DOCUMENTARY HISTORY OF THE FLORIDA CANAL


 Certain commodities would be placed on the market at reduced prices, and the
indirect benefit to the people would be considerable. For example, the pulp
and paper trade now developing in the Gulf States would be afforded a wider
operating margin in competition with the Canadian pulp and paper trade.
 Extended studies have been made of these various factors, and they are men-
tioned here not because they may be directly set up as the basis of a loan, but to
indicate the wide collateral benefits that would attach to such a loan for the con-
struction of the proposed ship canal.
 Admitting that there is room for difference of opinion as to the methods of
determining, predicting, and evaluating probable developments, the following
table is inserted as of possible interest.

 Estimated efinitly Total
 calculated


 Saving on commerce of the calendar year 1929:
 Saving that could have been effected by the canal on the actual
 water-borne movement that passed through the Straits of
 Florida during the year-omitting any savings on commerce
 between Mexico and Europe (items I (c) and Iu (a), (b), (c),
 exhibit 801)---..---------... -----.--. -------- $3,000,000 $12,927, 500 $15,927,500
 Saving on other commerce existing in 1929, not a part of the
 Gulf water-borne movement, but capable of being diverted
 to movement through the canal with manifest saving-...---- 638,000 9,029,100 9,667,100
 Total---............................--------------- 3,638,000 21,956,600 23, 594, 6
 Effect of the canal saving in reducing the prices of certain staple
 articles that are competitive with Gulf shipments and sold on
 a highly competitive basis, for instance, Canadian paper com-
 peting with Gulf paper.......................-------------- 3, 000000 7,731,000 10,731,000
 Grand total, 192.. .. -------------------........................... 6, 638000 2687,600 36,325,000
 Saving on additional future commerce, 1929-45: By reason of addi-
 tional commerce the saving to be expected in 1945 should be in-
 creased by --------.................------------------------.. 3,014,100 11,324,917 14, 339,017
 Total--..-..-....----...-....... .------------------- 9, 652,100 41,012,517 50,664,617
 Less deductions:
 (a) On account of readjustments in petroleum trade, eliminat-
 ing certain savings on competitive oil...-.....------------ 3,000,000 ------ 3,000,000
 (b) Decline in petroleum traffic between Mexico and Atlantic
 coast ports.--.----...................---------------...-- 231317 -.-----.... 23117
 Total deductions---......... --------------- 3,231,317 ------ 3,231,317
 Grand total, saving in 1945.--..................-----....----------------................------------ 47, 433, 360

 CAPITAL INVESTMENT

 31. The canal will be a lock canalso designed that.there.will be a minimum
 distrubance of natural ground-water conditions. We anticipate but a single
 navigating level across the divide between the tidewater levels on either coast.
 Twin locks will be provided on either side of the main divide.
 Taking figures available to us from various well-authenticated
 sources and adopting liberal additional margins, the cost for
 locks should not exceed ---------------------------------- $22, 000, 000
 Having in mind the character of materials, the generally favorable
 working conditions that obtain in Florida, the economies to be
 effected by the use of modern machines for moving earth and
 checking against the low unit costs now realized in the river and
 harbor work of the U. S. Engineer Department, the estimated
 cost of excavation is placed at not to exceed------------------ 55, 000,000
 For bridges, dams, spillways, reservoirs, and auxiliary works ----- 15, 000,000
 For aids to navigation------------------------------------ 1, 000, 000
 For right-of-way procurement purposes and clearing right-of-way- 2, 750, 000
 For organization, administration, engineering, and incidentals----. 14, 250, 000
 For capital carrying charges during construction- -------------- 9, 625, 000

 Total capital investment, approximately---------------- 120, 000, 000