2642 AWARD OF THE FISHERY COMMISSION. 



Q There is a great difference between that and this account; include 

 these items in making; up the sum total, and then tell us what percent- 

 age you charge for depreciation and wear and tear? A. Those charges 

 form part of the depreciation account. 



Q. Do you really think that expenditure for ballast and a swivel-gun 

 form part of the depreciation account ? Do you honestly think so, 

 major? A. As to the swivel-gun, you can throw that out ; it is an ex- 

 ception to the general rule, because there are not many vessels which 

 carry such guns; but all those expenses, added to the depreciation of 

 the hull of the vessel, go to make up that depreciation account. 



Q. In making up this account you have included these items as part 

 of it ? A. Yes. 



Q. Even taking that method of making up and charging depreciation, 

 let me ask you to look at the return before you, showing as net earnings 

 for each schooner $251 ? A. Yes. 



Q. That would be for four and one-half months, half of the season ? 

 A. Yes. 



Q. That would be 8500 for the season : this is for half of the season, 

 and of course it would be the same for the other half of the season, if 

 they were then employed ? A. Yes. 



Q. Multiply that by 107, the number of vessels mentioned in the 

 sum? A. Yes. 



Q. "What is the result? A. Fifty-three thousand seven hundred and 

 fourteen dollars. 



Q. That is not a bad profit for a man to make ? A. No. 



Q. What percentage would that give on the capital employed ? A. 

 You don't look above and see how the charterer stands. 



Q. 1 will come to that directly. What percentage would $53,714 form 

 on the capital invested ; $535,000 ? A. It would be a little short of 10 

 per cent. 



Q. This is supposing that the owner of these 107 vessels would have 

 ruu them without a shadow of risk, paying insurance upon them and 

 receiving interest at the rate of 17 per cent 7 per cent, on his capital 

 being already included paying taxes out of his profits, and having an 

 allowance of 14^ per cent, depreciation. If that is so, will you kindly 

 explain what you meant by telling Mr. Dana that a person who invested 

 his money in vessels and who did not bring skilled labor to beat upon 

 his operations could not make money ? A. I did so for the very reason 

 that George Steele's vessels are the most successful vessel^in Gloucester. 



Q. But this is only a supposed state of things. What dld*you mean 

 by making that answer to Mr. Dana ? A. That is a well-known fact. 



Q. Unfortunately the facts and your evidence do not agree, I am 

 afraid. You have proved here pretty conclusively that a man who 

 invests $535,000 on these vessels, employed in business, should make i7i 

 per cent, on his money after paying taxes, insurance, and keeping him- 

 self perfectly safe. How do you reconcile that result with the state- 

 ment you made to Mr. Dana, that a person who invests his money in 

 this business would be sure to lose ? A. You do not take into account 

 the loss, but you take it as being all profit. 



Q. The owner would suffer no loss, though the charterer would. It 

 seems singular, does it not ? You say this is where a man charters a 

 vessel? A. Yes. 



Q. In the first place, is George Steele a charterer of vessels ? A. Xo. 



Q. Then this statement, which assumes to relate to George Steele's 

 business, as his name is mentioned as the charterer of the vessel, does 

 not represent an existing state of facts, but is merely a theory which 



