Evening Star Newspaper, October 11, 1936, Page 61

N Class ified Ads Pages S to 15 Part 5—16 Pages D. C. STORE SALES RESUME ADVANGE ABOVE YEAR AGO September Total Up 5.1 Per Cent After Decline During August. NINE MONTHS’ VOLUME CLIMBS 10.1 PER CENT Retail Activity for Week Shows Sharp Expansion—Bank Clearings Jump. BY EDWARD C. STONE. Completely reversing the August de- cline, Washington department stores in September scored an advance of 5.1 per cent in retail sales over September, 1935, at the same time chalking up a gain of 10.1 per cent in the first nine months of 1936 over the like period in | 1935, the Federal Reserve Bank of Richmond reported yesterda, M’Lachlen Marks 14 Years as Head Of Capital Bank LANIER P. McLACHLEN. Lanier P. McLachlen, president of | | the McLachlen Banking Corp., Was | first elected to the office just 14 years | ago tomorrow when he took up the | duties laid down by his father, the |1ate Archibald M. McLachlen, who | founded the bank 46 years ago. To show how the trade figures are steadily mounting, it is worthy of note | that in September last year sales in the Capital were 26.2 per cent ahead of the previous year, and in the first nine months of 1935 sales ran 15.7 per éent above the returns in the same months in 1934. All dollar volume sales comparisons show that the city is enjoying remarkable trade pros- perity. Washington was slightly under the % per cent September gain reported for the whole fifth Reserve district, but above the average gain of 9 per cent attained in this area in the first nine months of 1936 compared with 1935. Trade in 541 stores in the whole United States was 14 per cent better than a year ago in September and 11 per cent up in the first nine months of this year. District Sales Compared. Huntington, W. Va., enjoyed the best gain of any city in the fifth dis- trict in September. Trade was up 17.6 per cent. Other cities reported Under the administration of Lanier | | McLachlen, the bank has enjoyed rapid growth, become a $5,000,000 | institution, with its main office located |at Tenth and G streets, northwest, and a branch at Twel®h street and | Maryland avenue southwest. | Mr. McLachlen is a past president |of the District Bankers' Association |and active in civic affairs. During | the World War he served overseas as a captain in the Air Service. A former president of the Columbia | Country Club, he is now chairman of | the Washington Better Business Bu- | reau, a trustee of American Univer- | sity and a trustee of the Washington |¥. M. c. A | When elected head of the Bankers’ Association, he was one of the young- | | est men ever to hold the office, being | only 40 years old. He started his finan- cial career as a runner with the bank over which he now presides. His brother, Archibald, is also an offi- cial in the same institution. Rate Highest Since 1929, CONSUMPTION OF RAYON WASHINGTON, D. C, SUNDAY MORN DEMAND BOOSTS |GOLD CUT PROVES AGTIVITY SHARPLY AT TEXTILE MILLS According to Survey Con- ducted by Poor’s. AND COTTON IN LEAD Earnings Improve Substantially as Sales and Prices Hold at Higher Levels. Special Dispatch to The Star. NEW YORK, October 10.—Textile mill activity during the first seven months was at a rate higher than that for the corresponding period of any year since 1929, and jndications are that an equally favorable show- ing will be made for the whole of 1936, according to a new report ap- pearing in Poor's Industry and In- | vestment Surveys. Operations so far this year are running about 15 per cent ahead of | the levels for the like 1935 period. This | is solely accounted for by the in-| creased consumption of cotton and rayon textiles, as the sales of silk,| woolen and worsted goods declined materially. Cotton Plants Rushed. “Cotton spinning activity this year | remained steadily in excess of ca-| pacity never declining below 105.2 per cent of capacity,” continues the report. | “August operations were at 115.8 per cent of capacity, and, while repre-| senting a decline from the July peak of 119.8 per cent, showed a marked | gain above 76.4 per cent for August, 1935. Impressive interim earnings | gains have been reported. BOON TOMARKETS, NEW PEAKS SET Dealers Abroad Continue to Buy U. S. Securities as Earnings Rise. RECOVERY IN FOREIGN TRADE IS ANTICIPATED Averages for Stocks and Corporate Bonds Climb Into New High Ground. BY CHARLES F. SPEARE. Specta! Dispeteh to The Star. NEW YORK, October 10.—In its stimulating effect on speculative mar- kets and in the awakening it has pro- duced in the slumbering business cir- cles devoted to foreign trade, the de- valuation of tHe currencies of France, Switzerland, Holland and Italy has proved one of the most notable events of the post-war period. The chaotic conditions that had been feared, as a sequel of devalua- tion, have not occurred. Transfers of gold on a large scale have taken place between European financial centers, but there is yet no evidence that gold is to be returned to Europe from the United States in proportion to the sum of our, past two years’ imports. Instead of liquidating American se- curities, foreign dealers in them have been enlarging their commitments on the exhibit of corporation earnings in the recent past and those promised by the unchecked business recovery here. Transactions on the New York Ex- change have expanded to the size of last Winter's brisk market. The stock averages are at a new “high”; also that of bonds in the corporation group. Political Implications. “With manufacturing stocks re- duced, unfilled orders sharply higher, | cotton goods prices selling at generally | higher levels, and prospects pointing to the maintenance of the improved | Even an unprejudiced observer can- not fail to remark the likely effect on the election results of this combina- tion of great industrial momentum, & | steady and substantial appreciation, FINANCIAL AND CLASSIFIED The Sunday St NG, OCTOBER 11, 1936. BLOW YOUR W HISTLE AGAIN. SOME OF THE BOYS DIDN'T SEEM TO HEAR IT. mG INDUSTRY FORGES AHEAD AS RETAIL TRADE IMPROVES Six-Year Peak for Freight Loadings and Rise in Auto Rate Cited. ALL SECTIONS REPORT INCREASE IN BUYING Abnormal Gains Shown, Particu- larly in Southern Cities—Whole- sale Activity Maintained. BY THOMAS E. FLANAGA! Associatec Press Financiai Writer. A six-year high for freight care loading and a sharp gain in motor pro« duction helped drive the Nation's in- dustry shead last week, while retail trade quickened despite adverse weather in some regions. Reflecting slightly less than sea- scaal improvement in some divisions, the Associated Press index of indus- trial activity was a trifle lower at 96.2. The preceding week it stood at 96.4 and in the like week a year ago, 73.1. “Retail trade moved to considerably higher levels in substantially all parts of the country during the week ended Wednesday,” the Department of Commerce reported in its survey of 37 cities. “The advantage over the same pes riod last year also was general, with abnormal gains in a number of cities, particularly in the South. Wholesale distribution moved forward along | similar lines in most important cene ters,” the review said. Shipments Climb. Aided by heavier shipments of all commodities except grains, the move= | ment of revenue freight advanced 1.5 per cent to 819,126 cars in the week ended October 3, the highest in six years and 16 per cent ahead of the like week of 1935 the report of the Association of American Railroads showed. as follows for September and ¢he nine | sales levels, the 1936 annual state- While shipmeats of miscellaneous months, comparisons being made with like periods in 1935: Sept. Jan.-Sept. 1936. 1936 + 54 + 65 +103 + 9.7 +1176 +13.1 +105 +108 + 5.1 +15.4 +16.2 + 7.0 +14.0 Cities. Baltimore, Md Charleston, S. C-- Charleston, W. Va Huntington, W. Va_ Lynchburg, Va- Norfolk, Va.- Richmond, Va. ‘Washington Winston-Salem, Other cities Fifth district, 56 stores U. S., 541 stores. State figures. Virginia ---- West Virginia - North Carolina South Carolina. +148 +104 Percentage changes in sepbember: and the first nine months of this year, in comparison with the correspondmg‘ periods a year ago were as follows in| other Federal Reserve districts: Bos-| tcn, +13 and +10; New York, +8 and | -9: Philadelphia, +9, and +10;| Cleveland, 20 and - 12; Atlanta, | 14; Chicago, +19 and' +12; i 0 and -+9; Minne- | apolis, +12 and +9; Kansas City, +9 and +8; Dallas, +18 and +17; San Francisco, +16 and +11. Added to the Richmond report yes- terday, came the statement from the Federal Reserve system that the Sep- tember sales increase was slightly more than the usual seascnal amount and that the board's adjusted index advanced from 87 to 88 per cent of the 1923-1925 average. Bank Clearangs Here ‘Climb, Stimulated by promotional sales and good shopping weather, depart- ment store sales in Washington this past week gained 30.2 per cent over | the previous week and stepped up | 10.9 per cent over the same week last year, the Commerce Department an- wounced yesterday. Bank clearings also climbed sharply, with a 44.1 per cent increase over the previous week and an advance of 42.5 per cent over the same week in 1935. Building activities, the report said, slowed down somewhat. While the| value of building permits decreased | 2.4 per cent from the previous week, | they were 20 per cent lower than a | year ago. The number of Washington visitors | continued to gain, as evidenced by those registering at the Smithsonian Institution. The total of 36,672 was ahead of the previous week and far better than a year ago. Bank Stock Crosses 234, American Security & Trust Co. stock, in a 15-share sale, jumped from 251 to 254!, on the Washing- ton Stock Exchange yesterday, a new high mark for this year and a much longer period. Carpel Corp. again sold at the high | mark, 24'2. Thirty shares of Pctomac Electric Power 5!, per cent preferred brought 11212, unchanged, and the 6 per cent preferred moved at 110! for 6 and 10 share lots. Bid and asked prices were strong on other issues as the market ad- Journed until Tuesday, following the Columbus day recess. Recent ac- tivity in bank stocks here has caused & good deal of interest among mar- ket observers. There is a similar sit- uation in New York, where third- quarter earnings in many institutions ‘were considered highly favorable, Variety Store Sales Gain. ‘The Department of Commerce re- ported that average sales of variety stores for September were 13.5 per cent higher than for August and 12 per cent higher than for September, last year. The department’s seasonally ad- Justed index of sales was 103 for Sep- tember, compared with 97.5 for Au- gust and 92 for September, last year. S e INTEREST MAXIMUM SET. NEW YORK, October 10 (#).—The Board of Managers of the New York Cotton Exchange has voted to set the maximum interest on future cortracts for delivery in any one month by any member firm or corporation at 250,000 bales in October, 1936, and in all months up to and includinz Septem- ber. 1937. ' + 69 + 59 4108 +11.0 + 6.3 + 97 +10.1 | + 94/ +146 +90 | +n,o; + 93| =113 +10.5 +183 +148 +13.4 | were FARM EXPORTS DIP WHILE IMPORTS GO 10- HIGHER LEVELS Shipments of U. S. Products in July, August Drop Well Below 1935. By tne Assoctated Press. A decrease in the dollar volume of all agricultural products exported by this country in July and August this year compared to a similar period last | year and an increase in value of agri- | cultural imports were reported by the | Agriculture Department. Its Division of Foreign Crops and Markets said exports of “total agricul- tural products” for the two-month pe- | riod this year were valued at $73,106,- | 000, compared with $82,184,000 for | July-August, 1935. Imports of “total agricultural prod- | ucts” for the two months this year | reported at $205,937.000, as | against $201,734,000 for the 1935 period. “Competitive” Goods Cut. Imports of products termed “com- | petitive” with those produced in this | country, however, declined from $110,- | 071,000 last year to $100,040,000 this year, while “non-competitive” agricul- | tural products were said to have in creased from $78,707,000 in 1935 to | $100,040,000 this year. Total exports of all commodities, farm and non-farm, were given as $351,953,000 for July-August this year, against $337,548,000 for 1935, while | total imports under the same heading and for the same period were $396,673,- 000 this year and $353,478,000 last year. Farm imports listed as “competi- tive” included animals, dairy, vege- table and meat products and similar large groups. “Non-competitive” in- cluded silk, bananas, coffee, tea, cocoa, spices, rubber and similar products. Tobacco Near Pre-War Mark. A study of August export of farm products by this country showed to- bacco was near the pre-war average for the month, while fruits were more than treble the average August ex- ports from 1909-14. Exports of wheat, grains, pork prod- ucts and other commodities were only a small part of the pre-war averages, while cotton exports were somewhat more than half as large. Drought con- ditions and short supplies in this coun- try were said to have caused some of the declines. ‘Total cotton exports by this country in August were said to have been 154,000 bales, compared with 180,000 bales last year, 166,000 in 1934 and 266,000 for the 10-year average of 1923-32, | the year to date are substantially be- | gust, 1935, { ments should reveal the largest earn- |ings reported in recent years. Less Wool Consumed. “This year's wool consumption is substantially below last year's record | level. Responsible for the 1935 peak consumption was the filling of orders | held up by the 1934 textile strike, and | the large Fall demand for uphoistery fabrics brought on by the early in- troduction of automobile models. “More efficient operations and rising ‘woo} prices accounted for good interim earnings gains, and with no inventory losses indicated for the coming months, 1936 net income results should make pleasant reading. “However, this division of the in- dustry will remain highly unstable in view of excessive productive capacity and the keen competition offered by other textile fabrics. Rayon Sets Record. “Consumption of rayon continues to expand rapidly, not only in reflection | of rising demand for textile products, but as a result of its competitive ad- | vantage over other fabrics. “Rayon shipments to American mills | during August established a new high record. As production failed to keep pace, producers’ stocks were reduced | to practically the lowest level ever recorded. “Although lack of supplies may force a reduction in shipments, sales | for the entire year should show a sub- stantial increase above the 1935 level. And with the fabric commanding a higher price, good rayon company earnings gains are indicated for this year. Silk Prospects Unimpressive. “Although silk deliveries to mills for low those for the like 1935 period. Au- gust statistics made more favorable reading. “Deliveries for that' month totaled 42,016 bales, compared with 36,658 bales in July and 41,715 bales in Au- “While the current high level of purchasing power favors expanding consumption, the industry’'s long-term prospects are somewhat dulled by the decided trend toward rayon fabrics.” BOSTON WOOL STEADY, WITH SCATTERED SALES By the Associated Press. BOSTON, October 10.—(U. S. De- partment Agriculture). — Scattered sales, mostly of moderate quantities, were closed on graded fleece and ter- ritory wools in the Boston market dur- ing the last week. 2 Prices realized were mostly steady compared to the previous week. Con- cessions on quoted prices were granted occasionally, but most holders ad- hered firmly to asking prices despite 8 continued slow demand. Ohio fleeces were quoted steady at 35-36 cents in the grease for fine de- laine, at 36-361; cents for Y2 blood staple, at 38-39 cents for combing % blood, and at 37-38 cents for comb- ing 3% blood. This market will be closed Monday, Columbus day. | month by month, in the security hold- | ings and in the real estate investments | of the American people and the stim- | ulating nature of the agreements just entered into between countries long attempting to trade behind tariff walls and now daily pufling these barriers down and so permitting much freer relations with the United States than | have obtained in years. The Hull reciprocity plan for en- couraging commercial and political peace has become a vital part of our economic philosophy. Its ecceptance would seem to ren- der ineffective the arguments of poli- ticians who seek to repudiate this most constructive effort toward interna- tional harmony proposed in years. There is also a feeling of relief over | the fact that the war fever has dropped perceptibly. Into this new situation there has entered the prospect of further credit expansion. Devalution promotes it; | the release of “sterile” gold seques- tered in the United States and in Eng- land, and privately hoarded on & large scale on the continent of Eu- rope, accentuates it. After Belgium | devalued In the Spring of 1935, an immense amount of currency returned to her banks. a similar experience with repatriation. Higher Living Costs Faced. The immediate and most delicate problem that the countries now de- valuing their currencies are forced to meet is that of protecting their people against the increase in living costs. This normally follows currency reform. Prance took steps to meet this contingency. She went so far that her entire devaluation program was threatened. Subsequently, Italy, in devaluing the lira by 41 per cent, imposed on her merchants a regulation by which food prices may not be lifted above present levels and extracted from landlords a promise not to increase rents during the next two years. There has been less advance in the living cost in the United States in the last three years than was to have been expected when the dollar was devalued by 40 per cent. meant that the various items enter- ing into the index of living costs have not greatly increased. Comparing September, September, 1936, it will be found that the wholesale price of commodities has advanced only 14 per cent. How- ever, foods have gone up 26 per cent. All commodities, other than farm products and foods, have risen from 76.5 to 79.6 per cent of the 1926 aver- age ot 100. Inasmuch as the item on food has most influence on the cost of living & index and bears most heavily on the average householder’s budget, it is the natural point from which ais- cussion of the present-day relation between income and outgo starts. This week, according to the Dun & Bradstreet chart, the food index stands just where it did on July 14, though meanwhile it has been considerably higher. Governments may by decree set (See MARKETS Page G-3.) Diesel Engifie Sales Increase Spectacularly With Weight Reduced and Speed Stepped Up BY J. G. DONLEY. Erecial Dispatch to The Star. > NEW YORK, October 10.—With the fumes of gasoline all about, the writer clambered down into the greasy hold of s tanker in San PFrancisco Bay to take a “look-see” at the Diesel engines which were something new in the powering of oil barges. That was something over 25 years ago. Two “500-horse” motors powered the barge. ‘Those old Diesels were mammoth affairs, broad-based and with cylin- ders as big as an apple barrel. Since that time the Diesel engine has traveled a long road, and the two distinguishing characteristics have served to make it what it is today. |’ Along the road of improvement it has shed its excessive weight, at the same 3 time that its rotative speed has been lifted. It still remains s miser on fuel and & mastodon for heavy, slog- ging work, while it has been refined for applications where power require- ments are lighter. Important advancements have been made in Diesel design during the de- One of the most dramatic demon- strations of the capabilities of Diesel power was put on only a couple of years or s0 ago, when a streamlined, light-weight train made a pioneering trip across the country at high speed, with a total fuel cost of around $80. Many railroads would put on more equipment of that kind as fast as they could get it—if they had the money. ‘The drawback of excessive weight is gradually being eliminated, so that eventually ofl-burning internal com- bustion engines seem likely to be widely used in powering of passen- ger automobiles as well as trucks and busses. Refinements in recent years have tripled the number of power shaft revolutions per minute, while the el gl gt tenth what it o ok (Coprright, 1936, 14 France is now having | By this is | 1933, with | BIG GAINS SHOWN AT CHAIN STORES September Rise of 29.5 Per Cent Over 1935 Is Best Since Depression, €recial Dispatch to The Star. NEW YORK, October 10.—Septem- ber chain store sales showed the largest percentagewice gain since the depression, according to the monthly compilation released yesterday by Hammons & Co. and Childs, JefIries & Thorndike, Inc. The first 25 chains reporting did | an increase of $37,774,981, or 205 | per cent over the same month a year ago, which is substantially ahead of the largest previous gain this year of 18.9 per cent, reported in July. This | marks the fifth successive month that the increase in- sales has been more than 15 per cent over the same months last year. Helped by Prices. These gains, which occurred in spite | of the unseasonably warm weather jdurmg the first part of the month, | were aided by generally rising retail prices, marking a new phase of the current upturn, which has been in | progress since last April. Reports from all sections of the country indicate that retail trade is entering into probably the largest Fall and early Winter business since 1929, and, with rising prices entering into trade as an important factor, along the first week of October indicate a volume far in excess of anything in recent years, with the excepiion, of course, of the Christmas period. Nine Months Reviewed. For the first nine months of the current year the volume of these | chains was $220,960,323, or 14 per | cent over the same months last year. The total volume of the chains was $1,802,776,091, as against $1,581,815.- 768. Following is a compilation of sales of the 25 chains for September and for the nine months, arranged in groups: 9 130 X ADVANCE MAINTAINED BY TRANSIT REVENUES Special Dispatch to The Star. NEW YORK, October 10.—Revenues for the transit industry, based on telegraphic reports received from a representative group of transit oper- ating companies, for the week ending October 3, 1936, showed continuing improvement over last year. Transit Journal's Revenue Indicator stands at 10712, :P’uch re:reunu a gain of 7.12 per cent from the correspon week in 1935, Do, For the week ending September 26, 1936, the indicator was 105.92. L BRI CONSTRUCTION PUSHED IN FOOD INDUSTRIES Special Dispatch to The Star. NEW YORK, October 10.—Awards for construction in the food industries during September totaled $3,570,000, with $3,073,000 pending, Food Indus- tries reports in its October: issue. Beverages led in awards with $642,- 000; grain mill products second with $600,000. In pending projects, bever- ages also led with $990,000, and grain mill' products second with $744,000. “mlmzm for 1936 thus f with $8,518,000. " [} | an aggregate business of $221,688,563, | with increasing business, reports for | U. S. Steel Reports |Large Increase In Month’s Shipments 1 By the Associated Press. NEW YORK, October 10.—Ship- ments of finished steel products subsidiary companies of the Unit States Steel Corp, for September amounted to 961,803 tons, an increase of 38,100 compared with August and 346,870 tons higher than September, 1935, The latest figures are the highest | for any month since June, 1930, ex- | cept the 984,097 in May, this year. Shipments for the first nine months of 1936 were 7,857,707, compared with 5.341,223 for the same period in 1935. A.T. & T. REVEALS INCREASED GROSS August Operating Total Hits | $8,698,722, Compared to $7,812,365 in 1935. Ry 1he Associated Press. NEW YORK, October 10.—Ameri- | can Telephone & Telegraph Co., in a report covering its operating activities | only, showed August gross revenue of $8,698,722 against $7.812,365 for Au- gust, 1935. Operating income for the | month was $1,838,024 against $1,426,- 972. For the nine months to August 31 gross was $70,465855 against $61.- | against $9,714,321, | The report does not include non- ;operanng income, such as interest, | dividends and other revenues received, | and is before operatinz charges such | as interest and rents paid. ALL-TIME AUTO SALES PEAK FORECAST IN 1937 Srectal Dispatch to The Star. | NEW YORK, October 10.—The pre- diction that the output of the motor industry in 1937 will exceed the all- time record established in 1929 was made today by W. R. Tracy, vice presi- .dent in charge of sales of the Hud- son Motor Car Co., before 600 Hud- son and Terraplane dealers and sales- men of the New York zone, gathered for a pre-view of 1937 models. Tracy sai. sales of Hudson and “The year 1936 will be second best in the industry's history, being ex- ceeded only by 1929. The year 1937, in my opinion, will see a new all-time high record established by the entire industry,” he said. SWIFT BONDS CALLED. CHICAGO, October 10 (#).—William B. Traynor, vice president and treas- urer of Swift & Co., announced that the company was calling $2,000,000 of its first mortgage bonds for payment November 15 at 103. He said this was in addition to the regular sinking fund redemption of $1,000,000 each May 15. Up 17.9 Per Specia! Dispatch to The Star. NEW YORK, N. Y, Ocfober 10.— Cash income of farmers from milk 'for the first eight months of 1936 totaled $954,060,000, an increase of $60,000,000 or 6.7 per cent over the 1935 eight months’ period, which totaled $894,000,000, according to the Milk Industry Foundation. “Farm milk cash for August alone was $125,000,000, compared with $106, 000,000 for August, 1935, an increase Jot 179 per cent for the month, by | ed | 396,229, with net income at $14,342,455 | | Terraplane 1936 models had been 54.1 | | per cent greater than sales of the | o5 | 1935 models. | LONDON CHEERED BYWORLDOUTLOOK Early Stabilization Expect- | ed—Bullishness Over U. S. Prospects Spreads. | BY LEONARD J. REID. By Cable to The Star. LONDON, October 10.—A very im- portant week in the financial district has passed most satisfactorily. The early stage of the new currency re- alignment was surmounted with as- tonishing smoothness and lack of dis- hope for a moderate early achievement of world exchange stability, although there are as yet no binding agreements. | business men. It is felt here that the inevitable devaluation of the gold bloc was accomplished in the best possible manner. Deadlock Believed at End. Also the accompanying declarations by the American and British treas- uries, although giving no definite un- dertakings, have been interpreted by world opinion as a vital presage to the willingness of statesmen to utilize the new opportunities affarded by breaking the old deadlock, such as the immedi- ate tariff reductions by France and Italy. It is realized that hopes are still vague and that big difficulties, especially in French political problems, are pending, but the fact remains that since 1916. The strength of government bonds on Monday and Tuesday coincided with a strong demand for industrials, which were fanned to boom proportions on Wednesday by Chancellor Chamber- lain's speech of Tuesday night, in which he reviewed British industrial prospects and world trade possibility in U. S. Recovery Watched. The financial district is growing in- creasingly bullish over the Wall Street outlook, wigh London participation ris- ing. It is felt here that Wall Street to the big evidence of progressive in- dustrial recovery. Commodities are all seen to be tend- ing slowly higher. It is hoped that | the boom in securities will take an orderly and controlled course in New York and London. (Cepyright. 1936, by the Nosth American Newspaper Alliance, Inc.) —_— U. S. PAPER CONTRACT LET. NEW YORK, October 10 (#).—Inter- national Envelope Corp., subsidiary of International Paper & Power Corp., announced the receipt of a $9,000,000 contract to supply the Post Office De- partment with 6,500,000,000 envelopes over the next four years beginning January 1 next. The company has properties in the East and headquar- ters at New York. Farmers’ Income From Milk Cent in August “Milk sold for use in fluid form made up the largest portion of the dairy farmers’ cash income for 1936 to date,” the foundation stated. “Next in order as producers of farm cash were butter, cheese, canned milks, ice cream and miscellaneous by-products. “Payments to farmers by milk dis- tribution for milk sold as ‘fluid’ were 27 per cent higher in 1935 than the 1933 low, due to higher prices paid per quart to farmers and not to larger sales volume,” the foundation stated. concerting movements. This gives real | Hopefulness for the ultimate future | is still shared by all, from the highest | responsible authorities to the ordinary | London is more actively cheerful than | phrases of unaccustomed cheerfulness. | | has already discounted the prospect of | a Roosevelt victory and must respond | freight turned in a substantial gain, haulngg of ore and coal made a par- | ticularly good showing and bore wit- ness to the steady pace of industrial activity. | An upturn in automobile production | to 39.945 units from 22800 a week | 2g0 and 31,643 in the like week last vear, according to Cram's estimate, was studied in motor circles in the light of the report of General Motors Corp., which showed the increased vitality of automobile consumption. In September the corporation’s sales to consumers totaled 85,201 cars, the highest for that month since 1929. Reports from the industry said motor assemblies were being stepped up as fast as possible and will possibly be near capacity within the next few weeks, Estimates in well-in« formed circles pointed to 1937 proe duction at from 10 to 15 per cent iover this year. | Power Output Gains. Electric power output in the week ended October 3 was up a little from the previous week to 2.169442,000 kilowatt hours, 16.4 per cent ahead of the corresponding week of 1935, the Edison Electric Institute reported. | Analysis said the pace of energy production was attributable both to steady demand for power for ine dustrial use and to domestic needs, | which have been boosted in some measure by gradual shortening of daylight hours. Steel operations were comparatively | steady at 75.3 per cent of capacity, the American Iron & Steel Institute reported. This compared with 75.4 per cent a week ago and 49.7 per cent in the like week of 1935. | ~ Based on broad demand, steel come | panies were said to be striding into :the final quarter of the year with | the largest unfilled orders on hand | since 1929, experts disclosed. Of prime importance to steel makers, it was explained, is the | readiness with which most steel is moving into consumption. The auto- mcbile industry, throwing production | into higher gear, was said by author- ities to be an aggressive buyer, while farm implement companies, railroads and others were ordering in good volume, Among the principal users of steel only the building industsy has failed to keep up with the others as a taker. Wide Upturn Seen. How well retail consumers have been holding up their end was illus- trated by September sales reports coming to hand during the week, most of which showed wide upturns over the like month a year ago. One of the brightest sampies: Montgomery Ward & Co. had a Sep tember total of $33,357,194, the high- est for that month in the history of the company and 32.5 per cent above the like month last year. Continued persistent demand for bank loans, most of which were for business purposes, was among the significant aspects of the week. In the week ended September 30, ‘other loans” of Federal Reserve | member banks in 101 cities advanced |'$70,000,000 over the week previous to $3,949,000,000, the highest in several years. Banking circles said current indications point to further gains in this important index of enterprise. Helping to confirm the impression of general recovery was the report of a wide increase in telephone installa« tions. In September the Bell System reported an upturn of 129,000 tele~ phones in service, compared with & gain of 92,100 in that month of 1935, In August there was an increase of 68,000. Financial markets had help from two directions. Buying of securities from abroad combined with a feeling of growing confidence over progress toward settlement of interuational currency distress following devalua« tion of the French franc. Meanwhile the strongly running tide of favorable domestic business news provided buy- ers with incentive. Both shares and bonds thrust ahead, at times on the heaviest activity in several mecnths. Some stocks pushed to the highest level in six years, while (See INDUSIRY Page G-3), }