#### COMPAGNIE GÉNÉRALE TRANSATLANTIQUE v. THE UNITED STATES1

[No. C-935]

*On the Proofs*

*Expropriation of contruet; requisition under act of June 15, 1917 ; vessels under construction.-*— See *Consor zio Veneciano M Arma-mento e Naviqazione*v. *United States, ante,*p. 11. See also related cases, pp. 38, 59, 80, 98.

*120*The BeporteTs*statement of the case:

*Mr. Charles S. Haight*for the plaintiff. *Messrs. Wharton Poor*and *Fromk J. Foley,*and *Haight, Smith, Griffm d> Deming*were on the briefs.

*Messrs. Assistant Attorney General Hemvm J. Galloway, Henry M. Ward,*and *James Talbert,*for the defendant. *Mr. W. W. Nottingham,*was on the briefs.

Decided February 14, 1927.

Motion for new trial overruled December 5, 1927.

The court made special findings of fact, as follows:

I. The plaintiff, Compagine Genérale Transatlantique, was and still is a citizen organized and existing under the laws of the Eepublic of France, and is a citizen and subject of the Eepublic of France. Plaintiff did business within the United States, having an office at 19 State Street, in the city and State of New York.

II. Under and by virtue of the 1'aws of the Eepublic of France, citizens of the United States are accorded the right to prosecute claims against the Eepublic of France in its courts.

III. On the 21st day of July, 1916, one Sigvard Eas-mussen, of Haugesund, Norway, entered into a contract in writing with the Standard Shipbuilding Corporation, a cor-portation organized and existing under the laws of the State of New York, owning and operating a shipyard at Shooters Island, State of New York, in and by which said Standard Shipbuilding Corporation agreed to build at its said yard for the said Sigvard Easmussen, who then was and now is a citizen of the Kingdom of Norway, a single-screw, ’tween deck, steel, cargo" steamship of approximately seven thousand three hundred tons (7,300) dead-weight capacity, at an agreed price of $121.91 for each ton of dead-weight capacity, making the estimated price $890,000, payable in certain installments, as set forth in said contract. The contract also provided that the vessel or any part thereof, and all materials purchased and delivered to the yards of the shipbuilder for her construction, should become the property of the purchaser in so far as he had made payments under the con*121tract. The contract further provided that in case the shipbuilder did not proceed with reasonable dispatch in the building of the vessel the purchaser might enter into the yard of the shipbuilder, employ any number of workmen, and use and 'employ the necessary machinery, engines, and tools of the shipbuilder, purchase materials, proceed with the finishing of the vessel, pay the wages of the workmen, and pay for such materials out of the balance remaining unpaid of the purchase price, and in case the same was insufficient for the purpose the shipbuilder would pay and make good the deficiency. The contract further provided that the shipbuilder should place in escrow in a bank or trust company the first two payments under the contract, amounting to $222,500, being 25% of the purchase price, to be held by the bank or trust company as security to the purchaser for the faithful performance of the contract by the shipbuilder, and that the shipbuilder could at any time substitute for this deposit the bond of a surety company in favor of the purchaser for a like amount, conditioned upon the faithful performance of the contract by the shipbuilder, whereupon the said escrow money should be paid to the shipbuilder. Said Standard Shipbuilding Corporation began the construction of said steamer *Hull No. 5.*

A copy of the said contract is attached to the petition as Exhibit A and is made a part hereof by reference.

IY. On July 27, 1916, the said Rasmussen and the Standard Shipbuilding Corporation deposited in escrow with the Guaranty Trust Company of New York the first two payments under the said contract of July 21, 1916, on instructions that the said sum was to be paid to the Standard Shipbuilding Corporation when it delivered the vessel to be constructed under the said contract, or delivered a surety company bond for $222,500 conditioned upon the faithful performance of the said contract by the Standard Shipbuilding Corporation. Subsequently, on July 28, 1916, the Standard Shipbuilding Corporation delivered to the Guaranty Trust Company a bond of the Globe Indemnity Company for $222,500 conditioned upon the construction and delivery by the Standard Shipbuilding Corporation of the vessel to be built and delivered under the said contract. Thereupon the *122'Guaranty Trust Company paid the Standard Shipbuilding Corporation the said deposit of $222,500. Subsequently, Rasmussen paid the Standard Shipbuilding Corporation the third, fourth, fifth, sixth, seventh, and eighth installments payable under the said contract between him and it, amounting to $444,999.97, making the total payments paid by Rasmussen to the Standard Shipbuilding Corporation $667,-499.96.

Of the said deposit in escrow so released $89,000 was applied by the Standard Shipbuilding Corporation as the first payment under said contract of July 21, 1916, and the balance, namely, $133,500, was redeposited with the Guaranty Trust Company of New York, for which a certificate of deposit was issued by said Guaranty Trust Company of New York to the said Standard Shipbuilding Corporation, which said certificate of deposit was endorsed over to the Globe Indemnity Company by said Standard Shipbuilding Corporation to be held by it as collateral security for the aforesaid bond.

Y. On February 12, 1917, by an agreement in writing the said Sigvard Rasmussen sold the said contract between him and the Standard Shipbuilding Corporation dated July 21, 1916, to the plaintiff at the price of $188.50 per dead-weight ton, or $1,376,050. The agreement provided that the plaintiff should assume the thiee remaining unpaid installments, viz, the ninth, tenth, and eleventh installments, under the said contract, and pay them to the Standard Shipbuilding Corporation and pay the balance of the purchase price of the said contract to Rasmussen. The plaintiff paid the said balance of the purchase price to Rasmussen, and on February 20, 1917, Rasmussen executed and delivered to the plaintiff an assignment of his said contract and all his rights thereunder with the Standard Shipbuilding Corporation. This assignment also appears at the end of Exhibit A to the petition.

YI. Prior to August 3, 1917, the plaintiff, as assignee of the said Rasmussen, paid and the Standard Shipbuilding Corporation received from the plaintiff the ninth and tenth installments of $74,166.66 each, in all $148,333.32, payable under the said contract of July 21, 1916, leaving unpaid *123the eleventh and last installment of $74,166.66, which was not payable until the vessel was completed and delivered.

VII. On July 11, 1917, the President, by virtue of the authority vested in him by act of Congress of June 15, 1917, by Executive order delegated the powers conferred upon him by the said act to the United States Shipping Board Emergency Fleet Corporation. Under authority so conferred upon it the Emergency Fleet Corporation on August 3, 1917, while the construction of the vessel being built under the said contract was in progress, sent the Standard Shipbuilding Corporation the following telegram and the following letter, referred to therein, which were duly received.

[Telegram]

STANDARD SHIPBUILDING CORPORATION,

*Shooter’s Islcmd, N. Y.:*

By virtue of an act approved June 15, 1917, and authority delegated to the Emergency Fleet Corporation by Executive order of July 11, 1917, all power-driven cargo-carrying and passenger vessels above twenty-five hundred tons deadweight capacity, under construction in your yards, and materials, machinery, equipment, and outfit thereto pertaining are hereby requisitioned by the United States and will be completed with all practicable dispatch. Letter follows.

W. L. Capps, *General Manager.*

[Lettei-]

United States Shipping Board

Emergency Fleet Corporation,

*Washington.*

Standard Shipbuilding Corporation,

*Shooters Island, N. Y.;*

By virtue of an act of Congress approved June 15, 1917, entitled “Act making appropriations for the Military ■ and Naval Establishments on account of war expenses for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes,” and by authority delegated to the United States Shipping Board Emergency Fleet Corporation under Executive order of the President, dated July 11, 1917, all power-driven cargo-carrying and passenger ships above 2,500 tons d. w. capacity under construction in your yard, and certain materials, machinery, equipment, *124outfit, and commitments for materials, machinery, equipment, and outfit necessary for their completion, are hereby requisitioned by the United States.

On behalf of the United States, by virtue of said act and said order, you are hereby required to complete the construction of said requisitioned ships under construction and will prosecute such work with all practicable dispatch.

The compensation to be paid will be determined hereafter and will include ships, material, and contracts requisitioned.

You will furnish immediately general plans and detail specifications of the ships requisitioned and copies of contracts and all supplemental agreements in relation thereto and full particulars as to owners, date of completion, payments made to date, amounts still due, and any other information necessary to a fair and just determination of the obligations of the Emergency Fleet Corporation in taking over these ships and contracts.

You will report immediately whether any additional contracts are under consideration and their character and extent, and will not enter into any additional contracts or commitments with respect to merchant tonnage without express authority from this corporation.

(Signed) W. L. Capps,

*General Manager United: States Shifting Board*

*Emergency Fleet Corporation.*

WASHINGTON, D. C., *Axigust 3,1917.*

Among the vessels included was the vessel which the Standard Shipbuilding Corporation was building under the said contract.

VIII. On August 13, 1917, Eads Johnson, the district officer of the United States Shipping Board Emergency Fleet Corporation at New York City, sent Admiral W. L. Capps, the general manager, the United States Shipping Board Emergency Fleet Corporation, Washington, the following letter:

Eads Johnson,

DISTRICT OFFICER UNITED STATES SHIPPING BOARD

Emergency Fleet Corporation, 2d District,

*115 Broadway, New York City, August 13, 1917.*

Admiral W. L. .Capps,

*General Manager Emergency Fleet Corporation,*

*Washington, D. C.*

Standard Shipbuilding Corporation.

Dear Sir : Herewith copies of contracts, plans, and specifications for thirteen (13) 7.300-ton dead-weight capacity *125steel cargo vessels, their standard design, each contract covering one vessel only. Their letter dated August 8th, marked “A,” attached, states that these are true and correct copies. There were found, however, in the case of Nos. 6 and 7, some discrepancies, but their letter of August 10th, marked “ B,” two sheets, clears up the difference between the original and copies.

2. Copies of contracts 6 and 7 and letter furnished me by the Russian Volunteer Fleet are also enclosed, wherein there is some difference between these and the copies furnished. These are marked “ C,” “ C-l,” “ C-2,” and “ C-3.”

3. Report of contracts on hand, so far as the financial status is concerned, is enclosed, marked “ D.”

4. Supplementing the information which they have furnished, I have made a personal inspection and find contracts in the following condition:

Hull ^tpl:

Has been launched.

Schedule trial trip Sept. 1st to 15th.

Present stage of completion hull steelwork, 90%.

Carpenter work, 75%.

Joiner work, 15%.

Main engines in ship, 95% completed.

Main boilers in ship, 90% complete.

Piping, 30% complete. Being held upon account of valves and fittings not delivered.

Note. — I think the trial date will have to be extended from 3 to 6 weeks beyond dates they give, from present stage of the work.

Hull #2:

Still on stocks.

Launching date given, September 10th.

No delivery date.

Hull now 85% completed.

Note. — Will require continuous work to meet launching date. Would name at least two weeks additional time necessary.

Main engines are very nearly completed and could be made ready to install in ship in ten (10) days’ time. Boilers, 45% completed.

Hull #3:

Hull about 55% completed.

Engines, 75% completed, in shop.

Boiler, 15% completed.

Hull #4:

Keel and keelson laid, and 75% of bottom shell in place.

No frames up.

*126Hull #4 — Continued.

Engines, 65% completed, in shop, awaiting forgings for connecting rods.

Boilers, all material at plant, not worked.

Hull #5:

90% of keel laid.

40% bottom shell plates in place.

Start made on engine bedplate.

Boiler, all material at plant, not worked.

Hull #6:

Nothing done.

Material in yard.

Practically all material, including auxiliaries, with the exception of mast and spars, has been delivered for all six (6) vessels.

Report of material attached (marked “F”).

They also have received contract for two mine sweepers for the United States Navy, and the keel blocks are now ready for keels.

In accordance with instructions received from Mr. Fuller on Saturday, I sent my district auditor, with accountant, to the plant, and the result of his findings is on attached sheet, marked “ E.”

I am also attaching copy of letter which I have delivered by hand, on Saturday, in accordance with Mr. Fuller’s instructions, marked “ G.” Full particulars as to vessels incorporated in the specifications.

Further particulars have been furnished by my letters of August 9th and August 10, which are in Mr. Fuller’s file, which he left with me on Saturday, and which I am returning under separate cover.

Mr. Larkin, of the firm of Joline, Larkin & Rathbone, attorneys for the Standard Shipbuilding Corporation, called this afternoon and commented on the fact that if they followed instruction they could not fulfill their contracts for the Navy Department, and suggested that he would very much like to have an interview with Admiral Capps to get the matter finally straightened out, as he was not entirely clear as to just how far the corporation intended to exercise their power and it was necessary for him to know it. I advised Mr. Fuller by phone, and Mr. Larkin will wire when he will be in Washington.

Respectfully,

(Sgd.) Eads JohNsoN,

*District Officer.*

*127IX. On. August 22, 1917, the United States Shipping Board Emergency Fleet Corporation sent to Eads Johnson, its district officer at New York City, the following letter, a copy of which Johnson sent to the Standard Shipbuilding Corporation:

United States Shipping Board

Emergency Fleet Corporation,

Washington, *August M, 1917.*

Mr. Eads Johnson,

*115*Broadway, *New York Gity.*

Dear Sir: Referring to the vessels under construction in the yard of Standard Shipbuilding Corporation, New York, N. Y., requisitioned under the corporation’s order of August 3d. Precedent to the final examination of the contract for the vessels in question, you are requested to inform the shipbuilder as follows:

The ships now under construction at your plant and referred to above, having been requisitioned by the duly authorized order of this corporation and title thereto taken over by the United States, and an order having been placed with you by due authority to complete the construction of said ships with all practicable dispatch, you are further ordered by the President of the United States, represented by this corporation, to proceed in the work of completion heretofore ordered, in conformity with the requirements of the contracts, plans, and specifications under which construction proceeded prior to the requisition of August 3, 1917, in so far as the said contract describes the ship, the materials, the machinery, equipment, outfit, workmanship, insurance classification, and survey thereof, including the meeting of the requirements of the said contract and all tests as to efficiency and capacity of the ship on completion, and in so far as the contract contains provision for the benefit and protection of the person with whom the contract was made, but not otherwise.

All work will proceed undeT the same inspection of such persons as have been or may hereafter, from time to time, be designated by 'this corporation for that purpose.

For the work of completion theretofore and herein ordered the corporation will pay to you the amounts equal to payments set forth in the contract and not yet paid; provided that on acceptance in writing of this order you agree that on final acceptance of the vessel to give a bill of sale to the United States in satisfactory form conveying all your right, title, and interest in the vessel, together with your certificate that the vessel is free from liens,

*128claims, oí equities, with the exception of those of the owner, and then only to those set forth in the contract. Compensation to the shipbuilder for expedition and for extra work will, when deemed appropriate, be made the subject of a subsequent order.

This work applies only to vessels actually under construction, and in accepting it the corporation expects you to inform it of the actual stage of construction of each vessel or' the parts to be assembled therein and the date of requisitioning, August 3, 1917. The corporation reserves the right to decide whether or not a vessel was actually under construction on August 3, 1917, on consideration of the ascertained facts.

In replying to this communication, please arrange to specify separately the vessels to which this order refers, and refer to the corresponding contract in sufficient terms for identification of it.

Please furnish a copy of this to Standard Shipbuilding Co. and ask for an early reply.

Very.truly yours,

(Signed)

W. L. Capps,

*General Manager.*

X. On August 28,1917, the United States Shipping Hoard Emergency Fleet Corporation sent to its district officer, New York City, Eads Johnson, the following letter, a copy of which Johnson sent to the Standard Shipbuilding Corporation :

Uotted States Shipping BoaRd

EMERGENCY FLEET CORPORATION,

Washington, *August 28, 1917.*

Mr. Eads Johnson,

*115 Broadway, New Yorh Gity.*

Dear Sir : Herewith you will find a copy of the corporation’s letter, in duplicate, of this date, relating to such vessel's building by Standard Shipbuilding Company in your district.

You will immediately notify the shipbuilding company that you are instructed to take charge, for the corporation, of the completion of these vessels, and you are authorized hereby to take over into the employ of the corporation, temporarily, the owner’s local inspecting officers at the present rates of compensation, so far as they can comply with existing instructions and those hereafter issued in regard to citizenship, being careful that they take the usual oath of office.

Beport promptly the name, compensation, the date of taking the oath, and the former employers of those whom you take over.

*129You will please forward, without delay, the usual certificates for payments which have become due since the date of requisitioning or may become due under the contract after that date, so far as practicable, certified by the former local inspector as well as yourself. These payments to the shipbuilder for the present must not exceed the actual cost of the contractor’s outlay for labor, materials received since the last payment plus the approved overhead expense, nor must the payment so determined exceed the contract payment accrued.

It is the expectation of the corporation to carry out the substance and purpose of the contract, *but*this decision can not be made definite until the corporation can investigate the facts and terminology of each contract to assure proper protection of the Government.

You will please furnish to the shipbuilder a copy of this letter, and one copy of the enclosure, and you will request the shipbuilder to furnish you without delay, for transmission to the corporation, a statement in detail of such payments received on account of each contract prior to August 3d, the date of requisitioning.

Very truly yours,

(Signed) W. L. Capps,

*General Manager.*

Enclosed in the said letter of August 28, 1917, to Johnson were copies of the following letter and the enclosure therein referred to as enclosure A.

On August 28, 1917, the Emergency Fleet Corporation sent the plaintiff the said letter and enclosure A, both being duly received by the plaintiff.

United States Shipping Board

Emergency Fleet Corporation,

*Washington, August 88, 1917.*

Compagnie Genérale TransatlanticTM,

*19 State St'., New York City.*

Dear Sirs : On August 3, 1917, the United States Emergency Fleet Corporation issued to the Standard Shipbuilding Corporation the notice or requisition set forth in enclosure marked (a).

In response to this communication Standard Shipbuilding Corporation, the shipbuilders, informed us that you, as owners, or representatives of owners, had entered into a contract with them for the vessels listed below:

Hull No, Type D. W. ton Date of contract

5 Cargo 7,300 7-21-16

*130The corporation’s district officer having charge of vessels in the district in which the shipbuilders are located has been instructed to take charge, for the corporation, of the completion of vessels now under construction, and has been authorized temporarily to take over your local inspecting officers at their present compensation. Will you please inform the district officer, Mr. Eads Johnson, at 115 Broadway, New York City, the names of your representatives and their compensation, sending a duplicate to this office? Your cooperation with the corporation is invited.

The corporation will consider payments to the contractor accruing since the date of requisition upon the receipt of proper vouchers and adequate information to be forwarded through its district officers.

You are requested, as soon as possible, to report to the corporation a statement in detail of the payments already made by you on each ship named above prior to the date of the requisitioning, August 3,1917. This statement should be accompanied by the original vouchers and receipts and should be verified under oath by the proper corporate officer of your company.

It is the present intention of the corporation to reimburse you promptly, so far as funds are available, for the payments heretofore made to the shipbuilder, if after investigation of data submitted by you such payments are found in order and in conformity with the contract requirements.

At your further and early convenience you are requested to submit to the corporation a statement of such indirect expenditures as you have made on account of each vessel; for instance, the cost of superintendence, original design, interest on funds already paid, and the like. The matters mentioned will require careful audit, and in addition you may submit any other matters you deem pertinent.

It will be perceived that the corporation presumes it is addressing this letter to the owners, or responsible representatives of the owners, or persons entitled to receive compensation on account of the requisition of the vessels listed above. The corporation requests that there be included in your response to this letter all evidence of ownership which is necessary to establish the right of those who are entitled to receive the compensation provided by law.

The consummation of the orders herein and heretofore transmitted will be made the subject of later appropriate corporate action.

Yery truly yours,

(Signed) W. L. Capps,

*General Manager.*

*131Enclosure “A”

UNITED States Shipping Boakd

EMERGENCY FLEET CORPORATION,

*Washington, August %8, 1917.*

To Compagnie Générale Transatlantique, New York City.

By virtue of an act of Congress approved June 15, 1911, entitled “An act making appropriations for the Military and Naval Establishments on account of war expenses for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes,” and by authority delegated to the United States Shipping Board Emergency Fleet Corporation under Executive order of the President dated July 11,1917, all power-driven cargo-carrying and passenger ships above 2,500 tons d.-w. capacity under construction in your yard and certain materials, machinery, equipment, outfit, and commitments for materials, machinery, equipment, and outfit necessary for their completion are hereby requisitioned by the United States.

On behalf of the United States, by virtue of said act and said order, you are hereby required to complete the construction of said requisitioned ships under construction and will prosecute such work with all practicable dispatch.

The compensation to be paid will be determined hereafter and will include ships, material, and contracts requisitioned.

You will furnish immediately general plans and detail specifications of the ships requisitioned and copies of contracts and all supplemental agreements in relation thereto and full particulars as to owner, date of completion, payments made to date, amounts still due, and any other information necessary to a fair and just determination of the obligations of the Emergency Fleet Corporation in taking over these ships and contracts.

You will report immediately whether any additional contracts are under consideration and their character and extent, and will not enter into any additional contracts or commitments with respect to merchant tonnage without express authority from this corporation.

(Signed) W. L. Capps,

*General Ma/nag&r United States Shipping Board*

*Emergency Fleet Qorporation.*

XI. On August 28, 1917, the Standard Shipbuilding Corporation received the following letter from the Emergency Fleet Corporation:

*132TJNited States Shipping BoaRD

EMERGENCY FLEET CORPORATION,

*Washington, August 16, 1917.*

Standard Shipbuilding Corporation,

*Shooters Island, N. T.*

Gentlemen : Referring to the general order under date of August 3, requisitioning ships over 2,500 tons dead-weight capacity now under construction in your yard, under the order you are required to immediately furnish general plans and detailed specifications of the ships requisitioned, copies of contracts, and supplemental agreements in relation *thereto,*and other particulars as to owner, date of completion, payments made to date, amounts still due, and any other information necessary to a fair and just determination of the obligations of the Emergency Fleet Corporation. In addition, please state under what flag or nationality contemplated by the original contract.

Please report at once on ships nearing completion and in every case give the estimated date of completion.

The corporation requests that you make for each requisitioned vessel building by you suggestions—

(a) For the omission of such features as have been provided for convenience in special trades;

(b) For changes that will expedite placing the vessel in service;

*(c)*For changes that will insure the safety of the vessel;

(d) For omissions or changes that will reduce the cost without loss of efficiency for overseas-carrying purposes.

Suggestion is also invited in case the vessels are built for a special trade as to what cargoes they are suitable for and as to what modifications could be readily made so as to make the vessels suitable for general cargoes.

Items marked (X) must be carried or provided on every ship.

Estimates of cost of changes to be submitted through district officer.

The following items may be considered in the class of omissions :

1. *Cargo ports.*— In case of ships where cargo ports are intended, they should be omitted if the work is not too far advanced and shell openings plated in. If the ports are already out, same are to be permanently fastened and reinforced.

2. *Special cargo-handling equipment.*— Where special cargo-handling equipment is contemplated, provided the work is not too far advanced, same should be eliminated. The general requirements for cargo-handling gear would be *133two booms to each hatch, and where a third or fourth boom has been contemplated same can be omitted together with its gear. In the case of derrick posts, as usually fitted at No. 3 hatch provided with one boom, this arrangement should remain.

3. *Excessive wu/mber of ventilators to cargo holds and Huleen decks.*— Where cargo ventilators are in excess of two ventilators at each end of each hold and ’tween decks same can be dispensed with. In cases where ventilators are extended up in the walls to clear deck load this arrangement should remain.

4. *Bulwark slmtters abreast of hatches.*— Where bulwark shutters are contemplated abreast of hatches, provided the work has not advanced so far as to make it less difficult to fit shutters already cut than to omit them, they should be omitted and bulwarks closed in solid.

5. *Trucking door in ’tween-deck bulkheads.*— In all cases hinged water-tight doors in ’tween-deck bulkheads, except where necessary for cargo access, as in the case of ’tween-deck bulkheads at forward and art end of machinery space, the door openings to be plated in solid; or, if the doors are already out, same to be permanently fitted and reinforced.

6. Where oil is not carried in double bottom, the cargo ceiling on tank top, excepting under hatches, may be eliminated.

For the intended overseas service, in view of the military requirements needed, it is desired for all ships — this, however, subject to the advanced stages of construction, also in cases of ships nearing completion — that the following additions be made:

1. Additional W. T. transverse bulkheads to be fitted and present intermediate W. T. bulkheads extended up to upper deck with a view to obtaining two-compartment ship as far as practicable; that is, two compartments may be bilged or flooded and the ship remain afloat. In cases of bulk oil ships having wing trunkway at upper deck running fore and aft W. T. bulkheads to be fitted that the upper deck may become the bulkhead deck.

2. Valves or other means fitted on bilge and drainage piping for the purpose of preventing flooding communication from one compartment.

3. It is desired to install, in cases of ships wherever practicable, subject, however, to the advanced stage of work, an ice machine and cold-storage rooms. In usual cargo ships the capacity of the ice machine would be one ton, and possibly in larger size ships two tons capacity, and preferably of the direct expansion ammonia type. The *134C02 system and other makes of ice machines will be considered. No ice making is intended, but a scuttle butt or other means to be provided for cold drinking water for the crew, having faucet outlet in engine room and in galley or pantry.

For ships where it is not practicable to install an ice machine and cold-storage system for want of space and location and due to the advanced stage of the work, a large ice house should be provided for a sufficient capacity for storage space based on the number of crew to be provisioned for a round trip to Europe and for, say, five days in port.

4. U. S. Steamboat Inspection boat-inspection requirements for1 service in the war zone to be provided with davits and other boat equipment to meet law.

5. Accommodations for gun crew to be provided for, consisting of room in vicinity of officers’ quarters for lieutenant and an additional room for two gunners and further quarters for fifteen gun crew with berths, outfit, and furnishings similar to firemen’s or sailors’ quarters and the gun-crew quarters provided for as separate quarters for either sailor's or firemen.

6. Where practicable, a searchlight of 18" size to be installed. In cases, however, where searchlights of smaller size are already ordered or have been received, and it is not possible to obtain and substitute an 18" searchlight before the time of completion of the ship, the smaller-size searchlight to be installed as originally contemplated. In cases wheie no searchlight is contemplated, every effort on your part is to be exercised to obtain and install a searchlight.

7. U. S. inspection requirements for crew’s quarters, lifesaving equipment, etc., to be arranged for in cases of ships contracted for under foreign flags, as far as it is practicable to work same out without undue interference with the advanced stages of the work. In cases where it is not practicable to effect these changes you will please advise regarding the situation.

8. In cases of ships where the work has not advanced too far to make the change impracticable, for the purpose of lessening visibility the usual mast is to be dispensed with, twin arrangement low derrick posts to be fitted, arranged to hinge down or telescope. A light-built single mast to be fitted aft of smokestack, fitted with housing topmast which will carry the wireless. This must be for height of wireless for ships under 5,000 tons, approximately 80 feet, for ships 5,000 tons and over, approximately 95 feet above the deep-load line. To meet this requirement for wireless a light-built steel mast to house may be fitted on forward side of *135smokestack and stack reinforced. In cases with ships where machinery is placed aft, a separate mast with housing topmast to be fitted amidships or the housing extension pio-vided at derrick post.

9. In cases where forced draft is fitted to the boilers the smokestack is to be as low as consistent, and further consideration is to be given to the possibility of providing a telescope smokestack, in which case, a separate mast for wireless will be fitted.

10. War-paint colors will be used for the final painting of the vessels, including the color's for the superstructure, stack, masts, etc., to eliminate visibility to the greatest extent possible.

11. Accommodations to be provided for the two wireless operators, and in addition a separate adjoining room for operating the wireless. The corporation will supply and arrange for installing the wireless outfit. For' vessels under 5,000 tons dead-weight capacity a 1-kw. radio outfit will be used having a normal radius of 100 to 150 miles; vessels 5,000 tons and over, 2-kw. radio set having a normal radius of 800 to 400 miles.

12. *Gun foundations and magdsme and gea/i- for handling same.*— One gun forward and one gun aft-, unless otherwise directed. The procedure in this matter, unless later directed, is that you address a request to the Chief of Naval Operations, Navy Department, Washington, D. O., stating the name of the ship, yard, number, size, tonnage, and location. The Chief of Naval Operations then directs the nearest board of naval officers to examine the ship and report at once as to what caliber and number of guns it can carry. Copies of this report are then forwarded to the Bureau of Ordnance, which furnishes the guns, mounts, and accessories, together with ammunition, to the Bureau of Construction and Repair, which sees that the decks are properly strengthened to withstand the shock of the gun fire; and to the Bureau of Navigation, which provides the officers, petty officers, and seamen for the armed guard.

13. Bunker, oil, and store capacity for an 8,000-mile cruising radius at vessel’s designated speed and load.

In case of vessels originally for foreign owners, which were not intended to meet U. S. inspection requirements with respect to crew accommodations, life-saving equipment, and other matters, and which are nearing completion, and which are advanced to such an extent that it is not practical to make changes, these changes may be omitted when receiving advices from you as to the exact situation. In general, however, it is intended that these vessels, wherever practicable, shall pass the U. S. Steamboat Inspection rules and laws.

*136With regard to additional transverse bulkheads and extending up present bulkheads, this also is conditioned to the stage of the work in case of each individual vessel.

With regard to changing masts and fitting twin derrick posts, in cases where work on originally intended steel masts has been materially advanced, or where the making of these changes may delay progress of the work, the changes will not be made. You will please give information and explain the situation with respect to each individual vessel.

For the purpose that you may make arrangements and make investigations in cooperation with the corporation, the foregoing general requirements are desired, which will be supplemented in detail upon receipt of plans and specifications from you and by further communication or personal direction at your yard.

Very truly yours,

(Signed) W. L. Capes,

*General Mcmager.*

XII. On September I, 1911, Eads Johnson, district officer of the Fleet Corporation, sent to the Standard Shipbuilding Corporation the following letter:

September 7th, 1917.

STANDARD ShIPBTJILDING CORPORATION,

*Shooters Island, N. Y.*

Subject: Status of vessels commandeered.

Dear Sirs : In reply to your many communications relative to the status of vessels which have been commandeered, and that you are withholding orders necessary to fulfill requirements under commandeering act, I am instructed to inform you that no change will be made in method of requisitioning and' that the corporation requires you to proceed with the completion of these vessels in accordance with instructions already given without delay.

Respectfully,

*District Officer.*

On September 10, 1917, the Standard Shipbuilding Corporation sent the Emergency Fleet Corporation the following letter in reply:

New York, *September 10th, 1917.*

Eads Johnson, Esq.,

*District Officér, TJmted Spades Shipping Boa/rd Emergency Fleet Corporation, 115 Broadway, New York Gity.*

Dear Sir: We acknowledge receipt of your letter of the 7th instant.

*137We note what you say regarding the method of requisitioning vessels, and we will accordingly proceed without delay with the completion of these vessels following the instructions given. Of course, we must make this reservation, that unless we are paid a sum equal to the sums set out in the contract there will of necessity result a delay in construction. The responsibility of that, however, will rest with your principals, not with us.

We would respectfully request that you give consideration to the labor situation now pending. It has been stated in meetings of the old Shipping Board that in the event of any increase in the cost of labor this increase will be added to the price of the vessels as set out in the contracts.

Are we correct in assuming that if the Labor Adjustment Board now in session increases the cost of labor on any of these vessels that your board will add to the price of the vessels as determined in the contract the added cost of labor so fixed by such board?

Yours very truly,

STANDARD SHIPBUILDING CORPORATION,

Gabriel Juve, *First Vice President.*

"XIII. On October 16,1917, the Emergency Fleet Corporation and the Standard Shipbuilding Corporation entered into an agreement as follows:

United States Shipping Board

Emergency Fleet Corporation, 2nd District,

*115 Broadway, New York Oity, October 16, 1917.*

Standard Shipbuilding Corporation,

*44 Whitehall Street, New Yorh Oity.*

Gentlemen: Our representatives have examined your plant, have conferred with the representatives of the Guaranty Trust Company, the Equitable Trust Company, and the Columbia Trust Company in reference to amounts held by those companies in escrow guaranteeing the performance of your contracts with the parties who were the owners thereof prior to the issuance of the requisition order of August 3rd, 1917.

Under the arrangements evidenced by the letters which have heretofore passed between your company and our corporation, we agree to pay an amount equal to the total amount unpaid on your contracts with the former owners.

We have ascertained from an examination of these contracts that the total sum provided to be paid was $13,552,550. From your trial balance of September 29th, 1917, we ascertain that you have received payments on account of these contracts in the sum of $6,611,224.04. The difference between *138these two sums is $6,941,325.96. This total sum included, according to the statement of commissions which you have delivered to us, and which is dated September 25th, 1917, $170,988.80. This latter sum will be withheld from the total above stated, so that the total net amount to be paid to you will be $6,770,338. As to the commissions or brokerage charges, we request you to make no further payments, and we agree to hold you harmless from any loss occasioned to you by reason of such action. This, of course, is upon the understanding that you will deliver to us all process served upon you by any of the persons claiming such commissions, that you will provide us with full information relating thereto upon our request, and that you will take no action in connection therewith which will in any way change the present conditions of the brokerage arrangements.

Fuller arrangements relating to this brokerage are to be worked out between counsel for your company and our corporation to the end that the claims of these brokers may be properly resisted.

The total net sum above stated, $6,770,388, is to be paid to you in the following manner:

1. We are to make a deposit in a special account in the Columbia Trust Company, in New York, of $500,000 in the name and to the credit or your company.

2. Sums of money are to be withdrawn from this deposit and the other sums to be placed therein, by the checks of your company, signed in the usual manner, but upon condition that there is first obtained from M. C. S. Bookwalter, or his representative, and from their or his successors, on approval in writing, on a separate memorandum;' which memorandum, after such signature by our representative, will be forwarded to the trust company, and the trust company will be under instructions to pay no checks unless they have first received this memorandum of approval. Upon receipt by the trust company of such memorandum of approval, the trust company will be under instructions to pay the check in the usual course of business.

3. Such approval shall be given by our district officer, or his representative, upon submission to him of proper proof in the form of bill of lading for materials, or other appropriate voucher, showing that expenses have been incurred and are due to be paid in connection with the ships which have been ordered completed by our former orders. Such expenses shall include overhead expenses, but included in such overhead expense items there shall be included only the salaries to officers which are being paid at the present time.

*139It is not our intention in making this provision to limit the number of your employees, either laborers or men drawing higher salaries.

4. The corporation will, from time to time, place other funds to the' credit of this deposit, substantially a half million dollars.

5. It is understood that at this time steel for ship No. 14, to be built and not commandeered, is beginning to arrive at the yards, and payment therefor must be made in the ordinary course of business. Arrangements will be made hereafter between your company and our corporation, to the end that these payments shall be in a manner mutually agreeable to both parties financed!

It is our intention to consider promptly the question of placing orders with you for other ships, for which you have purchased certain portions of the material, and if mutually satisfactory arrangements can be made as to these, and the foregoing plan will be altered to suit the circumstances.

The corporation will, of course, consent to the payment out of said sums so to be deposited the amount of all taxes which your company is required to pay. It is understood that no dividends shall be paid prior to June 30th, 1918. The approval of payment of dividends will be conditioned upon your company showing that it will be financially able to complete the ships already ordered, upon receipt of the sum remaining unpaid on June 30th, 1918.

It is understood that nothing provided herein shall preclude your company from extending its yards either by the increase of machinery, by other additions to the yard, or in the way of additional land or additional slips.

Nothing herein contained shall be understood as limiting your company in the exercise of statutory rights in the way of increasing its capitalization either by increase of its stock or by the issue of bond.

Very truly yours,

Untied States Shipping BoaRd

EMERGENCY FLEET CORPORATION,

(Signed) By C. S. Bookwalter, *District Officer.*

Subject to approval of the general manager.

The foregoing plan is satisfactory to the officers of the Standard Shipbuilding Corporation, but subject to its ratification by its board of directors.

(Signed) J. Marimon,

*President Standard Shipbuilding Corporation.*

This letter was subsequently approved by the general manager of the Fleet Corporation and by a resolution of a *140board of Standard Shipbuilding Corproation at a meeting thereof on October 18, 1917. A copy of this resolution is filed in the record of this case as plaintiff’s Exhibit Q., and is made a part hereof by reference.

XIV. On December 3, 1917, the Fleet Corporation ordered the plaintiff in writing not to make any further payments under the said contract of July 21, 1916, to the Standard Shipbuilding Corporation, and after that date the plaintiff made no further payments.

XV. The Fleet Corporation released the Globe Indemnity Company under its bond for $222,500 issued July 28, 1916, in consideration of which the said Globe Indemnity Company endorsed and delivered to the Fleet Corporation the certificate of deposit for $133,500 which had been delivered to it by the Standard Shipbuilding Corporation as collateral security for the said bond. Thereafter, the Fleet Corporation delivered said certificates to the Shipping Board.

XVI. Prior to August 3, 1917, installments numbered one to ten had been paid by the plaintiff and its assignor, Rasmussen, to the Standard Shipbuilding Corporation, and the eleventh and last installment was not due until the ship was completed. The plaintiff was able and willing to pay the last installment when due.

XVII. On August 3, 1917, the Standard Shipbuilding Corporation had contracted with various private purchasers to construct 13 vessels of a standard type, each of approximately 7,300 dead-weight tons, included in which was *Hull No. 5*under contract on said date for the plaintiff. All of said vessels, including said *Hull No. 5,*were completed in accordance with the standard plans and specifications adopted by said shipyard for said vessels with the modifications and changes, so far as practicable, stated in the letter of August 16, 1917, set out in Finding XI, and other similar changes ordered from time to time prior to the date of completion thereof by the Fleet Corporation. In the construction of said *Hull No.*5, the materials in the yard of the said shipbuilder on August 3, 1917, were used, and the Fleet Corporation, in cooperation with other agencies of the United States, from time to time during the course of construction of said *Hull No. 5*and said other hulls caused additional ma*141terials suitable for such construction to be delivered to the shipbuilders, and such additional materials were used in the construction of *Hull No. 5*and of such other hulls. Said *Hull No. 5*was completed by the said shipbuilder and delivered to the Fleet Corporation, as an agency of the United States, and accepted by it on or about August 31, 1918.

XVIII. Said *Hull No. 5*was about 20 per cent complete on August 3,1917, and on that date the Standard Shipbuilding Corporation was able to complete the said *Hull No. 5.*It was completed in accordance, with the plans and specifications attached to and made a part of the contract with certain modifications and changes as set forth in Finding XI.

XIX. In accordance with the provisions of the act of June 15, 1917, the plaintiff filed its claim for the payment of just compensation with the United States Shipping Board Emergency Fleet Corporation for the property which had been requisitioned, as above stated in these findings. On August 1, 1922, the United States Shipping Board under authority conferred by the merchant marine act of 1920 (41 Stat. 988), awarded to the plaintiff as just compensation the-sum of $700,610.85. The plaintiff being dissatisfied with this award, refused to accept the same, and so notified the United States Shipping Board on October 3, 1922, and thereupon the United States paid the plaintiff 75 per cent of the said award, or $525,458.14.

XX. On and before August 3, 1917, and afterwards, the increased production. of ships foi the prosecution of the war was an urgent necessity.

In 1916 and 1917 contracts were made with American shipyards for construction of ships for citizens of the United States and citizens and subjects of other nations. Beginning early in 1916, and continuing, such contracts were the subject of sale and were frequently transferred from the original owner to assignees and by the first and later assignees to subsequent assignees. There was an active demand for such contracts. The market value of such contracts rose during this period. The time of greatest market activity in such assignments of contracts was in March and April, 1917.

*142Under the system of control of production and delivery of steel products in securing the materials for war purposes, ships and ship materials were given preference over everything except munitions. Prior to August 3, 1917, the market activity had not been destroyed by fear that the restriction on materials might prevent delivery of materials or by inability of the shipyards to complete deliveries. After the requisition order of August 3, 1917, the Government in many cases authorized materials alrea’dy ordered tó be delivered under orders already placed, with a view to prompt completion of such ships and cooperated w.ith purchasers of material by encouraging the delivery of materials for ship construction.

On October 12, 1917, all existing cargo ships of not less than 2,500 tons dead-weight and passenger steamers of not less than 2,500 gross tons were commandeered by the Shipping Board.

XXI. While the Standard Shipbuilding Corporation was engaged in the construction of the thirteen vessels it had agreed with divers parties to build and which were affected by the requisition order above set forth, the Emergency Fleet Corporation entered into a contract with said shipbuilder for the construction of ten additional steam cargo-carrying vessels of 7,433 tons dead-weight carrying capacity each, for the sum of $1,330,507 each, to be delivered at dates between January 15, 1919, and July 1, 1919. This contract, dated March 1, 1918, was known as No. 202. The cost of the construction of the said vessel *Hull No. 5*was $501,742.06 more than the contract price of $890,000. Included in this cost of the vessel was the sum of $258,968.54 as overhead expense. What comprises this overhead is not shown. In its settlement with the shipbuilder for the cost of the construction of the vessel, the Fleet Corporation took credit for the sum of $815,833.29, paid by plaintiff and its assignor to the shipbuilder prior to August 3, 1917.

Just compensation to the plaintiff for its rights and contract which were expropriated by. the Government, being the sum that will put it in as good position pecuniarily as it would have been in if its property had not been taken, arid *143fixed as of the date of the taking, August 3, 1917, is the sum of $957,130 with interest, and shown as follows:

Just compensation as of August 3, 1917- $957,130.00

Interest thereon at 6 per cent per annum from August 3, 1917, to October 3, 1922_ 296, 710. 30

Total_ 1,253, 840.30

Less 75 per cent of award October 3, 1922- 525,458.14

Balance_ 728, 382.16

Interest on this balance at 6 per cent per annum from October 3, 1922, to February 14, 1927_ 190, 714.73

Total_919, 096. 89

In addition to the principal sum mentioned in Finding XXI and interest thereon to date of judgment the court allowed a,s part of just compensation interest on the principal sum from date of judgment until paid.

1

 Certiorari denied.

Campbell, *Chief Justice,*

delivered the opinion of the court:

This case is one of a group of cases in which compensation is sought for the value of property and property rights expropriated by the Government. There were eight distinct cases referred to a commissioner of the court for reports of facts. One of these was the cajse of *Brooks-Scanlon Corporation,*after the judgment of this court had been reversed by the Supreme Court. (265 U. S. 106.) Generally speaking, the testimony taken in the several cases is made to apply to all of them. After the reference to the commissioner and after all of the testimony had been completed the Government and two plaintiffs agreed upon the settlement of two of the cases. No report upon these was made by the commissioner, nor does it appear upon what terms the settlements were made. They were cases of French nationals — corporations created and existing under- the laws of France. In the instant case one of the first questions presented for decision is whether the plaintiff can maintain its suit in this court, the statute (section 155, Judicial Code) providing that aliens who are citizens of a government which accords to citizens of the United States the right to prosecute claims *144against .such government in its courts shall have the privilege of prosecuting claims in this court. We think it settled that citizens ,of the United States may prosecute claims against the French Republic in its courts. (See *Dauphin case,*6 C. Cls. 221; *Société*Anonyme, *etc.,*case, 43 C. Cls. 25.) This view renders it unnecessary to consider the effect upon the right to sue of the statute authorizing a party whose property has been taken and who is dissatisfied with the award made by the designated tribunal to accept seventy-five per cent of the award and sue in the Court of Claims for additional compensation.

The facts show that one Rasmussen, a citizen of Norway, entered into a contract with the Standard Shipbuilding Corporation for the construction of a steel cargo steamship of approximately 7,300 tons dead-weight capacity for the agreed price of $121.91 per ton payable in stipulated installments aggregating, with some agreed changes, $890,000. After having paid eight installments of the purchase price, amounting to $667,499.96, Rasmussen sold and assigned this contract to the plaintiff for the price of $1,376,050, being at the rate of $188.50 per dead-weight ton.' The plaintiff repaid the original owner the eight installments he had paid to the shipbuilder, assumed the three unpaid installments of purchase price, and paid to Rasmussen the balance of the agreed price for the contract. This was in February, 1917. The plaintiff subsequently paid the builder the two installments due upon the contract. It follows that prior to August, 1917, plaintiff had expended on account of its purchase the total pum of $1,301,883.33 and was bound to pay the last installment of the contract price upon delivery of the vessel, $74,166.66. Of these payments the sum of approximately $815,000 was paid to the builder and $486,000 to the original owner of the contract as his profit. By the terms of the contract all of the property purchased for the vessel’s construction and the vessel as it progressed in building became plaintiff’s property. The contract provided that the builder would give a bond for the faithful performance of the contract. Such a bond was given, and in order to secure the making of the bond the builder turned over to an insurance company the sum of $133,500 out of the moneys which had been paid by the plain*145tiff or its immediate assignor. The plaintiff had therefore paid the $815,000 on the contract; it had a bond in the sum of $222,500 for the faithful performance of the contract by the builder, and the ship was on the ways with a large amount of material for it on hand when the requisition order was issued on August 3, 1917. The requisition order is set forth in the findings. It is the same as is mentioned in the *Brooks-Scanlon case.*

In its letter of August 28, 1917, the Fleet Corporation assured the owner of its intention to make reimbursement promptly for payments made by the owner to the builder. In the agreement of October 16 between the Fleet Corporation and the builder it agreed to. pay the latter “ an amount equal to the total amount unpaid on your contracts with the former owners,” and on December 3, 1917, in answer to the plaintiff’s inquiry whether it should make any further payment to the builder, the Fleet Corporation ordered it not to do so. In the letter of August 28 to its district agent, a copy of which, together with other papers, was transmitted to plaintiff, it was declared to be “ the expectation of the corporation to carry out the substance and purpose of the contract.” The vessel was built in accordance with the original contract plans and specifications, with some minor changes.

The facts are not materially different from those discussed in the *Brooks-Scanlon case,*265 U. S. 106, so far as the effect of the requisition order and the fact of the expropriation of the contract are concerned. It is said in this case (p. 120), “ By its orders, the Fleet Corporation put itself in the shoes of claimant and took from claimant and appropriated to the use of the United States all the rights and advantages that an assignee of the contract would have had. The credit for, and advantages under the contract resulting from, payment of $419,500 made by claimant to builder were taken. The use of the plans and specifications for the construction of the ship, as well as the benefit of inspection prior to the requisition date, August 3, 1917, were also taken over. The contract was not terminated. The direct and immediate result of the requisition order and acts of the Fleet Corpora*146tion were to take from claimant its contract and its rights thereunder.” This language is applicable to the instant case, but instead of $419,500 in the quotation there should be read in the instant case $815,833.29 paid by plaintiff for which the Fleet Corporation took credit in its settlement with the builder.

The question is, What sum will be just compensation for the expropriation of the plaintiff’s contract and its rights? It should be such a sum as will put the owner “ in as good a condition pecuniarily as it would have been in if its property had not been taken.” *(Brooks-Scanlon case,*p. 126.) That the contract was valuable there can be no question. The opinion in the *Brooks-Scanlon case*mentions and refers to elements which much be taken into consideration in determining the compensation, and, manifestly, a contract for the construction of a vessel that was well under way toward completion — that was on the ways and being built — is more valuable than a contract for a vessel whose construction was not begun when the taking occurred. Ships were urgently needed, and this fact gave added value to contracts for them. The plaintiff is entitled to just compensation as of August 3, 1911. In the award offered by the Shipping Board acting under authority of the merchant marine act of 1920 (41 Stat. 988), the plaintiff was allowed $700,610.85, of which it elected to accept 75 per cent and to sue for additional compensation. This award took no note .of the delay between August 3, 1917, and the date of the award in 1922. It apparently overlooked the fact that the Shipping Board had received from the Fleet Corporation $133,500 which the latter had in turn received from the insurance company, being the amount deposited by the builder to secure the bond to plaintiff for the faithful performance of the contract. In any event, the board awarded less than the sum which the Fleet Corporation debited to the builder in their settlement on account of payments made by the owner. The award was too small. After giving consideration to the facts of this case and to the rule prescribed in the *Brooks-Scanlon ca*se, the court’s conclusion is that just compensation to the plaintiff, as of August 3, 1917, is $957,130.00. To this should be added an additional sum, because compensation *147was not made when it was due to be made, the rule being that where the taking precedes payment of just compensation “ the owner is entitled to such addition to the value at the time of the taking as will produce the full equivalent of such value paid contemporaneously. Interest at a proper rate is a good measure of the amount to be added.” (Brooks-*Scanlon case*(p. 123); *Luckenbach Steamship Co.,*No. 33962, decided by the Supreme Court November 23, 1926, 272 U. S. 533.) This item of interest makes a noticeable difference in the amount of the judgment. After making proper deduction for the 75 per cent of its award paid by the Shipping Board October 3,1922, there is due to plaintiff principal with interest to the date of the judgment, $919,096.89, for which it is entitled to judgment. And it is so ordered.

Moss, *Judge;*Graham, *Judge;*Hay, *Judge;*and Booth, Judge, concur.