Evening Star Newspaper, September 29, 1935, Page 85

News of Markets Pages 1 to 4 Part 5—12 Pages D. C. LEADERS BACK FROM 5TH WORLD BULDNG PARLEY Bergmann, Baltz and James Point to Growth of Co- " operative Groups. CITE GRADUAL RETURN TO PRIVATE HOUSING Delegates Believe Government Projects Have Proven Too Costly and Impractical in Britain. BY EDWARD C. STONE. Carl J. Bergmann, president of the District of Columbia Building and Loan League; Edward C. Baltz, a past president and director for the fifth district of the United States Building and Loan League, and C. Clinton James, past president of both the District league and the United States league, have just returned from the fifth International Con- gress of Building Societies, which was held in Salzburg and Vienna the first week in September. 1In addition to attending the congress, their six weeks' tour included visits to the great building societies in London and surrounding territory and inspection tours of the most notable of the housing projects waich have been undertaken in recent years by England, Sweden, Norway, Austria and Italy. The congress was attended by delegations from all over the world, reports being made by the represent- atives of 12 countries in addition to the United States. All countries re- ported progress in the growth of the co-operative building and savings movement, with United States and Great Britain far in advance, both in number of societies and in assets and lending activities. The Bfitish building societies, whose report showed a remarkable record of growth and safety ever since their| inception in 1781, now have over three | hillion of assets, while the associations | of the United States, started 50 years later, reported assets totaling approxi- mately $9,000,000,000. Private Financing Favored. In a number of the European coun- tries, notably Austria and Hungary, according to the reports, the progress of the movement has been temporarily slowed down because of recent restric- tive legislation, which was found necessary -to prevent unsound prac- tices developing and to cHirt the course for the establishment of the movement on true co-operative prin- ciples. Association leaders in these countries expressed the belief that such legislation would prove bene- ficial and greatly assist the future progress and development of the! movement. | In commenting on the various hous- | ing projects inspected by the dele- gates, Mr. Bergmann said that, while impressed by the magnitude of many of the developments undertaken by the different governments, the Ameri- can building and loan men felt that, in most cases, the experiments of government in the home financing field had not been eminently success- ful. “In Great Britain, especially, these operations have proved so costly and impractical that the whole trend now is to turn the problem of home financ- ing, except for the strictly slum clear- ance work, back to the privately or- | ganized, co-operative building societies, as the most efficient, practical and economical way to finance the con- struction of small homes,” he said. ‘Trade conditicns in Washington for the week ending last Wednesday are summed up as follows in Commerce Department’s weekly survey review covering 33 important cities: “Department store sales decreased 13.1 per cent from the previous week but increased 22.2 per cent over corre- sponding week of last year. Bank clearings were down 10.2 per cent from preceding week and up 25 per cent from same week of 1934. Build- ing permits decreased 37.8 per cent from previous week but were three and one-fourth times greater in value than corresponding period last year. In- flux of visitors as reflected by number registered at the Smithsonian In- stitution showed 34,914 for past week, 51,315 for preceding week and 28,345 for corresponding week of 1934.” Influenced by good weather condi- tions, Baltimore reported the volume of retail trade comparing favorably with the previous week and the cor- responding period a year ago. Norfolk business was better than the previous week but behind last year. Deposits Up 12.9 Per Cent. ‘The Federal Deposit Insurance Corp. reported yesterday that deposits of the 22 insured banks in the District of Columbia increased in the year ended June 30 to $266,563,000, an advance ©f 12.9 per cent over the same date in the previous year. As noted elsewhere in The Sunday Star, demand deposits aggregated $137,032,000 and holdings ©of time deposits $103,352,000. Capital funds of insured commer- eial banks in the District were shown to have had a book value of $41,067,- 000 at the time of this call. Cash in vault and other items in their reserve accounts totaled $86.919.000. while their loans and discounts amounted to $82,565,000 on June 30, 1935. Throughout the country 14,173 in- sured commercial banks showed a de- posit increase of 12.5 per cent, slightly {inder the figure for Washington. The same report reveals that deposits in 8322 insured commercial banks in Vir- ginia gained 10 per cent during the year, reaching a total of $457,784,000. Total deposits of all types in Mary- Jand commercial banks on June 30, $464,487,000, were 1.7 per cent greater than on the same date in 1934. At the same time West Virginia com- mercial banks reported a gain of 46 cent. Potomac Electric Power 5} per cent preferred stock sold on the Washing- ton Stock Exchange yesterday at 113 on & 10-share transfer, price un- changed. Washington brokerage houses go into Winter time tomorrow, New York Stock Exchange quotations starting off Q 10 o'clock, New Directors C. & P. TELEPHONE COM- PANY ENLARGES BOARD. John Saul (upper) and Harry L. Rust, jr., who have just beén added to the board of the Chesa- peake & Potomac Telephone Co. Mr. Saul is president of the Wash- ington Board of Trade, president of the B. F. Saul Co. and a di- rector in the American Security & Trust Co. Mr. Rust is treasurer of H. L. Rust & Co,, director in the Washington Title Co. and the Acacia Mutual Life Insurance Co. ESTIMATES PLACE. TOURIST SPENDING AT FOUR BILLIONS Auto Association Predicts 37 Million Travelers by End of Year. BY FREDERICK GARDNER, Associated Press Financial Writer. A preliminary survey by the Amer- ican Automobile Association has fixed total tourist expenditures for 1935 at $4,000,000,000. By next January 1, the association estimated 37,000,000 persons will have traveled on vacation tours in about 11,000,000 automobiles. “All preliminary estimates as to the volume of traffic during the 1935 travel season have had to be revised upward,” the survey said. “There has been an increase of approximately 15 per cent in the number of highway vacation tours over the large volume of last year.” All Sections Benefited. With gasoline consumption for the year indicated at “the highest level on record,” the asscciation said that “practically every section of the coun- try has benefited from motor touring and from tourist expenditures.” Citing that the estimated tourist expenditures are “only slightly below the Federal Government’s work relief appropriation,” the report added that “these expenditures cannot fail to have a definitely stimulating effect on the business of the country from now until Christmas.” ‘The total $4,000,000,000 figure was broken down as follows: ‘Transportation costs (gasoline, ga- raging, repairs), $800,000,000; hotels and other accommodations, $800,000,- 000; retail stores for incidental pur- chases, $1,000,000,000; food, $830,000,- 000; theaters and other amusement, $325,000,000; confections and refresh- ments, $245,000,000. Dollars Flow Quickly. “No other type of expenditure flows more quickly througa the channels of commerce and trade than does the tourist dollar,” the survey said. Travel over the Canadian border was reported “unusually heavy” with motor vacationing abroad reaching “glmost phenomenal proportions, be- ing more than half again as large as last year.” Movie Firms in FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C, SUNDAY MOR) WAR FEARS EXERT BIG INFLUENCE ON SECURITY TRENDS Both Markets and Business Extremely Cautious in Critical Period. TRADE LEADERS BELIEVE DEPRESSION IS OVER Slackening in Recovery Progress Held Temporary—Employment Continues to Mount. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, September 28.—The movements in securities this week have hinged on the political devel- opment abroad. As the tension eased in the rela- tions between Great Britain and Italy, after unsettling the markets of the week previous, traders plucked up courage and repurchased some of the stocks sold when war between two great European powers was threat- ened. Likewise bonds became firmer. Pressure was lifted from the United States Treasury group. port of the investing public for their offerings of high-grade and low- coupon public utility refunding issues, Commodities that are susceptible to rumors of war quieted down, with quotations primarily affected by the normally controlling factor of supply and demand. This was the com- plexion of the market until Thurs- day, when the Council of the League of Nations made its momentous an- nouncement. In some directions the reaction in securities and the uncertainty as to what might come of the negotiations &t Geneva have produced a lull in the business world. This is no more sur- should have reacted after a six-month appreciation amounting to 40 per cent in the averages. Some Indicators Higher. The degree of industrial decline and of tapering off in dise dis- tribution is, however, slight. iron and steel trade it is represented by & ratio of ‘5% per cent of pro- duction to capacity, against 52 per cent the week previous. On the other hand, the output of electric power is reported as the second highest on record and 13% per cent more than for the same period of 1934. Railroad car loadings are about 10 per cent greater than in September last year. Bank clearings show a 20 per cent expansion over the figures of the comparative 1934 period. In six man- ufacturing centers, Philadelphia, Buf- over 21 per cent; in the marketing centers of Minneapolis, Kansas City and Omaha, 18 per cent; in the coast cities of San Francisco, Seattle and Portland, 32 per cent, and in Rich- { mond, Atlanta and New Orleans it | averaged 10 per cent above 1934. Recovery has slowed down a bit, but it will proceed again at an active pace. Testimony to this effect is available in many quarters. The gen- | eral sentiment of business men seems |to be that the depression is over. They are making their future com- | mitments on this premise. So con- | servative’ a group as the Advisory Council of the Federal Reserve Board went on record this week to the "effect that business conditions tcday were the brightest since 1929. Donald Richberg, former head of the N. R. A., states that “We are in a tide of improving business” and Joseph P. Kennedy, who has just retired as chief of the Securities and Exchange Commission, declares that the rise in securities is mainly due to the state of business. Pay Rolls Are Expanded. Naturally, employment has enjoyed the benefits of a higher business index. In August, 30 the Secretary of Labor reports, there was a gain of 180,000 in the number of workgrs in private industry and an expansion in pay rolls of 6.7 per cent. This brings the total of the unemployed below 10,000,000 for the first time this year. Still, the figure is so high that it constitutes the greatest and the most stubborn problem with which the ad- ministration has to deal. The unknown quantity in the busi- ness outlook is the foreign situation. If the crisis should become more acute it would mean a temporary derangement both of domestic in- dustry and of American markets for securities. For this reason there is at present a mood of caution and another curtallment of speculative contracts, for it would be a brave operator who would commit himself to engagements at one of the most critical moments in European history. The currency crisis which has de- veloped again in Holland suggests (Continued on Fourth Page.) New Hands, Position Strengthened Greatly Special Dispatch to The Star. NEW YORK, September 28.—Dras- tic capital reorganizations are placing the leading motion picture companies in the strongest position they have occupied for years, according to a new survey of the motion picture industry issued by Poor's Publishing Co. “The essential character of this form of amusement has been demon- strated by increasing theater attend- ance under depression conditions,” the survey points out. “In the Fall and Winter of 1934, when more than 10,- 000,000 adults were unemployed, 80,- 000,000 weekly paid admisisons were recorded by motion picture theaters. “Few industries rivaled the motion picture business in its open-handed theater-ownership program of the boom years. Pixed-charge obliga- tions, including subsjdiary company preferred stocks, of the ‘Big Five’ in- creased 237 per cent, or from $121,- 846,000 to $409,855,000 during the ex- pansion period. “The collapse in motion picture securities during the depression years furnished an opportunity for new blood to acquire control of three large units at a nominal cost. “Chase National Bank is still the largest Fox stockholder, but Atlas Corp. and a British group have an important voice in the management. G. E. Otterson, formerly chief execu- tive of American Telephone & Tele- graph’s sound film division, has be- come president of Paramount. Radio Corp. of America and the Rockefeller family are now the largest stock- holders 6f Radio-Keith-Orpheum. are placing most major motion picture companies on a sounder footing than seen in years. The leading com- panies are enjoying the most satisfac- tory earnings sinee 1930.” Underwriters again sought the sup- | and with a fair amount of success. | prising, in view of the steady and | rapid advance that had taken place | since July, than the fact that stocks | In the | falo, Pittsburgh, Cleveland, Cincinnati | and Detroit, the average gain was | CHAINS GET SHARE OF STEADY UPTURN IN RETAIL SALES Pre-Fall Consumer Buying Held Most Generous in Five Years. DRUG DIVISION MAKES BEST AUGUST SHOWING Store Promotions Again Produce Results as Each Customer Purchases More. BY J. G. DONLEY. 8pecial Dispatch to The Star. NEW YORK, September 28.—Al- though they have been legislated against, inveighed against, and in some instances taxed to the point of confiscation, the chain stores have come through the depression with re- markably few casualties. And now they are sharing in the increasing tendency to spend. What is helping the chains, along with other merchandising units, is not only the greater willingness on the part of the average person to pur- chase necessities, but the loosening of purse strings for the purpose of buying extras and small luxuries. In the dark days of the depression it was quite the rule for many cus- tomers to walk into a store with mind set on the purchase of one needed item. The shopper would go to the department or counter where that item was for sale, make the purchase and walk out of the store, blind to the blandishments of counter displays and point-of-sale advertising on all other merchandise. Promotions Bring Results. ‘That meant small sales per custo- mer and many customers were re- quired to cover overhead. But nowa- days store promotions are beginning to produce sales again, and the cus- tomer who enters to make one pur- chase is likely to leave the store with a number of packages. A woman may buy gloves, along with the new bag; hosiery with the new shoes, or the grocery customer may pick up a cake. And it is that sort of cumulative pur- chasing that builds profits. All sections of the retail chains en- joyed in August the most generous pre-Fall consumer buying in five years, according to the current review of Chain Store Age. The average in- crease in sales for the entire group of companies covered by tha. publica- tion’s’ index was better than 5 per cent. “Sales increases by class groups ranged from 3 to 11 per cent over the corresponding month of 1934,” says the review, “with -some individual company gains considerably greater.” As reflected by the index, the state of trade in the field advanced to a new high level of activity for the year. The August index was 98.0 per cent of the 1929-1931 average. This compares with 96.4 in the pre- vious month and 93.0 for August,| 1934, Drug Group Leads, The drug group, comprising two | leading chains, showed the greatest percentage gain over August, 1934, of any group, with an increase of 11 per cent. The index for August this | year for this group was 114.0, against | 108.8 in July and 102.0 in August, last year. At the close of last year and in the early months of this year, the drug chain index stood close to 120 per cent of the 1929-1931 average. ‘The review points out that, except for a minor interruption, the index of sales for the grocery chain group has advanced steadily since October of last year. The August index was 92.5, as compared with 91.0 in July and 872 in August, 1934, The 5-and-10-cent-to-$1 department chain group showed an index of 101.0 in August, against 98.0 in the same month last year, after making adjust- ment for the extra Saturday in the month this year. The shoe group index was 104.0 in August, compared with a revised figure of 1020 in July. There was no change in the sales index for the apparel group of three chains, but the indication is favorable in comparison with a decline between July and Au- gust last year. (Copyright. 1935.) CRUDE OIL STOCKS DROP DURING WEEK Further Increase in Production Seen by. Bureau of Mines in Weekly Review. By the Associated Press. The Bureau of Mines reported stocks of domestic and foreign crude oil at the close of the week ending September 21 totaled 306,637,000 bar- rels, a decrease of 682,000 barrels from the previous week. The decrease was made up of 547,- 000 barrels of domestic crude and 135,000 barrels of foreign. ‘The bureau said current reports of the industry for the week indicated a further increase in production, a material decline in imports and an increase in crude runs to stills. Total demands for crude for the week averaged 3,011,000 barrels daily, which the bureau said marked the third successive week in which demand had exceeded the 3,000,000 barrel mark. Daily average production was esti- mated at 2,835,000 barrels, or 20,000 above the previous week’s average. Daily average imports declined from 114,000 to 79,000 barrels. Daily average crude runs to stills were about 2,830,000 barrels or 130,000 barrels above the level of the previous week. LARGER NET REPORTED BY PENNSYLVANIA BELL By the Associated Press NEW YORK, September 28.—Net ting income of the Bell Tele- .phone Co.. of Penmsylvania totaled $1,007,939 .during August compared with $974,666 in the same month s year ago. a HEREH, S0ME MORE/ (™ FORE~ (LO5INE ON %00 & WEEK! SIDDONS CHEERED BY BANK DECREASE Urges Additional Mergers to Strengthen Finance Structure Further. In an address on banking before | ‘Washington Chapter, National Asso- ciation of Cost Accountants, Frederick P. H. Siddons, secretary of the Amer- ican Security & | Trust Co.,, de- clared that the| banking structure | of the country has been tre- mendously, strengthened| since 1932 by a reduction in the| number of bank- ing institutions. He declared the number of banks was one of the greatest contrib- uting causes of 50 many failures. At the beginning of 1932 there were about 30,000 banks. The number has been reduced since then to approxi- mately 15,000 through consolidation, wbsorption and partly through individ- ual failures. To further strengthen the banking structure Mr. Siddons urged more consolidations of the stronger banks with the weaker and establish- ment of main or parent banks with many branches, all privately owned, with adquate Federal regulation. Discusses Safeguards. In discussing safeguards for de- positors included in recent banking! legislation Mr. Siddons pointed out | that the Federal Government, through | its agencies, now has the power to re- move any officer or director of a bank which is a membBer of the Federal Reserve \system or the Federal De- posit Insurance Corp. who has dem- onstrated inability to perform the functions of his office. The speaker then explained the advantages of the Federal deposit insurance, expressing the opinion that before long depositors themselves will be required to pay for this protection. In the event that reserve funds of | banks are decreased,”the Federal Re- serve Board now has the power to increase the legal reserve considered | necessary for its members, thereby preventing any such a situation as confronted the country early in 1932, Mr. Siddons said. Talks on Credit Control. Edward Stone, chief, Project Aanly- sis Division, Resettlement Administra- tion, conducted a forum discussion which brought up the control of credit intended to overcome the extreme ups and downs of business cycles. Mr. Stone discussed the general credit structure outside of bank credit, claiming that installment and time credit extended to buyers should also be placed under some form of control. Dr. William M. Deviny, Catholic University, is president of Washington Chapter this year, vice presidents be- ing Walter F. Raymond and C. Mil- ton Clark. John L. Mitchell, Shan- non & Luchs Co, is secretary, the monthly meetings being open to any one interested in accounting. F.P. H. Siddons. TOBACCO INDEX DOWN. NEW YORK, September 28 (#).— ‘The average price of United States type 31 air-cured burley tobacco dur- jag the week ended September 28 was 16.1 cents a pound, compared with 16.7 cents in the preceding week 94 cents in the same week a ago, according to H. economist. and year A. Stich, tobacco | By the Associated Press. ING, SEPTEMBER 29, 1935. JUST ANOTHER JOB FOR UNCLE SAM Classified Ads Pages 4 to 12 MODERN dorraGe BOATING BATHING WESTPORT ¢ONN (Copyright, 1935, New York Tribune, Inc.) RESIDENTIAL BUILDING CORRECTED FOR SEASOMAL VARIATION AND MATERIAL COST 1929-/930 = 100 NEW YORK, September 28— Residential Wwilding resumed its upward course this week. The As- sociated Press index, adjusted for seasonal and building material costs, moved ahead to 429 as compared with 426 in the two previous weeks and 16.2 the year before. The index is based upon F. W. Dodge Corp. figures.—Copy- right, 1935, by A. P. Wirephoto. (OG- COLA SEEK STOG SLT-AP Board Will Ask Holders to Approve Plan for Four Million Shares. WILMINGTON, Del, September | 28.—The board of directors of the Coca-Cola Co. today voted to Tecom- | mend to a meeting of stockholders on | October 27 a split-up of the present outstanding 1.000,000 common shares into 4,000,000 shares. If approved the increased capital stock will be dis- tributed among common stockholders of record at a date to be fixed later. The common stock, listed on the New York Stock Exchange, closed to- day at $244 a share, up $1 from Fri- | day’s quotation. The action of the directors had been forecast several days ago and was at-| tributed principally to the fact that, at the present high per-share quota- tion, trading in the issue is greatly' restricted. Officials of the company were said to believe that a wider mar- ket would be more beneficial to share- holders generally. ‘The existing common stock is with- out par value, although it is carried on the company’s balance sheet at $25 g amounted to $45,955,458 as of De- cember 31, last. BRITISH MARKETS REMAIN HOPEFUL Steel, Aircraft and Other Arms Industries Work at Top Speed. Special Dispatch to The Star. NEW YORK, September 28 —Cables and radio dispatches to Business Week give the following survey of business abroad for the week ending today: LONDON.—“War fears have caused markets to fluctuate widely and have retarded stock market business, but the undertone is still hopeful. “Chancellor Chamberlain’s straight warning that more vigorous rearming is needed makes sanctions a reality, and implies that there will be heavy budget expenditures unless he is per- suaded to favor the much-canvassed defense loan, which the city would welcome as an alternative to higher income taxes. “In the meantime, iron, steel, air- craft and other industries tied into military program are working at top PARIS.—“Except for the announce- ment of the 1935 budget estimate, the week has been very uneventful as far as business is concerned. “Steel is slightly more active; tex- tiles are a little more sluggish, except silk, which is booming. “Lyons, the silk center, has, how- ever, not lost its head with this first spark of profitable activity in several years and has decided to maintain prices’ as far as possible so that the Paris dressmakers will utilize silk to the fullest extent in the new styles.” BERLIN.—“Despite its isolation, the German bourse, following closely the week's European news, shifted | from dark pessimism to questionable optimism. “Though in the event of economic sanctions Germany is likely to take | advantage of the situation to increase its supplies to Italy, especially of coal, steel and chemicals, Berlin is quite aware that exports are necessarily limited by Italy’s ability to pay in merchandise under the clearing agree- ment and the scarcity of other war materials in Germany. “The public cheered up noticeably when the August export surplus was announced. It cuts the trade deficit for the first eight months of the year to about one-third the figure for last year, and rouses the hope that, after all, Dr. Schacht’s rigorous program to boost exports may be working.” COTTON SEAT LOWER. NEW YORK, September 28 (P).—A New York Cotton Exchange member- ship has been sold for $9,000, a de- crease of $2,000 from the last trans- action. Industrial Index Registers Sharp Advance During Week By the Associated Press. NEW YORK, September 28.—Indus- trial activity, as measured by the Associated Press weekly index, ad- vanced sharply this week. The index stood at 71.0, compared with 70.1 last week and 56.5 in the same week last year. Better than seasonal performance was registered by every component of the index save total carloadings, Automobile output recovered some- | what from last week’s low point as production on new models began. Steel mill activity, cotton manufac- turing and electric power production also improved. The index, based on 1929-30 as 100, and adjusted for seasonal variaticn, follows with the corresponding index figures for its component parts: Year which gained slightly less than the| o, seasonal expectancy. ‘The residential building index pushed into new high ground for the | g ASiT" year as volume of showed & BUSINESS MOVES WITH INDUSTRY IN BRISK EXPANSION Most Major Trade Indices Swept Still Higher in Last Week. WARM WEATHER SERVES AS CHECK IN MIDWEST Later Change to More Seasonable Temperatures Turns Many Losses Into Gains. BY RADER WINGET, Associated Press Pinancial Writer. Business and industry stepped brisk- ly ahead last week in the country as a whole, with most major indices of economic expansion moving into high- er ground. Warm weather depressed retail trade in many sections of the Midwest dur- ing the early part of the week, but a later change to more seasonable temperatures turned apparent losses into gains for the most part. The Associated Press index of in- dustrial activity stood at 71 per cent of the 1929-30 average, an increase of 09 of one percentage point. All sections of the barometer moved for- | ward except carloadings, which did | not gatn by a slight margin as much as expected for this time of year. ‘The Department of Commerce in its survey of 33 key cities for the week ended Wednesday found: “Warm weather in the Middle West halted the upward trend of Fall retail buying in large areas of that part of the country * * *, “The volume of business in all other sections of the country, however, con- tinued to move forward in keeping with the trend of the last few weeks. Volume Well Above 1934, “With but few exceptions, all of the cities gave evidence of a retail trad volume well ahead of the same period of last year. “Wholesale trade was unaffected by the decline in retail business in th= Middle West and pushed ahead in all leading centers of the country.” Settlement of the soft coal strik- with about 377,000 miners ready to start work Tuesday was regarded by business observers as most heartening. Officials estimated wage increases of | around $90,000,000 a year would ac- crue from the peace treaty, and ef- forts were concentrated on the four Southern sections still on strike, Cleveland business men, for ex- ample, took the view that the strike merely served to concentrate an in- evitable production slump into a short space of time and paved the way for a rebound by causing reductions of overlarge supplies on hand. Freight carloadings, densitive to coal shipments, gained less for the , | week ended September 21 than ex- & | pected seasonally, but some authori- | ties believed the anticipated drop for | last week in coal shipments might be | offset by increased automobile ship- ments. Freight Needs Grow. During the final quarter of this year it is estimated by one source that automobile manufacturers will | need 154 per cent more freight cars than during the same period of last year. During last week the Associated Press index of automobile production .rose sharply from 146 to 19.7 as manufacturers turned into volume production of 1936 models, an action which many declared is the bottom of the 1935 downturn between models and a prelude to new highs for the | year. Steel production advanced 08 of 1 percentage point to 48.9 per cent of capacity, as measured by the Amer- jcan Iron and Steel Institute, and producers predicted marked gains as motor makers demand shipments of metal, since orders from other sources have been remarkably well sustained |in recent weeks. A year ago steel production was at 242 per cent of capacity. Steel Mergers Completed. On the heels of the announcement by the United States Steel Corp. of consolidation and expansion plans, stockholders of the Republic Steel Corp. and the Corrigan, McKinney Steel Co. ratified a merger agreement making that combination the Nation's | third largest steel organization. Cotton manufacturing activity turned sharply higher for the week, reflect- ing what observers believed was set- tlement of the loan-subsidy agreement between the Government and pro- ducers and a shaking down of market prices to steady levels. Busines calmly received the an- nouncement of provisions of Federal licenses on exports and imports”of war implements. Raw materials which might be used as munitions were unaffected. Electric power output at 1,851,541,« 000-kilowatt hours for the week ended September 21 was within only 8,500, 000 kilowatt hours of the all-time peak set December 21, 1929, and resi= dential building was at a new high for the year during the first two weeks of this month. Detailed Reports Given. Detailed . repoorts on individual Federal Reserve districts follow: BOSTON.—The cotton goods busi- ness was brighter in New England with production lagging behind de- mand, but at a better rate than a year ago. Leather was cautious on future orders because of price strength. The wool market was slower; prices were firm. NEW YORK.—Retail trade in New York City was active despite warm weather. Departm:nt store sales were 5 per cent over 1934 and this month 7 to 8 per cent over last year. Whole- sale demand by buyers and mail was heavy. Early Christmas orders sought to beat recently seen delivery delays, and 1936 Summer clothing was ready. PHILADELPHIA.—A slight increase in total industrial wages was reported for the week ended September 21, Improvement was seen in wool, silk 5 | textiles, hosiery, leather and shoe pro= duction over 1934. Retail trade was (Continued on Third Page.).