U.S. Business: PROFITS: Better than Ever

BUSINESSMEN have been worrying that higher taxes, tight money and the rising cost of labor would combine to pinch their profits this year. That feeling was strengthened when a drop in automakers' earnings stalled the six-year rise in total industrial profits during the second quarter. But last week early reports for the third quarter indicated that corporate income has rebounded to a new postwar peak of close to $50 billion a year after taxes.

Sharp profit increases spread across such industries as electric manufacturing, data processing, papermaking, drugs and rubber. Record third-quarter earnings...

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