242 DOCUMENTARY HISTORY OF THE FLORIDA CANAL

 Mr. BucxxAN. He was reporting on the cost of the first 5 years.
Over the period of 50 years the average is $601,000. There is an
increased cost of maintenance during the first year of opening of any
waterway because of the tendency to silt the first years, until the
banks assume a more or less permanent slope. After that, sweeping
out of the channel becomes a routine operation.
 Senator VADENBEm Do I understand these calculations are
General Markham's or are they yours?
 Mr. BUKxxMA. These computations are mine. The figures are
the board of review's figures I have used no figures which the
board of review has not produced. The arrangement is mine and
the method is the method of the Board for Rivers and Harbors.
 Senator VANDENBERO. Where is the report of the board of review
that has all this information in it
 Mr. BUCKMAN. Here it is right here [indicating].
 Senator VAwmENEo. I have never been able to find it.
 Mr. BUCKxAx. For instance, I hand you here these annexes.
They will give you the detailed operating costs and maintenance costs.
 Senator VADENBEmm. Does this also include these figures you are
talking about on navigation advantages?
 Mr. BucxAw. To what do you refer, Senator?
 Senator VANDENBEam. Where did you get your eight million, five,
 and so forth
 Mr. BucxMAN. The $8200,000 is deduced directly from, your
 $160,000,000 benefit. You simply take your $160,000,000 cost and
 add to it the interest during construction at 4 percent, and figure that,
 as it says, on a 4-percent basis, and then add your upkeep to it, and
 it gives you $8,200,000. That is simply a formula used by the board.
 Senator VANDENBER. That is not the figure I had in mind.
 Where do you get your other figure on the value of benefits?
 Mr. BucKxY That is the figure to which I am referring. In
 other words, the statement of the board is that the canal is economi-
 cally justified at $160,000,000.
 Senator VANDENEaG. Oh, I see what you do.
 Mr. BUCKExN. The only way it can possibly reach that figure is
 by the set formula used by them.
 Senator VANDENEG. I see.
 Mr. BUCEMAN. Which is on the basis of $8,200,000.
 Senator VANDENBERG. In other words, if the board said it was
 economically justifiable at $500,000,000,000, I believe that the set
 formula they would arrive at 20 or 80 million dollars benefits
 Mr. BucKMAN. Exactly. That is the only way the Army engineers
 ever report a project, and from the cost you have here and from a
 statement of the ultimate justifiable cost to commerce you get the
 benefits to commerce, and those two must agree.
 Senator VANDENBER. I am very sorry to disagree with you that
 that is their usual method, and I disagree with them if they say it is
 their usual agreement.
 Mr. BUCxMAN. We will have to let it go without agreement then,
 Senator.
 Senator VANDENmmG. Yes. My argument is with them, not with
 you.
 Mr. BUCKMAN. The net annual benefits are $2,928,000. This
 amount, at 3 percent, will amortize the entire cost of the project in