Evening Star Newspaper, July 25, 1937, Page 53

Classified Ads Pages 4to 13 Part 5—14 Pages CUSTS RSE CURE INCREASE N NET OF PEOPES DRUG Common Stock Earnings Hit $1.94 a Share, Against $1.91 Year Ago. HALF YEAR'S SALES UP MORE THAN $1,000,000 Volume Reaches $10,882,427, Compared With $9,870,173 in Same 1936 Period. BY EDWARD C. STONE. Net sales of Peoples Drug Stores, Inc, in the first six months of this year totaled $10.882.427.83. against $8.870.17331 in the first half of 1936, it was announced at the head office in Washington yesterday. Other store in- come brought total store revenues to $11,028,389.60, compared with $10,- 004,581 80 a year ago. After payment of dividends on the preferred stock, Peoples Drug earned 8194 a share on the common stock against $1.91 in the like period in 1936. While net sales scored a gain of more than $1.000.000 this year over last, expenses were also larger, result- ing in only a small gain in earnings for | the common stock. The long prevail- ing upward trend, however, was main- tained. The semi-annual report showed an operating profit of $576.643.96 in com- parison with $610.065.19 a year ago. After deduction of estimated Federal income and excess profits taxes the company reported a net profit for the 8ix months of $506.865.46, compared With $532.376.23 a year ago. Preferred stock dividends called for | $30.236.35 this year against $62.741.48 | in the same six months a year ago, leaving a net profit for the common stock of $476,629.11 compared witi $469.634.75. The reduction in preferred dividends Wwas due to the retirement of 10,000 | ghares of this stock. Peoples Drug | Teported an earned surplus as of June 30 of $2.985.176.27 in comparison with | $2.530.317.20. Total assets stood at ! $8,004,150.59, against §7,597,257.01 a | year ago. Institute Leaders Appointed. William H. Laughlin, president of | Washington Chapter, American Insti- | tute of Banking, announced yesterday the appointment of committee chair- | men who will direct the work of the | local chapter during the coming year. | The new chairmen include 21 of the most active chapter members, and they are already busy planinng the | activities of the Fall and Spring| semesters. The appointments foilow: | Administrative, Francis Robey, Bank | of Commerce & Savings; advisory, Hil- leory G. Hoskinson, Riggs National; | archives, J. K. Irelan, Washington | Loan & Trust; athletics, Raymond | Jones, National Metropolitan: audit, | W. L. Sanderson, Hamilton National; | banquet, R. H. Lacey, Columbia Na-f tional: debate, F. U. Rodger, Riggs National; dollars and sense, A. E. Henze, W. B. Hibbs & Co.; educational, | Paul Seltzer, American Security & | ‘Trust Co.; entertainment, George M. | Rowzee, Lincoln National; essay con- | test, G. Elmer Flather, Union Trust | Co.; finance, Richard Norris, Lincoln National; forum, T. Hunton Leith, | Becurity Savings & Commercial; house, B. Bruce Frentz, American Security & Trust Co.; membership, George Earn- | shaw, National Metropolitan; program, | Joseph R. Fitzpatrick, Second Nation al; public affairs, James Dulin, Amer- ican Security & Trust Co.; public education, Stuart Ogilvie, Second Na- | tional; public speaking, J. Earle Mc- Geary, W. B. Hibbs & Co.; publicity, | G. Crawford Turnbull, Morris Plan, | and women's, Myrtle Lewis, Liberty National. | Reduced Interest in Effect. The reduced interest rates on Farm Credit Administration loans, which were enacted by Congress over Presi- dent Roosevelt's veto, became eflective | on July 1 and July 22, Albert S. Goss, | land bank commissioner, announced yesterday. The 3!, per cent rate on Federal Land Bank loans will be effective as | of July 1, and the 4 per cent rate on land bank commission loans is effective as of July 22. The contract rate on new land bank loans will continue to be 4 per cent, with 1; per cent being rebated for one year begin- | ning July 1. Building Revival Forecast. Building supply companies can look forward to a renewal of residential construction activity about September despite the current lull acocording to experts of the Federal Housing Ad- ministration and the Federal Home Loan Bank System. Resurgence of residential construc- tion i expected to develop even with- out any sizable reduction in building material prices, although officials con- cede that increased prices have con- tributed to the steady decline in such oonstruction since February. Higher prices for some material, such as plumbing and heating apparatus, are expected this Fall. Heard in Financial District. ‘Trust Companies Magazine for July prints the address given before the District Bankers’ Association conven- tion by W. T. Vandoren, vice president and cashier of the Liberty National Bank, on “Protection 6f Beneficiaries and Trustees.” Rutherford J. Dooley, cashier of the National Bank of Washington, is taking his annual vacation. CLEARING H6USE ISSUES REPORT AT NEW YORK B the Associated Press. NEW YORK, July 24 —The weekly statement of she New York clearing house shows: Total surplus and undivided profits unchanged at $894,463,200. Total net demand deposits (average) decreased $20,247,000. Time deposits (average) increased $4,051,000. Clearings week ending today, $3.- 252,365,653, FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTOXN, D. RETAIL TRADE TURNS UP AFTER RECESSION HERE After slowing up for several weeks, retail trade in Washington depart- ment stores suddenly turned about during the last week and staged a lively rally which boosted retail sales 1441 per cent above the previous week and 593 per cent above the corresponding week a year ago. This improvement was in line with a defi- nite turn in the tide of retail activi- ties in many leading cities all over the United States, the Commerce De- partment reported. Bank clearings in Washington sup- ported the upturn in trade, the total for last week being $253842,778 comparison with only $21,604,789 in the corresponding week last year. Building permits likewise figured in a | sharp jump, the value of thase issued | during the week ending July 21 reach- | ing $737.400, against the much larger | figure of $449.400 in the previous week | and $344.600 in the same week in 1936. | The rest of the fifth district joined [in the retail trade advance during the week over both the previous week and the like 1936 period, the Com- in | Brisk Advance Boosts Store Sales 14.41 Per Cent Above Previous Week. 5.93 Above Year Ago. merce report said. Wholesale trade felt the stimulus of retail clearances, and considerable advance buying for Fall consumption was recorded. With the price structure firm, many mer- chants feel justified in buying moder- ately in advance of current needs, the summary commented. Coincident with the Commerce re- view came the Richmond Reserve Bank's summary of wholesale trade for June which covers 57 firms in the fifth district. Hardware was in the best demand with a 30 per cent gain over June, 1936. Demand for drugs | was up 14 per cent, groceries 12 per cent, dry goods 10 and shoes 9 per cent. In the first six months of 1937 sales in hardware revealed the best gain, 26 per cent over last year. were up more than 16 per cent, drugs 15, groceries 14 and dry goods 7. At the end of June groceries stocks were 19 per cent higher than a year ago, | dry goods 57, shoes 26 and hardware | 8 per cent, with no report on drugs. Collections were unusually good, the Richmond Bank noted. BRIGES-STRATTON EARNINGS JUMP ABOVE 1935 LEVEL Many Other Companies Also Report Substantial Gains in Net Profits. By the Associated Press. NEW YORK, July 24.—Briggs & Stratton Corp., Milwaukee, makers of automobile locks and small portable gasoline engines, reported indicated net profit for the quarter ended June 30 of $471.491, before Federal surtax, equal to $1.57 a share, compared with $271,377, or 91 cents a share, in the June, 1936, quarter. For the six months ended June 30 net profit was $900,662, before surtax, equal to $3 a share on 299,996 shares, compared with $593.227. or $1.98 a share, in the first half of 1936. Island Creek Coal. Island Creek Coal Co. and sub- sidiaries, West Virginia coal producer, reported net profit for the quarter ended June 30 of $213,487, equal, after dividend requirements on the preferred stock, to 30 cents a share on 593,865 $1 par common shares. This com- pared with $183,405, or 24 cents a share, in the June, 1936, quarter. Newport Industries. Newport Industries, Inc., Pensacola, Fla.. maker of naval stores—rosin, turpentine, ete.—reported net profit in the quarter ended June 30 of $356,310 before Federal surtax, equal to 68 cents a share, compared with $94,966, or 18 cents a share, in the June, 1936, quarter, Electrolux Corp. Electrolux Corp.. Dover, Del., maker of vacuum cleaners, profit for the quarter ended June 30 of $843.867 or 68 cents a share, com- pared with $836.286 or 68 cents a share in the June. 1936, quarter. For the six months ended June 30 net profit was $1,612,236 or $1.30 a com- mon share against $1.558,758 or $1.26 a share 'in the first half of 1936. Interborough Rapid Transit. Receivers preliminary report of In- terborough Rapid Transit Co. for the year ended June 30 showed a balance ‘nr $2,861,032 after rents and fixed charges against a balance of $4,155,- 287 in the preceding fiscal year. American Hawaiian S. S. American Hawaiian Steamship Co. reported profit in the quarter ended June 30 of $252,540 before Federal income taxes, compared with a profit of $300,643 in the June, 1936, quar- ter. For the six months ended June 30 the company reported a loss of $336,527 after strike expenses, but be- fore Federal income taxes, compared with a profit of $494,843 in the first half of 1936. Interlake Iron Corp. Interlake Iron Corp., Chicago, pro- ducer of merchant pig iron and com- mercial coke, reported consolidated net income for the quarter ended June 30 of $572,835 after charges and in- come taxes, but before Federal surtax, equal to 28 cents a share on 2,000,000 no par capital shares. This compared with & net loss of $48,978 in the June, 1936, quarter. Corporate earnings statements re- leased during the week showing profits per share included: June 30 Quarter, Acme Steel =3 Amer Brake Shoe _ Atlantic Refining Atlas Powder misD DS SZESRER DR, » [P OO e 5 bide ‘& Carbon_ o iscuit Wrigley 3 Twelve Months, June 30. Owens-Tll_Glass 48 Pub Service N s » & By the Associated Press. Brokers’ loans..._ Holdings United States securities.. Gold reserve .. Rediscounts Bank clearings - - Electric output (kilowatt hours) week ended July 17 Car loadings, week ended July 17 Crude oil production (barrels).._... Stock sales (N. Y. Stock Exchange) .. Bond sales (N. Y. Stock Exchange).. New financing Federal Reserve ratio. Clearings week ending July 17, $3,451,459,538, reported net | (Final three ciphers omitted in above.) WHEAT IRREGULAR WITH DEFERRED CONTRAGTS LOWER |Short Covering in July Fu- tures’ Contrasts With Selling Elsewhere. BY FRANKLIN MULLIN, Associated Press Market Writer. CHICAGO, July 24 —Late selling of September and December wheat | dropped prices of these cortracts 1!, to 174 cents a bushel today while grain | deliverable this month scored a slight | advance. The two-way market in wheat, re- flesting short covering in July and quiet but persistent selling of the de- ferred contracts, was paralleled in corn trade. July corn, on which delivery must be made next week, fluctuated rapidly at times over a 3',-cent range, but the deferred contracts, on which delivery of new corn will be possible, lost almost 3 cents. The pressure of hedging, represent- | Ing commercial sales to insure against | possible loss in purchase of grain in | the harvest belt, kept wheat below | yesterday's close practically the entire | session. Trading was listless at times and the market was thin, with July showing relatively less weakness than the later deliveries, reflecting to some | extent official figures that July 1 stocks on farms and in interior mills and elevators were the smallest on | record. Wheat closed !4 higher to 17x lower | compared with yesterday's finish, July | 1.205:, September 1.181,-5;, December | 1.2053-34: corn was 14 up to 27, down, July 1.0814, September 9974-1.00, De- cember 7434-T5: Oats lost 15-13, July 33; Rve %-21», July 90, and pro- visions were unchanged to 8 cents down. Loss of about 9 cents a bushel in wheat this ‘week stimulated domestic flour business, according to reports, and led to increased foreign inquiry for new domestic grain while at the same time tending to check heavy farm sales. Grain range at today: principal markets Prev High. Close. Close. July wheat Chicazo Minneapolis Kansas City_ Winnipe Liverpool 2 September ) Chicago 5 Minneapolis Kansas City Winnip'g. Oct. Liverp'l. Oct Chicazo Minneapolis Kansas City_ Winnipeg Liverpool Exchange. 4.96%. July corn: Chicazo 1.11 Kansas City_ 1.10% September corn Chicago 1.033 Kansas City_ 1.02'3 ‘Chicago Cash M3 Cash wheat—No. 1 red, 1.25%a 1.2! No. 2 red, 1.21%al1.25%; No. 2 hard, 1.25!a1.26%. Corn—No. 2 yellow, 1.09al.11'. Oats, new—No. 1 mixed, 321:a331;; No. 2 white, 35a36'4. Rye—No. 2, 901,892, Buck- wheat, sample fgrade, musty, 2.25. No soybeans. Barley—Feed, 53a70; malt~ ing, 71a90. A 6213 Market. Winnipes Prices. WINNIPEG. July 24 (F,.—Cash wheat: No. 4, Northern 1.44%: No_2 Northern, 1.41%: No. 3 Northern. 1.38%. 2 white, 62'2; No. 3 white, STEEL SCRAP BOOSTED. NEW YORK, July 24 (#).—Dow Jones & Co. said today No. 1 heavy melting steel scrap was advanced at Pittsburgh 25 cents a ton to $20 to $20.50, with indications that the mar- Shoe sales | | ment, together with a more generous ket may go still higher. Weekly Financial High Lights This week. Prev. week. $1,142,000 $1,147,000 2,526,190 2,526,190 8,833,005 8,835,407 12,172 15,046 5,711,211 5,816,126 Year ago. $970,000 2,430,227 8,185,322 3,391 5,731,232 2208005 2,096,266 2,029,704 770,075 3,520,750 5,500,810 $38,215,500 60,525,000 79.1% 825% 1% 1%-1%% 1% 682,205 3,520,750 4,595,720 $34,700,000 17,893,000 19.5% 82.1% 1% 1%-1%% 1% 120,359 2,947,700 7,727,440 $55,909,000 50,225,270 19.1% 70.9% 1% 1% % X% C., SUNDAY UTILITIES CLIMB FRACTIONS 10 §1 ON STOCK MARKET Come to Life in Heavy Trad- ing as Fears of New Laws Ease. CHRYSLER AT NEW HIGH WITH ADVANCE OF 274 Favorable Profits, Despite Rising Expenses and Falling Rates, Also Aid Power Issues. WHAT STOCKS DID Sat 2049 i Advances Declines Unchanged Total issues 583 1 BY FREDERICK GARDNER, Associnted Press Financiai Writer, NEW YORK, July 24.—Utilities ran away with today’s brief stock market session, coming to life in large volume for gains of fractions to a point or more. Fifteen minutes before the close power and light company issues were all over the ticker tape and the mojor- ity finished at the best levels of the session. Chrysler hit a comparatively fast upward pace at the start following the better than expected earnings state- dividend than had been looked for. The issye ended up 273 points at 1153, a new high for the move. Spurring the utility section, brokers said, were revived hqpes of an early adjournment of Congress and lessen- ing of fears further regulatory laws would be demanded for these cor- porations. In addition ability of the power contingent to show favorable profits in the face of rising expenses and falling rates was said to have attracted buyers. Volume Totals 505,790. The turnover was the best for any Saturday since May 1, transfers total- ing 505,790 shares. A week ago the aggregate was 248.340. The As- sociated Press average of 60 stocks advanced .6 of a point to 70.1. Prominent on the forward tilt were | Commonwealth & Southern at 31, the fastest mover of the day: United Corp. 61, Columbia Gas 15'a, Electric Power & Light 233, American & Foreign Power 103, North American 29, American Power & Light 12, American Water Works 2175, National Power & Light 113, Consolidated Edison 41 and Standard Gas 97s. Steels tripped over profit selling for a while, but came back with the rest on the last lap. Up as much as a point or so were U. S. Steel at 117%, Bethlehem 85'; and Republic 39';. Others on the push were General | Motors, 5634: Westinghouse, 156: | Santa Fe, 84!;; New York Central, 42',: Anaconda, 5735: Du Pont, 164: American Radiator, 22%, and Allis Chalmers, 697s. Corporate Bonds Ease. Secondary rail liens and some utili- ties and industrials showed a tendency to give ground in a quiet bond mar- ket Government obligations were steady on small turnover. Transactions to- taled approximately $230.000. International Hydro Electric 6s ad- | vanced 5 to 83, while Utilities Power | & Light 5s slid down a point to 52!, Consolidated Edison 3!'4s and North American 5s gave up minor fractions. The Associated Press averages for 10 utilities showed them unchanged at 98.1. In the rail category, St. Paul 5s lost a fraction to 2434 and St. Louis & San Francisco 4';s dropped '; to 2315, Also pointing lower were Southern Railway 4s, Reading 4':s, New York Central 33,s, Missouri Pacific 5s, Il- linois Central 434s and Great North- ern 4';s. The averages for 20 rails were unchanged at 92.8. ‘Transactions for all bonds totaled $2.732,500, face value, compared with $2,324,000 the previous Saturday. Curb Utilities Improve. On substantially improved volume for a short session, utility shares came forward to score gains of fractions to nearly two points in curb market dealings. Traders have favored these issues most of the week because, it is be- lieved, impending adverse utility leg- islation may be sidetracked for the time being by congressional adjourn- ment. Industrials and oils held fairly even, with small gains showing in many parts of the list. Electric Bond & Share advanced. 1% to 21% and American Gas & Electric ended at 38, up 1%, Niagara Hudson Power, United Gas and Ameri- can Superpower were fractionally better. Gulf Ofl dropped 14 to 59, ;Tue Humble Oil was unchanged at Y. Volume totaled 130,000 shares, com- pared with last Saturday’s transfers of 175,000. —_— SLOW PROGRESS SEEN IN SOVIET FARM AREA By the Associated Press. Slow progress in Spring grain plant- ings in the Soviet Union, due to poor seed, tractor breakdowns and shortages of parts, is resulting in de- laying the crops in many areas. The foreign agricultural service of the Bureau of Agricultural Economics in its weekly review of the farm situa- tion abroad added that an early har- vest is expected in southern regions of Russia, but that “a considerable lack of preparedness” for it has been noted throughout the country, includ- ing those areas where harvesting is about to begin. RETAIL AUT(; SALES RECEDE DURING JUNE Commerce Department statistics show retail sales of new passenger automobiles during June stood at 98 per cent of the 1929-31 average, com- pared with 104 in May and 109 in June s year ago. MORNING, JULY 25, 1937. (Copyrignt, 1937, New York Tribune, Ine.) COTTON FUTURES 60 DOWN SHARPLY Drop $1.50 a Bale on Crop Reports, but Recover Partially Later. By the Associated Press. NEW YORK, July 24 —Cotton lost $1.50 per bale early today to carry the market to the lowest levels since June, 1936. as large crop views spread, but partial recoveries followed. De- cember, which had eased to 10.95, came back to the early high of 11.14, and closed at 11.13 with final prices 8 to 18 points net lower. ‘The market opened 10 to 22 points lower in response to weakness at Liverpool. New York yesterday to views attrib- uted to cotton was likely if next year's crop was as large as the present indications for a crop this vear of 14'; million bales. Foreign selling was quite heavy and liquidation became general on the decline that carried several positions below the 1l-cent level and to net losses of 27 to 33 points. Pressure let up and the market responded to trade buying and cover- ing. theory a recovery was due following losses of $7.50 a bale in two weeks. ‘The amount of cotton on shipboard awalting clearance at the end of the week was estimated at 18,000 bales, against 32,000 last year and 24,000 two Vears ago. October December January 8pot quiet; middling, 1 Cottonseed Oil. Cottonseed oil futures duplicated the trend of cotton, breaking sharply early, then rallied partially, firally closing with net declines of 6 to 8 points. Sales totaled 108 contracts. There was general liquidation early, promoted by the good cotton weather and crop reports along with easiness of lard. Around 8.84 for December, however, pressure tapered off and rallies of 4 to § points from the lows when a covering movement disclosed an oversold market. Bleachable spot, nominal; September, 8.97; October, 891; December, 890; January, 8.93, and March, 8.95. New Orleans NEW ORLEANS. July futures closed steady at 13 to 18 points. October ices. 24 (A .—Cotton net declines of . Close. 1118 Pt January March Cottonseed oil cly prime Summer yellow. 9.10b-30a: prime crude nominal. ~ July’ 8.50b: September, 8.48b: October. 8.45b: December, 8.45b; January. 8.46b: March. 8.48b, b—Bid. a—Asked. SLIGH?INCR.EASE SEEN IN TRANSIT REVENUES Erceial Dispaten to The Star. NEW YORK, July 24—Revenues for the transit industry for the week ending July 17, 1937, based on tele- graphic reports received from a rep- resentative group of transit operating companies, showed a slight increase over last year. Transit Journal's Revenue Indicator stands at 100.55, which represents a gain of .55 per cent as compared with the corresponding week of 1936. For the week ending July 10, 1937, the indicator was 85.21. After a marked dip in the indicator last week, the transit industry showed a slight increase for this latest week. This was spread evenly throughout the eountry. » bléachable Foreign markets gave a| more bearish interpretation than had | the President that 8-cent | There was some buying on a | Other Currencies Quiet and Narrow At Week’s Close the Astociated Press Movement of principal world mone- tary units against the dollar in foreign exchange dealings yesterday were nar- row and quiet. With Paris markets closed the French franc kept even and the discount on the 90-day for- ward franc shrunk a trifle. The British pound following {ta precipitate rise last week lost a little ground. It is believed in foreign ex- change circles the British control would welcome this unit's return to around the $4.87 level. Some easing in the demand for sterling from Chi- nese and French sources was probably responsible for its dip. Sterling was quoted at one time at $4.967c, lower by 'z of a cent. The French franc remained unchanged at 373'; cents while 90-day futures were quoted at .17 of a cent discount compared with .181, of a cent vester- day. The Netherlands guilder dropped 04 of a cent to 55.16 while Swiss and Belgian currencies were unchanged. S HIGHER GROSS SHOWN BY ASSOCIATED G. & E. Special Dispatch to The Star NEW YORK, July 24.—For the 12 months ended June 30, Associated Gas and Electric Corp. reports total gross operating revenues of $121,755.300, an increase of $8,643,086, or 8 per cent above the previous 12 months period. Operating expenses and mainten- ance rose $2799,501 or 5 per’ cent higher than last year to $60.780,068. Taxes increased 23 per cent, or $2,729.232 above a year ago to & new high figure of $14,353,204, After deducting these items, net revenue of $46,622,028 remained. This is $3,114.353 or 7 per cent higher than the previous comparable period Further deduction of $10,754,434 for provision for retirements left operat- ing income of $35867,594. This is $1.187,844 or 3 per cent above the 12 | months ended June 30, 1936. OWN. BUILDING HOLDS ¢ WELL ABOVE 1335 Boom Continued in First Half of Year, According to National Survey. By the Associated Press. CHICAGO, July 24—The United States building boom continued the first half of 1937, a Nationwide survey disclosed today, despite rising ma- terial and labor costs. The National Association of Build- ing Trades Employers’ semi-annual survey showed construction in 44 States the first six months was valued at $1.558,619.517, an increase of 15 per cent compared with the cor- responding 1936 period. During the first six months of 1936 the increase in building was 85 per cent compared with the corresponding 1935 period. when the valuation was only $758,748.922. Current building operations apparently are at the best level since 1931, and the association's report indicated no signs of a let- down although the rate of improve- | ment over a year previous has nar- | rowed. Receive High Wages. E. M. Craig, secretary. said building mechanics in New York, Chicago, Cleveland, Cincinnati and Boston were back to former high wage levels. Most cities have the 40-hour week and in a few 30 to 35 hours work weeks prevail. “Due to the wactivities of dual na- tional labor groups securing collective bargaining concessions along with pay increases in many industrial plants,” Craig said. “building tradesmen are inclined to believe they are under- paid and demand higher wages than the public is able to pay consistent with current earning power. Increased (See BUILDING, Page G-4. How Is Business? Showing Current Business Activity Compared With the Same Week a Year [__Javs [serr Jocr [nov] orc Toan] Ago. [man [ace Iuav[oone ] oy 1 S N Bl B EEN SR GENERAL BUSINESS ACTIVITY for the country indicated by Bank Debits outside N. Y. City. Shaded areas show week of activity above the corresponding week of the previous year. Black areas indicate declines from same weeks twelve months earlier. ACTIVITY BY FEDERAL RESERVE DISTRICTS Cheek Transastions eomp: Showing Trend of Important Factors Business in Dollars (Checks Cashed) Employment (Dept. of Labor) Wages (Dept. of Labor; Cost of Living (Ind. Conf. Board)... Wholesale Prices (Fisher's Index). . . Agricultural Prices (Bureau of Labor) Movement of Goods (Car Loadings). Retail Trade (Fed. Res. Board) Building Contracts (F. W. Dodge) Failures (Dun’s) Bond Prices (Dow-. ) Stock Prices (Composite Do ones) Stock Mkt. Vol. (Shares Traded). .. o Present Trend *&w‘“o Upward . Steady . Upward Upward Downward Upward Downward Steady Upward Downward Downward Upward Downward wo - PEEE N EF TS SourNRomoEad ’ [+ 114 4 All rights reserved, Cembridge Associates, Boston ? A m THE OLD TRAILER DISCOVERS IT HAS POWER OF ITS INDUSTRY SHOWS BASIC STRENGTH DESPITE DECLINES Steel Operations at High Levels, Although Down Slightly in Week. POWER OUTPUT SOARS T0 RECORD HEIGHTS Auto Production Reduced Sharply in Preparation for New Models. Freight Loadings Gain, BY THOMAS E. FLANAGAN, Associated Press Financiar Writer, Trade and industry displayed under= lying vitality last week despite symp- toms of Summer lethargy in some divisions, Although down a trifle, steel opera« tions whirled along at a high rate. Electric power soared to new record heights, The motor industry cut proe duction sharply in preparation for output of new models. Preight cer loadings gained. Retail sales extended recent upturns. ted Press index of ine receded to 1047 from 1.05 the week previous. In the like week a year ago it stood at 942 Reports to the Department of Coma= merce from 37 cities for the week ended Wednesday “gave further evi- dence of a definite turn in the tide of retail activities, with sales maintaining a consistent upward trend “While the gains generally were not large in comparison with the like period last year, they were universally consistent and bore evidence of a reversal of conditions that prevailed in the early Summer weeks, Fall Buying Heavy. “Wholesale markets largely reflected retail conditions with considerable Fall buying beginning to make itg appearance in aubstantial volume.” Operations in the steel industry dee clined to 825 per cent of capacity from 827 the preceding week and compared with 709 in the like 1936 week, the American Iron & Steel In- stitute estimated, Reaffirmation of prices on almost all steel products for the fourth quare ter was in line with trade expectations. The industry continued to draw strength from substantial backlogs of orders. Slackening of new business Wwas seen as a purely seasonal phe- nomenon, and some observers said the new order curve had probably reached its low for the Summer. Extension of the rise in scrap steel prices was said to reflect both a hopes ful outlook for the industry and an apparent scarcity of old material, Auto Rate Slumps, Motor production fell abruptly to 88.055 units last week. lowest since Pebruary when the industry was afflict- ed with strikes. In the preceding week the total was 115,380 and in the like week last year, 89,329, The sharp cut in operations was occasioned mainly by shutdowns of one producer, Trade analysts said they believed operations would likely hold around the current level for the near- term. Trade circles noted a premilinary adjusted index of the value of retail sales of new passenger cars had drop- ped more than seasonally from May to June. according to the Department of Commerce. In the week ended July 17 freight carloadings totaled 770,075, an increase of 129 per cent over the preceding week and 6.9 per cent ahead of the corresponding week last year. The upturn, analysts said, was a little less than seasonal. With the exception of coal, grain and grain products shipments, all groups of traffic showed an upturn over a year ago. Some commentators said grain load- -ings were down because farmers were holding crops on the farm owing to surplus production. Power Gain Is Sharp. Production of electricity in the week ended July 17 rose to a height never before touched—2.298.005.000 kilowatt hours, the Edison Electric Institute reported. The total was 13.2 per cent above the like 1936 week and eon- trasted with a gain of 7.2 per cent scored over last year in the weels ended July 10, the period including Ine dependence day. The extraordinary vitality of the industry at this season, utility men said, bore witness to both the well~ sustained industrial demand for power and widening non-industrial uses of electricity. The financial scene provided busi- ness observers with evidence of nu- merous good profits in the second quarter. Although earnings were generally ahead of the like period last year, it was noted the rate of profit gain had slowed down from the first quarter in some instanges. This phenomenon experts attributed large 1y to rising operating costs. The stock market, traditional ba- rometer of hopes and fears in business circles, moved irregularly forward. Wall Street experts noted demand had tended to shift from some leaders to less prominent shares, In the bond market a rise of United States Government obligations afe forded a bright spot. Corporate loans advanced. Foreigns were generally higher. Staple Average Down. Abrupt declines in farm staples pulled the average of commodity prices lower despite a rise in hog quotations to a 10-year peak and fure ther sharp gains in scrap steel. As trade and industrial analysts wound up the week, they said one of the most important factors remained the outlook for robust farm purchas- ing power. On this score they noted cash income of farmers this year was estimated at & new top since 1929. RICHMOND.—Department _store__sales and wholesale trade in the fifth Federal Reserve district showed a substantial in- crease during the week over the same period last year. Richmond bank debits were slizhtly ahead of the previous week and the same week a year ago. PHILADELPHIA —With passing of the heat wave and advent of a normal work week, ~retail sales showed _considerable improvement. the Devartment of Com- merce reported. Bank _clearings rose te $374.000.000 from $£371,000,000 in the like week of IB:G.