Evening Star Newspaper, May 16, 1937, Page 69

Classified Ads Pages S to 17. Part 5—18 Pages BANK CLEARINGS AND BUILDING UP SHARPLY IND. C. Store Sales Off 12.94 Per | Cent for Week, or 2.66 Below Year Ago. OTHER FIFTH DISTRICT CITIES SHOW ADVANCES Preparations for Preakness Spur Baltimore Trade—Wholesale Activity Also Higher. BY EDWARD C. STONE. Continuing sharp gains of th previous week, bank clearings in the Capital again revealed substantial im- provement during the last week. Checks passing through the Washing- ton Clearing House totaled $24,488.852 against $23,237,935 in the correspond- ing week a vear ago. Building per- mits issued during the week also kept up the recent excellent showing, the total of $982,600 comparing with $846,100 in the previous week and $401.500 in the same 1936 week, the Commerce Department weekly survey #aid yesterday. Department store sales, however, took a decided dip of 12.94 per cent from the previous week and showed & decline of 2.66 per cent under the record of the same week in 1936, the report added. With the exception | of the Capital, retail sales in the leading cities in the fifth district ad- vanced substantially over the same period last year. Preparations for the Preakness provided considerable | stimulation to retail trade in Balti- more, where wholesale trade also | maintained high levels Richmond reported considerably | higher bank debits, Norfolk better | trade than last year, and Charleston, B. C., noted an 8 per cent gain in | retail and a 10 per cent stepping up in wholesale trade over 1836. In several cities special sales lifted trade. | Maryland Bankers Elect Broun. | R. Bascom Broun, jr., cashier of the First National Bank of St. Marys, at Leonardtown, was elected president of | the Maryland Bankers' Association | &t the closing session at Atlantic City, | succeeding Howard H. Roark. John | J. Ghingher, president of the National Central Bank, Baltimore, and former Btate bank commissioner, was elected wvice president, which usually means | succession to the presidency the next year. Fugene G. Grady, vice presi- dent, Western National Bank, Balti- more, was re-elected treasurer, and Matthias F. Reese, manager of the Baltimore Clearing House, was again | elected secretary. This country will need to spend an average of $33.000,000,000 annually on durable goods and to build an | average of 900,000 houses a year dur- ing the next five years if we are to reach the goal of 1929 living stand- ard, Harold G. Moulton, president of the Brookings Institution, Wash- ington, informed the Maryland‘bank- ers. In order to set up durable goods to the level required to make good the | accumulated deficiency, Mr. Moulton | said from 8,000,000 to 9,000,000 addi- | tional workers would be needed, and that this would absorb all the un-| employment in this country. | Following Mr. Moulton's address | Ben Johnson, special assistant to the board of directors of the Reconstruc- tion Finance Corp, urged bank- | ers to make the safety and availability | of funds rather than profit the pri- | mary consideration in lending or in- vesting funds. “The local bank,” he said, “is closer to local business than is any other lending agency, and should be the best equipped to extend proper credit to local interests. “A bank is not a chamber of com- | merce or board of trade, and its pur- pose is not primarily to create business | but to facilitate business.” Accountants to Hold Forum. Forum discussion of President Roose- | velt's message to Congress transmit- ting the report of the financial ad- ministration of the Government, pre- pared by the Brookings Institution, will feature the final meeting of the year of Washington Chapter, National Association of Cost Accountants, next Wednesday evening at the Hamilton Hotel. The annual election of officers and | directors for the chapter year 1937-8 | will also be held and prizes will be | awarded to team captains and mem- bers leading in the chapter competi- tion. The meeting will begin with a dinner at 6:30 and the technical session will open at 8 o'clock. The technical session will be led by William Lee Slattery, controller of the Post Office Department, Theodore B. Nickson, controller of the Federal Housing Administration, and Robert W. King of the Farm Credit Ad- \iministration. C. Milton- Clark, treas- urer of the Central Bank of Co- operatives, and president of the Wash- ymtan Chapter, will preside. Capital Transit at 1937 Low. Oapital Transit stock sold on the ‘Washington Stock Exchange yester- day at 9'2, the lowest quotation for 1937. Sales were very light, however, the turnover being only eight shares. Washington Railway & Electric pre- ferred came out at 108!; and closed at 108, also on light sales. Potomac Electric Power 5, per cent preferred stock recorded two transfers at 110 and the corporation’s 6 per cent pre- ferred moved at 109. Bonds were neglected. ‘The Securities and Exchange Com- mission has adopted a new form for applications for permanent registra- tion under the Securities Exchange act of 1934 for bank holding com- panies. The form is prescribed for issuers engaged either directly or through subsidiaries primarily in the ‘business of owning sucurities of banks for the purpose or with the effect of exercising control. Not since May, 1931, has residen- tial building been undertaken on such 8 heavy scale as was reported in April, ¥F. W. Dodge reports, adding that some of the most important gains were scored in the District of Columbis, Maryland and Virginia, | & | ber, Tradition Broken With Appearance Of Two-W ay Proxy By the Associated Press. NEW YORK, May 15.—An ancient tradition in corporate practice was broken today with the appearance of & “two-way” proxy. Sent by International Paper Co. to its shareholders, the proxy form permits the stockholders *: record themselves either for or against a plan of recapitalization proposed by the company. From the inception of the proxy use its form committed the stock- holder to a “yes” answer exclusively Where it was executed. If a stock- holder opposed a management pro- gram he had no alternative except to throw away the proxy and register an individual protest, or seek a com- mittee opposing the management. Financial circles believe the new Proxy is destined for general adoption. It has beeen approved by the Securi- ties & Exchange Commission. COTTON STAGES MODERATE RISE AT WEEK'S CLOSE Final Prices 8 to 14 Points Higher on Small Trade, Foreign Demand. Br the Associated Press. NEW YORK, May 15—Further moderate advances were registered in cotton today on a small trade and for- eign demand while offerings were light. July, which had sold up to 12.84, closed at 12.76, with final prices 8 to 14 points net higher. The market opened 8 to 12 points higher on price fixing, continental and Bombay buying, as well as. covering for over the week-end. Contracts were scarce and prices soon got up 15 to 17 points. A little local realizing ap- peared at these levels and partial re- actions from the best followed. Loan cotton releases for the week were restricted to 70 bales and Wash- ington advices indicated the commod- ity Credit Corporation was consider- ing either modification of its release terms or suspension of the disposal program, but corporation officials re- frained from expressing opinions as to | which course would be followed. Amount of cotton on shipboard awaiting clearance at the close of the week was esiimated at 53,000 bales against 63,000 last year and 74,000 bales two years ago. The range follows: High July 12.84 October 1364 December January March T Spot steady. midd Cottonseed Oil. Cottonseed oil was steadier today on covering and increased Southern and European buying aided by firm- ness of lard and cotton and the | strength of hogs which sold at a new Realizing | high level for the season. checked the upturn and there were partial recessions from the best, with final prices 3 to 5 points net higher. Sales, 174 contracts. Bleachable spot nominal; May closed 9.70; July, 9.84; September, 9.91; October, 9.84; Decem- ber, 9.74. New Orleans Prices. NEW ORLEANS. May 15 (£ .—Oofton futures closed steady at net advances of 7 to 9 points July | October December March Cottonseed ol clos prime Summer vellow. crude nominal.” May. 9. Beptember. 9.40b: October. 9.25b b—Bid. Bleachable rime . 9.33b; 35b; Decem- ed. SUGAR FUTURES. NEW YORK. May 15 () .—Sugar fu- tures No, 3 closed steady. 1 to =~ higher ns May. 5 48b: Julv. 2 4Rh: cmber, 2:47n: Janu: RAW HIDE FUTURES. NEW YORK. May 15 (.—Raw_hid futures closed ' steady. 8 'to' 13" higher. 8ales. 2.440.000 pounds. June. b; September, 15.85: December. 16.17b. b—Bid How Is Showing Current Business Activity Com; I T |Ava] seer Jocr.TNov ] oec ] FINANCIAL AND CLASSIFIED he Sunday Stae WASHINGTON, D. C, WHEAT BOOSTED BY CROP REPORTS AND EXPORT DATA Market Well Liquidated After Recent Drop and Covering Appears. RYE HELPED BY SALES TO NORWAY AND REICH Additional Foreign Shipments Talked After Calls for 350,000 Bushels. BY FRANKLIN MULLIN, Associated Press Market Writer. CHICAGO, May 15—Unfavorable crop advices, particularly from Canada, and a strengthening wheat exports situation helped bring out buying that lifted wheat prices as much as 25 cents & bushel today. ‘The market was strong most of the session, continuing the recovery which began Friday. There was little selling pressure. Traders said the market apparently was well liquidated during the recent decline and that part of the buying was short covering. | Other grains rose with wheat. May rye advanced 3% cents at one stage, stimulated by export sales of 100,000 bushels to Norway and 250,000 to Ger- many, representing deliveries on con- tracts here. There was talk of further similar business. Wheat closed 1 to 21, cents higher, | compared with Priday's finish, May, 12575a1.26; July, 1.18al1.18'4; Sep- tember, 1.16%2a1.16'; ; corn was 5 to 3 | up. May. new, 1303;: July, new, |1.17%al1.17%; September, 1.09'xa 1.09',; oats were unchanged to 1% higher, May, 507:: and rye gained 3, to 112, May, 1.12. Provisions advanced 17 to 23 cents. Canada Needs Rains. Wheat rose soon after the opening to $1.25!; for May, reacted slightly, steadied and then pushed up to $1.2635 for May just before the close. From this point there was another slight reaction. Liverpool was closed, but the market at Winnipeg largely paral- leled action here. News interest centered on an authori- tative statement that half of the Ca- nadian wheat acreage needs immediate | moisture relief to prevent reduction in | vields. Parts of the Spring wheat belt | both sides of the border were reported | %0 short of subsoil moisture that a | period of hot weather or high winds iprlor to generous precipitation might i result in serious- damage. Overnight export sales of Canadian wheat were estimated at about 500,000 bushels and one report indicated ex- pected further German purchases have | been deferred due to the holiday |abroad. With domestic wheat prices believed near an export basis, various authorities continued to stress likeli- hood of increased export of United | States wheat in the near future. In | less than six weeks new wheat will be moving to market in commercial any other producing country. Corn Shorts Cover. Short covering that appeared in May born lifted the contract to $1.3114 at one stage, up almost 2 cents, but buying was tempered by receipt of 100.000 bushels of Argentine corn in Chicago. Cash corn prices were 1 to 2 cents higher. Oats was higher with | corn. Lard market gains were associated | 7 (See WHEAT, Page G- WURLITZER CO. PROFITS HIT ALL-TIME PEAK By the Associated Press. CINCINNATI, May 15—The Ru- dolph Wurlitzer Co., music house, re- ported today largest earnings in the 81-year history of the firm—s$2,172,593 for the fiscal year ended March 31. | The figure is equivalent to $5.74 per share on 378520 shares of common stock outstanding. It compared with net profit of $909,- 163 for the previous year and was re- corded after taxes and an amount equal to one year’s dividends on 13,066 shares of the company’s 7 per cent preferred issue and provision for a contingency fund of $395,441. Business? pared with the Same Week A Year Ago Lian [FeaTuan | m 193, Present Business +8.9% Above A Year [ WiV Fo TRl e GENERAL BUSINESS ACTIVITY for the country lndl::n‘ by Bank Debits out o . Y. City. Shaded areas show week of activity above correspont > 7. o tnd dl:lfiu'ltn'n: same weeks twelve months edrlier. previous year. Black areas indicate ‘week of ti ACTIVITY BY FEDERAL RESERVE DISTRICTS Choeok Transactions compared with the same woek a your age i o LEADING BAROMETERS Showing Tread of Impoctant Factors Business in Dollars (Checks Cashed) Employment (Dept. of Labor). W?:e"(bept. of Labor). ...... Cost of Living (Ind. Conf. Board). Wholesale Prices (Fisher's Index). icultural Prices (Bureau of La! lovement of Goods (Car Loadings). Retail Trade (Fed. Res. Board| Building Contracts (F. W. Dodge). ., Failures (Dun’'s)....... Bond SRS aN waavo bor) ... oBBRal AR TR = LY | quantities, far ahead of new grain in | SUNDAY STOCKS FOLLOW UNEVEN COURSE AS VOLUME LAGS Few Rails, Industrials Im- prove Moderately—Others Are Backward. DISCUSSION OF SUMMER SETBACK AGAIN HEARD Steels, Motors, Utilities and To- baccos Lag—Transfers Drop to 343,560 Mark. WHAT STOCKS DID MAY 15 Baturday. Friday. Alvances _ 70 406 Declines Unchanged _~_~ Total issues 816 830 BY FREDERI GARDNER, Associated Press Financial Bditor. NEW YORK, May 15.—The going | was slow and a trifle rough in today's stock market although a handful of | industrials and rails managed to gain | ground moderately. Trading forces were shy and shifty | from the start and few backed judg- ment with extensive commitments | either way. Those who appeared in | the board rooms confined themselves | principally to tape watching. Stimulus seemed to have faded from the truce in the Jones & Laughlin and General Motors strikes. Current busi- ness news was still cheering so far as it went, but talk of a Summer set- back was again heard in analytical quarters. Rails swung up at the start of the two-hour proceedings, but found the track slippery before the close and the majority yielded a large part of their gains in final dealings. Steels, motors, utilities and tobaccos were | backward throughout. Average Up Slightly. ‘Transfers of 343,560 shares com- pared with 285390 last Saturday. With the exception of the latter date it was the smallest turnover since June of last year. The Associated Press average of 60 stocks ended with an advance of .2 of a point at 66.3. Friendliness toward the carriers was in the face of a contraseasonal drop in last week's freight loadings. At the same time observers of this field believed the recession was only temporary with an upturn likely later in the month. There was nothing particularly dis- heartening for either the automotive or steel groups but they failed to at- tract a great deal of buying attention. Prospects of a new governmental power program kept utilities subdued. With London closed today and Monday for the Whitsuntide holiday, inspiration from overseas was lack- ing. Foreign buying and selling of American securities was also at & minimum. Homestake Climbs. Shares of Homestake Mining got up 5 points at 352. Up fractions to 1 or 80 were Southern Railway at 365, Pennsylvania, 43; Union Pacific, 145; Southern Pacific, 561; Northern Pacific, 33% ; Baltimore & Ohio, 321;; Kennecott, 54; International Nickel, 59; Briggs Manufacturing, 42%; Para- mount, 193g; Republic Steel, 34'4; American Steel Foundries, 511;; Yel- low Truck, 217s; Loew's, 77; Union Carbide, 100; Goodyear, 37'»; Good- rich, 40';, and Barnsdall, 2534, On the downside were United States Steel at 95; General Motors, 55; Chrysler, 109; American Telephone, 164; Deere, 126; Firestone, 331,; Du Pont, 154; Consolidated Edison, 35%; Cerre de Pasco, 62; Douglas Aircraft, 4915, and Western Union, 563;. Amer- ican Tobacco B and Reynolds B were down to new lows for the year. Bonds Move Higher. The winds of reaction blew them- selves out in the bond market as the week came to an end, and prices im- proved in light dealings. United States Governments stiffened perceptibly as demand accompanied a creeping advance, which materially re- duced losses administered earlier in the week. The reversal of trend in this quarter led many to believe Federals have reached a price basis more in line with market appraisals of insti- tutional investors. Today's trading sent Governments up 1-32 to 9-32 of a point. Several issues held back or drooped a little. On the week, a few bonds were up 33 closed a bit lower. Domestic corporate loans held even or ventured fractionally upward, ex- cept for the utility group, which con- tinued to work lower. High-grade corporates and industrial loans were even to a little better, and rails moved forward small fractions. Volume for all bonds was held to the unimpressive total of $4,038,000, face value, the smallest Saturday turnover since August 22, 1936. A week ago $4,273,000 of bonds changed hands. Curb List Improves. Minor gains predominated in all sec- tions of the curb market despite the lethargy of trading as evidenced by the smallest turnover in about a year, Shares closing small fractions to & point or more improved included Sun- shine Mining, 181,; Pantepec, 7%; In- ternational Petroleum, 357%; Glen Al- den, 11l5; Consolidated Copper, 814; American Gas, 32!3, and Aluminum Co., 143. Those holding unchanged or slip- ping back a trifle included E. W. Bliss, 16; Cosden Ofl, 1%; Electric Bond & Share, 16z, and Creole Petroleum, 32%. Transfers of 96,000 shares were the smallest since August, 22, 1936, and compared with 118,000 last Saturday. NEW YORK COFFEE. NEW_ YORK, May 15 —Coffee. spot prg e B E b it R clu Santos Bourbop 3s lndn%‘ at 1.50-80. Rio futures closed steady, 2 to igher: sales 1,250; tember, ' 7.00n; Bantos futures steady. 1 8.500: May. 11.43n; g&l’, 10.44 'm- March. 10.22; n—Nominal, CRUDE RUBBER FUTURES. NEW YORK. May 15 (/.—Crude i unchan T ot to 6 high Jur. 4073 r. 10, b—Bid to 1 of a point, but the main body | & MORNING, MAY 16, 1937. THAT NEW DEAL OASIS. g CANT 4EEM ' T0 CATCw | ABUNDANT /~ LIFE }(} oAl ( Vy”hl “-) Il o (Copyright, 1937, New York Tribune. Inc.) Al ‘\"; o Z —— == = COLUMBIAG. & . EARNINGS DROP Quarter’s Net at $4,434,024 | Against $6,367,779 for Same 1936 Period. By the Associated Press. NEW YORK, May 15.—Columbia Gas & Electric Corp. leading utility system, with properties in the East and Northeast, and its subsidiaries reported today for the March quarter net in- come of $4.434,024, equal to 22 cents a share on the common stock, compared with $6,367,779, or 39 cents a share, in the first quarter last year. For the 12 months ended in March net totaled $11,289.486. or 36 cents a share, against $13,230.489, or 54 cents a share, in the preceding 12 months. Packard Motor Car. Packard Motor Car Co. showed net profit of $2,610.701, or 17 cents a share, in the first three months, compared with $1,248,029, o: 8 cents a share, in the first quarter last year. Columbian Carbon Co. Columbian Carbon Co., with plants in Eastern industrial centers and in Eastern and Southern gas and oil fields, reported for the first quarter net income of $1448536, or $2.69 a share, against $1,028,153, or $191 a share, in the first quarter last year. Continental Gas. Continental Gas & Electric Corp. and subsidiaries, serving nearly 900 communities in the Middle West, re- ported for the 12 months ended in March net income of $4,470,341, equal to $14.69 a share on the common, com- pared with $3,626,750, or $10.75 a share, in the preceding 12 months, Other Reports Given. Corporate earnings statements re- leased during the week, showing prof- its per share, included: Quarter Ended Mareh 31 Columbia Gas & Electric International Nickel otor New York Air Brake_ Greyhound Corp. .~ Ohio Oil Twelve Month Ended Mareh 31. United Air Lines Transport .22 *Unavailable. WALL WILL ADDRESS DISTRICT BANKERS Charles H. Doing, chairman of the Program Committee for the Nineteenth Annual Convention of the District of Columbia Bankers' Association to be held at White Sulphur Springs, W. Va., announced yesterday that Alexander ‘Wall, secretary-treasurer of the Robert Morris Associates, will be one of the principal speakers on the second day of the conclave. Mr. Wall's subject will be “Financial Statements From the Viewpoint of the Banker and as Prepared by the Ac- countant,” a subject of paramount im- portance to all bankers, especially those charged with the responsibility of administering credit departments of banks. NEW YORK PRODUCE. NEW YORK. May 15 (#).—Eggs, 34.662; Armer, uked Solors. shecinl macks, S3ia 25 a1 i igher ; extra (92 score). 32; ). 29%-31: seconds. centralized (90 ‘unchanged. Dres: ultry generally steady. Fowls, 60-65 ':gm‘:gs."t'mh and_frogen.” 17a22. Other fresh and frozen prices uncha: SAVANNAH NAVAL STORES. L, (A .—Turpentine frit V30, gaes, 08: Tecelpts, 3577 ahinc . 226 stock, 25459. Rosin r%: 41; receipts. 1,104 Ahlxmmlm 253 Eositgly, Quole BT D T8 548°%a" 850 Wi and %, 5200 [ o d) Other Currencies Gain Further in Terms of Dollar By the Associated Press. Foreign currencies yesterday added & little more to recent gains in terms | of the dollar. | With trading at slow pace, the pound | sterling rose !; cent to $4.9435, and French francs moved to 4.83% cents, up .00% of a cent. Holland guilders were quoted at 54.94 cents, up .01 of a cent. In London the dollar closed at 4.9415 to the pound, off 7-16 of a cent. There were no Paris dealings owing to the usual Saturday holiday suspen- sion. TUNNEL AND FERRY MERGER IS PLANNED | By the Assoctated Press. | The Detroit & Canada Tunnel Corp. and the Detroit & Windsor Ferry Co. | jointly applied to the Interstate Com- | merce Commission yesterday for au- ! thority to merge portions of their fa- | cilities. | The transaction involves a proposed | issuance by the tunnel corporation of | $750,000 of new first mortgage bonds and the payment of $150,000 in cash in connection with the acquisition of certain properties of the ferry com- pany. Under the plan, ferry operations be- tween Detroit and Windsor, which have been conducted for 75 years, would be discontinued. AUTO ACCESSORY SALES CLIMB 57.1 PER CENT B the Associated Press. NEW YORK, May 15.—The automo- bile accessory industry did a heavy volume of business in the March quar- ter compared with a.year ago, Poor's Publishing Co. reported. Aggregate earnings of the first 20 companies to report totaled $14,234.- 684, against $9,056,924, a gain of 57.1 per cent, the report stated. D. C. SECURITIES (Quotations by Johnson, Lemon & Co.) Yesterday's closing bid and asked quo- tations on Washington securities which are sold over the counter follow: BONDS. Barber & Ross deb 45 '43 Consolidated Title 6s ‘51 __ D C Paper Mfg 1st 35 '46__ Hamilton Realty 1st 55 Mayfiower Hotel 1st 58 '50 Natl Press Bldg 1st 3-55 '50 Racquet Club 3s 45 Wash Auditorium 1st 65 ‘44 Wash Properties 7s '52 ___ STOCKS. Anacostia Bank Anacostia Finance _ et Barber & Ross pfd (new) _ East Wash Savings Bank Federal American Co pfd _ Pederal American Co com Hamilton National “Bank National Capital Insurance National Mtg & Invest pfd National Metropolitan Bank_ Raleigh Hotel common Real Estate Mtg & Guar com Security Sav & Commercial Union Finance Units FARM AREAS FACE PROSPEROUS YEAR Standard Statistics Expects Substantial Increase in 1937 Income. Special Dispatch to The Star NEW YORK, May 15.—In its weekly summary of the general business sit- uation, the Standard Statistics Co. of New York currently comments as follows: “The Government crop report made public during the week again calls attention to the fact that most agri- cultural areas of this country are fac- ing a highly prosperous year. Esti- mates of Winter wheat and rye pro- duction point to a sharp increase over last year's harvests, and while Spring wheat seeding has been late, pres- ent indications are that the yield will be well above the subnormal produc- tion of 1936. “Although the crops are not yet made and weather conditions over the next several months will inportant part in determining final yields, the current outlook suggests that total production of all agricultural in a number of years. “If present crop expectations are realized, it is probable that 1937 farm income will be close to 10 per cent higher than the highly satisfactory returns last year. In this connection it is significant that business today in many farm areas is near a new high, as shown by the record-breaking mail order sales, the high rate of pro- duction in the agricultural implement trade and the fact that retail trade generally in the rural areas is only slightly under 1929 levels. “Reports on industrial operations indicate that activity is holding close to the peak levels of the year. Al- though there has been some slackening in incoming orders as a result of the recent change in sentiment regarding the near-term outlook for commodity prices, there are no signs of more than a slight decline in manufacturing activity during the remainder of the current quarter. “Retail trade is also holding up in an encouraging fashion. Sales thus far in May have shown a satisfactory increase over a year ago, and whole- sale activity recently expanded for the first time in a number of weeks. The trend of retail trade over the next several months will probably provide a clue to the extent of the Fali up- turn in business. If sales are well maintained, it will be only natural to look for an increase in manutac- turing activity in the late Summer or early Fall as buyers again enter the markets.” WOOL TOP FUTURES. Ma; (). —Wool-top Union Trust Co _ Wash Convention Hall p: ‘Wash Properties Inc vtc. Bank clearings o o-ceeeee-- Electric output (kilowatt hours) (Pinal three ciphers omitted in above.) Car loadings, week ending May 8... Crude ofl production (barrels) Stock sales (N. Y. Stock Exchange Bond sales (N. Y. Stock Exchange) NEW YORK. May 15 futures closed quiet. 20 lower to 5 higher. iy 157 & Getober. 107.00: Mareh 1.07.0b. b—Bid. This week. Prev. week. Year ago. $1,119,000 $1,147,000 $993,000 2,526,290 2,526,290 2,430,259 8,839,408 8,842,902 7,729,834 15,654 16,835 4,781 5,396,292 6,608,837 5,219,359 2,193,779 1,928,803 767,481 3,489,200 5,548,330 46,726,000 29,171,000 19.6% 912% 782,4,23 3,497 450 4,136,280 $49,228,000 63,138,175 19.6% 91.0% 1% 1%-1%% 1% 668,866 2,961,700 4,610,410 $44,936,000 12,163,750 18.3% 69.1% 1% 1% % 1% 1%-1%% 1% %%, play an commodities in 1937 will be the largest | m TRADE IRREGULAR, WIDE GAINS OVER 1936 LEVELS HELD Steel and Auto Activity Up, Power Output and Load- | ings Down. ] DEEPENING CLEAVAGE ON PROSPECTS WATCHED One Group Believes Business May Slow Down—Other Sees Stock Declines Overstressed. BY THOMAS E. FLANAGAN, Associated Press Financial Writer. Although the Nation's business last week continued at wide gains over a year ago, small setbacks from the pree ceding week occurred in some sectors. Minor improvement in steel oper= ations and motor production cone trasted with modest recessions in electric power output and movement of freight. One phenomenon which was more pronounced and which may foree shadow events to come, observers said, was the deepening cleavage of opinion on the outlook. On the one hand, some said busie ness might slow down following the swift pace of recent months. Others stressed too much importance has been attached to stock market des clines. Trade and industry, the latter group said, have swept ahead with great momentum and order blacklogs in many divisions provide powerful fuel for further progress. Index Climbs Further. Rising for the fifth consecutive week, the Associated Press index of industrial activity touched 108.6, the highest since November, 1929. The week before it was 108.3, a year ago, 89.3. “While tabulations indicated gains in the dollar value of retail sales in substantially every part of the coune try, increases were so narrow that doubt was expressed in many places whether the figures reflected actual ®ains in unit transactions.” the Dee partment of Commerce said in its ree port on 37 cities. “It was noted that where gains of substantial amount were recorded they were due largely to special promotions or some local temporary stimulus. Much of the same lack of enthusiasm seemed to pervade wholesale markets." Steel operations gained to 91.2 per | cent of eapacity from 91 the preced- | ing week and 69.1 in the like week of last year, the American Iron and Steel Institute reported. From the steel trade came word the majority of consumers are well enough supplied to meet near-term needs. Nevertheless, in many lines consumption is heavy and conse- quently current orders reflect actual requirements. Scrap Prices Steadier. Symptomatic of a generally robust condition in the industry, some said, was the steadying of scrap steel prices following declines which started around early April. In the week ended May 8 electricity output declined a little to 2,176.383,000 | kilowatt hours, the Edison Electric | Institute reported. This was 12.8 per cent above the corresponding week of 1936, a gain which compared with 13.5 per cent scored in the previous week. Since the week ended March 27, when the gain over 1936 was 18.1 per | cent, there has been an almost unin- terrupted narrowing of the advantage, Factors in the decline of the latest week, power circles said, were favore able weather in many regions and the beginning of curtailment of industrial activity. For instance, a number of textile mills eliminated the third shift, Carloadings Decline. Freight carloadings declined 1.9 per cent in the week ended May 8 to 767481, the Association of American Rallroads reported. The total was 147 per cent above the like 1936 week. Pulling down the total in the latest week was a fairly sizable drop in coal shipments. Railroad circles, however, tended to give more attention to good gains in April operating revenues, continued equipment buying and estimates of traffic gains on the stretch ahead. Motor production was a little higher at 141,892 units, from 140,892 (revised) the previous week and 117.- 156 in the corresponding week a year ago, Cram'’s estimated. The speed of the output pace was emphasized by the fact it surpassed the like week of 1929 when the total was 141516. Motor men cited con- tinued stout consumer demand and shortage of stocks in dealers’ hands owing to the strikes. Analysts of the industrial scene were impressed with the gain in April resie dential construction to the highest level of any month since May, 1930, The total for 37 States east of the Rocky Mountains, reported at $108,« 204,400 by F. W. Dodge Corp. was 20 per cent over March and 61 per cent better than last year. Trade Loans Sustained. One item entered high on the sta- tistical ledger was the fact commercial loans have been well sustained, cone trary to expectations in banking circles of a decline. Important, bankers said, was the way commercial loans wers flowing into heavy industry. Commodity prices, vital nerve center of the business world, softened for the sixth consecutive week with prese sure on farm and industrial products still heavy. Livestock was the sole group to run counter to the general declining trend. Shares on the New York Stock Ex- change beat a retreat, but found some irregular support at the end of the week. Thrusting prices back, Wall Street circles said, were rumors of & possible margin requirement lift, some foreign selling and the continued be- lief the upward climb of the profit curve may be less steep from now on. RICHMOND.—Department _store _sales in 'the fifth Federal Reserve district slumped sharply as adverse weather kept customers away. Washington bank clear- ings rose to $24.488,852 {rom $23.237.935 isst year.