2610 AWARD OF THE FISHERY COMMISSION. 



By Sir Alexander Gait : 



Q. The man vpho charters the vessel would lose! A. The one who 



chartered the vessel and fitted her for fishing loses $418, and the one 



who lets him have the vessel makes $251. 

 Q. Besides interest on his vessel ? A. Yes. Besides interest on the 



valuation of his vessel. 



By Mr. Davies : 



Q. Allowing for depreciation ? A. Ye?. 



Q. Ten per cent. ? I did't hear you read the allowance for deprecia- 

 tion. A. "Depreciation on vessels 4 months, 107 vessels, at $275 

 each $29,425." 



Q. What rate is that? A. I didn't reckon it any more than what, in 

 my judgment, the depreciation would equakon one of our fishing ves- 

 sels. 



By Mr.. Dana : 



Q. From your experience, what do you take to be the depreciation 

 in a new vessel the first five years? Have you any means of knowing 

 that ? Have you inquired into that ? A. Well, the depreciation the 

 first year on a new vessel is more than any other time. 



Q. What do you suppose to be the depreciation on an average of a 

 well-built vessel, built at Gloucester or Essex, in the fishing business, 

 when well taken care of? I don't mean incurring any extraordinary 

 expenses, or suffering from extraordinary negligence, but with good 

 ordinary care taken of her ? A. The first year she would depreciate 

 $1,200. * That is, supposing her to cost $8,000. 



By Sir Alexander Gait : 



Q. Why should she depreciate more the first year than the second ? 

 A. Because everything is new, and if at the end of a year you want to 

 sell a new vessel, she will not bring so much. All these articles have to 

 be renewed at the end of two years at the most sails, rigging, and 

 everything of that kind. 



Q. Then it would seem she should depreciate more the second year. 



By Mr. Dana : 



Q. A little of that depreciation must be fancy. It is just like the 

 ordinary case where second-hand goods sell for much less than brand 

 new goods, although, practically, they may in some cases be almost as 

 good as new ? A. Yes. 



Q. Do you think a merchant, having to make up a profit and loss 

 account and wishing to know his exact position at the end of a year on 

 that trip, would allow that amount? A. I think he would strike off 

 one thousand two hundred dollars. 



Q. That is, in making up an account with himself, in which case he has 

 no motive for misrepresenting the value. It is based on the theory that 

 if he had to sell her under fair average circumstances he would lose that 

 amount? A. Yes. 



Q. Now, what do you think the depreciation would be at the end of 

 five years ? A. I think a vessel built for $8,000 at the end of five years 

 would not be worth more than $6,000, kept, of course, in good running 

 order. 



By Sir Alexander Gait : 

 Q. That would only be $800 depreciation for the last four years. 



