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COSMOPOLITAN SHIPPING CO.,

ARMSTRONG CORK CO., New York, N. Y., May 15, 1929.

42 Broadway, New York City. GENTLEMEN: This will acknowledge your letter of May 14 with regard to the sale of the America-France Line, which you have been operating for the United States Shipping Board.

We take this opportunity to express our appreciation for the kind and courteous attention given to our shipments of linoleum to the ports of Havre and Bordeaux. As a matter of fact, the service over your line to the above-mentioned ports, as well as the excellent cooperation of your office and dock forces, resulted in the Armstrong Cork Co. giving you practically all of our linoleum shipments. The prompt sailing of the steamers and the good condition of the packages upon arrival at both destinations was a leading factor in using the AmericaFrance Line to the above-mentioned ports.

We certainly trust and hope that you will be the successful bidder in the taking over of this line.

Very truly yours,

ARMSTRONG CORK Co.,
E. B. BOYER.

Eb: HM.

CALUMET AND HECLA CONSOLIDATED COPPER CO.,
Boston, May 18, 1929.

COSMOPOLITAN SHIPPING Co.,

42 Broadway, New York City.

DEAR SIRS Referring to your letter of May 14. The French Atlantic service as operated by American-France Line has been most satisfactory to our company, and we should be very sorry to have any interruption in the pleasant relation we have had with your line. You may rest assured that your company will receive our bookings in every case where it is possible to give them to you. Yours very truly,

CALUMET AND HECLA CONSOLIDATED COPPER CO.,
F. C. D.

NOTICE OF INVITATION FOR BIDS

UNITED STATES MARITIME COMMISSION,

Washington.

Invitations for bids for the charter for 1 year of the four Government-owned steamship lines now operated by the U. S. Maritime Commission's managing agents were issued today by the Commission in accordance with the provisions of the new merchant marine act which require the Commission to either charter or sell these lines and terminate the present method of operation within 1 year of the enactment of the law. The expiration date is June 29. The bids are returnable on March 1.

The lines and the number of vessels offered for charter together with the routes they serve and the number of sailings per year that will be required under the charter arrangement follows:

America Hampton Roads Yankee-France U. K. Line.-Seven vessels with an aggregate deadweight tonnage of 56,030 tons, 36 sailings between United States Atlantic ports, north of Cape Hatteras (with the privilege of calling at St. Johns, N. B. and Halifax, N. S.) and ports on the east coast of the United Kingdom, French Atlantic and Channel ports, and Hamburg/Bremen (except between New York and London; Baltimore, Hampton Roads and New York and Hamburg/Bremen). Bidders must be prepared to commence service on this line by April 15. The America Hampton Roads Yankee-France U. K. Line is a consolidation of the American Hampton Roads-Yankee Line now operated by Southgate Nelson Corporation of Norfolk, Va. and the America France Line operated by the Cosmopolitan Shipping Co., Inc., of New York.

American Hampton Roads Yankee Line.-Fortnightly service to and from London, Hamburg, Hull, Leith, and Dundee.

American-France Line.-Monthly service to and from Havre and Dunkirk. American Republics Line.-Ten vessels having an aggregate deadweight tonnage of 82,847 tons; 36 sailings between United States Atlantic ports and ports on the east coast of South America, south of and including Para, Brazil. This line is now operated by C. H. Sprague & Son, Inc., of Boston. Bidders must be prepared to commence service on this bid by March 10.

FORTNIGHTLY SERVICE IN AND OUT OF BOSTON

Oriole Lines; four vessels having an aggregate deadweight tonnage of 37,364 tons; 26 sailings between United States Atlantic ports, north of Cape Hatteras (with the privilege of calling at St. Johns, New Brunswick, and Halifax, Nova Scotia), and west coast United Kingdom and Irish ports. This line is now operated by Southgate Nelson Corporation, of Norfolk, Va. Bidders must be prepared to commence service on this line by April 20.

FORTNIGHTLY ARRIVALS FROM MANCHESTER, LIVERPOOL, GLASGOW, DUBLIN, AND CORK— NO OUTWARD

American Pioneer Line; twelve vessels having an aggregate deadweight tonnage of 109,389 tons; three services:

India service.-Ten sailings per year between United States Atlantic and Gulf ports via the Suez Canal and ports in the Red Sea, India, and Ceylon in the Karachi-Calcutta range, with the privilege of calling at ports in Burma and North Atlantic Canadian ports.

MONTHLY SERVICE TO BOSTON

Australia service.-Nine sailings per year between United States Atlantic and Gulf ports and ports in Australia via the Panama Canal, with option of calls at ports in New Zealand and/or Tasmania or other ports en route and with the privilege of calling at North Atlantic Canadian ports.

EVERY 5 WEEKS TO BOSTON

Far East Service.-Nine sailings per year between United States Atlantic ports via Panama Canal and ports in Hawaii, Philippine Islands, China, Japan, and other Far East ports and with the privilege of calling at North Atlantic Canadian ports.

MONTHLY SERVICE TO BOSTON

The American Pioneer Line is now operated by the Roosevelt Steamship Co., Inc., of New York. Bidders on this line must be prepared to begin service on the three routes by March 10.

The financial results of operations of the Government-owned lines and the physical characteristics of the vessels, together with the copies of the formal charter party, may be obtained by prospective bidders upon application to the United States Maritime Commission in Washington, or to the district representatives of the Commission located at New York, Norfolk, New Orleans, and San Francisco.

CHARTER PARTY AGREEMENT

-

UNITED STATES MARITIME COMMISSION.

This charter party agreement made in duplicate on the day of 1937, between the United States of America, represented by the United States Maritime Commission, hereinafter designated as the owner, and a corporation organized and existing under and by virtue of the laws of the State of hereinafter designated as the charterer,

Witnesseth: The owner agrees to let and charterer agrees to hire the folJowing steam-cargo vessels to be operated by the charterer in the line known as the America Hampton Roads Yankee-France U. K. Line:

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Provided with proper certificates for hull and machinery and classed A-1 (E) with the American Bureau of Shipping, of the tons deadweight shown as above on summer freeboard, inclusive of bunkers and stores, on the following terms and conditions:

1. Trade routes.-The charterer shall maintain and operate the said vessels of the said America Hampton Roads Yankee-France U. K. Line, operating on the following berth services:

Between United States Atlantic ports, north of Cape Hatteras (with the privilege of calling at St. John, New Brunswick, and Halifax, Nova Scotia). and ports on the east coast of the United Kingdom, French Atlantic and Channel ports, and Hamburg/Bremen (except between New York and London; Baltimore, Hampton Roads, and New York and Hamburg/Bremen.)

And operate exclusively in such services the aforementioned vessels from the time of their respective deliveries until their respective redeliveries, as hereinafter provided.

2. Business of the line. The charterer shall operate the said vessels exclusively under the trade name America Hampton Roads Yankee-France U. K. Line during the term of this agreement for the carriage of lawful merchandise and passengers as permitted by law and upon the terms and conditions hereinafter set forth. Such trade name shall remain the property of the owner and the charterer shall have no further right to the use of said trade name upon termination of this agreement as herein provided for.

The owner agrees to assign and transfer to the charterer all commitments and contracts of the owner for the carriage of cargo on said line and to turn over to the charterer all advancements on such commitments and contracts as and when such commitments and/or contracts are carried out and performed and the charterer agrees to assume, carry out and perform all such commitments and contracts and to reimburse the owner for any and all sums paid by the owner for all commissions and/or fees and/or brokerages which the owner may be required to pay under any operating and/or managing agreements now existing on account of any commitments or contracts now existing pursuant to which cargo may be hereafter carried by the charterer. A schedule of all such commitments and contracts is hereto annexed, marked "schedule A." The charterer agrees to continue to book cargo for the vessels of the line for voyages beyond the termination of this agreement provided that all such commitments shall be subject to such instructions as may be issued by the owner and shall require approval by the owner.

3. Delivery of vessels.—All vessels shall be delivered by the owner to the charterer at a United States north Atlantic port to be fixed by the owner, the vessel or vessels to be delivered as each vessel completes its voyage in this line after April 15, 1937. All vessels upon delivery shall be tight, staunch, strong, and well and sufficiently tackled, appareled, furnished, and equipped, and shall be in every respect seaworthy and in good running order, condition, and repair so far as due diligence can make them so.

The delivery to the charterer of said vessels and the acceptance of said vessels by the charterer shall constitute a full performance by the owner of all of the owner's obligations under this article, and thereafter the charterer shall not be entitled to make or assert any claim against the owner on account of any representations or warranties, expressed or implied, with respect to said vessels, but the owner shall be responsible for repairs or renewals occasioned by latent defects in the vessels, their machinery or appurtenances, existing at the time of delivery under the charter, which defects are not discovered on the survey, provided for herein.

4. Redelivery of vessels.-All vessels shall be redelivered to the owner (unless lost) at the Port of New York or at such other port as may be agreed on, in the same or as good order and condition as that in which they were delivered, ordinary wear and tear excepted.

5. Surveys. Each vessel shall be surveyed before delivery and on redelivery to determine the condition of the vessel under the terms of this charter party agreement. The owner shall have the right at any time, without notice, to inspect or survey at its own expense, any of the vessels chartered to the char: terer to ascertain its condition and to satisfy itself that they are being properly maintained and the charterer shall make at its own expense all such repairs as such surveys may determine to be necessary for the proper maintenance of the vessels.

6. Charterer to man, operate, and supply.-The charterer shall, at its own expense, man, operate, victual, navigate, fuel, and supply the vessels, and shall pay all port charges, pilotage, taxes, and all other costs and expenses incident to the operation of the vessels and/or line. The masters and chief engineers, however, shall be subject to the approval of the owner, and the owner shall have the right to require the removal of the masters or chief engineers if it shall have reason to be dissatisfied.

Insofar as is practicable, officers' living quarters shall be kept separate and apart from those furnished for members of the crew.

Licensed officers and unlicensed members of the crew shall be entitled to make complaints or recommendations to the Commission, Coast Guard, or Department of Labor, providing they file such complaint or recommendation with their immediate superior, who shall be required to forward such complaint or recommenda tion with his remarks to the Commission, Coast Guard, or Department of Labor. Licensed officers who are members of the Naval Reserve Corps shall wear on their uniforms such special distinguishing insignia as may be approved by the Secretary of the Navy; officers being those men serving under licenses issued by the Bureau of Marine Inspection and Navigation of the Department of Commerce. The uniform stripes, decoration, or other insignia shall be of gold braid or woven gold or silver material, to be worn by officers, and no member of the ship's crew other than licensed cfficers shall be allowed to wear any uniform with such officer's identifying insignia.

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No discrimination shall be practiced against licensed officers, who are otherwise qualified, because of their failure to qualify as members of the Naval Reserve Corps.

Licensed officers shall take their meals in the main dining saloon of the vessel and no other place during regular meal hours, except in cases of emergency.

The charterer shall comply with the laws with reference to citizenship of licensed officers and crews and the rules and regulations of the Bureau of Marine Inspection and Navigation with reference to crews' quarters.

The charterer shall comply with the minimum-manning scale and minimumwage scale and working conditions as adopted and amended by the United States Maritime Commission (Note: The provisions covering this requirement will be included in the final agreement) and shall keep posted in a conspicuous place on each vessel, a printed copy of the minimum manning and wage scales and working conditions.

7. Number of sailings.-The charterer agrees during the term of this agreement to maintain a minimum number of 36 outward sailings per year on the berth services as follows: Three outward sailings per month of approximately 10-day intervals in the service described in article 1 hereinabove, upon such sailing schedules as may be agreed upon with the owner, unless the charterer shall be prevented from. making any of such voyages as hereinabove provided, by acts of God, force majeure, accident, strikes, or other labor disturbances, war, insurrections, weather conditions, loss of or damage to vessels, or without limiting the foregoing, any other cause not within the control of the charterer, whether of the class of causes hereinabove enumerated or not, it being understood that the cause of any interruption insofar as it may be under the charterer's control shall be remedied by the charterer with all reasonable dispatch and performance resumed at the earliest practicable time after cessation of the cause of such interruption. In the event of the loss of any vessel or its damage to such an extent as to prevent the charterer from performing its obligations under this agreement the owner may substitute a vessel or vessels of approximately the same deadweight tonnage, type, size, and speed for 126584-37-12

the vessel or vessels so lost or damaged and such substituted vessel shall be operated by the charterer under all of the terms and conditions of this agreement. 8. Maintenance.-The charterer shall, at its own expense, maintain and keep each vessel and its machinery, boilers, appurtenances, and spare parts in good order and condition, and shall have the vessels regularly overhauled and shall drydock, clean, and paint them as may be necessary but at least once in every 8 months from the date of delivery or upon completion of the first voyage after the expiration of the 8-month period, and shall keep the vessels with full unexpired classification certificates at all times.

The charterer shall make no structural changes in any of the vessels and shall make no changes in the machinery, boilers, appurtenances, or spare parts of any of the vessels without, in each instance, first securing the approval of the owner. In making repairs the charterer shall use only first-class materials or equipment of the type and kind of that repaired or materials or equipment obtained from the owner's stocks.

9. Must use care. The charterer shall conduct its operations with respect to the vessels' services, routes, and line covered by this agreement in the most economical and efficient manner.

10. Use of equipment.-The charterer shall have the use of all outfit, equipment, and appliances now on board the vessels without extra cost (with the exception of the submarine signal apparatus and radio equipment), provided the same or their substantial equivalent shall be returned to the owner on redelivery in the same good order and condition as when received, ordinary wear and tear excepted. The charterer shall assume the obligations of the owner under any contracts in connection with the submarine signal apparatus and radio equipment, if any, and shall reimburse the owner for all expenses connected therewith after delivery.

11. Fuel and stores on board vessels at delivery and redelivery. The charterer shall accept and pay for all fuel and consumable stores on board at time of vessels' delivery, and the owner shall accept and pay for all such fuel and stores left on board on redelivery (with the exception of perishable stores) at the current market prices at the respective ports of delivery and redelivery; but if redelivery be taken at a port other than the port of redelivery named in the agreement, the owner shall pay for the fuel and stores left on board on redelivery at the current market prices at the port of delivery named in the charter party agreement.

12. Inventories.-A complete inventory of the vessel's entire equipment, outfit, appliances, and of all consumable stores shall be taken and mutually agreed upon at the time of delivery, and a similar inventory shall be taken and mutually agreed upon at the time of redelivery.

13. Insurance.-The charterer at all times during the continuance of this charter shall carry and maintain insurance for the owner's account, at charterer's own expense, premiums prepaid, on all of the vessels covered by this charter covering marine, protection, and indemnity and port risks, and such other forms as the owner may require on such forms of policy and in such amounts and at such rates and with such insurance companies as the owner may from time to time require and approve, and the charterer shall file such policies with the owner. At least 55 percent of the hull insurance shall be placed with the United States Maritime Commission, and the balance of the insurance shall be placed at the option of the owner either with the United States Maritime Commission or with companies authorized to do business in the United States.

In respect to any insurance placed with the United States Maritime Commission, the owner and/or insurer shall not have any right of recovery or subrogation against the charterer on account of loss of or any damage to the vessel or her machinery or appurtenances covered by such insurance, or on account of payments made to discharge claims against or liabilities of the vessel or vessels or owner covered by such insurance.

In the event that any act or negligence of the charterer shall vitiate any of the insurance hereinbefore provided for, the charterer shall pay to the owner all losses and indemnify the owner against all claims and demands which would otherwise have been covered by such insurance.

14. Bills of lading.-The charterer shall cause all bills of lading issued for cargo carried on the steamers to contain all the exemptions and stipulations usual in the particular trade or service in which the vessel may be engaged, and shall conform to the provisions of and conditions in the Carriage of Goods by Sea Act (Public, No. 521, approved Apr. 16, 1936), including the "Jason"

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