Ratio of net income to net assets of leading corporations, 1947 to 1957 1 Oil and gas group excluded beginning with the year 1950. NOTE.-Net income is taken as reported, after depreciation, interest, taxes, and other charges and reserves. but before dividends. Net assets include book value of outstanding preferred and common stock and surplus account at beginning of each year. Source: The First National City Bank of New York. Mr. LOOMIS. I think, Mr. Chairman, that completes my statement. The CHAIRMAN. We are being interrupted again. I guess there is hardly any use to continue. Mr. Williams, may I inquire of you about your statement? How much of a statement do you have? Mr. R. ARTHUR WILLIAMS (chairman, Railway Progress Institute). Sir, I will be very happy to come in tomorrow. The CHAIRMAN. You can be here tomorrow? Mr. WILLIAMS. I can adjust my time to your convenience. The CHAIRMAN. Apparently it is useless to try to continue the hearing this afternoon as long as that situation exists on the floor of the House. In view of that fact, the committee will adjourn until 10 o'clock in the morning. I suppose, since Mr. Williams can be here in the morning, the appropriate thing to do is to proceed with your testimony, Mr. Loomis, until the members have had an opportunity to ask you such questions as they desire. With that understanding, the committee will adjourn. (Whereupon, at 3:40 p. m., the committee adjourned, to reconvene at 10 p. m., Thursday, May 22, 1958.) RAILROAD PROBLEMS THURSDAY, MAY 22, 1958 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D. C. The subcommittee met at 10 a. m., pursuant to recess, in room 1334, House Office Building, Hon. Kenneth A. Roberts presiding. Mr. ROBERTS. The subcommittee will please come to order. Mr. Loomis, I believe you had finished your statement yesterday. STATEMENT OF DANIEL P. LOOMIS, PRESIDENT, ASSOCIATION OF AMERICAN RAILROADS Resumed Mr. LOOMIS. I might add this, Mr. Chairman: Congressman Younger referred to the hearings before the Committee on Government Operations on the amortization program. I find that on July 11, 1955, Dr. Flemming, who was then Director of the Office of Defense Mobilization, testified as to the freightcar supply. It appears on page 5 that Dr. Flemming testified that he had been advised by Mr. Faricy, who was then president of the Association of American Railroads, that the railroads were placing orders for 44,000 freight cars. Dr. Flemming testified that that would still leave the program about 60,000 cars short, assuming that these 44,000 cars were ordered. Now, to look at what actually happened in the last 6 months of 1955, the railroads actually placed orders for 132,473 cars, so that they exceeded the goal of 104,000 that Dr. Flemming had referred to in his testimony before the Committee on Government Operations. Mr. ROBERTS. I believe in yesterday's Wall Street Journal there were several news articles on the statements by railroads. One referred to Nickel Plate and said carloadings were picking up. It referred to the Southern, that Southern was weathering the recession well, and a statement by the Wabash that business was looking up. Now, what I would like to know is this: Do you consider these statements are representative of all railroads, or are they more or less optimistic comments to stockholders, whereas the railroad situation continues critical? Mr. LOOMIS. Well, I could not say they were typical of the industry. |