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NCCA Business Proposal

Business Proposal presented by the NCCA in 1836 to Mrs. Gordon (The Investor)

Nick Elia

on 10 March 2014

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Transcript of NCCA Business Proposal

NCCA Canal Business

Xavier Ruffin
Brett Allan
Jake Mullan
Nick Elia
Cole Thomas
Will Powers
Erie Canal
canal built in
New York
$7.5 million
to build and is estimated to make over
$121 million
in revenue by 1886 (
1,720% profit!
It opened up the unsettled regions of Ohio, Indiana, and Illinois
The Erie Canal turned NY into a metropolitan trading powerhouse by connecting
Lake Erie
with the
Hudson River
New York was the biggest city in America at the time and also had the busiest port
Since 1837-
3,000 miles
worth of canals built
Canals aid the transport of goods to and from areas without natural waterways (rivers, lakes, etc.) and can connect these waterways
The canal boats could carry thirty tons at a time with only one horse pulling (more than 10x the amount of cargo per horse that was possible by cart)
Help the economy of small towns, create jobs and opportunities to ship goods to other towns and cities
New waterways for steamboats to travel on (increases economy + jobs)
Erie Canal made NYC into a cosmopolitan trade center - actual example of canal benefits (Just think of the other cities that would be successful)
Drastically reduced the cost of transportation and travel
Rafts and riverboats carried bulky agricultural goods downstream (farmer friends)
Many canals provided access to more than one single market (i.e. canals allowed shipments to go south to the Ohio River and then by riverboat to the gulf states)
Flash floods: add water without us paying for it (Very hard to flood a canal)
Transport more goods and people at once (barges / steamboats)
Helps open up and bring goods to the west
Already a lot of natural waterways (we can add onto them)
Already a history of success and knowledge of previous errors
Opens up new lands without previous waterways
Helps economy in small towns=all the workers are staying there and are buying things
Bring goods to interior of nation much easier
ships goods everywhere
New waterways for steamboats
Our Competitors
Rain could devastate these mud based roadways
Private tolls never turned a profit because of “shunpikes” or short detours that enabled people to bypass the toll booths
Still required horses which were inefficient in moving a lot of goods (very slow!)
Required expensive abundant maintenance
Only truly effective over short distances
Good weather=dusty and rough
Very slow + steam powered with coal
natural waterways only go so far into the US (relied on canals to exploit areas without natural waterways)
MANY FIRES / mechanical errors
Normally only operable for a few years (not a good long-term investment)
Needed more technology for further advancements
Only truly effective on the East Coast
Mountains, rivers, etc. can not be crossed without extra work put in
Required flat land + iron + coal
More expensive than water travel (for the supplier and the consumer)
Relied on Canals for their business
Real Life Business Example: Erie Canal cost roughly
7.5 million dollars
to build
Within the first 10 years of its use, it made an upwards of
$1,250,000 revenue
With your
1 million dollars
we can create a total of
40 miles
of canals
This would be located at the top of the heart of the
production area in
. Cotton is much more successful than any product in the North.
But if you are willing to double your investment with our company for a total of
$2 million
, we would build another canal about
50 miles south
of the first one, and name both canals as the Gordon Canals
If you do invest
2 million dollars
, however, based on income of the extremely successful Erie Canal (about
), at a
10% profit increase/year
(based on the graph on slide 1)

and a
profit sharing level you will make your money back in
10 years
Cotton kingdom location
- avid news reader hears about cotton boom??
After your money is payed back in entirety your equity will drop to
and you will still be making good money (about (
Why Invest in NCCA?
ompany of

Our Proposal
Vessel Under 16 ft. (4.88 meters)
Monthly Pass - $2.50
Ten-Day Pass - $1.00
Two-Day Pass - $0.50
Vessel 16 ft. – Under 26 ft. (4.88 meters) - (7.93 meters)
Seasonal Pass - $4.00
Ten-Day Pass - $2.00
Two-Day Pass - $1.00
Vessel 26 ft. – 39 ft. (7.93 meters) - (11.89 meters)
Seasonal Pass - $5.00
Ten-Day Pass - $2.50
Two-Day Pass - $1.50
Vessel Over 39 ft. (11.89 meters)
Seasonal Pass - $7.00
Ten-Day Pass - $3.00
Two-Day Pass - $2.00
Canal Details
Location, Location, Location
Work Force
Our navvies include anyone (male & female) that is willing to work for the NCCA.
We are, however, very ethical in our decision making so we do not hire slaves, prisoners, or young children.
The minimum age for working for the NCCA is 14 years of age.
A solid day's work wage is $0.60/day or $15.6/month.
This is for a 26 work day month (excluding Sundays).
We chose to locateour canals in the heart of the cotton kingdom in the southern state of Mississippi. Since we only had a budget of two 40 mile canals, or an 80 mile canal, we were limited to where we would build them.
Dimensions, etc.
= 4 ft deep
= Two, 40 mile (211,200 ft) canals (80 miles total)
= Surface: 40 ft
Bottom: 18 ft

The canals will both be dug according to the dimensions listed above by our hired navvies using shovels and pick, but no explosives/gunpowder. Then, the canals will be lined with "puddle clay": These created a watertight seal so the water in the canal could not soak into the surrounding earth.
Full transcript