File No. 863.852/12a

The Secretary of State to the Chargé in Austria-Hungary ( Grew)

[Telegram]

1644. For Austro-Americana [from Phelps Bros. & Co.]:

We have sold to responsible American buyers for United States registry all 10 steamers covered by your wireless and as authorized by your cable from Lucerne received April 2.2 Price $123 per deadweight ton less our 5 per cent commission and legal expenses. Buyers pay repairs for wilful damage up to $25,000 each steamer. Ten per cent on your boats already paid; balance on delivery of bills of sale. Payments other 3 due in same manner on receipt of definite authority from owners. Necessary they file power of attorney with our Embassy in Vienna and have Washington State Department advised thereof. Have exhibited all papers including guaranties to your Embassy, but in the absence of direct Government instructions [Page 447] your Ambassador declines to direct consuls to close Austrian registers. Ambassador has, however, cabled recommending transaction and asking necessary instruction. Do everything possible to expedite and have captains instructed to cooperate fully with us. Recommend you obtain for us firm authority and net price on other Austrian steamers, especially Martha, Laura, Alice, Borneo, Moro-witz, lodging necessary powers of attorney with American Ambassador. Borneo, Morowitz in jeopardy because funds exhausted and $35,000 debts already unpaid. Phelps Bros. & Co.

Lansing
  1. These messages not found in the files.