of lightweight equipment, then 15-year life for the next series, and for later built types it now prescribes rates based on a life of 22 years. Presumably there will be further improvement in car construction with the result that obsolescence and maintenance cost will be the controlling factors as to the useful life of cars now in operation.

QUESTION 17

On the basis of the above when do you anticipate that the last heavyweight passenger equipment will be replaced?

Answer

In view of the above statements we do not believe that it can be predicted when the last of the heavyweight passenger equipment will be replaced, probably not for many years.

QUESTION 18

Also on the basis of the above, when do you anticipate that the last passenger car built before 1918 will be retired?

Answer

As of this date the Pullman Co. owns and has in operation 2,111 cars built prior to 1918, in the years 1910 to 1917, inclusive, as compared with 19,175 railroadowned passenger cars over 25 years old out of a total ownership of railroadowned passenger cars of 38,050. Approximately 31 percent of Pullman cars now operating are over 25 years old (most of them in the economy "tourist" service, sold at about half the standard service space rates, made possible by use of these cars previously fully depreciated out of standard service revenue) as compared with about 50 percent of railroad-owned passenger train cars. Many of the Pullman cars built prior to 1918 had been sidetracked prior to the war and would have been retired had it not been for prospective emergency needs. They have served a very useful purpose in troop service during the war and it is most fortunate that they were available.

It is expected that most if not all of these now fully depreciated cars will be retired shortly after the abnormal present demand for Pullman cars for both troop and civilian transportation is over. The exact time which the last of these cars is retired will depend upon the post-war demand for Pullman service and the rapidity of construction of new equipment.

X

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON MILITARY AFFAIRS
UNITED STATES SENATE

SEVENTY-EIGHTH CONGRESS
SECOND SESSION

PURSUANT TO

S. Res. 107

A RESOLUTION AUTHORIZING A STUDY OF THE
POSSIBILITIES OF BETTER MOBILIZING
THE NATIONAL RESOURCES OF
THE UNITED STATES

PART 16

AUGUST 29 AND SEPTEMBER 7, 8, 12, AND 13, 1944

CARTEL' PRACTICES AND NATIONAL SECURITY

Printed for the use of the Committee on Military Affairs

84949

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1944