The greater impact of the taking on proprietorships than on corporations can be seen when one examines the seriousness of the earnings decrease for businesses showing a decrease in the year of displacement. First, most of the 39 proprietorships and the 14 corporations that experienced decreased earnings and for which data were available had more than a 25-percent reduction in earnings.

Second, the impact of this percentage decrease was greater upon proprietorships than upon corporations because the proprietorships had smaller earnings before their businesses were disrupted by the taking. The earnings of proprietorships during the year of displacement were very small in most cases. For those proprietorships showing decreases during the year of displacement and for which earnings data were available, 29 of 39 or 72 percent were left with earnings of less than $5,000.

Earnings after displacement, proprietorships

Data on earnings for years before and after displacement were available for 59 proprietorships. For each of these proprietorships the average of earnings received in the 2 or 3 years after displacement was compared with the average of earnings received in the years prior to displacement.

Slightly more than one-half of the 59 proprietorships, or 54 percent, had average earnings after displacement that exceeded their average earnings before displacement. Two-fifths of these proprietors experienced an increase in earnings of more than $3,000 per year. other three-fifths of this group had increases of less than $3,000 per

year.

The

Slightly less than one-half of the 59 proprietorships, or 46 percent, had average earnings after displacement that were less than they had received before displacement. Most of these proprietors had reductions in their earnings of less than $3,000 per year. A few had reductions of $3,000 or more.

An evaluation of the earnings by proprietorships that discontinued shows results similar to that for all proprietorships displaced. Complete data on discontinuance and on earnings after displacement were available for only 24 of the proprietorships that discontinued. Of these, 13, or slightly more than one-half, had an increase in earnings after being displaced and discontinuing. The other 11, or slightly less than one-half, experienced lower earnings after being displaced and discontinuing. Thus, only about one-half of those who discontinued were able to maintain or increase the level of earnings they experienced before displacement.

Most of the proprietorships for which there were insufficient data during the after period, and which were excluded from the preceding table, were small proprietorships, before displacement. Earnings for them before displacement usually were less than $5,000. This group also contained a high proportion of discontinued proprietorships. If complete data on earnings were available for this group, and the group were included in the preceding table, the total number and percentage of proprietorships showing decreased earnings in the after period likely would be larger than shown in the table.

Earnings after displacement, corporations

Corporations that continued after displacement were evaluated first. Data on earnings before and after displacement were available for 24 of such corporations. One-fourth of these corporations showed decreased earnings in the 2 or 3 years after displacement while threefourths showed increased earnings. As the following table shows, most increases and decreases were greater than $3,000, and in most cases, they were substantially greater than that amount.

For corporations that continued operations-Earnings in years after displacement compared to years preceding displacement

Data on earnings of corporations that discontinued business operations were most limited. The information available on several indicated that these corporations experienced decreased earnings in the year of acquisition and a subsequent decline in earnings in excess of $5,000 or complete termination in reported earnings. If these corporations were combined with the corporations which continued business operations after displacement, both the total and percentage of corporations showing decreased earnings would be somewhat larger than in the above table.

Reductions in earnings experienced by proprietorships both during and after displacement

An evaluation of earnings received by proprietorships was made to determine what percentage of proprietors had experienced a reduction in earnings since the preacquisition period, and what percentage had experienced an increase in earnings since the preacquisition period. Complete information on earnings before displacement, during displacement, and after displacement was available for 57 proprietorships. Earnings used in the comparison include those obtained by the proprietor for both business and employment.

Half of the group experienced a reduction in average earnings since the preacquisition period. Half of the group experienced an increase in average earnings since the preacquisition period.

The table below shows that approximately 31 percent experienced decreased earnings both in the year of displacement and in the years following displacement. Approximately 28 percent experienced increased earnings both in the year of displacement and in the years following displacement. The remaining 41 percent experienced a reduction in earnings during displacement followed by an increase in the years after displacement, or conversely, an increase during displacement with a reduction after displacement.

Again, it should be noted that most of the proprietorships for which there were insufficient data on earnings during the after period, and which were excluded from the preceding table, had been small proprietorships before displacement. If complete data were available for these proprietorships, the total number and percentage of proprietorships showing decreased earnings likely would be larger than shown in the preceding table.

Proprietorships showing

Number

Percent

Increased earnings:

Increased earnings during displacement and after displacement... Increased earnings after displacement offset decreased earnings during displacement..

Increased earnings during displacement offset decreased earnings after displacement..

Total...

29

50.0

Decreased earnings:

Decreased earnings during displacement and after displacement... Decreased earnings after displacement offset increased earnings during displacement..

Decreased earnings during displacement offset increased earnings after displacement..

Proprietors who rented the real property they occupied did not fare as well since the preacquisition period as proprietors who owned the real property they occupied. Approximately 54 percent of those who rented the real property they occupied prior to displacement showed a decrease in earnings. By contrast, about 43 percent of those who owned the real property they occupied prior to displacement showed a decrease in earnings.

Most of the small proprietorships for which data on earnings were not adequate rented the real property they occupied. It the data for these were available, the decrease in earnings shown by tenants likely would be more pronounced.

Nearly half of the proprietors who discontinued their operations and slightly more than half of those who relocated showed decreased earnings since the preacquisition period. Data for the two groups are as follows:

Of course, most of the proprietorships for which there were insufficient data on earnings during the after period and which were excluded from the preceding table had been small proprietorships, and a high proportion had discontinued. If complete data on earnings were available for this group and were included in the preceding table, the percentage of discontinued proprietorships showing decreased earnings probably would be larger.

Reduction in earnings experienced by corporations both during and after displacement

As in the case of proprietorships, an evaluation of earnings received by corporations was made to determine what percentage experienced a reduction in earnings since the preacquisition period. Complete information on earnings before displacement, during displacement, and after displacement was available for 24 corporations.

The corporations that continued their operation after displacement fared much better than the group of proprietorships. For the years for which data were available, 79 percent of the corporations showed increased earnings since the preacquisition period, while 21 percent showed decreased earnings.