Evening Star Newspaper, February 7, 1937, Page 57

Classified Ads Pages 5 to 13. Part 5—14 Pages FINANCIAL AND CLASSIFIED @he Sunday St WASHINGTON, D. C., SUNDAY MORNING, FEBRUARY 7, 1931. CAPITAL SESSIONS 10 DRAW CREDIT CHIEFS TOMORROW About 300 Executives Due for Association and Bureau Conclaves. BRISK UPTURN SHOWN AT DEPARTMENT STORES Week's Climb of 13.4 Per Cent Raises Volumes 8.39 Per Cent Above Same 1936 Period. BY EDWARD C. STONE. About 300 delegates will attend the ennual convention of the Columbia region conference of credit bureau managers in the Eastern part of the country and concurrent sessions of districts 2 and 12 of the National Credit Association, which open a two- day program at the Mayflower Hotel tomorrow morning. Registrations be- gin this evening. John K. Althaus, secretary and treasurer of Associated Retail Credit Men of Washington, announced yes- terday that the combined conventions will draw many of the most prom- inent retail credit men in the United States, some of whom are to appear on the program. ‘Washington speakers include Elsie M. Lee, credit manager of Frank R. Jelleff, Inc., whose subject will be “The Feminine Viewpoint in Using Inserts ‘With Bills and Collection Letters.” John R. Reilly, president of the Sec- ond National Bank, will “Retail Credit Inflation—Is It a Pos- sibility or a Fact?" Retail credit men are much con- cerned with the present aspect of credit conditions, association officials say, and since business turned the corner there have been many con- flicting ideas as to safe-and-sane poli- cies. This feature of the situation will receive most careful attention. The Columbia conference territory covers the District of Columbia, Dela- ‘ware, Maryland, New Jersey, New York, Pennsylvania, Virginia and West Virginia, George C. Robinson of Rich- mond being president. John K. Althaus is chairman of the Arrange- ments Committee, assisted by Charles | W. Prettyman. Charles M. Keefer, S. Kann & Sons, is chairman of the Publicity Committee; E. Emerson Sny- der, Raleigh Haberdasher, Banquet and Entertainment Committee, and Roscoe W. Reichard, the Hecht Co., of the Exhibits Committee. D. C. Trade Forges Ahead. Brisk retail buying in Washington during the past week forced depart- | ment store sales up 13.4 per cent above the previous weck and 8.39 per cent ahead of the same week a year ago, the Commerce Department reported yesterday in its weekly review of busi- ness conditions in 37 big cities. Bank clearings in the Capital totaled $23,905,773 for the week, compared with $24,745,933 for the previous week and $18,739,89¢ in the corresponding week a year ago. The value of building permits totaled $975,000, against $178,- 700 in the previous week and $438,000 in the same week last year. ‘The rest of the fifth district dis- | played mixed trade tendencies because of bad weather. Charleston, S. C., reported a 25 per cent gain, while | Baltimore and Norfolk reported ‘ weather handicaps, although Baltimore | wholesale merchants reported that | retail dealers were buying further ahead than in any similar period in | several years. i Net sales of Peoples Drug Stores, Inc., for January totaled $1,798,040 in comparison with $1,613,084 in Januars, | 1936, an increase of $184,956, or 11.4 | per cent, the head office reported here | yesterday. Sales for December showed | an increase of 15.2 per cent over De- ; cember, 1935. | Lanston Monotype stock figured in | its first sale of 1937 on the Washing- | ton Stock Exchange yesterday, 44 shares selling at 95. The stock closed ! with 95 bid and 100 asked. Vesterday's | sale followed announcement earlier | in the week of a $2 dividend, payable February 20. Washington Gas Light | 58, 1959, came out at 105%, up %2, on & $4,500 transfer. Bs sold at 942, unchanged. Riggs National Bank common commanded | 341 on a two-share sale. During the week the bid on East ‘Washington Savings Bank stock, sold over the counter, advanced from 13 to 141, and the bid on Hamilton Na- ! tional moved from 32 to 32%%. Salesmen Win Bermuda Trips. C. E. Warner, jr, and Mabel S. White of Slauson, White & Rowe, distributors of Independence Fund for ‘Washington and Maryland, have won a trip to Bermuda with all evpenses | paid in a sales contest conducted by the latter company. The trips were awarded to sales representatives who produced the largest volume of busi- ness during December and January. Slauson, White & Rowe reported yesterday that December and January | were the best business months since the firm was organized. At the same time Independence Fund announced 8 gain of 74 per cent in business in 1936 compared with the full year 1935. Bankers to Attend Conference. Robert V. Fleming, president of the Riggs National Bank, and Sidney F. ‘Taliaferro, trust officer, will be among Washington bankers attending the A. B. A. Midwinter Trust Conference which opens in New York Tuesday. George O. Vass, vice president and cashier of the same bank, and Lanier P. McLachlen, president of the Mc- Lachlen Banking Corp, will attend the third day’s session and the annual ‘banquet. Independently owned and operated retail establishments in the United States, totaling 1,474,149 during 1935, accounted for 73.1 per cent of all re- tail sales of the country, the Depart- ment of Commerce reported in con- nection with its current census of business, EXCHANGE SEAT DOWN. NEW YORK, February 8 (#).—Ar- ts were made today for rangement transfer of a New York Stock Ex- membership at $110,000, & dq fi;:‘:t $2,000 from the previous sale : speak on | Capital Traction | x NEW PEAK ESTABLISHED IN COPPER CONSUMPTION Domestic Use in January Advances to 85,000 Tons, Whil Drop 10,000 Tons. By the Associated Press. NEW YORK, February 6.—Ap- parent domestic consumption of cop- per for January was approximately 85,000 tons, & new high for 1936-7, figures compiled in the trade disclosed today. In the same period domestic refined stocks dropped 10,000 tons, it was indicated, the tenth consecutive drop in supplies to a new low level for several years. e Refined Stocks Figures on mine production in this count1y were not available, but it was believed it increased materially over the 61,000 tons mined in December. January scrap intake was estimated at 10,000 tons, against 9,330 tons in De- cember and 13,400 tons in the pre- ceding January, Copper men said they expected foreign refined stocks as of the end of the month would show a large in- crease over the 161,000 tons reported at the end of December. STAPLES UNEVEN, BUTINDEX EDGES SLIGHTLY HIGHER Textiles Continue Slump, Break in Cocoa Prices Draws Attention. BY A. A. PATTON, | Assoclated Press Statistician. | NEW YORK, February 6.—Drawing strength from a well-sustained de- | mand, commodity prices edged ahead last week. | ‘The Associated Press weighted index of 35 important wholesale prices moved up to 89.68 from 89.21 a week | ago, and compared with 76.77 in the comparable period last year. i The trend was mixed. Some staples ! advanced sharply. Others swung just | as abruptly lower. Of the 35 items | making up the index, 14 gained, 10 ' declined and 9 were unchanged. Textile quotations slumped further, | carrying the loss of the index during | the past fortnight to 5 per cent. The | heavy cancellation of orders caused by i General Motors' tie-up contributed importantly to the slide according to most trade observers. Wool, cotton | cloth and silk shared the downturn. Live Stock Advances. Live stock, on the other hand, was | unanimous in swinging into higher grounds; hogs, cattle and lamb con- | curring. The move was fn line with recent | Department of Agriculture estimates that prices were pointed up. The rea- son: Heavy marketing last year re- | duced the supply on farms, which in | turn means that Spring will find de- creasing shipments meeting increasing demand. | Hides, altheugh closely allied to live | stock, headed in the opposite direction. | | Inventories are said to be ample, with | demand from shoe manufacturers easing. Linseed oil also declined, while | rubber, bituminous coal, steel scrap and turpentine turned up. Non-ferrous metals, paced by tin | :and zinc, pushed up to within a frac- | tion of the seven-year peak touched ! in mid-January. Agricultural commodities were in | heavy demand, due mainly to con- | | tinued evidence that big European | consumers had to have more grain. | Corn, wheat, oats and rye advanced. Cotton fell back slightly. Food Index Climbs. The food index, with heavily | weighted flour and butter being | marked up, was higher. Eggs, sugar, | cocoa and coffee were unchanged. Cocoa provided fireworks, breaking almost 400 points in slightly more than a week. The setback was held | technical by commodity men, the result of its 150 per cent run-up in the past 12 months. It recovered at the close. The index, with based on follows: | i its components, 1926 as 100, compared as | . : Peb. 5. 35 commodities ____ R9.6K Industrial 89.62 0od 4| 8 | BIG INCREASE FORECAST IN CUBAN SUGAR CROP By the Associated Press. The Bureau of Agricultural Econom- ics reported yesterday Cuba planned a total sugar crop this year of 3,338,217 short tons. The island produced 2,899,002 tons of sugar last year and supplied 2= 085,022 tons to the United States un- | der its 1936 quota. | The 1937 crop goal, suggested by i the Cuban Sugar Stabilization Insti- | tute, included 46.5 per cent for the in- ital 1937 quota to the United States, ancther 17 per cent for possible quota increases, 31.4 per cent for exports to | other countries, and 5.1 per cent for home consumption, NAMED TO COMMITTEE. NEW YORK, February 6 () .— George W. Harrison, president of the Federal Reserve Bank of New York, has been named representative of the New York and Boston Federal Reserve Banks on the Federal Open Market Committee for the year beginning March 1, 1937. Roy A. Young, presi- alternate. ! Profound Impression Cre- | 'VOLUME IMPROVES FINANCIERS SILENT ON COURT CHANGE; STOCKS RECOVER ated, Immediate Signifi- cance Is Minimized. By the Associated Press. NEW YORK, February 6.—The stock market rallied in a quick re- versal of sentiment today, recapturing most of the ground lost when Presi- | dent Roosevelt's proposal for reform of the Federal judiciary took the | financial district by surprise. ‘While trading quarters buzzed with | second-day debate on the momentous | Supreme Court issue, buyers took hold of the market again and sent many issues up $1 to $4 a share. Bankers and business leaders gen- | erally continued to shy away from | public comment on the administra- tion’s move. But some in “off the record” talk make plain the profound impression created. In brokerage and other quarters, | | | | HOPES FOR BETTER RETURN ON FUNDS Bond Trends, Finance Costs and Bank Profits Hinge on Outcome. IDLE RESERVES REDUCED TO PREVENT RUNAWAY Recent Hesitation of Investment Market and Rise in Short-Term Rates Stir Interest. BY FREDERICK GARDNER, Associatea Press Financial Writer. NEW YORK, February 6.—Discon- | tented with meager earnings the last few years, money has stirred to the tunes of business recovery and turned hopefully toward Washington in search of larger reward for its work. In Wall Street and wherever capital congregates to sell its services, recent manipulation of credit ¢ontrol levers by the Federal Reserve Board has raised the question: Are the wages of dollars as well as men going up? On the answer, the money street hinges the trend of bond prices, cost of borrowing for business and spec- ulators, profits of lending institutions nd ultimately the cost of financing an installment purchase of an auto- mobile or the mortgage on a new house. The cost of money, as some author- ities view it, is the hub of the re- covery wheel. Federal monetary policy since early in the depression has been directed toward driving down interest rates and keeping them low with the objective of putting idle dollars and men back to work. Loanable Funds Piled Up. ‘Washington moved toward that goal | by facilitating accumulation of a | huge surplus of loanable funds—the much-discussed excess reserves of banks—and borrowing and spending | billions to expand deposits for the there was a tendency to minimize the | yse of individuals and business, immediate business significance pend- ing clarification of the reaction of | Congress and the Nation. Shifts Back to Trade. As attention swung back to business conditions behind the market and | hopes for settlement of automotive industrial strife rose, steel and rail shares took leadership of the rally. United States steel recovered nearly | all its loss in the previous session, | finishing about $2 higher at $98.75. Chrysler ended $1.50 up at $127.75. But General Motors was only slightly higher at $68. | Among rails, Santa Fe, Great| Northern and Atlantic Coast Line were | up $2 to $3. The Associated Press average of | 60 stocks, which dropped 80 cents | yesterday, rose 60 cents today. Other | markets also regained composure. Other Obstacles Cited. Indicative of one line of reasoning | in Wall Street was comment of Lionel D. Edie, economist, who pointed | out business recovery has ‘“over- come formidable obstacles, including | droughts, floods and strikes.” | “Business has demonstrated its | vitality,” he asserted. “It ought to | be able to surmount this political | obstacle.” H. Parker Willis, economist and professor of banking at Columbia | University, also held the court pro- | posals had no immediate bearing on business fundamentals, although hej noted the Nation's reaction in the | long run would find reflection in financial markets and business. Most brokerage house commentators agreed the President's message had caught markets off guard and exag- gerated a case of jitters attributable partly to the General Motors strike stalemate. “Of course,” said one, “the long pull significance of the legislation he asks cannot be overemphasized, but that does not mean it should cause im- mediate change in the business or security price trend.” UTILITY PROSPECTS New Output Peak in 1936 More Than Offset Rate Slashes, Poor’s Reports. Special Dispatch to The Star. NEW YORK, February 6—From the standpoint of business volume utilities enjoyed an excellent year in 1936 by establishing a new high rec- ord with approximately 109,000,000,- 000 kilowatt hours, an increase of 135 per cent over 1935 and 17 per cent over 1929, according to a new report appearing in Poor's Industry and Investment Surveys. “Relatively low rates prevented the large increases in consumption from being carried through fully to net income,” states the report. “Never- theless, increased sales of power and lower interest charges on funded debt went far toward offsetting the lower charges for current. “In the circumstances, it is esti- mated that net income for 1936 was about 5 per cent over the 1935 level. Now some of these deposits have begun to go into private employment. ‘The Reserve Board, apparently fear- ful the movement might get out of of living skyward, has reduced sur- plus reserves to more “manageable” proportions. In the language of finance, it has twice raised reserve requirements— banks must keep with the reserve system as liquid resources. The effect is to remove these “locked up” de- posits from the base of the inverted pyramid of loans and so restrict potential credit expansion, For, theoretically, bankers may lend several times the amount of their excess reserves and thus create de- posits and purchasing power which move men and materials into em- ployment. In the ebb and flow of these deposits derived from bank loans, economists see the heart of the modern money control problem. Treasury Co-operates. Moreover, the board and the Treasury, as in the recent plan for "§terlizing" additional gold acquisi- tions to prevent them from becoming part of the credit base, have co- operated in other precautionary moves to bolster money controls. Around Washington's “easy money” policy, and moves to prevent credit expansion from running out of bounds and feeding another volatile business boom, has revolved much controversy. Some bankers protested against what they regarded as attempts to keep money rates “artificially” low. Advocates of “easy money” as a cure for depression have been antagonistic to action which threatened to raise interest rates. From an immediate practical stand- point, Wall Street'’s attention is focused mainly on the bond market to catch repercussions of change in underlying money conditions. Ordinarily top-grade bonds move in accord with money conditions, After virtual collapse of short-term rates a few years ago and accompanying steady decl..e in the long-term in- terest rate in the meanwhile, the bond market's trend was Ppersistently upward until a few weeks ago, Hesitancy Appears. Recent hesitation in bonds, coin- ciding with a slight upturn in short- term rates, naturally caused many to wonder whether the bull market had terminated. Some authorities hold the Reserve Board, in tightening cradit controls, signalled a gradual shift from extreme low interest rates to somewhat higher levels. Most authorities concede the reduc- tion in surplus reserves, which are ex- pected to fall to around $500,000,000 when the latest order becomes fully effective May 1 compared with the peak of more than $3,000,000,000 last year, should bring some rise in the cost of money for the near term. Actually some rates have been raised a little already. But there is no such agreement about the long-term rate. Federal authorities, in fact, have insisted the moves could not be interpreted as abandonment of the easy money policy, explaining them merely as preparation in event Washington finds it necessary to use more effective levers later. - Current indications point strongly to present year.” By the Associated Press. ‘TOKIO, February 6.—A special eco- nomic good-will mission will be sent to the United States in April by the Japan Economic Federation, it was announced today. Its purpose. will be to foster cul- tural and economic relations between the two countries. The delegation, scheduled to arrive in the United States about the mid of April, will be composed of five Japanese Trade Leaders Plan Good-Will Tripto U. S. in Apri Since top-grade bonds follow the dent of the Boston bank, was named ; further increases in sales during the | long-term rete of money, rather than the short, investment men are uncer- tain whetler the minor recession in prices is merely another set-back in a major trend upward or marks the 2nd of the climb from the 1932 depths. Sharp Drop Recorded. The bottom fell out of the market for money at short-term when surplus the most influential Japanese business | bank funds began to accumulate men. Its leader will be chosen sepa- | Fapidly toward the end of 1933 and in rately from among the biggest in- dustrialists in the nation. 934. Dollars accepted employment for With a view to evolving acceptable | Periods of a few months to a year for measures for settling economic and |almost nothing. The Treasury in the trade difficulties between the coun- | Summer of 1935 borrowed on bills for tries, the mission will hold s series | 8bout one-twentieth of 1 per cent. of conferences with leading American | Certain classes of trade paper ylelded business men. It will make similar visits -Great ~ as little as one-eighth of 1 per cent. Money return went so low that capl- (See CREDIT STEPS, v G-2.) hand and sheot prices and the cost | the percentage of depolits member | THOSE MODERN FISHING (Copyright, 1037, New York Tribune, Inc.) MONEY STEPS LIFT I €, AUTOPRODUCTION T0 NEAR S0 | Sharp Rebound Is Expected When General Motors Reopens Plants. BY the Associated Press. DETROIT, February 6.—Motor car assemblies next week, according to present schedules, will aggregate close to 80,000 units, with a material boost in prospects if General Motors, whose plants have been strike-bound for more than a month, gets back into volume production. Of the prospective output next week Ford should assemble close to 30,000 cars and trucks and Chrysler’s several divisions approximately 25,000 units. General Motors was reported at the end of the present week to be “virtu- ally out of the production picture,” but a survey showed that it assembled about 1,500 units, most of them com- mercial cars. While many of its assembly lines have been closed down, General Motors has continued as much work as prac- ticable in parts divisions and now has a large bank of materials on hand for a quick resumption of car assem- blies once the labor difficulties were solved. General Motors will be back in volume output, it has been generally understood, “within 24 hours” after settlement of the strike. When its first assembly lines closed down last month the corporation was entering upon a production schedule of close to | 35,000 cars and trucks a week. It undoubtedly will require more than 24 hours to get back to that level of output, but settlement of the strike will be reflected immediately in the industry’s aggregate production. General Motors has reported a heavy accumulation of unfilled orders at all of its several producing units. To catch up with these orders will re- quire a contra-season activity. NEW CHAIRM.AN NAMED BY SHELL UNION OIL Sgecial Dispatch to The Star. NEW YORK, February 6.—F. God- ber has been elected chairman of the Board of Directors of Shell Union Oil Corp. to succeed Sir Henri Deterding. Mr. Godber, whose headquarters are in London, is an executive officer or director of some 40 of 50 com- panies in the Royal Dutch-Shell group. He has been one of the managing directors of the Shell Transport & ‘frading Co., Ltd., and a director of Shell Union Oil Corp. S. Belither, president of Shell Oil Co.,, the West Coast operating sub- sidiary, and a newly elected director of Shell Union Oil Corp., has also been appointed a vice president of the corporation. 377,385 TONS ENTER UNDER SUGAR QUOTAS BY the Assoclated Press. The Agricultural Adjustment Ad- ministration said yesterday that in- sular producing areas supplied 377 385 short tons of sugar in January of their initial 1937 quotas of 4,771, 820 short tons. Quantities charged against the principal off shore areas were: Cuba, 191,456 tons of its quota of 1922~ 423 tons; Philippines, 75,229 of 1,» 035,742; Puerto Rico, 110,700 of 831,508. No entries were reported in January for Hawaii on its 976,685 tons quota or the Virgin Islands yith a 5462 ton quota. 4 . e S. E. C. Rejects Hutton Request For Information-i By the Associated Press. The Securities Commission denied yesterday an application by W. E. Hut- ton & Co. for a bill of particulars on the commission’s charges that the con- cern manipulated Atlas Tack Corp. stock. The firm contended the information ‘Was necessary to preparation of its de- fense. A hearing of the charges is scheduled for tomorrow. 'RECEIPTS ON STOCK TRANSFERS CLIMB, i Advance to $31,974,000 in 1936, or an Increase of $7,839,000 Over Previous Year. | By the Associated Press. | The Treasury reports the tax on capital stock transfers yielded $31,- 974,000 during 1936, an increase of | | $7,839,000 over 1935. | A total of $28,356,000 was collected | in New York last year, and $21,239,000 i in 1935. ©Ohio led in payments of the playing “cnrd stamp tax, contributing $2,675.- 000 of the $4,212,000 received from this source last year and $2,350,000 of the | $4,252,000 1935 receipts. The tax on silver bullion transfers | | put $859,000 in the Treasury last year, | compared with $876,000 in 1935, and | that on sales of produce for future | delivery $3,350,000, compared Wwith $3,2717,000. Revenue from documentary levies on bonds of indebtedness, capital stock issues and deeds of conveyances ag- gregated $28,579,000 in 1936 and $23,- 329,000 in 1935. SMALL GAIN SHOWN BY TRANSIT REVENUES Srecial Dispatch to The Star. NEW YORK, February 6:—Reve- nues for the transit industry for the week ending January 30, 1937, based on telegraphic reports received from a representative group of thansit op- erating companies, showed a small im= provement over last year. Transit Journal's revenue inditator stands at 100.32, which represents a gain of 0.32 per cent over the corresponding week in_ 1936. For the week ending January 23, 1937, the indicator was 100.64. Results for the latest week were ex- tremely spotty, individual gains and losses being rather evenly divided, with a slight preponderance of gains, in spite of the fact that the cor- responding week of last year was un- usually high, due to weather condi- tions. By the Associated Press. CLEVELAND, Ohio, February 6.— Daily Metal Trade today says: With new business in most finished steel products exceeding expectations, steelmakers are assured of brisk op- erating schedules between now and April 1. Demand for heavy products has made the best showing in new busi- ness the last several weeks. This has resulted largely from the wave of raile road equipment buying which coin- cided with expiration of productions against old steel prices. Reduced consumption in the auto- | motive industry oned by the | strike at Genery plants has [Personal Loan Firm Earns | | share in 1935. Brisk Steel Activity Assured As Orders Continue to Rise NETOF HOLSEADL FANGE HOUNS $5,268,285, Compared to $4,203,926 in 1935. B5 the Associated Press. NEW YORK, February 6.—House- | hold Finance Corp., engaged in 16 States in making personal loans, re- | ported net income for 1936 of $5,268,- 285, equal to $7.04 a share on the outstanding common stock. Thu‘i compares with $4,203,926, or $5.42 a share in 1935. The company has headquarters in Chicago. American Brake Shoe. American Brake Shoe & Foundry | Co. reported net income for the year ended December 31 at $2,351,968, equal to $2.95 a share of common | stock, against $1,699,400, or $1.70 a Plants of the com- pany are located in principal cities throughout the country. Central States Electric. Central States Electric Corp, a holding company, with headquarters | in Richmond, Va., reported for the | year ended December 31 consolidated | net loss of $775,228, exclusive of losses realized on sale of securities, against net loss in 1935 of $1,353,930. Investments carried on the balance sheet at average cost totaled $45,- 886,897 as of December 31. At the close of 1935 investments amounted to $46,093,206. American Cities Power. Net assets of American Cities Power & Light Corp. and wholly owned sub- sidiary, as of December 31, stood at $35,587,601, based on market value of securities held, the company re- ported. This compares with $25,- 207,515 on December 31, 1935. Net unrealized appreciation of invest- ments was $8,963,557, compared with $7,913,541 at the close of the preced- ing year. The company, & utilities holding concern, has headquarters in Richmond, Va. NEW FAIR TF;ADE LAW VOTED IN SOUTH DAKOTA By the Associated Press. PIERRE, S. Dak., February 6—A new “fair trade practice” law, designed | to prevent price cutting on widely advertised products, today required only Gov. Jensen's signature to make it effective July 1. South Dakota is the seventeenth State to pass such a law, which is modeled after a California statute held constiutional by the United States Supreme Court. It permits manufacturers to con- tract with retailers to maintain speci- fied minimum prices on nationally ad- vertised products. been without apparent effect on steel mill production. The lag in that direction has been more than offset by demand else- where. Deliveries on most products continue deferred several weeks and in some instances producers are hav- ing difficulty in meeting desired ship- ping dates of customers. Talk of & possible advance in prices for second quarter is beginning to be heard but there is no basis for such rumors at this time. In some quar- ters it is felt present prices, which represent an advance over those in effect last quarter, should be con- tinued for some time in order to per- mG A DSPLAYS EAERY TOPLSH RECDVERY DRV Retail Business Develops More Equilibrium and Clings to Gains. STEEL ACTIVITY GAINS, OTHER BAROMETERS OFF Floods and Motor Strike Remain Major Influences—Maritime Truce Is Hailed. BY THOMAS E. FLANAGAN, Associated Press Financial Writer. Although floods and the motor strike continued to buffet shock troops | of the Nation's business last week, | energy for further assaults toward the ! recovery objective remained strong. The steel industry refused to turn aside, but other major industrial divi- sions did falter while retail trade in most regions developed more equilibrium and clung stubbornly to gains over a year ago. The Associated Press index of in- dustrial activity declined to 98.9 from the adjusted figure of 99.8 for the previous week and compared with 80.4 a year before. “While retail trade throughout the country generally continued in larger volume than last year at this time, the effects of the flood, both favor- able and unfavorable, were becoming | daily more apparent,” the Department of Commerce said in its weekly survey of 37 cities. “The settlement of the maritime strike was hailed with enthusiasm by | business interests on the Pacific Coast, but in the East nervousness became | more apparent with the prolongation of the General Motors strike,” the Review said. Steel Industry Revives. A snap-back in production in areas hit by floods and further signs of reviving vitality in heavy goods helped the steel industry to stiffen its backbone. Output rose to 79.6 per cent of capacity from 779 a week ago and 50 per cent in the like week last year, the American Iron and Steel Ine stitute reported. Strength in scrap steel prices, the industry’s thermometer, told of roe bust conditions. Diagnosis indicated further improvement in the offing. Offsetting reduced consumption from the motor industry were several face tors. Railroads continued their drive to repair and replace equipment. Meanwhile estimates from steel makers indicated the industry itself will be no laggard in new construce tion work with nearly $300,000,000 expenditures planned for the current year. Automobile output slackened to 72,« 295 units from 74,148 the week before and compared with 70,875 in the like 1936 period. Trade circles said that as a partial result of the General Motors strike other makers have been selling cars more aggressively. At the same time some observed sales of used cars has proceeded briskly, Power Output Declines. Floods, strikes and mild weather cut consumption of electricity, experts said. For the week ended January 30 output was somewhat lower at 2. 214,654,000 kilowatt hours, a gain of 13.3 per cent over last year, the Edi~ son Electric Institute reported. In | the preceding week the advantage over last year was 15.7 per cent. Also showing the inroads of floods in some measure were freight care loadings which declined contra-seae sonally in the week ended January 30. The total of 659,790 cars was 1.6 per cent under the preceding week, the Association of American Railroads re- ported, but 6.1 per cent ahead of the like week of 1936. Business observers swung sights ahead once more to appraise likely repercussions of floods. Damage has been substantial in many centers. Re= habilitation work, it is held, however, will place numerous orders for new business on the doorsteps of come Ppanies in a wide variety of industries. Rebuilding Started, Interest was focused on early symptoms pointing to rebuilding. One company, the Louisville Paint & Varnish Co., with its announcement of plans to spend $250,000 ime mediately for replacement, provided analysts with a sample of how work will get under way. Industries likely to receive orders, business men said, include: Steel, cement, lumber, household furnish- ings, electrical equipment, glass, paint and producers of various staples such as metals. The stock market, advanced, faltered following announcgment of President Roosevelt'’s plans for re= adjusting the judiciary and then ree covered as the week’s trading drew to a close. High-water mark of trading was the rise of United States Steel to $100 a share for the first time since May, 1931. The bond market distinguished ite self principally by the clamness with which it received the Federal Re- serve Board's decision to boost bank ;eu::ve requirements the full allowed Detailed Reports Given. BOSTON-—Operations level. Government orders. manufacturers would further stimulate the woolen fndustry. 'ORK—Retail and wholesale tr held well over last year. The automobile strike has caused concern to business e A DELPHIA _Ra tem. —Rain and high tem ratures retarded retail trade. bt hou urnishings and women's wear moved well ahead of the same period last year. Pure Ditcge sales met favorable fesponse, deais uyers gener; higher prices. S e Ry Retail \ND—The Board said sales were up on d higher than last year. Furniture sales and demand for fur coats were factors. RICHMOND—Retail trade followed an upward course in the Fifth Federal Re- serve district last week with the return of more seasonable weather. Washington department store sales rose 13.04 per cent over the brevious week and 8.39 per cent over the like week last year, ATLANTA—Retall trauc scored a de- cided upturn. Steel operations were steady at 76 per cent of capacity in the Birminge reh A o diercpenty mit a consolidation of the gains al- ready made, 3 u—n“d:f“gmw e 3 Othes. There was & bis- -srade merchandise,