The Washington times., 1920-05-30
Liner LEASES
AID TREASURY
Rentals for Five Years More
Than Amount Set AZ Pur-
chase Price.
13 VESSELS IN CONTRACT
Sixteen of Great Former Ger
man Fleet Still With
out Operators.
10 VESSELS IN CONTRACT

Within five years, rentals to b
received from the ALLEGATION yester-
day by the Shipping Board Of thir-
teen ex-German passenger liners to
two all-American companies win
far exceed the amount for which
these same vessels were to have been
sold outright, according to an
nouncement by Shipping Board Of
ficials today.
This stroke Of economy, which
will bring the United States Gov
ernment an income while at the
same time nabling it to retain pos
session of giant ships which, in time
of war, would be of inestimable
yaiue to this country, is the direct
sresult of the suit brought recently
by William Randolph Hearst to for
bid the sale Of the twenty-nine e1-
German passenger liners.
Boost for Treasury.
Contracts for the ALLEGATION of the
thirteen vessels were closed yester-
day. They will mean a substantial
addition to the Treasury.
Admiral William 8. Benson. chair
man Of the Shipping Board, in making
the announcement of the contracts.
stated that the United States Mail
Steamship Company is 100 per cent
American" -szs-q-----s---s;..s,,.s - .a.-
To Raymond b. steSens, vice chair
man." ~
To Raymond B. Stevens, vice chair.
man of the Shipping Board, who re-
Gently resigned. is due the credit for
insisting that the vessels go to
steamship companies which were in
dubitably American. The contract of
ALLEGATION of the thirteen vessels, IL
was learned yesterday, was the last
important official act Of Stevens be-
fore resigning
Other members of the board. notably
John A. Donald, wanted the ships sold
outright, but the court Injunction Sc
cured by Mr.. Hearst stepped in to
block them. Stevens, IT is known
wished the ships retained and oper-
ated by the Government; but when
Congress struck out an item in the
sundry civil bill OF $4,000, 900 to re-
condition the vessels, Stevens worked
for their ALLEGATION to an American
company or companies which would
recondition the vessels and operate
them.
This attitude on the part of Stevens
is understood to have precipitated q
bitter controversy between members
)f the board, most Of whom were in
favor of selling the ships outright
By persistent agitation, however.
Stevens finally gained his point, and
the contract entered into yesterday is
the result
List Of Vessels Affected.
1t affects the following vessels:
George Washington, Pocahontas, Mt
Vernon, Callao, Susquehanna, Presi-
dent Grant, America, Princess Ma
toika, Agamemnon, Antigone, Am
phion, Freedom, and Madawaska-
Under the terms of the contract the
United States Mail Steamship Com
pany agrees to take the Aeolus and
the Huron, two smaller vessels Of the
fleet, provided the Shipping Board
can secure their release from their
present commitments to the South
American service by the substitution
of other suitable vessels. The essen
tial term of the contract are as fol-
lows:
The United States Mail Steamship
Company is to recondition these ves-
sells from their present status as
troop carriers, to their pre-war status
as passenger vessels, the expense to
be borne by the company. The plans
for reconditioning are to be subject
to the approval of the Shipping Ronrd.
The United States Mail Steamship
Company Is to pay the Government
a "bare boat" charter hire at tho rate
of $3.50 per net registered ton per
month. or hire for overhauling and
repairing is permitted, but not u e1-
ceed thirty days in any one year. The
charter is to run for a period of FIVE
years, and upon its termination, thu
steamship company has the frst
chance to purchase the vessels at
prices and terms then to be fixed
by the board.
Company to he ucimburse,.
In case OF purchase. the steamship
company is to be credited on the pur-
chase price with the amount of
money spent in reconditioning the
ships for service, minus depreciation
at the rate of seven and one-half per
cent n year. II the company does
not purchase. the amount so spent N
reconditioning, minus depreciation. ts
TO be returned in cash to the board.
Under the charter, all of the ex-
penses of operation OF these vessels.
including insurance, are tc be borne
by the company, thereby making the
return to the Government net
The contract further provides that
in the event the company enters INTO
contract with the North German Lloyd
Steamship Company, or the Hamburg
American lines, for the use OF the
piers, warehouses. facilities OF either