433
"tear, taking no account of accidents."
"It will probably be found expedient to insure any dredger that the Government may acquire; this may be done at the rate of 8% premium."
"Another item worthy of consideration is Depreciation. This may be calculated at 15% for the first year, gradually increasing in subsequent years, until the total value is written off, which should happen in six years."
"These figures may or may not be accurate; they appear to me to be somewhat exaggerated, and should be perhaps, received with caution, as it certainly is to Mr. Houston's interest or that of the firm, to discourage the purchase of a dredger by the Government, for he further informs me that the present work of the 'St. Enoch' will be finished in November next, and that he will not then require her for a year or two, so that he is willing to tender for removing the shoals at so much a cubic yard, but that he would not entertain the idea of hiring out the dredger to the Government, for them to carry out the work."
"As an alternative, the Dock Coy. might be approached with a view to the sale or lease of the 'Canton River' dredger, or they might tender for the work themselves, in opposition to Messrs. Punchard & Lowther."
"Since writing the above, I have seen Mr. Kidd, of the same firm. He estimates the original cost of a new dredger at a higher figure, about £25,000 to £26,000 and the working expenses somewhat less, but points out that these would depend entirely on the nature of the stuff to be dredged; if hard stuff, the repair might easily amount to the sum mentioned by Mr. Houston."
May 26th 1902
Harbour Master