[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 particularly interested in the source of the data contained in table No. 678 of the Statistical Abstract. The footnote of the table shows that the source of this Government table is none other than Dun & Bradstreet itself. The only conclusion I can draw from the statistics under consideration is this: The original Dun & Bradstreet statement which showed failures in the lumber industry declining from 194 in 1961 to 163 in 1962 apparently represents the raw data for that industry and the larger figure cited in the Statistical Abstractwith Dun & Bradstreet as the sourceincludes not only the lumber mills but other types of establishments manufacturing various wood products, which, of course, is not the same for comparison purposes. It is entirely possible that profits in the lumber industry are not properly reported by various statistical surveys, both private and public, but again, the data supplied in attachment 6 by the NLMA shows that since 1960, corporate net profits after taxes as a percentage of sales after Federal income taxes in the lumber and wood products-except furniture-industry have risen by 60 percent from 1.7 to 2.7 percent. At the same time, profits for all manufacturing corporations-except newspapers-have risen approximately 5 percent, from 4.4 to 4.6 percent and profits for the primary metal and the stone, clay, and glass groups have declined. It is true that lumber profits are substantially below levels achieved in 1949, but they are above the low point reached in 1957 and again in 1960. A politician might want to argue that the improvement in profits is a direct result of the programs of the administration now in power. I do not for 1 minute contend that the 60-percent gain in the percentage of profits this industry has enjoyed results from actions taken only by a Democratic administration. The evidence is clear, as I stated on September 13, that the industry, itself, deserves a substantial part of the credit for having worked hard to improve its production and its market. At that time, I also pointed out that the improved situation reflects action taken by the Government, both directly and indirectly, to assist the lumber industry. There has come to my attention a report on a further Dun & Bradstreet analysis of business failures, reproduced by the Southern Lumbermen in the October 15, 1963, issue, at page 6. It is contained in an editorial entitled "Gratifying Statistics." I ask unanimous consent that this editorial be printed at this point in my remarks. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: GRATIFYING STATISTICS The industry studies department of Dun & Bradstreet, Inc., recently issued its "Failure Record Through 1962," a statistical record of the business failures during that year, based on a comprehensive nationwide study. This report sets forth the fact that in all lines of business in 1962 there were a total of 15,782 business failures; but a cheering note is found in the fact that this was a reduction of 8 percent from the 17,075 in 1961. Even so, the total liabilities of these failures was in excess of a billion dollars, a staggering evidence of the wear and tear of our economy. From the lumberman's standpoint, however, there is some cheer to be derived from these sad statistics. In the table showing the failure rate per 10,000 operating concerns in the manufacturing industries, lumber manufacturing ranks close to the bottom of the list with a total of only 44 failures, as compared with 220 in transportation equipment, 212 in furniture, 194 in electric machinery, etc. In the classification of retail lines of business, dealers in lumber and building materials also made a relatively good showing-only 54 per 10,000 operating concerns, compared with 161 in children's wear, 145 in sporting goods, 105 in furniture and furnishings, etc. The lumber business is not the most profitable business in the world; it has its ups and downs. But it should be a source of satisfaction to those engaged in it, manufacturers and retailers, that it is excelled by few industries in the country from the standpoint of substantial stability. Mr. MORSE. The editorial concludes with the observation: The lumber business is not the most profitable business in the world; it has its ups and downs. But it should be a source of satisfaction to those engaged in it, manufacturers and retailers, that it is excelled by few industries in the country from the standpoint of substantial stability. I shall continue to look forward in the months that lie ahead to assisting, in every way possible, the efforts that may be undertaken to improve the profita LUMBER INDUSTRY PROFIT RATIO LAGS BADLY AMONG MAJOR MATERIAL PRODUCERS, SAYS SPOKESMAN WASHINGTON, D.C., October 10.-A spokesman for the lumber industry today called upon producers to continue their efforts to improve the economic position of the industry and overcome factors that kept 1962 profits to a disappointing 2.5 percent of sales. Although slightly better than the 1.9 percent figure for 1961, last year's profit picture still compared unfavorably with that of competing industries in the building-materials field, according to Mortimer B. Doyle, executive vice president of the National Lumber Manufacturers Association. The profit level for manufacturing industries in 1962 was 4.6 percent, according to the Quarterly Financial Report for Manufacturing Corporations, published by the Federal Trade Commission and Securities and Exchange Commission. For primary metals it was 4.4 percent; for stone, clay, and glass products, 5.6 percent. "It is fairly obvious from this comparison,” said Mr. Doyle, "that the relative profit position of the lumber industry is extremely poor and that if the industry is to regain its health and improve its productive facilities, the profit ratio must be improved." Although the dollar value of lumber and wood products sales has nearly doubled since 1949, the lumber executive pointed out, net profit in 1962, after taxes, was at the same dollar level as it was in 1949 (actually less in terms of 1949 dollars). During the same period, competitive industries achieved substantial increases in profits in proportion to sales. "In 1962 the slight increase in single-family housing starts was reflected in a similarly slight increase in the consumption of lumber. Over the 13-year period from 1949 to 1962, however, the 25-percent increase in such construction far outstripped the 11percent increase in lumber consumption,” said Mr. Doyle. Mr. Doyle noted, with irony, that a recent Dun & Bradstreet report erroneously credits the lumber industry with greater economic achievements that it could honestly claim. Although stating that its analysis was based on only 75 lumber manufacturers, Dun & Bradstreet concludes that production and sales were up, along with profits, that business failures had declined, and that the overall financial condition of the industry is sound. "We wish these figures applied to the entire industry," Mr. Doyle commented, "and we hope they will in the near future. Actually, of course, it is impossible to gage the economic condition of an industry consisting of some 33,000 companies on the basis of a mere 75. In all likelihood, it should be emphasized, the 75 companies Dun & Bradstreet surveyed are among the industry's biggest, highly integrated companies; the eight listed in the report certainly are. "In reply to our query," said Mr. Doyle, 19631 "Dun & Bradstreet stated that its analysis of the 75 companies 'was not restricted to their lumber manufacturing operations.'" Ac To illustrate the unreliability of industry figures based on 75 companies, Mr. Doyle referred to the number of reported business failures. According to the Dun & Bradstreet study, failures in the lumber industry declined from 194 in 1961 to 163 in 1962. tually, according to the Statistical Abstract of the United States for 1963, an official U.S. Government publication of established repute, failures in the lumber and wood products industries totaled 497 in 1961 and 386 in 1962. NOTE.-Figures substantiating all statements made above are attached. Employment-Production workers [In thousands of workers] Source: Federal Trade Commission, Securities and Exchange Commission (Quarterly Financial Report for Manufacturing Corporations), 1949-63. Source: Prepared by National Lumber Manufacturers Association from Quarterly Financial Report for Manufacturing Corporations, Federal Trade Commission, and Securities and Exchange Commission. Average weekly earnings for employees for selected industries Year All manufacturing corporations (except Primary Stone, clay, metal industries Lumber and wood [Actual dollars] and glass products products All manu (except furniture) papers) furniture) 5,146 papers) Export-Import Bank loans (as of Apr. 30, 1963): Purina de Argentina S.R.L.: Ma- 300 200 4,332 579 1,280 Government of Argentina: Commodities-cancellation pending... 50,000 Source: AID, Department of State. TABLE III.-Foreign aid disbursements to Latin America ARGENTINA [Obligations in thousands of dollars] OTHER Supporting assistance: Nonproject loan 1. 1 Contingency fund. Engineering construction units___. Railway rehabilitation.. 250 700 Fiscal year [Obligations in thousands of dollars] Public Law 480: Fiscal Fiscal year year 1963, 1962 estimated 65 Title II: Bread grains, coarse grains, fats and oils, dry beans, and milk products... Title III: Beans, butter, cheese, milk, bulgur, flour, and vegetable oil... 300 Agricultural servicio, Inter-American. 237 20 Agricultural extension. 51 Title IV: Bread grains, rice, vegetable oil, and dairy products.. 3, 590 2,500 300 Research and technical services.. 207 Agricultural demonstration centers.. 300 Agricultural engineering.. 20 Peace Corps (as of Apr. 30, 1963): Rural development, rural community action, public health, and university education.... Techno-economic studies: Sources of capital investment funds for indus Cooperative product marketing. trial and resource development___ Water resources (northeast). 110 Agricultural production and market Peace Corps (as of Apr. 30, 1963): Agricultural extension, Sao Francisco River Valley development, urban community development and public health education............. Republic of Chile: Financing of ing (northeast)----- 165 Fisheries (northeast)--- 85 Agricultural resources and extension 1 Contingency fund. (northeast). 140 Resources inventory (northeast).... 520 Industrial development (northeast) Santa Cruz thermal power.. Social Progress Trust Fund (as of May Superintendencia de Aguas e Es- Scholarship program. Pediatrics equipment... LOAN AUTHORIZATIONS [In thousands of dollars] Savings and loan system.. 20 15, 500 Primary school construction. 55 Customs administration.. 65 Marketing... 80 30, 1963): Industrial training.. 180 Manufacturea Metales: Expan Office of Engineering Services. sion of facilities... 105 Medical care... 195 Program assistance.. Social progress trust fund loans (as of May 31, 1963): potable water systems for the cities of Concepcion and Talcahuano of an estimated cost of $4,248,120... Corporacion de Fomento de la Corporacion de Fomento de la Export-Import Bank Loans (as of Apr. 2,470 1,268 Cia Minera Andina: Copper mines. 45, 625 Republic of Chile: Refinancing of U.S. dollar purchases___ 35,000 10,000 5,000 2,000 2,300 600 820 15,000 Social progress trust fund loans (as of May 31, 1963): 2,454 15, 200 Establecimiento Publico Empresas Municipales de Cali (Republic of Colombia): Financing the expansion and improvement of potable water systems of an estimated cost of $4,780,000---Instituto de Credito Territorial (Republic of Colombia): Financing housing for persons of low income of an estimated cost of $29,340,000----. Empresas Municipales de Cucuta (Republic of Colombia): Financing the expansion and improvement of water and sewerage system of the city of Cucuta of an estimated cost of $9,161,000 5, 183 Instituto Nacional de Fomento Municipal (Republic of Colombia): Expansion of potable water and sewerage systems of an estimated cost of $19,312,000----Export-Import Bank loans (as of April 30, 1963): Cementos del Caribe S.A.: Machinery, equipment, and services for expansion of cement capacity and installation of electric powerplant at cement plant.. 8,500 Development loans (as of June 21, 1963): Agricultural credit. INVU slum clearance.. ICE, electric power.. Social progress trust fund loans (May 31, 1963): Instituto Nacional de Vivienda y Urbanismo de Costa Rica, financing construction of houses for low-income families of an estimated cost of $16,000,000______ Export-Import Bank loans (as of Apr. 30, 1963): National Water S. & S. Authority, equipment etc., for water supply.... Fiscal Fiscal year year 1962 1963 3,500 4,500 Peace Corps (as of Apr. 30, 1963): Rural community development, secondary and normal school teachers, cooperatives, community action, rural community action, fishermen and vocational agriculture teachers, nurses, and teachers and teacher-trainers.. 1 Contingency fund. |