Schedule U-VIII (continued)

4. Additional checking, Terminals Division.

Estimated rate for checking 80 tons per man per day.

30,000 tons 80 400 man days per year.

400 days at $9 per day = $3,600 per year.

Schedule U-IX

Interest on Disposal Value of Ships

The income on disposal value was based on the book value at the beginning

of fiscal year 1960 of the vessels and the Panama Canal Company's interest

Schedule U-X

Additional Income Taxes Paid by Privately Owned Lines

1. Freight. Assume Panama Line tonnage will go via American flag lines

Out-of-pocket costs (based on Grace Line operating expenses):

a. Sea passengers, accommodated on existing unused capacity of

regularly scheduled passenger ships (Exhibit N).

1,007 passengers (north and southbound total) average

=

rate $179 $180,000

Cost of handling passengers, 25 percent of revenue = $45,000

Net profit increment = $135,000

Portion allocated for federal income taxes,

52 percent

Includes 12.5 percent reduction for Panama Canal Co.

70,000