New-York tribune., 1920-01-30
Roosevelt in
Deal to Buy
Brazil Ships
Kermit Is in Rio de Janeiro
to Complete Negotiations
for the Purchase of 28
Former German Liners
French OptionDelay
American Corporation Will
ing to Pay $3.50 a Ton
for Fleet Now in Trade

Advices from Rio Janeiro and Buenos
Ayres that United States shipping in
terests expected to complete negota-
tions soon for the purchase of several
former German linerS requisitioned by
Brazil in the war brought forth the
statement here yesterday that the
American Ship and Commerce Corpo-
ration, which is behind the deal, con-
sidered the negotiations 80 per cent
complete"
Captain Kermit Roosevelt, secretary
of the corporation, of which Major
General George W. Goethals is presi-
dent, is with Alfred Z. Clegg, the
American concerns preventative in
the negotiations with Brazil. He and
Clegg now are in Brazil, trying to
close the deal
The corporation is negotiating for
twenty eight of the fifty or sixty ves-
sells taken over by Brazil. The aggre-
gate gross tonnage Of the ships, most
of which are in service. under the Bra
lillian flag, between South America and
France, is 100000. The American cor
poraton has offered $3.50 gross ton
for twenty-eight vessels, it is under
stood. but the exact amount involved
in the transaction is unknown
Option to France Renewed
Shortly after the United States en-
tered the war and withdrew merchant
ships from trade lines to transport
troops to France, the Brazilian govern
mcnt chartered to the French govern
mcnt between forty and fifty of the
seized German ships under year
agreement which gave France an op-
ton to make outright purchase of the
ships at its expiration. SO far France
has taken no steps to avail herself
of this provision, although the French
Chamber of Deputies voted 10000, 900
francs (normally 500 2,000000) to pay
for the use of vessels during the war
The option mas been renewed, it is un-
derStOod
1t is understood here that BrazPs
right to sell the former German ships
has been questioned by the Allied Rep
Rio de Janeiro say that the public
there is much interested in the project
and that the newspaper are strongly
in favor of retaining the vessels in
Brazils overseas trade.
Surprise in Pcssoas Attitude
Surprise was expressed in the news
papers there, it was said, over Presi-
dent Pessoa's recent statement that it
was his personal opinion that Brazil
WAS obligated to reimburse Germany
for use of the vessels and that their
sale would probably be necessary to
obtain money for this purpose. 1t was
generally understood that the peace
treaty contained a clause under which
Germany expressly rcnounced all claim
for indemnity for detention and en-
ployment of her ships in Allied or
neutral ports.
1t is believed in Brazil that COM
plcton Of negotiations will be delayed
until diplomatic questions are settled
and until France has had time to take
up the question Of making a purchase
The newspaper LA Fohla," considered
a scmi-otficial organ, has announced
that an extension Of the option has
been granted at the request of French
officials, and that the Brazilian gov
crnment in all likelihood will await
the expiration of the renewal before
completing the sale to the New York
corporation.