is deadweight and vessel's capacity is governed by its lifting capacity not by cubic. Attached is Statement No. 3 showing Grace Line south bound sailings from U.S. Pacific ports for the period June 1958 through May 1959 and total vessel cubic capacity together with amount of cubic capacity utilized for ports other than Canal Zone, the cubic capacity available for Canal Zone and the cubic capacity for Canal Zone cargo. From this statement you will note that for the period referred to there was an unused total from U.S. Pacific ports to the Canal Zone of 4,809,570 cubic feet and only 26% of this available cubic was utilized for cargo to the Canal Zone. The balance of the space was unused. Attached is Statement No. 4 showing Grace Line northbound arrivals at U.S. Pacific ports for the period June 1958 through May 1959 and total cargo deadweight not utilized for northbound cargo together with amount of cargo loaded at Canal Zone. From this statement you will note that for the period referred to there was an unused total in excess of 200,000 tons of deadweight capacity available on these ships from Balboa to the U.S. Pacific ports and Canada and only 566 tons of cargo was obtained; the balance of deadweight was unused. Attached is Statement No. 5 showing Grace Line monthly 2. Berths occupied to ports other than Canal Zone. 5. Percent of utilization of berths available to From this statement you will note that for the period referred to there was available from U.S. Atlantic ports to the Canal Zone a total of 1213 berths and that only 5.7% of these berths were utilized, the balance being unoccupied. Attached is Statement No. 6 showing Grace Line monthly northbound arrivals from Canal Zone at U.S. Atlantic ports for period June 1958 through May 1959 indicating: 1. Total passenger berths available. 2. Berths occupied from ports other than Canal Zone. 3. Number of berths available from Canal Zone. 4. Number of berths actually utilized for passage from Canal Zone. 5. Percent of utilization of berths available from Canal Zone. From this statement you will note that for the period referred to there was a total of 1803 berths available from the Canal to U.S. Atlantic ports and that only 9.9% of these berths were utilized from the Canal Zone, the balance being unoccupied. Attached is Statement No. 7 showing Grace Line monthly 2. Berths occupied to ports other than Canal Zone 4. Number of berths actually utilized for passage 5. Percent of utilization of berths available to From this statement you will note that for the period referred to there was a total of 192 berths available from the U.S. Pacific to the Canal Zone, and of this quantity 26.6% was utilized; the balance of berths were unoccupied. Attached is Statement No. 8 showing Grace Line monthly northbound arrivals from Canal Zone at U.S. Pacific ports for period June 1958 through May 1959 indicating: 1. Total passenger berths available. 2. Berths occupied from ports other than Canal Zone. 4. Number of berths actually utilized for passage 5. Percent of utilization of berths available from Canal Zone. From this statement you will note that for the period referred to, there was available to U.S. Pacific Coast ports from the Canal Zone a total number of 113 berths, of which only 23% were occupied. 2. Future capacity. What plans do you have for increasing size fleet available for service to the Canal Zone: Grace Line recently sent out invitations to bid for the construction of three large combination passenger cargo vessels which are to replace five freighters now providing one of our weekly services between ports in the U.S.Atlantic Coast and Cristobal/Balboa. These three new combination passenger cargo vessels will be placed in service in the first half of 1962 and will provide weekly sailings between U.S. Atlantic ports and Cristobal/Balboa. a. Size and type of ships: Length: Cruising Speed: Deep Draft: 545 feet 20 knots 29 feet b. Additional capacity for cargo; dry, chilled, and freezer: The new vessels will have first-class accommodations for 88 passengers, all rooms will be outside with private baths. The vessels will be completely air-conditioned. Each vessel will have a large outdoor swimming pool and will have full facilities for passengers such as, movies, dancing and other entertainment, etc. These combination passenger cargo vessels will replace freighters which have passenger accommodations for only 12. ger accommodations is 76 per week. d. The net increase in passen Frequency of sailing and transit time to Canal Zone. Weekly sailings will be maintained by these three combination cargo vessels. The transit time from New York to Cristobal will be either five or six days depending upon the exact itinerary. e. Ports served and routes of ships. The vessels will probably sail from New York as the last port of call in the U.S. Atlantic Coast and it is presently planned to call at one port in the Caribbean enroute to Cristobal. (this one port may be Port au Prince or Havana or Kingston or Aruba or Santa Marta or Cartagena). After transit of the Panama Canal vessels will then dock at Balboa and from there proceed to Buenaventura, Colombia and Guayaquil, Ecuador. Homeward from Guayaquil they will call at Buenaventura, Balboa, Cristobal, possibly one other port in the Caribbean area, thence to U. S. Atlantic ports. f. When will the new vessels be placed in service? These three new ships are expected to be placed in service the first half of 1962. 3. Freight space. Would you guarantee that shipments for the Panama Based on normal circumstances and shipments for the Panama Canal Company being booked timely and deliveries to Grace Line Terminals being made as booked, there is no reason why the Grace Line could not guarantee that such shipments would move forward on the next sailing subject to circumstances beyond Grace Line's control. 4. Passenger accommodations: To what extent would you guarantee Grace Line currently has arrangements with several large U.S. Industrial concerns for the handling of their employees traveling on home leave. We have been able to work out traveling schedules with these firms which have proven to be satisfactory for a period of years. We see no reason why the Grace Line cannot work out similar arrangements for the accommodation of Panama Canal Company employees. We are prepared to work out advance reservations, both southbound and northbound, to assist in working out such schedules. You have of course recognized that such commercial arrangements would enable the Panama Canal Company employees to leave from or go back from a wide range of ports in the U.S. Atlantic and U.S. Gulf Coast instead of funneling their steamer transportation service exclusively from the port of New York. This should be more attractive to the employees and to the Panama Canal Company. 5. Freight rates. Would you be interested in handling Panama Grace Line has had in the past and has today a contract with the Military Sea Transport Service for the carriage of cargo between U.S. Atlantic ports and ports in the Canal Zone at MSTS rates and conditions. Since we are today handling MSTS cargo under an MSTS contract we confirm that we are agreeable to extending similar terms and conditions to the Panama Canal Company. This is again a Conference matter but we see no reason why it cannot be affirmatively agreed to so as to have this traffic facility available to the Panama Canal Company from all major U.S. Atlantic ports and major U.S. Gulf ports, again a decided advantage and economy to the Panama Canal Company as compared to their present arrangements through the Panama Line. 6. Profits and federal income taxes, freight. In fiscal year 1959 the Panama Line carried cargo (north and southbound) as follows: a. If Grace Line secured 50 percent of this traffic, how much additional federal income tax would you have paid? If Grace Line had secured 50% of the above traffic we estimate that the Grace Line would have paid additional federal income tax amounting to $313,868. b. If Grace Line secured 25 percent of this traffic, how much additional federal income tax would you have paid? If Grace Line had secured 25% of the above traffic, we estimate that the Grace Line would have paid additional federal income tax amounting to $156,934. |