UTILIZATION OF THE FISH WASTE OF THE PACIFIC OCEAN. 65 



tons. This, it is assumed, could be harvested and unloaded at 50 

 cents per ton. Such an amount of material probably would require 

 at least two cutters and five barges of 100 tons capacity each; and 

 to tow these to the factory dock, two tugs would be necessary. 



During the season when cannery waste is being collected, the labor 

 required would be on wages, whether actually employed or not. 

 Under such circumstances the labor cost need not be considered, but 

 only the actual expense of operating the tugs and cutters. After the 

 close of the cannery season, however, the cost of labor would have to 

 be borne by the kelp. Any estimate of this cost would be difficult 

 and perhaps misleading, but it scarcely would be imder $50 per 

 day. About one-half of this estimated cost of labor would be 

 included in the cost of harvesting, and the balance in the cost of dry- 

 ing and sacking. The drying, it is estimated, would cost $1 per dry 

 ton. To sack the product $2 per dry ton is a fair estimate, as a sack 

 would hold over 100 pounds ; the bags would cost something less than 

 10 cents each, including string. 



The principal expenses of operation may be itemized as follows : 



Harvesting, 500 tons, at 50 cents $250. 00 



Drying, 50 tons (dry), at $1 50.00 



Bagging, 50 tons, at $2 100.00 



Overhead charges, selling, and depreciation, 50 tons, at $1- 50. 00 



Total 450. 00 



Freight to eastern centers, at $6 300. 00 



750.00 



The proceeds from the sale of the product may be estimated as 



follows : 



On basis of retail sales, 50 tons, at. $22.94 $1, 147.00 



On basis of wholesale sales, 50 tons, at $16.45 822. 50 



An estimate of daily profits may be made as follows : 



Retail basis: 



Daily proceeds $1, 147. 00 



Daily expenditures 750. 00 



Daily profits 397.00 



Profits for 30 days' operation 11, 910. 00 



Wholesale basis: 



Daily proceeds 822. 50 



Daily expenditures 750.00 



Daily profits 72. 50 



Profit for 30 days' operation 2,175.00 



While very great accuracy can not be claimed for these estimates, 

 as they are based on experience with materials other than kelp, it is 



