glades on the southerly and westerly shores of Lake Okeechobee present unequaled advantages for the growing of sugarcane and the productoin of sugar, molasses, and certain by-products, including fiber (building) board and insulating materials. The Dahlberg interests are organized as the Southern Sugar Co., the Celotex Co., and the South Coast Co. With them are certain affiliated interests concerned in the growing of sugarcane. 60. The companies are all well financed, well organized, and have had much experience in their respective lines. The South Coast Co. owns and operates extensive sugar plantations and factories in the State of Louisiana. The mills of the Celotex Co. are located in that State. The Southern Sugar Co. developments are, however, located generally adjacent to the shores of Lake Okeechobee, in the Everglades of Florida. Its Florida headquarters are in the city of Clewiston. 61. The following figures bearing on the Southern Sugar Co.'s project are from a report made by the American Appraisal Co. in 1929. The appraised fair value of the property as of August 1, 1929, was $11,932,204. Since then the sugar mill at Clewiston has been enlarged at an estimated cost of $2,500,000, and the present reproduction cost of the project very closely approximates $12,972,900. 62. The project contemplates a step-by-step (progressive unit) development, which by June 30, 1936, will result in a property consisting of the following principal items of fixed assets: 155,088 gross acres of land fully cleared and improved with water control, roads, ditches, etc. 135,000 net acres of sugarcane. 7 sugar mills with a combined daily grinding capacity of 34,000 tons of 54 groups of miscellaneous buildings. 486 No. 30 caterpillar tractors. 324 two-ton caterpillar tractors. 84 light cultivating tractors. 2,700 Athey cane wagons. 14 topping ditchers. 10 outfits of miscellaneous planting implements. 63. It is estimated by the American Appraisal Co. that the Everglades invest ment of the Southern Sugar Co. by that time will total approximately $71,792,000. 64. The operations for the year 1935–36 (when the current development program will be completed) will involve the grinding of over 4,000,000 tons of cane at the rate of 34,000 tons per day through the grinding season, and the production of not less than 450,000 tons of raw sugar and a large tonnage of molasses and other by-products. 65. "Celotex" is the trade name of an artificial board made from the bagasse (crushed cane stalks). It is resistant to temperature changes, moisture and sound. It enjoys a world-wide market and the demand is apparently unlimited. In six years' time the Louisiana production of celotex has grown to over 480,000,000 square feet annually. It is estimated that, operating at full capacity, the sugar mills to be erected in the Florida Everglades will furnish sufficient bagasse to keep a celotex plant in operation the year round, producing approximately 1,200,000 square feet of board per day, or about 450,000 tons per annum. 66. Transportation facilities.-These sugar cane industries are located on the south and east shores of Lake Okeechobee and within a traffic haul radius of about 50 miles for the units most distant from St. Lucie Inlet. Reasonably direct connection with a port at that point can be had by highway and by St. Lucie Drainage Canal, which is the largest of all the Everglades drainage canals created by the State. Statistics collected by the United States Engineer Depart ment will show that these canals have all sustained a considerable commerce at times, and their traffic capacity can and doubtless will be increased in connection with plans now under consideration for flood control and drainage. 67. Direct railway connections between Clewiston, Canal Point, and the port at St. Lucie Inlet do not exist at present, but rail service can be had by using the tracks of the Florida East Coast and Seaboard Air Line systems. The tracks of the last named system cross the St. Lucie Drainage Canal at Indiantown and a spur from that point to the terminal presents no difficulties of grading or con-struction, and the line distance is approximately 20 miles. The possibilities of an ocean terminal at this point have long been apparent to the officials of the Seaboard Air Line system, who made investigations of the subject in 1914-15 shortly after Congress had made its initial appropriation for the improvement of the inlet. Supplementary investigations have been made at intervals during the past 15 years. 68. Tonnage and freight costs. The following information, items (a), (b), and (c), bearing on tonnage and freight costs is based on a letter originally furnished on October 30, 1928, by the Southern Sugar Co. and on supplementary statements: (a) Outbound tonnage Probable output of the Southern Sugar Co. for manufacturing units in the Lake Okeechobee district Raw sugar, blackstrap molasses, and other sugar products, from 450,000 to 750,000 tons annually. Fiber products, including celotex, 450,000 tons or more annually, depending upon the seasonal growth of the cane. Total, from 900,000 to 1,250,000 tons annually. (b) Railway freight rates Existing railway rates on raw sugar, black-strap molasses, and celotex from Clewiston, Fla., to northern destinations, stated in cents per 100 pounds NOTE. With regard to the rate on raw sugar of 35 cents to Savannah, Ga., quoted above, the carriers have offered to reduce this to 30 cents. Doubtless negotiations would result in a somewhat reduced rate on blackstrap molasses to Savannah and other points. On this commodity a rate of approximately 60 cents by rail to New York, Philadelphia, and Baltimore can be secured and about 35 cents to Savannah, Ga. The figures quoted above are the existing rates as they are to-day. It is unlikely that much of a reduction could be secured in the fiber board rates by rail. It is impossible to actually state the probable ocean ports to which delivery might be made, or the quantity to each port, but undoubtedly shipments will be made on all of these products to all of the North Atlantic coast ports as well as Savannah and New Orleans. "(c) Freight costs. Applying the rate to Savannah on the total output of 1,000,000 tons of sugar and molasses products of $7 per ton would make a freight cost of something like $7,000,000 and on the fiber products by applying the rate of 50 cents per hundred pounds, or $10 a ton, a freight cost of $5,000,000, or a total of $12,000,000 per annum.' 69. Assuming that all of the output were consigned to New York City by rail at the existing rates, the annual freight cost would be the astonishing figure of some $22,000,000 on the sugar and molasses and $7,900,000 on the fiber board. 70. While some information is at hand on the existing water rates, it is believed that with the establishment of regular service from the St. Lucie Inlet or any other East Florida port, the steamer lines should make some very low rates for the water haul to Savannah, New Orleans, and North Atlantic coast ports. The steamer lines operating from the north coast of Cuba, for example, name a water rate of 12 cents per hundred pounds from north Cuban ports to Savannah and 14 and 15 cents from northern Cuban ports to New York City. The water rate from south Florida ports should be as low as, if not lower than, those figures; that is, upon the quantity of tonnage that will be offered by the Southern Sugar Co. alone. 71. Freight savings by water routes.-Sugar, molasses, and celotex are well adapted to water transportation. If Baltimore, which is approximately midway of the Atlantic coast, be selected as a fairly representative port of destination and the rates be accepted as a fair average of all the rates, the computations as to potential freight savings to accrue from water transport may be derived as indicated hereinafter. New York and Philadelphia, as the sites of large sugar refineries and principal transshipping points, would be even more logical than Baltimore as basing points. It is assumed that the cost of loading barges at the mills, or unloading at destination, is equal to that of loading in railway cars at the mills or unloading at destination, and therefore these figures may be omitted in comparing costs. However, stevedoring charges at the port will be entailed in transferring from canal barges to ships' hold and for this purpose the New Orleans schedules are used. The rates from Cuban ports to United States ports are used for the coastwise movement, and for rail movement 60 cents in lieu of $1.07 per hundredweight will be used. The results then are as follows: (a) Sugar and molasses, Clewiston to Baltimore: (i) From Clewiston to St. Lucie Inlet port by canal (50 miles), at Stevedoring-- Per ton $0. 50 .60 2. 40 3. 50 12. 00 8.50 (ii) For molasses the stevedoring charge is 75 cents per ton, and To be conservative, the annual output will be assumed at the minimum named in the letter above cited, viz, 500,000 tons. Since the sugar refineries are all located at seaports, the entire tonnage might well be moved by water, but it will be assumed that only 60 per cent, or 300,000 tons, so move. Then applying the differential, $8.35 per ton, to the quantity named, the potential savings per annum will be $2,505,000. NOTE. Stevedoring charges are usually included in the freight tariff, but are included in the present estimate as a "factor of safety." (iii) Clewiston to Savannah.-Or, otherwise, if the Savannah refinery, though not so advantageously located as other refineries, be used as a basing point, with rail rates from Clewiston at 30 cents per hundredweight, with coastwise rates at 12 cents and stevedoring included as before, the potential savings via St. Lucie Inlet port will still be $2.50 per ton, and the potential savings will be per annum $750,000. (b) Fiber board.-Assuming a fiber board output of 500,000 tons, certainly 40 per cent can move advantageously by water to various seaports on both sides of the Atlantic. Baltimore will again be used as a representative destination. Stevedoring on New Orleans schedules of $1 per short ton is a safe assumption. The present coastwise rate from Miami to Baltimore of 54 cents per hundredweight will be used also. The total tariff then becomes as follows: Clewiston to Baltimore: Canal haul, 50 miles at 1 cent per ton-mile_ Coastwise at 54 cents per hundredweight. Per ton $0.50 1. 00 10. 80 12.30 Total water tariff_ The rail rate is 74 cents per hundredweight, equivalent to.... 14. 80 2.50 The differential in favor of water is.. Applying this to 40 per cent of the output results in annual potential savings on fiber board of $500,000. The total potential savings on the outbound freights connected with the sugar and fiber board industries thus amounts as follows: Basing on Baltimore for both fiber board and sugar, $3,005,000. Basing on Baltimore for fiber board and Savannah for sugar products, $1,250,000. 72. Peanut oil products.-The Brown Co., of Portland, Me., who are large manufacturers of wood paper pulp and pulp products, produce large quantities of hydrogen gas as a by-product. This gas combined with vegetable oils, notably peanut oils, results in a valuable food product-a vegetable substitute for lard. After the oil is extracted the crushed residue is used in the production of cattle foods and the peanut hulls are used in the manufacture of linoleum or similar products. All these manufactured products command a wide market but the raw materials must have cheap transportation in order that the production may be economically feasible. 73. After long, scientific experimentation, the company purchased 70,000 acres of select lands on the upper Hillsboro Canal not far from Lake Okeechobee. These lands have ready access to St. Lucie Inlet by both water and highway. Special machinery for planting, cultivating, harvesting and processing the crop has been developed. The company is well financed, well organized and has a well-defined program for the planting of 30,000 acres in peanuts. Other crops will be raised on other lands. 74. The annual yield per acre of lands set to various crops is estimated at 1,500 pounds of peanuts and 1 ton of peanut-vine hay; 7,500 pounds of potatoes; 600 crates of celery; 6 tons of cabbage and 300 bushels of carrots, lettuce, and spinach. On the foregoing basis the annual output of peanuts and hay on 30,000 acres will be 22,750 tons of peanuts and 30,000 tons of hay-a total of 52,570 tons-particularly well suited to water transportation. The yield of potatoes will be 3,750 tons per 1,000 acres and the output of other vegetables will be large. 75. Detailed data on which to compute potential savings by water are not available. The gross yield on 70,000 acres can not now be estimated with precision nor can the gross savings be computed. Data as to the peanut output have been worked out in consonance with the pulpwood by-products. As the peanut products must go to Portland, Me., or other northern points for final processing and distribution, the differential in favor of water transportation, after making all reasonable allowances in comparison with the movement of sugar, will certainly amount to $10 per ton as a minimum and the entire oil product at least will move by water. The gross savings will then become 22,750 tons at $10, or $227,500. 76. General freights for the Everglades community.-Reference has already been made to the certain freight requirements of the Dahlberg Interests and the Brown Co. These two companies, both possessing ample resources, contemplate the intensive development of about 165,000 acres or over 250 square miles of selected lands lying within a very few miles of the ocean and easily accessible by railway and inland waterways. The Dahlberg interests will employ 20,000 workers, who with their families will mean 100,000 persons to be housed, clothed, and fed. The Brown Co. will require a large number of workers also, representing certainly not less than 20,000 persons including families. The operations will require large quantities of fuel oil, machinery, miscellaneous plantation and mill supplies of all sorts as well as large quantities of building materials, foodstuffs, clothing, and miscellaneous freights needed by the population of 100,000 or more. When it is remembered that the per capita consumption of flour is 200 pounds per annum, some realization will be had of the tonnage involved. One million tons is a low estimate of requirements of all commodities and of this at least one-fourth would be handled most cheaply by water. The freight rates per ton will average higher than on sugar but if the unit savings ($8.35 per ton to New York) on raw sugar outbound be used for computation purposes, the gross savings on inbound freights will be $2,087,500. Or, otherwise, basing on the Savannah differential of $2.50 per ton, the annual savings would still be $625,000. 77. Additional tonnage.-The statements made by the Dahlberg and Brown concerns as to their plans are supported by actual development operations representing large capital expenditures. The estimates do not, however, include the needs of the present population nor plans made by others for the development of the Okeechobee and Everglades country. They do not include the savings that will accrue to the back country lying north, west, and south of Lake Okeechobee, though all this territory is within the radius of the port's influence. The figures do not take into account any savings on supplies delivered by railway at rates reduced to meet water competition. 78. The estimates omit many items involving large tonnages of commodities that are practically certain to move by coastwise vessels. Fertilizers are a case in point. Though the soil is generally rich, special fertilizers are required to bring the natural soil components into balance, and to avoid exhausting the soil. No effort will be made here to estimate the quantity required after planting on a large scale shall be instituted, but some idea may be obtained from the following table indicating requirements for various crops, viz: Fertilizer, pounds per acre 400-600 1,000-2, 000 4, 000-8, 000 3, 000-5,000 2,000-5, 000 1,000-2, 000 1, 600 2, 000-4, 000 500-1, 500 79. In 1927 with the small acreage then cultivated Palm Beach, Hendry, and Glades Counties used 4,840 tons; the differential in favor of coastwise (as against rail) is 27 cents per ton from Jacksonville to Palm Beach. From more northern points it is still greater. 80. It is to be observed that fertilizers are manufactured in large quantities at Baltimore, Charleston, Savannah, and Jacksonville all having direct coastwise connection with the ports in Southern Florida; and the port at St. Lucie Inlet is particularly well situated to serve as a distributor for this low-rate commodity which can move economically by canal barges into the back country. 81. Lumber.-In the region around Lake Okeechobee there is a considerable stand of pine, which, when milled, finds a profitable market in the West Indies and other localities necessitating ocean transport. In view of the navigable capacity and location of the St. Lucie drainage canal this lumber would be benefited by a port at St. Lucie Inlet. 82. The Long Leaf Lumber Co., of Beaumont, Tex., has at Indiantown, on the St. Lucie Canal, 150,000 acres of timber, with sawmills and planing mills. The cutting program is based on 300 days' operation per year, milling 22,500,000 board feet. A small company near Palm City, on the St. Lucie River, produces about 4,500,000 feet per annum. The two operations thus aggregate 27,000,000 board feet with a shipping weight of 50,000 tons per annum. These operations are expected to run for 10 years. 83. The St. Andrews Bay Co., with mills at Sherman, near the north shore of Lake Okeechobee, are operating on a program producing about 100,000 tons per year for 10 to 12 years. 84. There are other stands of timber in the Okeechobee country whicn could readily be marketed via the lake, the St. Lucie Canal, and through a port at St. Lucie Inlet. Furthermore, logging interests throughout the State appreciate the significance of reforestation and the prospects are reasonably good for sawmill operations in the Okeechobee country for an indefinite term of years. 85. Rail rates from the mills to New York and Baltimore are $8.40 and $8 per ton respectively. For comparison, it is noted that the ocean rates from Tampa and Jacksonville are $9.50 and $8.50 respectively per thousand board feet. The rate from St. Lucie Inlet may then be fairly averaged at $9 per thousand board feet which, in view of the unseasoned nature of the output, is practically equivalent to $4.50 per ton. Allowing 1 cent per ton-mile for barging down stream, and the New Orleans tariff of about $1.15 per ton ($2.30 per thousand feet) for stevedoring, the total rate from mills to New York from Port St. Lucie would be about $6.25 per ton. 86. The advantage, then, over the all-rail route is $1.75 per ton. Applying this differential to the aggregate output of 150,000 tons, the annual freight savings amount to $262,500. In view of the location of its market, it is conservative to estimate that at least 50 per cent of this lumber would utilize water transport, and the resultant benefits from the improvement of navigation may therefore be stated at $131,250. 87. Gasoline and fuel oils.-With the creation of channels at St. Lucie Inlet capable of accommodating ocean tankers transporting petroleum products supplemented by oil barges operating on the canals and Lake Okeechobee, it will be possible to greatly reduce the freight charges now paid by residents of the vicinity on the gasoline and other petroleum products used annually by them. 88. South Florida consumes large quantities of gasoline and fuel oils. The commodities, essential to the development of the Everglades country, are well adapted to movement by water, being transported in the first instance by ocean tankers from refineries to storage tanks at ports, and being distributed in the second instance by canal barges, railway and motor tank cars to sales stations. 89. Given a suitable channel, the port at St. Lucie Inlet is well located for the development of a large business in petroleum products. It is in close proximity to the routes followed by ocean tankers in going to northern ports from the refineries on the Gulf of Mexico. The port, therefore, can take a part cargo, if necessary, without causing a tanker to go far out of its regular traffic lane. The canals centering at St. Lucie Inlet, the excellent highways, and the railway connections, actual or potential, heretofore mentioned, furnish an excellent transportation system for the distribution of the products named. 90. As an indication of the possibilities it may be stated that during the current month the Mexican Petroleum Corporation, which has a contract with the city of Fort Pierce for approximately 24,000 barrels of fuel oil, has offered to deliver the supply in tankers at a rate that will effect a saving of 422 cents per barrel under the 50 cents per barrel charged by rail from Jacksonville. This possible saving |