54 DOCUMENTARY HISTORY OF THE FLORIDA CANAL

 ExHIBrr 602. SAVINGS IN FIXBD CHARGEs
 THE BASIS OF CALCULATION FORn IXED CHARGES
 An analysis of actual vessel movements to and from the Gulf ports during the
 calendar year 1929 shows that 85 percent of the dead-weight tonnage and 81 per-
 cent of the voyages (i. e., one way only) were comprised in that group operating
 at speeds from 10 to 12 knots. The average speed of the vessels in this group
 was about 10.5 knots only. The average size of all the vessels listed was about
 9,000 dead-weight tons, with tankers as a group averaging somewhat higher.
 An investigation of the costs of constructing various types of vessels of varying
 sizes, speeds, and classes shows that the class of vessel (whether a passenger boat,
 a tanker, or a general-cargo ship) exercises primary influence in determining the
 price range, and that within these classes the speed is normally a much greater
 factor than the size in determining the gross cost or value, due to the great cost
 of the machinery necessary to the development of high vessel speed.
 In obtaining the bases for calculating the aggregate savings in fixed charges to
 be effected by the use of the proposed ship canal, the 1929 ship tonnage has
 accordingly been segregated by vessel classes and the classes have then been
 further subdivided into speed groups that correspond to the actual performance
 of the vessels engaged in the service. Conservative average valuations of the
 vessels are then arrived at as follows:

 TABLE I
 (a) Combination freight and passenger vessels:
 14 knots and over- --_---- ------------------------- $2,000,000
 12 to 14 knots----------------------------------- 1,500,000
 (b) Tankers in petroleum trade:
 12 knots and over..---------------------------------- 1,500,000
 Under 12 knots------------------------------------------ 1,200,000
 (c) General-cargo vessels (all speeds):
 Coastwise trade--------- -----.----------------------- 900,000
 European trade--------- ..-------------.---------------- 700,000
 The foregoing valuations are based on construction costs in American yards,
 except in the case of general-cargo vessels engaged in the Gulf-Europe trade,
 where the number of foreign-built vessels greatly predominates. In this case a
 lower valuation has been used due to the lower construction cost of foreign-built
 ships.
 The fixed charges dependent on the foregoing ship values are summarized below
 for the three classes of vessels listed:

 TABLE II

 Combina-
 TankeM, eneal- ton freight
 Charges peron mulo and pe-
 arges trade ships sanger v
 (percent) (percent) els (per-
 mot)
Intret on the Invetment......--------------... -----.--------------.........6 6 6
Amortization or repemnt----------------------------- &6.67 3 3
Ta.Mmim aroeu----.--------------- -.. 4 4 4
Oereaand hbore administration ...-................-....- 2 _2
 Total...........................---------------------. 1L 7 15, 1