OPERATIONS, POLICIES, AND AFFAIRS OF THE UNITED HE145 1924 Copy 2 SELECT COMMITTEE TO INQUIRE INTO THE OPERATIONS, POLICIES, AND AFFAIRS OF THE UNITED STATES SHIPPING BOARD AND THE UNITED STATES EMERGENCY FLEET CORPORATION HOUSE OF REPRESENTATIVES SIXTY-EIGHTH CONGRESS, FIRST SESSION WALLACE H. WHITE, JR., Maine, Chairman. HENRY ALLEN COOPER, Wisconsin. EWIN L. DAVIS, Tennessee. WILLIAM B. BANKHEAD, Alabama. J. FREDERICK RICHARDSON, Assistant and Investigator to the Committee EXHIBIT 255 WEST INDIA OIL CO., BERMUDA From: Executive assistant to vice president-Operations. Subject: Select Committee-Question No. 36. MAY 20, 1924. 1. We transmit herewith in quadruplicate data prepared by our department of purchases and supplies in response to question No. 56 of the supplemental list of questions asked by the Select Committee. 2. This is the only contract we have with the West India Oil Co. of which we have record and was not included in our reply to question No. 21 of the original questionnaire, as it is a contract for storage and not for the purchase of oil. D. C. THORNton, Executive Assistant. FUEL OIL HANDLING CONTRACT-BERMUDA Date of contract, January 3, 1921. Effective date, January 1, 1921. Leased capacity of station, 35,000 barrels. Effective Number of barrels delivered, 162,206.31 barrels to March 31, 1924. Remarks: Contract subject to cancellation on 30 days' notice. May 1, 1923 the minimum monthly charge was reduced from $1,000 to $500 and the leased capacity reduced from 70,000 barrels to 35,000 barrels. Mr. J. H. SENIOR, Vice President, West India Oil Co., 26 Broadway, New York City. MAY 10, 1923. DEAR SIR: Referring to your letter of April 19, 1923, relative to an adjustment of our storage contract with you at Bermuda dated January 3, 1921, this will confirm our agreement that you will reduce the minimum monthly guaranty from $1,000 to $500 per month and continue to receive, store, and redeliver our oil at the price indicated in the contract of 20 cents per barrel; that we shall reduce the amount of storage you are required to set aside for our use to one 35,000-barrel tank. This modification to be effective as of May 1, 1923. It is also agreed that you are to purchase from us at $1.75 per barrel all the oil that we have in your storage in excess of 35,000 barrels and that you will accept our billing you at this price for all the oil that you have delivered to private ships since December 15, 1922, and for which we have not billed you to date, all other conditions of our contract remaining in force. Yours truly, Mr. M. W. BOWEN, M. W. BOWEN, Manager Fuel Department. WEST INDIA OIL CO., 26 Broadway, New York, April 19, 1923. Manager Fuel Department, United States Shipping Board, Emergency Fleet Corporation, Washington, D. C. DEAR SIR: Referring to your letter of February 1 and conversation with Mr. Wanzer to-day, we would be willing to consider the following proposition: First. To reduce your minimum monthly guarantee to $500 instead of $1,000 and continue at the present price of 20 cents per barrel handling charges. Second. You to agree to reduce the amount of storage you require to one 35,000-barrel tank. Third. We to purchase at the price of $1.75 per barrel the difference between the total amount on hand and 35,000 barrels, so that we will own outright all the oil in one tank and you the oil in the other. Awaiting your further advices, we are, Very truly yours, J. H. SENIOR, Vice President. 4021 Agreement entered into this 3d day of January, 1921, between the West India Oil Co., a New Jersey corporation, hereinafter called the corporation, and the United States Shipping Board, representing the United States of America, hereinafter called the board. 1. Witnesseth that the corporation hereby contracts to receive, store, and redeliver for account of the board fuel oil not heavier than 14° Baumé gravity, flash 150° Abel closed cup or better at the corporation's installation at St. Georges Island, Murray's anchorage, Bermuda, British West Indies, in such quantities and at such times as may be necessary to maintain a reasonable storage, within the capacity of the aforesaid installation, of fuel oil desired for delivery for ships' use, to ships designated by the board, for the period and upon the conditions hereinafter enumerated, as follows: 2. Specifications.-All measurements of oil handled hereunder shall be on the basis of 42 American measured gallons per barrel at 60° Fahrenheit and arrived at under the customary methods employed in measuring fuel oil in American commercial practice. In order to verify the quantities handled upon receipt or redelivery of the fuel oil, a representative of the board and a representative of the corporation shall agree upon the quantities, and receipts shall be signed by them certifying as to the quantities received and delivered. 3. Period. The period of this contract shall be for six months from the date of the first delivery by the board into the corporation's installation at St. Georges, which in any event shall not be later than one month after notification in writing to the board of completion of installation, and after the expiration of the aforesaid six months shall continue indefinitely, subject to cancellation by either party upon 30 days' notice in writing. 4. Stock reports.-The corporation agrees to furnish the board's designated agent at Washington, D. C., promptly a semimonthly report of fuel-oil receipts and issues during the preceding half month, which shall be supported by the original and one copy of the master's receipt for each and every delivery. 5. Loan of stocks. It is agreed between the parties hereto that the corporation may, when permitted by the board, draw upon stocks held for account of the board to such extent as may be necessary to take care of its, the corporation's requirements for its own trade, provided however that the corporation shall when required replace stocks so drawn with fuel oil of like quantity and quality, and it is further agreed by the corporation that the board may, under like conditions, draw upon the corporation's stocks from time to time as may be required, upon like terms of replacement. 6. Loss of stock. The corporation will be held responsible for fuel oil lost in storage, whether by leakage, fire, or other causes, unless such loss is shown to be from causes beyond the control of the corporation and not attributable to any negligence or lack of due care on the part of the corporation, its agents or employees. 7. Price. The corporation shall receive 20 cents United States gold per barrel of 42 gallons for the service of receiving fuel oil from ships alongside the corporation's installations (fuel oil to be pumped into the corporation's tanks by ship's pump) storing same in the corporation's tanks and redelivering same from storage tanks to steamers alongside the corporation's installation (fuel oil to be pumped from storage tanks by the corporation's power plant). The board guarantees, however, that the corporation shall receive not less than an average of $1,000 United States gold per month, this average to be figured over each successive six months' period (or fraction thereof in the event of cancellation during any six months' period), beginning with the date as of which this contract becomes in effect. 8. Contingencies.-The board shall pay all import and export duties which are now or may hereafter be imposed or levied on any oil which may be received, stored, or delivered by the corporation for the account of the board pursuant to the terms of this agreement, and in the event that the corporation shall be compelled to pay any such duties, the board will, within 30 days, reimburse it for the amount of such payments. It is understood between the parties hereto that the remuneration to be received by the corporation as provided in clause 7, for the receiving, storing and redelivering of fuel oil as provided herein, is based upon charges and conditions existent as of the date of these presents, and that in the event of the imposition or increase of such charges which would occasion increased expenses, it shall be mutually agreed between the board and the corporation as to which party shall bear such additional expense; and in the event of the failure to mutually agree upon a satisfactory basis, either party may at any time cancel this contract on 30 days' notice in writing to the other party. 9. Exceptions.-In the event of the corporation being rendered unable wholly or in part to carry out its obligations by reason of force majeure, it is agreed that such obligations shall be suspended during the continuation of any inability so caused without any liability whatsoever for the failure to carry out the conditions of this contract. It is further agreed that in the event of the corporation being unable to make deliveries to the steamers of the board, owing to conditions of force majeure, the board shall be released during such period from paying the corporation the average of $1,000 United States gold per month, as specified in clause 7. The term force majeure shall include acts of God, landslides, lightning, floods, earthquakes, fire, explosions, epidemics, strikes, lockouts, or other industrial disturbances, blockades, wars, insurrections, arrests, and restraints of rulers and people, civil disturbances, and any other causes whatever not within the control of the corporation and which by the exercise of due diligence, the corporation is unable to prevent or overcome. 10. Payment.-Payment shall be due on the 15th day of each month for quantities delivered to the board during the preceding month, subject to adjustment at the end of each six months' period, for any balance due the corporation owing to the average deliveries being less than at the rate of $1,000 per month. In witness whereof the parties hereto have by their proper officer, duly authorized, executed this contract in quadruplicate and set their hands and seals the day and year as above written. Witness: WEST INDIA OIL CO., J. H. SENIOR, Vice President. By J. B. WHITE, Secretary, By UNITED STATES SHIPPING BOARD, General Counsel. L. W. TRUDGIAN, M. W. BowEN. EXHIBIT 256 STATEMENT OF THE SALE OF THE TUG "BALDROCK" TO UNITED STATES & BERMUDA TOWING CO. The tug Baldrock is a steel coal-burning ocean tug of 426 gross tons, 150 feet length, 141 feet 3 inches between perpendiculars, 16 feet 8 inches depth, 27 feet 6 inches breadth, equipped with triple-expansion engine (800 indicated horsepower), and two Scotch boilers. She is one of 41 coal-burning tugs of this type constructed under the board's program. In May, 1922, the tug Baldrock was sold to United States & Bermuda Towing Co. (Inc.), for $50,000 cash "as is, where is."__Coincident with the sale of the tug, a contract was entered into between the Fleet Corporation and the buyer by which the latter agreed to perform towboat services for the Fleet Corporation in the vicinity of Bermuda. Prior to the sale the tug Baldrock had been operated by the board's branch office at Bermuda. The price of $50,000 is that which was fixed for the tugs of the Baldrock class, and fifteen tugs of similar design have been sold at the same price. EXHIBIT 257 APRIL 25, 1924. WRECKING OF THE TUG "BUTTERFIELD" AND OF THE STEAMSHIP "MANATEE" AT BERMUDA The above cases are not wrecks but strandings in consequence of the above vessels grounding on reefs shortly after they were towed to anchorage. The stranding of the steamship Manatee and the tug Butterfield was in connection with the towage of the oil barge Wasagya from Ponta del Gada to Norfolk, and the following is a brief detailed account of this towage, including the expenses in connection with the towage and expenses resulting from the accidents encountered: |