Mr. GARVEY. This statement also gives the established freight rates from each of the producing districts, No. 1-11, inclusive, to a common point which has been selected as a basing point for the purpose of making a study of the tonnages moving from the various producing districts into the market areas established by the Coal Commission.

In order to ascertain the cost to my company, or any other companies, of towing coal out of the Big Sandy River, we asked some experienced rivermen in whom we have great confidence to investigate and make an estimate of the cost of towing coal out of the Big Sandy from both Pikeville and Williamson, to Catlettsburg, if and when the river is canalized as planned. These gentlemen are thoroughly familiar with the Big Sandy and in addition to their own investigation they made a thorough study of the United States district engineers' report.

Their estimate is that the towing cost would be 1.93 mills per tonmile and the cost from Pikeville to Catlettsburg is estimated at 22.23 cents per ton and from Williamson at 16.31 cents per ton. This is bare cost and does not include profit.

The conclusion reached by these people is that the district engineers' estimate of a towing cost of 4 mills per ton-mile is altogether too conservative and should be very substantially reduced under competent management.

It is believed by my company that the district engineers' estimate is entirely too conservative and should be very substantially reduced in working out the economic justification of the Big Sandy project.

I would like to submit for the record a detailed estimate of cost which is entitled "Analysis of Water Transportation Costs for the Movement of Coal From Points on the Levisa Fork and Tug Fork to the Mouth of Big Sandy River."

Also attached to this analysis is a statement from Capt. Thomas Vaughan, who has spent 40 years on the Big Sandy.

Mr. Hugh PETERSON of Georgia. Without objection the paper will be included in the record.

(The documents are as follows:)

ANALYSIS OF WATER TRANSPORTATION COSTS FOR THE MOVEMENT OF COAL FROM POINTS ON THE LEVISA FORK AND TUG FORK TO THE MOUTH OF BIG SANDY RIVER

In selecting equipment for movement of coal on the Big Sandy River, I would recommend using a 500-horsepower twin-screw, Diesel-powered towboat approximately 80 by 22 by 61⁄2 feet, having an approximate 4-foot draft. Such a boat can at the present time be built for $90,000. However, for the purpose of this study, I have used in my calculations, as shown in the attached cost study, $100,000.

As I understand the proposed locks on Big Sandy to be 80 by 500 feet, I would use four all-welded coal barges, 195 by 35 by 11 feet, having a capacity of approximately 2,300 tons each. Such barges could be built today for approximately $20,000 each. For the purpose of this study, I have indicated an investment of $240,000 for barges, which would allow you four barges en route, four at the originating point, and four at destination, which, I understand, is the usual method of operation in the coal trade.

For the purpose of this study, I figure that this tow, consisting of a 500-horsepower towboat and four jumbo coal barges, would make an average of 31⁄2 miles in both directions. This, again, is conservative as, in all probability, the tow would make 4 miles downstream and 5 to 6 miles upstream.

Taking Pikeville as a basing point and using 31⁄2 miles per hour, allowing 4 hours for picking up loads at originating point, and 4 hours for tying off loads. at destination (this again is a very conservative estimate), this equipment should make the round trip in 74 hours.

In my study of costs I have used 340 days per year as a conservative operating schedule. In most marine operation of Diesel equipment, I believe 350 to 360 days per year actual operation is not considered excessive. Based on 340 days per year, a tow as above would make 110.27 trips and handle a tonnage based on 1,250 tons per barge of 55,135 tons.

You will note from the attached sheet that I figured the total cost of operation per year of $106,648.83, which comes out to 1.93 mills per ton-mile on this movement.

Using the 1.93 mills per ton-mile as a basis of your costs, you therefore could move coal from Pikeville to the mouth of Big Sandy for 22.33 cents per ton and from Williamson, W. Va., to the mouth of Big Sandy, for 16.31 cents per ton-mile.

Towboat, Diesel, 500-horsepower, twin-screw, 80 by 22 by 61⁄2, $100,000:

Operating labor (10 men) (based on allowing 10 days off per

12 barges, 195 by 35 by 11, capacity 1,250 tons each-at $20,000—

$240,000:

Cost per year

$6, 333.33

500.00 2,375.00 480.00

36, 000. 00 1,200.00 5, 400.00 6, 000. 00 6, 200.00 1,000. 00 1,000. 00 5, 000. 00 3,000.00

71, 488. 33

12, 000, 00

3, 600.00 1,200.00

100.00 960.00 3,600.00 3, 000. 00 1, 000, 00 7,200.00 2,500.00

35, 160, 00

106, 648. 33

TRANSCRIPT OF Statement MADE BY CAPT. THOMAS VAUGHAN, CATLETTSBURG, KY.,

IN SUPPORT OF BIG SANDY RIVER CHANNEL IMPROVEMENT

Members of the Board of Engineers for Rivers and Harbors, Corps of Engineers, as a matter of introduction, my name is Thomas Vaughan; home, Cattlettsburg, Ky.; vocation, licensed captain and master pilot; license applicable upon the navigable portion of Big Sandy River and between Ashland, Ky., and Huntington, W. Va., on the Ohio River.

I have had charge of and handled boats within the river area upon which my papers permitted for 48 years. During that period of time, I was in charge of boat operation upon the Big Sandy River when, during high-water periods, the only time such boat movement was possible. The operation of boats in pool water and on the proposed improved channel would not present the same navigation hazards, and would not present the same current resistance that we had to contend with under open-river navigation during high-water periods. The