Reporter's Statement of the Case Johnson, the following letter, a copy of which Johnson sent to the Standard Shipbuilding Corporation: UNITED STATES SHIPPING BOARD Mr. EADS JOHNSON, EMERGENCY FLEET CORPORATION, 115 Broadway, New York City. DEAR SIR: Herewith you will find a copy of the corporation's letter, in duplicate, of this date, relating to such vessels building by Standard Shipbuilding Company in your district. You will immediately notify the shipbuilding company that you are instructed to take charge, for the corporation, of the completion of these vessels, and you are authorized hereby to take over into the employ of the corporation, temporarily, the owner's local inspecting officers at the present rates of compensation, so far as they can comply with existing instructions and those hereafter issued in regard to citizenship, being careful that they take the usual oath of office. Report promptly the name, compensation, the date of taking the oath, and the former employers of those whom you take over. You will please forward, without delay, the usual certificates for payments which have become due since the date of requisitioning or may become due under the contract after that date, so far as practicable, certified by the former local inspector as well as yourself. These payments to the shipbuilder for the present must not exceed the actual cost of the contractor's outlay for labor, materials received since the last payment plus the approved overhead expense, nor must the payment so determined exceed the contract payment accrued. Final action of the corporation regarding the substance and purpose of the contract, but this decision can not be determined until the corporation can investigate the facts and terminology of each contract to assure proper protection of the Government. You will please furnish to the shipbuilder a copy of this letter and one copy of the inclosure, and you will request the shipbuilder to furnish you without delay, for transmission to the corporation, a statement in detail of such payments received on account of each contract prior to August 3rd, the date of the requisitioning. Very truly yours, Reporter's Statement of the Case XI. Inclosed in the said letter of August 16, 1917, set out in Finding X, were copies of the following letter and the inclosure therein referred to as inclosure A, both of which the Emergency Fleet Corporation sent to Carlo de Luca, plaintiff's assignor, on or about August 16, 1917: UNITED STATES SHIPPING BOARD, Mr. CARLO DE LUCA. EMERGENCY FLEET CORPORATION, DEAR SIR: On August 3, 1917, the United States Emergency Fleet Corporation issued to the Standard Shipbuilding Company the notice or requisition set forth in inclosure marked "(A)." In response to this communication Standard Shipbuilding Corporation, the shipbuilders, informed us that you, as owners or representatives of owners, had entered into a contract with them for the vessels listed below: The corporation's district officer having charge of vessels in the district in which the shipbuilders are located has been instructed to take charge, for the corporation, of the completion of vessels now under construction, and has been authorized temporarily to take over your local inspecting officers at their present compensation. Will you please inform the district officer, Mr. Eads Johnson, at 115 Broadway, New York City, the names of your representatives and their compensation, sending a duplicate to this office? Your cooperation with the corporation is invited. The corporation will consider payments to the contractor accruing since the date of requisition upon the receipt of proper vouchers and adequate information to be forwarded through its district officers. You are requested, as soon as possible, to report to the corporation a statement in detail of the payments already made by you on each ship named above prior to the date of the requisitioning, August 3, 1917. This statement should be accompanied by the original vouchers and receipts and should be verified under oath by the proper corporate officer of your company. Reporter's Statement of the Case It is the present intention of the corporation to reimburse you promptly, so far as funds are available, for the payments heretofore made to the shipbuilder if, after investigation of data submitted by you, such payments are found in order and in conformity with the contract requirements. At your further and early convenience, you are requested to submit to the corporation a statement of such indirect expenditures as you have made on account of each vessel; for instance, the cost of superintendence, original design, interest on funds already paid, and the like. The matters mentioned will require careful audit, and in addition you may submit any other matters you deem pertinent. It will be perceived that the corporation presumes it is addressing this letter to the owners, or responsible representatives of the owners, or persons entitled to receive compensation on account of the requisition of the vessels listed above. The corporation requests that there be included in your response to this letter all evidence of ownership which is necessary to establish the right of those who are entitled to receive the compensation provided by law. The consummation of the orders herein, and heretofore transmitted, will be made the subject of later appropriate action. Very truly yours, (Signed) W. L. CAPPS, General Manager. Enclosure. UNITED STATES SHIPPING BOARD, To Mr. CARLO DE LUCA, Re Standard Shipbuilding Corporation: By virtue of an act of Congress, approved June 15, 1917, entitled "An act making appropriations for the Military and Naval Establishments on account of war expenses for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes," and by authority delegated to the United States Shipping Board Emergency Fleet Corporation under Executive order of the President dated July 11, 1917, all power-driven cargo-carrying and passenger ships, above 2,500 tons, d. w. capacity, under construction in your yard and certain materials, machinery, equipment, and outfit necessary for their completion are hereby requisitioned by the United States. On behalf of the United States, by virtue of said act and said order, you are hereby required to complete the construc Reporter's Statement of the Case tion of said requisitioned ships under construction and will prosecute such work with all practicable dispatch. The compensation to be paid will be determined hereafter and will include ships, materials, and contracts requisitioned. You will furnish immediately general plans and detail specifications of the ships requisitioned, and copies of contracts and all supplemental agreements in relation thereto and full particulars as to owner, date of completion, payments made to date, amounts still due, and any other information necessary to a fair and just determination of the obligations of the Emergency Fleet Corporation in taking over these ships and contracts. You will report immediately whether any additional contracts are under consideration and their character and extent, and will not enter into any additional contracts or commitments with respect to merchant tonnage without express authority from this corporation. (Signed) W. L. CAPPS, General Manager, United States Shipping Board, Emergency Fleet Corporation. WASHINGTON, D. C., August 3, 1917. XII. On August 22, 1917, the United States Shipping Board Emergency Fleet Corporation sent to its district officer at New York City, Eads Johnson, the following letter, a copy of which Johnson sent to the Standard Shipbuilding Corporation: UNITED STATES SHIPPING BOARD, Mr. EADS JOHNSON, 115 Broadway, New York City. DEAR SIR: Referring to the vessels under construction in the yard of Standard Shipbuilding Corporation, New York, N. Y., requisitioned under the corporation's order of August 3rd. Precedent to the final examination of the contract for the vessels in question, you are requested to inform the shipbuilder as follows: The ships now under construction at your plant and referred to above, having been requisitioned by the duly authorized order of this corporation and title thereto taken over by the United States, and an order having been placed with you by due authority to complete the construction of said ships with all practicable dispatch, you are further ordered by the President of the United States, represented by this corpora Reporter's Statement of the Case tion, to proceed in the work of completion heretofore ordered, in conformity with the requirements of the contracts, plans, and specifications under which construction proceeded prior to the requisition of August 3, 1917, in so far as the said contract describes the ship, the materials, the machinery, equipment, outfit, workmanship, insurance classification and survey thereof, including the meeting of the requirements of the said contract and all tests as to efficiency and capacity of the ship on completion, and in so far as the contract contains provision for the benefit and protection of the person with whom the contract was made, but not other wise. All work will proceed under the same inspection of such persons as have been or may hereafter, from time to time, be designated by this corporation for that purpose. For the work of completion theretofore and herein ordered the corporation will pay to you the amounts equal to payments set forth in the contract and not yet paid; provided that on acceptance in writing of this order you agree on final acceptance of the vessel to give a bill of sale to the United States in satisfactory form, conveying all your right, title, and interest in the vessel, together with your certificate that the vessel is free from liens, claims, or equities with the exception of those of the owner, and then only to those set forth in the contract. Compensation to the shipbuilder for expedition and for extra work will, when deemed appropriate, be made the subject of a subsequent order. This work applies only to vessels actually under construction, and in accepting it the corporation expects you to inform it of the actual stage of construction of each vessel or the parts to be assembled therein on the date of requisitioning, August 3, 1917. The corporation reserves the right to decide whether or not a vessel was actually under construction on August 3, 1917, on consideration of the ascertained facts. In replying to this communication, please arrange to specify separately the vessels to which this order refers and refer to the corresponding contract in sufficient terms. for identification of it. Please furnish a copy of this to Standard Shipbuilding Co. and ask for an early reply. Very truly yours, (Signed) |