annually' per vessel are based on the 

 assumptions given above. Column VII, the 

 number of trips per year for the fleet, is 

 derived by dividing the number of days 

 fished annually (colxunn n) by the fleet 

 by the average number of days fished per 

 trip by each vessel (column V). Coluinn IX, 

 the annual nvnnber of trips per vessel, is 

 the result of dividing the number of days 

 it will be absent from port (coluitm VIII) 

 by the length of its trips (column VI). 

 Column X, the number of vessels in oper- 

 ation at the fishing effort postulated, 

 is obtained by dividing the fleet's total 

 annual trips (column VII) by the individ- 

 ual vessel's total trips (column IX). 



Naturally it would be possible to 

 construct infinite variations on this 

 basic table by varying the assun^itions on 

 the number of days fished per trip and 

 the number of days fished annually. It is 

 believed, however, that the assunqjtions 

 cited previously are the closest to re- 

 ality and will serve the general illustra- 

 tive purpose of this section. 



Attention is invited to table III-ll, 

 which shows the number of otter trawlers 

 by size in the Boston haddock fleet. On 

 the average, it has been found that the 

 mediiTO vessels have about kh percent of 

 the capacity of the larger trawlers. Thus, 

 the 36 medium trawlers in Boston in 1957 

 would be equivalent to 16 large trawlers* 

 In terms of standard large otter- trawlers, 

 then, the Boston fleet in 1957 was can- 

 posed of about hh vessels. This figure 

 would be in line with the numbers project- 

 ed in table III-IO for normal effort. If 

 a backward glance is taken, it will be 

 seen that there has been a considerable 

 lessening of excess capacity in the Boston 

 industry. The 19li7 fleet was conposed of 

 the equivalent of 71 large trawlers, an 

 amount I60 percent of "normal" and far in 

 excess of need, 2^/ 



Tables m-12 and 111-13 develop some 

 of the cost implications of the effort- 

 catch relationship in terms of individual 

 vessels and crewman. A constant price of 

 8|^. per pound for haddock at all fishing 



levels is assumed in the calc\iLation8 . 

 Thia is close to the undeflated ex-vessel 

 price of the species in the 19U8-57 decade. 



A constant price is assumed because 

 total fleet landings are relatively stable 

 over a wide range of fishing effort. Frcm 

 75 percent of fishing effort to 200 per- 

 cent of effort, landings vary only 5 per- 

 cent. Hence, even without considering the 

 ceiling put on price by foreign competi- 

 tion, it seems reasonable to assume price 

 stability if total landings remain fairly 

 constant. (At an effort level of 25 per- 

 cent, revenues may in fact be understated, 

 as it is reasonable to assume a higher 

 price to compensate for the somewhat lower 

 landings at this point. ) Also, analyses 

 of landings and prices in the 19ii8-57 

 period reveal that the ex-vessel price re- 

 mained relatively inflexible on a year to 

 year tasia. Ex-vessel prices showed no 

 statistically significant correlation with 

 landings even ^en landings varied sub- 

 stantially. 



Ihe mechanics of table III-12 are as 

 follows: Columns I through V, on the 

 number of vessels and the catch to be ex- 

 pected at various levels of fishing effort 

 are derived from table m-lO. Column VI, 

 the annual gross jrevenue per vessel, is 

 obtained by multiplying the anniial poxmd- 

 age landed by the vessel by 8^i per pound. 



Column VII represents the trip ex- 

 penses incurred by each vessel. Detailed 

 analysis of vessel settlement sheets 

 reveals that trip expenses account for 

 about. 65 , I4 percent of the gross revenue 

 per trip, (coliunn VII), Itip e^ipeoises are 

 the out-of-pocket costs of each voyage. 

 They constitute principally the gross 

 share of the crew (57.8 percent of gross 

 revenues) the bonus to the captain (3«8 

 percent of gross revenues) and certain 

 items of expenae shared Jointly by owner 

 and crew. 



The contribution to overhead figure 

 in column VHI is the sum that remains for 

 the vessel owner after deducting the trip 

 expenses from the gross revenues, Ihe 

 remainder must cover his overhead costs 

 if he is to make a profit. 



85/ In terms of the lower landings level in 19li7, a pre-raesh reg\iLation year, 

 there was 175 percent excess capacity. 



U8 



