The Washington herald., 1920-09-05
TREASURY SEIZES
$4,900,0 900 IN CASH
IN BIG SHIP DEAL
CoNTINUED FROM PAGE ONE.

tbNllNl L I'D rhOh IAbE ONE.
alton" while we are yet technically
at war with Germany, with a CON
Germ proYed guilty of wholesale
espionage and violat. ons Of AmeI-
lean neutrality prior to the United
states entry into the war. Criti-
Cism has not been allayed by the
announcement that n parallel deal
is shortly to be effected with the
other big German line. the North
German Lloyd OF Bremen.
Would Cover German Routes.
The professed purpose Of the
working agreements with the
Hamburg American Line is to place
ships of American registry. mainly
United States shipping Board ves-
sells, on all the former trade routes
of the German company. American
vessels, it was pointed out. would
thus be able to invade the carrying
trade of the world. equipped with
the full "faCilitie," good will, con-
the full "faCilities,' good Will, con-
cern which until 1914 was the pre-
mier steamship company Of the
world"
The American Ship and Commerce
Corporation is a holding company
I.
Sons Ship and Engine Building Com
pany of Philadelphia and the Kerr
Navigation Corporation Of New
York. Until June of this year the
president of the company was Maj.
Gen. George W. Goethals, but he was
at that time succeeded by w. AveriH
Hartman, of W. A. Hartman & Co.
Inc The secretary and assistant
/ treasurer of the American Ship and
Commerce Corporation is Kermit
Roosevelt, son of the late President
| Roosevelt, and one of the members
of the executive committee is Par
mely Herrick. son Of former Gov.
Myron T. Herrick. of Ohio.
Austrian Vessels Acquired.
Among the assets of the Kerr
Navigation Corporation. which the
Hartman group acquired. were
eight former Austrian vessels aE-
gregating total of 5O.9lj dead
weight tons. These ships were ac-
quired by H. Farquahar Kerr in
June, 1917. at the instigatiOn OF
William Denmsn, of California,
shortly before the Iatters resigna-
tiOn as chairman of the United States
| Shipping Board. Denman represent
cd to Kerr that it was very desir-
able to secure these ships for the
American flag, and they were ac-
Qured at the average cost of S2l3
| per ton within a few hours after
Denman informed Kerr that they
| were available.
! In September, 1917. the Kerr
| concern got wind of a chance to
| purchase three more enemy ships
and an arrangement was effected
with the Shipping Board for their
acquisition. The purchase in
creased the total holdings of the
| Kerr Navigation Corporation to -.
| COS dead-weiEht tons. In the
| spring of 1920, the corporation en-
| tered a bid of $4,000 600 for the
| steamship George Washington and
| Ave other ex-German liners, by ac-
! tion of the Shipping Board the ships
were withdrawn from sale. The
American Ship and Commerce Cor
| poratiOn was early in 1920 also ne
gotiating for purchase of &c or 2S
| former German vessels interned in
Brazilian waters. They aggregated
! 100000 tons and a consideration of
J $35,000.0O0 was involved. The Brazil
| ian negotiations We're handled by
I Chandler & Co. bankers, of New
York. who are associated with the
tldTElmduS Ill the Snlp * commerce
Corporation. p NJ. Chandler is one
of the executive committee of the
corporation.
Investigated Previously.
The Ker~ concern was under the
observation of the United States au-
thorities on n previous occasion.
| Six months after we entered the
war its origin, organization and
ownership were eXhaustively looked
into with a view to determining
whether or not the company should
be placed under the supervision of
the Alien Property Custodian. No
such action eventually was taken.
but the investigation revealed in
! teresting things. 1T turned out that
| the founder of the concern. Y
Farquahar Kerr, was a British sub
! iect born in Jamaica in 1874. In
| February. 1916, Kerr associated with
himself another Englisaman, A. e.
Clegg, OF Liverpool. and formed the
| Kerr Steamship Line, (which pro-
ceeded to engage in cargo operations
| with allied ports and with ports in
! Spain and Norway.
N lima 1917 he