745 192.1 U.S. SHIPPING BOARD Report Wmi fi7TH CONGRESSl QFTSTATP /DOCUMKNT 1st Session / bi^iNAlh. | No. :« REPORT OF U. S. SHIPPING BOARD LETTER FROM THE CHAIRMAN OF THE SHIPPING BOARD TRANSMITTING IN RESPONSE TO A SENATE RESOLUTION OF DECEMBER 27, 1920, A REPORT COVER- ING THE TRANSACTIONS OF THE UNITED STATES SHIPPING BOARD AND THE EMER- GENCY FLEET CORPORATION FROM ITS INCEPTION TO FEBRUARY 28, 1921 A^ June 2, 1921. — Referred to the Committee on Commerce. June 9, 1921. — Ordered to be printed. WASHINGTON GOVERNMENT PRINTING OFFICE 1921 LETTER OF TRANSMITTAL. United States Shipping Board, Washington, June 2, 1921. The President of the Senate, Washington, D. C. Sir: I have the honor to transmit herewith a detailed reply to Senate resolution 413, dated December 27, 1920, introduced by- Senator Walter E. Edge, instructing the United States Shipping Board to submit a report on moneys appropriated from September 7 1916, to November 30, 1920, on profits capital, number and descrip- tion of vessels, s^^stem of accounting, contracts of operation, number of employees, etc. This reply has been prepared and covers the transactions of the United States Shipping Board and the Emer- gency Fleet Corporation to February 28, 1921, which date is some- what later than that required by the resolution. A previous tentative reply to this resolution was submitted under date of March 1, 1921, but did not fully cover the various inquiries contained in the resolution. Respectfully, W. S. Benson, Chairman. "1^ r 451665 REPORT OF THE UNITED STATES SHIPPING BOARD. (la answer to Senate resolution No. 413. ] United States Shipping Board and United States Shipping Board Emergency Fleet Corporation, June 1, 1921. To the President of the Senate Washington, D. C. Sir: Pursuant to directions of Senate resolution 413, we have pre- pared and now render our detailed report in answer thereto. This report is in addition to the report submitted you with our letter dated March 1, 1921. (See p. 4432 of Congressional Record dated Mar. 2, 1921.) 2. The information given herein is in answer to points contained in the resolution and the answers to such points are given in the same order as points are set forth in the resolution. 3. We have prepared our entire report for the period "From incep- tion to February 28, 1921," in place of "From September 7, 1916, to November 30, 1920." This was done in order that a more recent reflection of the activities of the organization could be had. 4. In the preparation of Exhibits A and B we have eliminated some of the accounts, such as "Reserves," which are bookkeeping entries and represent no actual values or indebtedness. While aepreciation and insurance (the board carried its own insurance) relating to operations of vessels are proper charges, they are omitted for the reason that they might be confusing and not disclose the real situa- tion, thus making the figures resulting therefrom useless for the pur- pose for which the exhibits are prepared. Also we have used ship construction expenditures applicable to March 31, 1921, inasmuch as the information required to clearly answer points relating thereto was not available at February 28, 1921. 5. W^ith the foregoing exceptions the data shown in the Exhibits A and B represent the result of a compilation of the accounts as they stood on the books February 28, 1921. 6. Point No. 1. — The total amount of moneys appropriated for, and otherwise provided for, the United States Shipping Board and Emergency Fleet Corporation, and the United States Shipping Board as its successor, from September 7, 1916, to and including I^ovember 30, 1920. 6 EEPOET OF V. S. SHIPPIKG BOARD. The answer to this point, with the exception that it covers the period from "Inception to February 28, 1921," is as follows: (l) Moneys appropriated for: (a) United States Shipping Board — (1) Permanent fund (act of Sept. 7, 1916). to purchase capital stock of Emergency Fleet Cor- poration $50, 000, 000. 00 (2) Salaries and expenses, 1917 (act of Sept. 7. 1916) 100,000.00 (3) Salaries and expenses, 1918 (act of June 12, 1917).. :■--.•■.■ 342,500.00 (4) Investigation of foreign discrimi- nation against vessels and ship- pers of the United States (act of June 12, 1917) 175,000.00 (5) Increase of compensation (act of June 12. 1917) 4,633.71 (6) Salaries and expenses, 1919 (act of July 1, 1918) 842,500.00 (7) Salaries and expenses, 1920 (act of July 19. 1919) 772.986.00 (8) Salaries and expenses. 1921 (act of Junes, 1920) 442,500.00 (9) Total moneys appropriated for United States Shipping Board $52, 680, 119. 71 (6) United States Shipping Board Emergency Fleet Cor- poration : (1) Emergencv shipping fund — Art of June 15. 1917 $405,000,000.00 Act of Oct. 6, 1917 635,000,000.00 Act of Julv 1 , 1918 1. 806, 701, 000. 00 Act of July 11, 1919 500, 000. 00 Act of July 19, 1919 356, 000, 000. 00 (2) Total moneys appropri- ated for United State Shipping Board Emer- gency Fleet Corpora- tion 3, 203, 201, 000. 00 (2) Total moneys appropriated for 3, 255, 881, 119. 71 (3) Moneys otherwise i)rovidi'(l for: (u)' AllotnuMils hy Pn^sident of the United Statcis to United States Shipping Board:- - (1) National security and defense fund, 1918 (act of Apr. 17, 1917) $27, Oil, 682. 84 (2) National security and defense fund. 1919 (act of July 1, 1918) 2, 500, 743. 43 (4) Total moneys otherwise provided for 29, 512, 426. 27 (5) Total moneys appropriated for and otherwise provided for 3, 285, 393, 545. 98 In addition to the foregoing, we quote in substance extracts from acta having to do with appropriations. EEPORT OF U. S. SHIPPING BOARD. 7 FISCAL YEAR 1921 — SUBSTANCE OF APPROPRIATION AS SHOWN IN PUBLIC. DOCUMENT NO. 246. Purposes of (ipprnpri'itions. — The expenses of the United States Shipping Board Emergency Fleet Corporation during the fiscal year ending June 30, 1921, for — (1) Administrative purposes. (2) Payment of claims arit^ing from (a) cancellation of contracts, (6) damage charges, (c) misccllancdua adjustments. (3) Maintenance and operation of vessels. (4) Completing vessels now under construction. Shall be paid from the following sources: (1) Amount on hand July 1, 1920. (2) Moneys received from operations of ships. (3) $15,000,000 or less received from deferred payments on ships sold prior to June 5, 1920. (4) $25,000,000 or less from plant and material sold during fiscal year 1921. (5) $30,000,000 or less from ships sold during fiscal year 1921. SECTION 14. — MERCHANT MARINE ACT OF 1920. Sec. 14. That the net proceeds derived by the board prior to July 1, 1921, from any acti\ities authorized by this act or by the "Shi])ping act, 1916," or by the acts speci- fied in section 2 of this act, except [such | an amount as the board shall deem necessary to withhold as operating capital, for the purposes of section 12 hereof, and for the insurance fund authorized in section 10 hereof, and for the construction loan fund authorized in section 11 hereof, shall be covered into the Treasury of the United States to the credit of the board and may be expended by it, within the limits of the amounts heretofore or hereafter authorized, for the construction, requisitioning, or pur- chasing of vessels. After July 1, 1921, such net proceeds, less such an amount as may be authorized annually by Congress to be withheld as operating capital, and less such sums as may be needed for such insurance and construction loan funds, shall be covered into the Treasury of the United States as miscellaneous receipts. The board shall, as rapidly as it deems advisable, withdraw investment of Government funds made during the emergency under the authority conferred by the acts or parts of acts repealed by section 2 of this act and cover the net proceeds thereof into the Treasury of the United States as miscellaneous receipts. FISCAL year 1922, SUBSTANCE OF APPROPRIATION AS SHOWN IN PUBLIC DOCUMENT NO. 389. Purposes of ap pro printiori .—The expenses of the United States Shipping Board Emergency Fleet Corporation during fiscal year ending June 30. 1922, for — (1) Administrative purposes. (2) Payment of claims arising from (a) cancellation of contracts, (6) damage charges, (c) miscellaneous adjustments. (3) Maintenance and operation of vessels. (4) Completing vessels now under construction. (5) Carry out "Merchant marine act." Shall be paid from the following sources: (1) Amount on hand July 1, 1921. (2) Moneys received from operations of ships. (3) $55,000,000 or less received from (a) deferred payments on ships sold prior to March 4, 1921, (h) plant and material sold during fiscal year 1922, (c) ships sold during fiscal year 1922. 7. Point No. 2. — " The gross profits or losses, as the case may he, for the same period." The answer to this point is shown by the "Gross proceeds from appropriations, allotments, and other sources." (See item 5, Exhibit A.) We set forth below a summation in order that a further dis- tinction may be had: Gross proceeds from appropriations, allotments, and other sources (see item 5, Exhibit A) $3,511,328,609.78 Deduct moneys appropriated for and otherwise provided for (see answer to point No. 1) 3, 285, 393, 545. 98 Gross proceeds after deducting moneys appropriated for and otherwise provided for 225, 935, 063. 80 8 REPOBT OF U. S. SHIPPING BOARD. 8. Point No. 3. — '^ Net projiU or Josinefi, as the case may he, for the same period.' The answer to this point is shown by "Net proceeds from appro- priations, allotments, and other sources." (See item No. 8. Exiiibit A.) We set forth below a summation in order that a further dis- tinction may be had: Net proceods from appropriations, allotments, and other Rourcea (see item No. 8, Exhibit A ) $3, 084, 060, 247. 88 Deduct monevs approi)riated for and otherwise provided for (see answer to point No. 1) 3, 285, 393, 545. 98 Net excess of expenditures over receipts after deducting moneys appropriated for and otherwise provided for 201, 333. 298. 10 Briefly summarized, the foregoing "Net excess of expenditures over receipts, etc." is the result of the following: (1) Excess of expenditures over receipts: (a) Sales $70, ,303, 467. 62 (b) Suspensions, cancellations, etc 116, 621, 895. 35 (c) Shrinkage in values, appraisal versus expenditures 128, 907, 351. 83 (d) Lost vessels 76, 912, 833. 63 (e) Released v e.ssels 1 1 , 607, 702. 89 (/) Statutory limitations of appropriations and allotments 4, 016, 026. 85 (g) Salaries and expenses, recruiting, etc 67, 607, 549. 86 (h) Total excess of expenditures oa er receipts 475, 976, 828. 03 Less: (2) Excess of receipts over expenditures: (a) Operations of vessels 274,643,529.93 (3) Net excess of expenditures over receipts, etc 201, 333, 298. 10 9. Point No. 4. — " The disposition of any net profits, if any such there have been." The answer to this point is shown in detail in the ''Statement showing disposition of net proceeds of receipts from appropriations, allotments, and other sources." (See Exhibit B.) In order that a clearer understanding may be had, we believe a few remarks relating to some of the items shown in this statement are in order; ther(»fore, we make such remarks as they apply to the particular item of the statement: General cash and cash finds (item A-J), S4o, 623, 874.64.— Oi this item, $17,280,460 is committed to a specilic class of activities, leaving $28,393,414.64 to carry on current transactions of all divisions. Unexpended appropriations and allotment funds (item A-2), $40,778,165.56.— Of this sum, $39,621,441.32 is available for current li'ansactions and represents the residue of a recovery from the War L)('})artment. The balnace amounting to $1,156,724.24 is subject to statutory liinilations which will require the return of a part of it to the United Slates Ti'easury surplus account. Accounts receivable {item A-3), $190,952,618.99. — The greater part of this item, namely, $77,348,779.50, is represented by contracts covering sales of vessels. It would seem quite clear that this indebt- edness, unless amply secured or due from a debtor able to pay from resources other than shi|)s purchased, can not be of any greater value than tile value of the ship. This being so, there will necessarily be a very considerable shrinkage in the value of the receivable items REPORT OF U. S. SHIPPING BOARD. 9 representing this class of iiulcljlcdncss. Wo sot forth a division of maturities of oontracts covoriiitr sah>s of vossols, wliicli extend over a period ranging from 1 to 13 years: Past due $4^ 797, 887. 44 Due in 1 year 5, (578, 222. 16 Due in 2 to 13 years 49. 822, 886. 02 Doubtful (in recei\ erships) 13, 269* 870. 14 Others 3, 779^ 913. 74 Total 77, 348, 779. 50 The amount due from foreign Governments is $26,599,279.45, of which the hirg(>r part is owed by France and Great Bi'itain. The amount due from departments of tlie Unitecl States Govern- ment is $18, (592, 139. 13; of this sum $8,579,479.79 is owed by the Food Administration (now exthict); $0,535,708.05 is owed by the Navy Department; $2,408,312.11 is owed by the Panama Canal; $1,168,639.18 being owed by other dejiartments. There are also included in this item $1,362,518.43 which is owed by the American Red Cross, Belgium Relief Commission, and Young Men's Christian Association. Tlie balance of $66,949,902.48 repre- sents accoHuts owed by sundry d(4)t()rs. The larger proportion of this amount will be collected through the medium of settlements of claims against the United States Shipping Board Emergency Fleet Corporation, and thus no cash will be obtained. Notes receivable {item. A-4), $75,236,673.28. — The larger part of this item, namely, $69,016,010.61, represents notes received in lieu of vessels that were sold. A similar condition exists in connection with these items as the one referred to under accounts receivable; that is to say, the indebtedness can not be of any greater value than the value of ships, unless such indebtedness is amply secured or due from a debtor able to pay from resources other than ships purchased. This being so, there will necessarily be a considerable shrinkage in the value of this receivable item. The maturities of these notes range over a period of from 1 to 10 years. The division being as follows : Past due $6, 761, 166. 74 Due in 1 year 18, 336, 659. 58 Due in 2 to 10 years 43, 918, 184. 29 Total 69, 016, 010. 61 The amount due from foreign Governments is $3,095,396.80, of which $2,923,985.24 is owed by the Rei)ul)lic of Poland. The greater part of the balance, namely, $3,125,265.87, is due from shipbuilders. United States Liberty and Kingdom of Beh/ium bonds {item A-5), $2,604,812.47.— In this item $2,446,187.50 is represented by United States Liberty bonds of $2,634,750 par value. Maturity of such bonds is as follows : Maturity Amount. 1928 $104, 000. 00 1938 2, 30(i, 000. 00 1947 224, 750. 00 Total 2, 634, 750. 00 The amount of Kingdom of Belgium bonds is $158,624.97 which mature in 1928. 10 REPORT OF U. S. SHIPPING BOARD. Siocl's and honds of other companies (item A-6) $662,210. — The division of this item is as follows: Capital stock of — . Emergency Fleet Street Railway of New Jersey *-5"' x"" Anacortes Co 25, OOP Total capital stock 275, 000 Bonds. Seattle Construction & Dry Dock Co 387, 210 Total 662,210 Mortgages (item A-7), $6,555,218.38.— This item consists of mort- gages received in lieu of housing projects that were sold. The maturi- ties of such mortgages range over a period of 5 to 10 years. We show division of such maturity below" First, 5-year mortgage $5, 298, 833. 88 Second, 10-year mortgage 1. 256, 384. 50 Total 6,555,218.38 Certificate of indebtedness (item A-8), $21,197.72.— This item repre- sents certificates received from municipalities and corporations in lieu of expenditures on utilities in connection with housing projects. Realization will probably be made to the extent of $13,697.72. Loans and or advances (item A-9), $105,546 J67. 13.— Oi the $66,606,053.35 item (a) there is $31,377,599.49 secured by mortgages given in lieu of expenditures on housing projects of realty companies. This class of loans are further secured by capital stock of realty com- panies being pledged with the United States Shipping Board Emer- gency Fleet Corporation, for the faithful performance of certain operating agreements. Also certificates of indebtedness are indorsed by realty companies to the United States Shipping Board Emergency Fleet Corporation, as security for moneys loaned. The remaining $35,227,453.86 of item (a) represents mortgages given in lieu of expenditures in connection with plant and vessel construction. The $15,979,983.92 item (b) is secured in part by mortgages given in lieu of expenditures on housing projects of realty companies also fur- ther security consisting of pledged capital stock of realty companies and indorsed certificates of indebtedness as previously outlined. The $22,960,729.86 item (c) represents unsecured loans consisting of expenditures in connection wnth plant and ship construction, receivers of steamship companies that purchased vessels of the United States wShipping Board, and insurance syndicates. Viewing this item as a whole, there will only be realized such amount as represents the after war valu(;s notwithstanding the amount of investment tluring the period of war. Furthermore such an amount as is realized will extend over a number of years ranging from 5 to 10 or more in number under the present conditions. Agents account current balances {item A-10), $52,609,221 .70.— This item consists of (1) balances due from owners of requisitioned vessels, amounting to $43,387,531.37; (2) balances of agents accounts in Bos- ton, North Atlantic (New York), and Norfolk districts, less amount of cash (see Exhibit B, item 1-a-l) in operator's trust funds of such districts, amounting to $9,221,690.33. The $43,387,531.37 item- due from "0^vners of requisitioned vessels" — is to a large extent offset by " charter hire payable" to such REPORT OF U. S. SHIPPING BOARD. 11 owners, amounting to $42,592,825.98, that is included in "Deductions from workin*]: capital." (See Exhibit B, item 3-a-2-b.) The ultimate disposition of the S9,221,()9().33 will tend to increase the receipts from operations of vessels $240,970, 604. 70 (see Exhibit A, item 1-c-l a) : increase the receipts from sundry sources .$264,088.76 (see Exhibit A, item l-c-3) ; increase the expeiiditures on operations of vessels $238,273,376.61 (see Exhibit A, item 3-b-l); increase the accounts receivable $17,389,527.29 (see Exhibit B, item l-a-3); increase the materials and supplies $140,486.94 (see Exhibit B, item 1-a-ll-a); increase the custodian receipts $28,266.12 (.see Exhibit B, item 3-a-l-a); increase the liabilities $5,312,740.93 (see Exhibit B, item 3-a-2-b). Tiius at such lime as the "Ap;ents account current balances" of all districts are cleared, the realization of this item would increase the "Net working and lixed and donated capital" item (see Exhibit B, item 10) to the extent of $2,967,316.85. Materials and supplies {item A-11), SS5, 254,706.63.— The larger part of item (a), namely, $28,564,681.42, represents materials for use in connection with vessel construction and repairs. All of item (6), amounting to $54,870,127.78, represents in part, appraisal values set on surplus and salvage materials and otherwise actual expenditures. In order that no misunderstanding may exist, you are informed that this is book and not in all cases a physical inventory value. Deductions from worhinq capital {item 4), $91,163,733.67.— You are informed that this item only represents the acknowledged and recorded liabilities of the United States Shipping Board Emergency Fleet Cor- poration. There are claims relating to the construction program and other payable items amounting to many millions of dollars, but they are not shown herein for the reason that their presentation amount is not always indication as to their final settlement amount, therefore to include them would in our opinion, be misunderstood and otherwise defeat the purposes of the statement submitted. Briell}', the afore- mentioned items are as follows: Estimated construction program claims payable $146, 796, 548. 34 Awards payable to former owners, requisitioned hulls 11, 309. 962. 77 Estimated insurance, accident, and damage losses payable 21, 665, 719. 91 Total 179, 772, 231. 02 In our opinion, the rest of the items with their supporting schedules are clear within themselves. 10. Pqixt No. 5. — " The amount of capital on which the United States Shipping Board now is conducting its business.'' The answer to this point is shown by "Net working and fixed and donated capital." (See Exhibit B, item 10.) 11. Point No. 6. — " Tfie number of vessels at present owned by the Shipping Board, giving material of which each is constructed and ton- nage of each. \ 'fhe answer to this point is shown by "Statement of owned vessels, tugs, and barges available." (See schedule 9 of Exhibit B.) 12. Point No. 7. — " The number of vessels, if any, at present owned in part by the Shipping Board, giving material of which each is con- structed and tonnage." The answer to this point is shown by "Statement of owned in part vessels, tugs, and barges." (See Exhibit C.) 12 REPORT OF U. S. SHIPPING BOARD. 13. Point No. 8. — "Number and description of i^esseJs owned hy the Shipping Board now in operation nnder its sote management, and numher and description under charter hy the Shipping Board in opera- tion under its sole management.'' The answer to this point is "None." 14. Point No. 9. — "Number and individital and aggregate value of vessels owned by the Shipping Board now managed by it in conjunction unth private interests." The answer to this point is shown by "Statement of owned vessels managed in conjunction with private interests." (See Exliibit D.) 15. Point No. 10. — "Numher of vessels owned by the Shipping Board now chartered by it to private interests and operated entirely by private interests." The answer to this point is shown by "Statement of owned vessels chartered to private interests and operated entirely by private interests." (Sec Exhibit E.) 16. Point No. 11. — "Number and individual and aggregate value of vessels owned by the Shipping Board not at present in operation, ?'iving (a) name and description and tonnage of each such vessel; {h) ength of time it has not been in operation; (c) reason why it has not been and is not now in operation; (d) place where each such vessel is docJced or tied up; (e) expense of daily maintenance of each such vessel; if) percentage of each vessel's value lost monthly by such idleness; ig) esti- mated percentage of each such vessel's value lost monthly in depreciation." No attempt is made to place a value on the vessels. The limita- tions of the law, the financial and business conditions, together witli the wide variations in the opinions of those who are conversant witli this subject, preclude the possibihty of making an estimate of value that would be generally accepted. Moreover, it is obviously unfair to use as a basis for the ascertainment of values of these vessels the prices obtaining in the midst of a world-wide depression. Therefore, it was thought best to omit any attempt to place a valuation on vessels. The answer to subsection (/) is not given for the reasons that (1) as previously stated, values are ambiguous at the present time; (2) under existing conditions vessels have little or no earning value; (3) before vessels are tied up it is determined that losses while in operation would exceed expenses while vessels are not in operation. In answer to subsection (g), we estimate that depreciation during tie-up exceeds depreciation during operation by 1^ to 2 pei-^cent. With the foregoing exceptions, our answer to this point is shown by the following: (1) "Statement of owned vessels not under operations" (see Exhibit F), answering subsections (a) and (d). (2) " Statement of expense of daily maintenance on owned vessels " (see Exhibit G), answcrmg subsection (e). (3) "vStatement showing length of time owned vessels have not been in operation and reasons why they have not been and are not in operation" (see Exhibit 11), answering subsections (b) and (c). 17. Point No. 12. — "Concise description of the system of account- ing by which (a) the profits or losses of the Shipping Board are deter- mined, (b) the loss by depreciation is estimated, (c) the individual profit or loss on each vessel, in operation or idle, is estimated." REPORT OF U. S. SHIPPING BOARD. 13 In our opinion, this point is intended to apply to the divisions having to do with the operation of vessels. We therefore show on the ''Accounting system, Division of Operations" (see Exhibit I), an outline of the accounting system of tiiat (hvision. In addition to the foregoing, hooks of accounts are maintained by the Transportation and Housing and ('Oiistruction Divisions of the Emergency Elect Corporation. Books of accounts arc also main- tainecl by the United States Shipping Board wherein the Ship Sales Division activities are recorded. Furthermore, a consolidation of all division transactions is made in the general books of the United States Shipping Board Emergency Fleet Corporation. From these general books monthly "consolidated trial balances" and "balance sheets" of tiie organization as a whole are prepared. 18. Point No. VS.— " Copy of any standard Jorm of contract the Shipping Board may have established." In answer to this point there are attached hereto the following exhibits which represent the difl'erent forms of contracts rec[uested: (a) Requisition charter Exhibit J (b) Requisition agreement, tank steamship Exhibit K (c) Requisition charter for tank steamship Exhibit L {d) Requisition charter for sailing; vessels Exliil)itM (e) Sailing vessel time charter Exhibit N (/) Tugboat managing and operating agreement Exhibit O (g) Operating agreement Exhibit P (h) Operating agreement Exhibit Q (i) Managing agreement Exliibit R (j) Managing agreement Ex hibit S (k) Agency agreement for managing and oi)erating steel cargo vessels Exhibit T (l) Agency agreement for managing and operating vessels Exhibit U 19. Point No. 14. — "List oj all contracts with private individuals ,or corporations operating Shipping Board vessels either by themselves entirety or in conjunction with the Shipping Board." The answer to this point is shown by "List of managers and/or operators operating United States Shipping Board vessels, either by themselves entirely or in conjunction with the United States Ship- ping Board." (See Exhibit V.) 20. Point No. 15.- — "List oi contracts now ready for conclusion with private interests for the operation of Shipping Board vessels, and list of tentative contracts now under consideration jor juture conclu- sion." The answer to this point is "None." 21. Point No. 16. — "Number of persons now employed by the Shipping Board (a) on shore and (6) afloat." The number of persons employed by the United States Shipping Board and United States Shipping Board Emergency Fleet Corpora- tion are (a) on shore 8,544, (b) afloat 388 (exclusive of crews of approximately 43,000 persons, who are employed by operating agents) . Respectfully, W. S. Benson, Chairm,an. Submitted. A. TwEEDALE, General Comptroller, 14 BEPOBT OF U. S. SHIPPING BOARD, Exhibit A. UNITED STATES SHIPPING BOARD AND UNITED STATES SHIPPING BOARD EMERGENCY FLEET CORPORATION. Statement of gross and net proceeds of receipts from appropriations, allotments, and other sources from inception to Feb. 28, 1921. Item No. 1. Gross receipts: (n) From appropriations— (1) Salaries and expenses $2,675,486.00 (2) Increase of compensation 4.633. 71 (3) I""mer{;encv shipping fund 3, 203, 201 , 000. 00 (4) Sale of capital slock (permanent fund ) 50, OOP, OOP. 00 (5) Total receipts from ai)propriations $3, 255, 881, 119. 71 (6) From allotments hv PrR;ii1ent of United States — (1) National security and defense funds 29,512,426.27 (c) From other sources — (1) J^rom operations of vessels— (a) Voyage and cliartcr revenue and revenues inci- dental to vessel operations 1, 051, 893, 910. 04 (2) From salej— (a) Vessels (schedule 1 ) $322, 829, 695. 68 (6) Surnlus hulls (schedule 2) 5, 979, 443. 62 (f) Cargoes of requisitioned Dutch vessels 4,830,180.97 (rf) Housi!ig projects 9,620,490.00 (e) Materials 33,279,957.71 (/) Total receipts from sales 376,539,767.98 (3) From sundry sources 48. 577, 865. 39 (4) Total receipts from other sources 1,477,011,543.41 2. Tot al gross receipts 4, 762, 405, 089. 39 3. Expenditures directly involved in gross receipts from appropriations, allotments, and other sources; (o) On appropriation and allotment funds covered into United States Treasury on account of statutory limitations 4,016,026.85 (&) On operation of vessels — (1) Voyage expenses, maintenance, charter hire, etc > 777, 250,380. 11 (c) On sales— (1) Vessels (schedule 3) .«371,o00,399. 26 (2) Surplus hulls (schedule 2) 37,380,7)2.67 (3) Housing projects 11 , 644, 303. 28 (4) Materials 26,317,820.39 (5) Total expenditures directly involved in sales 446, 843, 235. 60 ((?> On sundry transactions 22, 966, 837. 05 4. Total expenditures directly involved in gross receipts from appropriations, allot- ments, and other sources 1, 251, 070, 479. 61 5. Gross proceeds from appropriations, allotments, and other sources 3, 511, 328, 609. 78 6. Expenditures indirectly involved in gross receipts from appropriations, allotments, and other sources: (o) On contracts for and / or construction of projects suspended and / or canceled — (1) Vessels — (a) Contracts for vessels canceled . . $S5, 437, 404. 36 (6) Construction of vessels canceled and/or suspended (schedule 4) 62, 784, 944. 07 (c) Total expenditures on con- tracts for and construc- tion of vessels canceled and/or suspended 98, 222, 348. 43 (2) Materials, machinery, plant, and prop- erty 18,399,546.92 (3) Total expenditures on contracts for and/or construction of pro- jects suspended and/or canceled 116, 621, 895. 35 (6) On shrinkage in api)raisal value versus expenditures — (1) Surplus hulls, not sold (schedule 5).... Jl", 622, ,'i35. 01 (2) Materials, plants, and property 81,284,816.82 (3) Total shrinkage in apnraisal value versus ex- nenditures '. 128, 907, 351. 83 (c) On vessels released (schedule 6) "11,607,702.89 Id) On vessels not taken over 15, 581. 24 (f.) On vessels lost (see note 1 ) (schedule 7) 76, 912, 833. 63 (/) On salaries, recruiting, and other expenses (see note 2) 93, 202, 996. 96 7. Total expenditures indircctlv involved in gross receipts from appropriations, allotments, and other sources 427, 268. 361. 90 8. Net proceeds from appropriations, allotments, and other sources 3,084,060,247.88 Note 1. — Includes $13,724,083. 32 for vessels lost while under operation. Note 2. — Includes 815,312,834.98 for losses and damages to cargoes, etc., while under operation. • No allowances for depreciation, insurance, interest, and lost vessels. > Includes expenses incidental to rciiuisitioning of Dutch vessels. REPORT OF U. S. SHIPPING BOARD. 15 Exhibit B. united states shipping board and united states shipping board emergency fleet corporation. Statement showing disposition of net proceeds of receipts from appropriations, allotments, and other sources from inception to Feb. 28, 1921. Item No. 1. Working capital: (a) Invested ill- CD ( Joupral cash and cash funds $45, 023, 874. 64 (2) I'lioxpondod appropriations and allotment funds iu, 778, 10.5. .56 (3) A(!counl s riM vivable 190, 952, 618. 99 (4) Not OS r.'.(-i vable 75, 2.36, 073. 28 (5) ITnited Stalos Liberty and Kingdom of Belgium bonds.. 2,f>04,S12.47 (0) Stock.sand bonds of other companies 002.210.00 (71 Mortgages 6 , 5.55, 218. 38 (8) (Vrtificates of indebtedness 21, 197. 72 (9) Loans and/or advances — (o) Secured 100, 000, 0.53. 35 (b) Secured in part 15,979,983.92 (c) Unsecured 22,900,729.80 ((i) Total loans and/or advances 105,540,707.13 (10) Agents' accotmt current lialances 52,609,221.70 (11) Materials and supplies— (a) Current 30,384,578.85 (6) Surplus and salvage — (1) Hulls, ap- praisal value (schedule 5 of Exhibit A) $10,137,782.83 (2) Materials.... 44, 732, .344. 95 (3) Total surplus and salvage. . 54,870,127.78 (r) Total materials and .supplies 85,254,706.63 (12) Construction in progress— (a) Housing 85,839.24 (6) Drv docks and marine railways 6,765,372.85 (c) Machinery ." 6,818,5.36.42 (d) Vessels (schedule 8) 133, 513, 259. 55 (e) Total construction in progress 147,183,008.06 2. Total working capital 1753, 028, 474. 56 3. Deductions from working capital: (a) Items for which liable — (1) Custodian receipts — (a) Unclaimed wages 1 , 007, 060. 35 (6) Payments on canceled sales, await- ing disposition 4,711, 526. 72 (c) Deposits 2,472,724.02 (d) Total custodian receipts for which liable 8,191,311.09 . (2) Liabilities— (a) Vouchers payable . . $18,720,773.84 (6) Accoimts and chart- er hire payable 61 , 747, 648. 74 (c) Mortgages payable. . 2, 504, 000. 00 ((f) Total liabilities 82,973,422.58 4. Total deductions from working capital 91 , 163, 733. 67 5. Net working capital 661,864,740.89 6. FLxed and donated capital: (o) Invested in — (1) Furniture, fixtures, automobiles, etc 2,12.5,340.87 (2) Land and buildings 14, 240, 763. 41 (3) Transportation facilities 9,193,079.98 (4) Plant and property 138.992,817.95 (5) Dry docks and marine railways 2,171, 075. 29 (0) Fuel oil stations 556,913.24 (7) Vessels (schedule 9) 2,254,908,310.25 7. Total fLxed and donated capital 2, 422, 195, 506. 99 8. Deductions from fixed and donated capital 9. Net fixed and donated capital 2,422,195,506.99 10. Net working and fixed and donated capital 3, 084, 060, 247. 88 16 REPOET OF U, S. SHIPPIXG BOARD. W X "2 Q a H C9 s >^ Q ^ .^ ■< "W o 0 t2 ■? si S CM 5 Sf O M> I-' ... 1 a.2fs Sis - - oT CO M •>;•= CO «|2 o" f2 2" Mrt M CO c &%2 o cm" CO cs~ 1 cm" Sfe ^ -^ -■ ill K C-1 is '-' Ti< o 3 s 6^ 1-^ I^ f^ "^ ^ o 2 O o o 00 5o i CO 1^ CM CM CM 6 OB !3 o ^ >_ U5 I - cxco ccco 1 - 2 |i CO -CM 03 "el' M ^ CM ^5 00 CO o ill s i § 00 P S^'Sf § " " i f 3 3 C.2 .* V. o o -1 t- c c c M 1 c -1 -3 " 1 £ 1 1 1 "c c i c Hi ■323 REPORT OF U. S. SHIPPING BOARD. 17 " -s o S ;z ft - oi (Sfl o" cT fc 3 o 6>: Ifl 5?S" c^" d be 30 o» ^ U US' 10~ ^fe s* 1- 00 Oi o --^ oc o ^ -sl^ MO» «3 c5 c^*"ar (> CO Q^3 -1 C^ rt i6 "3 a> o tc" o" e §fe §° " s 1^ en d c *^ 3 X 8 o "a o 1 a S5 ■a 3 ISe" *^;:i. o K ?» o I -as H < 5 c- C 1 c "•.ji 2 .5 M Cj o 3 O Be« § •a£« 1 So 03 ^ 3 o|2 s" o £ 5 . Bfjw u^ t* s s (1> £«• .3 TJJ5 w s CO oj at2 M I'gs p" CO ■-I # ^ c5 tJ «- t- H OP i Z -f 73 £ 7-; "y fe S.2f = ® 3 o o" o" a Q I- ^^ L^ M) " " C) O ^ « e 3 ■z ■i^-/. CO -T- C3 -'^ f- d ?!'- ^ M _C! t^ C-iC ■n* s 3 Z o -r CO ^.£f3 C^ »r o o o o ccTf- "iT a^° r- X) o — L-> OIC- o c^ ^ 3 z C 1 c 3 •^ O o i) 3. E-i 5 o •o 3 C3 It o ^ 2 o o K IS 1 52880°— S. Doc. 38, 67-1- 18 REPORT OF U. S. SHIPPING BOAKD. n W >« ^' u QQ 2 o^ u i^i o .> K UO fe, £5 ?^ X '=■ tc H s « :^ o < o < s O 5i S 05 3 H o a M — . - - CO - — - ~ CO i (N (U.3 o o O M CICS - - - - - o % si — o a. a 03 to _ _ N - ^ — - - 01 c is «o 3 050 (NO o CO ~ - - 1- — « - O UO c "'S 3 1ft - - — - - - - - - IN to to co' 3 « ■o -- - CA IN r^ o 0) tr I--" m c _ CO (N o a> to co" d (J 1 I r^'sio "3 «:^ si rt g (fl E-i ■gCnZ^iOM ooS E-< O 20 REPORT or U. S. SHIPPING BOARD. s •S si S S ^ u S> S Z w ^ ^ o -c S « p » 3 1 60 3 O lit o c i n n (2 « n CQ > sfSfc g < S 3 ?3 -4 1 o a a c o „ £io-2 Sis ° o i ■z - - - C9 PL, < •z <5 =*_§ -43 -* 4) a el 1 1.9 g 2?2 £^° 1 ^2izz z S c^ d ;5 K-;zz _j 03 -- .-. § CO a 03 03 ^ i_ 2^ 0. £■£<= c 1 • p: PQ c3 04 i m P3 pM C) : U5 10 1 Mi "35 2Zi £lso 1 w PQ • S 0^ «" pa ■^ ii T3 2 ^-* i 03 gis° m n fO CQ fS IX ff fC fC ff CO PQO'tt « «Zk. PC fC PC 1— < J 3 S 59 CO 1(5 8 S^t23 1 1° II 4) 3 ^ rt'S M u C >■ r c pa c 1 (X c 1 ■5 n c 2 c c C 0" _a. c c 2 c a; a 1 (1. 1 ' 1 0. c c a c c 0. Z J. c Z a C 4 1 REPORT OF U. S. SHIPPING BOARD. 21 pe ; « < •>!• s (C n o cQ pa oa •»a« ^ 00 n cc (2 « ffl mn m n §" g t^ s ^1 3 O S o o o § s _2 aJ o C 8 o "a c ■a c « £3 O •2 8 3 « § -a ^ I 22 EEPORT OF U. S. SHIPPING BOARD. Exhibit I. ACCOUNTING SYSTEM, DIVISION OF OPERATIONS. 1. In this outlini' mana£;in<4 agents, operators, or managers will be referred to as a.ufents and the United States Shipping Board Emergency Fleet Corporation as the corporation. 2. A separate set of books are maintained by all agents of the corporation, in which are recorded all accounts receivable, accounts payable, expense accounts, revenue accounts, and any other accounts necessary to reflect all transactions in connection \vith the operation of the corporation's vessels! ;5. The agents also kee]) a separate trust fund out of which all disbursements on account of vessels operated for the corporation are paid and to which all remittances received on account of collections of revenue and other receipts are deposited. 4. Trial balances and supporting schedules are submitted monthly by the agents to the cori)oration. A daily statement of trust fund cash is also submitted to the treasurer of the corporation, so that he is at all times cognizant of the financial con- dition of the agents. The trust fund is subject to the check of the treasurer of the corporation as well as the agent. 5. Sepaiate accounts are maintained for the operating expenses and revenues of each voyage of each vessel under operation by the agent. 6. All expenses incurred and revenue earned by the agent for the corporation are audited at the offices of the agents by the corporation auditors. Audits of disburse- ments incurred and receipts earned in Europe is done by the general comptroller's auditing staff at London, who are familiar with local conditions and practices. After these accounts are audited and found to be in order, the agents close out from their books the expenses and revenues of each vessel and voyage to the corporation. These accounts when submitted are supported with original documents covering disburse- ments and receipts and are taken upon the books of the corporation. 7. From this it can be seen that the books of the agents are designed to function as purely operating records, providing only for the necessary clearing accounts in which to record transactions of the corporation until transferred to the corporation, where the final results are shown. Books and records of the agents are the property of the cor- poration, who may, at any time take same for audit or disposition. 8. All dealings and transactions having reference to accounting features with agents are carried on through the general comi)troller's representative in the district, the district comptroller, who audits and settles accounts with the agents. 9. All district olfices of the corporation keep a separate set of books and records in which are recorded accounts receivable, accounts payable, cash, expense accounts, revenue accounts, and other accounts necessary to reflect the transactions of the cor- poration as carried on by the districts. 10. All disbursements incurred and revenue received are closed out by the districts to the Washington office, where the final results are recorded and shown on the general books. 1 1. Monthly reconciliations are prepared in the district offices reflecting the accounts of agents kept on the books of the corporation and the accounts of the corporation kept on the books of the agents. The reconciliations, together with the reports submitted by the agents, enable the corporation to know the financial status at all times of the agents in so far as it affects the corporation. 12. From the foregoing, it is evident that all transactions of the agents and districts and activities of the Division of Operations are finally reflected on the general books of the corporation at Washington. 13. The general books of the Division of Operations carry all assets of the Division of Operations, properly classifled (except the costs of ships, which are recorded on the books of Division of Construction of the corporation and the United States Shipping Board); the general expense of the Division of Operations, which is made up of the expenses for salaries, olfice supplies, and other atlniinistrative and overhead chargers, segregated by departments of the Division of 0])erations; the exjienses and levenues of each vessel and voyage; liability accounts, reserve accounts, and other accounts necessary to properly reflect the activities of the fleet and the Division of Ojjerations. 14. Separate accounts are maintained of o])erating revenues and expenses showing the gross revenue and gross expenses of each voyage or lay-up period of the various vessels in which th(^ corporation has been interested, from which the net profit or loss of each vessel or voyage is determined. 15. The vessels and voyages are broken down by trades and tonnage, and the gross revenue and gross expenses segregated according to their nature, showing freight REPORT OF U. S. SHIPPTNO BOATlD. SS revenue, passonger revenue, cost of wacjes, cost of fuel, food, maintanenoe, insurance, depreciation, (>tc. ](J. I)(>j)rccia1ioii at llic iircscnt time is a'-cruod on all owned vessels at the arbitrary rale of 10 jxt cciil jxt annum on a valuation of $.!()0 per dead-weight ton for steel vessels and I2i jx-r cent per aiuium on a valuation of $12') per dead-weight ton for wooden vessels Depreciation is being charged against eacli vessel and voyage at the prescribed rat" for tlie lunnlx^r of days that is consumed on a particular voyage; thus results are reflectt'd sliowing the net ])rofit or loss of each owned vessel and voyage before and after depreciation is charged. 17. The corj)orafion carries its own marine, collect freight, cargo insurance, bo that no payments are made to outside underwriters. In this manner considerable saving has been effected. Each ves.sel and voyage is charged with insurance on an arbitrary basis, wliich is con«ifl(>rat)ly less tlian woulil b(! charg(Ml by outside conij)anie8. Against Ihe reserve thus cr(>:iled is charged actual marine damage or lo.ss. IS. A balance sheet and ]);o[it and loss sheet is pre[)ared by consolidating monthly trial balances submitted by agents, the districts, and the balance as reflected on the general books. This statement reflects as closely as possible the financial condition of the Division of Operations. 19. In the ])re))aration of a profit and loss statement of the Division of Operations as at any stated fiscal period, oidy the revenue and expenses on voyages completed to the date of the statement should lie includ(>d. Expenses or revenue on uncom- pleted voyag(\s would be shown as deferred items. The expenses and revenue on voyages begun duriu'i the period, but not (inislied until a subsetpient period, would be included in a subscM)uent profit and loss statement. This procedure is necessary in order to obtain a projier reflection of results of com])leted operations. 20. Profit and loss statements for voyages terminating prior to a specified date can not be ])repared for several months after the completion of the voyages, due to the long delay entailed in securing accountings for disbursements and revenue at foreign ports. Exhibit J. [U. S. S. B. Charter Form No. 2.] UNITED STATES OF AMERICA. Requisition Chart. Code words: Requisiton charter=Retra. Time form=Merof. Bare boat form=Erab. Name of steamship, . Type of steamship, -. D. W. tonnage, . Gross tonnage, . Passenger capacity, . Knots per hour. Date on which vessel entered into pay. — — — . This requisition chatter made and concluded upon in the Distri( t of Columbia the day of , 1917. between of of , owner of the good Ameri- can screw steamship of of tons gross re ister and tons net register, built in , having engines of nominal horsepower, provided with proper ceitificate for hull and machinery, and classed at of about cubic feet cajjacity and tons dead -weight capacity, summer freeboard inclusive of permanent bunkers, capable of makin'/ an average voyage speed when loaded of knots an hour, under ordinary conditions, on a consumption of about tons of coal, or about barrels of oil per 24 hours; and the United States of Ameiica, through the United States Shipping Board — Witne.sseth: Wheieas, by requisition order dated , 1917, pursuant to the urgent deficiency act 15 .Tune. 1917, and the President's Executive order 11 July. 1917. the United States has requisitionecl the \ise of tlie steamship . and the steamshii) has been deliv- ered into jio.^session of the United States pursuant to the re(|uisition; and Whereas, it isdesited by the United States and by the owner to fix the compensation (hereinafter called hire^ which the United States shall ])ay to the owner for use of the steamship so recpiisitioned, and to define by agreement the rights and duties of the 24 REPOET OF U. S. SHIPPING BOARD. Inited States and of the o^ner with resper-t to the operation of the vessel under the requisition, and with respect to other matters in ronnertion therewith; Now, therefore, it is a<;reed as follows- First. The terms and conditions under whirh the vessel is to be operated shall be those contained in the " lime form " hereto annexed: Provukd, however. That at the time of the reiiuisition or at any time thereafter, on five days' written notice, the United States may operate the vessel under the terms and conditions contained in the ' • bare boat form ' ' hereto annexed, such operation to begin when the steamship is in a United States ])ort. Second. In con.-jideration of the compensation provided and the other obligations assumed by the United States hereunder, the owner accepts this requisition charter in full satisfaction of anv and all claims he has or may have against the United States arising out of the requisition and accepts the compensation herein provided for as the just compen-sation required by law: Provided, hoirever, That the acceptance of this requisition charter shall be without prejudice to the claim, if any. the owner may have against the United States arising out of recoveries against the owner by third parties on the vessel's commitments. Third. Upon gi\-ing five days' written notice to the owner the United States may at any time, when the vessel is in a United St.ites port, cancel this requisition charter without prejudice to the accrued rights of either party. Witness to the signature of — , Owner. -. By . Witness to the signature of — The United States Shipping Board, 1. By . Time Form. Whereas the United States has determined to deliver possession of the vessel to the owner to be operated by the owner for the United States; Now, therefore, it is agreed as follows: 1. Period of service — Ves.sel to be completely equipped and fit — Making good defects. — The steamship shall remain in the service of the United States imder the requisition order to be employed as and where the United States may from time to time determine and for such period of time as the United States may determine, but such i)eriod shall not extend beyond the first arrival of the steamship in an American port six months after peace is declared unless she shall be required for Government purposes. The vessel, when placed at the disposal of the United States, as directed by it, shall be or shall forth\vith be made by and at the expense of the owner tight, staunch, strong, and well and sufficiently tackled, appareled, furnished, outfitted, and equipped, and in every respect seaworthy and in good running order and condition ; and shall be fit for the service in which she has usually been employed, having on her delivery United States inspection certificate that she has met all requirements to fit her for the trade in which she is employed at the time of the requisition, except that no such certificate shall be required if she be a foreign-built vessel not at present subject to the United States steamboat-ins])ection laws as provided in the Panama i'anal act, as amended August 18, 1914; and ha\ing a full complement including the master, officers, and crew, for a vessel of her tonnage. Any deficiency in these respects must be remedied fortlnvith by and at the expense of the owner; and any time lost in remedjdng any such deficiency is not to be paid for by the United States. 2. Operation of vessel, xvages, etc. — Special equipment — Complement of vessel. — The owner shall operate the vessel for the United States, shall provide and pay for all provisions, wages, bonuses, and consular shipjsing and discharging fees of the master, officers, and crew, and shall pro\'ide and pay for all cabin, deck, engine room, and other necessary stores, and hall maintain the steamship in a thoroughly efficient state in hull and machinery, tackle, apparel, furniture, and equipment during the service. If the service recpiires any special equipment in addition to that required for the ves- sel's pre\'ious usual service, such equipment 'shall be provided and paid for by the United States. The ordinary crew as required by law to operate the vessel overseas and in trans-Atlantic ser\'ice shall be considered a full comjilement, and any extra men, such as wireless operators, armed guards or others, not recjuired by law for ordi- nary merchant overseas and trans-Atlantic service, shall be paid for by the United States. The owner shall, however, provide proper subsistence for such extra men at reasonable rates to be fixed by the United States. 3. Status of vessel.— The vessel, while being so operated by the owner, shall not have the status of a public ship, and shall be subject to all laws and regulations governing merchant vessels, and the owner shall take all proper steps to prevent any suit or proc- ess from interfering with her service. REPORT OF U. S. SHU'riNO BOARD. 25 When a public ship. — When, liown'er, the rcquisitiont'd vcsael is enf^'a^od in the service of the War or Navy Department, the vesHel .shall have the HtaluH (jf a itublic ship, and alth()uayment of the wages and bonuses of the master, oflicers, and crew as the same may api)ear on the completed articles. 4. NalionaUlij of crew. — So far as practicable, every member of the crew shall be an American citizen, citizens and subjects of enemy or ally of enemy nations always excluded. Full list of crew, with their ratings and nationalities, shall, if requireti, be produced to (lie United States at the time of delivery of the vessel or on the entry into the ])ay of th(» vessel of such member or nuMnberi^ of the crew. 5. United Stales will provide fael, etc. — The United States shall proWde and pay for all coals or other fuel, fresh water, port charges, i)ilotages, agencies, commissions, brokerage, wharfage, and consular charges (except those pertaining to the master, officers, and such part of the crew as the owner is res})onsible for under clause 2), and all other usual expenses paid by charterer under so-called "Government form time charter," except as otherwise provided. The United States shall reimburse the owner for all income or excess prohts taxes in foreign countries ui)on income or prohts derived from the vessel and accruing to the United States. (i. Dunnage. — The United States shall ])ro\ide the necessary dunnage and shifting boards, but the owner shall allow the United States the use of dunnage and shifting boards already on board the steanishi]), the United States to have the ])ri\'ilege of using of the A-essel, shall, if ])ossible, be furnished by the owner. Until reasonable opjxirt unity has been afforded the owner to procure such assignment, hire shall be ])aid on dead-weight toniuige as certified by the owner; any excess or deficiency in such hire to be adjusted upon subsequent determination of summer freeboard. 9. Classification. — A certified statement from a recognized cla.ssification society that the vessel has been classed as fit for her i)re\aous usual service shall, if obtainable at a reasonable cost, be furnished by the owner. Any alterations which are nuide to obtain a class for North Atlantic ser\ace which are not rcfpiired to obtain a class for the vessel's previous usual service shall be made by and at the expense of the United States, but 26 EEPORT OF U. S. SHIPPING BOARD. there shall be no deduction from the hire for time consumed in making such altera- tions. So far as the exigencies of the service will permit, the owner shall do all things necessary to maintain the vessel's class. 10. Increase in crew's wages and bonuses. — In addition to the aforesaid compensa- tion for use of the steamship, the United States agrees to reimburse the owner for any proper increa.ses in wages and bonuses over the standard prevailing August 1, 1917, for master, officers, and crew, the owner to produce satisfactory evidence of such increases in wages or bonuses. 11. Inventory of outfit. — The United States shall have the use of all outfit, equip- ment, and appliances "without extra cost, and the same or their substantial equivalent shall be returned to the owner when the vessel is redelivered in the same or as good order and condition as when received, ordinary wear and tear and damage due to the opera- tion of risks assumed by the owner excepted. An inventory shall be furnished forthwith by the owner to the United States for verification. 12. Insurance of vessel. — The owner shall assume the marine ri.'^ks, including colli- sion liabilities (excepting losses and liabilities arising from war risksV The United States shall assume V/ar risks (including collision liabilities), as exr-Iuded by the follow- ing clause in the American hull policy, 1910 form: "'Warranted free of capture, seiz- ure, arrest, restraint, or detainment, or the (;onsequen''es thereof, or of any attempt thereat (piracy excepted^ and also from all consequences of hostilities or warlike o])Hrations, whether before or after the declaration of war." When, however, the requisitioned vessel is used upon voyages different from those from which she has been taken and for which she was intended, and by reason thereof the owner is compelled to pay an excessive ])reniium in the new service in which she is engaged as compared with other vessels in such serATce of approximately the same age, class, and value, the facts may be shown to the United States Shipping Board, and if the fa<'ts are so found, the United States will pay the excess premium, based upon value not in excess of that on which the vessel has heretofore usually been insured. The value thus insured shall not be deemed in any way indicative of the just compensation to be paid in case of loss or damage due to the operation of risks assumed by the T'nited States. The United States also shall pay additional prem.ium (based upon value not in excess of that on which the vessel has heretofore usually been insured) requi»'ed for voyages outside the following warranties: la) Warranted not to enter or sail from any port or ports, place or places in British North Amerif^a on the Atlantic coast, except Halifax. Louisburg, and Sydney, for purpose of coaling, arming, and compulsory examination by the British Government, and not north of 50° north latitude on the Pacific coast. (b'i ^\arranted not to enter the Baltic beyond 1.'^° east longitude, or sail from a loadintr i)ort therein between October 1 and April 1. (c~* Warranted not to sail for or from any port or place on the north coast of Eiirope between North Cape and Cape Kanin, and not to proceed east of Cape Kanin in the Arctic Ocean. (d) Warranted not to .sail mth Indian coal as carero between March 1 and June 30. (e) Warranted not to sail for or from any port or place in the Bering Sea or Alaska or Siberia (except that vessels may enter or sail from Vladivostok between May 1 and Nov. 1). And if tlie vessel be seaworthy at the time of her delivery under the requisition and at the commencement of the voyage from the United States, but subsequently becomes unseaworthy so as to ronstitate a breach of marine insurance warranty of seavvorthine.ss, and such unsea-.vorthiness be not due to or ])ermitted to continue by the neglect or misconduct of the owner or his agents, and loss or damacre ensui-s which is proximately occasion.^d by such unseaworthiness, the T'nited States will as,sun!e such marine loss, in case the same shall be uncollectible, the extent of which shall be ascertained as of the date of suv-h loss or ilamage. The United Stales Shipping Board shall have the right t« determine finally any question of fact arising under this para- graph. ' , Upon giving five days' written notice the United States may elect to assume all marine ri.sks, including collision liabilities. In the event and to the extent that ♦he ownor shall not be able to secure marine insurance from established insurance companies at rates considered reasonable by the United States Shipping I'oard, the United States shall assume the marine risks, including collision liabilities, until such tiute as the owner shall be able to secure such insurance. Whenever the United States assumes the marine risks, includine collision liabilities, or any part thereof, a deduction which in the ojtininn of the Ignited States Shi])piug Board represent? a proper premium charge shall be maile from the monthly rate of hire. REPORT OF U. S. SHIPPING BOARD. 27 If the vp'sel phall bo lost in a servicp whore she niav have been exposed to both wur and ni:irino risks, in the event of there b^iii',' no evidence ns to whether loss is due to marine or war risk, it shall be ])re8umed to be due to war risk. The owner shall insiire ai'ainst the usual protection and indemnity risks for the full protection of the owner and the United States, the exjiense thereof to be borne 50 per cent by the owner and 50 per cent by the I'nited States. l.S. Insurance o/"(t«((s.— Except when the vessel becomes a public ship, as provided in clause ."}, the owner must provide and pay for all insuran'-e on the master, ofTicers, and crew, as required by law: Provided, however. That the United States shall reim- burse the owner for all war-risk insurance, required by law, on the ma.-ter, ofRcera and crew. ' M. Cnnipinsntion in event of losa or damage— Option to substitute vessel.— Jn case of loss or dania!j;e due to the operation of a risk aa=iumed by the United States, just com- pensation for such loss or damage, with inte)est at fi per cent per annum, commenc- ing 30 days after proof of such loss or damasre. shall be |)aid by the United States in the District of Columbia, interest not to be paid, however, if the owner resorts to any court for the purpo.se of establishin<^ the amount of the hist comj)ensation. The United States shall, however, have the option (to be exercised within 00 days after the date of loss or constructive loss as ])rovided in clause 15) of delivering to the owner within a year after the loss, in lieu of such payment, a vessel of substantially similar tonnage, tyjie, class, and value and of substantially no greater atre (any deficiency in value to be paid for in cash), ]>aying interest in the meanwhile from the date of loss at the rate of G per cent per annum on the value of the lo.st vessel. 15. Constructice total loss. —U the steamship sustains serious damage or other inj\n-v arising from the operation of a risk assumed by the I'nited States, to such extent that the United States shall, without regard to any rule of law, consider her a total loss, the United States shall have the option (to be exercised within 90 days there- after) of declaring the steamship to be a total loss as of the date of the damasre, and of taking over or selling her, and the owner's rights as to compensation shall be the same as provided in clause 14, interest to commence 30 days after proof of the damage. 16. Space and accommodations. — The whole reach of tlie ves.sel"s holds, decks, and other places of loading and accommodations (not to be loaded beyond what she can reasonably stow and carry) shall be at the disposal of the United States, reserving only proi^er and sufficient space for ship's officers, crew, tackle, apparel, furniture" provision.?, stores, and fuel. 17. Duties of master. — The master shall prosecute his voyages with the utmost dispatch, shall render all customary assistance with ship's crew and boats, and use all diligence in oaring for ventilation of the cargo. The master shall be under the orders and directions of the United States or its nominees as regards employment or agency. The United States shall load, stow, and trim the cargo at its own expense and risk under the supervision of the master, who is to have bills of lading for cargoes signed as presented, without prejudice to any term or pro\Tsion of this contract, and the United States hereby aerees to indemnify the owner from all consequences or liabilities that may arise from the master's signing bills of lading or otherwise comply- ing with the orders and directions of the United States. 18. liesponsibilitj/for iun",gntion. — -The master shall obey all orders and instructions which he may receive from the United States or from any of its nominees, and shall in all respects comply with any confidential instructions for masters which may be issued by the United States, but he shall be the agent of the owner in all matters respecting the management, handling, and naWgation of* the vessel, except when the vessel becomes a public ship or is otherwise subject to the immediate orders of the United States in respect to such matters. 19. Sailing directions. —'[he United States shall furnish the master fi'om time to time with all requisite instructions atid sailing directions, and he shall keep a full and complete log of each voyage, which is to be patent to the United States at any time. 20. Complaints.— II the United States shall have reason to be dis.satisfied with the conduct of the master, officers, or any member of the crew, the owner shall, on receiv- ing particulars of comi^laint, investigate the same, and if nece.s.sary make a change in the appointments. In case of an emergency not permitting of such complaint and investi<>ation, the I'nited States shall have power to remove the master, officers, or any member of the crew and to appoint others in their places, but if possible the owner .shall be consulted in the making of such appointments. 21. Supercargo.- The United States may appoint a representative to accon;pany the steaniship, who shall be furnished, free of charge, with first-chuss accommodations, if space permits, and the same fare as provided at the captain's table. 22. Lapse of hire. -In the event of loss of time frcmi deficiency of men or stores, breaJidowu of machinery, stranding, collision, dry-docking for the purpose of exunin- 28 EEPORT OF U. S. SHIPPING BOARD. ins or paintin? underM-att-r T>arts or making any repairs, or from any othpr cause pre- venting the Avorkiim of tho vessel for more than 24 consecutive hours, the hire shall be reduced one-half until the \es,ssl be auain in an eflicient state to resume her service; provided, howev or, that in case of loss of time in a port in the war zone, or at sea, due to any such cause, no such rerluction shall be made if the owner sliall show that he used due dilij^ence to avoid such loss of time: Provided further, That there shall be no reduction of hire on account of loss of time arising from a war risk. Should the vessel be driven into ])ort or anchorage by stress of weather, or from any accident to caruo, detention or loss of time occasioned tliereby shall not be the cause for any cessation or reduction of hire. In any case of loss of time for whir-h no reduction of hire is made, credit shall be given to the United States for any exi)ensfcs saved by the ov.ner durinp; such time. 23. Dry-doching. — The stearrLship shall be dry-docked and her bottom cleaned and painted in the United States whenever the Ifnited States and the master think neces- sary, but at least once in each ei.Q;ht months, ]>rovided the exis^ency permits. 24. Limitation of liability. — Throughout the period of ser\-ice under this Time Form losses or damages arising or occasioned by the following causes shall be always excepted, \i7,, the act of God, perils of the seas, fire on board, in hull, craft, or on shore, barratry of the master or crew, enemies, pirates, robbers or thieves, arrests and restraints of princes, rulers, and peoples, collisions and strandings. explosions, burst- ing of boilers, breakage of shafts, or any latent defect (even if existing at the begin- ning of the voyage, but not discoverable by due diligence) in the hull, boilers, machinery, or appurtenances, negligence, default, or error in judgment of the pilot, master, or crew, or other servants of the owner, in the management or navigation of the steamship. This "time form" is subject to all the terms and provisions of and any or all the exemptions from liability contained in the act of Congress approved February 13, 1893. 25. Gear lights. — The owner shall provide gear for all ship's derricks, and shall maintain the gear of the vessel as fitted. The owner shall provide oil and lanterns for night work or vessel shall give use of electric lights when fitted therewith. The owner shall provide ropes, falls, slings, and blocks necessary to handle ordinary cargo up to 3 tons in weight, but at the expense of the United States. 26. Day and night ^vork overtime. — The vessel shall work day and night, as required, and the steam winches shall be at the service of the United States by day and night, with full steam; whenever possible without additional expense to the owner same to be worked free of cost by the crew. The United States shall reimburse the owner for all overtime. proA'ided the same be certified by the agent or nominee of the United States; or, if no agent is present, by the master, at such standard rates as may be in force from time to time. 27. Alterations and vesseVs condition on redelivery. — The United States may at any time remove or alter, at its expense, all or any of the fittings of the vessel, and may erect any new fittings which may l)e required to render the vessel available for service to the United States, provided that she shall, at the cost of the United States, be redeUvered to the owner in the same or as good order and condition as that in which she was when delivered to the United States, ordinary wear and tear and damage due to the operation of risks assumed by the owner excepted, or just compensation for the damage thus occasioned to the vessel, with interest at 6 per cent per annum com- mencing 30 days after the proof of such damage upon redelivery of the vessel, shall be paid by the United States, in the District of Columbia, interest not to be paid, however, if the owner resorts to any court for the purpose of establishing the amount of the just compensation. 28. Salvage. — All derelicts and salvage shall be for the equal benefit of the United States and the owner, after deducting all expenses incident thereto and the propor- tion due to the master, officers, and crew. 29. General average. — General average, if incurred, shall be settled at New York according to York-Antwerp rules of 1S90 and Antwerp rule of 1903, and as to matters not covered thereby according to the customs and practice of the i)ort of New York. 30. Liens. — The United States shall have a lien on the vessel for all moneys paid and not earned or due to the owner and for all advances and overpayments made, and the United States shall have a lien on all cargoes and goods for the payment of freights and charges, including dead freight, demurrage, forwarding charges, charges for carriage to j)ort of shipment, and for general average claims. 31. No Memlxsr of or Uelogate to Congress, or Resident Commissioner, nor any person employed by the United States Shipping Board is or shall be admitted to any share or ])art of this contract, or to any benefit which may arise therefrom, but under j)roviKions of section IKi of the act of Congress approved March 4, 1909, this etipuluiion, eo far as it relates to Members of or JJelegates to Congress, or llesideut REPORT OF U. S. SHIPPING BOARD. 29 rnmmissinnors, shall not extend or be construed to extend to any rontrart made with an incorporated company for its general benefit. 32. Arhilrnliyn. — Any (lis]iiite of law or fact arisinir under this "time form." except as to the rate of hire and the compensation for actual or constructive total loss of the ves- sel, and except asto matters expressly left to be decided by the United StatesShipping Board, shall Ix; referred to the arbitration of three persons, out* appointed by the owner, one l)y the United States, and the third by the two so chosen. They" may proceed in any manner determined by themselves, "and their decision, or that "of any two of them, shall be final, and for the ])urpose of enforcing any award hereunder the agreement may be made a rule of coiu't. Such arbitration shall be a (•ondition precedent to the commencement of any action. SPECIAL, CLAUSES — PASSENGER S.IIPS. 33. The owner of a passenger vessel shall ])ermit the use. \vithout extra cost therefor, of all cooking ut(uisils ami facilities already aboard the vessel. pro\'ided the same or their substantial equivalent be redelivered to the owner in the same or as good order and condition as when received, ordinary wear and tear and damage due to the operation of risks assumed by the owner excejited. An inventory of such property shall be furnished forthwith by the owner to the United States for verification, 34. The own(>r of a passenger vessel, if rerpiested by the United States, whenever passengers are on board the vessel, shall operate and" maintain the saloon mess, for which the owner shall be compensated at reasonable rates to be fixed by the United States. 35. The owner of a passenger vessel, if requested by the United States, shall operate and maintain a trooj) mess, in which the meals served shall be the equivalent of the authorized United States Ai-my garrison ration, and for which the owner shall be compensated at reasonable rates to be fixed by the United States. 36. Whenever passengers are carried (troops or others) the United States shall receive all the earnings therefrom, and pay all expenses incidental thereto which are not assumed by the owner under the other provisions of this "time form,"' in- cluding repairs and uj^keep of fittings (suljject to ordinary wear and tear but not breakage), and shall also furnish any additions it may require; or, in the alternative, shall make a special arrangement with the owner on a pt^r head basis. SPECIAL CLAUSES — TANKERS. 37. Trmls to be oil tight. — The owner guarantees that the tanks are oil tight at the time of delivery and shall take every precaution to maintain them in this condition during the ser\'ice. Init shall not be responsible for leakage. 38. The owner shall facilitate the discharge of oil fuel to.siich ships as the United States shall direct, and shall pro\'ide a Y piece with the necessary reducers for each discharge up to the maximima number which can be used simultaneously. Bare Boat Form. 1. Period of service — Vessel to he enmpleteh/ equi pjiednnrf fit — Mnl-inoaoofldcfrrts. — The steamship shall remain in the service of the United States under the requisition order to be emplo\ ed as and where the United States may from time to time determine and for such period of time as the Ihiited States may determine, but such period shall not extend beyond the first arrival of the steamship in an American port six months after peace is declared, unless she shall be required for Government purposes. The vessel, when placed at the disposal of the United States, as directed by it, shall be or .shall forthwith be made at the cx])ense of the owner tight, staunch, slrnng, and well and sufficiently tackled, appareled, furnished, outfitted, and equipped, and in every respect seaworthy and in good running order and condition, and shall be fit for the service in whicli she has usually been employed, having on her deliverv TTnited States inspection certificate that the steamship has met all requirements to fit her for the trade in which she is employed at the time of the requisition, except that no .-uch ceitificate shall be required if she Ije a foreign-built vessel not at present subject to the United States steamboat inspection laws as provided in the Panama Canal act, as amended August 18, 1914. Any deficiency in these respects must be remedied forthwith at the expense of the owner; and any time lost in remedying such deficiency is not to be paid for by the United States. 2. Operation. — The United States, at its sole expense, .shall man, operate, \'ictual, and supply the vessel. 3. Port 'charges. — The United States shall pay all port charges, pilotages, and all other costs and expenses incident to the use and operation of the vessel. 30 REPORT OF U. S. SHIPPING BOARD. 4. War and marine risJ:s. — The United States shall assume Nar, marine, and all other risks of -tvhatsoever nature or kind, includinsr all risk of liability for damage occasioned to other vessels, persons, or pro])erty. 5. I'ayment of hire. — The United States shall pay for the use of the steamship at the monthly rate which shall from time to time be established by the United States Shippiiisr Board for a vessel of her description, commencint; on and from the hour when she shall be ready for delivery under the requisition (and is so reported to the United States) and at and after the same rate for any part of a month, hire to continue until the hour at which the vessel may be ready for redelivery at a United States port (and is so reported to the owner). If the United States Shippine: Board shall hereafter lower the rate of hire from that in effect on October 15, 1917, the owner shall have the option of cancelino this requisi- tion charter as of the date of such reduction, without prejudice to the rights of either Payment of the hire shall be made in the District of Columbia, in cash, monthly, as earned, at the end of each calendar month. If the vessel is lost, hire shall be paid up to and including; the date of her loss (if the time of her loss be uncertain, then up to and including the date she is last heard from). Dtcid-iveight tonnage. — Dead-weight tonnage shall be based on summer freeboard assigned or to be assigned with reference to North Atlantic ser^d^e, according to the standards of any recognized classification society; proper evidence of such assign- ment, together with a true copy of the dead-weight scale of the vessel, shall, if possible, be furnished by the owner. Until reasonable opportunity has been afforded the oM'ner to procure such assignment, hire shall be paid on dead-weight tonnage as certified by the OAvner, any excess or deficiency in such hire to be adjusted upon subsequent determination of summer freeboard. 6. Classification. — A certified statement from a recognized classification society that the vessel has been classed as fit for her usual pre^^ous service shall, if obtainable at a reasonable cost, l)e furnished by the owner. Any alterations which are made to obtain a class for North Atlantic service which are not required to obtain a class for the vessel's previous usual service shall be made by and at the expense of the United States, but there shall be no deduction from the hire for time consumed in making such alterations. So far as the exigencies of the service will permit, the United States shall do all things necessary to maintain the vessel's class. 7. Fuel and stores. — The United States shall accept and pay for all fuel and consum- able stores in cood order and condition on board at the time of vessel's delivery under the requisition order, and the owner shall, on redelivery, pay for all such supplies left on board at the current market price at the respective ports of delivery and re- delivery. An inventory of all such supplies shall be furnished forthwith by the owner to the tJnited States for verification. 8. Outfit and equipment. — The United States shall have the use of all outfit, equip- ment, and appliances wdthout extra cost, provided same or their substantial equivalent shall be returned to the owner when the vessel is redelivered in the same or a? good order and condition as when received, ordinary wear and tear excepted. An inven- tory of such property shall be furnished forthmth by the owner to the United States for verification. 9. Compensation in event of loss or damage. — In case of actual or constructive loss as provided in clause 10, due to the operation of a risk assumed by the United States, just compensation for such loss, with interest at 6 per cent per annum, commencing 30 days after the date of such loss, shall be paid by the United States in the District of Columbia, interest not to be paid, however, if the owner resorts to any court for the purpose of establishing the amount of the just compensation. The United States shall, however, have the option (to be exercised within 90 days after the date of such actual or constructive loss) of delivering to the owner within a year after such loss, in lieu of such payment, a vessel of substantially similar tonnage, type, class, and value and of substantially no greater age (any deficiency in value to be paid for in cash), l)aying interest in the meanwhile from the date of loss at the rate of 6 per cent per annum on the value of the lost vessel. In case of damage (not constituting an actual or constructive loss) due to the opera- tion of a risk assumed by the United States, the vessel shall, at the cost of the United States, be restored to the owner at the expiration of her service under the requisition, in the same or as good order and condition as that in which she was when delivered to the United States, ordinary wear and tear exce[)ted, or just compensation for the damage, with interest at 6 j)er cent per annum, commencing 30 days after proof of such damage upon redelivery of the vessel, shall he paid bv the T^'nited States in the Dis- trict of Columbia, interf"^t not to be paid, however, if the owner resorts to any court for the purpose of establishing the amount of the just compensation. REPORT OF U. S. SHIPPING BOARD. 31 10. Comttrurtirc total loss. — If the 'Steamship nuatains serious damage or other injury to the extent that the United States shall, without re.Lrard to any ruh; of law, consider her a totiil Ions, the United State.^ shall have the option (tr than such repairs as may have been necessary in order to jilace said tank steamshii)s in good order and condition as provided in said re(iuisition('harters) of the said tank steam- 8hii)s since th(» resi)ective dates when said r(H|uisition charters may have become effective resjH'ctively as aforesaid, shall be excluded from any such account. Nothing containetl in this agreement shall be construed to cancel or affect any insurance which has been heretofore taken out by the owner from insurance companies or other in- surers, or to impair in any way any claim of tlie owner which has heretofore accrued or may hereafter accrue \\ith res]iect to any such insurance, or any claim of the owner or any insurance company or an\' insurer against any third party, which has hereto- fore accrued or which may hereafter accrue, in respect to any loss or damage to any tank sleamshi]-) co\ered by this agrei'iiient. The owner shall not, by the execution of said re(|uisitiou charters or any accounting, i)ayment, or adjustment thereunder, be ileemed to have accepted the compensation })rovided for in the "bare boat form" of such charters as the just com])ensation required by law, unless it shall so elect, nor shall it be deemed to have made any voluntary ])ayment precluding action under clause "Third" hereof for the just compensation recpiired by law, it being understood, however, that the validity, effect, and ap])lication of the requisition order of October 12, 1917, in accordance with the terms thereof, as to any vessel covered thereby, shall be recognized l)y the owner for all i)ur])oses of this agreement. Second. Exc(']it during sui'h ]K'riod as said tank steamships may be or may have been oi)erated in transatlantic ser\iee, or in some service other than that of the owner, said tank steamships .shall be o])erated in the possession and service of the owner and for the sfjle risk and account of the owner free from any obligation to account here- under to the United States Shi])])ing ]'>oard. and the use of said tank steamships in such case by the owner shall l^e in full siitisfaction of the obligations of the United States and the owner under said requisition ajiplicable to such period, and/or under any oi)eraliiig agreement as contemplated by clause "Fourth" hereof. Third. W'iiile oiierated in transatlantic service, or in some service other than that of the owner, said tank steamshi])s shall be o])erated under the terms and conditions of the "bare boat form" of recpiisition charter (U. S. S. B. Charter Form No. 3). If the owner refuses to accept the hire established by the United States Shipping Board 88 the just comj)ensalion recpurtfd by law, the United States shall ])ay to the owner 75 per cent of such hire as th(> same becomes due and the owner shall be entitled, in accordanct^ with the law, to sue the United States to recover such further sum as will constitute, when added to said 75 per cent, the just compensation required by law. Said "bare boat form" of requisition charter shall be deemed el'fective since noon of October 15, 1917, as 1o said tank steamships whib^ em])l<)yed in Iransatlantic 8er\dce or in some service other than that of the owner, from tht' timi; the owner's cargoes are discharged and ves.sels are put in good order and condition, as ])rovided in clause "First" of said "bare boat form" until cargoes are discharged and vessels are put in like good order and condition as six-cified in said "bare boat form" and are ready for rcflelivery Xo owner at a jwrt not less ad\antageous to the owner than the port of de- livery, but said "bare boat form" shall not be deemed effective as to any tank steam- shij) trading to and from American ])orts that sailed on its voyage before noon, October 15, 1917, until return to a I'nited Stales port u])on completion of such voyage; and said "bare ix'at form" shall not be deenu-d effeciive as to any tank steamshi]) returning light or in jallasl until it reaches owucr'b loading port and is put in good order and REPOKT OF U. S. SHIPPING BOARD. 33 condition aa aforpsaifl, or until it is, prior to the arrival at such port, diverted from its course to the ])rejudice of the owner. I'ourth. When ojjeraled in transatlantic service, or in some service other than that of the owner, the owner, when re(|ueste(l, a,T3e, class, and value and of sulistantially no greater age (any deficiency in value to be paid for in cash I. paying interest in the meanwhile from the date of loss at the rate of 6 per cent per annum on the value of the lost vessel. In case of damage (not constituting an actual or constructive loss) due to the opera- tion of a risk assumed by the I'nitv'd States, the -vessel shall, at the cost of the United States, be restored to the owner at the expiration of her service under tliis ''bare boat form' ' in the same or as good order and condition as that in which she was when deliAcred to the United Stut'.s under this "liarc boat form." ordinary wear and tear excepted, or just compensition for the damage, with interest at G per cent per annum, commencing 150 days after proof of such damage upon redelivery of the ves- sel, shall lie ]iaid l>y the United States in tlie District of Columbia, interest not to be jiaid, however, if the owner resorts to any court for the purpose of establishing the amount of the just compensation. 10. Conslructive total loss. — If the steamship sustains serious damage or other injury to the extent that the United States shall, without regard to any rule of law. con- sider her a total loss, the United States shall have the o])tion (to be exercised within no da\s thereafterl of declaring the steamship to be a total lo.'-s as of the date of the damage and of taking over or selling her, and the owner "s rights as to compen.sation shall lie the same as provided in clause 9, interest to commence 30 days after the date of the damage. 11. Alterations and vesseVs condition on redeliver]/. — The United States may at any time remove or alter, at its expense, all or any of the fittings of the vessel, and may erect any new fittings which may be required to render the vessel availal^le for service to the United States, provided that the vessel shall, at the cost of the I'nited States, be restored to the owner at the expiration of her .service under this "bare boat form" in the same or as good order and condition as that in which she was when delivered to the United States under this "liare lioat form." ordinary wear and tear excepted, or just compensation for the damage thus occasioned to the vessel, with interest at 6 per cent per annum, commencing 30 days after the proof of such damage upon redelivery of the vessel, shall be paid by the United States in the Dis- trict of Columbia, interest not to be paid, however, if the owner resorts to any court for the purpose of establishing the amount of the just compensation. 12. Liens. — The United States sliall have a lien on the vessel for all moneys paid not earned or due to the owner and for all advances and overpayments made, and the United States shall have a lien on all cargoes and goods for the payment of freights and charges, including dead fnnght. demurrage, forwarding charges, charges for car- riage to jiort of shipment, and for general average claims. 13. Arbitration. — Any disimtc of law or fact arising under this "bare boat form," except as to the rate of hire and the compensation for actual or constructive total lo.ss of the vessel, matters expressly left to bo decided by the United States Sliipping l^oard, and the rights of the owner to sue reserved under clause 5, shall lie referred to the arbi- tration of three ]iersons. one appointed by the owner, one by the United States, and the third by the two so chosen. They may procei'd in any manner determined by them.selves. and their decision, or that of any two of them, shall be linal. and for the piirpo,se of eiifori'ing any award hereunder the agnx'iiient may be made a rule of court. Such arldtration shall l>e a condition precedent to the commencement of any action . 14. No Member of or Delegate to Congress or Resident Commissioner, nor any per- son employed by the United States Shi]iping Board, is or sliall lie admitted to any share or part of this contract or to any lienefit which may arise therefrom, but under the ]irovisioris of section 1 Ki of the act of Congress ap])roved ?ilarch I, 1000. this stipu- lation, so far as it relates to Memliers of or Delegates to Congress or Resident Com- missioners, shall not extend or lie construed to extend to any contract made with an incoriioratetl company for its general lienelit. 15. Tanks to he oil tight. — The owner guarantees that the tanks are oil tight at the time of delivery. 10. Clear. — To facilitate the discharge of oil fuel, liie owner .shall provide a Y piece, with necessary redueers, for each discharge ui:i to tiie maximum number which can be used simultaneously. REPORT OF U. S. SHIPPING BOARD. 37- Exhibit M. [U. S. S. B. Charter Form No. 6.) United States of America. requisition ciiakter fou sailing vessels Name of sailing ^•essel Type of sailing vessel - Dead-weight tonnage - Gross tonnage . Date on which vessel entered into pay This reciuisitiou charter made and concluded upon in the District of Tolumbia, the • — day of — , 1918, between of (city), ^(state), owner of the good American (insert type of vessel) of , of — tons gross r(!gister and — tons net register, built in , having auxiliary engines of nominal liorsepower, provided with proper certilicate for hull and machinery, and classed at of about cubic feet capai ity and ;■ tons dead- weight capacity, summer freel)oard, inclusi\e of ])erniancnt bunkers, if any; and the United States of America, through the United States Shipping Board — Witnesseth: Wliereas, by requisition order, dated — — — , 1918, the United States has requisi- tioned the use of the sailing vessel , and the vessel has been deli\ ered into pos- session of the United Statt'.s pursuant to the requisition; and Wliereas, it is desired by tlie United States and by the owner to fix the compensa- tion (hereinafter called hire) which the United States shall pay to tlie owner for use of the vessel so requisitioned, and to define by agreement the rights and duties of the I'liited States and of the owner with respect to the operation of tlie vessel under the requisition and with respect to other matters in connection therewith; Now, therefore, it is agreed as follows: First. The terms and "conditions under which the vessel is to be operated shall be those contained in the ''time form" hereto annexed; unless the United States elects to operate the vessel under the terms and conditions contained in the "'bare boat form " hereto annexed. Upon giving t\\ e days' written notice, the United States may at any time, or from time to time, change from the "time form" to the ''bare boat form," or vice versa, the cliange to become effective when the vessel is in port. Second. In consideration of the compensation provided and the other obligations assumed by the United States hereunder, the owner accepts this requisition charter in full satisfaction of any and all claims he has or may ha\ e against the United States arising out of the requisition and accepts' the compensation herein provided for as the just comjKUisation recpiired by law: Provided , however, That the acceptance of this requisition charter shall be without prejudice to the claim, if any, that the owner may ha\'e against the United States arising out of recoveries against the owner by third ])arties on the vessel's commitments, it being distinctly understood that the United States does not in any way admit any liability in respect to any such claim. Third. U]»on giving five days' written notice to the owner the United States may at any time, when the vessel is in a United States port, cancel this requisition charter without ]M'ejudice to the accrued rights of either party. Witness to (he signature of— , Owner. -. By . Witness to the signature of — United States Shipping Board. -— . By . TIME FORM. Whereas the United States has determined to deliver possession of the vessel to the owner to be opei-ated by the owner for the United States: Now, tlierefore, it is agreed as follows" 1 . Period oj service — Vessel to be complrtehi equipped and fit. — The vessel shall remain in the service of the United States under the requisition order to be employed as and where the United States may from time to time determine, but such period sViall not extend beyond the first arrival of the vessel in an American port six montlis after peace is declared unless she shall be retjuired for Government pur]>oses. The vessel mav be tov/ed as and where the United States may direct. The vessel, when placed at the disposal of the United States, as directed by it, shall be or sliall forthwith be made by and at the expense of the owner tight, staunch, strong, and well and sufiiciently 45i.G65 38 REPORT OF U. S. SHIPPING BOARD. tackled, apparaled. furnished, outfitted and equipped, and in every respect seaworthy and in fjood running order and condition; and shall be fit for the ser\dce in ■«'hich she has usually been employed. ha\ins: on her delivery United States inspection certificate that she has met all requirements of law for such ser^dce, and having a full comi>lement. including the master, officers, and crew for a vessel of her tonnage. Anv deficiency in these respects must be remedied by and at the expense of the owner, ans. Monthly or as soon as possible after the termination in a United States port of any voyage in the service of the War or Navy I)e])ailment the owner shall furnish the United States as a voucher a statement by the United States 8hip])ing commissioner which shall certify^ the dates and amounts of the payment of the wages and bonuses of the master, officers, and crew as the same a])pear on the completed articles. 4. Na'ionalitv of crew. — So far as practicable every member of the crew shall be an Amear-ati citizen, citizens and subjects of enemy^ or ally of enemy- nations alway^s excluded. Full lists of crew, witli their ratines and nationalities, shall, if required, be produced to the United States at the time of delivery of the vessel or on the entry into the pay of the vessel of such member or members of the crew. 5. United States vnll provide fuel, etc. — The United States shall provide and pay for all coals or other fuel (except galley), fresh water, port charges, pilotages, agencies, commissions, brokerage, wharfage, and consular charges (except those pertaining to tlu' master, officers, and crew) and all other usual expenses paid l)y charterer under BO-called "(iovernment form time charter," exce])t as otlierwise provided. The United States shall roimbui'se the owner for all income or excess-profits taxes to foreign countiii's upon iiuomo or i)rofits derived from the vessel and accruing to the United States. (). Dunnage. — Tiie United States shall pro\-ide the necessary dunnage and shifting boards, but the owner shall allow the United States the use ()f dunnage and shiftimr boards ahvadv on board tlie vessel. The United States shall have the i)rivilege of using tlu' shifting boards for dunnage, but sliall make good any damage tliereto. 7. F}trl i,n dcliverii awl redelivery. — The Ignited States shall accept and pay for all fuel ('except galley) on bo.ard at the lime of delivery under the requisition order, aixl the owiu'r sliall on the redelivery of tiie vessel ])ay for all fuel left on hoard (except galley) at tiie current m nket price at the respective ports of delivery and redelivery. A Htalemeiit ()f such fuel shall be furnished forthwith by the owner to "the United States for verification. S. J'ai/inrnt ort('(l to the owner). REPORT OF U. S. SHIPPING BOARD. 39 If the United Stitoa Shippins; Board shall hereafter lower the time form rate of hire from that in effect on the date of tlu> reciuisition, the owner shall have tiie option, to he exercised within live days after notice, of cancelin'j; this "time form," such cancellation to hecome effective when vessel is next in port and free of cargo. Payment of hire shall he mad(> in the District of ('olunil)ia in cash, monthly, as earned, at the end of eacli calendar montli. if tlie vessel is lost, liire siiail he paid up to and inchidini^ the date of her lo.ss if the; time of lier loss is uncertain, then up to and including the date she is last heard from). Dead-tveight tonnage— Deiid-\:ci'j-}\t capacity shall he based on summer freeboard assigned or to be assigned with reference to North Atlantic service, according to the standards of any recognized classification society, hut shall not be deemed to exceed the dead-weiglil carrying capacity of the vessel as (let"rmine(l from actual performance when all underwriters' requirements are complied with. Proper e\idence of assign- ment, together witli a true cojiy of the dead-weight scale of the vessel, sliall, if po.ssible, be furnished by the owner. Until reasonable opportunity has been afforded the owner to procure such assignment, hire shall be ))aid on dead-weight tonnage as ceitilied by the owner, any excess or deficiency in such hire to be svibsc piently adjusted. 9 Clussifirolion. — A certified statement from a recognized classification .society that the vessel has been classed as fit for her previous usual service shall, if obtainable at a reasonable cost, be furnished by the owner. So far as the exigencies of the ser\dce will permit, the owner shall do all things necessar\' to maintain the vessel's class. 10. Iiiveutori/ of outfit . — The United Slates shall have the use of all outfit, ecjuip- ment, and ajijiiiances without extra cost, aiul the sanu> or their substantial equivalent shall be returned to the owner when the vessel is redelivered in the same or as gootl order and condition as when received, ordinary wear and tear and damage due to the operation of risks assumed by the owner excepted. An inventory shall i)e furnished forthwith by the owner to the United States for verification. 11. Insuranrc of vessels.— The owner shall assume the marine risks, including collision liabilities (excepting losses and liabilities arising from war risks). The "Jnited States shall assume war risks (including collision liabUities) as excluded by the following clause in the American hull policy, 1916 form: "Warranted free of caj:)ture, seizure, arrest, restraint, or detainment, or the consequences thereof, or of any attempt thereat (piracy excepted) ami also from all consequences of hostilities or vvarlike operations, whetber before or after the declaration of war." The United States shall pay excess marine insurance premiums (based upon value not in excess of that on which the vessel has heretofore usually been insured) required for voyage outside the following warranties: (a) Warranted not to enter or sail from any port or ports, place or places in British North America on the Atlantic coast, except Plalifax, I>ouisburg, and Sidney, for purposes of coaling, arming, and compulsory examination by the British Government, and not north of 50 degrees north latitude on the Pacific coast. (b) Warranted not to enter the Baltic beyond 13 degrees east longitude, or sail from a loading port therein between October 1 and April 1. {(■) Warranted not to sail for or from any port or place on the north coast of Europe between North Cape and Cape Kanin and not to proceed east of Cape Kanin in the Arctic 0( can. (d) Warranted not to sail with Indian coal as cargo between March ] and June 80. {e) WarrantcMl not to sail for or from any port or place in the Behring Sea or Alaska or Siberia (except that vessels may enter or sail from Vladivostok between May 1 and November I). Upon giving five days' written notice the United States may elect to assume all marine risks, including collision liabilities. In the event and to the extent that the owner shall not be able to secure marine insurance from established insurance companies at rates considered reasonable by the United States Shipping Board, the United States shall assume the marine risks, including collision liabilities, until such time as the owner shall be able to secure insurance. Whenever the United States assumes the marine risks, including collision liabilities, or any part thereof, a deduction which in the opinion of the United States Shipping Board represents a jjrojjcr premium charge shall be made from the monthly rate of hire. If the vessel shall be lost in service where she may have been exposed to both marine and war risks, in the event of there being no evidence as to wnether loss is due to marine or war risk, it .shall be presumed due to war risk. The owner shall insure against the usual protection and indemnity risks for the full protection of the owner and the United States, the expense thereof to be borne 50 per cent by the owner and 50 per cent by the United Statea. 40 REPORT OF U. S. SHIPPING BOARD. 12. Insurance of crew. — The owner must provide and pay for all insurance on the master, officers, "and crew required by law; pro\ided, however, that the United Sutes "shall reimburse the owner for any war risk insurance required by law on the master, officers, and crew. ■ 13. Comprnsdlion in event of loss or damage — Option to stibstitute vessel. — In case of actual or con-tructive total loss or of such total loss as is proAdded for in clause 14, due to the oiieration of a risk assumed by the United States, just compensation for such loss, with interest at (5 per cent per annum, commencing 30 days after the owner shall have submitted formal proofs of such loss, in such form as the United States Shippins; Board may presc ribe, shall be paid by the United States in the District of Columbia, interest not to be paid, however, if the owner resorts to any court for the purpose of eslablishintr the amount of the just com])en.';ation. The United States shall, however, have the option (to b(> exorcised within 90 days after the proof of such loss) of deliverins,' to the owner within a year after such loss, in lieu of such payment, a vessel of substantially similar tonnage, tyj^e, class, and value, and of substantially no greater age (any deficiency in the value to be paid for in cash), pay- ing interest in tlie meanwhile from the date of lo.«s at the rate of 6 per cent per annum on the value of the lost vessel. In case of damage (not constituting an actual or constructive total loss, or such loss as is pro\dded for in clause 14, due to the opera- tion of a risk assumed by the United States, the vessel shall, at the cost of the United States, be restored to the owner at the expir.ition of her service under the requisition in the same or as good order and condition as that in which she was when delivered to the United States, ordinary wear and tear excepted, or just compensation for the damage, with interest at fi per cent per annum, commencing 30 days after proof of such damage upon redelivery of the vessel, shall be paid by the United States in the District of Columbia, interest not to be paid, however, if the owner resorts to any court for the purpose of establishing the amoimt of just compensation. 14. Con.'ilructive total loss at option of United iStates. — If the vessel sustains serious damage or other injury arising from the operation of a risk assumed by the United States, to such extent "that the UnitcMl States shall, without regard to any rule of law, consider her a total loss, the United States shall have the option (to be exercised within 90 days thereafter) of declaring the vessel to be a total loss, as of the date of the damage, and of taking over or selling her, and the owner's rights as to compensa- tion shall be the same as provided in clause 13, interest to commence 30 days after proof of the damage. 15. Space accommodations. — The whole reach of the vessel's holds, decks, and other places of loading and accommodations (not to be loaded beyond what she can reason- ably stow and carry) shall be at the disposal of the United States, reser\dng only proper and sufficient space for ship's ofHcers, crew, tackle, apparel, furniture, provisions, stores, and fuel. 10. Duties of master. — The master shall prosecute his voyage with the utmost dis- patch, shall render all customary assistance with ship's crew and boats, and use all diligence in caring for ^■erltilation of the cargo. The master shall be under the orders and directions of the Ignited States or its nominees as regards employment or agency. The I'nited States shall load, stow, and trim the cargo at its own expense und(>r the supervision of the master, who is to sign bills of lading for cargoes as pres(>nled, without prejudice t(i anv term or provision of this contrat^t, and the United States hereby agrees to indemnify the owner from all consequences or ]ial)ili1ies that may arise from the master's signing bills of lading or otherwise c^omplying with the orders and directions of the United States. 17. Responsihilily for navigation. — The master shall obey all orders and instructions which he may receive from the Uniterl States, or from any of its nominees, and shall in all respects cSinply wdth any conlidential instructions for masters which may be issued l)y the United States, but he shall i)e the agent of the owner in all matters respecting the management, handling, and navigation of the ves.sel. IS. Sailing directions. — The United States .shall furnish the master from time to time with all requisite instrnctions and sailing directions, and he shall keep a full and complete log of (!ach voyage, which is to be patent to the United States at any time. 19. Complaints. — If the United States shall have reason to be dissatisfied with the conduct of the master, officers, or any member of the crew, the owner shall, on receiv- ing particidars of complaint. invc>stigate the same, and if necessary make a change in the appointinents. In case of an emergency not permitting of such complaint and investigation, the United Slates shall have pow(T to remove the master, officers, or any member of the crew and to a[)p(»int others in their places, but if possible the owner .shall be consnited in tlie nuiking of siuii ajipointiiu'nts. 20. Supcrcurgo. — The United States may apj)oint a representative to accompany the ves,sel who shall be furnished, free of charge, wdth first-class accommodations, if space ])criiiit.s, and the same fare as provided at the captain's table. REPORT OF U. S. SHIPPING BOARD. 41 21. Lapse of hire. — In the event of the loss of time from deficiency of men or stores, detention by legal process, fire, explosion, breakdown or damage to hull, machinery, or e(iuipment, stranding, drydocking for the purpose of examination or painting bot- tom, or by any other cause preventing the full working of the vessel for more than 24 consecutive hours, the payment of hire shall cease for the time thereby lost, and if upon the voyage the .speed be reduced by defect in or breakdown of any |)art of her hull, machinery, or equipment the time so lost and all extra expen.se connected there- with shall be deducted from the hire. There shall, however, be no suspension of hire on account of loss of time arising from a war risk, provided that credit shall be given to the United States for any expenses saved by the owner during such time. 22. Dry-dockin(] . — The vessel shall be dry-docked and her bottom cleaned and painted in the Ignited States whene\cr the United States and the master think neces- sary, but at least once in each eight months, provided the exigency permits. 23. lAm'dation of liahUihj. — Throughout the period of service under this "Time Form," losses or damages arising or occasioned by the following cau.ses shall be always excepted, viz, the act of (Jod, perils of the seas, fire on board, in hull, craft, or on shore, barratry of the master or crew, enemies, pirates, robbers or theives, arrests and restraints of princes, rulers, and peoples, collisions and strandings, explosions, bursting of boilers, breakage of shafts or any latent defect (even if existing at the beginning of the voyage) not discoverable by due diligence, in the hull, boilers, machinery, or appurtenances, negligence, default or error in judgment of the pilot, master, or crew, or either servants of the owner, in the management or navigation of the ves.se]. This "Time Form" is subject to all the terms and provisions of and any or all the exemp- tions from liability contained in the act of Congress approved February 13, 1893. 24. (knr lights. — The owner shall provide gear for all ship's derricks and shall main- tain the gear of the vessel as fitted. The owner shall provide oil and lanterns for night work or vessel shall give use of electric lights when fitted there\vith. The owner shall provide ropes, falls, slings, and blocks necessary to handle ordinary cargo. 25. Dai/ and night work-. — Oreriivu. — The vessel shall work day and nighit, as required, and her winches, donkey engine, and other machinery shall be at the ser\dceof the 1 'nited States by day and night, with full power; whenever po.ssible without additional expense to the owner, same to be worked free of cost by the crew. The United States shall reimburse the owner for all overtime, provided the same be certified by the agent or nominee of the United States, or, if no agent is present, by the master, at such standard rates as may be in force from time to time. 26. Alterations and vesseVs condition on redelivery.- — -The United States may at any time remove or alter, at its expense, all or any of the fittings of the vessel, and may erect any new fittings which may be required to render the vessel available for service to the United States: Provided, That she shall, at the cost of the United States, be redelivered to the owner in the same or as good order and condition as that in which she was when delivered to the United States, ordinary wear and tear and damage due to the operation of risks assumed by the owner excepted, or just compensation for the damage thus occasioned to the vessel, with interest at 6 per centum per annum com- mencing 30 days after the proof of such damage upon redelivery of the vessel, shall be paid by the United States, in the District of Columbia, interest not to be paid, however, if the owner resorts to any court for the purpose of establishing the amount of just compensation. 27. Salvage. — All derelicts and salvage shall be for the equal benefit of the United States and the owner, after deducting all expenses incident thereto and the propor- tion due to the master, officers, and crew. 28. General average. — General average, if incurred, shall, unless otherwise agreed, be settled at New York according to York-Antwerp rules of 1890 and Antwerp rule of 1903, and as to matters not covered thereby according to the customs and i)ractice of the port of New York. 29. Liens. — The United States shall have a lien on the vessel for all moneys paid and not earned or due to the owner and for all advances and overpayments made, and the United States shall have a lien on all cargoes and goods for the payments of freights and charges of every kind, including dead freight, demurrage, forwarding charges, charges for carriage to ])ort of shipment, and for general average claims. 30. No Member of or Delegate to Congress, or Resident Commi.ssioner, nor any person employed by the United States Ship})ing Board is or shall be admitted to any share or part of this contract, or to any benefit which may arise therefrom, but under provisions of section 116 of the act of Congress approved March 4, 1909, this stipulation, so far as it relates to Members of or Delegates to (,'oR>iress, or Resident Commissioners, shall not extend or be construed to extend to any contract made with any incorporated company for its general benefit. 42 REPORT OF U. S. SHIPPING BOARD. BARE BOAT FORM. 1. Period of service — Vessel to he completely equipped and fit — Mahing good defects. — The vessel shall remain in the sendee of the United States under the requisition order to be employed as and where the United States maj', from time to time, deter- mine, and for sucli period of time as the United States may determine, but such period shall not extend beyond the first arrival of the vessel in an American port six months after peace is declared, unless she shall be required for Government purposes. The vessel may be towed as and where the United States may direct. The vessel, w^hen placed at the disposal of the United States, as directed by it, shall be or shall be made at the expense of the owner tight, staunch, strong, and well and sufficiently tackled, appareled, furnished, outfitted and equipjicd, and in every respect seaworthy and in good running order and condition and shall be fit for the service in which she has u.siially l>een employed, and having on her delivery United States inspection certifi- cate tliat she has met all reciuirements of law for such service. Any deficiency in these respects must be remedied at the expense of the owners, and any time lost and any expense incurred in remedying such deficiency, either at the time of delivery or at any time thereafter, is not "to be paid for by the United States. 2. Operate.— The United States, at its sole expense, shall man, operate, victual, and supply the vessel. 3. Port 'charges. — The United States shall pay all port charges, pilotages, and all other costs ancl expenses incident to the use and operation of the vessel. 4. War and marine risks. — The United States shall assume war, marine, and all other risks of whatsoever nature or kind, including all risk of liability for damage occasioned to other vessels, persons, or pro])erf,y. 5. Payment of hire. — The United States shall pay for the use of the vessel at the monthly rate which shall from time to time be established by the United States Shii)i)iiig Board for a sailing vessel of her description, commencing on and from the hour when she shall be ready for delivery under the requisition (and is so reported to the Unil('(l States) and at and after the same rate for any part of a month, hire to continue until Uie hour at which the vessel may be ready for redelivery at a United States port (and is so reported to the owner). If the United States Shipping Board shall hereafter lower the bare-boat form rate of hire from that in effect on th(^ date of the requisition, the owner shall have the option, to be exercised within five days after notice, of canceling this "bare-boat form," as of the date of such reduction, without prejudice to the rights of either party, such cancellation to become effective when vessel is next in port and free of cargo. Payment of hire shall be made in the District of Columbia, in cash, monthly, as earned at the end of each calendar month. If the vessel is lost, hire shall be paid up to and including the date of her loss (if the time of her loss be uncertain, then up to and including the date she is last heard from). Dend-weighl tonnage. — Dead-weight capacitv shall be based on summer free board assigned or to be assigned with reference to North Atlantic service, according to the standards of any recognized classification society, but sliall not be deemed to exceed the dead-weiglit carrying capacity of the vessel as determined from actual performances when all underwriters' requirements are complied with. Proper evidence of assign- ment, together with a true copy of tlie dead-weiglit scale of the vessel, shall, if possible, be furnislied by tiio owner. Until reasonivble o]:»portunitv has been afforded the owner to ])rocure such assignment, hm sliall be paid on dead-weight tonnage as certi- fied by the owner; any excess or (h^ficioncv in such hire to be siibs(K:juently adjusted. 6. Classification. — A certified statement from a recognized classification society tJiat the ves.sel has Ix^en classed as fit for lier usual jjrevioua service, shall, if obtainable at a reasonable cost, be furnished by the owner. So far as the exigencies of the service will permit, the United States shall do all things necessary to maintain the vessel's class. 7. Fuel and stores. — The United States shall accept and pay for all fuel and consum- able stores in good order and condition on board at the time of vessel's delivery under the requisition order, and the nwner slia!^, on redelivery, pay for all such su})plies left on board at the furrent market price at the respective pons of delivery and redelivery. An inventory of ail such suppli(^s shall be furnished forthwith by the owner to the United Statw for verification. 8. Outfit and rr/ulpmcnt . — The United States shall have the use of all outfit, equip- ment, aiui afipliaiices witlioiit extra eost, i)rovided same or their substantial equivalent shall ))(' returned to the owner wlien tlie vessel is redelivered in the same or as good order and coriditinn as when received, ordinary wear and tear excepted. An inven- tfjry of Kueh projxfrty shall be furnished forthwith by the owner to the United States for verification. 9. Compensation in event of loss or damage. — In case of actual or constructive total loss, or of such total loss as is jirovided for in clause 10, due to the operation of a risk REPORT OF U. S. SHIPPING BOARD. 43 assumed by the United States, just rompensation for such loss, with interest at 6 per cent per annum commencin,!? 30 dayn after the owner shall have submitted personal proofs of such loss, in such manner as the United States Shipping Board may prescribe, shall be paid by the United States in tlie District of Columljia, interest not to be paid, however, if tlie owner resorts to any court for the purpose of establishing the amount of just compensation; the United States Shipping Board shall give notice to the owner of the loss of the vessel as soon as oflicial advices thereof is received . The United States shall, however, have the option (to be exercised within 90 days after the date of loss) of delivering to the owner witliin a year after such loss, in lieu of such [jaynient, a vessel of substantially similar tonnage, type, class, and of substantially the same age (any deficiency in value to bo paid for in cash'), i>a>ing interest in the meanwhile from the date of loss at the rate of 6 per cent per annum on the value of the lost vessel. In case of damage (not constituting an ar tual or constructive total loss, or such total loss as provided for in clause 10, due to the operation of a risk assumed by the United States) the vessel shall, at the cost of the Unit(>d States, be restored to the owner at the expiration of her service under the rf'quisition, in the same or as good order and condition as that in which she was when di'li\-ercd to the X'nitcd States, ordinary wear and tear excepted, or just coin])ensation for the damage, with interest at 6 per cent per annum, commencing 30 davs after proof of such damage upon redelivery of the vessel, shall be paid by the United States in the Di> t rict of Columbia, interest not to be paid, however, if the owner resorts to any court for the purpose of establishing the amount of the just com])ensation. 10. Co7islnictive or total lonx at option of United Slates. — Tf the vessel sustains serious damage or other injury to th(> extent that the United States shall, without regard to any rule of law, consider her a total loss, the United States shall have the o])tion (to be exercised within 90 days thereafter) of declaring the vessel to be a total loss as of the date of the damage, and of taking over or selling her, and the owner's rights as to com- pensation shall be the same as provided in clause 9, interest to commence 30 days after the date of the damage. 11. Alteraiions and vesseVs condition on redelivery. — The United States may at any time remove or alter, at its expense, all or any of the fi ttings of the vessel and may erect any new fittings which may be required to render the vessel available for service to the United States, provided that the vessel sliall, at the cost of the United States, be restored to the owner at the expiration of her service under the recpiisition in the same or as good order and condition as that in which she was delivered to the United States, ordinary wear and tear excepted; or just compensation for the damage thus occasioned to the vessel, with interest at 6 per cent per annimi, commencing 30 days after the proof of such damage upon redelivery of the vessel, shall be paid by the United States in the District of Columbia, interest not to be paid , however, if the owner resorts to any court for the purpose of establishing the amount of the just compensation. 12. Liens. — The United States shall have a lien on the vessel for all moneys paid and not earned or due to the owner and for all advances and overpayments made, and the United States shall have a lien on all cargoes and goods for the payments of freights and charges of every kind, including dead freight, demurrage, forwarding charges, charges for carriage to port of shipment, and for general average claims. 13. No Member of or Delegate to Congress or Resident Commissioner, nor any person employed by the United States Shipping Board, is or shall be admitted to any share or part of this contract, or to any })enefit which may arise therefrom, but under the provisions of section 116 of the act of Congress approved 4 March, 1909, this stipulation so far as it relates to Members of or Delegates to Congress or Resident Commissioners, shall not extend or be constriied to extend to any contract made with an incor- porated company for its general benefit. Exhibit N. [U. S. S. B. cliartcr. Form E.) United States Shipping Board. sailing vessel time charter. This charter party, made and concluded upon in the District of Columbia the ■ day of — , 1918, between acting on behalf of the French Government, agent for the — of , owner of the French sailing vessel —- of tons gross register, and tons net register, and classed at of tons dead-weight capacity, and the United States of America, through the United States Shipping Board, charterer. 44 REPORT OF U. S. SHIPPING BOARD. Witnesseth. That the OAvner agrees to let and the charterer agrees to hire the vessel from tlie time of delivery until the termination of this charter, as hereinafter pro- vided, the charterer to have the lil>eil\- of suliletting the v(ssel for all or any part of the time covered ])y the charter party, liut the charterer remaining responsible for the fuUillnient of all its engagenients to the owner heteunder. The Acssel to be placed at the disposal of the charterer at , in such dock or such wharf or place as may be directed by the charterer (where she may safely lie afloat at all times of tide or where it is customary for similar siye vessel to lie safe aground). 1. The vessel shall remain in the service of the charterer under this (barter party, to be employed as and where the charterer may frcm time to time deteimine. The vessel, wheii placed at the disposal of the charterer, as directed 1 y it. thall 1 e tight, staunch, strong, and well and sufiiciently tackled, apparehd, fullu^llcd, outlitted, and eciuipped. and in every respect scaw(>rthy, and in good running older and con- dition and tit for service, and having a full c(nip](m(nt, inch dirg the master, ollicers. and crew for a vessel of lier tonnage. Any deficiency in these respects must be remedied forthwith by and at the expense of owner, and any time lost in remedy- ing such deliciency is not to be paid for by the charterer. 2. The owner shall provide and pay for all provisions, wages, bonuses, and con- sular shijiping and discharging fees of the master, oflicers, and crew, and shall pro- vide and pay for all cabin, deck, engine-room, and other necessaiy stores, and shall at owner's expen.sc maintain the vessel in a thoroughly efluient state in hull and machinery, tackle, apparel, fumituie. ap])lianccs, and equi] nunt duiiiig theservice. 3. Citizens or subjects of enemy or ally of enemy nations shall always be excluded from the crew. 4. The charterer shall provide and pay for all fuel, except palley fuel, fresh water for donkey boiler, port charges, pilotages, agencies, c( mmissicns. 1 ickeiage, wharf- age, and consular charges (except these peitaining to the master, cfl'cere, and crew), and all other usual expenses paid by charterer under so-called "( oveinmcnt form time charter," except as otheiwise provided. 5. The charterer shall provide the necessary dunnage and shifting boards, but the OM'iier shall allow the charterer the use of dunnage and shifting l;cards already on board the vessel, the charterer to have tl:e privilege of using the shifting boards for dunnage, but making good any damage thereto. fi. The vessel to have leave to be towed as and when charterer may direct. 7. The charterer shall accept and pay for all fuel, except galley fuel on board at the time or date of delivery, and the owTier on redelivery of the vessel shall pay for all such fuel left on board at ■ — — — per ton (2,LM0 pounds). 8. The charterer shall have the use of all outfit, equipment, and appliances with- out extra cost, provided same or their sulistantial equivalent shall 1 e returned to the owner when the vessel is redelivered in the same or as good order and condition as when received, ordinary wear and tear and damage due to the operation of risks a.ssumed by the owner excepted. An inventory of such propertj^ shall lie furnisl.ed forthwith bj' the owner to the cbarterer for verification. 9. The charterer shall pay for tbe use of the vessel at the monthly rate wbich shall from time to time be established by tbe I'nited Stales Fbi] ]ung Boaid for a vessel of her description, commencing on and from the hour that she shall be ready for delivery (aiul is so reported to the I'nited States) and at and after th(> same rate for any part of a month, hire to continue until the hour at wbich the vessel may be ready for redelivery at a United States port (and is so reported to the owner). I'ntil further notice .suc:h monthly rate shall be per ton on the vessel's dead-weight capacity. If the I'nited States Sbipping Hoard shall hereafter lower the rate of hire, the owner shall liave tbe option of canceling tins charter party as of the date of such reduction, williout prejudice to the rights of either party. Payment of hire sball be made in tbe District of Columbia, in cash, monthly, in advance, on tbe lirst of each calendar nioiitb. if the vessel is lost, hire sball be paid up to and including the date of her loss (if the time of her loss be uncertain, then up to and including the date she is last heard from). Should the vessel bo on her voyage toward the port of redelivery at the time a payment of hire becomes due, said payment shall be made for such length of time as the owner and charterer or their agents may agree upon as the estimatecl time nec- essary to complete the voyage, and when the vessel is redelivered to owner any difference shall be refunded by owner or paid by the charterer, as the case may require. 10. The owner shall assume the marine ri.sks, including collision liabilities ('except- ing losses and liabilities arising from war risks). The cbarterer shall assume war risks (including collision liabilities), as excluded by the following clause in the American hull policy, I'JKi form: "Warranted free of capture, seizure, arrest. REPORT OF U. S. SHIPPING BOARD. 45 restraint, or detainmriit, or Iho consfqiicnre tlioronf, or of any atfrmpt thereat (piracy excepted ), and also from all eimscciucnees of hostilities or warlike operations, whctlier before or after declaralicn of war.'' The owner sliall insure ai^ainst the usual protection and indemnity risks for the full protection of the owner and chailerer, Ihe expeni-c thereof to he home 50 per cent by the owner aiid HO per cent by ihe charterer. 11. In case of loss or damage due to the operation of a risk assiimed by iJie charterer, compensation for the loss or damage shall be paid by the United States in the District of ("olumbia, upon due proof of such loss or damage. 12. If the vessel sustains serious damasre or other injury arisiu'j: from the operation of a risk assumed by the charterer, to such extent that the charterer sliall. without regard to any rule of law, consid(>r lier a total loss, tlie charterer shall ha\ e the ojition (to be exorcised witliin 90 days thereafter) of declarin.tr the vessel to I'e a total loss as of the (Uxte of tlio damage and of taking oa er or selling her, and the owner's right as to compensation shall be tlie same as pro\ ided in clause 1 1. 13. The whole reach of the yessel's holds, docks, and other jdaces of loading and accommodations (not to be loaded beyond what she can reasonably stow or carry) shall be at the disposal of the charterer, reserving only pro])er and sufhcient space for sJiip's oflicers, crew, tackle, ajiparel, furniture, j)roAisions, stores, and fuel. N. The master shall prosecute his voj'ages with the utmost dispati'h, shall render all customary assistance with shii)'s crew and l)oats, including handling of cargo at such ports where it is customary, and use all diligence in caring for ventilation of the cargo. The master shall be under the orders and directions of the charterer or its nominees as re^^ards employment or agencj'. The charterer shall load, stow, and tiim the cargo at its own expense under the superxision of the master, who is to gign bills of lading for cargoes as presented, without prejudice to any terms or proAision of this charter party, and the charterer hereby agrees to indemnify the owner from all conseciuences or liabilities that may arise from the master's signing bills of lading or otherwise complying with the orders and directions of the charterer. 1"). 'J'he master shall o))ey all orders and instructions which he may recei-\e from vlie charterer or fi'om any of its noniinees, and shall in all resjjects comply with any confidential instructions for masters which may be issued by the charterer, but he shall be th.e agent of the owner in all matters respecting the management, handling, and na\ igation of the vessel. 16. The charterer shall fiu'nish the master from time to time with all requisite ihstTTictions and sailing directions, and the master shall keep a full and complete log of each a oyage, which is to be patent to the charterer at any time, and in addition the master shall furnish de<'k and engine abstracts. 17. if the charterer shall haAO reason to be dissatisfied with the conduct of the master, officers, or any member of the crew, the owner shall, on recei\ ing particulars of com])laint, inAestigate the same, and, if necessary, make a change in the appoint- ments. IS. The charterer may appoint a rei)resentatiA e to accompany the vessel who shall be finnished, free of charge, with proper accommodations and the same fare as pro- vided at the master's table. 19. In the eA'ent of loss of time from deficiency of men or stores, fire, explosions, breakdown, or damages to hull, appliant I's, or equipment, grounding, detention by average accidents to ship or cargo, dry-docking for the purpose of examination or painting bottom, preventing the operation of tlie vessel, the payment of hire shall cease for the time thereby lost. 20. The A essel shall (at owner's expense) be dry-docked and her bottom cleaned and painted whenever necessary but at least once in each six months, i)rovided the exigency permits. 21. Cash for master's ordinary disbursements at any port shall be advanced for ship's account by charterer, if required, and such advances may be deducted from the hire ujion ])resentation of proper Aouchoi's. 22. The act of God, eu'^mies, fire, explosions, restraint of princes, rulers, and people, and all dangers and accidents of the seas, rivers, machinery, boilers, and steam navi- gation, and errors of navigation throughout this charter party always mutually excepted. This charter party shall be subject to all the terms and conditions of and any or all exemptions from lial)ility contained in the act of Congress appro\ ed February 13, 1893. 23. The owner shall provide gear for all ship's derricks and shall maintain the gear of the vessel as fitted. The owner shall proA ide oil and lanterns for night work. The owner shall provide ropes, falls, slings, and blocks necessary to handle ordinary cargo. 24. The vessel shall work day and night, as required, and the winches and donkey engines, if AOssel is pro\ided with same, shall be at the service of the charterer by day and night, with full steam. 46 EEPOET OF U. S. SHIPPING BOARD. The charterer shall reimburse the oMner for all overtime as certified by the char- terer's at:ent or, if no a»ent is present, by the master, at such standard rates as may be in force from time to time. , , , , ^i, 25. All derelicts and salva,2e shall be for the equal benefit of the cnarterer and the owner after deducting all expenses incident thereto and the proportion due to the master, officers, and crew. 26. Should the aosscI put into a port of distress or be under average, she is to be consigned to charterer or its agents, paying the usual charges and commissions therefor, and in case a [general average statement be required the same is to be adjusted at New York by adjusters, to be appointed by charterer, who are to attend to the settle- ment and collection of the average subject to customary charges, general average, if any, to be adjusted according to York- Antwerp rules of 1890; and as to matters not therein pro% ided for, according to the usages and customs of the port of New York. 27. If the owner of the vessel shall have exercised due diligence to make the vessel in"all respects seaworthy and properly manned, equipped, and supplied, it is hereby atrreed that in case of loss or damage residting from fault or negligence of the pilot, inaster, or crew, in the navigation or management of the vessel, or from latent or other defects, or unseaworthinessof the vessel, whether existing at time of shipment or at the beginning of the voyage but not discoverable by due diligence, the consignees or owner of the cargo shall not be exempted from liability for contribution in tieneral aA erage or for any special charges incurred, but, with the shipowner, shall contribute in general average and shall pay such special charges as if such loss or damage had not resulted from such fault, negligence, latent or other defect, or unsea- worthiness. 2S. The charferer shall have a lien on the vessel for all moneys paid and not earned or due to the owner and for all advances and o\er])ayments made, and the charterer shall haA-e a lion on all cargoes and goods for the payment of freights and charges, including dead freight, demurrage, forwarding charges, charges for carriage to port of shipment, and for general average claims. 29. U]>on giving thirty days' written notice, either party shall have the right to terminate this charter party "at any time, when the vessel is at a United States port, without prejudice to the accrued rights of either jiarty. 80. Any dispute of law or fact arising under this charter party shall be referred to the arbitration of three persons, one appointed by the owner, one by the charterer, and the third by the two so chosen. They may proceed in any manner determined by themselves, and their decision, or that of any two of them, shall be final, and for the puriwse of enforcing any award hereunder the agreement may be made a rule of court. Such arbitration .^^hall be a condition precedent to the commencement of any action. , Owner. Witness to the signature of — Witness to the signature of — By , Agent for Owner. United States Shipping Board, By , Director of Operations. Exhibit O. United State.s Shipping Board Emergency Fleet Corporation — Tugboat Man- aging and operating agreement. This managing and operating agt'cement. made this day of — ■ — — ■, by and between the United States Shipping Board Emergency Fleet Corporation, the first party, hereinafter called the corporation, and , of , the second i)arty, here- inafter called the manager, witnesseth: Whereas the corporation is operating the tugboat and certain other tugboats and desires to make an agency contract with the manager for the husbanding, man- aging, and operating of said vessel and such other ves.sels as it has assigned and may a.«,«ign to the manager for such purposes; -Now. therefore, it is agreed as follows: Mrst. The corporation hereby appoints the manager as its agent for the husbanding, managing, and operating of the tugboat and of such other vessels as the corpora- tion has assigned, and may from time to time assign, to the manager for such purpose. Second. The manager, as such agent — (a) Shall take proper delivery of the ves.sel from the Operation or Construction Division of the corporation, or from the owner, builder, or anyone else having control, as the corporation may direct. REPORT OF U. S. SHIPPING BOARD. 47 (h) Rliall act as the manager and operator of tlio vey.sel in such trade or service as the corporation shall direct, being subject to the orders of the corporation as to voyages, tows, ]iriorities, charters, rates of towage, and other charges,' and as to all matter? connected with the use of the vessel. ((•) Shall exercise due diligence to man, equip, victual, 8U])))ly, and operate the vessel, and to provide and pay for all provisions, wages, and cojisular. shii)i)ing, and discharging fees of the master, ofilcers, and crew; all cabin, deck, engine room, and other necessary stores; all fuel, fresh water, port charges, pilotages, agencies, commLs- sions, and consular charges; and all other costs ajid expenses (except those expenses to be paid by the manager out of his owji funds covered by the compensation and fees hereafter j)rovided for) ])roperly incident to the management and operation of the vessel, including war-risk insurajice, if any, required by law on the master, officers, and crew. {d) Shall exercise due diligence to maintain the vessel in a thoroughly efficient stale in hull, machinery, tackle, api)arel, furniture, and equi))nK'nt, procuring for and on behalf of tlio cor]ioratiou the necessary labor and material to effect ordinary running repairs aud rej)lacenients. No extraordinary repairs or expenses shall be made or incurred, and no alteration in hidl, machinery, or equipment shall be made, by the manager, except in serious emergency, without first securing in writing the authorization of tli(; corporation. (e) Shall exercise due diligence to see that no damage to the vessel arises from careless or improper use, handling, or berthing of the vessel. (/) Shall execute in customary form such towage and other contracts as may be directed or authorized by the corporation. (g) Shall collect all towage charges and other moneys due or payable to the cor- poration for the use of the vessel or in any way connected therewith; and shall in proj^er cases take steps to obtain adeqiuite security to cover claims of the cori)oration in general aA'erage or otherwise against any persons, or vessels or other property. (h) Shall hold all moneys collected on behalf of the corporation, and shall deposit the same in national banks, or banks which are members of the United States Federal Reserve Association, as a separate trust fund to be designated " — , Shipping Board fund." and shall not mingle the same ■with other moneys owned or held by the manager, and shall make from such funds all disbursements hereinafter authorized to be paid by or to the manager for account of the corporation, and shall, promptly after the dispatch of each vessel, or at such other times as may be directed, account to the corporation for moneys received and disbursed. No items not supported by vouchers aggregating more than $10 will be allowed. (i) Shall keep separate accounts in such manner and form as may be prescribed by the corporation of all moneys collected and disbursed, and accord to accountants and other representatives of the corporation access to all books and papers, and render such assistance in the examination thereof as the corporation may require. (;') Shall exercise due diligence to do or cause to be done all things which are cus- tomarily done by the owner, or the owner's agent, of similar vessels, attending to all matters in connection vnth the management and operation of the vessel. Third. The corjjoration, in consideration of the services or things herein agreed to be performed, shall pay compensation and allow commissions as follows: A. COMPENSATION FOR MANAGEMENT. For each vessel, $350 per month, and at the same rate for each part of a month. Siich compensation shall be payable to the manager from the day of delivery of each vessel to the manager until redelivery or loss. B. OPERATING COMMISSION. For all towacre and charter hire scnired and/or collected by the manasrer and author- ized by the corpf>ration, a romm.ission of 2^ per cent shall be paid the manager by the corporation on the gross amount collected. C. COMMISSIONS FOR ADVANCING FUNDS. If the manager is without funds of the corporation, either as the manager or as the operator, for the disbursement of the vessel in foreign or dependency ports, and funds are there advanced by the manager, or procured from others, a commission will be allowed in accordance with the usual commissions paid in the respective ports, as certified to the United States Shipping Board by the American Steamship Association and verified by the comptroller. 48 REPORT OF U. S. SHIPPING BOARD. Fourth. WTiciiPver the corporation may legally have the advantage of any existing or future contracts of the manager for the purcha'^e of material, fuel, supplies, or equijunent. it . the corporation without unreasonably interfering \\-ith the require- ments of other ^ ossels owned or ojierated by the manager. Fifth. The corporation shall ]>romptly reimburse the manager for all disbursements projierly incurred on it,s liehalf as authorized in this agreement. Sixth. All salvaties shall lie for the benefit of the corporation. This provision, however, shall not he construed to deprive the manager of any right to salvage reserved to the manaeer as vessel owner under any charter. Seventh. The corporation shall have the right, at any time, to terminate this agree- ment as to any or all vessels assigned to tlie manager, and to assume forthwnth control of any or all of the vessels, and to collect directly all freights, moneys, or other charges remaining unpaid. The manager, however, in such case shall adjust, settle, and liqui- date the i-urrent l)usiness of the vessels if so required hy the corporation. Eighth. Upon giving the coriioration 30 days' ^vritten notice, the manager shall have"^the risht to terminate this agreement, such termination not to liecome effective ai^ to any vessel until its arrival at a United States port. The manager shall, however, if required by the corporation, adjust, settle, and liquidate the current business of the vessel. Ninth. The manager shall, at the time of execution and delivery of this agreement, or at any other time, if so rerpiired by the corporation, fm-nish a satisfactory bond in such amount as the corporation may order, for the faithful and proper discharge of the obligations and duties hereunder assumed. Tenth. This agreement shall apply to the management of all vessels assigned to the manager, sailing from United States ports on or after the 1st day of February, 1919, United States Shipping Board Emergency Fleet Corporation. Witness as to signature: Witness as to signature: By , Director of Opcralioiis. By , The Manager. Exhibit P, United States Shipping Board Emergency Fleet Corporation — Operating Agreement. This agreement made this da\' of by and between the United States Shipping Hoard Emergency Fleet Corporation, party of the first part, hereinafter called the corporation, and of , party of the second part, hereinafter called the agent, witnesseth: Whereas, the corporation is operating the vessel and certain other vessels and desires to make a contract of agency with the agent for the conduct of the business of said vessel and such other vessels as it has assigned and may assign to the agent for sucli purposes. Now, therefore, it is agreed as follows: First. The corporation herel)y appoints the agent as its agent for the operation of the vessel and such other vessels as the corporation has assigned and may from time to time assign to the agent for such purpose. Second. The corporation will provide and pay for all provisions, wages, and consular shipping and discharging fees of the master, officers, and crew; and for all the cabin, deck, engine room, and other necessary stores; and will maintain the vessel in a thoroughly cMicient state in hull, machinery, and equipment, for and during service. Third. The agent — (a) Shall act as such agent and operate the vessels in such trade or service as the corporation shall from time to time direct, the agent being at all times subject to the orders of the cor])oration as to voyages, cargoes, priorities of cargoes, charters, rates of freight and other charges, and as to any and all matters arising out of or connected with the use of the vessels. (6) Shall, as agent for the corporation, provide and pay for all the fuel, fresh water, stevedoring, port charges, pilotages, agencies, commissions, consular charges, except those pertaining to the master, odicers, and crew, and all other expenses which are usually borne by a time charterer of a vessel. REPORT OF U. S. SIlirPING BOARD. 49 (c) Shall exercise due (iiiigence to see that all freight is prepaid, excej^t when other- wise instructed by the corporation, or wliere the prevailing customs under the ])ar- ticular circumstances of the 8i)ecific vo\ag(^ ami trade from a foreign or dr'])eiidency port are to the contrary, in which case freight may be made payable at deslinalion in accordance with the usual practice. All freight in cases where cargo is i)erishal)le or not worth the freight charges must be pre]>aid. (d) Shall issue or caused to be issued to shippers, without prejudice to the terms of the charier party covering any vessel o])erate(i liereunder, customary freight contracts and bills of lading, and shall exercis(! due diligence to see that such documents con- tain all exem])tions and stipulations usual to the particular trade or service in which the vessel may be engaged, ami reserve to the coii)oration a lien upon all cargoes for the pay- ment of freight, primage charges, dead freiglit, demurrage, forwarding charges, advance charges for carriage to port of shi]iment, for contributions in general average and special charges on cargo, and for all Hues or damages which the vessel or cargoes may incur by reason of illegal, incorrect, or insufficient marking or addressing of packages, or descrijition of their contents, and make the shipments subject to customary war clauses, to the act of Congress of February ]?,, Jaid by him as agent for the vessel other than requisition hire, and take ])roper general average security. (/) Shall hold all money collected on behalf of the corporation, and shall de])osit the same in national banks, or banks which are members of the United States Federal Reserve Association, as a se]uirate trust fund, to be designated " Ship]>ing Board fund," and shall not mingle the same with other moneys owned or held by the agent, and shall make from such funds all disbursements hereinafter authorized to be paid by the agent for account of the corporation to others than the agent. (g) Shall keep separate accounts in such a manner and form as may be pres'^ribed by the corporation of all mone>s collected and disbursed, and accord to accountants and other representatives of the corporation access to all books and papers, and render such assistance in the examination thereof as the corporation may require. (h) Shall promptly after the dispatch of each vessel, or at such other time or times as may be directed, account to the corporation for all moneys collected on its behalf, and, with sujtporting vouchers, account for all disbursements reasonably and properly made on behalf of the corporation as in this agreement authorized. No items unsup- ported by ^^oucher8 will be allowed which in the aggregate exceed $10. (i) Shall, in order to prevent speculation in freight or passenger space, exercise due diligence to see that all freight contracts show the name of actual shipper, commodities, quantities, and freight rates, except that in coastwise trade of the United States and in the West Indies trade the freight rate need not be shown on permits, but must be shown on the bills of lading and must be the rate in current tariffs; and no space allotted to the original shipper may be sublet on any terms or conditions whatsoever without the consent of the corporation. If the agent shall knowingly carry any cargo without the consent of the corporation, the space for which has been sublet by the original shipper upon any terms or conditions whatsoever, the agent shall receive no commission, fee, or other compensation for any services rendered as the operator of the vessel during the voyage. (i) shall exercise due diligence to see that all bills of lading when iasued agree with the freight (Contracts, that all wharf receipts for freight are nonnegotiable, and that a freight contract or permit is issued for each sliipmeut, 52880°— S. Doc. 38, G7-1 i 50 REPOET or U. S. SHIPPING BOARD. (1-) Shall exercise due diligence to perform or cause to be performed all of the customar\' agency duties concerned with loading and discharging cargoes at all ports included in the vesscrs itinerary, and do or cause to be done all things necessary for tlio protection and safeguarding of the interests of the corporation. P\)urth. The corporation, in consideration of the ser\aces or things agreed to be performed hereunder by or through the agent, shall pay the agent compensation and allow payment of compensation to others in accordance with the schedules which shall fi"om time to time be established by the United States 8hi])]Hng Board. Until further notice compensation shall be allowed and paid as herein below provided. A. COMMISSIONS AND FEES PAYABLE TO THE AGENT. I. On nil vessels c.rrcpt tnnlrrs. — {a) P'rom United States ports: As soon as possilde after dispatching any vessel from any United States jiort, the agent shall forward to the cor])oration a freight list showing the number of revenue tons of cargo carried and tile total amount of freight money, and a commission to the agent based on the average rate of freight will be allowed on the total freight list as follows: (1) On general cargo: 2} per cent on average freight rate of $5 or less per ton; 2\ per cent on average freight rate of $5.01 to $10 per ton; 2 per cent on average freight rate of $10.01 to $20 per ton; li per cent on average freight rate of $20.01 to $40 per ton; IJ per cent on average freight rate of $40.01 to $G0 per ton; 1^ per cent on average freight' rate of $()0.01 to $80 per ton; 1 per cent on average freight rate of $80.01 to $100 per ton; \ per cent on average freight rate of $100.01 or over per ton. (2) On bulk'cargo the rate of commission shall be one-half of the above rates. The term "bulk cargo " as used in this agremeent shall include a cargo, a substantial part (amounting to 50 per cent or more) of which is loaded at one port and discharged at one port, when covered by one bill of lading, and delivery is made without regard to marks or numbers. WTienever the excess over such substantial part is general cargo the commission payable on general cargo as above shall be paid on the freight earnings on such excess. The term "bulk cargo" as used in this agi'eement shall include all United States Government cargoes, Avhen vessel is exclusively laden therewith. Where Govern- ment cargoes are carried and no charge or a nominal charge is made therefor, the com- missions and fees shall be based upon a freight schedule established in each case by the United States Shipping Board for such purpose. (h) Into United States ports from foreign and dependency ports, a fee of $250 for each vessel, on general and bulk cargo, will be allowed. Th(^ term "dependency ports" as used in this agreement shall include ports in the Hawaiian Islands, Porto Rico, the Virgin Islands, Guam, the Canal Zone, the Pliilip- pine Islands, and Alaska. (c) l-'rom or into the United States ports, one commission of 5 per cent on all mails, express, and commercial passenger revenue will be allowed. This commission is also to cover all agency commissions and fees paid in foreign or dependency ports, except the brokerages authorized to be paid under C-II below. II. On tankers. — Between United States ports and foreign and dependency ports, a fee of $100 for each vessel will be allowed. B. P.WMENTS BY THE ACENT FOR UNLO.\DING, LOADING, AND ATTENDANCE COMMIS- SIONS, AND FEES PAID TO OTHERS THAN THE AGENT AT FOREIGN AND DEPENDENCY PORTS. I. On all vessels, inehirling tankers. — (a) A commission or fee not exceeding the lowest customary commission or fee prevailing under the particular circumstances of the specilic voyage and trade; provided that any commission or fee ])aid for attending to any mail, express, or commercial passenger revenues shall be borne by the agent out of the commission allowed him under A-I(r), supra, except the brokerages au- thorized to be paid under ('-I I below. In Meditorranean ports a combined agency and unloading fee not exceeding $500 on general cargo or $250 on bulk cargo, if one port of discharge is used, and $125 for each additional port of discharge, the fee to include the clearing of the vessel outward if she sails in Ijallast or light, will be allowed. The same customary eonunission and fees of the port will be allowed the branch house of re^ai]inp; nndcr tl)e iiarlicular cir- cumstances of tlie f-pecilic voyaf-'e and trade may be paid. A\'li( reNcr ciisttunary and pro]>er frei.ulit l)rokerages in I iiited Staffs ports have been jiaid by the a^'(;nt prior to (he signing of this agreement, t-uch brokerages may l»e included as a j)roper dis- bursement charge against the vessel. Second. In cases where it is necessary for passenger tickets to besold through abri)ker in foreign or dependency ports, the lowest customary brokerage ])revailing under the particular- circumstances of the sj)ecilic A'oyage and trade nuiy be paid. Wherever customary and })roper, pas^senger brokerages in I'nited States ports have been paid by the agent prior to the signing of this iigreement, tsuch brokerages may be included as a ])roi)er disbursement charge again.st the ves;-el. Third. In a foreign or dependency port for proper disbursements of the vessel, the lowest customary commission ]nevailing under the particular circumstances of the specitic voyage and trade may be paid, or if the agent, being without funds of the corporation at such ])orte, makes such advances, the proper cost of securing such funds will be allowed. Fourth. P\)r entering and clearing vessels light or in ballast into and from United States ports from and into foreign or dependency ]iorts, respectively, or into and from United States Atlantic i^orts from and into I'nited States Pacilic j)orls, resjH'ctively, and vice versa, a fee commensurate with the ser\ ice, but not e:<:ceeding $50, will be allowed. No fee will be allowedfor entering or clearing vessels light or in ballast into and from United States ports from and into United States i)orts, and vice ^■ersa, other than those above mentioned. Fiith. Whenever the corporation may legally have the advantage of existing or future contracts of the agent for the purchase of njaterial. fuel, !-u])plies. or equip- ment, it shall have the lienefit thereof: provided that such contract may be made available to the corporation without unreaKonaldy interfering with the requirements of other vessels owned or oj'erated !)y the agent. Sixth. The corixiration shall reimljurse the agent for all disbursements reasonably and properly incurred on its behalf in the conduct of the business of the vessels as in this agreement authorized. Seventh. All salvages shall be for the benefit of the cori)oration. This provision, howe^'er, shall not be construed to de])rive the agent of any right to salvage reserved to the agent as A'essel owner under any charter. Fightli. The cor])oration shall ha\'e the right at any time to terminate this agree- ment as to any or all vessels assigned to the agent and to assume forthwith possession of any or all of the \'essels and to collect directly all freights, moneys, or other charges remaining unpaid. The agent, however, in such cases shall adjust, settle, and liqui- date the current business of the vessels if so required by the corporation. Ninth. Upon giAdng the corjioration SO days' written notice, the agent shall haA'e the right to terminate this agreement, said termination not to become effective as to any vessel until its arrival and discharge at a United States port. The agent shall, however, if required by the corporation, adjust, settle, and liquidate the current business of the vessels for account of the corporation. Tenth. The agent shall, at the time of execution and delivery of this contract, or at any other time, if so required by the corporation, furnish a satisfactory bond in such amount as the corporation ma}' order for the faithful and pro])er discharge of the obligations and duties hereunder assumed. Fleventh. This agreement shall be retroactive in its a])plicalion to all vessels heretofore assigned to the agent for the conduct of the business. United States Shipping Board Witness as to signature: Emergency Fleet ('orporation. By , Director nf Operations. Witness as to signature: By , 'The Agent. 52 KEPOET OF U. S. SHIPPIT^G BOAED. United States Shipping Board — Division of Operations. addenda to operating agreement. The operating agreement to which this rider ie attached shall be, and is, modified and supplemontod as follows: (1) The coninnssions and fees payable to the agent under Ihe attached agreement shall be in accordance with Schedule A set forth on page 2 of the agreement and shall cover all vessels heretofore or hereafter assigned to the agent until a new operat- ing agreement covering future operations shall be executed by the parties to the agi'eement. (2) Freight and charter brokerages paid in United States ports shall be allowed as heretofore paid by the operators up to H Prevailing custoiiis in tlie ])artirular trade are to tlic contrary, in whicli case freight may be made payal>le at destination in accordance with sucli cu.stom. All freight in" cases where cargo is perishable or not worth the freight diarges must be prepaid unless the custom of tlie trade is to the coiitrary. ((/) Shall issue or cause to be issued to shippers customary freight conlracfs and bills of lading, and .shall exercise due diligence to see tlial stuli bills of lading r-oiitain all exemptions and stijndations usual to the i)articular trade or service in which tlie vessel may be engaged, and reserve to tlie corjjoration a lieu ujion all carg settled, unless otlierwise directed by the corporation, at New York in accordance with York-Antwer]> rules of 1890, and Antwerp rule of l'.JO:i, and otherwise in accordance with the rules and customs of the port of New York, and also subject to the following clause: "If the owner of the ship sliall liave exercised due diligence to make said ship in all respects seaworthy and ])roperly manneil, equipped, and supplied, it is hereby agreed tliat in case of loss, damage, danger, or disaster resulting from fault or negli- gence of the pilot, master, or crew, in the navigation or management of the ship, or from latent or other defects or unseaworthiness of the shi]^, whether existing at the time of shipment or at tlie Ijeginning of the vovage or on the voyage, but not dis- coverable by due diligence, the owner shall not be liable therefor, and the consignee or owners of the cargo shall not be exempt from liability for contribution in general a\ erage, or for any special cliarges incurrcMl. but with the shipowner shall contribute in general average aiul sliall jiay such sjiecial charges as if such loss, damage, danger, or disaster had not resulted from such fault, negligence, latent or otlier defect, or unseaworthiness. ' ' (f ) Shall collect all freights and other money due the corporation, advance all funds for all expenses properly to be paid by him as agent, and take proper general average security. (/) Shall hold all money collected on behalf of the corporation, and shall deposit the same in national banks, or banks which are members of the United States Federal Reserve Association, as a separate trust fund, to be designated " ■ — Shipping Board Fund," and shall not mingle the same with other mone\s owned or held by the operator, and shall make from such funds all disbursements hereinafter authorized to be paid by or to the operator for account of the corporation, and shall, promptly after the dispatch of each vessel, or at such other times as may be directed, account to the corporation for moneys received and disbursed. No items unsupported by vouchers aggregating more than $10 ^vill be allowed. {g) Shall keep separate accounts in sucli manner and form as may be prescribed by the corporation of all moneys collected and disbursed, and accord to accountants and other representatives of the corporation access to all books and papers, and render such assistance in the examination thereof as the corporation may require. (h) Shall, in order to prevent speculation in freight or passenger space, exercise due diligence to see that all freight contracts show the name of actual shipper, commod- ities, quantities, and freight rates, except that in coastwise trade of the United States and in the ^\'est Indies trade the freight rate need not be shown on i)ermits, but must be shown on bills of lading and must be the rate in current tariffs. No space allotted to the original shipper may be 8u].>let on any terms or conditions whatsoever without the consent of the corporation. If the operator shall, without the consent of the cor- poration, knowingly can-y any cargo, the sjiace for which has been sublet by the original shipper upon any terms or conditions whatsoever, the operator sliall receive no commission, fee, or other compensation for any services rendered during tlie voyage. {i) Shall exercise due diligence to see that all bills of lading when i.'^sued agree with the freight contracts, that all wharf receipts for freight are nonnegotiable, and that a freight contract or permit is issued for eai'h shipment. (j) Shall exercise due diligence to perform or cause to be performed all of the cus- tomary agency duties concerned with loading and discharging cargoes at all ports included in the vessel's itinerary, and all things necessary for the protection and safeguarding of the interests of the corporation. P'ourth. Tli(> corporation, in consideration of the services or things herein agreed to be performed, shall pay compensation and allow commissions and fees, as follows: 54 REPOET OF U. S. SHIPPING BOARD. A. COMPENSATION PAYABLE TO THE OPERATOR. I. On all vessels except tankers. (a) From United States ports: (1) On s^'eneral cargo, a commission of 2^ per cent on the gross ocean freight list. (2) On bulk cargo,' a commission of li per cent on the gross ocean freight list. The term "bulk cargo," as used herein, shall include a cargo, a substantial part (amounting to 50 per cent or more) of which is loaded at one port and discharged at one port, when covered by one bill of lading, and delivery is made without regard to marks or numbers, and all United States Government cargoes, when vessel is exclu- sively laden therewith. Whenever the excess over such substantial part is general cargo, the commission payable on general cargo as above shall be paid on the freight earnino-s on such excess. Wiere Government cargoes are carried, and no charge or a nominal charge is made therefor, the commissions and fees shall be based upon a freight schedule established in each case by the United States Shipping Board for sucii purpose. , * Krv /• (6) Into United States ports from foreign and dependency ports, a fee of $2oO for each vessel. „ . , , • , tt The term "dependency ports," as used herein, shall include ports m the Hawaiian Islands, Porto Rico, Virgin Islands, Guam, Canal Zone, Philippine Islands, and (c) From or into United States ports, one commission of 5 per cent on all mails, express, and commercial passenger revenue. This commission also covers all agency commissions and fees paid in foreign or dependency ports, except brokerages author- ized to be paid under C-II. II. On tankers. Between United States ports and foreign and dependency ports, a fee of $100 for each vessel. B. COMMISSIONS AND FEES PAYABLE TO OTHERS THAN THE OPERATOR TOR UNLOADING, LOADING, AND ATTENDANCE AT FOREIGN AND DEPENDENCY PORTS. I. On all vessels including tankers. (a) A commission or fee for agency services in accordance with the usual commis- sions and fees paid in the respective ports, as certified to the United States Shipping Board by the American Steamship Association, and verified by the comptroller; provided that any commission or fee paid for attending to any mail, express, or com- mercial passenger revenues shall be borne by the operator oiit of the commission allowed him under A-I (c), supra, except the brokerages authorized to be paid under C-II. The same customary commission and fees of the port will be allowed the branch house of the operator as would be allowed to others than such branch house. C. COMMISSIONS AND FEES NOT OTHERWISE AUTHORIZED. I . In cases where freight and charter brokerages are necessarily or properly incurred in United States ports to secure cargoes and charters, and are paid in accordance with the usages of the trade, a brokerage commission not exceeding 1^ per cent will be allowed. In such cases in foreign or dependency ports, freight and charter brokerages will be allowed in accordance with the usual commissions and fees paid in the respec- tive ports, as certified to the United States Shipping Board by the American Steam- ship Association, and verified by the comptroller. II. In cases where passenger tickets are necessarily sold through a broker in foreign or dependency ports, a brokerage commission will be allowed in accordance with the usual commissions in the respective ports, as certified to the United States Shipping Boai'd by the American Steamship Association, and verified by the comptroller. III. If the operator is without funds of the corporation to meet disbursements of the vessel in foreign or dependency ports, and funds are there advanced by the opera- tor, or procured from others, a commission will be allowed in accordance with the usual commissions paid in the respective ports, as certified to the United States Shipping Board by the American Steamship Association, and verified by the comp- troller. IV. For entering and clearing a vessel light or in ballast into and from United States ports from and to foreign or dependency ports, respectively, or into and from United States Atlantic ports from and into United States Pacific ports, respectively, a fee of $20 will be allowed. No fee will be allowed for entering or clearing vessels light or in ballast into and from United States ports from and into United States ports other than those above mentioned. REPORT OF U. S. SHIPPING BOARD. 55 V. If the vessel, after cargo is booked, is diverted by the corporation to a port other than that named or contemplated in the original shipping documents, no additional compensation will be paid on any increase in freight earnings resulting from such diversion, but the operator will be paid an additional fee of $250 for performing the services incidental and necessary to the diversion. Fifth. Whenever the corporation may legally have the advantage of existing or future contract of the operator for the purchase of material, fuel, supplies, or eijuip- ment, it shall have the benefit thereof, provided that such contracts may be made available to the corporation without unreasonalily interfering with the requirements of other vessels owned or operated by the operator. Sixth. The corporation shall reimbiuse the operator for all disbursements properly incurred on its behalf as authorized in this agreement. Seventh. All salvages shall be for the benefit of the corporation. This provision, however, shall not be construed to deprive the operator of any right to salvage reserved to the operator as vessel owner under any charter. Eighth. The corporation shall have the right at any time to terminate this agreement as to any or all vessels assigned to the operator, and to assume forthmth control of any or all of the vessels, and to collect directly all freights, moneys, or other charges remaining unpaid. The operator, however, in such cases shall adjust, settle, and liquidate the current business of the vessels if so required by the corporation. Ninth. Upon giving the corporation 30 days' written notice, the operator shall have the right to terminate this agreement, said termination not to become effective as to any vessel until its arrival and discharge at a United States port. The operator shall, however, if required by the corporation, adjust, settle, and liquidate the current business of the vessel. Tenth. The operator shall, at the time of execution of this agreement, or at any other time, if so required by the corporation, furnish a satisfactory bond in such amount as the corporation may order for the faithful and proper discharge of the obligations and duties hereunder assumed. p]leventh. This agreement shall apply to the operation of all vessels assigned to the operator, sailing from United States ports on or after the Ist day of March, 1919. United States Shipping Board Emergency Fleet Corporation, Witness as to signature: By , Director of Operations. Witness as to signature: By — — — , The Operator. Exhibit R. (Form 7045^D. of O. (8-20— 2M).I United States Shipping Board Emergency Fleet Corporation managing agreement. This managing agreement, made this day of , by and between the United States Shipping Board Emergency Fleet Corpora^on, the first party, hereinafter called the corporation, and , of -, the second party, hereinafter called the manager, witnesseth: Whereas the corporation is operating the vessel and certain other vessels and desires to make an agency contract mth the manager for the husbanding and managing of said vessel and such other vessels as it has assigned and may assign to the manager for such purpose ; Now, therefore, it is agreed as follows: First. The corporation hereby appoints the manager as its agent for the husbanding and managing of the vessel and such other vessels as the corporation has as- signed, and may from time to time assign, to the manager for such pur|X)se. Second. The" corporation will provide and pay for all fuel, fresh water, stevedoring, port charges, pilotages, agencies, commissions, and consular charges, except those pertaining to the master, officers, and crew, and all other expenses wliich are usually borne by a time charterer of a vessel. 56 REPORT OF U. S. SHIPPING BOARD. Third. The manager, as sxich agent— (a) Shall act as the manager of the vessel in such trade or service as the corporation shall direct, being subject to the orders of the corporation as to voyages, cargoes, priorities of cargoes, charters, rates of freight, and other charges, and as to all matters connected with the use of the vessel. (6) Shall take proper delivery of the vessel from the operation or construction division of the corporation, or from the owner, builder, or anyone else having control, as the corporation may direct. (c) Shall exercise due diligence to man, equip, victual, and supply the vessel, and to provide and pay for all provisions, wages, and consular, shipping, and discharging fees of the master, officers, and crew; all cal)in, deck, engine room, and other necessary stores; and all other costs and expenses (except those expenses to be paid by the mana- ger out of his own funds covered by the comi>ensation and fees hereafter provided fort properly incident to the management of the vessel, including war risk insurance, if any, required by law on the master, officers, and crew. (d) Shall exercise due diligence to maintain the vessel in a thoroughly efficient state in hull, machinery, tackle, apparel, furniture, and equipment, procuring for and on behalf of the corporation the necessary labor and material to effect ordinary running repairs and replacements. No extraordinary repairs or expenses shall be made or incurred, and no alteration in hull, machinery, or equipment shall be made, by the manager, except in serious emergency, without first securing in writing the authoi'ization of the corporation. (e) Shall exercise due diligence to see that no damage to the vessel arises from loading improper cargo, from improper stowage, or from improper berthing of the vessel. if) Shall, whenever no separate operator is acting, do the things required of an operator under the terms and conditions of the regular form of operating agreement of the corporation then in use. (gr) Shall hold all moneys collected on behalf of the corporation, and shall deposit the same in national banks, or banks wliich are members of the United States P^ederal Reserve Association, as a separate trust fund to l)e designated " — , Shipping Board fund," and shall not mingle the same with other moneys owned or held by the manager, and shall make from such funds all disbursements hereinafter authorized to be paid by or to the manager for account of the corporation, and shall, promptly after the dispatch of each vessel, or at such other times as may be directed, account to the corporation for moneys received and disbursed. No items not supported by vouchers aggregating more thaa $10 will be allowed. ih) Shall keep separate accounts in such manner and form as may be prescribed by the corporation of all moneys collected and disbursed, and accord to accountants and other representatives of the corporation access to all books and papers, and render such assistance in the examination tliereof as the corporation may require. (i) Shall exercise due diligence to do or cause to be done all things which would be done by the owner, or the owner's agent, under the usual Government form of time charter, attending to all matters in connection with the management of the vessel. Fourth. The corporation, in consideration of the services or things herein agreed to be performed, shall pay compensation and allow commissions as follows: A. COMPENSATION FOR MANAGEMENT. I. For each vessel up to and including the fifth, $400 per month, and at the same rate for each part of a month. II. For each vessel in excess of five, $350 per month, and at the same rate for each part of a month. Such compensation shall be payable to the manager from the day of delivery of each vessel to the manager until redelivery or loss. B. COMMISSIONS FOR ADVANCING FUNDS. I. If the manager is without funds of the corporation, either as the maixager or as the operator, for the disbursement of the vessel in foreign or dependency ports, and funds are there advanced by the manager, or procured from others, a commission 'will be allowed in accordance -with the usual commissions paid in the respective ports, as certified to the United States Shipping Board by the American Steamship Associa- tion, and verified by the comptroller. Fiith. If the manager shall kno^\'ingly permit any cargo to be carried without the consent of the corporation or the operator, th"" manager shall receive no commission, fee, or other compeusation for any services rendered during the voyage. REPORT OF U. S. SHIPPING BOARD. 57 Sixth. Whenever the corporation may legally have the advantage of any existing or future contracts of the manager for the purchase of material, fuel, supplies, or equipment, it shall have the boueMt thereof, pro\aded that such contracts may be made available to the corporation without unreasonably interferijig with the require- ments of other vessels owneear, 10 per cent of the value; for the second year. 9 per cent of the remaining value; third, 8 per cent; fourth, 7 per cent; fifth. (] per cent, and 5 per cent each year there- after. For insurance, at the rate of 41 per cent per annum; for interest, at the rate of 5 per cent per annum; for reserve for repairs, at the rate of 4 per cent per annum. General average, collision, and other claims shall be charged to the vessel only to such extent as they are not completely covered and reimbursed by insurance. The vaKie as set up on the books of the operators may be understood to be for book Iceeping purposes only, and such values may vary with the trades and may be the only variable item necessary by which equitable compensation may be computed with the object of ultimately placing all agents of equal competency so far as may be reasonably practicable on the same basis of compensation. 11. As compensation the corporation shall pay the agent as follows- (a) An agent's fee of *200 per ship per month. (b) For the period that any ship is in actual operation or in commission, and for the p^n-pose of making monthly payments the agent will receive a minimum comp?n- sation. in addition to the $200 per month, of 10 cents per dead-weight ton per month on all ships under 5,000 tons (maximum $4b{) per ship per month), and S cents per dead-weight ton per month on all ships of 5.000 tons and under 9.000 tons (minimum $150. maximum $700. per ship per month), and 7 cents per dead-weight ton per month on all .ships of 9,000 tons and over (minimum $700 per ship pew month). (c) There may be such customary brokerage charged again.st the o])cration of the ships as may be necessary to obtain business, providing the result of the \oyage wi 1 justify same. In case of doubt or dispute as to whether the voyage does justify the charge, the corporation may finally decide as to continuing the payment of })ro1-eivge where doubt exists as to justification. (d) The agent w^ill also receive a commission equal to 10 per cent of all net profits on an amount up to 50 cents per dead-weight ton per month. On all net ])ro!its in excess of 50 cents per dead-weight ton per month, 20 per cent up to $1 t)er dead-weight ton per month and 25 per cent of all net prolits in excess of $1 per dead-weight ton per month. 12. The corporation shall, when it may legally do so, have the advantage of any existing or future contracts of the agent for the purchase of naterials, fuel, supplies, or equii)ment, pro\ided that this may be done without unreasonably interfering wdth the requirements of other vessels owned or operated by the agent. In every case w'here the corporation shall have contracted for materials, fuel, supplies, or efiuip- ment, the agent shall procure the same in pursuance of such contract and the direc- tions of the corporation. lo. All salvages sliall be for the benefit of the corporation and shall be considered as part of the eariiings of the vessel. 14. The corporation shall have the right at any time to terminate this agreement as to any or all vessels assiened to the agent and to assume forthwith control of any or all of the vessels and to collect directly all freights, moneys, or other charges remain- ing unpaid. In such ca.ses, however, the age it shall adjust, settle, and liquidate the current business of the vessels if so required by the corporatio.n. 15. Upon giving the corporation oO days' w^ritten notice the agent shall have the right to terminate this agreement, such termination not to become effeilive as to any vessel ujitil its arrival and discharge at a United States jiort. The agent shall, however, if required by the corporation, adjust, settle, and liquidate the current business of the vessel. 62 EEPOET or U. S. SHIPPING BOARD. 16. The agent shall, at the time of execution and delivery of this agreement or at any other time, if so required by the corporation, furnish a bond satisfactory to the corporation in such amount as it may order for the faithful and proper discharge of the obligations and duties hereunder assumed by the agent. in witness whereof the parties hereto execute this contract in duplicate. UNrPED STATE.S OF AMERICA, Witness as to signature: By United States Shipping Board ^ — Emergency Fi-eet Corporation, Witness as to signature: By , Director of Operations. By , Agent. Exhibit U. [Form M04, 7067.] United States Shipping Board. [Represented by United States Shipping Board Emergency Fleet Corporation, Washington.) AGENCY AGREEMENT FOR MANAGING AND OPERATING VESSELS. This agreement made in duplicate the day of , 19 — , between the United States of America, acting through the United States Shipping Board, repre- sented by the United States Shipping Board Emergency Fleet (Corporation, herein- after called the corporation, and . hereinafter called the agent, witnesseth: 1. Appointment of agent. — The corporation appoints the agent as its agent to manage, operate, and conduct the business of such vessels as it has assigned or may assign to the agent. 2. Agent's acceptance of appointment. — The agent agrees to act as such agent and to manage, operate, and conduct the business of such vessels in accordance Avith the directions, orders, and regulations which the corporation may from time to time prescribe. 3. Manning, equipping, etc., vessels and paying disbursements. — The agent agrees to man, equip, victual, and supply such vessels, and to pa>' for account of the corpora- tion the cost thereof and all other costs and expenses incident to the management, operation, and conduct of the business of such vessels, except as is otlierwise provided herein. 4. Maintenance and repairs. — The agent shall (subject to such regulation or methods or supervision and inspection as may be required or prescribed by the corporation) exercise reasonable care to maintain the vessel in a thoroughly efficient state in hull, machinery, tackle, apparel, furniture, and equipment, procuring for and on behalf of the corporation the necessary labor and material to elTect ordinary running repairs and replacements. No extraordinary repairs or expenses shall be made or incurred, and no alterations in hull, machinery, or equipment shall be made by the agent, except in cases of serious emergency, without lirst securing in writing the authoriza- tion of the corporation. The agent shall encourage the practice of performing all possible re]3airs by the vessel's crew, and when necessaiy to have repairs ]^erformed by repair companies shall encourage the practice of letting contracts for this work on competitive lump- sum bids. 5. Agent must use care to avoid all damage and loss. — The agent agrees to exercise reasonable care to protect and safeguard the interests of the corporation, the Shipping Board, and the United States in all respects and to exercise reasonable care to avoid loss and damage of every nature to the corporation, the Shipping Board, or the United States. In judging the liability of the agent under this paragraph the acts of sub- agents or })rokers employed by the agent shall be deemed the acts of the agent. fi. Trades, bills of lading, etc. — The agent agrees to operate said vessels in such serA-ice as the corporation may direct and to issue to ship]iers the customary charter parties, freight contracts, and bills of lading, except as otherwise prescribed by the corporation, and shall exercise reasonable care to see that such shipping documents when not prescribed by the corporation shall contain all exemptions and stipulations usual in the particular trade or ser\dce in which the vessel may be engaged. 7. Subagents subject to corporation'' s disapproval. — The selection by the agent of agents or subagents in foreign and domestic ports shall be subject to disapproval by the corporation. REPORT OF U. S. SHIPPING BOARD. 63 8. Collection ofmovei/s. — The a'^ent agrees to collect when Uy such moneys, to iiniuediately notify the pro])er officers of tlic corporation and take such steps as may be ])ro)>er to protect the corporation's interests. The a^ent furtlier ag:reea to do all thin<;s which the corporation is retpiired by law or custom to do either as owner of the vessela or as carrier of the cargo. 9. Ilau'lliug of moncjix. — The agent agrees to deposit all moneys collected on behalf of the corporation in a national bank or a bank which is a member of the United State.s Federal Reserve Association as a separate fund in tlie name of the United States Shipping lioard Emergency Fleet (Corporation, wliich moneys shall, in so far as the agent is concerned, be the pro]K'rty of the corporation; and whenever tlie trea«urer of the corporation con.si it/al ......... Total steel . 38 5, 350, 323. 28 11 88,000 35, 819, 465. 63 Wood: 29 9 3 74, 500i SI. 878. 900. 00 50 5 1 3, 967, 500. 00 242,711.96 21,000.00 Requisitioned 5,500 1,216 80, 000. 00 11,500.00 41 81,216 1, 970, 400. 00 56 4.231.211.96 Grand total -• 41 81,216 1, 970, 400. 00 94| 9,581,535.24 11 88, 000 35, 819, 465. 63 SCHEDULE 2. Statement of vessels and/or hulls declared surplus and sold from inception to Feb. 28, 1921. Total. Cargo. Barges. Type of construction and method of acquisition. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Tugs. 4 78 4 272,800 42 186,600 25 86,200 11 Total sold 82 272,800 42 186,600 25 86,200 15 REPORT OF U. S. SHIPPING BOARD. 69 SCHEDULE 3. Statement of vessels sold shov:ing quantity and dead- weirfht tonnages by classification from imrplionlo Feb. 28, 1921. Total. Cargo. Refrigerator. Tankers. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Num- ber. Dead- vr,,„. weight 7™- tonnage. ' "^ Dead- weight tonnage. Steel: Con tract 76 8 147 .53 41 386,010 42,987 1,079,673 116,416 231,139 45 8 99 21 30 298, 010 42,987 621,021 71,861 175. 742 Purchased Requisitioned on wavs 4 34,3.53 37 3 385,667 9,762 Requisitioned afloat." Seized Total steel 325 1 S.Vv22.'i 203 1,209,621 4 :34,.3.53 ! 40 395, 429 Wood: Contract 103 14 4 179, s:?0 5, 500 1,216 24 105, 330 Requisitioned afloat Seized Total wood •121 186, .546 24 105,330 <3omposite: Contract n ] 42, 150 1 11 42, 1.50 1 1 ' i Grand total 457 2.0,'a 921 238 1,357,101 4 34,353 1 40 395,429 Freight and passengers. Colliers. Barges. Army and transports. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Tugs. Steel: Contract 11 88, 000 20 Requisitioned on ways. Requisitioned afloat . . . 7 2 11 38, 632 5, 399 55, 397 9 29,394 18 ...... ........ Total steel 20 99,428 9 ; 29,394 U 88,000 38 Wood: Contract . . 29 9 3 74,500 5,500 1,216 50 5 Seized 1 1 1 41 81,216 56 Grand total 20 99.428 9 29.394 41 81,216 11 88,000 94 SCnEDUI>E 4. Statement of vessels the construction ofvhich ivas suspended and/or canceled from inception to Feb. 28, 1921. Type of construction and method of acquisition. Total. Cargo. Tanker. Passenger and cargo. Transport. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Steel: Contract 415 25 2,941,175 168, 600 241 16 1,881,375 96,100 29 263,600 5 2 65,000 9,000 78 724,000 7 63,500 Total steel 440 413 30 31 3, 109, 775 1, 162, 500 105, 000 228,500 257 217 30 31 1,977,475 824, 850 105, 000 228, 500 36 327,100 7 74,000 78 724,000 Composite, contract 1 ....1 Grand total 914 4,605,775 535 3, 135, 825 36 1327,100 7 74,000 78 1 724,000 70 REPORT OF TJ. S. SHIPPING BOARD. Statement of vessels the construction of which u'as suspended and/or canceled from in-^ ception to Feb. 28, J9fi— Continued. Type of construction and method of acquisition. Barges. Converted barges. Finished hulls. Sailing vessels. Tugs. No. Dead- weight tons. No. Dead- weight tons. No. Dead- weight tons. No. Dead- weight tons. No. Dead- weight tons. 4 111 7,200 292,500 58 74 6 25, 300 3 12,450 2 7,400 Grand total 115 299,700 6 25,300 3 12,450 2 7,400 132 SCHEDULE 5. Statement of vessels and/or hulls declared, surplus, and not sold from inception to Feb. 28, 1921. Total. Cargo. Barges. Type of construction and method of acquisition. Number. Dead- weight tons. Number. Dead- weight tons. Number. Dead- weight tons. Tugs. Steel' Contract 3 131 15,000 410,500 3 83 15,000 297, 850 30 112,650 18 134 425,500 86 312,850 30 112,650 18 SCHEDULE 6. Statement of vessels released from inception to Feb. 28, 1921. TjTse of construction and method of acquisition. Total. Cargo. Freight and pas- senger. Tanker. Sailer. Barge. Tug. Steel: Requisitioned afloat > Requisitioned Dutch i Requisitioned on ways 2 — 71 80 20 47 76 15 17 1 1 3 5 2 4 Total steel 171 1 1.38 18 9 2 4 Wood: Requisitioned afloat "... Composite: Requisitioned afloat' Iron: Requisitioned afloat ' 12 1 2 3 1 1 4 5 1 Grand total .... 186 143 19 9 2 4 9 1 Expenditures on 13 only. « Expenditures on 5 only. REPORT OF U. S. SHIPPING BOARD. 71 SCHEDULE 7. Statement of vessels lost from incejytion to Feb. 28, 1921, Total. Cargo. Refrigerator. Tanker. Type of construction and method of acquisition. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Steel: 16 3 8 18 19 8 11 91,504 19,215 35, OOS 73, 916 93, 503 45, 680 97, 108 16 2 8 13 18 8 8 91, 504 i 19, 175 1 Charted 35, 068 54, 115 87, 903 45, 680 55, 910 j 1 Requisition afloat Requisition on ways Req uisition dutch '. 1 4,992 i 5,600 Totalsteel 83 455, 994 73 389, 355 1 5,600 1 4,992 Wood: 20 1 1 72, 356 2,214 20 72,356 Seized Requisitioned afloat Total wood 22 74, 570 1 20 72, 356 2 7,000 1 2 7,000 1 1 Composite; Contract 1 3, 575 1 1 3,575 [ Grand totali 1108 541, 139 96 472,286 1 1 5,600 1 4,992 Freight and passenger. Motor boats. Sailer. Tugs. Barges. Type of construction and method of acquisition. Num- ber. Dead- weight tons. Num- ber. Dead- , weight tons. *^ um- ber. Dead- weight tons. Num- ber. Num- ber. Dead- weight tons. 1 1 40 7, 000 1 3 4,459 41, 198 1 3,350 1 Seized Totalsteel 4 45, 657 2 7,040 1 3,350 1 Wood: 1 2,214 1 1 2, 214 1 1 4 45, 657 2 7,040 2 5. 564 1 1 1 l_ 1 Expenditures on 91 only. SCHEDULE 8. Statement of vessels under construction in uet basin, on ways, and keels not laid, as of Feb. 28, 1921. Total. Cargo. Tankers. Passenger and freight. Type of construction and method of acquisition. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Num- ber. Dead- weight tons. Steel: Contract 50 1 553, 450 12, 500 20 1 193, 550 12, 500 13 138, 900 17 221, 000 Requisitioned Totalsteel 51 1 565, 950 7,500 21 206, 050 13 1 13.8, 900 7, 500 17 221, 000 Concrete: Contract Grand total 52 573, 450 21 206, 050 14 146, 400 i 17 221, 000 72 REPORT OF U. S. SHIPPING BOARD. SCHEDULE 9. Statement of ovmed vessels, tugs, and barges (available) as of Feb. ?8, 1921. Total. Cargo. Refrigerator. Tanker. Type of construct ion and method of acquisition. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Steel: 1,174 21 212 34 8,020,725 107,504 1,424,766 307,245 1,040 20 186 7 7,072,182 159,304 1,228,422 29,811 8 67,281 72 697,426 7 44,722 14 110,975 Total steel . . 1,441 201 15 6 9,920,240 1,022,393 53,550 .S2. 78.-? 1,253 I 8,489,719 275 1.022.393 15 112,003 86 808,401 Wood' Contract 15 2 53,550 6.500 4 26,283 1,753 11,028,966 1,545 9.572. 1G2 15 112,003 90 834,084 Type of construction and method of acquisition. Freight and passenger. Transports. Colliers. Tugs. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Num- ber. Dead- weight tonnage. Ocean Harbor. Steel: 6 1 78,214 8,200 13 105,622 35 3 29,675 2 10,972 27 277,434 Total steel 34 363,848 16 135,297 2 10,972 35 2 Wood: Contract 14 ! Grand total 34 363,848 16 135,297 2 10,972 37 14 o 11 uALlFORNbi Uj6 AWGELES LIBRARY UC SOUTHERN REGIONAL LIBRARY FACILIT 001 008 920 University of California SOUTHERN REGIONAL LIBRARY FACILITY 305 De Neve Drive - Parking Lot 17 • Box 951388 LOS ANGELES, CALIFORNIA 90095-1388 Return this material to the library from which it was borrowed. il: University of Southern F Library F