Runout, yes, that is why they broke.  Was the other five percent failures due to perpendicular grain orientation alone or runout with proper grain orientation?  My guess is on the latter.  I really don't see a reason to discard so many handles, since runout can be avoided entirely on straight handles no matter what the orientation, and largely avoided on curved handles with a range of grain orientations.  I have been researching the topic a little.  One here, 
https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.fpl.fs.fed.us/documnts/fplgtr/fplgtr190/chapter_05.pdf&ved=0CDgQFjAEahUKEwjJ6_CWgIzIAhXDcD4KHRCLANI&usg=AFQjCNEM_yMig3JOCcKhmQXvmDKwQ5-SHQ&sig2=f9spUMgrGof8Y3jygLxQYg suggests that while most woods display orthotropic characteristics, toughness is remarkably similar for hickory (as well as other woods) in either grain orientation.  I think toughness would be the overwhelming consideration for a tool like an axe.
Please don't be angry, as I have been hoping to get your view on this since the internet revealed the magic of grain orientation, andI  traced the source "scripture" to your manual, which I find quite useful..
Some woods actually split radially.  Black locust comes to mind, because I see a lot of it.  I suspect hickory might be similar.