240 



If the vessel owner has to pay for it, it can represent a significant 

 percentage <>f the boat's share. 



You see, in our industry we operate on like a joint-venture basis: 

 GrOS8 revenue, less agreed trip expenses, and the balance divided by 

 the crew and the vessel owner. Then the individual crews divide up 

 the crew's share among themselves. 



Mr. Leggett. How many tons of fish did the average big boat take 

 last year? 



Mr. Felando. I would have to find out, to give you that. 



Mr. Leggett. What is your ballpark figure? 



Mr. Felando. I think a very successful vessel of 1,100 or 1,200 

 would have to come up with 4,000 tons and, as I said before, 3,000 

 is a break-even. 



Mr. Leggett. How much do they get a ton? 



Mr. Royal. Not enough. 



Mr. Felando. If it is all yellowfin, the present price is $665 a 

 ton. Do you want to go into the itemization of trip expense? I will 

 do that for you. 



Right now we are talking about a fuel expense of around 40 cents 

 a gallon. A vessel that size needs, I would think — Joe, correct me — 

 at least 200,000 gallons — no, 250,000. He just corrected me. 



You are consuming 4,000 to 5,000 gallons a day, and we are not 

 even talking about lube oil, which is a little higher. That is $2,000 a 

 day just for fuel. 



Mr. Leggett. What do you anticipate the cost of an observer on a 

 full-time basis? 



Mr. Felando. I really do not know. We would have to take a look 

 at it. If he is going to be paid on a daily basis 



Mr. Leggett. Would he get more than $1,000 a month? 



Mr. Felando. Is he going to be on a monthly basis ? Is he going to 

 get a share like a crew member? Because, I guess, we are going to 

 have to kick off a crew member to put him on, I guess. 



Mr. Royal. Is he going to join a union? 



Mr. Leggett. Well, assuming if you paid him $15,000 a year, that 

 would be $15,000 as part of a $2.7 million gross. 



Mr. Felando. Would you also estimate what the net share to the 

 crew 7 and the boat would be when you figure out the rest ? . 



Mr. Leggett. Well, it depends on who 



Mr. Felando. I have one vessel member who is no longer a mem- 

 ber because his total fish catch last year, as I recall it, on a vessel that 

 has the capacity of 1,400 tons, Mr. Chairman, was about 800 tons. 



Mr. Leggett. OK. 



Mr. Alverson. You have social costs, too, along with the salary 

 and a few other odds and ends. 



Mr. Royal. The government of Peru just tripled their license cost. 



Mr. Leggett. I know. They want something like 60,000 or 80.000. 



Mr. Royal. You know, when you start adding all of this together, 

 you know, just one example — now that I have got my mouth in 

 gear — the health and welfare fund jumped from $78 a head per 

 family to $120. You know, where are we going to get the scratch to 

 take care of all of these problems? 



It is not going to be taken care of elsewhere. These doctors are not 

 going to take care of you for free. 



