46 DOCUMENTARY HISTORY OF THE FLORIDA CANAL (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 $275,000 (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. 26. Applying the fixed charge percentage 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: TABLm III Speed Annual Hourly cham charge charges (a) Combination freight and psenaer vewls: 14 knots and over-------.---------------.-......................... $320000 S3&53 12 to 14 knots-..---.--.--------................-------------------..... ...........---- 240,000 27.40 (b) Tanke s in the petroleum trade: 12 knots and over ---------.-----.... ............-----...-....... ---280,00 31.96 Under 12 kots-----..--------.... --...........----..-....-.....- 224000 25.67 (c) Gaeeal-aro vesies: Costwi (average 10 knots)-----------------------................... 10000 1. 41 Trans-Atlantle (average 10 knots).-----.---------.---....------------ 104000 11.99 (d) Vesels In ulphur trade: All speeds (avee 10.5 knots)...--.........-.... 198,000 22.60 27. Applying the foregoing hourly fixed charges to the number of hours de- duced 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. 28. Summarizing the estimated benefits above discussed, the results are as follows: (a) Savings in actual operating costs of vessel movement.-------. $5, 615, 700 (b) Savings on fixed charges on vessels---------------.........- 6, 419, 400 Total-------------------------------------........... 12, 035,100 As noted, these figures are for 1929. This was a good year, but tonnage from the Gulf ports has apparently not fallen off by more than 5 or 6 percent. Wages and other operating costs have been decreased somewhat and, therefore, in the interests of conservatism, the foregoing total estimate may be reduced to $10,500,000. 29. Additional benjits.-On the basis of certain information bearing on the problem, it would not be inappropriate to set up other charges now applying to shipping operations, which charges might be reduced in consequence of the shorter turn-around of vessels. This, for example, would permit of a smaller fleet for the same volume of business. A smaller number of vessels would be lying in reserve. There would be a quicker delivery of cargo from shipper to consignee, and hence the interest on capital represented by cargo in transit would be reduced. This is true also of the insurance premiums. No claims are made here for such benefits, as they can not be evaluated with the certainty appropriate to our present purposes or, more precisely speaking, these benefits can scarcely be made the basis of tolls to be levied on vessels transiting the canal. The United States Congress, under the usual method of providing for river and harbor projects, could recognize these factors as collateral benefits. 30. A new traffic.--Studies have been made of various commodities which would develop and move if improved transportation facilities should be pro- vided-cheapening the cost of the market haul. We have in mind an increased movement of cotton at reduced costs; of grain, lumber, and naval stores; also the probable exploitation of low-grade phosphates in northern Florida; fuller's earth and various other minerals. It is very probable that considerable barge movement of freight would develop on the waterway for short-haul purposes, and there certainly would be a large and remunerative pleasure-boat movement. These last statements are predi- cated on the fact that the United States is now engaged in completing the intra- coastal waterways along the Atlantic and Gulf coasts, providing a protected "inside passage" from Long Island Saund to Corpus Christi.