Papers Relating to the Foreign Relations of the United States, 1918, Supplement 2, The World War

File No. 863.85/20

Mr. Charles S. Haight ¹ to the Counselor for the Department of State ( Polk)

New York, December 21, 1917.
[Received December 22.]

My Dear Frank: I have learned today, with a good deal of apprehension, that the question of seizing the Martha Washington as an enemy vessel was being seriously considered yesterday by the Shipping Board. It seems to me that such action would be inopportune at the present time, for the following reasons:

1. As you know, Phelps Bros. & Co. have been cooperating with the Shipping Board for some two or three months past, in an effort to acquire the Austrian ships in Spain, which number 23. Now that the question of remitting the money for the last vessels sold has finally been settled, Phelps Bros, are at last in a position to press their negotiations. It is unfortunate that the license to remit could not be obtained from the War Trade Board and the whole transaction consummated before the United States declared war upon Austria. However, that milk has already been spilled. Our declaration of War has now rendered the transaction more difficult, and I very much fear that the seizure of the Martha Washington may still further jeopardize our success, since the action of the owners upon any offer of purchase must depend very largely upon the attitude of the Austrian Government, and that attitude cannot be improved by the seizure of the Martha.

2. Up to the present time, all other Austrian ships in American ports have been acquired by purchase, the Martha Washington being the only one left. It seems to me that it would be wise not to create the necessity for an after-war discussion with Austria, when only one ship is involved.

3. If the Martha is seized, compensation probably will have to be paid her owners after the war, and, if so, we can hardly pay less than requisition rates. I am positive that a buyer could be found (if the Shipping Board does not wish to pay the owners’ price) who would purchase the vessel today and agree to accept from the Shipping Board the requisition rate for her employment by the Government so long as the war lasts. This method would not only simplify pending negotiations but would evade all possible after-war discussion and would keep the vessel under the American flag or some Allied flag for the after-war trade.

If you agree with me in the above, could you consistently use your influence to safeguard the situation?

Very sincerely yours,

Charles S. Haight

1. Of Haight, Sanford & Smith, New York City.