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TANKER VESSELS

HEARINGS

BEFORE THE

PERMANENT SUBCOMMITTEE

ON INVESTIGATIONS OF THE
COMMITTEE ON GOVERNMENT OPERATIONS

UNITED STATES SENATE

EIGHTY-SECOND CONGRESS

SECOND SESSION

PURSUANT TO

S. Res. 251
A RESOLUTION AUTHORIZING THE COMMITTEE ON
EXPENDITURES IN THE EXECUTIVE DEPARTMENTS

TO CARRY OUT CERTAIN DUTIES

FEBRUARY 18, 19, 20, 27, 28, MARCH 4, 5, 6, 7, 10, 11, 12,

13, AND 14, 1952

Printed for the use of the
Committee on Expenditures in the Executive Departments

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COMMITTEE ON GOVERNMENT OPERATIONS

JOHN L. MCCLELLAN, Arkansas, Chairman CLYDE R. HOEY, North Carolina

JOSEPH R. MCCARTHY, Wisconsin HERBERT R. O'CONOR, Maryland

KARL E. MUNDT, South Dakota HUBERT H. HUMPHREY, Minnesota MARGARET CHASE SMITH, Maine MIKE MONRONEY, Oklahoma

ANDREW F. SCHOEPPEL, Kansas THOMAS R. UNDERWOOD, Kentucky HENRY C DWORSHAK, Idaho BLAIR MOODY, Michigan

RICHARD M. NIXON, California WALTER L. REYNOLDS, Chief Clerk

PERMANENT SUBCOMMITTEE ON INVESTIGATIONS

CLYDE R. HOEY, North Carolina, Chairman JOHN L. MCCLELLAN, Arkansas

JOSEPH R. MCCARTHY, Wisconsin HUBERT H. HUMPHREY, Minnesota KARL E. MUNDT, South Dakota THOMAS R. UNDERWOOD, Kentucky RICHARD M. NIXON, California

FRANCIS D. FLANAGAN, Chief Counsel

II

CONTENTS

Appendix...

Index..

Schedule of exhibits..

Testimony of

Bergen, F. Willard, vice president, Marine Transport Lines, New

York, N. Y

Carson, Joseph K., Jr., Portland, Oreg --

Casey, Joseph E., attorney, Washington, D. C.

Cochrane, Vice Adm. E. L., Maritime Administrator, United States

Department of Commerce

Dorn, David Richard, secretary and treasurer, American Overseas

Tanker Corp-

Dudley, Robert W., attorney, Washington, D. C.

Falck, L. James, Assistant Chief, Shipping Policy Staff, State Depart-

ment.

Frantz, M. Daniel, attorney, New York, N. Y.

Goertner, Francis B., attorney, Washington, D. C-

Guthrie, Randolph H., attorney, New York, N. Y.

Hawthorne, George D., treasurer, Marine Transport Lines, New York,

N. Y..

Jarvis, David B., president, Sieling & Jarvis, Inc., New York, N. Y.,

Klein, E. Stanley, vice president, John P. McGuire & Co., New York,

N. Y.

Konow, Olga, president, American Viking Corp., New York, N. Y

Leece, William A., assistant counsel, Senate Permanent Subcom-

mittee on Investigations-

Lenfest, Harold C., president, United Tanker Corp., New York, N. Y.

McKeough, Raymond S., International Claims Commission, State

Department

Mellen, Grenville, Gulfport, Miss

Morris, Newbold, attorney, New York, N. Y---

Oppe, Joseph S., Assistant Chief, Office of Tanker Services, National

Shipping Authority, Washington, D. C.---

Rosenbaum, Joseph H., attorney, Washington, D. C.

Smith, Vice Admiral William Ward, United States Navy, retired,

Washington, D. C.---

Stakem, Thomas Edward, Assistant to Deputy Administrator, Mari-

time Administration, United States Department of Commerce.

Syran, Arthur G., director of transportation, Mutual Security Agency,

Washington, D. C..

Wasson, Houston H., attorney, New York, N. Y.

Westerlund, William N., president, Maritime Transport Lines, New

York, N.Y.

Wright, Robert, Assistant Chief, Economic Defense Staff, State De-

partment.

Thorp, Willard L., Assistant Secretary of State for Economic Affairs,

State Department.

24

431

SCHEDULE OF EXHIBITS

Introduced on P.

Appears on p.

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1. American Overseas Tanker Corp. application filed with

United States Maritime Commission for purchase of

20 T-2 tankers, August 27, 1947.-2. Amendment No. 1 to American Overseas Tanker Corp. ap

plication, September 17, 1947--3. Contract of sale entered into by American Overseas Tanker

Corp. and the Maritime Commission for five T-2 tankers,

December 19, 1947.4. Amendment No. 4 to American Overseas Tanker Corp. ap

plication, January 22, 1948.5. Charter agreement entered into by American Overseas

Tanker Corp, and Greenwich Marine Corp., October 21,

1947.----6. Bareboat charter entered into the Greenwich Marine Corp.

and Panama Transport Co., October 21, 1947.---7. Loan agreement between American Overseas Tanker Corp.

and Metropolitan Life Insurance Co., December 30, 19278. Letters from George Trypanis, David R. Dorn, and Mrs.

Mary Dracopoulos to the Compania Internacional de

Vapores, Panama, August 15, 1950.. 9. List of stockholders in American Overseas Tanker Corp.

and Greenwich Marine Corp. as of date of transfer, June

26, 1950.. 10. Minutes of meeting of United States Maritime Commission,

January 22, 1948.--11. Statement from Office of the Secretary of State of Delaware

re certificate of incorporation of National Tanker Corp.,

November 1, 1948. 12. Agreement between United Tanker Corp. and National

Tanker Corp., January 24, 194813. Telegram from United Tanker Corp. to United States

Maritime Commission and reply, February 2, 1948, and

February 3, 1948, respectively-14. Contract of sale between American Overseas Tanker Corp.

and United States Maritime Commission, December 31,

194715. Letter from George H. Helmbold, Chief, Bureau of Oper

ations, United States Maritime Commission, to National

Tanker Corp., January 31, 1948 16. Letter from Joseph E. Casey, president, National Tanker

Corp., to George H. Helmbold, United States Maritime

Commission, February 2, 1948... 17. List of stockholders of National Tanker Corp., January 26,

1948.--18. Application of United Tanker Corp. to United States Mari

time Commission, December 10, 194719. Letter from Newbold Morris to Carroll Perry, United States

Maritime Commission, December 11, 1947. 20. Letter from E. Stanley Klein to Julius C. Holmes and

Joseph E. Casey, January 21, 1948.*May be found in the files of the subcommittee.

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IV

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21. Contract of sale between United States Maritime Commis

sion and American Overseas Tanker Corp., December 31,

1947. 22. Affidavit of Julius C. Holmes, January 30, 1952. 23. Letter from Commissioner Dunlap to Francis Flanagan,

January 29, 1952.-24. List of vessels owned or in the service of companies which

are understood to be controlled by Stavros S. Niarchos'

interests, February 15, 1952.25. Statement re world tanker fleet.. 26. Agreement between Robert L. Berenson and Robert W.

Dudley, January 7, 1948.. 27. Agreement between Robert W. Dudley and the firm of

Goodwin, Rosenbaum, Meacham & Bailen, April 15,

1949.. 28. Agreement between American Overseas Tanker Corp. and

United Tanker Corp., January 19, 1948--29. Agreement between United Tanker Corp. and Mrs. Olga

Konow, February 3, 1948_ 30. Agreement between China Trading & Industrial Develop

ment Corp. and the Wonok Corp., February 18, 1948. --31. Agreement between United Tanker Corp. and Mrs. Olga

Konow, December 7, 1949.-31A. Computation of China Trading & Industrial Development

Corp. dry-cargo vessels.. 32. Cablegram from Sieling & Jarvis to Masters, December 18,

1950.. 33. Compilation of ECA payments for freight on United Tanker

Corp tankers 34. List of United Tanker Corp. charters to Soviet to carry oil

to Communist China.35. Letter from Secretary of Defense Louis Johnson to Maj.

Gen. Philip B. Fleming, Chairman Maritime Commission,

October 4, 1949.36. Letter from Senator Richard M. Nixon to Admiral E. L.

Cochrane, Maritime Administrator, and reply, March 3,

1952.. 37. Statement of legal fees billed by Lovejoy, Morris, Wasson

& Huppuch to United Tanker Corp. for the years 1948 to

1950, inclusive... 38. Copy of libel complaint by Department of Justice against the

steamship Meacham and answer. 39. Application for remission or mitigation of forfeitures or

penalties with respect to certain T-2 tankers.. 40. Letter from David Jarvis to State Department, August 18,

1949. 41. Memorandum from Director, Transportation Division,

ECA, to Ty Wood, Assistant Administrator for Opera

tions, ECA, July 29, 1949. 42. Memorandum from Arthur G. Syran, ECA, May 3, 1950.43. Memorandum from Arthur G. Syran, ECA, to Harry J.

Miller, ECA, July 13, 1950.44. Letter from Secretary of Defense Louis Johnson to Secretary

of State Dean G. Acheson, January 17, 1950.45. Letter from Secretary of Defense Louis Johnson to Secretary

of State Dean G. Acheson, April 24, 1950.-46. Letter from James E. Webb, Undersecretary of State to Maj

Gen. Philip B. Fleming, Chairman, United States Mari

time Commission, May 18, 1950. May be found in the files of the subcommittee.

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