DOCUMENTARY HISTORY OF THE FLORIDA CANAL


 General MABanM. I have got it, $148,000,000.
 Senator VANDENBEam. $148,621,000, without charging any interest
during construction.
 General MARTAw. That is correct.
 The CHAIxMN. That is for the sea-level canal, is it?
 Senator VANDENBER No; that is a lock canal of 80 feet. With
charging interest during the period of construction, your estimate
was $166,000,000, and if it went to 85 feet on the lock canal the
estimate was $195,642,000. These estimates are based, are they not,
on the price index of June 1934 i
 General MasRHAM. Well, I would say perhaps it is roughly that.
During that special board's consideration there were considerations
running over, I should think, something like 18 months, trying to
make up our minds as to what was going to be the fluctuation of
labor and all the other costs. The estimates are based upon the best
judgment that could be applied under those circumstances.
 Senator VANDENBER. Have you had a chance to review the files
 of my correspondence with General Pillsbury?
 General MARBKHM. I have not.
 Senator VAmDENBEr. My information comes from General Pills-
 bury. He states these estimates are based on the price index of
 June 1934.
 General MAhKHAM. That was about the time of the final considera-
 tion. I suppose it is a fair statement.
 Senator VANDENBEG. That is the low period, is it not, in the
 price index
 General MARwgAx. I should think that is right; yes.
 Senator VANDEBNBEG. How much has the cost factor increased
 now over 1934, in June, speaking generally?
 General MaKHa x. I think it depends very greatly upon what is
 the class of performance. We have been surprised to find that our
 excavation costs have not largely increased. We have been sur-
 prised to find in many cases the estimates submitted are substantially
 lower than our estimates. We have found, so far as I can make it
 out, that on constructional matters, meaning the big power installa-
 tions, the locks, dams, and so forth, the manner of performance
 under the relief regulations has possibly increased costs on that class
 of thing by about 26 percent.
 Senator VANDENBEBG. Twenty-six percent
 General MawmAxw. That is what we figure from our books
 Senator VANDENBER. I have great respect for the estimates of
 your board, General. Your figures and mine appear to be conclusive
 on that subject. In the light of your statements, would you say
 that this construction project, which will take 6 years to conclude, as
 I understand it, can now be safely contemplated, on the basis of the
 June 1984 figures
 General MARaKAx. I would say that, depending upon how the
 project proceeds depending upon the resources that become available,
 if they are consistent with the scale of the problem, I think we can
 come out close to the estimates, but it will take a particular sequence.
 I have tried to illustrate that by saying that the excavation of the
 canal cannot be done within the estimate, or within the presumption
 of estimate, except under the plan contemplated in preparing the


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