Mr. N. W. Benson, Member:

The author is to be congratulated for presenting this fine paper. "The St. Lawrence River Canals Vessel," or "The Canaller," by James Gilmore, will stimulate interest and thought not only on the "Canaller" as it exists today but on the "Canaller" of the future and on the "future" of the "Canaller." Mr. Gilmore has presented an historical document which, I am sure, will be a permanent record in our log-book.

The first part of the paper describes the development of the canal up to 1900. On that date, 56 years ago, it was completed, and remains up to the present day. The allowable draft increased from 2 1/2 to 5 ft, then up to 9 ft, and finally to 14 ft. This increase in draft took 200 years (1700 to 1900). When the Seaway is completed in 1960 the allowable draft will be increased to 27 ft. From 14 ft draft to 27 ft draft took 60 years. Progress in building and completing our canals has indeed been very slow.

The author states, "On the opening of the St. Lawrence Seaway, the 'canaller,' to all intents and purposes, will become obsolete." I do not entirely agree with that statement and I would like to give my reasons for this.

Any ship is obsolete when it ceases to make a profit, no matter how small, for its owners. It is assumed that the word "obsolete" is used here in that sense.

Economics. Looking at the future of the canaller from the "economic" point of view, we find that there is about 50 million dollars tied up in these canallers, employing 5000 trained crew and 35,000 men indirectly ashore. Do you not think the owners of those vessels will do everything in their power to keep their canallers making money?

Canadian shipowners are reluctant to go forward with very much new construction; e.g., high costs, uncertainty of markets, need for greater skilled crew and large tie-up of capital.

Let us keep in mind that the cost of the canaller has been written off long ago.

Any new construction at much greater cost will depreciate slowly unless legislated for accelerated depreciation.

New and larger construction tied up for 4 months a year will offset the better profits which it makes over the canaller.

Can the Canadian owner afford to tie up a modern, fast and expensive ship for 4 months a year?

New construction, that is, big investment, must work full time-12 months a year.

We realize, too, that tolls on the new Seaway may offset potential profits from larger ships.

Most of today's canallers were built in the 20's, say 1925, or 25 years after the canal was completed when shipbuilding was comparatively cheap. These vessels are still seaworthy and the owners will see no need to replace them unnecessarily.

According to the author's tabulation, 150 existing canallers out of 180 vessels, or 85 per cent were built before 1930, with an average of 35 years. It could be said that these canallers are obsolete as far as age is concerned, whether the Seaway was put through or not.

We find, too, that 12 canallers have been built since 1950 and another 11 are under construction right today. These are Diesel-driven and faster than their steam counterparts, and have been built for dual purpose, for Great Lakes and also for deep-sea service.

Many of the newer canallers have been designed for 16-ft 6-in. draft, to take advantage of the Seaway.

These new canallers, Diesel-driven, have about 20 per cent more carrying capacity than their old sister ships.

As we look forward to the completion of the Seaway these old canallers will be even more efficient than they now are, because the delays in locks will be greatly reduced -- 6 locks against 22 today. Voyage time will be definitely less.

Operations. Looking to the future of the canaller from the "operations" point of view, a close inspection of the ships shows that many have been designed for specialized trade.

Although limitation of ship size will not be an element with the Seaway, the specialized trade still remains. We must remember, too, that this lucrative trade was in many ways created by the existing canaller owners.

The amount of money invested by Canadian owners of canallers for the efficient handling of the package freighter is very, very large, and it will take many years and much more money to handle the new vessels.

To maintain good profits on the large "Upper Lakers," existing canallers will be required to feed and assist them in handling their cargoes.

Concluding from the "operations" point of view, the crew for the canaller is already trained and available.

Crews for new construction will be more specialized and harder to obtain, as they say, "tough to get."

I am sure the author will agree that it will be many years before trained crews are available for new construction.

Supply and Demand. Looking at the future of the canallers from the "supply and demand" point of view, we recognize that the laws of "supply and demand" must always be reckoned with.

Last year half the Upper Lakers were laid up due to slow movement of grain, but not one canaller. Grain movement was just enough to fill a canaller.

With increased volume of world goods the demand for canallers will still be great. Small ports will spring up to accommodate a canaller where there were no ports at all.

The package freighter will concentrate more on domestic home products in direct competition with the railway and trucking.

Volume of goods: As we consider for instance "pulpwood," the quantity at one dock could not be handled economically by using a larger ship than a canaller. "Paper" also comes under this same category, as well as "cement in bulk," and "semi-steel products."

We must maintain existing ports of call of larger shippers. For example, St. Lawrence Mills, Ogilvy's Canada Malting, Dominion Mills, small elevators in Montreal Harbor, Sorel, and Three Rivers. Here only the canallers can he used.

The small shippers also must be accommodated, and here again the canaller appears to be the most suitable vessel.

Finally, according to the paper, Jacques Cartier had only to climb Mount Royal to see the rapids blocking his path to the west. Has the Canadian owner a "mountain" high enough to see what "rapids" lie ahead to block his path with the coming St. Lawrence Seaway?

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This paper was presented at a meeting of the Society of Naval Architects and Marine Engineers and is reproduced with permission.