whether th« savings would represent a real operational advantage to a 

 vessel owner. 



The difference in shipping cost of the finished product (canned tuna) 

 to some markets from Atlantic _ports compared with Pacific eoast ports is 

 substantial. Carload railroad rates from Pascagoula, Mississippi, to 

 New Y©rk, New York^ for example, are $1.10 per 100 pounds for a 36,000 

 pound car minimum compared with rates from Los Angeles, California to 

 New York^ New York of $2.52 per 100 pounds for a [iO,000 poimd car mini- 

 mian, .'11.86 for a 60,000 pound car minimum, and $1.81 for a 70,000 pound 

 car minimum. 



HJERTO RICO 



There is a large resevoir of unskilled labor in Puerto Rico, and 

 normally there are several applicants for each job vacancy. Skilled 

 labor is generally not available and must be trained or brought in from 

 the United States. The labor costs are low, varying somewhat in differ- 

 ent parts of the Island. In the San Juan area in 1952 unskilled labor 

 received from fifty to fifty-five cents an hour, but in other parts of 

 the Island unskilled labor could be hired for as little as thirty-five 

 cents an« hour. Opinion expressed by several employer's interviewed in 

 Puerto Rico in late 1952 was that the quality of unskilled labor was fair 

 to good but that the labor turnover rate was high. One employer cited, 

 as an example, that of approximately 300 production line employees laid 

 off for a one=week holiday period, only 200 returned to work. 



No federal income tax is collected on income earned in Puerto Rico 

 by United States mainland corporations which derive at least 80 per cent 

 of their income from sources within Puerto Rico and 50 per cent or more 

 from the active conduct of a trade or business. No federal income tax 

 is collected on income earned in Puerto Rico by Puerto Rican corpora- 

 tions and partnerships or by individuals residing in Puerto Rico for a 

 whole year. Piarthermore, complete freedom from Insular income, property, 

 and business taxes is available in Puerto Rico until June 30, 1959, and 

 partial freedom for gn additional three years, on certain types of manu- 

 facturing. The processing of canned foods is a business considered 

 eligible for tax exerption. However, the Government of Puerto Rico has 

 established a policy of denying such tax exemptions or other special 

 benefits of its industrial program to any individual or firm proposing to 

 close a factory on the United States mainland in order to transfer it to 

 Puerto Rico, 



239 



