DOCUMENTARY HISTORY OF THE FLORIDA CANAL


 Mr. BUCKMAN. The $142,700,000 covered the construction cost
of a 30-foot channel with a 2-foot overdepth in soft material and a
3-foot overdepth in rock.
 The CHAI~MAN. All right.
 Mr. BUCKMAN. Subsequent to this report, the President directed
the board of review to make an examination of the project with a
view to determining whether it could be constructed as a self-liqui-
dating project upon the basis of tolls which might be collected from
shippmg.
 Under date of September 15, 1934, the board reported adversely
on this aspect of the project.
 Senator VANDENBEmG. Excuse me, Mr. Buckman; what did you
say the board said about 4 percent?
 Mr. BUOKMAN. On a 4-percent basis-I will pick that up here.
 The board further found that, based upon the economic survey of
the special board of survey of the Corps of Engineers, such a sea-
level canal would be economically justified, on a 4-percent basis, up
to a cost of $160,000,000.
 Senator VANDENBERG. Yes.
 Mr. BUCKMAN. Under date of September 15, 1934, the board
 reported adversely on the self-liquidation aspect of the project.
 On January 29 1935, acting upon a memorandum of the chief
 engineer of the Public Works Administration, citing the recom-
 mendation for a sea-level canal made by the board of review and the
 estimated cost of $142,700,000, the Administrator of Public Works
 disapproved the application for a loan to the Ship Canal Authority
 of the State of Florida for a lock canal. This disapproval was with-
 out reference to the economic justification of the project as deter-
 mined by the criteria ordinarily applied to river and harbor projects,
 and without reference to the recommendation of the board of review
 and its findings that a 30-foot sea-level canal is economically justified
 up to a cost of $160,000,000, that recommendation remaining as the
 final and approving official finding with reference to the canal as a
 river and harbor project.
 I quote from a letter under date of February 12, 1936, from
 Senator Fletcher to Lt. Col. Brehon Somervell, member and recorder
 of the board of review, and Colonel Somervell's reply under date of
 February 12, 1936.
 The following is the letter from Senator Fletcher to Colonel
 Somervell, recorder of the board of review [reading]:
 MY DEAR COLONw, SOMBYaLL: I have before me a copy of the report of the
 board of review for the Florida Canal under date of June 28, 1934. My under-
 standing of this report is that the board recommended to the President a sea-
 level canal of 30-foot depth, and found that the cost of such a canal will be
 approximately $143,000,000, exclusive of land and interest during construction,
 and that the board found further that the project Is justified by the criteria
 ordinarily applied to river and harbor projects at a cost of $160,000,000 or more.
 Senator VANDENBEG. Excuse me. That is justified on a tolls
 basis ?
 Senator FLErCHEB. No.
 Mr. BUCKXAN. No; justified from general benefits.
 Senator VANDENBERG. But, when you are referring to the report of
 the board of review to the President, that is constantly discussing a
 toll canal, is it not


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