trate the change in the vessel owner's 

 profits brought about by the introduction 

 of the 60-Uo lay. In examining the per 

 trip performance of the large trawler oper- 

 ating in 19ii2 and a large travxler operating 

 in 1956, it is obvious that this develop- 

 ment drastically reduced the vessel owner's 

 earnings. In 19h2 the vessel owner real- 

 ized approximately $3,300, after the payment 

 of vessel expenses from gross receipts of 

 $7,500. In 1956, however, the vessel owner 

 realized only $2,950 from sales of $8,700. 

 Thus, while per trip gross sales in 1956 

 were 16 percent above those of 19ii2, the 

 vessel owner's earnings were actually 7 

 percent less than I9I42. On a yearly basis 

 the vessel suffered a $15,800 decrease in 

 earnings, before deductions for vessel ex- 

 pense, despite a $21,000 increase in gross 

 revenues. Furthermore, for a vessel oper- 

 ating in 1956 under the "60-liO" to obtain 

 yearly dollar earnings equal to those of 

 19li2 ($101,500), gross receipts would have 

 to be $298,000 or 28 percent higher than 

 those of 19ij2, and 18 percent higher than 

 the gross receipts of 1956, $255,000. 



the fact that crew expenses in 1956 had 

 increased by more than 100 percent over 

 their 19ii2 level. Although it is true 

 that the net real crew earnings of 1956 

 are perhaps substantially below their net 

 real earnings of 19li2, it is also true that 

 their net dollar earnings did not decrease. 

 In fact, net dollar earnings per trip in 

 1956 were 20 percent above those of 191^2 

 ($3,518 versus $2,930), and the crew's net 

 dollar earnings per year were 12 percent 

 greater than those of 191^2. 



More precisely, per-trip gross re- 

 ceipts in 1956 were $1,250 greater than 

 19ii2, yet crew expenses were approximately 

 $81i0 greater in 1956 and net crew earnings 

 were almost $600 larger. It is obvious 

 then that as crew expenses and net earn- 

 ings were higher by better than $l,liOO, 

 although gross receipts were higher by 

 only $1,250, no part of the higher gross 

 receipts was obtained by the vessel owner, 

 and the vessel owner actually received 

 less in 1956 than he did in I9U2 despite 

 the higher gross receipts of 1956. 



Source: New England Fish Exchange. 



The institution of the 6O-U0 lay has, 

 on the other hand, enabled the crew to 

 avoid any major loss in earnings, de.''pite 



Exhibit D is an attempt to illustrate 

 the effect of the higher trdp expenses and 

 minimum guarantee (broker payments) upon 



67 



