Monti Marine, originally in the amount of $250,000. The loan

was secured by a chattel mortgage on Monti Marine's assets. The loan was subsequently increased to $400,000.

Monti Marine, by timely payments, has reduced

this loan and at the present time it amounts to $125,000. Grace Line, at the time it agreed to guarantee the loan, insisted that Monti Marine take various steps looking toward a more efficient operation. These steps included the following: A Price Waterhouse accountant was employed by Monti Marine to supervise all accounting and financial details and to countersign all checks of the Corporation.

1.

2.

The services of one Sorrentino were terminated, since he had certain undesirable associations.

3. Monti Marine was required to submit to Grace Line periodic certified statements of the results of its operations.

At no time has Grace Line or any of its affiliated

companies or any of its officers or directors had any interest in Monti Marine and to the best of its knowledge and belief nons of its employees has or had any such interest. The only relationship between Monti Marine and Grace Line is that Grace Line engages the services of Monti Marine to do specified maintenance and repair work on its ships under a written contract and as the guarantor of the bank loan above referred to.

Monti ́ Marine has performed its contractual relations under the contrast to the entire satisfaction of Grace Line and Grace Line has effected substantial savings in maintenance through the employment of Monti Marine.

In 1955 a Brooklyn Grand Jury subpoenaed the books

and records of Monti Marine and those records of Grace Line relating to its contract with Monti Marine. No action was taken by the Grand Jury against Monti Marine or any of its officers, directors or employees.

Grace Line has no knowledge of any undesirable person associated with Monti Marine. It came to Grace Line's attention that Carmine Lombardozzi had been employed by Monti Marine and that he had a criminal record. Monti Marine terminated his services. Upon learning of this fact, Grace Line inquired of Monti Marine as to whether it had any other employees who had a criminal record, and was assured that there were none.

Inc.; that he signed the foregoing letter and that he

knows the contents thereof, and that he believes each and

every statement therein contained to be true.

Deponent further says that the grounds

of his belief are as follows:

Interviews with other

officers and employees of Grace Line Inc.; the results of an examination of the records of Grace Line Inc. which deponent caused to be made; and interviews with officers of Monti Marine Corporation who have represented to deponent that (1) Carmine Lombardozzi while in its employ at no time was concerned with that corporation's work for Grace Line Inc.; and (2) that machinery leased by Monti Marine Corporation from Marine Mobile Company was at no time used in connection with work done on vessels of Grace Line Inc.