Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-04-25
DANIELS CANCELS
BOAT CONTRACT
Secretary of Navy "Astonished"
at Old Dominion Statement
as to Pocahontas.
WILL RESUME RIVER SERVICE
That Ships Were Not Rcquisi-
toned Navigation Company
Admits-Rented at Profit.

State Corporation Commission and the
Virginia Navigation Company. a sub.
sid'ary Of the Old Dominion Steamship
Company. over tho James River day
service. Two highly interesting con-
fcrcnces Monday. one held in Richmo ond
and the other in Washington. were
followed yesterday afternoon by a long
distance telephone message from Wal
ter H. Taylor. OF Norfolk counsel for
the navigation company. informing
Chairman Garnett. Of the Corporation
Commission. that the complete day SER
vice would be restored tomorrow
morning.
The capitulation Of The company
which. without notice to tho commits
sion. discontinued tho sailinss OF the
steamers Pocahontas and Slnithfield on
April Is. claiming that they had aecn
rcauisitioned by the government. was
not accomplished. however. until the
Secretary of tho Navy himself took a
hand by tclesraphinE tho Virginia
Navigation Company as follows:
The State Corporation Commission
Of Virginia having informed the Navy
department. that tho chartcring Of tho
steamers pocahontas and Smithneli
very much interfereE with the bust
ness of the community served tho Navy
Department exercises it's privilege un-
der the contract and Will cancel i'm
mediately the contracts entered into
for the steamers Pocahontas and Smith
field unless the State Corporation Com
mission of Virginia will give their ap-
proNal for the leasing or ChartcrinE
OF these steamers"
Secretary Daniels dispatched this
telegram following conference with
Senator Claude A. Swanson. Judge W.
+. Rhea. Of the state Corporation Com
mission, and Admiral Benson.
Chairman Garnctt had brought the
matter to Senator Swa..son's attention
last Friday, and the latter had been
TO the Navy Department several times
TO press the commissions complai int
The whole matter was laid before
Secretary Daniels and Admiral Benson
Monday b. Judge Rhca and Senator
Swanson. and the order cancellinE the
governments contract for the two
steamers followed.
While the controversy over tho
James River day service seems now 10
be adjusted. dissatisfaction still exists
with respect TO the service on the East.
North Ware and Severn Rivers rem
dcred by the Old Dominion Steamship
Company. Recently this company con-
verted Its daily service to landing on
these rivers into a triweckly service.
and complaints followed promptly
An order was entered yesterday by
the State Corporation Commission
citing tho Old dominion Steamship
Company to appear before il on May
10. to show cause VIII il should not
tc made TO re-establish tho old daily
service. The Virginia Navigation Com
rany is owned by the Old Dominion
Steamship Company.
CONTROLLING; STOCK
OWNED By RAILROADS
The controlling stock in tho Old Do
minion. according to recent report
Of the Interstate Commerce Commits
sion. is held by the Seaboard Air Line
Atlantic Coast Line. Norfolk and
Western, Southern and Chesapeake and
Ohio Railways. These railway corn
panies. it is stated. own SIS per cent OF
the voting stock
The notice published by the Virginia
Navigation Company on April "A de-
clared that tie two steamers had been
requistioncd by the government Ac-
cordins TO the Navy Department. no
such requisition had taken place. The
department., il was stated. merely in
vited bids At large, and tho Virginia
Naviga ton Company voluntarily offered
TO place the two steamers in the gov
ernments service, tho offer being ac-
cepted by Paymaster T. II. Hicks. Of
the Norfolk NaryYard Under the
contract. the Virginia Navigation Com
pany was TO receive approx imately $500
day for the two steamers. the agree
ment calling for r somewhat lower rate
should the steamers remain in the Fed
eral service more than sixty days
When confronted at the conference
in Richmond Monday with the mis-
leading character OF the navigation
company's notice. declaring that the
steamers had been ''requisitioned"
representatives OF the company e1-
planned that the word "reuuisitioned"
had not been used in it's technical sense
The company understood. counsel said
that the steamers were chartered by the
government as the result OF the war
emergency. and the word "reouisi-
toned" was used to convey that idea.
EXPRESS AsTONISHMENT AT
COMPANY'S STATEMENT
when the attention OF Secretary
Daniels and Admiral Benson was di-
rected to the wording OF the navi6a-
tton companys notice, they expressed
astonishment, assuring Judge Rhca and
Senator Swanson that the government
has no intention Of communicating
vessels engaged in performing neces-
sary transportation service on the in
land waterways. unless driven to such
course by imperative necessity. In
this case. they said, there had never
been reQuisition. The contract for
the steamers was signed without any
knowledge on the part OF the Navy De-
partment OF the. injury that would he
worked TO the James River points de-
pendent upon these steamers for trans
portation.
Investigations instituted by Chairman n
Garnett developed the fact that the
contract for the Pocahontas was made
ION April 6. and the contract for the
Smthfield on April 13. On April the
Virginia Navigation Company appeared
by counsel before the State Corpora
ton Commission with the. complaint
that it's James River rates were non
Continued on Second Pagc)