Evening star., 1953-04-03
Government Seizinq
500 Million Ships
Owned by Foreigners
BY the Assoeioisd Press

Lie JuSClce Department Is
engaged in a 500 million ship
seizure breakdown that may have
helped persuade some foreign
tanker owners not to traffic with
Iron Curtain countries.
The program is now in full
swing, with 13 ships already
Seized-12 Of them in the last
seven weeks-and about So 9TH
ers ION the list" to be taken
over whenever they next touch
a United States port.
The ships being "libeled"-or
Seized-are all former Govern
ment surplus tankers operated
by companies which claim to be
American-owned and controlled.
Sale Limited to Americans.
However. the Justice Depart
ment contends the vessels are
illegally under alien direction be-
cause Of foreign capital supplied
to the operating concerns, and
the United States is entitled to
recover them.
The postwar sale of the tankers
was specifically limited to Amer
ican citizens and American
corporations.
There is no suggestion that
the former surplus vessels now
being seized have been used to
supply Iron Curtain areas. How
ever, the Government believes
that the same foreign interests
alleged to have financial finger
in their operation also own and
operate other tankers which have
engaged in that kind of trade.
On that theory, officials be-
lieve the United States seizures,
tying up large amounts of cap
ital which eventually could be
lost entirely, may have brought
about "a more cooperative at
titude" with the interests of this
country.
Greek Shipper Named.
When Senator Mccarthy, Re-
publican, of Wisconsin, recently
announced that a large group
of Greek ship owners had agreed
not to ship behind the Iron
Curtain, he named Stavros Lii
vanos, wealthy Greek shipowner
now in New York, as one of
those who signed the agreement.
According to ernm n t
sources, Mr.. Livanos is the ia
ther-in-law of StavroS Niarchos
and Aristotle Socrates Onassis,
who are engaged in world ship
ping on a grand scale. Mr..
Onassis recently bought the
Casino at Monte Carlo as
headquarters office.
These sources said Mr.. Mar
choS is associated with the North
American Shipping and Trading
Co. which has recently had six
tankers seized in United States
ports.
They said Mr.. Onassis asso-
ciated with U. S. Petroleum Car
riers, five of whose ships were
impounded during the past two
weeks.
The precedent for the seizures
was established by the Truman
administration, in a test case
involving the tanker Meacham,
operated by a group headed by
NeWbold Morris, New Yorker and
one-time Government cleanup
man" under President Truman.
Mr.. Morris claimed the
Meacham's profits went to an
American-controlled organization
known as China International
Foundation, supplying educa-
tional scholarships for National
iSt Chinese students.
However. the Federal district
court at Alexandria, Va, held
last fall that the Government
should recover because after it's
sale from the surplus fleet by
the old Maritime Board. the
Meacham was illegally trans
ferred to a corporation financed
and controlled by Chinese aliens.
The Meacham was then sold
for 81 million and the money was
impounded pending the outcome
of an appeal on the question of
who gets the money.