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ment or the just lump sum to be paid by the Government in lieu of reconditioning the ship. Following is the form of letter of notification of intention to redeliver:

Sir: You are hereby notified that the War Department will turn over and deliver to you the S. S.

as soon as practicable after completion of the present voyage.

The present voyage will be completed upon the arrival of the vessel at this port, which it is expected will be on

You will be advised of the actual date of arrival as soon as it is known.

Should you deem that in accordance with the terms of the charter, you have any claim against the War Department on account of this vessel while in the service of the War Department, for alleged damages or otherwise, it is requested that you submit without unnecessary delay, a verified statement giving in detail the items and the amounts involved to recondition the vessel according to the terms of the charter,

The claim should be complete, represent your entire claim, and should so state.

It is requested that either yourself or your representative be present during the survey of the vessel, before redelivery, for free consultation with members of the board in surveying the vessel and for conference in determining a just settlement or a just lump sum to be paid you by the Government in lieu of reconditioning the ship.

(Signature of officer in charge of redelivery.) **[Par. 2]

92.16 Prompt redelivery. In accordance with the terms of the charters of ships in War Department service, upon giving five days' written notice to the owner, the United States may at any time, when the vessel is at a United States port, cancel the requisition charter without prejudice to the accrued rights of either party. In order that the owners may regain use of the vessel for commercial service as soon as practicable, it is desirable that this notice be served with a view of prompt redelivery of the vessel after the needs of the United States for the actual use of the vessel have been concluded, and when the vessel has been retained in the possession of the United States sufficient time to enable a thorough survey of the vessel to be made with a view of collecting all available evidence from the ship to determine the repairs necessary to recondition the ship, in accordance with the terms of the charter, or lump-sum settlement to be paid in lieu of repairs.** [Par. 3]

92.17 Notification of redelivery. Therefore, when it is seen that the board of survey will complete its survey, findings, and recommendations, and that the vessel will be ready for redelivery on a certain date, the officer in charge of the port will cause a proper notice to be served upon the owner in accordance with the terms of the charter, stating in substance that on and after the date fixed the ship in question will be considered as redelivered to the owner, and that all responsibility therefor on and after such date will be with the owner and that the War Department from such date will assume no obligations or liability concerning the vessel. In case of Army vessels manned by the Navy the Navy

Department will be advised of such action and will be requested to effect the actual delivery of the ship at the time desig

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*For statutory citation, see note to & 92.1.

of

nated. The following form of letter will be used for notification of redelivery:

Sir: You are hereby notified that the War Department will turn over and deliver to you the S. S.

at

city State of

on the

day of at o'clock, this notice being sufficient in accordance with the terms of the charter.

You are further notified that from and after the above date and hour the said steamship will be at your expense for caretakers, wharfage and all other respects, no liability therefor remaining thereafter against the United States, the vessel being held thereafter subject to the owner's risk without prejudice to accrued rights.

**[Par. 4]

(Signature of the officer in charge of redelivery.) 92.18 Inventory board. The inventory board will consist of at least two officers. The duties of the board will be to prepare an inventory and a statement of consumable stores. The itemized inventory and the statement will be delivered to the board of survey for their consideration as prescribed in & 92.19 (a). All articles of equipment on the ship supplied by the War Department to which the department retains title will be removed. All equipment belonging to the vessel will be inventoried by the inventory board accompanied by a representative of the owner, if practicable.*+ [Pars. 6, 7]

92.19 Board of survey-(a) Composition and general functions. The board of survey will consist of three officers. The board will be provided with the services of any necessary technical advisors. Its duties will be to survey the vessel to determine the actual damages, if any, sustained by it while in the service of the War Department; to estimate the cost of repairs necessary to recondition the vessel in accordance with the terms of the charter, and to determine the lumpsum settlement regarded as just compensation to be paid the owner in lieu of repairs. În preparing their report the board of survey will consider the inventories and statements of consumable stores.

(b) General procedure. The board of survey will survey each vessel as soon as possible after its arrival at the port and, after consideration of any itemized claims for damages submitted by the owner and of all possible evidence obtained relating to the history of the ship and its services prior to allocation to the War Department, it will come to a finding. It will make a recommendation of the necessary repairs that should be made to place the ship in the same or as good order and condition as that in which she was when delivered to the United States, ordinary wear and tear and damage due to the operation of risks assumed by the owners excepted, and the lump sum regarded as just compensation for the damage occasioned to the vessel that it recommends to be paid in lieu of repairs. When, in the judgment of the board, minor repairs can be made without interference with the survey of the vessel, the matter should be brought promptly to the attention of the officer in charge of the port for necessary action. The board at its discretion may solicit bids for the accomplishment of repairs and consider such bids in arriving at the award determined upon. In case any member of the board disagrees with the

*For statutory citation, see note to § 92.1.

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majority, he will submit a minority report to be forwarded with the report of the board.

(c) Testimony. Testimony should be brief, to the point, provide facts, and not opinions. Interrogation as to a number of items of similar character can oftentimes be grouped together and considered in one question. If the witness says he does not know about the facts he should be interrogated as to who might know. The testimony of officers, crew, or persons who have personal knowledge of the facts will be taken to establish (1) the condition of the ship prior to and during War Department service. Testimony as to ship's age and its prior use, such as for carrying sulphur, etc., has an important bearing, as does history as to collisions, etc.

, (2) how the damage was occasioned and when, i, e., if prior to War Department use or by third parties or through collision or accident or what other manner. For example: Testimony has shown that refrigeration repairs were due not to stevedore damage as claimed, but to original defective construction.

(d) Owners not to participate in board's discussions. The owners will not be allowed to participate in any discussion between representatives of the Government as to the proper amount to be paid the owners, nor will owners, their lawyers or representatives, be given access to the facts, figures, testimony, and information gathered by the Government officials in the preparation of its case.

(e) Basis of dealings with owners. All dealings with the owners should be on the basis of claims submitted by them and should consist of approving or disapproving each item in the light of the facts obtained from the War Department's investigations.

(f) Lump-sum agreement with owners. The owner of the vessel or his authorized representative should be consulted by the board of survey with the view of recommending, if practicable, a just lump-sum payment in lieu of repairs that would be accepted by the owner. The owner or his authorized representative should sign a statement on the report as to his willingness to accept the lump-sum payment recommended in final settlement and should give full release of all claims and liabilities covering the use of the vessel while in the service of the War Department, or furnish the board of survey with a statement of his objections, to be forwarded with the report of the board. The release should be on the form prescribed for the purpose.

(g) Time allowance. A rule for estimating time allowance or demurrage is to determine the period required to accomplish the repairs on Government account and deduct from this the length of time required to complete repairs to be made on owner's account. For example: If the Government repairs require 20 days, owner's 10 days, the time allowance should not exceed 10 days. The owner can not object to this deduction on the theory that he does not intend to make these repairs following redelivery. Further, for example: If the Government repairs will require 10 days and the owner's repairs 20 days, there should be no time allowance granted whatever. The basis for computing demurrage is not charter hire but the prevailing rate of hire that such vessel could earn when released for service. It may be less than charter hire. In case it should be greater that fact

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should be considered in advance in determining whether the charter should be canceled.

(h) Form of charter to be considered. The form of charter should be considered especially with reference to the obligations of the War Department for reconditioning. Under a time charter when a vessel is manned by the owner he is responsible for maintaining the vessel in efficient state and operating it. Repairs which become necessary in that connection are for his account, the War Department being chargeable for such damage as results directly from the carrying of its cargo or troops, and which is not chargeable to wear and tear. The War Department is also chargeable with the reconditioning of alterations made for its convenience. Under bare-boat charter the War Department mans the vessel, and has the use of all equipment and stores and full charge of the operation. In this case the owner is chargeable with the wear and tear incident to the service contemplated under the charter, but the repairs necessary for maintenance and operation, accounts for articles of inventory and stores, and the reconditioning of alterations are chargeable to the War Department. The board of survey should consult the judge advocate, maritime affairs, concerning the determination of the extent of the Government's obligations under the charter.

(i) Dry docking. When an inspection of the hull is deemed necessary to enable the board of survey to arrive at a decision as to the repairs necessary for damage claimed by the owners, the officer in charge of the port will arrange for the necessary dry docking, and in the case of Navy manned vessels the Navy Department will be requested to make arrangements for prompt dry dockings so that the work of surveying both the inside and the outside of the vessel may proceed simultaneously. If it is found impossible to obtain necessary dry docking facilities, the matter will be reported to the Quartermaster General for his decision as to whether the board of survey shall delay its findings until dry docking is had or whether the board shall submit a partial recommendation. In every case, however, unless specific instructions to the contrary are given, the report of the board of survey should cover fully in its recommendation the disposition of all claims for damages incurred on the vessel.

(j) Alterations and additions. Inquiry should be made as to whether or not any repairs or additions have been made to the vessel by which its condition has been bettered, and if so the value of these betterments so that the proper credit may be taken by the Government in the settlement. For example: Winches may have been installed by the Government and not taken off at redelivery. The mere fact that the removal of such installations might cost more than would be their value after removal is no reason for not crediting the Government with their value if they are left on board and are an improvement to the vessel. In case a money allowance is made to the owners for their removal, the Government should receive credit for the value they will have after removal, or provision should be made that they be turned over to the proper Government department. In the case of gun mounts, gun crew's quarters, etc.,

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it is particularly necessary to establish by testimony, as nearly as possible, the date of installation in order that the responsibility for removal may be properly placed.

(k) Seaworthiness. "Inquiry should be made as to whether or not at the time of delivery to the Army repairs were made to render the vessel seaworthy, and for which a reduction should be made by the War Department in any settlement made by the owners. The facts in connection with this should be ascertained and reported together with such information as is obtainable as to whether notice for the necessity of these repairs was brought to the attention of the owners at the time. In some cases the Government has possibly waived its right to collect for these seaworthy repairs but the facts in connection should be shown in the report, and the charter will be followed as to charging them to owner's account in the absence of other facts.

(1) Consumable stores and inventory. The board should examine carefully the survey, the statement of consumable stores and inventory made at the time the vessel was originally taken over. Awards made by the inventory board should be closely scrutinized to avoid duplication of any items by allowing them as restoration on the report of survey.

(m) Fair wear and tear. In determining lump sum for damages or in considering just and reasonable repairs to place the vessel in same condition as when received, no payment or repairs will be made where damages result from fair wear and tear.

(n) Dock trial. In redelivery the dock trial should be in the presence of old and new engine departments.

(0) Points to be included in report of board of survey. The report of the board of survey will include the following:

(1) A brief statement of the time, place, and character of the inspection made by the board of survey in arriving at the conclusions reached in their report.

(2) A brief history of the vessel, showing when and where it was received into the War Department service, under what circumstances, and charter arrangements; the use of the vessel in the Army service; the general condition of the vessel at the time of its delivery to the Army compared with condition of redelivery; a statement showing whať property and equipment have been installed by the War Department during its use of the vessel.

(3) An itemized statement of the repairs necessary to put the vessel in condition required by charter and the lump sum regarded as just compensation for the damage thus occasioned to the vessel and recommended to be paid in lieu of repairs, giving such detail as will clearly indicate the reason for the action of the survey board.

(4) In case repairs are to be made a statement that these repairs cover only damage done to the vessel while in the War Department service and required to place the vessel in the same or as good condition as that in which she was taken over for operation for the War Department, ordinary wear and tear excepted.

(5) In the event that a money payment is recommended by the board covering the time the vessel is undergoing repairs, a statement that such payment covers the loss of services of the vessel dur

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