The Birmingham age-herald., 1918-08-24
SHIP CONTRACT
 MADE WITH CHINA
By HOLLAND


 l were completed, Chairman Hurley. speak, ing informally and intimating that he was inspired by curiosity, asked the rep resentatiye of the Robert Dollar corpora uon what commission or bonus or other l payment this corporation is to receive ] Tor It's services in bringing the United etates and China together in this matter.
 me representative of the Dollar corpor- atlon replied instantly, saying: Not one cent either in the form of commission, bonus or in any indirect way, will the corporation receive for it's services" Whereupon MT. Hurley asked if there would be any objection to putting that statement in the form of a letter There was no objection. And the statement was incorporated into the body of the con- l tract
 | Ter the contract may involve the pay 1 ment by the United States to China of perhaps as much as s24,0O0,0oo The con- tract is now signed and is binding upon l both nations. The Emergency Fleet cor 1 poration, which is the incorporated body that represents the United States gov 1 erllment in this transaction, is the Aneri- caii party to the contract.
 AS soon as the needed supplies of steel | can be secured and transported across the Pacific, the work upon these ships Will begin in the Chinese government shipyards at Shanghai. The ships the to average 10000 tons in capacity. With l in 10 months it is expected that the hrst four will be completed. The gov efHment has an option which if exercised will be followed by the construction of eight more steel vessels of a capacity Of l 10000 tons each.
 Already the Dollar corporation is buy Ing needed steel and is preparing to ship l it across the Pacific so that it may be utilized for the construction of these sh.rs. The actual work of shipbuiding l will begin late in the fall
 Before the United States entered into the war British interest in China were 1 persuaded that there might be construct ed in the great shipyards at Hong Kong and perhaps at Shanghai ships for Eng | land, for it was known that at~that time Great Britain was in desperate need of ships. But 1t was found to be an inn 1 practicable proposition. The danger of transporting material and supplies from |, England by way of the Mediterranean and the Suez canal to Hong Kong or Shanghai was regarded as too great to make it practicable to undertake ship construction for Great Britain in the Chinese shipyards.
 CHINA AS AN ALLY
 | Until the United States entered the war the Chinese government endeavored | thoroughly well to maintain the position of a neutral But upon the day that Congress declared war against Germany the Chinese government also declared | war and China was for that reason ready to listen to a proposition involving the construction by China of ships for the | United States. The proposition was made | by American interests and there were communications with the government at Washington. It was learned that our own government would look with favor upon any reasonable proposition involv- ing the construction by China of ships for the United States.
 At first it was suggested that com mission be sent to China from the United States in order to facilitate the propo- sition. But after careful consideration it was deemed the better part to place the responsibility upon an individual and l a British subject who has secured and maintained the confidence of the Chinese government was asked to accept the re- sponsibility. With some reluctance he did and he arrived in the United States some weeks ago. As the representative of l China he signed the contract.
 There arose also the question involv- ing the choice of the intermediary who acting both for China and the United States, and having authority over the shipbuilding project in China, would be able to see to it that the contract in all it's details was thoroughly executed.
 ROBERT DOLLAR CORPORATION To both China and the United States the suggestion that this Intermediary or mutual agent, so to speak, should be taa Robert Dollar corporation was more than satisfactory. This corporation has long maintained important trade relations with China and has operated important steam ship lines It has gained perfect confi- dence among the Chinese, for it's dealings "a p1clxy lover, the corporation is familiar with trade, shipping and manufacturing in terests in China and also with shipbuild- ing and steamship navigation, it being the leading corporation upon the Pacific coast engaged in this industry. | This corporation consented to act as the agent, overseer or supervisor, seeing to it that abundant supplies of steel and other material were secured in the United States, adequate transportation furnished, and the work of constructing the ships in China carried on with the efficiency and speed which characterize American ship construction.
 The government is to buy these ships from China and will advance the 1f1or1- ey necessary in order to aid China in the construction of them. If the twelve ships which under the term of the contract may be constructed in Shanghai yards are completed and turned over to the United States the total cost will be in the neighborhood of $24,0C00O0. The Rob- ert Dollar corporation might reasonably expect some commission for its services but it is the purpose of Captain Dollar, who is the head of the corporation, to aid in every way in ship construction and to facilitate as far as possible the maintainence and increase of cordial re- lations between China and the United
 States. For that reason 1t was decided
 that no charge in the way of commission
 or bonuses or by any other method
 should be made for this service. The
 contract is so carefully drawn that there
 will be no opportunity, even if there were
 any desire, for anything like profiteerins
 associated with the construction of these ships. It has been the common presump- tion that the loan of $50,O000O0, which is to be made to China, is to be utilized
 in part for the payment of these ships That. however, is nok the fact. The loar
 stands apart and is designed for other
 purposes. The government itself through
 the Emergency Fleet corporation is te
 pay. the $24,OOO,O0O, or as much of that as may be needed for these Chinese built steel steamships.
 T. IL IT \