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CONTENTS

447

159
559
169

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, DC

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, DC
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.

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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. í 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, 19478. 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, 1948 13. 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,

1947.15. 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, 195223. 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, 194942. 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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VI

SCHEDULE OF EXHIBITS

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on p.

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47. Letter from Maj. Gen. Philip B. Fleming, Chairman, United

States Maritime Commission to Secretary of Defense

Louis Johnson, November 1, 1949 48. Letter from Secretary of Defense George C. Marshall to

Secretary of State Dean G. Acheson, October 5, 195049. Letter from Newbold Morris to Secretary of United States

Maritime Commission, December 11, 1947--50. Statement from Cadwalader, Wickersham & Taft, New

York, February 7, 1951... 51. Press release from the Chinese Embassy, Washington, D. C.,

April 13, 1951.. 52. Letter from Senator Karl E. Mundt to Secretary of Navy

Dan A. Kimball and reply, March 7, 1952, and March

11, 1952, respectively -53. Application for relief from forfeitures filed with Secretary of

Federal Communications Commission, August 27, 1951.54. Letter from Francis B. Goertner, Assistant General

Counsel, United States Maritime Commission to Messrs.

Post, Morris & Lovejoy, February 3, 1948.55. Photostatic copy of entry from office_diary of Admiral W.

W. Smith, Maritime Commission, December, 1948. 56. Memorandum from Commissioner Raymond McKeough

to Chairman of United States Maritime Commission,

December 19, 1949, and attachments.---
57. Report from Paul A. Walker, Chairman, Federal Com-

munications Commission to Senate Permanent Subcom-
mittee on Investigations, March 12, 1952

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SUPPLEMENTAL DATA

1. Charts mentioned by William A. Leece throughout his

testimony

24-66

After

p. 742

SALE OF GOVERNMENT-OWNED SURPLUS TANKER

VESSELS

MONDAY, FEBRUARY 18, 1952

UNITED STATES SENATE,
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS

OF THE COMMITTEE ON EXPENDITURES
IN THE EXECUTIVE DEPARTMENTS,

Washington, D.C. The subcommittee met, pursuant to Senate Resolution No. 251, Eighty-second Congress, second session, agreed to January 24, 1952, in room 357 of the Senate Office Building, Senator Clyde R. Hoey (chairman of the subcommittee), presiding.

Present: Senators Hoey, McČlellan, Underwood, Mundt, and Nixon.

Also present: Francis D. Flanagan, chief counsel; William A. Leece, assistant counsel, and Ruth Young, chief clerk.

Senator Hory. The committee will please come to order.

I will ask that if the photographers have not taken all the pictures they wish to, they take them now, so that we may proceed with expedition. We will follow the usual practice of not taking pictures during the time the witnesses testify. Whatever pictures are to be made will be made before the witness begins to testify.

I wish to make a brief opening statement.

Last year the Subcommittee on RFC of the Senate Committee on Banking and Currency received testimony that a group headed by Joseph E. Casey had acquired eight tanker vessels from the Maritime Commission. After the RFC Subcommittee had taken some testimony in connection with these tanker transactions, it decided that further investigation in this case was beyond the scope of its jurisdiction. For that reason Senator Fulbright, the chairman of the RFC Subcommittee, referred this case for further investigation to this subcommittee. At about this same time last year the Senate Committee on Interstate and Foreign Commerce was also making preliminary inquiries in the case and the chairman of that committee also made available to us the results of his inquiry.

The investigation by our staff indicates that the group headed by Mr. Casey purchased and chartered eight vessels through the American Overseas Tanker Corp. and its several affiliates and subsidiaries. The purchase of five of these tankers from the Government was financed through a loan of $9,705,000 by the Metropolitan Life Insurance Co. Thereafter these five vessels were operated under a charter agreement with the Panama Transport Co., a Panamanian subsidiary of the Standard Oil Co. of New Jersey. The other three

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