Evening star., 1938-01-04
DEFENSE TANKERS
TOCOSTS7,566,0A
Maritime Commission and
Standard Oil Sign Pact
for II Vessels.
BY the Associated Press.

BY the Associated Press.
The Maritime Commission and the
Standard Oil Co. of New Jersey signed
an agreement yesterday under which
the company will begin immediate
construction of IL high-speed tankers
at total cost of $37,566,0O4.
Commission Chairman Joseph P
Kennedy said the oil company, acting
on competitive bids received several
weeks ago, had awarded contracts tc
four shipbuilding firms, each company
to build three ships.
The companies were the Newport
News (Va.) Shipbuilding e. Dry Dock
Co.. the Bethlehem Shipbuilding Corp
Baltimore yard), the Sun Shipbuild-
ing & Dry Dock Co., Chester, Pa, and
the Federal Shipbuilding g. Dry Dock
Co., Kearney, N. ].
Lowest Bid $2,249,417.
Mr.. Kennedy said the oil company
accepted the lowest bid submitted and
required other bidders to meet that
price. The lowest bid as $2,249,4l7
by the Sun Shipbuilding g. Dry Dock
Co.
Under the agreement, Mr.. Kennedy
explained, the company will build the
tankers and maintain them in ar
operating condition at its own ex.
pense for the next 20 years, while the
commission will pay outright the in.
creased cost involved in equippinp
them for high speed and with national
defense features
The vessels, the commission said
ere designed ito meet the urgent re.
quirements OF the Navy for auxiliar,
vessels capable of travelling with tn,
fleet"
Not a Construction Subsidy.
Mr.. Kennedy emphasized that nav.
ment for the national defense features
which the commission was authorized
TO make under the Merchant Marin.
Act, involved in no way a construc.
ton subsidy to the oil company.
The commission's share of the tota
cost for national defense feature vii
be $l0.563.00O.
Ihe commission said that while tn,
standard Oil Co. was the only sigma.
tory to the agreement, there was 6
strong likelihood other oil companie.
would take some of the ships. Neso.
tiatlons between the companies toware
that end were in progress, the com.
mission said, pointing out that an op.
portunlty to participate IN the pro.
gram was extended on the same basi!
TO "a American companies operatins
tankers.
S880,250 Is Figure.
The amount of the differential to be
paid by the commission for national
defense features was determined in
the same manner as the contract price
the commission selecting the lowest
dif1erential submitted. which was
s88O,250. The highest was sl,058. 1000.
Under the contracts. the cost pe,
tanker will be $3,129,667.
To expedite construction. the com.
mission said, the new tankers will be
built to a standard design prepared
by experts Of tanker companies, the
commission and the Navy. The con.
tract requires that these vessels de
velop l8 knots on the Rockland course
They will have a speed of 1872 knot.
sustained sea speed. fully loaded, al
against 1872 knots OF the ordinary
commercial tanker; tonnage OF
l6.30O tons dead weight, length Of
525 feet and cargo capacity OF ap.
proximately 100000 barrels.
With horsepower of l2,80O, theil
engines will develop over 300 per cen,
more power than commercial tankers
OF 1000 horsepower.
1t will require from IA months tc
3 years to build the ships.