DOCUMU3NTARY FUSTORY OF T"E FPORDA CAwAL


 41. Fixed charges on the foregoing elases may be summarized as follows:
 TaaLU II

 Combl-





 &moreoera le rte. t .
 m~-eM s ri s e
 Mwi tradW T*-1w


 Ajmoatrpttn ar r6pl.67 3t'...-..--..- ........ I
 Oarwhsd md bu iK...... -...-....-................... 3 2 2
 TOtrhal 16.d 3.r.a6dmf7t5a.n..................... 2

 1 Amcrdifg to ndato d y ac athlti, tbh orra.vYe eOet on petroleum taerL wR rer
 A bse ars t S ahlr D rlntslu eoe of L.7 prnat pr yew. Aoording to thse atbortlie thi is
 nimorr, alow t.

 For certain vessels additional charges seem to be warranted, as follows:
 (1) An additional 7 percent on vessels in the sulphur trade, due to the excep-
 tional corrosive action of the cargo.
 (ii) Additional interest, taxes, overhead, and amortization on refrigerating
 equipment for combination fruit and passenger steamers, amounting to about
 22 percent on a valuation of $27,000 (equipment only). The percentage is high
 due to the fact that the insulation and refrigerating equipment have a. much
shorter life than does the ordinary ship hull and machinery, so that amortization
costs are considerable.
 42. Applying the fixed-charge percentages in the last preceding table to the
ship valuations in the first table, the annual and hourly costs result as set forth
in the following:
 TAnBL III

 Annual Hourly
 Speed chra c

 (a) Combination freight and peamser vesels:
 14 kno sa over-...--..............--- .......................---. ... -----0 13S.33
 12 to 14 knots......------------.....-- ....-- ....---...---- -..--...-- 000 27.40
 (6) Tankl In th petrolem trade:
 S---.... --............-- ..-- ..--....--...--....--.... --------- 00 3L 9
 Undr 12knot---------------- ----------------------------- 2K0 26
(0) Gem"nujlee7 ml.
 n ... .. -----........... ......---..........--..--...-.. s o -41
 Tr.r-At atle (aver 10 knots). .-.-.. ----- --...~~---.....-. 1046000 11. 9
(d) Veke In lpbur trade All spees (vore 10. knots)------- ----1 0 2Oo 260


 43. Applying the foregoing hourly fixed barges to the number of hours deduced
in the tables of time savings for 1929 the resulting saving in fixed charges over
and above the savings in actual vessel operating costs amount to $6,419,419.
 A summary tabular analysis is contained in division D of this report (exhibit
603).
 44. Reserve fleet avings.-The savings in fixed charges discussed in the preced-
ing paragrphs have been determined on the basis of an active fleet, all vessels
operating al the time at full efficiency. It is obvious, however, that to permit
of a periodic and necessary overhauling vessels and to meet the peak-load require-
ments there must be a certain number of replacement or reserve vessels. The
longer the run or "turn around" between ports, the greater must be the number
of vessels continuously in service for a given volume of tonnage and the greater
must be the number of vessels in reserve. To be conservative, we have assumed
a reserve fleet of only 10 percent. On the basis of the savings in operating costs
($5,615,700) and the savings in fixed charges ($6,419,400) heretofore deduced to a
total of over $12,000,000, this 10 percent for reserves would increase the total by
$1,200,000 per annum; but this is out back to $920,000 per annum to allow for the
lessened operating expense while vessels are in an inactive status.