4,865, 522 9, 159, 200
9, 951, 608 16, 509, 163|
14, 817, 130 25, 668, 363

4. 13 20, 106, 117 10, 254, 119 1, 195, 343, 900 2. 56 25, 525,050 13, 017, 776 1, 750, 454, 000

126, 582 170, 309 136.65

*Price of stock sold in 1939 by Alleghany was published, and rate per share of 20.4 cents used in calculating 1945 sale price is based thereon.

Companies shown are those with control purchasable in market included in statement furnished by the Interstate Commerce Commission to the Senate Committee on Interstate Commerce entitled: "Class I Railroads Reorganized Since 1933 or Still in Process of

3.08 45, 631, 167 23, 271, 895 2, 945, 797, 900

Reorganization Under Plans Which Hold Bonds or Stock Valueless, or Partly Valueless.
(In response to Group I (a), (b), (c), and (d) of Questions Addressed to I. C. C.)"
Roads with control not purchaseable in market, included in statement furnished by
ICC:

Roads with reorganization still pending:

Sources: ICC values: Rate of Return on Value of Property of all Operating Steam Railway Companies, 1940 (ICC Bureau of Statistics, Statement No. 4142). Number of em. ployees: Moody's Railroads, 1941. Voting stocks: From plans of reorganization. Stock sales and market prices: Commercial and Financial Chronicle and Moody's Railroads.

11. Seaboard Air Line.

Preferred Stock.

Common Stock.

51 PERCENT OF ROCK ISLAND STOCK BOUGHT FOR $2,463,000 Mr. WYER. 51 percent of Rock Island stock bought for $2,463,000. This schedule further shows the actual average prices at which these securities were sold and the actual dollar cost at which control of these bankrupt railroads was acquired during the period of their bankruptcy, if the proposed amendments become law. It will be noted that the results are not very different from those based on the low prices shown in the preceding schedule. On the average, control of $126,582 of rate-making value was obtained for each $1,000 spent and control of the production of the employees of these carriers was acquired at an average cost of $136.65 per head. For example, the Rock Island's voting stock sold one and a half times over between the date of its bankruptcy in 1933 and January 1, 1942, at an average cost of $3.95 per share. Sales since that date are not available but they are undoubtedly substantial. An investment of only $2,463,000 would have acquired 51 percent of the stock, and for every $1,000 of such investment the purchaser would have acquired control of $151,600 of property based on rate-making values. Control cost per employee on this basis was $122.06 per head. Other roads show similar results.

EVEN IN REORGANIZED ROADS COST OF STOCK CONTROL IN MARKET IS NOT GREAT

Even the plans of reorganization already made effective have not prevented control from being available in the public market places at low figures.1 Schedule 9 shows for such roads the cost of acquiring 51 percent of their stock in the open market today. Even here control of $17,672 of rate-making value can, on the average, be obtained for $1,000, and control of the production of employees can be obtained for $1,000, and control of the production of employees can be obtained on the average for $981.18 each. Certainly there is no evidence here that the Commission arbitrarily forced down the capitalizations of these reorganized companies and unjustifiably decreed the forfeiture of junior securities in which large amounts of value still remained. If these charges were true the stocks of the reorganized companies, which represent the entire equity of the value of their properties, would reflect the value of all the securities wiped out as well as a substantial part of the value of the securities which were recognized in the reorganization plan. Yet there is no indication here that these alleged fabulous values exist. If these old securities which have been wiped out had been allowed to remain alive, they would unquestionably be selling today at a very small fraction of the price of the securities recognized, and control of these reorganized railroads would be purchasable in the market today at very small fractions of the price at which it is actually purchasable.

(Schedule 9 is as follows:)

1 See note on schedule 9 showing roads whose stocks are presently represented by voting trust certificates.