Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-11
FAILURES IN 8 MONTHS
VERY LARGE INCREASE In
AMOUNT OF LIABILITIES.

NEW YORK. October 11.-Failures in
the United States during the third quar-
ter Of 1907. says Duns Review, show a
very large increase in amount of liabili-
ties as compared with the corresponding
months Of any year for a decade, al
though the number Of defaults was not
unusually large. The financial pressure
was felt keenly by a number Of concerns
engaged In manufacture on a large scale.
The growth Of the country In recent
years has called for a wide extension Of
facilities and number of firms financing
operations with temporary loans found il
most difficult to renew them when the
season OF stress appeared in the money
market. In the case OF many OF these
ness in sight. and some have made good
progress toward solvency under the man
agement Of receivers who reduced oper-
atoms to more conservative limits.
Liabilities show the most striking In
crease over last years figures for the
third quarter In the manufacturing class.
$50. 009. 800 comparing with 50. 42O.45 The
difference Is emphasized by the fact that
not only are this years liabilities excep-
tionaly large, but those of 1905 We're
much lower than In any recent year.
While in many cases the increase was
not OF Importance, the comparison with
last years defaulted Indebtedness is un-
favorable in every one OF the manufac-
pilation. with the single exception Of the
combined drug and paint Industries.
These were not separated prior to this
year. but the total of both is just below
the figures Of 1905
A Striking Increase.
The most striking increase was about
So. 600. 600 in the class embracing lumber.
carpenters. etc. in which the failures OF
several large speculative building opera
lions are included. In machinery and tools
there was large increase. chiefly due to
a single failure of a steel company. and in
the unfinished branch Of this industry
the clothing class likewise provided an
increase of over 81 100000.
As to number of failures in, the general
manufacturing division there was an in
crease of about 20 per cent, CSC failures
comparing with 5l4 in thea same three
months last year. Almost half Of this
difference occurred in the building class.
and increases of about twenty each were
reported in machinery and milling.
Much less striking was the difference in
the trading section. liabilities of $l3. 49,
al comparing with $40. 400 300. and in
no case was the amount of loss anything
like the increase in the manufacturing
class Liabilities rose about 81. 900. 900
miscellaneous class. but other unfavor-
able comparisons were not significant and
in five of the fourteen classes liabilities
were smaller than last year.
The Large and Small.
Separation of the few failures for over
S1OO 600 each makes an interesting COM
parison for the third quarter: Seventy
four concerns. or about 5 per cent of the
total, supplying over $50, 100000 liabilities.
or about 66 per cent Of the aggregate. LA
blities of the remaining 2.4OO failures
amounted to only S163S6.d a1. an average
of Sc Sn2. or but little more than the
average of $6277 that remains after
similar elimination of the large failures
for the corresponding three months of
1906. In fact. this years average for the
great mass of ordinary insolvencies is
very close to the average of all the aver
ages since returns were first compiled in
this form in 1894. In that year the av-
erage was Sc. $40. or practically the same
as in 1907.
Twenty trading failures, or a little over
per cent of the total number supplied
30 per cent of the total defaulted Indebted
ness, leaving only S. 729, GAS Liabilities for
the remaining 81. 1873 failures. an average
of S5.023, which was slightly larger than
the $3.50 reported last year. but is small
er than the average in eight of the eleven
years prior to 1905.