Every evening, Wilmington daily commercial., 1920-02-21
SEIZED SHIPS ARE
PROPERTY OF j. S.;
PRESIDENT SHOWS
Wilson Also Denies Any Under
standing With Great Britain
for Sale of Steamers.
SHOWS TENTATIVE PLAN

Washington, FEB. Z.-fieSiueue VII
son fatty denied Yesterday IN formal
communication to the Senate that ne
had any agreement or understanding with
British officials regarding disposition Of the
fleet of former German liners around which,
since they were offered for sale by the
shipping Board, has ragged controversy
into which Congress. courts and Govern
ment agencies have been drawn.
There is not nor has there been any
agreement or understanding between
the President Of the United States and
officials of Great Britain concerning the
sale of the former German vessels in pos
session Of the United States" MIR. Will
son said, responding specifically to n
resolution by Senator Brandegce, Re-
publican, Connecticut, adopted by the
Senate, ''nor is there any agreement or
understanding with respect to what dis
position shall bc made of those ships by
the United States"
SENDS TENTATIVE AcREEMtNr.
At the same time, however. and "in
order that the Senate may be in posses
SION Of all the information there is in
any way relating to the vessels in oues-
ton" the President transmitted copy
of q hitherto unpublished tentative
agreement reached in Paris that Ger
many eventually would be credited be-
fore the reparations commission, should
Congress approve, with any surplus val
uatlon of the ships in excess of merchant
tonnage losses of the United States dur
ing the war. In no case would title to
the ships themselves pass from the Unit
cd States, the agreement provided.
Before Mr.. Wilson's message reached
the Senate the Commerce Committee had
decided TO recommend passage of the bill
II,
Republican, Washington, deferring sale
If the ships until they shall have been
reftted for commercial service by the
shipping Board and Congress shall have
laid down q national shipping policy.
HOUSE OPENS INQUIRY.
The House Merchant Marine com
mittee embarked on an independent in
quiry. with Chairman John Barton Payne
and Nice-Chairman Stevens, of the Ship
ping Board. rpiterating their divergent
views on the advisability of present sale
of the vessels. Chairman Payne said
President Wilson had approved formally
the boards decision to sell the vessels,
writing "action of the board approved
on copy of the resolution referred to him.
Navy officials had appraised the 30
ships at substantially less" than the
sealed bids of S20, ,OO0, 900 received for the
Leviathan and 20 other ships Of the feet,
Mr.. Payne said. An appraisal by navy
officials on 10 ships, including the Levia-
than he added, was approximately $40
oo0. 900
AGREEMENT SIGNED LAST MAY.
The proposed agreement transmitted
l,v the President was signed in May, 1919,
hv Premier Lloyd George and Mr.. Wilson
The Presidents signature, however, was
made conditional on an appended Sex
planation" that IL was subject TO the ap-
proval of Congress. In transmitting the |
document, the President said he had in
tended to send IL TO the Senate after ratifi- |
cation of the peace treaty
The agreement covered all vessels cap
tured, seized or detained by any of the
allied or associated governments.
Officials recalled that it was drawn up
after a controversy between Premier
LLOYD George and Mr.. Wilson, in which
the British proposal that all captured,
seized or ceded enemy ships be pooled and
reallotted on the basis of. tonnage losses
was opposed by the President. the result
ing tentative understanding being made
public today for the first time, although
its general purport has been known.
SEIZED SHIPS BELONG TO U. S.
The document confirms five clauses
and the essence of its application to the
20 ships involved in tho present contro-
versy lies in paragraphs 2 and q. The
first provided that all enemy craft cap
tured, seized or detained" before the |
arrnistice SIS war measure shall be re- !
taIned by the holding power, which will |
own the same free from any claim of any
Allied or associated government" The /
fourth section provides that where the /
4 -o1, - ,4as.
cally in the case of Brazil, China, Cuba. I
Siam and the United States, exceeds the /
value of tonnage lost during the wsr, a /
reasonable value for such excess shall be /
determined snd that amount paid bv |
the holder state to the Reparatlon Com /
mission, 'for the credit of Germany toward /
the sums due from her for reparation In ,
respect TO war losses of merchant ships"
How American payments into the
Allied pool would be computed under
the proposed agreement should losses sus-
tanned by the United States be less than
the value of German tonnage taken over
during the war was explained by Chairman
PAYNE.
At the direction of the President an
appraisal of the vessels was made bv the |
Sccretary of the Navy when they were
taken over IN June, 1917. According to /
published reports the navys appraisal /
of % vessels. aggregating $4,000 gross |
tons, was S34, 1873, 100 This appraisal, |
the chairman said, took into account the /
damage done to the ships by their crews |
before relinquishing them and represents 1
their vslne for he purposes of the proposed /
agreement.
We take the ships absolutely, title I
free, Chairman Payne stated, land when /
we come TO settle with Germany we put |
IL the common pool the difference between |
our losses and the appraised value of |
the ships"