The Birmingham age-herald., 1920-02-21
 NO AGREEMENT WITH BRITAIN ON GERMAN SHIPS, SAYS WILSON
Continued from Page one)


 by eight bidders as earnest money on bids for the passenger ships were re- turned to them today.
 AGREEMENT SIGNED LAST. MAY
 The proposed agreement transmitted by the President was signed in May, 1919, by Premier Lloyd George and Mir. Wilson. The Prpjdent's signature, however was made conditional on an appended ''expalnation" that it was subject to the approval of Congress. In transmitting the document the President said he had intended to send it to the Senate after ratification of the peace treaty.
 The agreement covered all vessels. captured. seized or detained by any of the allied or associated governments. Officials recalled that it was drawn up after controversy between Premier Lloyd George and Mr. Wilson in which the British proposal that all captured, seized or ceded enemy ships be re- allotted on the basis of tonnage losses was opposed by the president, the re- sulting tentative understanding being made public today for the first time, although its general purport has been known.
 CONTAINS FIVE CLAUSES
 The document contains five clauses and the essence of it's application to the thirty ships involved in the present controversy lies in paragraphs 3 and 1. The first provides that all enemy craft captured, seized or detained'' before the arnfistice as war measure shall be retained by the holding power which will own the same free from any claim of, any allied or associated govern ment."
 The fourth section provides that where the valuation of such retained tonnage, specifically in the case of Bra zil China, Cuba, Siam and the United States, exceeds the value of tonnage lost during the war reasonable value for such excess shall be determined and that amount paid by the holder state to the reparations commission for the credit of Germany towards the sums due from her for reparation. in respect to war losses of merchant ships"
 How American payments into the al- lied "poor' would be computed under the proposed agreement should losses sustained by the United States be less than the value of German tonnage ta- ken over during the war was explained by Chairman Payne.
 At the direction of the president, an appraisal of the vessels was made by the secretary of the navy when they were taken over in June, 1917. Ac- cording to published reports the navys appraisal of S5 vessels aggregating 6S0,O00 gross tons was sS4.1sS,1so. This appraisal, the chairman said, took into account the damage done to the ships by their crews before relinquishing the mand represents their value for the purposes of the proposed agree ment.
 Ns We take the ships absolutely, title free" Chairman Payne stated, "and when we come to settle with Germany we put in the common pool the dif- ference between our losses and the appraised value of the ships"
 PRESIDENTS MESSAGE
 The presidents message to the sen- ate follows:
 T have the honor to acknowledge the receipt of a resolution passed by the Senate on February If, requesting the president to inform that body whether any. and if so, what agreement or understanding exists between him and officials of Great Britain con- corning the disposition b ythe United States of America of the German ships which the shipping board is proposing to sell, or which were acquired by the United States after the termination of
 
 and the Central European Teutonic powers"
 "The ships for the purchase of which bids have been asked by the shipping board were taken over by executive orders issued pursuant to the joint reso- iution of Congress of May F, 1917. author izing the President to take over for the ernment of the United States is not in possession of any ex-German vessels OK cept those taken over under this resolu- ton. Under an armistice agreement be- tween the German government and the allied and associated powers, certain Ger man vessels were taken over primarily for the transport of food to Europe, in- cluding Germany, and for the transporta- ton of troops.
 TEMPORARY RELOCATION
 "Of the tonnage so taken over certain passenger vessels were allocated to the United States the possession and titles of any vessel within it's Jurisdiction, under enemy ownership, or under the registry of enemy country The gov United States temporarily for the purpose of repatria ting American soldiers. When the transportation of our troops was com pIeted these vessels were all surrendered