DOCUMENTARY HISTORY OF THE FLORIDA CANAL


 The last of the nine relied upon is the Kellogg Steamship Corpora-
tion, 17 Battery Place, New York, dated January 8. It is a brief
letter, signed by R. A. Murphy, treasurer, and concludes:
 Frankly, we do not consider the expenditure economically warranted.
 Now, General Markham, I have been before your Board many
a time on rivers and harbors projects, many of which probably had
no economic justification, although I was trying to make you think
the did.
 Senator FLETCHER. The St. Lawrence Canal.
 Senator VANDENBERO. Well, we had a definitive report, and a
conclusive one from the Department on that subject. It has been
my observation you had to put up a pretty good case to run the
gauntlet of your institution, and as the result you have a pretty well
protected waterway construction department, protected against need-
less, I was going to say, exploitation, but that might be invidious-
that is not what I mean, but you were trying to save the situation.
 I will ask you if you ever passed a waterway project on evidence
 of that kind as being economically warranted?
 General MARKHAM. Of course, I cannot possibly answer that kind
 of a question.
 Senator VANDENBERG. Let me put it this way: Suppose I were to
 come to you in project X and my nine chief witnesses, to justify the
 economics of it, testified as I read to you, would you vote yes or no I
 General MARKHAM. Well, I think the answer is perfectly obvious;
 I would vote "no."
 Senator VANDENBERG. I think you would, too.
 General MARKHaM. The only thing I am worried about, I do not
 believe you know the economics, whether the folks would use a toll-
 free canal or a toll canal. I have realized from the beginning that
 you could not put a sufficient amount of commerce through that
 canal by charging tolls. There is quite a difference between a toll-
 free canal and a toll canal.
 Senator VANDENBERG. In each instance I indicated whether they
 were discussing tolls or not.
 Senator FLErHEa. Is it not a fact that in considering this question
 of economic justification you do not rely on the letters from ship
 owners, you rely upon the principles of economics and transportation ?
 General MARKHAM. A combination of the two.
 Senator VANDENBERG. You have to have some transportation before
 it can be economical, do you not?
 General MARKHAM. Oh, yes. What the Senator meant was that
 we do not simply depend upon the theories expressed orally to indi-
 vidually make up our own minds.
 Senator FLExvHEB. There was a survey made of this. You know
 the Department of Commerce spent some $10,000 on it.
 The CHAiRMAN. Was there such a survey made
 General MARKHAM. There was a survey by the Department of
 Commerce and an independent survey of our own.
 Senator VANDENBERG. What was the net result?
 General MARKHAx. I do not know. I do not think you ought to
 be considering that report one way or the other until it goes right
 through the usual channels, has a hearing before the Board of Engi-
 neers.


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