Reporter's Statement of the Case Steamship Company (Inc.), its successors and assigns, forever; and the said Continental Transportation & Oil Company for itself, its successors, and assigns, does hereby further guarantee that the said steamer known as steamer No. C-2, together with all its materials, fittings, appurtenances, and accessories aforesaid, are free from all mortgages, liens, obligations, liabilities, and claims of any character whatever, excepting only any liens of the builder. VII. On July 11, 1917, the President, by virtue of the authority vested in him by act of Congress of June 15, 1917, by an Executive order delegated the powers conferred upon him by said act to the United States Shipping Board Emergency Fleet Corporation. Under the authority so conferred upon it the Shipping Board Emergency Fleet Corporation on August 3, 1917, issued and served on Pennsylvania Shipbuilding Co. notice and order of requisition by telegram and letter, as follows: U. S. SHIPPING BOARD, Washington, August 3, 1917. PENNSYLVANIA SHIPBUILDING COMPANY, Gloucester, N. J.: By virtue of an act approved June 15, 1917, and authority delegated to Emergency Fleet Corporation by Executive order of July 11, 1917, all power-driven cargo-carrying and passenger vessels above twenty-five hundred tons deadweight capacity under construction in your yards and materials, machinery, equipment, and outfit thereto pertaining are hereby requisitioned by the United States and will be completed with all practicable dispatch. Letter follows. W. L. CAPPS, General Manager. UNITED STATES SHIPPING BOARD To PENNSYLVANIA SHIPBUILDING COMPANY, Gloucester, N. J.: 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 Reporter's Statement of the Case 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, outfit, and commitments for 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 construction 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, material, 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. Among the vessels and contracts included within the above requisition order was the contract for construction and the ship then under construction at the yards of the Pennsylvania Shipbuilding Co. at Gloucester, N. J., known as hull C-2, afterwards named the John M. Connelly. VIII. On August 18, 1817, the Emergency Fleet Corporation sent to the Continental Transportation & Oil Co. the following letter: UNITED STATES SHIPPING BOARD CONTINENTAL TRANS. & OIL CO., c/o H. L. Doherty & Co., 60 Wall Street, New York, N. Y. DEAR SIRS: On August 3, 1917, the United States Emergency Fleet Corporation issued to the Pennsylvania Shipbuilding Company the notice or requisition set forth in enclosure marked (a). Reporter's Statement of the Case In response to this communication Pennsylvania Shipbuilding Company, the shipbuilders, informed us that you as owners, or representatives of owners, had entered into a contract with them for the vessels listed below: Hull No. 2 Type D. W. ton Date of contract 7,000 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. G. R. McDermott, at room 302, 1319 F Street NW., Washington, D. C., 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 the 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 officers of your company. 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 a 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. Reporter's Statement of the Case The consummation of the orders herein and heretofore transmitted will be made the subject of later appropriate corporate action. Very truly yours, Enclosure (1): W. L. CAPPS, General Manager. Enclosed with said letter was a copy of the following notice addressed to the Continental Transportation & Oil Co.: Enclosure "A" UNITED STATES SHIPPING BOARD Washington, August 18, 1917. To: Continental Trans. & Oil Company. 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, outfit, and commitments for 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 construction 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, material, 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 Reporter's Statement of the Case commitments with respect to merchant tonnage without express authority from this corporation. General Manager United States Shipping Board Emergency Fleet Corporation. WASHINGTON, D. C., August 3, 1917. IX. On September 17, 1917, the Continental Transportation & Oil Co. forwarded to the Emergency Fleet Corporation a copy of the contract between Christoffer Hannevig and the Continental Transportation & Oil Co., with plans and specifications and data pertaining thereto. On or about February 17, 1917, the Continental Transportation & Oil Co. employed one C. E. Burney as inspector, who entered upon his duties and made periodical reports for the said company, and, after the requisition order, continued in the same capacity. In accordance with the contract provision by which the vessel was to be constructed according to the requirements of the British Lloyds and under their supervision, William Booth, representative of the British Lloyds in the United States, entered upon the duties ordinarily performed by an inspector of a classification bureau, under arrangements with the owner and as the owner's representative. His services began in June, 1917, and continued throughout the period of construction. After the requisition the services were continued as before. The record does not show the amount paid Lloyds before August 3, 1917. X. On August 22, 1917, the following letter with enclosure was received by the Pennsylvania Shipbuilding Co.: DISTRICT OFFICE No. 3, Washington, D. C., August 22nd, 1917. PENNSYLVANIA SHIPBUILDING COMPANY, Gloucester, N. J. GENTLEMEN: Enclosed please find copy of letter addressed to me by Admiral W. L. Capps, general manager of the Emergency Fleet Corporation. Will you kindly read this carefully and govern yourself accordingly? Promptness in reply will be much appreciated. Yours faithfully, |