Schedule U-VI Cost of Services to Panama Line From 1. Supply Division. a. 1 June 1958-31 May 1959 Commissary and service center issues, $47, 961 (Exhibit C). Superintendent of Retail Store Branch estimates annual 2. Terminals Division. a. Cleaning and painting, $49, 816 (Exhibit C). Superintendent of Terminals Division estimates unrecovered overhead of $15, 400 if work was not done on Panama Line ships. 3. Navigation Division. Charges to Panama Line were as follows Tug revenue would be replaced by commercial ships now Schedule U-VI (continued) 4. Industrial Division. Charges to Panama Line were as follows Approximately 63 percent of the charge represents direct labor 5. Isthmian steamship office. Transportation section receives credit of $18,000 annually for handling Panama Line passenger bookings in the Canal Zone (Exhibit C). The force (3 people) could only be reduced by one person. Net saving, $5,000. 6. Procurement office, New York. The portion allocated to Panama Line operations is $12,000. The Procurement Division cannot reduce its personnel if the workload is eliminated. Of a total of 23, 000 requisitions processed annually, only 120-150 are for the Panama Line. Schedule U-VII Panama Railroad, Loss of Revenue 1. In the 12-month period 1 June 1958 to 31 May 1959, the Panama 2. Panama Railroad reported tonnages in first 10 months of fiscal year 1959, discharged by Panama Line and hauled by Panama Railroad. The Manager of the Railroad Division estimated loss of revenue as follows: a. Railroad will continue to haul first 3 items. b. Panama City cargo would divide 50-50 between Grace Line and United Fruit Co. C. Cargo would divide between Panama Railroad and truck lines in same ratio as at present. Loss of 80 percent of Grace Line tonnage, 60 percent of United Fruit. d. Total loss in revenue to truck lines for 10 months $52,000 or $62, 300 a year. Schedule U-VIL (continued) 3. Additional losses estimated by Manager of Railroad Division, as follows: a. If one ship in four discharged at Balboa, additional loss of 25 per cent of remaining cargo would amount to $35,000 a year. b. Loss of northbound Panama City commercial and Canal Zone cargo if ships berth at Balboa, $20,000 a year. 4. Total revenue lost $117, 000 a year. Cost avoided, $7,000 a year. Schedule U-VIII Additional Costs The Panama Canal Company would incur additional costs per year if the Panama Line was abandoned. 1. Claims branch. Two additional employees required to handle increased workload. Present simplified procedure would not be applied to commercial 2. Accounting office, New York. One additional employee required to 3. Traffic office. A traffic department would be established to route shipments and for liaison with commercial lines. Estimated cost as follows: |