Evening Star Newspaper, September 27, 1936, Page 57

Classified Ads Pages 5 to 15 3 — Part 5—16 Pages FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C, SUNDAY MORNING, SEPTEMBER 27, 1936. WH"E REH.EETH] District Bankers Honored HEAD OF POTOMAC - INSURANCE BOARD Richardson Keeps Presi- dency—Moore and Hoeh- , ling Also Renamed. * CORBY PRAISES PROGRAM | AT BANK CONVENTION| “Chief of D. C. Association Returns by Plane—Cites Constructive Phases of Conclave. BY EDWARD C. STONE. George W. White, president of the National Metropolitan Bank, was re- elected chairman of the Board of Di- rectors of the Potomac Insurance Co.; Frederick Richardson, president; ‘Thomas C. Moore, vice president and manager, and Judge A. A. Hoehling, second vice president, at the Septem- ber meeting of the board Friday, it was announced yesterday. ‘The annual meeting was held in Au- gust when directors named included the above officers, together with O. H. P. Johnson, F. Norie-Miller, C. F. R. Ogilby, Charles E. Hood, 8. Norie~ Miller, James F. Mitchell and Alexan- der K. Phillips. In point of service, Charles E. Hood is the oldest member of the board, having been made a di- rector in August, 1906. | Business disposed of, the directors took a look at the minutes of a similar meeting held 105 years ago, in Sep- tember, 1831. At that time W. W. Corcoran was very prominent in Wasi- ington affairs, and a charter member of the insurance company. During the meeting he asked for a rate of insurance “on the stock of dry goods of Darious Clagett, on two brick houses under construction on First street, on mills occupied by Jacob Newcomer on the Shenandoah River and on the stock in Calvert's mills in Bladens- burg.” The rate was fixed at 35 cents. Rates on insurance at that time, es- pecially on flour and grist mills, were much lower than at present. The average country mill is considered an undesirable risk today, but not so 105 years ago. As there were no under- writing bureaus, the Board of Direc- tors fixed their own rates ani it is most interesting to see in the minutes what successful results were obtained. Corby Lauds A. B. A. Parley. Karl W. Corby, president of the District Bankers’ Association and partner in W. B. Hibbs & Co., who re- turned by air from San Francisco, de- clared that the A. B. A. Convention was soundly constructive and that the frank expression of views on the big banking problems of the day was most helpful. Marked enthusiasm over the accom- plishments of the last year was evi- dent, and the bankers pledged them- selves to carry on during the next 12 months. Mr. Corby praised the suc- cess attained by the retiring president, Robert V. Fleming, during the past year and recalled the tributes paid him during the convention. The new president, Tom K. Smith, s a man of great banking experience, Mr. Corby added. His profound knowl- edge of banking has already been dem- onstrated in the work he has per- formed for the whole Nation and for the American Bankers' Association. He is a great American citizen and his success at the head of the A. B. A. is | already assured, Mr. Corby said. He was naturally very much pleased with the honors conferred on Wash- ington bankers by the new administra- tion. D. C. Trade Turns Upward. Department store trade in Washing- ton during the week scored an 11.1 per cent gain over thet corresponding week last year and was 4.4 per cent better than the previous week this year. Opening of the schools and increased demand for Fall wearing apparel caused the upturn, the Commerce De- partment reported yesterday. The value of building permits was greatly augmented by new $1,300,000 Police Court Building plus substan- tian gain in business and residential construction, making total value for week $2,308,512, as cempared with $191,500 previous week and $376,200 corresgonding period last year. ‘The G. A. R. Encampment and the eontinued warm weather added im- petus to the number of visitors in city, as evidenced by those registering st Smithsonian Institution, the num- ber being 48,767 last week, 44,677 previous week and 34,913 same 1935 week, the report said. Institute Committee Named. The Athletic Committee of Wash- ington Chapter, American Institute of Banking, headed by George M. Rowzee, Jr, has planned a very interesting program for chapter members. As- sisting the chairman on the commit- tee are: James A. Bruen, W. B. Hibbs & Co:; Merril William Drennan, Ameri- ocan Security & Trust Co.; George Galleher, Lincoln National Bank; Wil- liam L. Grimes, jr., American Se- curity & Trust Co.; Melvin L. Hamby, National Metropolitan Bank; Henry P. Hoffman, jr, Second National Bank; Alton C. McAllister, the Wash- ington Loan & Trust Co.; Stephen O. Porter, Riggs National Bank, and Ross L. Totten, Washington Loan & Trust Co. Banks Can Solve Problems. Speaking at the banquet of the Sav- ings Banks Association of the State of New York, Joseph A. Broderick, member of the Board of Governors of the Federal Reserve System and former New York State superintendent of banks, declared that “the prob- lems of banking are not insoluble. ‘They can be solved by bankers them- selves.” CELOTEX DIVIDEND VOTED. CHICAGO, September 26 (#)—Di- rectors of the Celotex Corp. voted & dividend of $5 a share on the 5 per cent preferred stock, representing un- paid accumulations from November 1, 1935, the date the new corporation be- gan operations following reorganiza- tion, to November 1, 1936. The divi- kdflmotrmrdlm Two Washington financiers were selected for high posts in the American Bankers’ Association when the new president, Tom K. Smith, appointed Wilmer J. Waller (left), vice presi- dent and cashier of the Hamilton National Bank, a member of the executive council of the national bank section and named Sidney F. Taliaferro (right) vice president and trust officer of the Riggs National Bank, a member of the executive committee trict Commissioner. QUTLOOK BRIGHT FOR OIL FIRMS AS DEMAND MOUNTS Consumption Likely to Hit 3,050,000 Barrels a Day During Next Year. BY J. G. DONLEY. 8pecial Dispatch to The Star. NEW YORK, September 26.—The oil industry is one of the enigmas of | recovery. Oil shares have not joined | whole-heartedly in the big recovery | parade on the stock exchanges, and | the man in the street seems to be a bit fuzzy in his mind as to whether oil is still in the dumps, stationary, or on the mend. One reason for that, perhaps, is that, in the depression years, the slump in oil prices was laid by those who did not trouble to look under the surface to the same sort of de- cline in consumption that teok the joy out of other industries. But the fact is that at- its worst, in 1932 or 1933, the demsand for oil was within 80 per cent of the aill-time peak. That strong trend of consumption, however, was belied by crude oil prices, Flood of Oil Recalled. ‘The trouble with prices was produc- tion. A flood of oil came from the east Texas fields where, in 1930, Dad Joiner had discovered the.largest oil field in the world. When consump- tion did decline, the weight of that new supply did funny things to prices. It is almost unbelievable now that in April, 1933, East Texas crude sold for a dime a barrel. In the Summer of that year, the sharp price crack having done more to throttle wide open production than any thing else, East Texas crude got back to around 50 cents a barrel. In late September one barrel brought as much as 10 barrels had brought in April, and the price held around the dollar-level until January of this year, when it was raised to $1.15. Meanwhile, following its temporary dip, oil consumption has been moving steadily upward, reaching a new all- time peak for the daily average this vear. In a survey of the progress in petroleum from 1933 to 1936, just published in booklet form under the title “Three fruitful years,” J. Meyer, jr. & Co., Inc.,, have drawn some very interesting comparisons. Crude Storage Drops. “During the first seven months of 1936,” says the survey, “we have pro- duced an estimated average of 2,991,- 000 barrels of oil every 24 hours. Yet, as of August 1, 1936, crude oil in storage had decreased by nearly 8,000,000 barrels since the first of the year, and was about 23,000,000 bar- rels less than on a corresponding date in 1935. Visualization of the extent of the improvement in the petroleum indus- try since 1933 is made easy by four significant comparisons, as of July in that year and July, 1936. Oil in stor- age has decreased 11.7 per cent; con- sumption of oil has increased 27.2 per cent; production has increased 21.1 per cent, and the price of oil has risen 130 per cent. Looking ahead along the curve of consumption, the survey finds that it should increase to a daily average of 3,050,000 barrels in 1937 and 3,200,000 barrels in 1938. For the current year consumption is likely to exceed 1935 by more than 100,- 000,000 barrels, which justifies the Nation's current rate of production od{‘ approximately 3,000,000 barrels a Y. (Copyright, 1936, TOBACCO AVERAGE UP. NEW YORK, September 26 (P).— The average price of United States type 12 grade B-4-F flue cured to- bacco in the week ended September 26 was 20.8 cents & pound, compared with 19.6 cents in the same week a year ago, H, A, Stich, tobacco econo- mist, stated. of the trust division. Mr. Waller is a former president of the District Bankers’ Association and Mr. Taliaferro a former Dis- COMMODITIES GO DOWN UNEVENLY FROM YEAR'S TOP Wheat Prices Swept Higher, FINANGIERS HAIL FRENCH AGTION AS AID TO RECOVERY Devaluation Likely to Spur World Upturn—Stocks Forge Ahead. MORGENTHAU REPORT | EASES FEARS FOR POUND | Trading Very Light in Foreign Dollar Bonds, but Some Sharp Declines Are Recorded. BY FREDERICK GARDNER, Associated Press Finan iai Writer. NEW YORK, September 26.—Wall Street viewed the French devaluation plan as likely to speed world economic recovery today, and prices were gen- erally higher in the New York Stock Exchange. Momentary uneasiness over ag in- dicated sag in the British pound sterling, in unofficial dealings, was quickly quelled by a statement by Sec- retary Morgenthau in Washington that it had been caused by a large offering of sterling by the Russian State Bank, which was quickly taken off the market by the American stabilization fund. Declines in sterling in recent years, it was pointed ouf, have frequently been accompanied by a sagging tend- ency in American markets, and the quick move by the Treasury was viewed by some as the first successful action under the agreement between Paris, London and Washington to preserve price equilibrium during the adjust- ment of the French currency. | While Corn Encounters Sharp Setback. BY A. A. PATTON, Associated Press Statistician. NEW YORK, September 26.—With grain and live stock markets the softest spots, commodity prices slid away from the year’s top last week. Numerous cross-currents buffeted the list of staples. for example, parted ways. The former rushed into new high territory for the year, the latter giving ground sharply. Wheat's handsome performance was attributed by commodity men to the world situation rather than any do- mestic developments. Demand has been expanding steadily, they say, while a wet European haryest and wide drought damage here cut potential sup- plies. Stocks are known to be the lowest fn many years. Affected by Local Factors. Corn, on the other hand, was affected almost entirely by local factors. The unusually high price commanded by the grain recently is reported to have caused & shrinkage in demand. At the same'time estimates of the yield were being raised slightly. Other grains took their cues from the leaders, rye advancing and oats dipping. ‘The Associated Press weighted index of 35 important wholesale commodities dropped to 81.16 from 8147 last week and compares with 77.43 in the same period a year ago. ‘The upturn in cotton was attributed to the high rate of operations in the spinning industry, both here and abroad, which has raised world con- sumption in the latest crop year to the highest on record. ‘The divergent paths of hog and cattle prices widened. The drop in quotations on porkers, caused by large marketings, was accompanied by weakness in lard.. Rising consumer incomes are held mainly responsible for the continued uptrend in cattle, beef being favored as meat when people can meet its price. Lamb de- clined slightly. Food Costs Increase, Food costs picked yp, with eggs, cocoa and flour sharing the gains. The latter was affected by a reduc- tion in supplies as a result of the strikes that have paralyzed Minne- apolis mills for several weeks. Sugar fell back under pressure of trade esti- mates that import quotas would be considerably above actual use. Industrial staples nudged ahead fractionally to & new top for the year. Heavily weighted hides, in good industrial demand, more than offset minor setbacks in rubber, bituminous coal, turpentine and linseed oil. Among non-ferrous metals, tin was down a bit. Textiles weakened, with wool ex- tending its decline and silk turning down following recent gains. The index, with its components, based on 1926 as 100, compared as follows: Past wk. Yr. ago. ‘18 Y 2 8e 35 Commodities - _ & Industrial .. « : Li 9 Agriculture B Textile _ Non-ferrous (x) Ne T.W A AUGUST TRAFFIC HITS NEW HIGH MARK By the Associated Press, NEW YORK, September 26.—Pas- senger, mail and express traffic handled by Transcontinental & West- ern Air in August exceeded any com- parable period in the company’s his- tory, officials disclosed today. In- creases ran as high as ‘38 per cent over the same mionth last year. 68.52 68.68 Genefal Tire Plans New Line Of Mechanical Rubber Goods By the Associated Press. AKRON, Ohio, September 26.—The General Tire & Rubber Co. announced today plans for entering the mechan- jcal rubber goods industry, with the opening of & plant in Wabash, Ind, where produétion will be under way by the first of 1937. 7 Company officials said that they ex- bash, which option was recently ap- proved by the courts. Orders have been placed for ma- chinery, repairs on the buildings will be started at once and production will be under way at the earliest possible date, they said. = General officials said that present plans do not contemplate the produce tion of motor car tires at the Wabash plant. The plant site covers about 30 acres, A - Wheat and corn, | Stock Leaders Advance. Prices of several leading stocks closed $1 to $3 higher in the New York exchange, which was the only major securities market in the world open for a short Saturday session. Prices eased off a little after an early rise, but stiffened at the close. Issues up about $1 to $3 included Bethlehem, abpve $69; Chrysler, above $122; American Telephone at $175, New York Central at $45.50. and others. Allied Chemical jumped $8 to $229 and closed at $224. Trading was very light in foreign dollar bonds in Wall Street, but there were a few sharp declines in some of the French issues, which have been selling at high premiums since France has continued to pay on these on the basis of the old, undervalued dollar. Since the franc is being devalued, dealers felt it might make a difference in how payments would-be made on these issues. The French 7!, per cent issue sold at $140 par value, off $16.50, and City of Soissons 6 per cents at $155.25, off $8. Dealings at Standstill. ‘There were virtually no dealings in the Prench franc, although some un- official transactions were reported be- tween 5.00 and 5.10 cents, compared with yesterday’s close of 6.583, its re- | cent gold parity of 6.63 and its parity | of 3.39 cents before the dollar was de- | valued. Some dealings in the pound sterling | were reported as low as $4.91, off 11 | lieved to be due to the Russian offer- |ing. After news that the Treasury had taken the offering the pound rose | to $4.96. | Principal commodity markets were undisturbed. Cotton, an important | export crop, however, was higher. At New Orleans futures rose 50 cents a bale and more, and they were higher at New York. Grains were narrowly changed at Chicago. French Gains Forecast. ‘The temporary embargo on gold shipments imposed by the Prench gov- ernment, following sucoessive waves of exports that drained the Bank of France of more than $2,000,000,000 in the last two years, was hailed by econ- omists as a harbinger of better times to the last important continental de- mocracy. Devaluatioh is seen by these ana- lysts as the logical climax of this move. The reason revaluation of the franc has been delayed for so long, they say, is that the government hesitated to subject creditors, who have vivid rec- ollections of the loss incurred by life insurance policies, bank deposits and bond holdings when the franc was sliced to one-fifth of its former value in 1927, to another dose of the same medicine. Then, too, there was the hope that rising world prices would eventually equalize the disparity between the un- cut franc and the devalued dollar and pound, especially as internal prices were falling. The Blum government, however, forcing higher wages and costs on manufacturers, turned prices upward and upset grounds for this faith. Creditor Enriched. Through the long period of defla- tion the debtor has been faced with the necessity of making repayments in francs that became more valuable, in purchasing power, as prices declined. This enriched the creditor at the ex- pense of the debtor, the franc buying about one-third more today than it did in 1930. How will devaluation affect France? Observers agree almost unanimously it would be helpful. The debtor could repay his creditor with a cheaper franc, one more in line with its buy- ing power a few years ago. A lower exchange rate for the franc can be expected, analysts say, to g0 a long way toward rebuilding the immensely valuable tourist trade that was snuffed out when the cur- rency became relatively more expen- sive ‘than others, notably American and English. The tourist is consid- ered to have been one of the most important factors in French economy prior to the depression. Exports, being mainly luxury items, also stand to benefit from the larger number of francs each dollar or pound will buy. The wines, brandies, fine cottons and linens, women's clothes and gew-gaws that are among the most important com= modities, will meet & world market trending toward luxury items & it emerges from L Home industries, being large im- | cents from yesterday, which was be- | OUR OWN LITTLE ALCAZAR. RAIL EQUIPMENT ORDERS INCREASE Sharp Rise in Earnings Laid to Recovery in Durable Goods #pecial Dispatch to The Star. NEW YORK, September 26.—Rail- road equipment manufacturers have been booking an increased volume of business due to the rapid improvement of rail earnings and credit, which may be traced to the recent speedinz up of the recovery movement, rarticular- ly in heavy goods. According to a new survey of the railroad equipment industry issued by Poor’s Publishing Co., maintenance of tracks and roadbeds is the railroad’s first consideration. Replacement of car and locomotive | parts and accessories is second in im- porta Finally, comes the purchase of new cars and locomotives to re- place obsolete and inefficient rolling stock. “Profits in the first two of these di- visions have already reflected improv- ing general railroad conditions,” states the survey. “Despite sharp increases from depression lows, orders for loco- motives and freight cars, although suf- ficient to reduce losses substantially, still fall far short of the capacity to which this division of the industry is geared. Orders Sag Sharply. “In 1929 the railroads ordered 1,212 locomotives. Aggregate orders in the following six years numbered only 995. Freight cars ordered during the six years subsequent to 1929 amounted to only 104,000 as contrasted with 111,000 bought in 1929. Recently the trend of equipment purchases has been upward. Purchases of new freight cars so far in 1936 have’ amounted to 34,254—more than in any full year since 1930. The 134 loco- motives purchased this year through August 31 represented a larger total than in any full year of the last four, except 1934. “Competition for equipment busi- ness is intense, owing to the excess capacity and the long period of starva- tion which has made all companies hungry for new business. Use Own Shops. “The large proportion of equipment manufactured and repaired by the railroads in their own shops anpd the entrance of other companies into the fleld make the position of the ‘old-line’ manufacturers even more difficult. In- creasing use of Diesel and electric en- gines and adoption of new alloy steels in construction designs have at- tracted numerous concerns into the railroad equipment field. “In spite of keen competition and narrow profit margins, the outlook for railroad equipment manufacturers in all flelds must be considered brighter than at any time since be- fore the depression. Further increases in the volume of orders for railroad maintenance are to be expected.” ENORMOUS GOLD DRAIN ON PARIS BANK SHOWN By the Associated Press. NEW YORK, September 26.—Los- ing $55,000,000 in gold during the latest week, France has had $1,300,- 000,000 of its enormous hoard of the metal drained away in the last year. ‘This loss of 27 cents of each dollar in gold held 12 months ago, of course, reflects primarily the flight of capital to safer harbors as a result ef (1) de- valuation fears, and (2) uncertainty over the future course of the Socialist Blum government in recent months. Bank of France gold holdings com- as follows: ‘Week ended September 18—$3,469,~ 000,000. Previous week—=$3,524,000,000. Bame week Jast Shortage of Steel And Higher Prices Abroad Predicted By the Associated Press. NEW YORK, September 26.—David H. Belmore, export manager of Re- public Steel Corp., said today before sailing for Europe that all indica- tions point to a shortage of steel in England, Prance snd Germany. He predicted there would be a big rise in steel prices. NEW ACCOUNTING RULES EXPLAINED Victor Stempf Tells Cost Experts of Changes in Present- ing Facts. Victor H. Stempf, member of the | public accounting firm of Touche| Niven & Co., addressed Washington chapter, National Association of Cost Accountants last Wednesday, explain- ing the character and purposes of the published financial statement and the transition in form of presentation which has occurred in recent years due to the desire of accountants to state all the information required by trade associations, stock exchanges, securities and exchange and other commissions. Detailed explanation was given of the newer concepts of “Treasury stock,” capital stock, general reserves, bases of inventories, trade accounts and notes receivable, cash securities, fixed assets and liabilities, surplus and profit and loss. Carman L. Blough, chief accountant of the Securities and Exchange Com- mission, defended the commission’s stipulation that all “material facts” be given in financial statements in lieu of the “specific disclosures” sponsored by the principal speaker. INVESTMENT COMPANY STOCK INDEX STEADY Special Dispatch to The Star. NEW YORK, September 26.—The investment companies common stock price index remained practically un- changed last week, as evidenced by the averages compiled by Distributors Group, Inc. The average for the common stocks of 10 leading management companies influenced by the leverage factor stood at 20.59 at the close of September 25, compared with 20.78 on September 18. ‘The average of the mutual funds closed at 16.17 on September 25, com- pared with 16.43 at the close of the previous week. IAUTO MEN BOOST EXPORT VOLUMES mG INDUSTRY FORGES UPWARD IN WEEK, RETAILERS BUSY Store Sales Uneven in Some Areas, but Continue Ad- « vance in Others. SLL SECTIONS REVEAL BIG GAINS OVER 1935 Wholesale Trade Is Buoyant. Advance Buying Heavy in Pacific Coast Cities. BY THOMAS E. FLANAGAN, Associated Press Financ.a: Writer. Steel operations, freight carload- ings and electric-power output thrust to new recovery highs last week while retail trade, though uneven in some sectors of the Nation, drove ahead in others under stimulus of cooler weather. “Retail trade for the most part moved along in goodly fashion during the week ended Wednesday,” the Depart- ment of Commerce report on 37 citics said, “Lack of crisp Fall weather in a limited number of areas put the brakes on Fall buying, but in sub- stantially all parts of the country retail turnover gained momentum from the previous week and went far ahead of the same period last year. “Wholesale trade generally was buoyant and important Pacific Coast cities reported heavy advance buying. “In areas where warm weather lin- gered well into late September there were heavy reorders, while Fall buy- ing, supplemented by holiday ousi- ness, was brisk.” The Associated Press index of ir- dustrial activity rose to 94.7 from 940 the previous week and 71.0 in the like week a year ago. Steel at New Peak. The steel industry pushed on to & new recovery peak. Operations were up to 74.4 per cent of capacity from 72.5 per cent a week ago and 489 per cent in the like week last vear, the American Iron & Steel In- stitute reported. Word from the steel front eited scarcity of raw steel which was slow- ing down the pace of finishing mills. Brisk buying of sheets by the motor industry and wide miscellaneous de- mand was said to have given some sheet mills nearly full bookings Foreign Business Remains Far Below 1929 Mark Despite Climb. : BY DAVID J. WILKIE, Associated Press Staff Writer, DETROIT, BSeptember 26.—The motor car industry continues to step up its export business, but present in- dications are that some time will elapse before this phase of its merchandising approximates the volume attained in 1929, when 997,506 cars and trucks were shipped overseas. The bulk of the industry's foreign business at thas time, however, was in the shipment of units from American factories. In subsequent years increas- ing tariff restrictions compelled most of the larger manufacturing companies to establish their owm plants in various European countries, Total 507,718 in 1935, Last year foreign sales of American motor cars aggregated 507,718 units, in- cluding those shipped from the United States and Canada, as well as the cars assembled in overseas plants of Amer- ican producers. While still considerably below the high mark at which the industry again is aiming, the figures represent a gain over the preceding year. Particularly gratifying to the industry’'s sales exec- utives is the improvement in foreign sales of motor trucks. There is every indication this year's aggregate foreign sales of American- made trucks will approximate 185,000 units, which has been surpassed only in the 1928-29-30 period. Last year the industry sold 161,789 commercial vehicles overseas. U. S. Keeps Leadership. The industry’s export authorities cite the foreign field whenever the possibility of domestic saturation is brought up. They point out that of the total world production of 5,126,680 cars and trucks last year only 1,006,- 869 were made outside the United States and Canada. At the same time the aggregate registration of motor vehicles throughout the world touched a new high last year at 37,235,987. ‘The Automobile Manufacturers’ As- sociation reports encouraging progress in its efforts to have tariff barriers lowered through reciprocal trade agreements with some of the indus- try’s best customers abroad. Packers’ Earnings Expected To Remain at Mediocre Levels Special Dispatch to The Star, NEW YORK, September 26 —With the business recovery movement gain- ing momentum, increases in consumer incomes are breaking down the re- sistance to higher prices for meat products, according to a new survey of the meat packing industry appear- ing in Poor’s Industry and Investment Surveys. Yet pork products, which constitute the big packers’ major source of profits, remain in a par- ticularly unsatisfactory condition. “Having outlived the destructive 1934 drought and the Government's pig slaughtering campaign of that year,” continues the survey, “the hog repopulation cycle was in the ascend- ancy, only to be upset by this year's drought, the impending feed shortages farmers will dump their supplies of ments mar the picture, New tax|d legislation threatens to hit the pack- ers where the A. A. A. processing taxes left off. ’The social security act, likewise, will take a heavy toll, for labor is a major factor in this industry’s operations, accounting for 40 to 45 per cent of the total oper- ating costs, exclusive of raw material costs. “Packing companies fill an impor- tant niche in the economie structure. Nevertheless, their earnings on in- vested capital have been lower than average over the long term and ex- pansion has not provided increasing returns. Although their compara- tively poor showing has been attrib- uted in a large measure to factors beyond their control, the fact re- mains that such influences persist in dominating the picture. It is diffi- cult, therefore, to see how the indus- try will escape another year of me- diocre earnings, unless, indeed, war through November, In surging forward to an un- precedented high, electric power pro- duction, reported at 2,170,807,000 kilo- watt hours in the week ended Sep- tember 19 by the BEdison Electric Institute, scored a gain of 17.3 per cent over the same week of 1935. Experts explained the advance in terms of continued heavy demand for electricity for both industrial and household uses. In approaching the 2,200,000,000 kilowatt hour mark, the latest week's rise served to bolster the belief in some circles that ex- pansion of capacity will be neces- sary. Freight Loadings Soar: A new high in freight carloadings since the week ended November 10, 1930, emphasized the sharp gains in railway operating profits recently re- | ported and brought nearer the day when numerous systems will be obliged to step vigorously into the market for new equipment and roll- ing stock, observers said. Wall Street estimates indicated September rev- enues would likely hit a top for that month since 1930. For the week ended September 19, loadings shot ahead to 789,510 cars, an increase of 12.8 per cent over the preceding week and 11.7 per cent ahead of the like week last year, the Association of American Rallroads disclosed. Comparison with the pre- ceding week was qualified by inclu- sion of the Labor day holiday in the period ended September 12. Auto Qutput Small. Automobile output continued to bump along bottom for the year. Cram'’s estimated production down to 15,680 units from 33,615 last week and 15,994 in the similar 1935 week. Cur- rent symptoms of increased purchas- ing power provide a background for output gains expected within the next several weeks, experts said. Analysts of the business and finan- cial scene enumerated the following cheering factors which came to hand during the week: More liberal divi- dends, reports of sharp sales gains from widely scattered divisions of trade and industry and continued ex- pansion in demand for bank loans for business uses. Financial markets, boosted some- what early in the week by force of favorable business news, turned shaky as the French financial crisis became grave, but braced up later when Prance, in co-operation with Great Britain and the United States, acted to remove the barrier of currency cone fusion, which has hampered world re- covery. Detailed Reports Given, Reports of business conditions in the 12 Federal Reserve districts follow: BOSTON.—Rising raw material prices provided the highilght of the leather in: dustry. Cotton soods markets continued et lronx. Demand for .—OCooler weather brace: retail trade toward the end of the 'u& and turnover reached the best levels in several weeks. Textile markets were brisk. Wholesale activity was well ahead of last year. with buying in apparels good. ELPHIA —Most branches of advanced seasonally and the 10 per cent advanta: o over a_year maintained genes a1 lly. Wholes: kets enjoyed substantial deman CLEVELAND.—Retail trade was following ~ Fall sales. American Legion convention brought substantial business to gift departments. Toledo re- ported employment up for the fourth OOnsecuLive WeRk ot - o .—Unfavorable weather the fifth ~Federal Reserve district cone tinued to check retail trade but whole- sale activity prices. improved. aided in part by Baltimore bank clearings ::fi up 27.4 per cent over the like 1935 FLANTA —Cooler whipped and de- ustry. ‘weather he week. The st four days were reported ‘‘pretty ®0od.” but not quite equal to the pree eek. - —Retallers reported business arm weather handicapped trade wi mand for [ k. De h brisk, Buyin: