The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-06-03
BUSINESS GAIN
IN MAY FAILURES
DUN's REPORTS SHOW CONNER
CIAL INsoLvENCIEs DECREASE.
Comparison Shows Liabilities of This
Year Below Those of Corresponding
Period Last Year, and the Number
of Failures Is Much Smaller.

of Failures Is Much Smaller.
New York, June 3.-Reporting on the
business failures for May, r. G. Dun &
Co. say:
Commercial insolvencies in May were
$50 in number and $S,907 ,301 in amount
of defaulted indebtedness the cor
responding month last year there were
1913. This year 8 defaults were divided
into the three principal classes, as fol
lows: Manufacturing, 200 failures for
$4,059,426; trading, 63l insolvencies,
with Liabilities. Of ,$4,276,016; other
commercial, 20 for $571,S59. In May.
fsre there WsGs 20 IN 4radc sns
pensions, involving $5,2i4, 4ss, and IS
other defaults for $l,o93,615: This
comparison shows not only a decrease
in liabilities from last years total,
which has been the case in every other
month of 1905, but the number Of fail
ures is much smaller. Of banks and
other iduciary suspensions, six for
$2,2l7 900 compare with eight failures
year.
Table by Month.
In the following table liabilities of
commercial failures are given by months
for the last three years:
January 1872 1881 s12 asss
1895
May s,so7,sSH s,siS 1893 i2s14,sSs
It is particularly gratifying to find
bankruptcies fewer and involving less
money than in May, 1904, because that
was much the best month up to that
time last year. Moreover, April was the
only previous month this year that
million dollars in aggregate liabilities.
1t is evident from these returns that
the disturbance to business from tardy
spring weather had no serious effect dur
ing May, altho the results could hardly
have been expected SO promptly, and
the trade reports indicated that COM
merclal payments were increasingly
prompt. Bad weather prevented best
results from being attained, but it is
probable that the delay will be made up
later, at least in part, and any damage
to crops will not be reflected in bank
ruptcies for some time to come. The
fall of $500 in the average price of the
sixty most active railway shares
| brought heavy losses in some specu-
lative channels, but it is hardly prob
able that the public has been sufficient
| ~ involved of late to have any material
effect on trade or industry. Elimination
of several weak spots has strengthened
the general situation, particularly as
there was no far-reaching effect. There
was also little difficulty resulting from
the violent manipulation Of agricultural
staples, altho export trade was restrict
| ed.
| Millions Lost Thru Few.
Separation Of the failures for 100000
each from the smaller defaults shows
that eighteen commercial insolvencies
provided $3,S7l,025, or over two-ffths
of the liabilities Of the entire $50 fail
ures, and the average for each of the
remaining disasters was only $6,7S7,
against an average of $6,O84 for the
small failures last year. In trading de-
faults, seven supplied third Of the ag-
| gregate loss, leaving an average of
1859 for the remaining 624 suspen-
sions, which is less than the proportion
for May in nine of the preceding eleven
years. The most striking exhibit in this
Connection was made by manufacturing
defaults, nine large failures supplying
/ $2,039,9 of liabilities, which IS more
than half the aggregate in that class,
the total liabilities for the remaining
200 failures being only $2,O19,45O; an
average Of $10,097, against $10,5O9 last
/ year, and 81 1895 two years ago.
Examination of the defaults by
branches Of business discloses the fact
that out Of fourteen manufacturing oc-
equations, eight reported smaller liabil-
being. decrease Of about 100000 In
machinery and tools. OF the six classes
in which liabilities were heavier than
last year, printing showed an increase
Of almost 100000, but in no case was
the difference significant. In both years
the losses were very light in iron and
steel, textile and footwear manufactur-
4 ing. Numerically, the alterations in
comparison with 1904 were unimportant
miscellaneous being naturally the larg-
est class, with clothing second, and no
other division reporting half as many
failures.
Z Trading Occupations.
4 Much moro cratic were the changes
in trading occupations, altho there were
the same number of alterations, siz
4 branches recording heavier liabilities
than last year, while eight were smaller
The only important increase was in gen
eral stores, where losses about doubled
equivalent to difference of over hall
a million in liabilities, but one large con
Germ supplied the bulk Of the increase
In jewelry there was an increase OF
about 100000, chiefly due to two de
faults of unusual size. On the other
hand, there was a decrease Of $4,000 oC
in dry goods, largely accounted for by
the suspension Of a single concern II
:. this city last year. Much of the splen
did decrease in number occurred in the
! grocery and meat class, where insolven
cies were forty-fve less than last yeal
and fewer than in the corresponding
|, month of any recent year, despite thu
,, larger number Of concerns now engaged
in business.
-Liabi1ities-
= Manufacturer 1905. 1904.
j IRON fonndries etc., $500 1925 $40, re-
: Woolens, carpets, etc.. e5,S00 500. ~