The Washington herald., 1918-08-24
DOLLAR ASKING
NOCOMMISSION
Chinese Shipbuilding Con-
tract for U. S. Described
by Holland.

When the details Of the con-
tract between the United States and
China for the construction Of ships
In Chinese shipyards were completed.
Chairman Hurley. speaking infor-
rnaliy ana intimating that he was in
epired by curiosity, asked the repre-
sentative Of the Robert Dollar cor
poration what commission or bonus
or other payment this corporation
10 70 receive for its services In
bringing the United States and
China together IN this matter.
The representative OF the Dollar
corporation replied instantly, say
ing: Not one cent. either In the
form Of commission. bonus or in
any indirect way. win the corpora
ton receive for its services"
Whereupon Mr.. Hurley asked II
there would be any objection to
putting that statement In the form
Of o letter. There was no objec-
ton. And the statement was In
corporated into the body of the con-
tract.
Yet the contract may involve the
payment by the United States to
China OF perhaps a. much a. t74.-
600. 900. The contract IL now signed
and IL binding upon both nations.
The Emergency Fleet Corporation,
which r. the incorporated body that
represents the United States gov
eminent in this transaction. is the
American party to the contract
Soon ss Steel Goes.
As soon as the needed supplies Of
steel can be procured and trans
ported across the Pacific. work upon
these ships will begin In the
Chinese government shipyards at
Shanghai The ships are to aver
age 10000 tons. Within ten months
81 IL expected that the first four
will be completed. The government
has an option which II exercised
viii be followed by the construc-
tion Of eight more steel vessels Of
10000 tons each.
Already the Dollar corporation Is
buying needed steel and Is prepar-
ing to ship IL across the Pacific. so
that II may be utilized for the con-
struction Of these ships. The actual
work OF shipbuilding will begin late
In the fan.
Before the United States entered
into the war. British interests in
China were persuaded there might
be constructed in the great ship
yards at Hong Kong and perhaps
at Shanghai ships for England. for
u was known that at that time Great
Britain was In desperate need Of
ships. But II was found to be an
impracticable proposition. The dan
ger Of transporting material and sup
plies from England by way Of the
Mediterranean and the Suez Canal
to Hong Kong or Shanghai was re-
garded as too great to make It prac-
ticabie to undertake ship construc-
tion for Great Britain in the Chi
nese shipyards.
China As an Ally.
Until the United States entered the
war, the Chinese government endeav-
ored to maintain the position of q
neutral But upon the day that Con-
gress declared war against Germany.
the Chinese government also declared
war, and China was for that reason
ready to listen to a proposition in
yolving the construction by China Of
ships for the United States.
The proposition was made by Ameri-
can interests and there were COM
munications with the government at
Washington. II was learned that our
own government would look with IA
yor upon any reasonable proposition
involving the construction by China
s. Of ships for the United States.
At the first II was suggested that
q commission be sent to China from
the United States in order to facili-
tate the proposition, but after care
full consideration It was deemed the
better part to place the responsibility
upon an Individual. and a British sub
iect who has been for thirty years
resident Of Shanghai and who has
secured and maintained the confidence
of the Chinese government was asked
to accept the responsibility. With
some reluctance he did and he ar
rived In the United States some
weeks ago. As the representative
OF China he signed the contract.
There arose also the question in
volving the choice of the inter-
mediary. who. acting both for
China and the United States. and
having authority over the ship
building project in China, would be
able to see to IL that the contract
in all its details was executed.
Robert Dollar Corpsration.
To both China and the United
States the suggestion that this in
tsrmediary or mutual agent, so to
speak, should be the Robert Dollar
corporation was more than salts
factory. This corporation has long
maintained important trade rela-
tions with China and has operated
important steamship lines. It has
gained perfect confidence among
the Chinese. for its dealings have
been scrupulously honorable.
Moreover. the corporation is IA
miliar with trade. shipping and
manufacturing interests in China
and also with ship-building and
steamship navigation, II being the
leading corporation upon the Pa
cihc coast engaged in this Industry.
This corporation consented to act
as the agent, overseer or super
visor. seeing TO Il that abundant
supplies Of steel and other material
were procured In the United States.
adequate transportation furnished,
and the work OF constructing the
ships in China carried on with the
efficiency and speed which charac-
terize American ship construction.
The government is to buy these
ships from China and win advance
the money necessary to aid China
in the construction of them. II the
twelve ships which under the terms
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 s24.ooo,ooo.
No CommissIon.