[Statistical Abstract of the United States, 1963, p. 506] No. 678. Industrial and commercial failures—Number and liabilities, by industry and size of liability: 1955–62—Continued

[Liabilities in thousands of dollars. Excludes Alaska and Hawaii. See footnotes 2 and 3, table 676)

Source: Dun & Bradstreet, Inc., New York, N.Y.; “The Failure Record Through 1961," and records. Mr. MORSE. My colleagues will be There has come to my attention a re bility of the lumber industry. I hope particularly interested in the source of port on a further Dun & Bradstreet that it will be possible to develop a better the data contained in table No. 678 of analysis of business failures, reproduced picture of the profit situation because, in the Statistical Abstract. The footnote by the Southern Lumbermen in the Oc my judgment, the data presently being of the table shows that the source of tober 15, 1963, issue, at page 6. It is used do not adequately reflect the probthis Government table is none other than contained in an editorial entitled "Grat- lems that may be faced by various comDun & Bradstreet itself.

ifying Statistics.” I ask unanimous con ponents of the forest products industry. The only conclusion I can draw from sent that this editorial be printed at this in my judgment, the National Lumber the statistics under consideration is this: point in my remarks.

Manufacturers Association has perThe original Dun & Bradstreet state There being no objection, the editori- formed a fine service by its effort to ment which showed failures in the lum al was ordered to be printed in the make a detailed analysis of the profit ber industry declining from 194 in 1961 RECORD, as follows:

picture in the lumber industry. to 163 in 1962 apparently represents the

GRATIFYING STATISTICS

EXHIBIT 1 raw data for that industry and the larger

The industry studies department of Dun & LUMBER INDUSTRY PROFIT RATIO LAGS BADLY figure cited in the Statistical Abstract- Bradstreet, Inc., recently issued its “Failure

AMONG MAJOR MATERIAL PRODUCERS, SAYS with Dun & Bradstreet as the source Record Through 1962," a statistical record of

SPOKESMAN includes not only the lumber mills but the business failures during that year, based

on a comprehensive nationwide study. other types of establishments manufac

WASHINGTON, D.C., October 10.-A spokesThis report sets forth the fact that in all

man for the lumber industry today called turing various wood products, which, of lines of business in 1962 there were a total

upon producers to continue their efforts to course, is not the same for comparison of 15,782 business failures; but a cheering

improve the economic position of the induspurposes. note is found in the fact that this was a

try and overcome factors that kept 1962 profIt is entirely possible that profits in reduction of 8 percent from the 17,075 in

its to a disappointing 2.5 percent of sales.

Although slightly better than the 1.9 percent the lumber industry are not properly re- 1961. Even so, the total liabilities of these

failures was in excess of a billion dollars, a ported by various statistical surveys, both

figure for 1961, last year's profit picture still

compared unfavorably with that of competprivate and public, but again, the data staggering evidence of the wear and tear of our economy.

ing industries in the building-materials field, supplied in attachment 6 by the NLMA

From the lumberman's standpoint, how

according to Mortimer B. Doyle, executive shows that since 1960, corporate net ever, there is some cheer to be derived from

vice president of the National Lumber Manuprofits after taxes as a percentage of these sad statistics. In the table showing

facturers Association. sales after Federal income taxes in the the failure rate per 10,000 operating con

The profit level for manufacturing induslumber and wood products-except fur cerns in the manufacturing industries, lum

tries in 1962 was 4.6 percent, according to the

Quarterly Financial Report for Manufacturniture-industry have risen by 60 percent ber manufacturing ranks close to the bottom from 1.7 to 2.7 percent. At the same

of the list with a total of only 44 failures, ing Corporations, published by the Federal as compared with 220 in transportation

Trade Commission and Securities and Extime, profits for all manufacturing equipment, 212 in furniture, 194 in electric

change Commission. For primary metals it corporations--except newspapers—have machinery, etc. In the classification of re

was 4.4 percent; for stone, clay, and glass risen approximately 5 percent, from 4.4 tail lines of business, dealers in lumber and

products, 5.6 percent. to 4.6 percent and profits for the primary building materials also made a relatively

"It is fairly obvious from this comparison," metal and the stone, clay, and glass good showing-only 54 per 10,000 operating

said Mr. Doyle, “that the relative profit posiconcerns, compared with 161 in children's groups have declined.

tion of the lumber industry is extremely poor It is true that lumber profits are subwear, 145 in sporting goods, 105 in furniture

and that if the industry is to regain its and furnishings, etc.

health and improve its productive facilities, stantially below levels achieved in 1949,

The lumber business is not the most profit

the profit ratio must be improved.” but they are above the low point reached able business in the world; it has its ups

Although the dollar value of lumber and in 1957 and again in 1960. A politician and downs. But it should be a source of

wood products sales has nearly doubled since might want to argue that the improve- satisfaction to those engaged in it, manu

1949, the lumber executive pointed out, net ment in profits is a direct result of the facturers and retailers, that it is excelled by profit in 1962, after taxes, was at the same programs of the administration now in few industries in the country from the stand dollar level as it was in 1949 (actually less in power. I do not for 1 minute contend point of substantial stability.

terms of 1949 dollars). During the same pethat the 60-percent gain in the per

riod, competitive industries achieved substanMr. MORSE. The editorial concludes

tial increases in profits in proportion to sales. centage of profits this industry has en with the observation:

“In 1962 the slight increase in single-family joyed results from actions taken only by

The lumber business is not the most prof- housing starts was reflected in a similarly a Democratic administration. The evi itable business in the world; it has its ups slight increase in the consumption of lumdence is clear, as I stated on September and downs. But it should be a source of ber. Over the 13-year period from 1949 to 13, that the industry, itself, deserves a satisfaction to those engaged in it, manu 1962, however, the 25-percent increase in substantial part of the credit for having facturers and retailers, that it is excelled such construction far outstripped the 11worked hard to improve its production

by few industries in the country from the percent increase in lumber consumption,” and its market. At that time, I also standpoint of substantial stability.

said Mr. Doyle. pointed out that the improved situation I shall continue to look forward in the

Mr. Doyle noted, with irony, that a recent

Dun & Bradstreet report erroneously credits reflects action taken by the Government, months that lie ahead to assisting, in

the lumber industry with greater economic both directly and indirectly, to assist the every way possible, the efforts that may achievements that it could honestly claim. lumber industry.

be undertaken to improve the profita- Although stating that its analysis was based

on only 75 lumber manufacturers, Dun &

Net profits (after taxes)

Corporate net profits after taxes as a perBradstreet concludes that production and

centage of sales after Federal income taxes

[In millions of dollars) sales were up, along with profits, that business failures had declined, and that the over

All manuall financial condition of the industry is

All manu-
facturing

facturing

Lumber sound.

Lumber Primary Stone, clay, and wood corpora

corpora Primary Stone, clay, and wood "We wish these figures applied to the en Year tions metal and glass products

Year tions metal and glass products

(except tire industry," Mr. Doyle commented, "and

(except

(except industries | products

industries products (except news

furniture)
news-

furniture) we hope they will in the near future. AC

papers)

papers)
tually, of course, it is impossible to gage the
economic condition of an industry consisting

1949..
8, 711

799
311

1949
163

4.9 of some 33,000 companies on the basis of a

5.8
8.0

4.4 1955..

1955.. 15, 099

631

280
2,016

5.4
7.6

8.6 mere 75. In all likelihood, it should be em

5.4 1957. 15, 438

619

1957.

121
1, 864

4.8
6.6
7.5

2.3 phasized, the 75 companies Dun & Bradstreet

12, 670 1, 251

514

1958.
153

4.2
5, 2
6.8

2.8 surveyed are among the industry's biggest, 1959.

16, 328 1,581

685

268
1959.
4.8
5.5
7.9

4.2 1960. 15, 198 1, 438

573

1960.

105 highly integrated companies; the eight listed

4.4
5.2
6.6

1.7 1961.. 15, 311

1961.
1,290
543
114

4.3
4.8
5.8

1.9 in the report certainly are.

1962.. 17, 727

581 1, 252

1962.
163

4.6
4.4
5.6

2.5 "In reply to our query,” said Mr. Doyle,

763
244

19631
9, 237

95

4.6
5.0
4.7

2.7 "Dun & Bradstreet stated that its analysis of the 75 companies 'was not restricted to their 1 1st half.

1 1st half. lumber manufacturing operations.' "

Source: Federal Trade Commission, Securities and

Source: Prepared by National Lumber Manufacturers To illustrate the unreliability of industry Exchange Commission (Quarterly Financial Report for

Association from Quarterly Financial Report for Manu,

facturing Corporations, Federal Trade Commission, and figures based on 75 companies, Mr. Doyle re- Manufacturing Corporations), 1949-63.

Securities and Exchange Commission. ferred to the number of reported business failures. According to the Dun & Bradstreet Gross sales for selected manufacturing study, failures in the lumber industry de

industries clined from 194 in 1961 to 163 in 1962. Ac

[In millions of dollars] tually, according to the Statistical Abstract

Average weekly earnings for employees for of the United States for 1963, an official U.S. All manu

selected industries Government publication of established re

facturing

Lumber

[Actual dollars) pute, failures in the lumber and wood prod

corpora. Primary Stone, clay, and wood ucts industries totaled 497 in 1961 and 386 in

Year tions metal and glass products
(except

All manu

industries 1962.

products (except
news-

furniture)
facturing

Lumber

corporapapers)

Primary Stone, clay, and wood NOTE.-Figures substantiating all state

tions metal and glass

products ments made above are attached.

(except industries products (except 1949.

newsEmployment-Production workers 178, 898 13, 882

furniture) 3,875 3, 733 1955. 278, 394 26, 645 7,350

papers)
[In thousands of workers)

5, 146
320, 039
28, 394 8, 238

5, 251
1958 305, 281 24, 238

7, 599

5, 462

1949. 1959

53.88 All manu337, 817

60. 94 28, 514 8, 653

54. 31

48.02 6, 454

75.70

1955.1960..

92. 51 345, 690

77.00 facturing Lumber

63. 99 27, 771 8, 669

6,081

1957. 81. 59 1961.

99.00 corpora Primary Stone, clay, and wood 356, 424

82. 82 26, 672 9, 310

66. 64 5,886 1958. 82. 71 101.11

84. 80 Year 1962.

69.09 tions metal and glass

389, 404 products

28, 256 10, 422

6, 639

1959. 88.26 1963 1.

112. 19

91. 46 (except industries products

201, 714 (except

74. 24
15, 208
5, 196

3, 487
1960. 89. 72 109.59 92. 97

73. 71 furniture)

1961.. 92.34 114.95 95. 24

77.03 papers) 1 1st half,

1962.. 96.56 119.50 98.57

78. 61 Source: Federal Trade Commission, Securities and 1949.11, 790

968
443

680 Exchange Commission (Quarterly Financial Report for Source: U.S. Department of Labor, Bureau of Labor 1955.13, 288 1, 116 496 672 Manufacturing Corporations), 1949-63.

Statistics, Employment and Earnings (monthly). 13, 189 1, 118 493

588 1958. 11, 997

928
458

549 1959. 12, 596

953
494

594
1960..
12, 562

992
483

570 1961.. 12, 046

914
455
535

Wholesale price indexes by selected commodities
1962.
12, 417

938
460
544

(1957–59=100]
Source: U.S. Department of Labor, Bureau of Labor
Statistics, Employment and Earnings (monthly).

1950

1955 1957 1958 1959 1960 1961 1962 3 months Estimated lumber production, domestic con

1963 sumption, and housing units started 1

All commodities.

86.8 93. 2 99.0

100.4 100.6 100.7 100.3 100.6 99.9 Softwood Softwood Single-family All construction materials.

83.0 95.1 99.0

98. 9 102.1 100.5 98.6 98.3 97.7 Year production consumption housing starts Metals and metal products.. 72. 7 90.0 99.7 99. 1 101.2 101.3 100.7 100.0

99.4 (million (million (thousands Nonmetallic mineral products. 78.6 91.3 98.8 99.9 101. 2 101.4 101.8 101.8 103.0 board feet) board feet) ? of units)

Flat glass...

79.3 94, 5 100.2 100.0 99.9 97.9 96.8 97.0 102,2 Concrete products.

82.4 92.7 98.7 100.0 101.3 102.4 102.5 1949.

102.6 105.0
27, 197
28, 125

794
Structural clay products.. 71.7 89.3 98.2 99.8 102.1 103.1 103. 2 103.5

94. 1 1955.

30, 293
32, 830
1, 194 Lumber and wood products... 94. 1 102.3 98.5 97.4 104. 1 100.4 95.9 96.5

96.4 1957

27, 100
29, 618

873
Softwood lumber.
93.7 104.0 98.5 96.6 105.0 98.6 93. 5 95.9

96.4 1958.

27, 379
30. 293

975 1959.

30, 509
33, 639

1, 251
1960.
26, 672 28, 974

1, 009 1961

Source: U.S. Department of Labor, Bureau of Labor Statistics.
25, 883
29, 063

989 1962

26, 615
30, 507

994

Year

1957.

news

1957.

1 Subject to revision.
2 Exports deducted.
Source: Statistics compiled by National Lumber AMENDMENT OF FOREIGN AS-
Manufacturers Association.

SISTANCE ACT OF 1961
Number of failures of selected industrial
corporations

The Senate resumed the consideration

of the bill (H.R. 7885) to amend further All manufacturing

Lumber the Foreign Assistance Act of 1961, as corpora Primary Stone, clay, and wood Year tions metal and glass

products

amended, and for other purposes. (except industries products (except news

furniture)

Mr. MORSE, Mr. President, I ask papers)

unanimous consent that certain mate

rial on the Alliance for Progress pro1951. 1,533

40
31

220 1955.. 2, 202

120
49

336 gram be printed at this point in the
1958.
2, 680
177
62

530 1959.. 2, 465 136 48

503 RECORD so that Senators will have it 1960. 2, 612

167
44

520 1961.. 2, 825

183
64

497

available in printed form tomorrow when 19622, 575 175 59

386

we discuss the Alliance for Progress Source: Statistical Abstract of the U.S., 1963.

program.

There being no objection, the mate-
rial was ordered to be printed in the
RECORD, as follows:
TABLE I.-Funds made available to Latin

America under the auspices of the Alliance

for Progress [Period of operation: July 1, 1961, to Feb. 28, 1963)

Millions (a) By AID---

$747.8 (b) By Food for Peace.

317.7 (c) By the Export-Import Bank.- 295.5 (d) By the IDB (Social Progress Trust Fund)----

336.9 (e) By other sources (contingency fund, etc.)

130.7

Total.--.

1,818.6 Sources: AID, Department of State.

TABLE II.-Funds made available to Latin

America under the auspices of the Alliance
for Progress
[Period of operation: July 1, 1961, to
Feb. 28, 1963]

Millions
Argentina--

$165.0 Bolivia-

65. 2 Brazil.

289.0 Chile--

299.8 Colombia--

163.8 Costa Rica

11.8 Dominican Republic.

61.5 Ecuador---

59.9 El Salvador

29.2 Guatemala ---

20.3 Haiti.--

13.9 Honduras

9.4 Mexico.--

164.9 Nicaragua

16. 0 Panama-

33.5 Paraguay

15.9 Peru--

85.1 Uruguay---

27.5 Venezuela

112.6 Source: AID, Department of State. TABLE III.-Foreign aid disbursements to

Latin America

Development loans (as of June 21,
1963):

El Alto Airport.-
Highway maintenance
Feasibility studies..

COMIBOL mine rehabilitation --
Social progress trust fund loans (as of
May 31, 1963):
Corporación Boliviana de Fo-
mento (Banco Central de Bo-
livia): Financing the settlement
of 8,000 farm families of an
estimated cost of $15,321,428.---
Corporación Boliviana de Fo-
mento (Banco Central de Bo-
livia): Financing the construc-
tion of housing for low-income
families of an estimated cost of
$5,429,000.-

200

Export-Import Bank loans (as of Apr.
30, 1963);
Purina de Argentina S.R.L.: Ma-

chinery, equipment, and serv-
ices for construction of livestock
and poultry feed mill..---
Interamerican Dehydration Co.,

S.A. (Banco Ind. de la Rep.
Argentina): Machinery, equip-
ment, and services for alfalfa de-

hydrating plant.---
Siderugia Campana S.A. (SI-

DERCA) (Banco Ind. del Rep.
del Argentina): Machinery.
equipment, and services for

steam electric generating plant.--
Servicio Electrica del Gran Bu-
enos: Electric power IGE.

579
John Deere SAIC: Tractor-pro-
ducing facilities.

1,280
Government of Argentina: Com-

modities-cancellation pending --- 50,000

6, 500

4,332

4,000

OTHER

BOLIVIA
[Obligations in thousands of dollars)

250

Supporting assistance:

Engineering construction units...
Railway rehabilitation...
Public works...
Support for Public Law 480, title

III distribution program.
Public Law 480:

Title I: Bread grains, cotton, dairy

products, rice, vegetable oil, and

wheat flour.
Title II: Bread grains, coarse

grains, fats and oils, dry beans,

and milk products...-
Title III: Beans, butter, cheese,

milk, bulgur, flour, and vege

table oil.
Title IV: Bread grains, rice, vege-

table oil, and dairy products.
Peace Corps (as of Apr. 30, 1963):

Rural development, rural commun-
ity action, public health, and uni-
versity education...

85

237

51 207 211 20 19 28 3

2 105

7 131

50 110 42

179 804 145 40 3

225
400
145
140

EstiFiscal |mated, year

fiscal 1962 year

1963

377

100

116

5 250

97

202

Development grants Livestock improvement

585

1,000 Industrial management and productivity.-

62

65 Development of university curriculum. 2 Civil aviation.-

203

300 Agricultural servicio, Inter-American. Agricultural schools..

25

20 Agricultural extension. Science Graduate physics

47 300 Research and technical services.. Science-Metallurgy

50

Agricultural demonstration centers...
University of Cordoba: Engineering -- 10 300 Agricultural engineering -
Public safety -----

1

15 Supervised agricultural credit. Techno-economic studies: Sources of

Agricultural economics.--capital investment funds for indus

Cooperative product marketingtrial and resource development ---- 25

Marketing and cooperative staff. Statistics.

10 65 Agricultural administration.. Techno-economic studies: Adviser to

YPFB procurement... CAFADE group -

92

Minerals survey. Techno-economic studies: Taxes.

49

Aftosa laboratory University of Cuyo: Economics...

450

Industrial development. Colombia University: Business ad

Civil aviation -ministration.

151

Engineering and transportation adResources development research

84

visory services.-Technical support.-

179 160 Geodetic mapping serviceAerial photomapping

30 Labor... Industrial districts.

65

Health and sanitation services.. Industrial vocational schools..

120

Environmental sanitation... Mar del Plata: Land grant college

Administrative support, health servcontract.

200

ice.. Labor Management Institute.

30

Industrial education project. Agriculture Economic Institute.

345

Rural school construction.. Housing

50

Rural education project. Fruit production: Rio Negro Valley

30

Urban school construction.. Techno-economic studies..

5

Administrative support.
Commercial education.
Textbook publication.

Public safety program..
LOAN AUTHORIZATIONS

Government management assistance..

Financial advisory services.
[In thousands of dollars]

Data sampling--
Communications media-

Engineering and seasibility studies
Fiscal | Fiscal

and services.
year year

Special studies.
1962 1963

Excess surplus property.
Project engineering -

Technical support--
Development loans (as of June 21,

Agricultural development.. 1963):

(Following former projects inNonproject..

20,000

cluded: agricultural extension, reCentral housing bank.

12,500

search and technical services, Route 12.

6, 700 IBRD roads.

marketing and cooperative staff 30, 500

and agricultural administration, Feasibility studies.

3,000 Grain storage.

and credit advisory staff.) 21, 700

Industrial education.... Self-help housing

2,000 Social progress trust fund loans (as of

Occupational health program. May 31, 1963):

Support for national planning. Republic of Argentina: Equip

Cooperative wool marketing ment for advanced technical

Vaccine production and disease coneducation for the national uni

trol.. versities of Argentina of an esti

Engineering construction units. mated cost of $10,000,000.-

Territorial labor construction..

5,000 Banco Hipotecario Nacional: Fi

Self-help community water. nancing the construction of hous

Excess surplus property. ing for low-income families of an

Banco Minero.--estimated cost of $60,000,000.-

30,000

600
59
13
200
339
164

4
25
46

180 420

450

200
254

40
200
169

Agricultural institutions..
Agricultural economics and coopera-

tives.
Agricultural research and develop-

ment.
Agricultural advisory service..
Agricultural servicio...
Mineral and water resources identi-

fication..
Electrical energy management train-

ing--
Industrial productivity..
Railroad shop and maintenance

training -
Air navigation aid traffic control.
Meteorological training center -
Labor leader training.
Employment service and manpower

survey.
Malaria eradication.
Community water supply develop-

ment.
Public health advisory service.
Promotion of health in the Brazilian

northeast
Public health methods.
Occupational health..
Secondary industrial education..
Secondary industrial education

servicio...
Elementary education....
Elementary education servicio..
Pernambuco alliance for progress ele-

mentary and basic education ---
Secondary education...
University education..
Marine engineering and naval archi-
tecture ----
See footnotes at end of table.