Evening Star Newspaper, September 22, 1935, Page 63

News of Markets Pages 1 to 4 FINANCIAL AND CLASSIFIED he Sundy Star Part 5—14 Pages WASHINGTON, D. C, SUNDAY MORNING, SEPTEMBER Classified Ads Pages 5 to 13 99 N 1935. - ALL ABOARD FOR THE NEXT RIDE BUSINESS PUSHES - SECURITIES FIRM WAR CRISIS RAISES STOCKS HESITATE HERE DESPITE SAG AT OTHER CENTERS Stocks and Bonds Remain At or Near 1935 Peaks on D. C. Exchange. SANDERSON WILL HEAD A. I. B. FINANCE GROUP Woodward & Lothrop Declares | Extra of 25 Cents on Common, With Usual Dividends. BY EDWARD C. STONE. Tssues on the Washington Stock Exchange have ignored “war scares” and other factors causing setbacks among a good many securities on the New York Stock Exchange in the last few days, and closed the week STRMAR I TASONR T MARI JABOND ] AR IS 1933 1934 1935 NEW YORK, September 21 (). —Machine tool orders were up for the sixth consecutive month during August, according to the National Machine Tool Builders’ Association. The gain was due entirely to ex- ports. The average for the year to date nearly doubles the average for the whole of last year. —Copyright, A. P. Wirephoto. AUTOM EN PRESS FEARS OF SETBACK I WORLD UPTURY Financial Centers Uneasy as Securities Take Pro- nounced Plunge. ADVERSE EFFECTS DUE FCR BRITISH INDUSTRY Huge Arms Spending Might De- stroy Easy Money Policy=—Gold Nations Disturbed. BY CLAUDE A. JAGGER, Associated Press Financial Editor. NEW YORK, September 21.—The beating of plowshares into swords has become a new incalculable factor in the world struggle for economic re- covery. Wall Street and Threadneedle AS TRADE RECORDS STEADY PROGRESS Technical Weakness Follows | Long Rise—War Fears * Also Major Factor. {NERVOUSNESS AFFECTS INVESTMENT MARKETS | Drop in Treasury Issues Taken; as Sign of Demand for Better Yields. BY CHARLES F. § Special Dispatch to The Star. | NEW YORK, September 21.—In the period of six months between the middle of March and the middle of September the stock market advanced | | on an average over 30 points, or about | 40 per cent. | EARE, /i strong. | Many stocks on the board in the | Washington Building are at or near their high marks for the year. In | the Bond division Anacostia & Po- | Street, at first inclined to look with| The first portion of this rise was | | some complaisance upon the business | Predicated on the fact that prices ap- created for steel, copper and chemicals | Peared to be out of relation to values tomac R. R. First 5s, at 933; are close to the year's top while Ana- costia & Potomac R. R. Guaranteed 5s are at the 1935 high. 106'3. Capital Traction 5s are now selling around 97 after hitting 100 earlier in the year. City & Suburban R. R. First 5s, at 92 are within a point of the year's best mark. Georgetown Gas Light First 5s, selling at 11214, are at the 1935 high point, while most of the Washington Gas Light bonds stand practically at the year's top quotations. Potomac Electric Power bonds remain among the strongest and most active on the list. The last sale in Washington Railway & Electric 4s was at the summit, 105%;. Stocks Are Also Strong. In the stock division, the same sit- uation is true in most of the issues. | Potomac Electric Power 6 per cent preferred last sold at 110's against a high of 112. The same Corpora- tion's 5'; per cent preferred is now selling at 1131,, near the top. The last Steamboat stock, at 88's, made a new high mark. Washington Gas stock is off a point or so from the vear's best price. Railway & Elec- tric preferred is at its best for 1935. A glance at bank stocks shows much the same situation. American Security & Trust at 198'; is down two points from the year's higest sale. Liberty National, Lincoln National, National Capital, National Savings & Trust and Washington Loan & Trust, on the last sales recorded, were at the high prices for 1935. National Bank of ‘Washington was off a point and both Riggs National Bank Common and preferred sold higer earlier this year. At the same time, the Riggs stocks arc among the most active bank stocks on the list and &ghow more fluctuations. In the miscellaneous list, Lanston Monotype, Peoples Drug Stores pre- ferred. Carpe! Corp., and Woodward & Lothrop common and preferred is- sues were at their high 1935 marks | on the last sales recorded. WMergen- thaler Linotype, which has been up to 311, is now selling at 27!.. ‘Woodward Dividends Voted. Directors of Woodward & Lothrop have just declared the usual quar- terly dividends of 30 cents and an extra of 25 cents a share on the com- mon and $1.75 on the preferred stock. Payments will be made on September 27 to shareholders of record September 23 The board of directors of the Munsey Trust Co. has declared the regular quarterly dividend of $1 per share due | at this time. Disbursements will be made on October 1 to stockholders of yecord September 21. On the Washington Stock yesterday Washington Gas 5s, figured in a $500 transfer at 1161;. Real Estate Mortgage & Guaranty preferred changed hands at 4. Capi- tal Transit stock closed the week with 18 bid and 18!: asked. It was announced in the financial district yesterday that the issue of $279,000 Alexandria, Va., serial 4s had been sold. by Y. E. Hooker & Co., Brown, Good- wyn & Co., of Washington and a Rich- mond firm. New York Stock Exchange offices in this city were crowded yesterday, s traders and investors paid particular attention to the war news. Opinions on the near market are most divergent. In the long run, however, most brokers believe domestic stocks will depend | for their action more on home trade and prospects than on news from abroad. Sanderson Finance Chairman. ‘Walton L. Sanderson, Hamilton Na- tional Bank, has been appointed chair- man of the Finance Committee, Wash- ington Chapter, American Institute of Banking, President J. Earle Mc- Geary announced yesterday. A graduate of the institute, Mr. Banderson was president of Washing- ton Chapter last year and has served | on practicaly all the chapter’s impor- tant committees. He is a former treasurer, so is particularly well fitted to head the committees in charge of finances. Appointed to serve with him on the committee are: Joseph R. Fitzpatrick, Second Na- tional Bank; Robert H. Lacey, Colum- bia National Bank; William H. Laugh- lin, Washington Loan & Trust Co.; T. Hunton Leith, Security Savings & Commerciai, ana rau: J. Seltzer, Amer- {can Securny & ‘ITust Co. Insurance Leaders Elected. ‘Washington life insurance delegates returning from Des Moines yesterday reported the election of Lester O. Schriver of the Aetna Life Insurance Co., Peoria, Ill, as the new president of the National Association of Life Underwriters. He was advanced from the vice presidency. After his recom- mendation by the nominating com- mittee, & unanimous ballot was cast by the secretary. Alexander E. Patterson, Chicago, was named vice president; O. Sam | | backs, according to the indices, large- Cummings, Dallas, Tex., secretary, and Robert L. Jones, New York, treas- urer. L3 sale in Norfolk & Washington | * DEALERS STOGAS ; Little “Bargain” Selling Expected as Result of Output Curb. By the Associated Press. | DETROIT, September 21.—The final cleaning up of 1935 model motor cars in dealers’ hands has begun as pro- | duction division activity tapers off | toward its lowest level for the year. While retail distribution has slowed down considerably in anticipation of | the introduction of next year's | vehicles, output has been of much smailer volume than consumer de- mand and as a result the industry's leaders are more than ever convinced that there will be little “bargain” sell- ing this year. | Volume Down Sharply. | The volume of production took a sharp drop more tham a week ago when Chevrolet wound up work on | most of its 1935 models. For weeks | by rearmament, are growing uneasy and securities prices have taken a | pronounced plunge. The American markets, long in- tent upon domestic recovery, are dis- | turbed by foreign developments for | the first time in more than a year. Just how American recovery might | be impaired by a European conflict developing in the Mediterranean is not clear. But Wall Street, which| has previously shown some lncllnaui tion to “bull” the so-called war stocks, | clearly does not like the prospect as| international tension becomes sharp. | British Gains Threatened. \ 1 ‘The probable adverse affects upon Grea' Britain, which since early 1932/ | has been a leader in world recovery, however, are more obvious to Wall Street economists. By pursuing a balanced budget and cheap credit policy, England has stimulated do- mestic construction. Her capital goods industries have started to move. London has resumed her functions as world banker. England's foreign trade has lagged, but she has restored her industrial production to 1929 levels. Huge expenditure for armament might well disrupt her easy money policy. Heavy deposits of foreign and on a certain amount of antici- | pation of inflation. | The later extension of the upward movement represented the process of adjusting prices of equities to recov- | ering business. In this era, indus- | trial stocks outdistanced other groups, | for the railroad shares have been held back by unfavorable earnings and the public utilities by the new | legislation against holding companies, | in spite of abundant evidence that the use of electric power is rapidly | increasing. | A stage in the market situation has now been reached where a long and extensive rise has introduced the normal sequel of technical weakness, along with a hesitation on the part of investors to follow up stocks that seem to have discounted the present degree of recovery. At the same time the war outlook abroad creates ap- prehension here and causes a certain amount of European selling. While, therefore, a new high level LI ’ / Il HII“[' FORMARD AT FAST PACEDURNG WEEK for common stocks has been reached | sentiment of brokers, who, until re- this week. the significant feature of | _ § SRR cently, had been predicting a more or | F"-ING UF MURGAN this company had furnished most of | funds in London, which have helped the volume output for the industry.|io make money'chup there, would | With Plymouth also out of production | presumably be sharply drawn down. | and & sharp drop in the production | Another run on London such as that | volume of the Ford plants, the burden | ot four years ago would be con-| of assembly activity rested on the| cejvable, according to Wall Street ex- | middle and high priced unit makers. | perts, Aside from the industries | are likely to | Treasury Issues Affected. Investment markets also have been susceptible to influences similar to those that have affected stocks. Nervousness among holders of Gov- ernment issues have corresponded to | are predicting that the downward | British trade has already shown some | too much to expect that the era of trend may continue for several weeks, | signs of hesitancy. extreme low money rates and of ab- 1 | Leading authorities in the Industry | heiped by the rearmament program,|that felt in markets abroad. It was | | | or until the leading makers in the | full lowest priced division swing inf production on 1936 types is | activity may be retarded somewiut by i the desire of the heavier producers to clean up completely the stocks on dealers’ floors, but they have a com- | petitive factor to contend with that is not as active in the medium and higher priced brackets. Buick Reduces Prices. Buick, which publicly presented its new models on September 18, is the first company to bring out the 1936 types in the early Fall, in line Gold Bloc in Trouble. | On the continent, the latest an more tense phase of the Italo-Ethio- | pian controversy finds what is left | | of the gold bloc still in the throes of | deflation. A further slump of the | Holland guilder was checked this | week, but the French franc was un-, able to get back to a level high/| enough to stem the renewed flow of gold out of Paris. The gold bloc’s | troubles antedated the Italian devel- | | opments, but appear to have been ag- gravated by them, particularly in so | far as France is concerned. | with the agreement the industry Wall Street observers feel that the | made with President Roosevelt as a | ltalian economic situation has been move to level off employment and | growing more strained for some time. | production levels. Incidentally, Buick | The serious adverse trade balance arnounced its price range would | IS Worse. International = banking | show a reduction varying from s40 | QUarters i Wall Street feel that the | %o $385. failure of Il Duce's corporate state | Dodge also has its 1936 models now to achieve economic recovery is a | in production. o powerful force spurring him to §eek Most of the companies now out of | an expanded colonial empire. Since s e | the strain coincident with war prep- | production are expected to have their | 5 : tat [ snmis b i“‘”owmcn el i | arations, the lira is being maintained | advance of the National Automobile | O bY drastic measures, such as the normally high prices for national oans would continue indefinitely. It is already clear that if the Treasury is to have the same success with its future loans as with those of the past it must adopt a rate of return that will be more attractive to the investor whose funds it solicits. The recovery that began in July has since lifted the business index about 10 points to the best level since mid-Summer of 1933. A slight gain in it was made this week in spite of the small recession in iron and steel pro- duction pending the renewal of activity in the automobile trade when new models will be under construetion. | Monetary Problems Grow. | stanley’s The monetary problems of the lead- ing European nations have been aggra- vated by the unexpected turn of events in North Africa. Great Britain must send a fleet to the Mediterranean and strengthen her colonial frontiers and keep within the military and naval budget adopted last Winter. Already she is preparing a schedule of new taxes to meet war costs. France will have greater difficulty the market has been the profit-taking that has occurred and the shifting less uninterrupted rise throughout the | lllinois Bell Refunding Ex- pected to Be First of Long Procession. BY FREDERICK GARDNER, Associated Press Financial Writer 8. E. C. officials are looking forward to another landmark in the commis- sion’s brief history—the first filing of a new issue under sponsorship of Mor- | gan Stanley & Co., the underwriting offshoot of J. P. Morgan & Co. The presence of Harold Stanley, senior partner of the new securities firm, at the commission’s offices yes- terday was accepted as a portent of early registration of some important issues for corporations long identified with the house of Morgan As announced at the commission, visit directly concerned | plans for registration of an issue of the Illinois Bell Telephone Co.. one of the chief subsidiaries of American | Telephone & Telegraph. { Regarded as Forerunner. ‘The Illinois Bell issue was described as likely to be the forerunner of a procession of large refunding opera- tions for telephone units and other large utility and industrial corpora- tions which formerly sold securities ‘The bonds were offered | | Show in. early November - sa” that | commandeering of private foreign in- | dealers in various sections can show the new models at the same time ! they are displayed at the New York exhibition. {“STREET” REGRETS | KENNEDY’S PASSING | Securities Exchange Chairman Used Rare Experience to Make Law Workable. By the Associated Press. | NEW YORK, September 21.—For the passing of Joseph P. Kennedy !from the Wall Street scene as head expressed undisguished regret. It has been something less than a secret that to Wall Street many of | the New Deal innovations have been distinctly unpalatable, curities and Exchange Commission fell into that category at its incep- tion. That it was later not only accepted but in most quarters even praised as | a constructive influence was largely due to the administrative capacities ?r ’Kennedy, financial men generally eel. The combination of a wide knowledge of how the machinery of the securi- ties markets operated was combined, in Kennedy, with the willingness to use this knowledge to make market regulation a workable thing, most financial men say. | vestments and balances, and the rigid control of imports. Credit facilities | for Italy appear to be definitely lack- ing in the only centers where credit could be made abundantly available— London, Paris, or New York. \LEAD OUTPUT GAINS | SLIGHTLY IN AUGUST By the Associated Press. | production in August totaled 34,856 | tons compared with 34,424 in July NEW YORK, September 21.—Lead | in reducing the deficit that has|throught J. P. Morgan & Co. plagued her for the last three years| Moreover, Morgan Stanley & Co. when she has to consider the likeli- | are expected to introduce to the finan- hood of trouble at her German and | cial world new issue prospectuses for Italian boundaries. | advertising prepared in accordance The October meeting of the French | with the commission’s regulations. Parliament may be in a war atmos-| The commission formulated rules phere. Even Holland intimated mis'i!or such advertising some time ago, week that precautions were necessary | but security houses, officials said, so in view of the rming news from |far have confined their advertisements the south of Europe. | to mere announcements of new is- More Gold From Europe. | sues. While the present flow of gold to | this country, amounting to about | Billion May Be Added. Providing the bond market remains $80,000,000 since it started last week, of the S. E. C., most financial men | and the Se-| and 27,328 in August, 1934, according | to (_he American Bureau of Metal | pytch guilder and the French franc Statistics. | in their relation to the American dol- Shipments were 38,195 tons in Au- | |ar and reflects the progressive charac- gust, compared with 34575 in July | ter of the economic and social disease | and 33,606 in August, 1034. | from which Holland and France are is mainly due to the disparity of the at the end of August totaled 227,583 | 5 fiight of capital fi war-dist; short tons compared with 230,915 at | Burape s tho Dnited Statee o the end of July and 234312 at the | American securitis have been | end of August last year. | attractive to British, Dutch, Swiss, | Prench and Scandinavian investors at Stocks of lead in the United States | suffering, a portion of it represented | favorable for large-scale refunding | operations, some S. E. C. experts think | another billion dollars may be added | to the total of new securities registered | with the commission before the end of the year. To date, the total is nearly $2,000.- 000,000, including registrations under corporation reorganizations. The big | refunding movement which contributed the bulk of the filings did not get un- der way until March, with the Swift | & Co. issue. |CLEARING HOUSE ISSUES REPORT AT NEW YORK By the Associated Press. NEW YORK, September 21.—The weekly statement of the New York | Clearing House shows: Total surplus and undivided profits, $731,624,400 (unchanged); total net demand deposits (average), $56,992,- 000 (increase); time deposits (aver,- age), $2,623,000 (decrease); clearings week ending today, $3,806,113,509; clearings week ending September 14, $3,245,462,331. By the Associated Press. | NEW YORK, September 21.—The Associated Press weekly index of in- dustrial activity was slightly lower | today at 70.1, compared with 70.2 | last week and 58.0 for the comparable week a year ago. ‘The reduced level of automobile output—manufacturers are still in the throes of preparing for new mod- | els—again was the most important | factor in the decline. | Steel mill activity and electric pow- er production received seasonal set- ly reflecting the transition staged in the automobile industry. Cotton A Industrial Index Registers Slight Recession in Week | manufacturing activity, on the other hand, improved somewhat. Total carloadings were up sharply more than seasonally, with gains not only |in the coal classification, but in the merchandise groups as well. The index, based on 1929-30 as 100, |and adjusted for seasonal variation, | follows, with the corresponding index figures for its component parts: | Latest. Prev. | week. week. | Composite index ____ 70.1 70 Automobjle production *14.6 Steel mill_activity __ Cotton mfs. activity- lec. pwr. production Residential building Total carloadings - *New 1835 low, 7 15 6 86 1014 476 643 * 1 4. | various times since 1929. In volume, | the present dollar holdings of «these | | countries is modest compared with | | those in 1914, in which Germany then had an important share. So, while a | The advent of Morgan Stanley in the securities field and the prospect of large refunding issues for American Telephone subsidiaries caused the 1935 estimate to be revised upward in 8. war that might involve other conti- | nental powers than Italy would dis- turb the American market seriously for a time, the amount of liquidation growing out of it could readily be absorbed at a lower level by American investors who are today withholding their funds awaiting a better buying basis than is now offered. Money rates would probably advance here, with some effect from this on all high-grade bonds. In fact, there is already a sign of firmer time rates, but only in anticipation of more do- mestic borrowing. Commercial paper is being offered more freely by dealers than in several years. This is an accepted sign of business recovery. (Copyright. 1935. by the North American Newspaper Alliance. Inc.) RAIL OUTLOOK GOOD FOR AUTUMN MONTHS By the Associated Press. NEW YORK, September 21.—The railroads are approaching the Fall months of 1935 with clearly defined prospects of improvement, according to a survey by Poor's Publishing Co. The forecast is based on the prospect of further recovery in the heavy in- dustries, on the favorable harvest outlook and on the benefits to be derived from freight rate surcharges. ) E. C. quarters. LARGER APPLE YIELD By the Associated Press. ‘WINCHESTER, Va., September 21. —An apple yield of 10 per cent above last year's crop was predicted by Dr. A. B. Grove, plant pathologist at the Winchester Research Laboratory. Fruit in the Winchester section is maturing well, Dr. Grove said. Packing is now under way for Grimes and Delicious varieties, with the peak to be reached in about 10 days, when the harvesting of Yorks begins. BOND CLOTHING FIRM ACQUIRES NEW PLANT B. J. Friedman, president Bond Clothing Co., which has 36 stores, including one in Washington, an- nounces that on account of business expansion the firm has acquired a new factory in Rochester, N. Y., con- taining 175,000 square feet of floor space. The new plant will furnish employment for 3,000 workers, and will have every modern convenience known to the clothing industry. { SEEN AT WINCHESTER gL (0’1?'!:‘1(' NEW YORK, September 21 {#).—Commodity prices have im- proved substantially during the past week. Wheat (No. 2, red, New York) advanced 7% to 1103 yes- terday. Cotton (middling New York) closed at 1095 against $10.75 last Priday. Hog tops fell back 15c to $11.85 per cwt.—Copy- right, 1935, by A. P. Wirephoto. VALUE OF EXPORTS i REVEALS UPSWING | Increase of 6.8 Per Cent in July | Brings Seven-Month Total | Near Last Year's Mark. Special Dispatch to The Star. NEW YORK, September 21—The value of merchandise exported from the United States amounted to $173.- 000,000 in July this year as against | $162,000,000 in the same month last year, an increase of 6.8 per cent, ac- | cording to an analysis of the foreign trade situation by the Alexander Hamilton Institute. This gain in July | was nearly sufficient to offset the de- | crease from a year ago during the | | first six months. Exports during the | first seven months were valued at | slightly more than $1,197,000,000 this | year as compared with slightly less | than $1,198.000,000 Iast year. | The invisible trade balance, which ran heavily against foreign countries during the first six months, moderated in July, making it necessary for for- eign countries to pay the United | States only $50,000,000 in this ac- | count as compared with a monthly | average of $142,000,000 during the | first six months. At the same time, the value of | merchandise imported into the United | States in July amounting to $178,000,- 000, showed a sharp increase over both the previous month and over| | July of last year. As a result, funds | derived from merchandise imports | supplied foreign countries with $128,- | 000,000 with which to finance pur- chases of merchandise from the United States. CURRENCY RATES .Leading Currencies Steadier r but Gold Funds Still Flow to America. By the Associated Press. Leading foreign exchanges displayed a much steadier tone yesterday as a | little more cheerful view of the Euro- pean war situation appeared despite Rome's rejection of the League of Nations peace proposals. It was gen- erally felt that a loophole had been left open for further negotiations. In addition to a mildly hopeful at- | titude toward the Italo-Ethiopian con- | troversy. the British pound was said to have been helped somewhat by trade demand. This unit showed a slight improvement in London at 4.917% to the dollar. In New York later sterling ! closed at $4.913,, up ' cent. Although most of the gold cur- rencies held their own, the guilder, at New York, slipped back .05 of a cent to 67.68 cents. Holland funds. however, were still above the point at which shipments of gold from Amsterdam could be made profitably. 1’ At the same time gold funds con- tinued to point toward America. A further $21,854,000 of the yellow metal was engaged for shipment here by the New York bankers. Of the total. $9.539,000 was from England, $9.486,000 from France and $2.829,- 000 from Canada. The controlled Italian lira was off 00’2 of a cent at 8.13 cents. While the Paris market was closed as usual on Saturday, the franc at New York finished with a gain of .00's of a cent at 6.583; cents. At this rate the dollar was at a premium of 70-100 of 1 per cent, compared with 72-100 Friday. at a discount of 1-100 of 1 per cent. TANNERY PAYS MORE. LURAY, Va. September, 21 (Spe- | cial) —The Deford Tannery, which for | several months has been working at capacity, again has raised the price for chestnut wood. Recently.it ad- vertised at $3.80. It is offering $4.20 per. cord. | ORGANIZATION SOUGHT. NEW YORK, September 21 (#).— Definite steps to organize a Food and Grocery Conference Committee along national lines were taken at a recent meeting here of representatives of leading manufacturing, wholesale and | retail organizations in the industry. By the Associated Press. RALEIGH, N. C., September 21.— Tobacco growers of Eastern North Carolina voted here today to send a committee te Washington to seek about in the State by low prices. Around 2,500 growers approved a six-point program outlined by a sub- committee, as well as four auxiliary proposals. The auxiliary points included asser- tion that regardless of prices pre- viously paid, prices last week were | below parity levels; recommendations farmers not sell tobacco for less than 6 cents a pound:; naming of a com- mittee to go to Washington for | and ~manufacturers, representatives, | and possible closing of warehouses three to five days for a whirlwind sign-up campaign of contracts. The subcommittee letter, addressec: to Secretary of Agriculture Wallace 4 , some solution for the situation brought | conferences with A. A. A. officials| Tobacco Growers I;lan Parley With A. A. A. on Low Prices and J. B. Hutson, A. A. A. tobacco section chief, was read and discussed | before being approved without oppo- | sition. It recommended: 1. Immediately complete contract | sign-up for continued control; 2. Improve acreage allotment plans, | consider viewpoint of growers and pro- tect them against excesses due to | weather conditions, etc.; 3. Immediately have conferences | between growers and manufacturers seeking co-operation; 4. Make definite announcement now that the 1936 crop will be cut 25 to 30 per cent of the bases established in the contract; 5. Set up a fair system for esti- | mating parity; 6. Adopt some method through which contracting growers can more | readily express themselves and pre- sent their problems to the A. A. A. | for consideration. A month ago the dollar was | Movement of Merchandise Hits Best Mark Since November, 1931. LOADINGS TOP 700,000 OR PROFIT-LOSS POINT :Increased Production at Cotton and Wool Textile Centers Hailed by Observers. BY RADER WINGET, Associated Press Financial Writer. General business activity assumed a fast pace last week, and industrial operations were well maintaired, with the movement of merchandise to pro- duction and consuming centers reach- ing the best levels since November of | 1931, Reports on retail and wholesale trade from almost all sections of the Nation indicated substantial advance- ment. Warm weather cut volume in a few centers, but the development was regarded as temporary. For the first time in nearly four years freight carloadings reported by class 1 railroads passed the 700,000 mark, a level looked upon as the dividing line between profit and loss if maintained over a reasonable period. Loadings were 700,357 cars for the week ended September 14, compared with 592,786 for the previous week, which included the Labor day holiday. Increased production in cotton and wool texture centers was noted by ob- servers, and the Associated Press index of cotton manufactwring activity was 874, against 862 for the previous week. Consistent Progress Seen. The Department of Commerce in its survey of 34 key cities for the week ended Wednesday declared “Retail and wholesale trade maintained con- sistent progress in all sections of the coupiry. * = » “Stimulated by good Fall shopping weather, all lines of retail trade were reported moving into greater volume, with wearing apparel taking the lead. “However, the buying of furniture, rugs and other household equipment continued in large volume. “Wholesale trade foliowed the gen- eral trends of retail.” In the large wholesale centers mer- chandisers asserted reorders of mate- rial from most sections continued higher, and Middle Western represen- tatives were heartened by advancing wheat prices. Automobile manufacturers con- tinued to lower production levels in | preparation for 1936 models to be in- troduced within a few weeks. Despite the drop in demand for steel from that source and the lower takings by tin platec manufacturers, operations in the steel industry held to a decline of only 1.4 percentage points at 48.3 per cent of capacity. Rail Needs Studied. Those in the steel trade said the strength was evidence of growing de- mand from miscellaneous sources, and some sighted the placing of railroad equipment orders on the evidence of sharply higher carloadings. Most bullish announcement of the week was that of the United States Steel Corp. giving details of its pro- jected $140,000,000 expansion pro- gram. For the first time in many months, there were individual reports from scattered parts of the country of sub- stantial increases in employment re- sulting from the general expansion of business. Some increases, however, were of a seasonal nature Coincident with nigher wheat mar- ket prices, metals reached upward in price. Opfnion was divided on whether the advance was caused by “war reports” or came as a result of better business. Importers in New York reported a new forward surge in their line, an action which they said was the first general improvement since the de- pression. A survey of the machine tool indus- try showed August business at 125.8 per cent of the 1926 average level, the best month since 1929 and 84 per higher than the corresponding period of 1934 Individual Reports Given. Individual reports from Federal Re- serve districts follow: BOSTON.—The cotton goods mar- ket in New England was encouraged by heavy sales of staple goods and firm prices. Sales in some lines equaled production. The demand for wool was characterized as slower, al- though up to an average week in volume. Hides, skins and their semi- manufacturers continued to advance. NEW YORK.—Retail trade was brisk in the metropolitan area at a | level 10 to 12 per cent over the same period of 1934, and dry goods sales were the best of the year. Orders to { wholesalers from other centers were }hmher in most lines. Steel operations | in Buffalo were up 2 percentage points at 37.per cent of capacity. | PHILADELPHIA. — Retail cent trade moved into new high ground on top of new gains during the first week of September. Department store sales during September 1-15 were about 20 per cent over the 1934 period. Cool weather was a factor in quick-ended demand for Fall merchandise. CLEVELAND.—The Department of Commerce said Cleveland retail saw for the last three weeks nave beer ::t | to 15 per cent ahead of last year, a: industrial activity continued durinz the week because of production of materials for automobile makers. Richmond Reports Activity. RICHMOND —Declaration by a hosiery official that “the industry is simply overwhelmed with business” |led indications of substantial indus- | trial improvement in the fifth dis- trict. Baltimore reported screp steel plants at capacity and Washington retail trade pushed steadily upward. OHICAGO —Reports _on industrial ace tivity were favorable. Several large manu- tacturers increased personnel. Steel operae tions held steady. The pig iron and come business_was strong, with advance buyin | in the first half of September -u.m.'fl | 8t double that of the corresponding peris of March. |