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paragraph c!, and an agreement by the Contractors to furnish _ .
on July 31, 1957, satisfactory security tor the remining balance 0
av ' _ -.
' ~__ __ .....::.__.-.-.-_ -pd--ll-Ldue subsequent to said date. Said additional we HLl.1.i.on Dollars
$1,000,000! shall 0000010400 0 further payinnt on account of
said Seven Billion Dollars $7,000,000!, and ehall be appme
in reduction thereof, Icllovdrg any such payment of an addi-
tional One Million mm:-0 ,000,000! 00 July 31, 1956, the
1-ema.1n.1.ng unpaid balance of said Seven I-llicn Dollars $7,000,000!
shall then be payable in three equal annual installnaats an
3|-I13 31, 1957, July 31, 1958, and July 31, 1959, respectively,
aforesaid,
511? 3'3-0
shall eecure the 1956 and ttn 1959 annual installments,-_~_.
! &:payn:antotthebalanceo£saJ.dSevenHI.lJ.icn __...a .a.92.- _-........|a.... A-III]. D15 IUU92B1'lr}' FD
Dollars $7,000,000! all security given in respect of laid,
Ilnplid balance and_not applied remction of said eun_ahalJ. in -.;_;_.___; ;.j_';__'f W__1_,e_-_.,.._i._. ._'j. _ _ _ _
!orth1d.th be returned by the Govemnent. ' '
A * m
The Oontractore u-ther agree:
a! It security satisfactory to the Government is
not furnished by July 31, 1956, ae provided in Article II, para-
graph o!,»tit-la to the Ships shall be transferred to the Gorera- _
B115 ll Qt Jl-I11 31, 1956- I1 the locurity described in 1-II 0' '0
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eecond eentsnce or Article II, paragraph Q5!, is furnished on
July 31, 1956, and satisfactory security is _n0t mrnished lg
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- July 31;" 1951, use title to the 3h1pl emu be transferred to
u'iQGOYB'1'lI-lI8tl80fI8.1'dlti¬e , -1-.:. .'
Q ~ A _. ;
5- B! Bhips to the Government as .0! ._ L
en; 31,-"1956, or'-Iuly 31; 1957, is -aforesaid, or under Article
1v em! see 1! =...-.-gr, shell, :3 operating et the em erI Y
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'- transfer, be transferred in good operating condition, ordinary '
user and tesr expepted. ' lw Ship not operating at the date O!
' 'trensfer_she11 be returned in a condition conperabie to its
present condition, ordinary wear and tear excepted, The Snipe
shall teetransterred tree and char or all liens, emept <
e presently existing mortgage liens as reduced by current paymnte,
. whether held by the lhritim Administration or by any of the j
private eortgagees named in Appendix E, the Ships shall include
" the 1"urniture, furnishings, tackle, apparel, equipmnt, -
_oth'er appurtenances, including, but not limited _
- -'15:; :;;:; :;i.
stores," and spare parts, aboard atsthe time ct strseerer, and" ' " " " * -.2-_".'": .' ::.'~.;.;1i:";;:;.--:.____-=-'"»:_.= '_"_._,_" -" ~¢__:..____,- r _-_'_- ;__' ' ..1=-1..-. 3.-A. -.:=+'-u _: "2-.=-7, ,1;-.2-..-._1;=r-.e_';1;;__"-*:.;._'=a;=-;_: _-4. _ + -+"i
» the Shipomer egress not to remove aw of the foregoing item W
in anticipation or the transfer, Effective on the transfer
ct title to the Ships to the Oorerment, exocpt with respect
to pest I'll and unpaid installments of principal and interest,
the ovemmnt 11111 release and cancel all indebtedness which '
neythenbeduetotbeovcrrmentsdziehisseounedbythe, ; --.--Q.---+-g» -- _ _ .., ~. . . e .
lbritin no:-tgeges on any of the Ships so transferred, and e--~----~-.-_--~
the Government will thereupon release and cancel all 0ovem- _ ,1
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mnt mortgages upon tin Ships, together with all notes and _ _
any other indebtedness for which such mortgages sq constitute
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security, ma shall also deliver 1» the appumu Contractors
such inst-resents as neg be necessary or desirable to evidence
such release arr! cancellation, it being agreed that subsequent
to such transfer oi title the applicable Contractors shall not
be required to nke any payments, other than past due instaJ.].-
nents of principal and interest, on account of said mortgage
indebtedness or mortgages,
! If title to the Ships shall be. transferred to
the Governmnt, as provided in paragraph a! of this Article,
thenallpaynentsmdepriortothe datecttransferahanhe
retained by tbs Oovernmnt, It, at the time oi tie transfer
of the Ships, as provided in paragraph a! of this Article,
or within threenonthe alter said time or transfer, the unpaid
balance of said Seven lllion Dollars $7,000,CI.O!, has hem
reduced to Three mum Dollars $3,000,000! or lees, Inch
-;-.aywn--ts, together ,=-with said transfer of 3'i|_;|.'pi, shall be
received and accepted by the Government as an alternative basis
for the settlement and conprosdee of all litigation and all
c1si.mbytheOovermentageinstthe0ontractorsi:ichars-
the subject of this agreement, - In such event, the Government
sdll I-vlease and discharge the Contractors of and from any and -------
all liability with respect to said litigation and claims sui - ~
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- with respect to the Contractors obligations under this a5ree- .
_mnt, as MJJJ and completely, and with the same force and effect, A
as though said Seven Million Dollars $7,000,050! had been paid '
in cash,
I1 said unpaid balance not been reduced to Three
Million Dollars $3,000,000! or less, as aforesaid, said trans-
fer of Ships ahallnot affect the obligation to pay said unpaid
balance, ltcept 1.1»: the liability for the nnpaid balance of
said obligation shall be reduced by Three Hillion Dollars
$3,000,000! and the 80!I.1n.I.ng balance shall beoons immediately -
- due and payable.
<1! EachShipl.istedi.nlppendi.xBshs.l1bs:h:lly
coveredbyallenstomarytormsotinsurancs. Ifanyshipis
lost, tin interest of the Shipouner in the insurance proceeds
will be substituted for the Ship for the purposes of paragraph
! of um Article, A '
! Bimltansously with the execution of this agree-
ment, bills oi sale, conveyances and instrusnnts or transfer
for each Ship listed in Appendix 8 shall be placed in escrow
I
with an escrow agent acceptable to the parties hereto to .
secure to the Government the possible surrender oi the Ships
under paragraph a! oi this Article, and under Article IV b! ii!.
In addition, the registered owner of each Ship hereby irrevocably --W
appoints the attorney General, or his desiznee, as its true and <
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lawful attorney to execute any further instruments of assipuunt
said paragraph auettectire, regietered mngr shell
on request or the Government execute and deliver to it such
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a! The Contractors agree to cause to made _.,'~,
Hay 1, 1956, unless the'Government agrees to an extension 01'_. ¢.- 92 Q...__~. I
In I-e LA an-n92w92sur.Qu|_n492en|¢l 4-nu-I-any->1 an--nl _$-- Q lb¢§ I IQ I|§n|%5GlI£Il|I I-illlv-I-UJ. Au Ill-FU
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1! The Government shall trangfer or £1ue_ ".'..','- _
_ to all unseized Snips, subject_to-time private mortgages, 13:: :5 ' _ . - , _ --,,.1:'._
which 511111 be no.1; recognized; provided, 1% ' er, "
. ~-~ §'that the Department of Juétice wiil permit continued
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operation of the Ships under the applicable operating _'
- agreements, to enable fuli discharge _' '. l 7
obligations then in errééz. " " 1 ' * t
" 11! 111 sums ml deposit with 15¢ Sl1ereaida_ ' fi _
Custodians 101- seized Ship! and the r1==a'1 Agent! _
r"»_ _ .,-. ..._ .,_for unseized Ships, and all funds thereatter received 5'
by then from continued operation of the incindiig ..~_ i
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111 accrued but Unpaid charter hire, me mm-g .11
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payments required by the operating stipulations and
operating agreements, and after paying all in
perk r§§111'nJ.ng_thet1re.sse1a.to Dnitod~Sta-tel 5' l_ . 04'
oha.LI. be pun 1° the Governnant and lppliod 111" 1
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rerh1otiono£t!mnpaidbaJ.anooo£laid$even}l1iu1 ~ »
- - 7 __ I v _ . .311-,--.-Dollars Q-7,¬IIJ,lXJO!, -which lhall booolm immediately _'
duaandpayahlo,--p'~' -
'" v! he forfeitmi of imea smpi am: __ f ' fff_
_ .»_. . .-. 1transfer of title to the Government of _ ;
_ _ __ , ' 1 . '..._._. -_{_ _ :,.,,;..--5.'.:'¥ -_-after 111,1: return to mm sum pom, shall be ~__~_ 1;. 1
_ '___ .- 3. .,;,-»-¢.-..- __the Oquivalent of a payment of Three !"fL].1ion Do11arl'_
, . _ _ _ , . - -~¢ A _-'_ T-3,000,000! against the unpaid balance of said Seven * mm mm» t1=1.w0,vw>-i "' 1 - L:atv; _ .- V
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. _ -_ I I I t _ = ',_ J¢_ ,._--.'92.V ...-I . "~]A_.-§..,':=_.'-A-- v! The Contractors 'eha11 remain liable
unpaid bal_anca:_o£_eaid Seven Billion Pollare -1,0oo,ooo!';;;;i;%--;?
' . .. - -4 1, . _ I, -I.-1-.,7 U-_ -- _ . .. . .. ._ after applying. all amounts paid under this 3". - _ _._ _ - _. _ 1 A; = -'_"._-."r;_"
anci the emmte receiveri undo; aubparagraphs iii! 'and'.§='T-:7-
iv! herfeofa Payment of -said unpaid balance, together i "
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. with the forfeiture er =11 seized Ships and the » _
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fer ct um to all unseized H1195, _eh.al1_be :'eceive'q_l I
- ahd accepted W the Government as an alternative "l T? "V
._ .- -. . ;'-.,_~=..- _- _
baeie tor the settlement and compromise of all h x
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litigation and all claims by the Government against -Q
'_ .the Contractors which ere the subject of this agree-_ _ - =
be _ _ Lu _- I
.-...~-|',imeat. Upon such payment, forfeiture and tranatelz-_, t*{§%'{." p p L
r V . .»= AN 5- '-.~- .- ---
the uov ernnent u:u..1."' release anti discharge ihe Gen-_.. .|
- - tractors of and tram my end all lialzility with *'i:";f.-".- -
nepect to said litigation and claims and with zneepect to t
tin Contractors V obligations undo; tbie agreement", all '.' 7~-.*.'* ~-
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ea folly and completely, an! withptbe lame
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$7,000,000! ma been plid in ceeh,_ and 1.-111 elec - -..-.._ .., ._ ._,_ I ,_diechufge ma 1-mm all mortgaged indebtedneei .;.'_'_;_*_
- on Ships covered by the Haritifee ma-tgegee,'en>ept_ 31.1
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. riiith res;-set to
_ principal mid interact, end the provisions ct Article I, '_ .. _ _., . - _ _
_t paragraph f!, erith respect tbe recognition of til ~l:;;1;"?~
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provisions er true agreement, for the teeer1tet_;- ,
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limiting the generality of foregoing, the
"1"" °* *"1=1° II» which apply on payment 01 em L
M" equal 3PP11¢at1on te the alternative er?-__;_
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0ett1t.emez1t and ¢O!npI1JL1180 herein p!U71d,gd ta, ._»__-1...: .
K I vi! A11 suns r0ma.i.n:Lng 92a1t.naa.1:1 SQ 51,1.privatle m0r_t.gageea, shall than ipply,
the Deparbraent 01 Justice may not be satised e1+,i,; 0r
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and for the private mortgagees, including. 1
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"id 5" '5-1-11°11 11°11-Irfl $7,000,000! ne1ua1n;' _ _
said three }J.110n Dollar: $3,000,099!. -M.-1,.
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°1 ~" h-~P °* *1" 1°°===*1<= corporations, as pmvided in '.f;l-':!..f_ --.924- r
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e! The Goverrm-ant stipulates and consents that the pr
eases now pending between the Government and the Contractors or
any of them, set forth ih Appendix O, paragraphs 1 and 2, will
forthwith be terminated and dismissed, without coste to either Y ,
party, and that appropriate orders my forthwith be entered
- in the various courts in which such cases ere pending to ecoom- '
plioh the foregoing. ' Such dismissal emu be deemed to be 1
with prejudice upon the occurrence of any one of the following
events: '
the of iaid Seven I-'n..u.1' 'on Tnoiisre -
$1,000,000!; ' '
.1! me furnishing of additional security dum-
factory to the Government in its sole and final Judg-
went on either July 31, 1956 other than said security
involving the payment of an additional Ono Billion
Dollars $1,ooo,ooo!!, or on July 31, 1957, in '
accordance with Article II, paragraph e!; or
iii! The transfer of the Ships to the Government,
Ina I -._.-I-I_- -.-.-. _-_ _ ._- __ _.. .g_ .e.92__ ___1|.l VH-I-us nu: pun on we nunms '
-¢._.-_- .- tion of the Ships or their equipment, end the reduc-
tionoftheunpaidhelancecfeaidsevenllliai
Dollars $1,000,000! to Three Illion Dollars ""
$3,000,000!, in accordance with Article III, parl-
mrh !. ' o ~ y
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The counterclaim asserted by the Government based
on alleged defaults under Maritime mortgages, set forth in 4
Appendix O, paragraph 3,. shall be dismissed, with prejudice,
when the past unpaid installments of principal and interest _
on the Paritime mortgages have been actually received by the l
Government, and a separate stipulation shall be entered into '
to effect such dismissal.
b! The Government agrees not to commence forfeiture
proceedings against em vessel now owned or formerly owned by
any of the Domestic Corporations, based on em contention that
the Domestic Corporations, or any or them, do not now, or
did not at any time prior hereto, qualify as citizens under the
shipping laws or registry statutes, or based on any claimed -
misrepresentations in applications to purchase such vessel. '
c! The Governsneant agrees to take all appropriate
steps to have all seized Ships of the Domestic Corporations
released from court custody and to have possession of such .
Ships returned to the respective registered owners thereof,
The registered omers of said Ships shall then be deemed am!
reoognised by the Government to be the true and lawful or-mere
thereof tor all purposes whatsoever. ' - - l
d! Attachments obtained by the Government in conneo-
ticm with pending litigation shall tornrith be released,
"_ e! The Government consents to the termination of ~-
ta-'opera ing s ipuJations and operating agreements covering the Ships
_ mus in lppendix B. '
1 .
0
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92_ _ ._ 92_.
9; a
0.'! The Government agrees that it will not contest, _
:51-:1 11-. hereby 1-waives all right to contest, preferred sums -s '
oi any existing mortgsgmheld by private parties sffectzlng any, 92.__n-
' of the Ships set forth in ippendix s, including, wimout Tlimiting
the generality of the foregoing, the private mortgages covering
;, the ARICKAREE, BATTLE ROCK, GM-IP RAMA!-ID, .10R£'_L?-.R.;1JE_ilii1i, L!-Ll; '
GEORGE, STORY POINT, OLDEPIC GM-E5, WILLIAH 1. H. BURDEN, I-II
FEDERAL and the R'cIPUBLIG, which private mortgages are more
hilly described in Appendix E. Eben the prwisions of this d
paragraph have become effective, such provisions shall rennin
effective, notwithstanding any present or future breach or
default in this ag-cement, and such provisions are expressly
for iine benefit of said mortgagess, I s _
! The Government waives and releases all chin '
to Lie net proceeds of the sale 01' the 1-IE.-&_I1Cl.-IS deposited
in escrow pursuant to the agreement of Phy 6, 195$. shove referred
to, and shall issue such instruct-1.0ns to the escmw agent as
my be necessary or desirable to accomplish ths foregoing. "
1711 .__ .1
_ United sums Petroleum Carriers, Inc Victory cm-ism,
Inc., and Western Tankers, Inc" each stipulates and consents that
a _, _ ._ .
the actions brought by each of them against the Govermnnt in til _
Oourt of cum, as set forth in Appendix c hereto, will m-wuss
be -terminated and dismissed, with pnsJud:l.ce, and without costs to -, _ _._-__l.ck _-,._ _ m__. .:____a_,_;_ __.,.;--__, _ 1, .. ..
_ _ ---
.-_.__.__- __ , . _. __ _ I - _ _, . _ . _ "* .1 _ 1" __, *3-_. _- --.=-_ - _ _. I{'.n '_.,;p_e.' * ;_.*-:;.- _ I -, _ -1 _ ' , ~ -_ '1 .,_-1 _ -'-.' V. - ',,-_. » - - .'¥l .__ -'. 7.;-' ..4'- - n-I - "~13." f** "~ 5!; . k-J: :~- -7 . . .. -0 ____.,__ .. _,.|. . _ _ ___, 9- _ ,, . t q,y92__-,,_ _ ,_= .'__, _'.' vs- _';j .. ,._ .15 -Q-¢.'92;_' 1| "' f 4 V r_92'f'-:.'_____' ' --f ;' -_ =3 _ ,7 __ _.. ',:",__.__' ._ go J 2'.-1.1 ,-- _".. -
;_',92.'.;. _*- ... - _- I..- '_ __" _, _'l___-L -. O_. ¢ 1,,_""_,,_,¢-._ _a.'-I, ., _ .92 .-- -_. :_- U-'_._'-Z92;_,92._-Q __,,1. -_-. <- - s___- _-,.- ; ._, -,. ,_ _- 92 __"... ._.--. ;*"._.;-q-- |- - a-_ 92_- " ~'_ _,-¢<__-_ *.f-.I'_,:"I___.f_'--'q_-_,.¢.w-,5-u---_-;___.' _- »__ -'. ,;.-h. _ t. ---; ;_ _, ;,._.41_._ ,_.:,._' :-- -» '-- _,__ _5 . --J .1-,~ V - e ." -1_,_-, ;__-f- ___ __.___:- - _ _V '-_ . 92__ _~ ., _ Q ._ - -__ -__' ;- __927__-_'~_ ,__..___92 _ _ - - ~- _92 ~_,n'~ _:1 ,- _ ..;.n_ 4,-_ J . ,;_ -,4 ..,.-.s 1-. . -» 1 __ - _.. .s"--r" - a v -- - -$
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either party, and that appropriate orders may forthwith be
entered in the Court of Claims to eccozggliiah the
parties hereto agree to enter into such separate stipulations 11;._.,,H _- - '- '. ; V. #7-.-.:»--1:-.~ .,. ~_,_-1-_r,,.,_,;.,__;1each of said eases as may be meessezjr or desirable to effect "j.- . ' . ,- . - E..'1._'.-92'-;,*_'______"4'.,_
T ' -r - " '1 *1-i. "'"_'¥? .% - -""1sud! smissal. V .. . . _ , _ ' H T ,. _. . 1.». .1 . '. . ..:.I 7. __.'i_;-_:_'_}.;._:_::.-;";£_< -' .
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I-Io payment by the Domestic Corporations herexmder ""._."J"" _' " "" vi»_ l. _ > ~___--...-._--1 . 4- ' ,;_'° - - 5 __ . . . _,_' J . -I
shall be deemed to constitute ajrioletion of arwef
tione of the Ihritime Administration, or e breach of any ofthe "A; S ; _;'§;];L_ ;t.
provisions of any Hariti.-re mortgage, or en act of default there:-If
. _ . _ _ , -.-=:¢'_. .:--. ._.. , . . . '- A 92 -e - 2» - -_ Y_ _. ._ .- ..- _ - _ _, e. . -. .__ 17
undgr e . _ - . ._ . -. -. .. .. - . = ._ .- ..-- -.=_._._'...¢...0 . . ....__ Ar. ,.A._V._,,:__ _. I . ~_,.. .. _, _.. » - - I I -».":_ _.-_--.,.--;.,"f:.'..' ' -. .' ._ . ,2. .-"-4..-.-5:-'1-?_.,...*1 -1- - ~ ' . 5 . ,., '"""- .. .. .~ '_~.. -1 -1.--<, -. - . - .- . .- 1.» ---V.-=-..;' -1_=»=;e -....92.'---.-.n - -. -92 -4 -i 4.! ' PI-' I--I-- . ~- ' ----1 -..-_¢<_.~-,._=-
w..a-'-"':._~.'Subject to eppmval by the Department of Justice under ;.~¢j_,e;;_.»,.f:-.
mum IV of the citizenship of the Domstic Corporetiooe
subject to the provisions of applicable mortgagee and this_ ._.£ _,_A_! _,181' -r -to e_ - ., __.q__.. -_---_.r.- ~_.,~-..
ment, all proceeds of any insurance policies of any nature. .- _ _~._m .- '- ._-U -_ .7~ .: 1 _ _
. . . _.,. .--__
eoever effecting ow of the Shipe, whether based on claim' . ". -5.3, -- -'_ 7: 92.-4 ;F~.' ~_92._ V-_._ -- V-,__
. . - _ . . -'..
of4 1* *_ B. . _>_¢..¢_-_- ...-....,.....--gt -iI accruing prior to eeizure of the by
subsequent t; seizure, shall belong 1» and be paid tolthei
registered emer of the Ship, and the Special Eiaitedl.-fa:
11-aw »-we tee M». em» ere
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Effective upon approval by the Department oi Juetios
- under Article 1v of en; citizenship 0: the Domestic Corporations _1
and the occurrence of any one oi the following events; namely, '
o
i! The payment of said Seven Billion Dollars
$7,000,000!: -
ii! lhe furnishing of satisfactory security
_on Jul; 31, l956 other than said security involving '
the payment of an additional the l.ll.ion Dollars
$1,000,000!!, or on July 31, 1957, in accordance
t."lt=h !- $1819
iii! The transfer of the Ships to the Government,
notwithstamling any possible disputes as to the condi-
tion of the Ships or their equipment, and the reduction
ofthetnzpaidhalanosofsaidsevsralllionolla
It-1,000,000! to Three Million mum $3,000,000!
in accordance with Article III, paragraph o!, J
.
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92 92.
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92, K,
92ff1J.1l't|QB and subsidiaries, officers, directors and stockholders,
representatives, employees, servants, agents, and attorneys of
the Contractors, or any of them, Jointly and severally, and '
any and all individuals, corporations or other persons at any
time directly or indirectly related '1», connected with, associated
uith, or controlled by, any of the Contractors uhether or not
the Government has heretofore asserted any claims against any
of them!,v__1ointl,v and severally, and the Ships, of and 1'10! the
following claim, and no others: All civil claims of the
Oovernncnt, including forfeiture claims against the Ships, in
connection with or arising out of the acquisition, ownership,
sale, mortgage, charter, delivery, transfer, documentation,
registry, or any claimed unlawful operation of the Ships,
and the Oovemnnns claim with respect to the earnings am;
»=~=w== e¥~e=1==¢tee~¢ o - it
, .; -,'.;:;;.--" .___ V-H of »--
and the tracing of any such profit to any person, firm or
corporation whatsoever, or to recover any prOpe1't;,' omed by
any person, firm or corporation as to which the Government any
claim or assert that such profits, or any part thereof, may he
directly or indirectly traced, to the extent that such civil
claim are or my he based wholly or in part on any alleged
lisrepresentatione node by anurone as to the citizenship of ' ""' ' "'
the Domestic Goxporations, or any of then, or the alleged
failure of said corporations, or any of them, at any tin to
, -_ . - ,.._ _. . .- ,.-."'-9'] . . """ '{R-1_, 92-_. 4 92_ ' -l_ _"--'- g_:92__'; _- _ _ . -; _- " _.--{I . ,_,_-,'P-1'-.92 _'- _- 5 _-92 _- 3. - I ., 5 . - _- _ _- -_§- '_ 1I_- _;_.w»__-,--,._r'.92'_ ,_-e_.e:_._',¢;.-1,,'. .J-1_--. -_ .' .',.* Q ,92_ .V » -_. . .. '92 _,___ .-*_' ___;¢ _'"--_-- _' ,_-J, _;- 1, -_92.-_ ' _,1-_;-I-_$. _<,..--Y ~,.___--v92-,_92 _ _ . ., ..r_ _ -_'., ta ,- s - o... »-_ . _,a92--,->e*_-_. _.,- ,,-».'_.v- c ;-_;921t92 '_.-,.r-_-_---.5-,_ §---.-i- --- _-» _ __:#°'_- q; _v . _ '- R g-_ _'f' __ . .,, . ,3 __-: _ _ 1--'_ -- ._ "_ J - ~,-a.-K _,_;.¢.b.-_- L;-; q.-',_-:-- j. -_l-;.,~ e _ _-__ _ _ _- ._'- 2 pf __ _.__-' _ ., 1 -, '_ - I :~ _. f-f;,__{;.T":5-'_.-;_.-_',:__a*'1.1;_§'-a'j!';'3f92',lr!_,§__, ._-T;.1-1. #1 ' __~ ' -92 - '_ , - ' -"- '.-' ' --_1=_.'-» .#- '.! - I27:
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92, - 28- - M»
Inset the citizenship requirements of the Shipping Act, or oi .
the registry Statutes, or on the eileged exist-e% oi Q Qeil.-.,-
interest inorwithrespecttoanyortheshipsorinorwithA _ _
respect to any of said oozporations or on any alleged misrepre-
sentetions of any nature whatsoever contained in any applications
tor the purdnse of aw of tin Ships, it being the intszztion
of the parties to this agreement that this compromise and settle-
lent nun, among other things, put at rest finally and tor all
»
_.-_...__- ...L-¢L.___.___- __.92 __-____l92___ _p a _ _ 0 n -puxpwsuo inaoaouvur, Incl l'Bgll"..LB85 OI Om! IIICJJ 1889.6 my 111.80;
all claims uhich the Government may have or at any time desire
to assert, against azgr person, firm or corporation 'L§92_Q1}§9!V!!;
whether or not dovsred by the above provisions oi this Article,
based on a contention that United States Petroleum Carriers,
Inc Victory Carriers, Inc" Heston Tankers, Iee.,
he-ins Corporation or Trafalgar Steanhftp. Corporation do not
now, or did not at any time prior to the date hereot, hilly
quality, tor the purpose oi engaging in the oosstuiss trade,
or for era e-tar is-es~'-pose, as citizen Clfiiii the
meaning of the Shipping Act or on any alleged Violations of the
registry statutes, Customs laws, or Cnstoms :e_151mt-ions, Qled.
on any contention that any oi the Domestic Corporations did not
qualify as citizens oi the United States under the Shipping laws
or registry statutes. - ~ -~ - - ".~"*'_-
has word "Snips", as used in this Article, shall -
1_q.c1'ude I11 the Ships listed in Appendix B, the OLYMPIC G-Ill-I-ERIE,
-. .. It. . __ I... ._;_. I_ W _" _' V. _ .- ., ,. 1 _. .__ . _ _: a_:_._ ~r92 --F _r: T_'__!_92. -L V I. ." 7 _. V~.;__ ._-3.1;-._..:.:_-_:.. V1 <.:_;.._ I-_',i_92 _' _- 3". ,. __-_:,-»92-r-,_-'~ @~ _-:3,-,-; ;__ . ,-7 , .-" j_ e-'- . . _ " -__' '_92~,__ _"' _' ' -_- . It '}l}_'_- -I,92"., "_.'- --A ' ..,- _ 92 _- P - I ~ -1.. ' -_ .. - ~ I <-- 1 -P .. ,_ -_, --'_'__ ,_'--5.. ;. ---.-,~ ..,._._*~=- Fla" :,*1-..>' -'- . - , = . *92 > = - 1 ,- -' =.- .,. -_ _',.-.. '!- :"-92'~.'_n'.- -,_1-*1, .,;r.'=~:__',. .9; - "" #1 ' .1 I * ' ' 0-, - :_-. -. -' ...'__ 4 ..1;_;_A' _',.;"§-,_=;={; ,_.92_?5':?k: =_=_ .92__,_ .':L'-;- * " *- . L.""'r P .~-_;I,.<_~_ _ " "~ - - ~_;-, _'.""-' " at e _.__, ._.__,_ . ._ Q __ ~ 92 jet -Ir -1 Li-I 2-?-_.-- - ' . _I ___ . .,-92 "
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. andanwother vessels uhichnsyeteqytimehcvebssn omedom-'-. 2 I
operated by the Domestic Corporations, hr any oi thsg ' -.
Anything hszeinahove contained to the contra;-,7 notuith-'» ll 4,
standing, the provisions of this Article shall apply to the
holders of the mortgages described in Appendix I, es soon as
the provisions of Article Y, paragraph '!, -shall have heoom
effective, and such provisions of this Article, in so hr ll
they lpplg to the holders or said aortgsges, shall remain
__..IJ_... _.__- ___A_,._t n can or
default in this agreement and such provisions are expressly tor '
the benefit of said nortgsgeee, -
I _ 7 .
a! The parties hereto agree to pox-tom and to permit
and tscilitate the performance or all acts necessary to the
ertectuztion of this agreensnt, including the execution an!
'i delivery of such further instruments as my be necessary or
.' P3'°P"'s -
b!Thiss£:reennx:tsha11hebindinguponandinm-he
_ .___.__I .1- 11.- a__..._0:1. -3IO EBB X1311 OJ- parr-i.ei nefito, the suc" censors
Ind assigns or each or the contractors, and all agencies and
inst:-unentelities of the Government.
' .,-.-_._. .
II
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C303
hereby expressly and irrevocably consent to the ,1'uriediction ----
and venue of the lhited States District ~Oourt for the Bouthern
District or New Iork,'and tor such purpose only, each ct said r ._
alien Contractors expressly and irrevocably appoints each officer
of the Domestic Corporations as attorney-in-tact to accept
service of process in cry suit or proceeding against any of
the Contractors arising out or or based upon this ag:-eemnt.
In addition, if none of the event described in lrticle V,
paragraph a!, shall occur, A, 8. Onassis hereby expressly
and irrevocably consents to the Jurisdiction and Venue of the
nited States ietrict ourt for the cuthern ilistrict of liar
York for the purpose of the reinstituticn of any civil action
by the United States now pending against him in laid 11810610-
tion and hereby expressly and irrevocably appoints each officer '
of the Domestic Corporations as attorney-in-tact to accept service
or process in such action. It such civil _action is rainstituted,
then all amounts paid to Government under this agreenmt
shell he credited against any Judgment which my he obtained
in said action, Any pleas by any of the Contractors ado
_ _..'I as. IALLII duhJ-IIU-III-L Ill!; JȤI|lIQ: '
Q Q Q3 n-- Q -92
...__.....i_;».
in the United States District Oourt re: cm District or Oolumbia,
92.-
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92...~....o ...__,.-_.,_-l--92-1-.. ».__. _ - _ ... .. __. -..- __- .__-.----._.._..-.. ..».._..-.-.p--~_.. __ . . _~ " A]: - V0
¢s1- _ . ..
er
hereof, Iothing herein contained shall be construed an admis-
eion hy any oi the alien l:0J:'pbI'lte Contractors that it is doing. .
r business in the State of New rm-1=,' or elsewhere in the tmtea e-
States, or an admission by any or the alien individuals that '
he or she resides in New York or in the United States, or92has '
en egent in Es! Iork H L-. *-
appointment or by law to receive service oi process.
III
a! The Government shall not have the right to bring
eh ectioza. egsihst er; oi the Goof.-rectors tor 9.»:
F-;. 5
1
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35-I;--fr-I~~.=* ;*~ -_this agreement to be
_ mud.
$-. _ .. .'._ {.1 ._' '_-_. .;92._ .... _._.. . .'_:.-.. .;__:*:::::-..- . _.-.:.- --.
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92.32.
mnacutoilthedayandyaartirstubovn
v
UNITED STATES OF AHERIGL
BI
FEE L, WEEK
Assistant Attorney Gaunt-A1
tor the Attorney Oanar.
THE GINIRAUIOBI -
l.RIS'.lO'.l'ELB S. OIMSSIB--
8, .
53%.-H U. Pisa, Iitorrxey-IE-FE
UNITED STATES PETROL-EH21 CARRIERS, IICI
1mn,r "_ _ ._ :_._ _. ......____.__..._.._ __,_......._ _._ _.....,-_..-__.. _.~.=._ __4.._.... ._-.__..='.=.;....-_._...... 1.. . -. ...-__.._.k. --_-.-..._.r--... ;._-H--.- .| .,--,._- k,._._
ncromcmnmns, mo.
Br
wasrm: mums, nm. -
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-E1id£Ba:'1en, *Rt.or?z'ey -?f1TFac7
CONSTMITDE KONIALIDIS
3! __ _ ., _iiduard J. Ross, 1t£orT1ey:{n-1:01?
HICHOLRS KUNIALIDI3
Br j H _ f-Emil JT1=.¢sa, Anni-nay-in-Fin?
HEROPE ONASSIS KDNIALIDIS
37
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3? ,_ . ___Eaward J, Ross, lititiorney-in-Fact
SCBIEDAD KMRITINA MIR-AFLORES IIHITI-Dl
3?
EH»:-era J, F555, Rmey-E-Pm?
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$-. APPINDH L
THE COITPACTOIE
Ariatotelea S. Onassis
United States Petroleum Carriers, Inc.
Victory Cnrriera, Inc-
westem Tankera, Inc. '
I:-afalgar Steamship Carporation ,
Constantine Konialidia
lficholaa Iimialidia
Heropo Onassis Konialidia
- Sociedad Industrial Barium Financier:
Ariana Panama, S. A.
- Soeiedad Ha.r:'.t.1.ma Miraflores Limited:
Petroleum Carriers or Panama Inc.
_ Transatla.nt1ca Financiera Industrial, S. 1.
nlq7-_.7 -~- *' -' ' " ' _ ' " __ 'T_-3..-"_..-'_'.lTl'_.".'_f.'_ .'_'.. :'.'-F-,T.TLE.*; __.,__.- W -- ~ ».e!': "1r::-.:. ;..._*- '. _.-__-- - --~-~.-T-~.:__:*':- _§-7' '__ 92__,__L,:.'.¢='=r.-_ r____..__. _.___._... 7 i V __ _____
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J . i 11e_s_se1g_9§ Un§tedTS+;ates_P;_g_grrq1e92m Carriers Inca
Tankers! S/S LAKE GEORGE
FORT BRIDGER
CAMP HAHANU
STONE PC-D71
mrru: Rocx
ARICKAREE
was zmwcms Sold!
Vessels of View: Cu-riensl Inca
Victories! s/s mas norm
cu: newt!
comm n'.u.mn-: VICTOR!
mmson cmr vzcronx
mxomw vxcmzz
mu/no vxcronr
nommzsrmv v1c'rom'
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APPENDIX C
gendingfiivil _I_.iti_g_§_tio§
Suit for profits and recovery oi vessels of
United States Petroleum Carriers, Inc and
Victory Carriers, Inc,
Name of File
Case Court No.
United States Y. District Court, Southern
Onassis, et Isl, District of New Iork 91-S3
kibele g_1'_rinior;uation 1'3; _F_g_r1'eitu_x2.
fa! jieesele of United Stgtee Retrolem C;11frie33j_IBC_=
Name of
Vessel
Lake George
lake George
Camp Ramenu
Camp Namanu
Battle Rock
Battle Rock
Arickaree
ArickareeCourt
District Court
Delaware
District Court
Delaware
District Court,
District of New
District Court,
District of New
District Court,
District of New
District Court,
District Of New
District Court,
District of New
District Court,
District or New
..1,-Southern
York
Southern
Iork
Southern
York
Southern
Iork
Southern
Iork
Southern
IorkLibel
N O Q
1101
1102
111-2'15
177-11$
:m-as
177-1311
111-2:9
176-323
_. perv-tr{F
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InL I
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Stony Point
Stony Point
_ Fort Bridger
Fort BridgerDistrict
District
District
District
District
District
District
District92
Court, Southern
of New fork
Court, Southern
or New York
Court, Southern
oi Alabhns
Court, Southern
of New York
Transferred to District
Court, Southern District
of Alabama!
la! Vesselsr of Victor-Lfigrjirersl Inc.
Name oi
Vessel Court
I-lortlrwcstern Victory District court, Southern
Coe VictoryD15 trict
District
District
Cosur d'A1ene Victory District
Hnnksto Victory
Ame: Victory
Longview Victory
Jefferson City
Vic tow
*' Levis Emery, Jr-
Beywood BrounDistrict
District
District
Die trict
District
District
District
District
District
District
District
Districtof New York
Court, Northern
oi California
Court, Northern
of California
Court, Hort-hen:
Of Csliiomis
Court, Southern
of Calitomia
Court, Southern
of Californil
Court, Eastern
of Pennsylvania
Court, Hm-thorn
oi California11'!-21:8
1??-198
2562
116-2n
Libel
No.
119-65
26565
26613
a
26626
15772-J3
157911-I
299 of
1953
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Name of
VesselLibel
COISI1 IO.
Hckittrick Hills District. Court, Southern
d! leaDistrict oi OaJ.i.1'cmia 15613-m
Name of
Vessel
Republic
3. Cases ineels of Tra_[IBJ.1.§Lar§teamship*Ccgzporati2
Libel
N00 . EE'"_~'_"°
District Court, Eastern
District of Texas563
Court of Claire: Sr'___ 92 fig 1i __ "j
I! United States Petroleumrriers, Inc. V. UnitedS ~ Ca T7States No{*9l-'SL, aasérting claims 'i'?to sl'o'EEgand strapping, repair allowances and repair
charges for plaintiff's vessels. .
Counterclain of Vnited States seeking forfeitureof plaintiff's claims and awarding the UnitedStates the value of the plaintiff: vessels andthe profits derived Iran their operation, and pay-ment to the United States of certain expenditures
and
b! Sallowances as to said vessels. F '
Western Tankers Inc. v, United States, No, 70-ShMEE cims as to slotting and strapping repairallowances and repair charges for the HontebelloHills and McKittrick Hills.
Counterclaim of United States seeking recovery ofunpaid balances of notes and mortgages covering
said vessels.
S e!
Victory Carriers Inc. v. United States no. 206-F5, mak clils as to desIra5Ie features and
repair allowances for certain vessels of
plaintiff, _ .
$--6-
=3-"5 1
.;~§$ : 1+§-1 4 I,1 .--7- 92 .'-_
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APPENDIX D
Mortgage Pgggents to be Had:
on S13 of Aggernent
Name of Vessel
'- 1. Q! Victozz Carriers: Inc
- 1-
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' -:1-Heywood B:-om
Heywood BraunPrincipal-n
Installment
$311!
314,031.
Q 1-Featem '1a.nkera| Inca
Hcktttrick H111!
Hcltitt-rick Hills
Hontebello Hills
Hantebello Hills
' Total
- I . _77,300.
71; 300..
T9! go
[91000-
$360,662.
.7.Due Data 0!
Installment
Feb.» 23, 19$:
rQbQ 23'
Mar. 15,
331': 15:
Feb. 214, 19514
nu. 2h, 195$19511
1955
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*In*-=1'¢=1=, at 3 1/2% per mm, to be cmpuua;
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. APPENDIX E
EM-lATU, FOR! E'IDGl'.-R,
Preferred Ship Mortgage and Indenture,ATICI£A}"£l;,' PG - Y I VI Tf92J.n.r92:.. um. _ .
0
Dated an of September 1, 1951, frcln United sum»
Petroleum Carriers, Incorporated, Ho:-tgagor, to The
First National City Bank of New York formerly named
The National City Bank of New York!, as Trustee, -
Mortgageeu "
C'I.3I~1='IC GIMES and "ILLIAH A, Y. BUIJJEH
First Preferred Fleet 1-lcn-tgage, Dated!
5eptemb-er 12, 1951, frcm Westem Tankers, Inc, to
United St-ates Petroleun Ca:-riere, Incorporated, and
assigned to The First National City Bank of New Iork
formerly named The National City Bank at New rm!,
_ . an T1_'u__at,e__e, lice-tgagee 1mder.,PreIer-r-ed Ship ecrtgage -and
Indenture, dated as of September 1, 1951,
FEDEPAL and i"EPUB1.»IC
First Preferred Fleet Ho:-tgage, Dated Feb-
ruary 9, 1951, from Trafalgar Steamship Corporaticn to
Ocean '1:-ading, Inc., and assigned tn The First National-I
1Y
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I! . Winter:-cud.efnem..-3:30 Pour! L*, 21,_ 1 t A f. II '.' _AwANcE RELEASE H , Elf?!-:1-I-I!._
5
, I. rARTMENT OF JUSTIC :1-
l.
Attorney General rbcrt Brownell, Jr-, announced s set ,
_ Z {$551}; ._agreement with A S. Onass d orfilinted interests involving ci T G . is -an
litigation arising out of the claimed illegal purchase from the
oi war surplus ships by noncitizen corporations. -
¢The litigation against the Onassis interests and the negotiati g,/
leading to the civil settlements have been under the direction oi Assiistnnt
Attorney General ihrren E. Burger, heed of the Civil Division, and 1'
special unit headed. by Morton Littin. In connection with the settlement,
M ltr. Burger said: *
92
"lhis brings to s close an unusual chapter in the history of Maritime
litigation, with the Government receiving not only the original payments
on the agreed purchase price oi the vessels but $7,000,000 Iron
the Onassis interests. Total Government recoveries from other purchasers
g y _ is the ,1»-st W2 veers $15,009,000; A A; he
_"__""""'l ' ...I_... -1:-».._"""""4* -.-..-.. - -_ Libel and rorreiture actions were brought t by ' nt of iustice u u H
against 17 vessels owned by various corporations claimed to he controlled
,.92 by A. S. Onassis to enforce provisions of the United States Shipping Laws
'¢.'./
prohibiting non-citizen control oi American Plug vessels. A personal civil
A_ action against A. S. Onassis and others to recover the Edits realized
trem the operation ct the vessels illegally purchased the Governmentuse also brought in the Federal Di%¥rict Court in nev York. rerremn-eactions eumorieea vith respect vs sels game ye; see» .- 1*," »_< J brought be%e the ssels were outside tn '12 " I'ed.ernl Court
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Under the tern... of the settlement agreement, the Government will
receive $7,000,000 which will include the payment of $6,600,000 in cash _,
and the release by the Onassis interests of claims approximating $1+00,000.
An additional sum of approximtely $500,000 will-be paid to make up arrears
in principal and interest on outstanding Maritime Administration mortgages
%ei_n_at ege er! the vessels and to bring pe.ys=ents en Jae mortgages te a
current status. the domestic corporations which own the vessels will remain
obligated for mortgage balances of approximately $5,500,000.
She settlement agreement also requires these American corporations to
be reorganized in such tanner as the Department deems necessary to insure
American citizen ownership and control of the vessels. lhe reorgan.ited_'
companies will be permitted to retain the vessels seized for forfeiture.
ln approving the settlement Attorney @erQ stated that
the statutory objectives of the shipping laws will be accomplished by having
the vessels owned and operated in the future by corporations which meet the
citizenship requirements of the shipping laws and registry statutes. At the
same time, the United Btates will receive payments of $7,000,000 based m
pest violatims of ta Shipping Acts
he Attorney General also pointed out that by being kept in Operatim,
rather than being forfeited, the settlement carries out a basic national
defense policy in that the vessels will be saintained in ready condition in
the event of any national emergency and the Government will thereby save the
substantial costs at lay-up in the reserve fleet and expense and time loss at
reactivation. Lay-up costs are estimated by Maritime authorities st about -
$30,000.00 per year per vessel - reactivation cost estimated at about
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It was also emphasized that continued operation of the
vessels, under United States Registry, will also provide em-
' ploymcnt for American Seaman and keep all vessels in a position
of immediate availability to the Government.
Elle civil litigation now being settled does not dispose
of numerous criminal proceedings against the same corporations
and individuals arising out of related transacticnss
Commenting on the civil cettlcnaat, Ir. Burger said:
"lhis settlement advances established national defense
policies by making a substantial tanker fleet available in ready
operating condition under American Flag registry. In addition
to large civil penalties bringing cash to the Government, the
Government is thus saved the expense of nnintaining these vessels
in the reserve fleet and the time loss and expense of mking
ready for use amen needed. Meanwhile, as operating vessels they
furnish employment for American Seaman which would not be the case
were they added to the laid-up reserve fleet, assuming the Government
was successful in this litigation."
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BACKGROUND INFOFHATION
nu4
me twenty-three vessels include 13 tankers, 1 Victory dry cargo
vessels, two Liberty dry cargo vessels, and one, whaling vessel. Twenty-
tvo or them were surplus var=built veels sold by the Maritime Caznission
now Maritime Administration! in the period from 19h8 to 1951 under cm
Merchant Ship Sales Act oi l91+6. These vessels were required to he sold
only to citizens or citil-en-controlled corporations, either by statute or
under the Cam-1ission's regulations at the time.
Sixteen otthe vessels were acquired directly tron Maritime by U. 8.
Petroleum Carriers, Inc. , and Victory Carriers, Inc. , both of which the
Government claimed vere owned and controlled by noncitizens dominated by
Ii. S. iinassis.
'1-ro or the vessels were acquired by Erafalgar Steamship Corporation
from citizen corporations which had previously purchased the vessels trcln
Maritime; the Government claims that Onassis owned and controlled Trafalgar
Corporation. Western Tankers Corporation, the fourth corporation involved,
acquired we vessels from Maritime in 19I+8 wane owned by citizens or the '
United States who in January l9|+9 sold the stock oi this corporation to
the Onassis-controlled U. S. Petroleum Carriers. Subsequently, the Corpora-
tion acquired two more vessels by purchase from citizen corporations. V
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transferred to American I-lag Operation and the ow-mcrship oi Western Tankers
Corporation in 1950, when one or the vessels previously acquired tron -
llaritine was transferred to Foreign Hag Operation and converted tor
whaling operations. . -
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The vessels are subject to private fleet mortgages oi approximate]:
$8,500,000 held by the First National City Bank as trustee for Retro-
politan Lite Insurance Company and to Maritime Administration mortgages
_pr approkimately $5,5oo,ooo.' The settlement requires the registered
owners to psi-' oi! the L-iaritine Administration nortgeges es Q! heeone
due.
Commencing April 1951, the start of the Subcommittee of the Senate
Committee on Government Operations, representatives oi the Maritime
inquiry
resale orAdministration, "end the General Accounting Office, began en
into the circumstances relating to the sale, chartering end
Government-owned surplus tanker vessels. In June 1951, the Becretuy
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The Department of Justice reached the conclusion that U. 8. Petroleum
Carriers, Inc., Victory Carriers, Inc-, Hester-n Tankers, Inc., and Trafalgar
s-
Steamship Corporation, although ostensibly citizen corporations, were in
fact controlled by aliens, particularly A. S. Onassis, and therefore were
not citizens within the meaning of the shipping laws. heir acquisition
and operation of American Flag vessels without the approval of the lllaritine
Ctmnission was cieemecl to be in violation of the shipping laws, thus sub-
Jecting the vessels to forfeiture to the United States. lhe first Onassis
vessel seized by the Department of Justice was the T-2 tanker __;Ls£e_ George,
which was seized at Wilmington, Delavs-re, on March 21+, 1953.
Forfeiture proceedings were brought against 17 of the vessels over
the succeeding months, charging violation of statutes relating to the "
documentation of vesselaunder United States flag and a violation of the
Shipping Act of 1916 prohibiting the transfer of United States flag vessels
to noncitizens. Forfeiture proceedings had not yet been instituted against
the other sis vessels beeeuee tmy were not treig in United States pr".-es
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United Ststes Petroleum
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'1'-2 tankers:
ARICKARJZE
CAMAS MEADOWS
FORT BRIIXEEH
LAKE GEORGE
BA'1'I'LE ROCK
CAMP HAMAHU
STORY POINTllev York, ll. Y.
Sold!
Mobile, Ala.
Wilmington, Del.
Rev Iork, ll. I.
New York, ll. I.
New York, ll. Y.
yictory Carriers , Wlnc .
Yictory Dry Qsrgo Vesselg: AMES VICTORY Z l
COB VICTORY
COEUR FALEHE VICTOR!
JEFFERSON CITY VIUIORY
IDNGVIEJ VICTORY
I-lANKA'1O VICTOR!
IORTHHEBIERI! VICTOR!Ins Angeles, Cal.
San Francisco, Cal
San Francisco, Cal
Bzilsdelphis, Pa.
Dos Angeles, Cal.
KEV YOIR, I0 Y.
;.1'[>_erty Dry Cargo Vessels:L_E?JIS*lB~!EBI, JR. * ' Sen Francisco, Cal.
' HEYWOQ BIROUI Tacoma, Hash.
Western 'I'nnkers,_Inc. W cw, f _ _
T-2 tankers:
M¢K.I'I'IRICK HILIS
l40N'I'EBEI.J.D HILIS
UM. AJ4. BURDEN
OLYMPIC GAMES10: Angelel, Cs-1.
Hot yet. seized.
lot yet seized.
lot yet seizevl.
Qlympic Uha1in§_Cqn§p_a.n§§,, §. A.
Hhaling llessel gonlferted tankerl:7 *0L!I-IPIC CHAI.LER'|3ERlot yet seized.
'i1-sfglgar Ssesnstlip iorporsitiog
1"-2 tankers:
FEDEE Rot. yet leizecl.
REPUBLIC Port Arthur, Tex.
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ENCLOSURESan Francisco, Cal.H/1/sa
12/5/55
3/ 21+. 53
3/ 27/_ $33/ EV 531*/2 53
3/5/53
8/1°/53
9/11"/53
3/30/53
8/17/53
9/26/53
3/6/53
T/31/53
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'l'° I Hr. Rossn ' oars. 1/9/56 H -Z. G 925§'i, i¬élon. Q :3; A. Evans {,," _ Jizigggiéi
wax -= _uoar;L.u42:a_1can sn1PP'1uc am: ftv _;aap1Nu co.. INCI, et aiicv /92 Egg;-~
rerun acarnér ran eovaannrnr Z;,_::
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This is to recommend recording for statistical purposes
a million dollars recovered by the Government in this case, toge
with $160,000 in fines and 6 convictions.
Following_a most extensive investigation in this ease
handled as a special in the New York Office with_as many as N0 _
Agents assigned!, Aristoteles B. Onassis on 12/21/55 in the U. 8.
District Court, Washington D. C. pleaded 6 corporations thathe controlled guilty to defrauding the Government and agreed
to pay to the Government the amount of $7,000,000 relating to
illegal purchases made by corporations that he controlled'of war
surplus ships from the Government the 87 000,000 to he paid ininstallments. The $1,000,000 claimed at this time was paid to the
Government on December 21 1955; $2 000,000 to be paid July 31,l9S6;__the_1palange_Qf s1;,g§g,ooo to g paid in 3 equal installmentsin July, 1957, 1956 and 1959. /Viv _-- =her
Even though the balance o $6,000 000 is guaranteed bythe National City em of New York 11; 1; believed the Bureau canonly claim a recovery of $1,000,006 at this time. Additional
recoveries will he recorded when the actual payments are made to
the Government in 1956, 1957, 1958 and 1959.
gucommnngrronz p.It is recommended that the Statistical Section credit theWashington Field 0ffice_with 6 Fraud Against the Government convictions
and $1 0 O00 in fines and that the New York Office he credited with amillion dollar recovery as investigation in this case was conductedby the New York Office evenéthough the court action took place in theDistrict of Columbia. ¬& u - r/J
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On December 21, 1955,
92 Oneesieg ct all Criminal Ho.warren omey 111 , assistant attorney General,I
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- ._.. ._.. _.- -_.lI&- A-GJ.U5l=Ll uy PLGG-5 01 5u.|.;.u; un
and the diensieeal of the indictment as to four remaining
individuals. Pines totaling $160,000 were ipoeed.= The Director, Federal Bureau of Investigation DATE: M
J&I.|.ae=.I'
HO
j ;- - Criminal Division . 114,5-
Hill Candyof
the case of United States g. -,
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Mr. d n___
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;amm__._Mr. W=i::rroId.
Telc. 3-wm....___
Mr. HoIlom.an___,_
This case was the last of the so-called ahipping caeel
listed in your records under the above subject. It in appropriate,
therefore, to express at thie time the sincere thanlce of
Criminal Division to the Federal Bureau of Investigation
its line cooperation and the estcellent work of all Special Agent:
aahn nn1I+_in'lnn+4 ! in Han 'In1rnn'l'.1al+.*Inn nf 'I'.'|92nnQ nnnpaIlaaw ribs 92a'a92lJ»rr192I92|l Q-la rolv 1llI'B92lU*@U#l92'lII 7:5 CQJUBU BQBWUQ
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1'0 i= W1. J. Edgar Hoover. -- - - d nsni ' 4 .
Q _ __-- Director, Federal Bureau of Investigatiu: - ' 1-
, - EBIPFCI I = gen-enE-Burger -" " ' _' ._ Assistant Attorney Gerseral, Civil Division 1&6-20-6 ci2.. é.£;;. .:Ow l _ _ - ' SUI}!-1'= Settlement agreanent with .l.S Onassis ' I - -*-- _s_n<;_;r*g;i1e3eaingegesgs, _ __ __- / Q I i iii
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_ V _ "-- in cash and the release by the Onassis interests of claims approzi-,5:
._;_ '__;-_-e_: _- mating $100,000; An additional son oi approximately $$ D,000 will , ~
3;--_-;__ . "~_ , __ "be paid to make up arrears in principal and interest on outstanding " '
__ P, Mariti.1ne_A.drnin.istration mortgages against sane of the vessels am! to:1-j - -' bring paynients on the mortgages to a current status. The settlement
J F
5 . _~+ _ -_-vessels to be reorganized in such _I|l'.n.ner as the 1 - ' -5 ?Inecesse.*y to insure American citizen ownership and control "of the
- vessels. -- - - ~ - ~' - -* -1*-' .-,_. r _ ,. , . . >-- 4 _ . 18179
" *7 "-,1ttached tor your information is a copy of the settlenen
-. agreumént between the Government and LS» Onassis and affiliated 1
» ' ' -- -. _ .--.-.- |_-
- " agreement also requires the domestic corporations 92rhich_cnrn.the ';'_fo .
1 3;; - Hill you please convey my sincere thanks to the Stéciaents_ h - kin your New York Field Office who.£urnished_apJ.mdid o ;__ ap3 - , excellent work in investigating Enesu Report b6-2507! e cc:?@,].i . W i' D';__,-cated financial and business arrangments involved .§ - I;-7b_t _~ . transactions relsti to the 2 ships in these cases. 1 Q55 in.-_ _ j/"1,¢_>tlm.n f7o92.;r$ta.tI£orhisc n¢n:|1_;j". 1' o_ courtesy» He was espec elpal Ihq: the tanker forte = _. , 6/J, ' '-H program got under um. . _" j _ __ we L. _i Q_/
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FEDEREL BUBEMI OF lll92lE$TlBlTl0ll
FOIPA DELETED PIGE lllFOIllMTl0l'l SHEET
Pagetsi withheld entirely at this location in the le. One or more of the following statements, where
indicated. explain t.his deletion.
Deleted under exemptionls! E * _, _ _ _ with no segregable
material available for release to you.
Information pertained only to a third party with no reference to you or the subject of your request.
infomaiion pertained nniy to a ti -id party. Your name is listed in the title only.
Dotumenttsi originating with the following government agencylies! s_ o_ o i _ _ s
_* _ __ T _ _ . was/were fonwarded to them for direct response to you.
Pagers! referred for consultation to the following government agencyes!; ___.__._._.___._._
__ é _ r __ __ i 7 _ _ as the information originated with them. You will
be advised of availability upon return of the material to the FBI.
Pagers} withheld for the following reasonls!:
For yourinfomiation:
"92-1-mA.H'-'1-J¢p ll? ,ljif3':"l_31T E-|°C.l~O 54-EH1-E.'ss __o '* as
The following number is to he used for reference regarding these pages:
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January 112, 1958 '_ I
. 181G9 -
Honorable Iarren I. Burger
Joe ietant Attorney eaerel
Civil Dioieioa
IF. 8- Department of Juetioe
Ialhlrsgtol, I. 8. e. ._ 1 ' 2-
pear Ia?-rel; ,- ' __ ' ' ' 1
I received your leaorandln dated January 4,1956, Iith the enclosed copy of the eettleeeut agreement 'between the Government and J. 8. Onaeeie and affiliatedtatereete. __ _ . ; c_- -- -
It ie indeed gratifying to hon that eh"iaueetigatiue e/forte of repreeeatatiaee of thie Bureau '
were no material to the eucceeeful termination el this Qutter. I deeply appreciate our eonendatarp Feaartl _b.7-mnma emu-1 1F9'** and the =»Special Agent: of our lea art office u o participatedin thie inoeetigatien, and I an advieing then of your "-I!V: 97
thoughtful cannente. You lag be eure they ehare it ' - -
gratitude ,for,gour eoneideratioe in writing.
girth ?/fb-lb:'trh;;~c;%;é,¬,y;.tn92coa ing. 5.00132362cc
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" FEDERAL BUREAU OF INVESTIGATION
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IIFOITING OFFICI A OFFICI OF ORIGIN 7 DLTI INVISTIGATIVEPIIIQQ . _ »y1A5].|1Ng-mg; EIELDWWASIIINGTON FIELD 7/23/5Q J 7/12/56 :"Ff"'~,¢
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comm, mcoaronmzn; tr AL A
I an mm AGAINST "ma GOVERNMEN1
5*"°"*'1 0n 127501//55, settlenent was nadebg the AG and A. ES. 0NASSIS:interests involving sum oi $7,000, 00,- 0n that date$1,000,000 was Yai to the Government. Since 2/2/56, andup to 7/1/56, $ ,000,000 additional has been paid of aotal of $2,000 000 which J1/56. r t is due 7 reafte
1 be due
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1-Washington Field 6-2607! ' ,
- us JUL 241955 -; <91, .'- "-I /_ corms nnsmomn * _ ,- . | _- "'1 -4869 MAY191970 1- '-- ' -NC Yfk lnf! n ii C: --.3
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0n December 21, 1955, the Attorney Generalannounced the settlement of litigation against the
A. S. ONASSIS interests. It that time e Governmentreceived as down segment $1 000 000 against the totalsettlement of $1, 0 000. int balance of the unpaidinstalhents were scbeduled to be paid as follows:
ngtt amount "July 1, 1956 $2,000,000.00
Joly 31, 1957 1,333,333.33
July 31, 1953 1,333,333.33
July 31. 1959 _1.§.3..t.3.i3..31
T011111 $6,000,000.00
The following payments have been made sinceDecember 21, 1955 and up to July l, 1956, according to
the records in the Docket and Statisticnl Unit of e
Civil Division:
HEB . 818911111
February 2 1956 $200,000March 2, 1956 200,000
April 3 1956 200,000May 2, i956 200,000
Total $1,000,000May 31 , 1956
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-31¢ " This report is intended to present a summaof the settlements nadé between the Government and tbzONASSISQ interests. The UFO will continueto check for the purpose of recording subse%uent payments made on account of the indebtedness tohe United States. _
One copg of this report is being designatedfor the New York ivision for information purposes.
lU5
Will contact the Docket and Stat a1Unit 1 ' n, Room 1608 Hlv
n or about 1 ,or recor mg a d tional payments.
REI-I-IRENCES: Reports of SA ""dated June 11 19 , August 22, 5,December 21, i955, and uly 10, 1956at Washington, D. C. ' J
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_ Mr. Bclmoni-- F
Mr. Mason--- _
1 ah * @'1~;~< _ _ 1'? HJ ,3; 0
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Attorney General Herbert Bron-nell, Jr., announced today that ti an. Nessa:' Mr. Winterr0wd-
le. R00l11--'¬f;_ H0lloman_.-
my ndy.___. DEPAIHMHTI OF JBHCI
i
aettlenfent of the Government's plains against the Q. B.OOnassis intere
has been concluded.rhe terms of the earlier settlement, previously announced, requircdi G
JChassis amp owning cclnpanies to ply the Government $7,000,000 em to use M
changes in the nansgenent and ovnerahip oi these cunpanies to satisfy the
Justice Department that they are citizen ¢OrpOrlt,1cn5 witliin the @111; qr
@.L_ _92_J.._J__ I__-_* we snapping lull.
Under the terms of a trust indenture executed today by the Onassis
interests I n=Jor1tr or the stock or U. s. Petroleum Carriers, Ine., Victory
Carriers, Inc., western Tankers, Inc. and 1'1-gfalgar 31-eemhgp qwqv, __
which owned 21 Inez-ican flag vessels, has been transferred to Grace llsticnal
Isak oi lieu !ork as trustee- Each of these operating" cmporaticns will nar
have a new board of directors and four of the five directors vill ifs
American citizens selected by the trustee as the now controlling stockholder.
me vropwei new directors are 14- Tinlley Raw, Edmond lioran, sum Griswol
_ Q - -_ .__92a;-_
!he trust indenture permits the trustee to undertake a program for the
construction of super-tankers in the United States which had previously
5 " 11111-"1l1"=1 52/ Onlslis. Such program, if undertaken, hoaever, must be
"subject to such approvals and requirements oi the] yxiited Am.-_£t1ng
Administrator as he lay dean to_'be required or ¢Pq?'8?,-é;_4$é;zé§;:; .0! the $'b°°°.°°° PW9292>1¢.1= 11181-Bllmenta to the the
Chassis igteresta, ¢h,000,000 nu now been pus; $1;s-|-2,591.05-s:i¢; 1-...
ceivedtw g0-ovorment on July 31: 1955- _66Arrf/27}0/
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. - I i *Proposed Directors of ILS.Petroleum E31-iers and re-
lated compl es____ - -
; _ . __ -
John Carroll Griswold _
Vice-president in charge of the Chicago office of the
Continental Casualty Cauparw, 1922-192$. With Rollins Burdick
Hunter Co., 1925-1931. Bkector and "rice-president oi the
Fred S. James & Co., Chicago, in 1936, and manager of its New
Iork City office 1939-19h5. Fouder and since 19h5 ?resident
and Director oi Griswold & Co., Inc. , New York City. Vice-
president oi W.R. Grace Q 00., 19119-1955, and since J.9SO I
director, and since 1955 an executive vice-president. President
and director of Griswold & 00., 1110., of California. Also
director oi Grace National Bank of New Iork, Hunsorn Line, Inc
Foster & Kleiser Canpany,-Congolexra Nairn, Inc., Trustee of
Lenox Hill Hos;-it...-=-1, Hear !or!_:=
Edmond Josezh Moran
_ -4 - n ---. -__. . 1- _ n-e 592_ Q-n_Rear Acrnarai, united states navy. ne was witn ..ne u.o.
!'!a:'itime Commission, 191:1-19142, as special assistant in charge
of acquisition of small craft for U.S. Army, U.S. Navy and
British Government in 19141, and as special assistant to tin
Commission and as Chairman for small vessels; 19142. With the
War Shippirg Administration since 19143, with Cuties which in-
cluded service on start oi Allied Naval Commander, U.S. Raul
Forces in Europe in 19h3. The latter duty included control of
all tugs in U.S. Navy, U.S. Army, Royal Navy, Ministry of bill -1
Transport and '.-Jar Shippirg .'-d-1-.ir.istrstior-, snd the :.921:.r......,"*o~ ad
execution of tug towing operations prior to and during assault
on France. He later unis on duty with the War Shipping Adminis-
tration as Deputy Administrator for small vessels. President of
Horan Towing and Transportation Company, New Iork, NJ.
Eh#?lF=e§:.° " 1"6h=@
Partner in the law firm of Ki:-lin, Campbell and Keating.
Mr. Keating is a director of Grace Rational Bank and the law
firm is counsel for Grace National Bank. The law firm has not
represented Hr. Onassis or the ccznpanies owned and controlled
oy nan.
Ei_Iin§lsI_B5z
Vice-president and Trust Officer of Grace National Bank.--1
I
ll _ leper! I'e.5m _ -' 2 _ J {.1 _.
FDELCJ -11-S5] .
' 11.
. , h Q IFEDERAL BUREAU or-' INVESTIGATION
i rt 7 I V if. HEPORTING OFFICI I OFFICE OF ORIGIN { DATI I INVISTIGATIVE PERIOD
Ll
II J 1»!.-".-SI-IIIQGTQEJ FIELD I ASHINGTO} 5/29 I 8/22{1f~ H_ - _ E 1'7" , _ ___~» E E ~ _,,* _ e _
Tm; Qp :55: _ nzrorr MAD _ TYPED IY- E s we
" lsssma J * J L-' " "E"
NORTH AHERICAH SHIPPING AND _%Lk
TRADIIIQ _co:-:1=».mr_, _It{QC_>E§§_ _JB_15[1E_LD; .er AL _ " FRAUD AGAINST was covsmmr
1'-Mon": A. S. OIIASSIS interests made payment to rnment of
r, on July 3 1956, and another payment oi 000 on
accou ofo
- L70
F = 5'1 wnsspgeroli, 1!. 0.: M -*7-' T 1|:_ -
"Nu.=- ,§,I'he records of the Docket and Statistical Unit, C1711Di92£g§io:3,""Depertment of Justice, reflect that on July 3, 19§§,__ the-A.1QSi; ONASSIS interests made a payment to the Department?- oI.=§ust1,§'e in the amount of $200,000 pursuant to agree_ment$ -
entered nto on December 21, 1955, involving a settlemegt _:_>__£aL1;r0<>0.@0. J " :.:
- "5 5 -1'."
These records zrther reflect that on August 17,; I
1956, an additional payment was made to tne Department 01% ;
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92 J» :¬F..»-- Q Bureau me-17783!-..@ He.-J York {1;6=250?iii " ' 1- Washington Field ___' n4,.- .
C1T QQPIES nssrnovsn 16 nus sousss ,.r'H9292§92{'' see rm 191910 ._...... ..._. {92 P Q. '
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0 - _ K _-Inn-r». .of Justice in the am0unt'of $750,000 15 connection with nn§§1Y0§*
_sane agreement. Future payments under this agreement are
schedulea for July 31, 1957; July 31, 1955; and July 31, 1959,-,;.,..Lin 8mOL.nt5 of $1,333,333 each.
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3%,. ¥,. -e_-f_!-.f.?1-3_"",," This report reflects the payments made to the 3%"the OHASSIS qinterests since .Tu1y'1,'1§§ r -1 *
' b7 As additional payments are ma e o the government, the Hashington Field Office will report same accordingly. W U
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LEADS:
mi1w.r<>R1<121!I,=§I9I= - - --~---~~-i
.511??? Y°RK_....N.-_Y-= INFORMATION . - -.
One copy or this report is being designated for i '
the New York Division for in.formation_purposes.
ghsazgsgon FIELD OFFICE: -
AT, w_A_snIne10_r;,__o. ,c..=
1. Will maintain contact with the Docket and
Statistical Unit, Civil Division, Depart- ~ ~
ment or Justice, to ascertain dates and
amonmte or additional payments. _ 'J _
. Q ' I-11"-~oF';"!e '.. -
Hill maintain contact with_ K1,, 2.
- ~ 1the*-lnvestmenteranch, Bureauwot Accoun es;
'%asury Department, room 5L|.L;1, Plain Treasury
Building, in order to obtain dates and amounts
of additional payments.
REFERENCE = Report er sA u dated m1; 23, ;;1=/
at Washington, D. C.
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92' "IOlli Mem0r:§.;dum - UNITED sras GOVERNMENT
to - Hr. Ros 5? mm 9/11/56
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seszrvr; non-smznzcnn snxrrmc sun TRADING " '5';-*-7
COWANY, INC , ET AL .,,.,_, Q? e _ J e :2:
"9" ' C. A. Evans
. Tale. es-
. s Nelle-s._FRAUD AGAINST THE covmmmzr . 1,/ 1 F C-'1?
This is to recommend recording tor statistical purpose
$1,950,000 in additional monies recovered by the Government in this
CRBBQ ¬
Following a most extensive investigation handled as a
special in the New. York Office with as many as 11,0 agents assigned!,lA!'istO1'-eles S. Onassis on 12/21/55 pleaded six oi his corporations
guilty in the U. 8. District Court, Washington, D. 6., on charges ct
defrauding the Government. At that time Onassis agreed to pay to the
Government $7,000,000. Onassis has previously made payments totalling
$g000,000 on this indebtedness and the Bureau has already recorded the
statistic. On July 3, 1956, Onassis made an additional payment of
$200,000 and another payment of $750,000 on B/l_?/56. The balance is to
be paid _i_n three equal installments on July 31, 1957. July 31, 1958, Jand July 31, 1959.- "' "" I
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J 1 Even though the balance owed b Onassis is! QCguaranteed by the National City Bank or New or , s e ieved that 92 .
the Bureau can only claims recovery of $1,950,000 at this time.
_Additional recoveries will be recorded as the actual payments are-
made to the GO92l8!1l!_l§nt,_|1|l'§. the future.-_ r ,.- *
RECGCIQEJNDATION: F 2 KL I, __ mi
It is recommended that Statistical ection credit the New YorkDivision with $1,950,000 as a recovery in this case.'_-'&{@=.~-.<~~--+-<"- 6-5he-17783 J ' 3' aacoan£0j?:5 "R J M no _ H "S1956 .-;,"7~"
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FEDERAL aunuu OF INVESTIGATION ~
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n uni; on-1-B Jun ii _or1g£i é nu " j uunignuo rerun _,_, -.~ -- 'III»~ 'wAsn1ncma'-r1E1.p Iasamcjron r11e:1.n_? 3/1/51 7* 3/5157 - i= |1L[ f ¢;|[ _ -hv " 4' L" lulu I! "' * _ _ Igpid I- my .
qonwa Anmamnu snxvpmo AND-rrmnmc_gommw, INCORPORATED; ET AL' " ""*?"* --"--"'"'""-"-~" A FRAUD AGAINST um covznrmmrr
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" ~ 1 - New York 6-2501! Info! 7 ___, - 22j 1 - Washington Field 6-2601! 8 95" _ A'_|| MAR 1 7Q&$".°
909933 DESTROYED f W , -El Bureau 6-11183! W 7 j go ,
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I ;i.j_-"REV! YORK n1¢ vrsxo INFOR_MA'IION_!.">* o..z$ap;»*.¢ nu_ s report is being designated for the ' New York Division for information purposes.
_WASHINGTDN FIELD OFFICE
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.... -.. w -l 0/ av contact_ 57 Q In ves tment Br canch, Bureau of coun , om 5441, Iain Treasury Building,to obtain date of additional payment due7/31/57 in amount of $1,333 333 33
I I 9Therearten additional payments will be due on 7/31/58 and 7/31/59 in amounts oi$1,333,333.33 respectively.
All or these payments are due in accordance -~with an agreement dated 12/21/55 between _the attorney General and the A. S. Onassisinterests, -~s-
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