New-York tribune., 1920-03-07
Dstails of Agreement En-
tered Into With Ship
ping Board Last Decem-
Der Given The Tribune
Purchase Hinged
On Federal Action
Compensation To Be Re-
ceiyedFrom ALLEGATION
by u. S. Not Revealed

It was learned yesterday that the
United States Shipping Board and
The International Mercantile Marine
entered into an agreement last De-
cember by which the company is
piven the right to operate the liner
Leviathan for five years from the
date repairs are completed. The
agreement, signed by P. A. S. Frank
lin for the International Mercantile
Marine, gives the company an option
to purchase the vessel should the
government decide to sell it. In the
language of the Shipping Board, the
ship has been allocated to the Inter-
national Mercantile Marine for
management and operation"
These facts, and others, are to be
revealed soon by Shipping Board Of
ficials before the Senate committee
now considering the future of the
German ships allocated to the United
States. The information was OBJ
tanned by The Tribune yesterday
from an official of the United States
Shipping Board. The Senate COM
mittee is particularly interested in
the Shipping Boards plans for the
former German liner Vaterland.
Provisions of Agreement
Mr.. Franklin's operating agree
ment, it was learned, contains a
clause that provides that the Inter-
national Mercantile Marine compen-
sation while operating the Leviathan
shall be mutually agreed upon" by
Mr. Efanklin's company and the gov
ernment board The clause granting
an option to purchase the Leviathan,
lt was learned, provides that, in the
event of decision to self the Ship
ping Board shall ask for sealed bids,
and when these bids have been
opened, if the International Mercan-
tile Marine should have been outbid,
this organization shall have the right
10 meet the offer of the highest
bidder. Such a decision would, of
course, end the operating agree
ment, and the government reserves
the right to cancel this on thirty
days notice, seek bids, and then al
low the l. NJ NJ. opportunity to ex-
ercise its option.
Senate Holds Up Sale
The sale Of the Leviathan and twenty
nine other former German ships has
been held up for the present by Sen
ate resolution requesting the post
ponement Of the sale and an injunc-
ton forbidding the sale. which was
granted by Associate District Supreme
Court Justice Bailey. in Washington
on the application of William Ran
oolph Hearst. These bars. it is not un-
10y WALL DC iSlliONSQ All tIS uedI
future.
In the mean time the Shipping Board
going ahead with plans to recon.
vert the Leviathan into a passenger
saip. Practically all of the vessels in
erior construction. other than mechan.
1sal' was ripped out when she was
paced in the transport service during
the war.
81 00O nn0 for Raro;ra
It Is going to cost between $4,000, ,0Ot
snd s7OOO,000 to put her back into
commission. This job is one, to quote
: prominent shipping expert, that will
@Se the best talent the government
can get"
me ship Is to change her fuel from
coal to oil before being restored to the
transatlantic passenger service, be-
siaes practically all of her accommo
oatlons for the 9,958 passengers, which
que IS able to carry in comfort, mus
be restored.
inc task is complicated by The alb
.sn .sace Of any comprehensive plan o:
LUZ, Sme vessels interior. The German
rs, Sunoers, Blohm & Voss, Of Hamburg
snepned to a cable from the Shippinl
nuard last December asking for theiI
Ps'ce Tor d copy Of the plans Of tn,
Ae'M,athan with three words: "On,
Ma,lon .sa, dollars" Tho Shipping Board
.sspy Is reported to have been ever
.nvlSes. m"n It was the we'll known Ger
man word, "nein."
Would Have Paid $4,000
~, reasonable price for the plan,
~"uia suuia nave been $4,000 and the boart
r;.i wSaid have paid $4,000 for them. Blu
hslioot hnsi them the vast interior Of tn
ninn iIn was an unaxplored mystery To-
svsnosrs, electricians and ventilatin,
mechanics. Every pipe, ever,
must be traced from deck to deck
and vse the war the ship represented
49, aoF that matter still does, the YER,
atrsss, IN shipbuilding. There wer
ns.s about her interior that ha,
VIZ mth.Dee Deen built into any other ship
ha Is s the plans each Of these mus
~. rThorked out blindly.
for O. snlpplng board has no facilitie
boayd',se ',secaonverting' ships, and so tn
Tsnts sess with P. A s. EranaIin E nI 3or s.
ehSssernational Merchant Marine to tax Az
M o. the vessel. II was then tha
sers. m franklin obtained his operatin
ss@ent with its purchase option.
=, cen Ship Men in Conference
eant;,. 1s9 1s OF tho International Mex
msin.M s marine was then flown from til
shim1asss Of the Leviathan and th
Ill KING M Board called a meeting o
tspsis e Important shipbuildins and shi
Nv v s2mpanses. Tfis was held Il
aens.t,uK u was attended by repre-
sat;I'ses sant;I. Of the International Mer
haila;s~ Marine, the New York Shin
a s corporation, odd Ship Yard