Ogden Standard-Examiner | 1920-08-16 | Page 1 | Terms for Sale of Huge Fleet Made Known

Terms fod sale bp he fleet ide known Shipping Board to Dispose of 1200 Steel Vessels Under New Act WASHIXGTi IN, Aug. 1C. Terms on which the shipping board fleet of more than l.L'OO steel vessels approximating approxi-mating 6,500,000 deadweight tons will be sold to private Interests under the new merchant marine act, were announced an-nounced today by Chairman Penson. Bids for the vessels will be entertained, enter-tained, as they stand, the chairman said, at minimum prices of $160 a deadweight ton for eoal burners ar.d $17a n deadweight ton for oil burners bnilt on the Great Iakes to $175 for eoal liurn. rs :ind $185 for oil burning vessels of over m. 000 deadweight ton! Terms of the sale all for ten per cent of the purchase price In cash on delivery, installments of five per cent In jLx, twelvo. eighteen and twenty? four months thereafter and the remaining re-maining 70 per cent In equal semiannual semi-annual Installments over a period of ten yea re ll l ERRED PAYMI N l S Pcfcrrcl payments are to cany five per cent Interest .Deduction for de-i preciation 13 allowed at the rate of Six per cent for the second year of the vessel's age and flvo per cent fori each succeeding year up to the date of purchase. purchasers will be required to de-' posit all revenues derived from their operation in Hiiier iseii accounts from which the deferred Initial payment to be paid. After paying concurring installments in-stallments purchasers ai' permitted to take from the proceeds of operation; an amount not exceeding 15 per cent Of paid-up installments as a dividend on the investment Payment of half of the purchase price of a vessel, the buyer wlil be required to execute a! preferred mortgage to Che shipping hourd after which the vessel will be released from the supervision and' control of the board, except as to! maintaining Its berth and route. I IN I IL Mil MTV Satisfactory evldeiu,- of the flnan-: clal ability of the buyer to carry outi his contract and proof of his nationality nation-ality will be Insisted. upon, the chair-1 man slated. Sale to foreigners Is per-! mUied under the Jones' act only when1 the board after diligent effort" has been unable to sell to citizens of the I I'nlted States vessels not deemed necessary of promotion of ,m efficient American merchant marine. Purchasers must agree. Chairman Benson, .said to maintain such routes and services as I ho board considers desirable-