Page images
PDF
EPUB
[blocks in formation]

1 First 3 days, $150 per day; next 5 days, $138 per day; thereafter, $75 per day.

2 For service at port of embarkation.

NOTE. It will be noted that in some cases the length of service and the charter rate is left blank. In these cases, the information has been called for but has not as yet been received in this office.

Mr. SHERLEY. What do you propose to do with this money? Capt. DALY. It is for the refitting of six additional German vessels at $100,000 each.

The CHAIRMAN. Is not that being done by the Navy?

Capt. DALY. We made the estimate, and I do not know that the Navy is doing it.

The CHAIRMAN. Has not all the transport business been turned over to the Navy Department?

Capt. DALY. It may have been turned over to them, but we are to reimburse them for what they do.

The CHAIRMAN. I do not know about that, because they are asking for this same money, and we want to find out about it; we do not want to give it in two places.

Capt. DALY. That is the theory on which we made this estimate. The CHAIRMAN. How is this $163,266,000 segregated?

Capt. DALY. $600,000 of it is for refitting six additional vessels at $100,000 each.

The CHAIRMAN. Are they to be materially altered?

Gen. SHARPE. They will have to put in bunks for the_men, and considerable alterations will have to be made. Urinals and means of ventilation will have to be provided.

The CHAIRMAN. How was that estimate arrived at? Was it based on a survey of the ships?

Gen. SHARPE. It was based on a survey and on what it cost to make these same changes in other vessels.

Capt. DALY. Those are six ships that the superintendent of the transport service in New York is actually refitting.

The CHAIRMAN. And this estimate is based upon his report?
Capt. DALY. Yes, sir.

The CHAIRMAN. You estimate $600,000 for refitting those ships; what else is there?

Capt. DALY. For reimbursement of the Navy Department for operating expenses of these six ships at $900,000 each, $5,400,000. The CHAIRMAN. Is that for a year?

Capt. DALY. Yes, sir.

The CHAIRMAN. How is the estimate of the operating expenses arrived at?

Capt. DALY. By taking the average daily consumption of fuel, oil, water, and of all of the things that are required in the operation of ships, including the crews, or the payment of the crews.

The CHAIRMAN. Are they civilian crews?

Capt. DALY. Yes, sir.

The CHAIRMAN. The statement has been made that these crews will be naval crews. That is on the basis of civilian crews? Capt. DALY. Yes, sir.

The CHAIRMAN. What other items are there?

Capt. DALY. The next is to charter 16 American commercial vessels for three months, at $82.000 per month each, $3,940.000. The next is the charter of 14 American commercial vessels for six months at $82,000 per month, each, $6.888,000. The next is the charter of 10 American ships to meet probable requirements for nine months, at $82,000 per month each, $7,380,000. The next is the charter of 60 American ships to meet probable requirements for one year, at $82,000 per month, $59,040,000. Then, the wages, crews, and operating expenses of those ships will be $50,868,000. The next is to reimburse the owners of American chartered vessels under the terms of their charters for vessels submarined or otherwise destroyed by the enemy $22,490,000. Then, for shore expenses at the port of embarkation at New York, $360,000; at Newport News, $300,000; and at the port of debarkation in France, $500,000. The CHAIRMAN. Does that make up the $163,266,000? Capt. DALY. Yes, sir.

The CHAIRMAN. How many transports have you already taken over, or how many vessels have you already taken over for transport purposes?

Maj. DRAKE. One hundred and eighty-seven.

The CHAIRMAN. Wait a minute; suppose we take it up in a different way. You have turned some vessels over to the Navy al

ready?

Maj. DRAKE. None have been turned over to the Navy, so far as I know.

The CHAIRMAN. None of these transport vessels?

Maj. DRAKE. No, sir.

The CHAIRMAN. Admiral Griffin testified that he was asking $2,160,000 for repairs to transports that had been turned over to the Navy. Then he was asked if these vessels had already been taken possession of by the Army, and he said that some of them had been and that some of them came from the Shipping Board.

Gen. SHARPE. Those were German interned vessels.

The CHAIRMAN. As to the first 14 German ships turned over, you never had them, did you?

Capt. DALY. No, sir.

The CHAIRMAN. Admiral Griffin then said that they had 16 other ships turned over to them by the War Department as transports, making 30 ships.

Capt. DALY. They were probably German interned ships that had been turned over to the Army. The War Department may have had them, but they had not been turned over to the Quartermaster Department.

The CHAIRMAN. Some of those ships had been assigned to the War Department, but before they ever came under your control they were turned over to the Navy?

Capt. DALY. Yes, sir.

The CHAIRMAN. It was stated that they had been assigned to the War Department transport service.

Gen. SHARPE. We requested their assignment for transport service, but they were never actually assigned to us. They were turned over to the Navy.

The CHAIRMAN. They were turned over to the Navy?

Gen. SHARPE. Yes, sir.

[ocr errors]

The CHAIRMAN. Then, Admiral Griffin said, "Yesterday, or the day before, we had 14 other Army transports turned over to us. Gen. SHARPE. We have never turned over any to them. Capt. DALY. Those were German interned ships.

The CHAIRMAN. They were either German interned ships or ships acquired from alien owners, but they were not ships that had been under the War Department?

Gen. SHARPE. There is only one ship that was turned over to the Navy Department by us, and that was to be fitted up as a hospital ship for the Navy. That was one that we had chartered.

The CHAIRMAN. That makes 44 transports that have been turned over to the Navy for operation for the Army. Now, in estimating the number of vessels that you require, did you take into account the 44 vessels that have already been provided for? You are estimating on a certain number of vessels for the needs of the transport serviceoverseas transports.

Capt. DALY. Yes, sir.

The CHAIRMAN. In estimating the number required have you taken into account the fact that 44 are already provided for?

Gen. SHARPE. It takes several months to get those vessels.

The CHAIRMAN. We will not bother about that yet. That is another question. You estimated on the number of ships.

Capt. DALY. We did not take into consideration the fact that the Navy was getting those ships.

The CHAIRMAN. You did not take into consideration the fact that there were 44 ships that were to be fitted up by the Navy for this transport work?

Capt. DALY. No, sir.

The CHAIRMAN. How many ships have you estimated on there? The number is 106. That is what you estimated would be required, but you did not take into consideration the 44 that the Navy had already turned over to them.

Capt. DALY. No, sir.

The CHAIRMAN. I understood you to say that the six German ships, for the refitting of which you ask $600,000, are actually being refitted by the Quartermaster Department now?

Capt. DALY. Yes, sir.

The CHAIRMAN. And this is to provide for that work?

Capt. DALY. Yes, sir; for that work.

The CHAIRMAN. And after they are refitted the intention is that

they will be operated by the Navy Department?

Capt. DALY. Yes, sir; that is the presumption.

The CHAIRMAN. And you estimate that it will take $900,000-
Capt. DALY. (interposing). For each ship.

The CHAIRMAN (continuing). For each ship. Do you know the capacity of those ships?

Capt. DALY. We have it, Mr. Chairman, but I do not know it now; no, sir. They are large ships.

The CHAIRMAN. Then, you are asking for money to charter 100 ships at charter prices which you place at $82,000 each per month. How is the charter price arrived at?

Capt. DALY. It is based on the prices we have to pay for the ships that we now have chartered.

The CHAIRMAN. When were those ships chartered?

Capt. DALY. They have been chartered.

The CHAIRMAN. Were those charters upon which the price was based recent charters or charters made prior to the outbreak of this war?

Capt. DALY. After the outbreak of the war.

The CHAIRMAN. Are these prices you are paying the market prices? Capt. DALY. Yes, sir.

The CHAIRMAN. The market price of a charter is practically prohibitive, is it not?

Capt. DALY. Yes, sir.

The CHAIRMAN. The earnings of a ship in the trans-Atlantic trade on two or three trips pay for the ship under existing conditions? Capt. DALY. Not these ships. These are big ships.

The CHAIRMAN. I know they are, and I know something about the shipping business just now. The earnings of a cargo freighter on two or three trips to Europe and back will more than pay the cost of the ship.

Capt. DALY. Yes, sir.

The CHAIRMAN. Has this question of obtaining the tonnage required been taken up with the Shipping Board?

Capt. DALY. I do not know.

The CHAIRMAN. We have given them authority to commandeer all ships or any charters of ships, either building or being already operated. To prevent the payment of prohibitive prices for shipping just now we have passed legislation empowering the Shipping Board to commandeer the necessary tonnage. Has this question been taken up with the Shipping Board?

Gen. SHARPE. Before we charter a ship we take it up with the Shipping Board. We take the matter up with them or refer the matter to them that is, the matter of the charter.

The CHAIRMAN. Those charters of which you speak, you say, contain certain provisions relative to the reimbursement of the owners in case of the loss of the vessel?

Capt. DALY. Yes, sir.

The CHAIRMAN. You have an item of $22,490,000 for that?
Capt. DALY. Yes, sir.

The CHAIRMAN. Is it a provision to pay for the ship at its value? Capt. DALY. Minus the amount of money that has been paid out, or minus its earnings under the charter.

The CHAIRMAN. You mean that they simply get the amount of the value of the ship, less whatever they have been paid?

Capt. DALY. Yes, sir; I think that is the provision of the charter party. I am not certain about that, but I think that is the provision. The CHAIRMAN. That obviates the necessity of the owner taking out marine insurance, because we are guaranteeing him?

Capt. DALY. Practically; yes, sir.

The CHAIRMAN. Does that provide only for loss due to acts of war, or does it provide for loss due to the ordinary perils of the sea? Capt. DALY. Just acts of the war or of the enemy. War risk is what it is. As to that $82,000, we do not mean by that that we actually pay them $82,000 per month. It is not based on a monthly rate.

NOTE. The charter party covering vessels chartered for transport of troops and supplies to Europe provides in part as follows:

"That the United States assumes all war, marine, and all other risks of whatsoever nature or kind, including all risk of liability for damage occasioned to other vessels, persons, or property.

"That any port charges and pilotage during the continuance of this charter shall be paid for by the United States.

"That said steamship shall be manned, operated, victualed, and supplied by and at the expense of the United States.

[ocr errors]

That in consideration of the faithful covenants of this charter, the company shall be paid hire by the United States for each and every day said steamship may be retained at the rate of per gross registered ton (in some

* * *

cases rate is per dead weight capacity).

*

"That in consideration of the faithful performance of the covenants of this charter, said steamship shall be returned by the United States to the company at * at the termination of this charter in the same and as good order and condition as when received, ordinary wear and tear excepted, and free from all claims and liens arising during the continuance of this charter; or, in default thereof, the United States shall pay the company for said steamship as of the time of loss (if uncertain, the time when said steamship is last heard from), together with interest at 6 per cent per annum, at the following rates: $275 per ton if said steamship be 12 years old or under; $250 per ton if said steamship be over 12 years and not over 17 years of age; $225 per ton if said steamship be over 17 years and not over 22 years of age; $200 per ton is said steamship be over 22 years and not over 27 years of age; $175 per ton if said steamship be over 27 years of age.'

[ocr errors]

The CHAIRMAN. How is it based?

Capt. DALY. On a ton rate. On some of the ships the charter price is $12 per gross ton, and for others $10 per dead weight ton per month. We have ships running from 6,800 tons to 12,000 tons.

The CHAIRMAN. Is this number of vessels the number which it is estimated will be required to transport and keep supplied 2,000,000 men abroad?

Capt. DALY. Yes, sir.

The CHAIRMAN. There is no expectation that it will be done inside of

Capt. DALY (interposing). One of the things that we have to do is to get the supplies over there, and the shipping question is a serious question.

OPERATION OF TRANSPORTS.

The CHAIRMAN. You ask also $50,868,000 for wages, crew, and operating expenses of the ships?

Capt. DALY. Yes, sir. Mr. Chairman, I will have to look into that. I am not familiar with that item.

NOTE.-The 1917 deficiency estimate provided for charter hire of 16 vessels. to June 30, 1917.

« PreviousContinue »