Interest in the difficult problem of capacity measurement appears to have increased in recent years, probably stemming from the growth in the importance of fixed capital in the postwar economy. A recent review of potential uses of the data, the problems in existing statistics, and proposals for improvement is contained in the Hearings on Measure of Productive Capacity sponsored by the Subcommittee on Economic Statistics of the Joint Economic Committee of Congress in the spring of 1962. A method then being used by the Bureau of the Census for experimental measurement of past peak output was described in the hearings by Raymond T. Bowman, Assistant Director of Statistical Standards, Bureau of the Budget. Following the hearings, the Bureau of the Budget arranged a series of meetings to discuss approaches to the problem to which several government agencies were invited. The Census proposal was further discussed at these meetings, and was later described in a paper entitled, “Approaches to the Statistical Measurement of Capacity,” presented by the author at the September 1963 meetings of the American Statistical Association. The method outlined in the present paper is similar to that formerly described as the “peak attainment” method.