280 DOCUMENTARY HISTORY OF THE FLORIDA CANAL

 lost, but 400 people were Imperiled there for 8 days, and the ship itself was
 in danger.
 Senator TownrseA. Senator, would a passenger ship like that go through the
 canal?
 Senator Flmaim. Yes; oh, yes; any ship with a 30-foot draft. Most of
 this distance covered by the canal is water. You begin at the Atlantic with
 the mouth of the St. Johns River, and we now have 30 feet up the St. Johns
 for a distance of 28 miles to Jacksonville, and continues on up the St. Johns
 River to the Ocklawachaw, and then over to the Wtthlacoochee River. There
 is a cut across there where there must be some excavating; 75 percent of it
 is waterway, I think, now.
 But I will not argue that point
 The question here is, is there authorization for this canal? And I claim that
 the President had the authority and did exercise the authority and proceeded
 with the work.
 Senator CAmr. Mr. Chairman, could I ask General Pilsbury to answer my
 question, which I asked him some time ago?
 Senator VANDcmNae. I want to thank you for permitting me to appear and
 be heard, Mr. Chairman.
 Senator CoPaub A We have enjoyed your statement
 Senator CAmr. I asked General Pillsbury if the board had made a report
 showing an economic justification for the building of the canal.
 General Pmumnas Well, in the original report, they concluded with the
 sentence which may be construed as indicating the economic justification.
 They found that the cost of the canal would be $147,000,000-159,0000,000, in-
 cluding interest during construction-and [reading]: "If it be assumed that the
 economic study made by the special board of Army engineers for a lock canal is
 sound, and considering the lower maintenance and operating cost of the sea-level
 canal, the cost of the canal which would be justified at 4 percent would be:
 Sea-level canal, 30-foot depth, $100,000,000."
 Whereas, the cost of the 30-foot sea-level canal as they estimated it, includ-
 ing interest during construction, was $150,943,000.
 Senator CAaYr. What is the estimated income of the canal? Do they give
 any estimates?
 General MABKHAM. There Is no question of income. It is merely a question
 of the construction of the canal. No tolls are to be charged.
 Senator Cair. I know; but, General, if you are going to build a canal, you
 have to figure that enough people will use it to pay enough tolls.
 General MaBHAM. This Is to be a free canal
 Senator CAT. A free canal?
 Senator FlrinCHE A free canal. The benefits to commerce were estimated
 at $7,500,000 per annum.
 General PIUmsuCa. In a supplemental report made on its construction to
 the President we find-if you should like, I can read this whole report into
 the record. The language is not very specific, but it ends up by saying:
 "The canal would earn operating and maintenance expenses, and theoretically
 the cost of construction, and could be repaid without interest in 80 years.
 However, a guess for such an extended.period is of doubtful value. Without
 repaying the cost of construction, revenues derived from tolls at 8 cents per
 net registered ton would pay operating and maintenance expenses and an
 average of about 1.3 per annum on the first cost."
 Senator FUBrcum. What report is that, General?
 General Ph.Lesar. That is a supplemental report of the board of review.
 Senator FLErncHz. That was asked for by the President in his consider action
 in connection with the possibility of it being a self-liquidating project from
 tolls.
 General Pauzars That is right.
 Senator FLUzrHEB That is not the original report made on the economic
question?
 General Paiusvr. No, sir.
 Senator FLxregua This is a supplementary report on that question, about it
being a self-liquidating project but it is not pertinent here because the canal
is being treated as a rivers and harbors project, and the revenue it might yield
is not mentioned.
 Senator CA=aY. Has the Board of Engineers ever made a report on the canal?
 General PLrmsmaT. They have not.
 General MAXBAM. They have not.