File No. 863.852M36/29
Memorandum of the Assistant Solicitor for the Department of State ( R. W. S. Hill)
Dear Mr. Woolsey: On August 17, the United States Shipping Board informed the Department that they desired to seize for immediate military purposes an “interned” Austrian vessel, if the President and the Department of State deems such a course entirely proper in view of our international obligations, and inquired whether article 9 of our treaty of 1829 with Austria-Hungary would, in view of this Department, prevent the seizure of this vessel.
On August 28, the Department replied, advising that no objection was perceived to such seizure, so far as article 9 of the treaty mentioned was concerned, and added, “as the vessel in question is not enemy property it is presumed that the Government will be prepared to indemnify the owners if the vessel is taken over for Government purposes.”
On August 31, the Shipping Board enclosed to the Department a copy of the following notice to Phelps Bros. & Co., the United States agents of the Austrian steamship Martha Washington:
Please take notice that the United States, through the United States Shipping Board, hereby requisitions the Austrian steamship Martha Washington now lying at the port of New York, to meet the urgent military necessity of the Government at this time.
We shall be pleased to confer with you respecting the terms of this requisition.
It is assumed that this vessel was requisitioned in the exercise of authority conferred upon the Board by the President in pursuance of the authority vested in him by the act approved June 15, 1917:
To purchase, requisition, or take over the title to, or the possession of, for Use or operation by the United States any ship now constructed or in the process of construction or hereafter constructed, or any part thereof, or charter of such ship.
On September 17, the United States Shipping Board requested to be informed whether the question of determining and paying charter hire should be left entirely to diplomatic negotiations now or after the war, or whether it was agreeable to the State Department that the Shipping Board should determine the terms of hire and notify the State Department of the arrangement reached.
In reply the Department, on October 10, informed the Shipping Board that it perceived no reason why the Board should not endeavor to reach an arrangement with the interested parties respecting charter hire for this vessel.
[Page 452]Enclosed with the letter of the Shipping Board of September 17, was a copy of a letter of same date, from the Board to Phelps Bros. & Co., in which they state:
By our notice that we would be pleased to discuss with you the terms of requisition of the Martha Washington, we did not intend to indicate that we were opening the way to negotiations for the charter of this vessel as this vessel has been requisitioned under a right clearly defined under international law. The urgent military necessity which calls forth the exercise of this power equally demands that no delay of negotiations should obstruct the right of the Government to use her immediately.
Compensation will of course be paid in due time to the propel parties for the use of this ship. It is for the purpose of determining a fair rate of hire and of settling the disposition of the money due for the use of the Martha Washington that we suggested a conference.
While the above provisions of the act of June 15 would apparently permit this Government to take over the title to this vessel, it would appear from the foregoing letter of the Shipping Board of September 17, 1917, that only the use of the vessel was requisitioned. In this relation the Commissioner of Navigation advises that American registry has not been granted this vessel. It appears that subsequent to the requisition of the vessel, negotiations were entered into by the Shipping Board, with those interested in the vessel, with a view to purchasing same, but no agreement appears to have been reached with regard thereto at the time of our declaration of war against Austria-Hungary. In a letter dated November 29, the Shipping Board referred to the possible purchase of this vessel, stating, “although she has been requisitioned, as you know, and is actually in the service of the Army, we think that money can be saved if we buy her at approximately $2,250,000.” In this circumstance, if as appears to be the case, the title to this vessel did not vest in the United States when requisitioned there would appear to be no reason why this Government, through the Shipping Board, should not take over the title to the vessel in the exercise of authority conferred upon the Board by the President in pursuance of the authority vested in him by Joint Resolution of May 12, 1917—
to take over to the United States the immediate possession and title of any vessel within the jurisdiction thereof, including the Canal Zone and all territories and insular possessions of the United States except the American Virgin Islands, which at the time of coming into such jurisdiction was owned in whole or in part by any corporation, citizen, or subject of any nation with which the United States may be at war when such vessel shall be taken, or was flying the flag of or was under register of any such nation or any political subdivision or municipality thereof; and, through the United States [Page 453] Shipping Board, or any department or agency of the Government, to operate, lease, charter, and equip such vessel in any service of the United States, or in any commerce, foreign or coastwise.