demand for materials Stocks of stable, although they are at a slightly lower level than those of last year. Profit margins in consequence have been lessened, but sales have been larger and the diverse trends have about counterbalanced each other. Throughout the year so far produc- tion of shoes has averaged well above 30,000,000 pairs & month. This com- pared with an average of around 28,- 000,000 pairs a month for 1928, The year's output probably will overtop any :x":;/lh;ua fiwrt zs’flfi.!ormer ‘r::revlous ecord was 351,114,000 turn out in 1923, o - felt in the trade because of the in- creased importation of forelgn shoes made with cheap labor by American methods, ~which grew extensi: throughout the year. ey | LUMBER | The lumber industry, while it did not make appreciable gains in profits dur- ing the year, maintained its position in excellent shape. Production was cur- tailed very sharply and was at a lower rate than in the previous year through- out the 12 montg: In most monthly periods rroducuon of Douglas fir and ¥entow pine was well under 700,000,000 ee Stocks on hand, however, were kept well within bounds and the industry is on a sound statistical basis, although prices have shown some declines since the early Summer. The volume of bufld- ing was spread so evenly over the pe- riod that lumber manufacturers were IaTtge mamketxwm. i e outlook for the industry has been brightened by the announcement of the extensive equipment and construction programs of the railroads and public utility companles. The expansion of the policy of grade marking lumber has been a stabilizing factor. MACHINERY AND MACHINE EQUIPMENT Machinery and machine ipment manufacturers have never nffi" such a year as 1920. The volume of orders which poured in on them was extraor- dinary and kept the plants running close to capacity throughout the entire year, This reflected the trend toward the improvement of equipment in all lines of industry. Income of the larger of the companies for 1929 will proh:fiy be over 40 per cent in excess of 1928. Automobile and automobile accessory manufacturers were probably the larg- est individual buyers. R-lli!'nwfll pur- chased heavily and so did the aircraft and radio industries. There were active sales of contractor and road-building méchinery and tools. I MEAT PACKING Profits resulting fromt meat packing activities were satisfactory. They would have been far more satisfactory but for the heavy run of live stock to market in the later months of the year, which shoved prices down rather sharply and cut into the earnings for the fiscal period of the packers, which ends Oc- tober 31. The statistical position of the industry however, was decid im- proved and the outlook seems bright despite the narrow margin which at PITE: demand. Ter ‘e prod leman for cu lucts throughout the year was heavy and re- turned adequate income. The demand for such products was the feature of the forelgn trade, which showed bet- terment in reflection on the improved financial _and industrial conditions abroad. Prices for mutton and lamb have been on an excellent basis. The profits from pork and pork products Wwere alded by a slight drop in the num- ber of animals slaughtered. out- look for this line bright, since the production of hogs in 1930 promises to be fairly high. The most important factor in the year for the packers was the develop- ment of age marketing of fresh meats through the utilization of a quick freezing process. This promises to revolutionize the retail meat trade to a large extent. Cattle slaughtered in the first 10 months of the calendar year totaled 7,124,600. l NON-FERROUS METALS I Prices for non-ferrous metals were remarkably stable throughout 1929, They were at a level which assured profitable operation to a great majority of the producers, and profits, at least to the copper companies, were perhaps larger than in the previous year. Pro- duction was at a greatly increased rate rvin” Cottad st o Winies as aj curtaled ly as Winter ap- proached. i) # It is notable that stocks on hand showed a gain of over 40 per cent as compared with last year. Output reached its peak in March, when 163, 600 tons were produced. Prices at the close of the year were about 2 cents a pound higher than a year previous and there is no indication of any immediate drastic drop in conditions. % More copper companies turned production of finished and semi-fin- ished copper and brass products than ever before, thus providing a retail out- let for their raw roduC:-l. i Tt consumption, at s af in the first hl.lpf of the y fell off 28 the vear drew to a close. Output was maintained at a high rate and in consequence there are heavy stocks of t0 a level of about 1 cent a pound below the high of the year. Pro- duction has fairly high rate. Efforts being made to hold production in check have not as yet been entirely effective. Develo?- ment of new processes has made ol and abandoned ore bodies available for production. Zinc is also weaker than it was a year ago, when stocks on hand had reached a low point. This is due to {heavy output. Stocks have reached the highest level since 1922. The in- dustry has been affected to some ex- tent by the development of new ore bodies in other parts of the world. Stocks of tin also are higher than they were a year ago, but production and consumption were fairly well bal- anced as the year drew to a close. Buy- Ing has been such as to steady prices and the tin industry is showing dis: tinct strength., Consumption of alum- lum Was at an extraordinarily high hout the year. has been due laregly to the increased use of Some apprehension was | th, been maintained at a |in STOCK MARKET EXPERTS SEE SPEEDY RECOVERY Business of Nation Rallies Briskly With Plans for Intensified Activity Dur- ing Coming 12-Month. the metal by the automobile industry. Prices are firm and profits of the lead- ;:;g' producers were heavier ‘than in Silver production has been held down, but prices have been very low. The only possibllity for immediate ice advances of a sizable character ies in the possibility of China's entry into a war which would stimulate re- quirements for silver to pay troops. Consumption of nickel is higher than for years and the principal producer is far behind with current orders. Prices are stable since they are main- tained by means of annual contracts. Earnings of the leading producer prob- ably will be 100 per cent larger for the year. Prices for platinum were $2 an ounce higher at the close of the year than at its opening. | PAINT The majority of the paint vroduzu did a more profitable business in/the last year than ever before. They found adequate markets for their products in the building construction field and in e automobile, furniture and farm equipment industries. The sale of spraying lacquers continued to be an outstanding feature of the paint busi- ness. The “clean-up and paint-up” movements developed a large demand among householders who used the paint themselves. The price of paint mate- rials showed a marked increase as the year drew to a close, and went well| above the levels of 1928. The paper industry, which was in a most unsatisfactory state at the begin- ning of the 1%:", showed steady im- provement. period of price-cutting competition passed, and progress was made toward balancing of production to consumptive demand. \ The stabilization was aided by the fact that the provincial governments of Canada are no longer offering cheap land and timber grants and the produc- tion of Capadian mills has been cur- tailed at least temporarily. The indus- try, however, is still over-milled. During most of the year the news- print_production of the United States and Canada ran slightly less than con- sumption. Consumption has been about 10 per cent above the level of about a year ago. At present prices, however, producers’ profits are narrow. Price ad- vances of $10 a ton in Kraft paper brought increased profits for a time, but also induced operations at a higher rate. Wrapping papers and tissue paper maintained what advantage it papers did well and writing paper main- tained what advantage it gained in 1928. PERTOLEUM Despite the unfavorable statistical position of the petroleum industry, the profits of the well rounded companies engaged in the production, transporta- tion and distribution of petroleum products have been higher than those of <1928, Crude oil production went forward at a terrific rate. The year wound up with a total dally average production through the country of over 2,600,000 barrels, Prices for crude dmzred off slightly as the year drew to a close. This also was true of the gasoline prices. Gasoline consumption advanced at an extraor- dinary rate, but this was not sufficient to prevent the accumulation of addi- tional stocks of crude, whigh through- out the year increased from around 626,000,000 barrels to over 657,000,000 barrels. In spite of all of these factors, how- ever, the leading companies showed a net return of about 25 per cent above the profits of 1928. New pools were discovered in California and Oklahoma. It is believed that when final figures are available it will be found that more than one billion barrels of crude was produced in the calendar year, as com- pared with 901,000,000 barrels, the pre- vious high output record. Restrictive measures were successful in many sections. This is true espe- Speed to catch up on back orders. They Luve J’nouzg bllxlllneu in prospect to eep them heavily engaged throughout most of 1930. The volume of business done was between 70 and 80 per cent in excess of that in 1928, but profits, while they showed decided improvement, did not grow in similar ratio, owing to narrow profit margins, Since the raflroads have outlined a program for 1930, involving the expen- diture of $1,000,000,000, the outlook for the industry is splendid. In the first 10 months of the year 83,390 freight cars were ordered. The number of locomo- tives built was 100 per cent larger than in 1928, with 797 engines ordered in the first 10 months. The replacement concerns and the specialty manufacturers had an excel- lent year, with profits at new high-level marks in the case of most corporations, Makers of safety-control devices and signals have large contracts on hand. ‘The electrical equipment manufacturers recelved heavy orders, and have even larger bookings in prospect. ——— e RAYON e — Demand for rayon suffered a slight check in the last two months of the year, but this was not sufficient to en- danger the record-breaking profits which many of the manufacturers piled up. The industry was aided materially by the heavy production of hosiery and underwear. ~There also has been a de- cided turn toward the rayon fabrics for use in women's dresses by those ad- dicted to careful and economical buying. The rayon mill capacity of the coun- try was decidedly augmented during the year by new plants and by expan- slons in those already in operation. The sales of rayon were spurred by price cuts and this naturally narrowed profits while it increased production. As the year closed, stocks on hand were at the low point of the year but consider~ able rayon was coming in from foreign countries. It is estimated that do- mestic consumption accounted for ap- {)hr:xlmlnly 125,000,000 pounds during year. | RICE I Acreage planted to rice in the United States was reduced sharply to 881,000 acres in 1929 and the output of the country totaled 39,200,000 bushels. This was the lowest amount produced since 1925. The carry-over from the 1928 crop was the smallest in years, and in con- sequence the commodity was in an ex- cellent statistical %‘uwn and prices were satisfactory. e chief feature of t:la ye;lr l:“ the p‘:tedm mml:flt of rice ‘which was ex) , especially to the Orient and Spanish America. The acreage restriction was due to voluntary agreement by growers in Southern I RUBBER | =R e e AL N ) Prices for crude rubber fluctuated 3535, " Thle Yas advantagtons 3 is was advan! for Tubber consumers, notably the tire ufacturers, and they did an excellent business. - American consumers are re- ported to be co-operating with foreign producers of crude to mamntain an equilibrium of prices. n Was especially heavy, owing to the demand for automobile tires for replacement and original equipment purposes. The re- placement business was _excellent throughout the year, and the large number of new cars produced provided @ wide market for tire manufacturers. Competition, however, throughout the tire industry was extremerly keen. Nearly all the tire manufacturers have started to turn their attention toward producing their own rubber and their own fabrics. It is estimated that motor car manufacturers required fully 5,000,- 000 casings more this year than in 1928, Replacement business was augmented b{ the fact that tires made from re- claimed rubber in 1927 had to be re- placed in many cases. Sales of rubber heels and hard rubber clally of the Texas flelds. There also was eomglete shut-down of the Okla- homa City fleld for a limited period. The new California State law pro- ‘| manufactures were excellent throughout the year. Rubber footwear in general was in sharp demand, and there was considerable consumption of crude for connected with the aviation urposes 3 | Indintry: “Tire iventories, Bawesetion y | sally satisfacto by-products and have put into effect new processes tending to cut cost and widen profit margins. ‘The potato crop was the smallest which has been raised since 1925, total- ing 354,000,000 bushels, as compared with 466,000,000 bushels last year. This resulted in decided improvement in the rates to growers, although the carry- gvcr stocks from 1928 were exceedingly eavy. ‘The sweet potato crop, on the other hand, increased to 82,900,000, a gain of 5,000,000 bushels as compared with last year. Weather conditions for marketing of sweet potatoes, however, were not propitious. POTATOES R — RADIO AND MUSICAL INSTRUMENTS — Sales’ of radio receiving sets and uipment rose to a higher level in 1929 than in any other year in the history of the industry. “Throughout year the factories were working at utmost capacity. It is esti- mated that there are between 9,000,000 and 10,000,000 sets in domestic use and the call for replacements will here- after amount to 5, months ap) tel value of $350,000,000. Even during and after the stock market slump the de- mand for sets continued unabated. This demand was stimulated, however, b'yodpnu reductions by many of the producers which merely narrowed their profit margins on this late business. Competition was extremely keen, and consequence tirere is a trend toward mergers. One of the factors of the year was the entry of General Motors into the radio fleld in conjunction with Radio Corporation of America, General Electric and Westinghouse. The mechanical features of the year were the screen grid and the high- powered tubes. It is estimated that tube production for the year will ap- proximate 75,000,000 units. The phono- graph companies benefited along with the radio manufacturers because of popularity of the combined instrument. Some of the heavy inventories of been reduced, but the volume of in the musical instrument line has been somewhat disappointing. RAILROAD EQUIPMENT ‘The railroad equipment manufactur- ers wound up the year with a burst of ¢ fairly heavy at the present time. Profits of the tire companies were not univer- Combaies Were Betier thanin e mes. s n pre- ceding year. l SILK I Tremendous demand developed for silk fabrics throughout the last Sum- t | mer, and this was well maintained right up to the end of the gell‘. even after the stock market slump had exerted its full force on luxury buying. The trend was encouraged by the comparatively low prices at which fabrics were marketed, Throughout most of the year production was well balanced to consumption, and the outlook for the industry is bright, despite the fact that it is overmilled. ‘Throughout the greater part of the year raw silk prices moved over only a nar- row range, and it seems probable that this stability will be maintained, since Japan is restricting production in ae- cordance with American demand. Heavy stocks which had piled up at the opening of 1929 have been considerably reduced. | TOBACCO PRODUCTS I Producers of cigarettes had a some- what hectic year, although the advance of consumption continued at the rate of 12 per cent as compared with 1928, Preliminary estimates place the year's eomm sumption of cigarettes at 120,000, ,000. Cigar uction showed a gain, es- geeully m machine-made products, ut the gain was not as heavy as in the case of cigarettes. It is a) - mated at 10 per cent as comj with 1928. The higher priced cigars showed & decline in consumption. In general, earnings were better for the tobacco manufacturers than in 1928. ‘The entry of the chain grocery store into the retailing of cigarettes brought on a price war which caused sharp re- ductions by leading manufacturers. ‘This finally was brought to a close for & time, and the wholesale prices are placed on a stable basis by the four largest producers. Some of the retail stores abandoned their premium de- partments, and there were a number of consolidations in the retail end of the business for the purpose of broad- ening profit margins. The of growers the | tobacco were sharply divided. The pro- ducers of Burley were in a better statis- tical position through reduction st , but the plantings had an unfavorable the of that type of tobacco. of cigarette producers con- d"fi-"?n“" k:l‘;’l pri itting again e year cl ice cuf wn: resol r retail sales. All rted to to spul X big cigarette produ~ers laid out heavy advertising programs for 1930. (Copyright, 19300 A