not been advised that any claim by any charterer will be made, but such claims may be made any time before the statute of limitations expires. It is believed that it is fair to the owners of requisitioned steamships to pay them the rate that was contemporaneously paid for voluntary charters, provided that the owners will indemnify the Government against all claims of third parties. If the owners are not willing to so indemnify the Government, then the Government should refuse to pay anyone until conflicting claims of all parties have been fully determined by the court or the Government could pay into court the hire, and in case of the steamship's loss, its value to be distributed by the court according to what the court shall determine to be the respective interests of the parties.

(a) To be added at end of Paragraph II of the printed charter party in place of the last sentence:

The company shall indemnify the United States against any claim of any third party in respect of sa'd steamship arising before or at the time said steamship went into the military service of the United States, not exceeding however any amount that may be paid by the United States to the company under this charter; and the United States to secure such agreement of indemnity shall, until all such claims have been barred or released, have a first lien on said steamship, or in the case of her loss on the sum herein provided to be paid in case of default in returning said steamship; or at the option of the company it may substitute for such lien a bond with a surety or sureties satisfactory to the United States conditioned for the payment of a sum of not less than $- -"

(b) To be added as a new and numbered paragraph in the blank space at the end of the printed charter party:

"That the company represents that at the time said steamship was requisitioned for the military service of the United States the company was under no unexpired charter engagement in respect of the said steamship except a charter with under which the company agreed to furnish said steamship, and the charterer agreed to pay hire

dated

-, expiring -"

at the rate of $(c) To be added as a new and numbered paragraph in the blank space at the end of the printed charter party.

"That in consideration of the execution and delivery of this charter and the performance by the United States of the covenants on its part herein contained, the company releases the United States from all claims in respect of the requisition of said steamship by the United States."

3. For the purpose of convenience a copy of this letter has been attached to each printed copy of the charter party transmitted herewith.

J. M. CARSON, Colonel, Quartermaster Corps.

FORM USED FOR VOLUNTARY CHARTER OF STEMSHIPS FREE FROM ALL CHARTER ENGAGEMENTS. DRAFTED BY CAPT. T. M'ILVAINE, QUARTERMASTER, UNITED STATES

RESERVE.

This contract of charter party, entered into at the city of New York this day of —, nineteen hundred and seventeen, between COLONEL J. M. CARSON, Quartermaster Corps, United States Army, party of the first part, for and in behalf of the UNITED STATES OF AMERICA, and a corporation existing under the laws of the State of having an office in the county of State of (hereinafter referred to as the company), owner of the steamship called the, at present lying at of tons gross register, and sailing under the American flag, party of the second part, witnesseth that the said parties do hereby mutually covenant and agree to and with each other as follows, viz:

I. That the company does hereby grant and let, and said Colonel J. M. Carson, Quartermaster Corps, for and in behalf of the United States, does hereby take, said steamship for such time as she may be required in the military service of the United States, for the remainder of the fiscal year 1917, and thereafter, not to extend beyond the thirtieth day of June, nineteen hundred and eighteen, unless this charter shall be renewed on or before that date.

II. That the company represents that said steamship now is or shall be forthwith made tight, staunch, strong, and well and sufficiently tackled, appareled. and furnished in every respect in good running order and fit for merchant service, at the cost and charge of the owner. Any time lost prior to the first

sailing under this charter in consequence of making repairs to remedy any deficiency in these respects is not to be paid for by the United States. The company shall indemnify the United States against any claims of third parties arising before the date of this charter.

III. That the United States assumes all war, marine, and all other risks of whtsoever nature or kind, including all risk of liability for damage occasioned to other vessels, persons, or property.

IV. That the captain and the chief engineer of said steamship shall be nominated by the company, but paid by and be in all respects the servants of the United States, which shall be entitled (in such manner as it may from time to time prescribe through and to the officers of its military establishment) to remove said captain and chief engineer, or either of them, and to appoint other officers in their place. So far as the emergency will permit, the company will be consulted as to the appointment of their successors.

V. That any part charges and pilotage during the continuance of this charter shall be paid for by the United States.

VI. That said steamship shall be manned, operated, victualed, and supplied by and at the expense of the United States.

VII. That in consideration of the faithful performance of the covenants of this charter the company shall be paid hire by the United States for each and every day said steamship may be retained, at the rate of per calendar month, payable at the end of each month with ratable allowance for fractions of months and days (thirty days being considered one month and twenty-four hours one day in computing such fractions). The hire shall run and continue from - o'clock m. on the date hereof to the time when said steamship is returned or lost, or declared to be a total loss as hereinafter provided; if the time of loss shall be uncertain it shall be fixed as of the date when said steamship is last heard from. The United States shall pay any equipment rentals arising during, but not covering any period beyond, the continuance of this charter (exclusive of any charge for personal services) for wireless and submarine signalling apparatus now installed on said steamship.

VIII. That fuel and consumable stores in good order and consumable equipment on said steamship in good order shall be purchased by the United States and paid for within thirty days after delivery of this charter at their original cost, as per inventory hereto attached or to be attached marked "Schedule A"; other stores and equipment or their substantial equivalent as per inventory attached or to be attached, marked "Schedule B." shall be returned to the company in as good order and condition as when received, ordinary wear and tear excepted, when said steamship is returned.

IX. That in consideration of the faithful performance of the covenants of this charter said steamship shall be returned by the United States to the company at New York Harbor at the termination of this charter in the same and as good order and condition as when received, ordinary wear and tear excepted, and free from all claims and liens arising during the continuance of this charter; or, in default thereof, the United States shall pay the company for said steamship as of the time of loss (if uncertain, the time when said steamship is last heard from), together with interest at 6% per annum, at the following rates: $275.00 per ton if said steamship be 12 years old or under; $250.00 per ton if said steamship be over 12 years and not over 17 years of age; $225.00 per ton if said steamship be over 17 years and not over 22 years of age; $200.00 per ton if said steamship be over 22 years and not over 27 years of age; $175.00 per ton if said steamship be over 27 years of age.

4400-17-32

The value of said steamship is to be based on the same tonnage as that upon which the hire is paid. The age of said steamship is to be determined as of the time of loss (if uncertain, the time when she is last heard from) counting from the earliest date of her being registered, enrolled, or otherwise documented.

If said steamship sustains serious damage or injury to the extent that the United States shall, without regard to any rule of law, consider her a total loss, the United States shall have the option (within 120 days thereafter) of declaring said steamship to be a total loss and of taking over or selling said damaged steamship and shall then pay for said steamship the same compensation as hereinabove provided in case of actual loss.

X. That any reasonable overtime and extra expenses incidental to hurrying the discharge at of said steamship's last cargo, as well as any expense of equipping said steamship with additional boatage and crew accommodations and other fittings for the United States transport service, together with the cost of any supplies and equipment put on board at the request of the depot quartermaster, New York, to the total amount that may be determined and approved by him, shall forthwith be paid by the United States.

XI. That so far as reasonably possible the United States will use engine lubricants designated by the company in writing, and will also, so far as reasonably possible, regularly dry-dock said steamship and clean and paint her bottom and underwater parts.

XII. That all payments hereunder shall be made at the office of the disbursing quartermaster at New York City in the funds furnished for the purpose by the United States.

XIII. That at the option of the United States this charter, with all its covenants and agreements, may be renewed yearly as often as the needs of the public service may require, so as to give the United States continuous possession of said steamship, not extending, however, beyond one year after termination of the existing war, but no renewal shall be made to include more than one fiscal year, provided, however, that the United States may at any time after June 30th, 1917, terminate this charter or any renewal thereof by giving thirty days' written notice to the company.

XIV. That neither this contract nor any interest therein shall be transferred by the company to any other party, and any such transfer shall cause the annulment of the contract so far as the United States is concerned. All rights of action, however, to recover for any breach of this contract by the company are reserved to the United States.

XV. That no Member of or Delegate to Congress, or Resident Commissioner, nor any person belonging to or employed in the military service of the United States, is or shall be admitted to any share or part of this contract or to any benefit which may arise herefrom, but under the provisions of section 116 of the act of Congress approved March 4, 1909 (35 Stats., 1088), this stipulation, so far as it relates to Members of or Delegates to Congress, or Resident Commissioners, shall not extend or be construed to extend to any contract made with an incorporated company for its general benefit.

XVI. That anything herein contained to the contrary, notwithstanding any statement herein as to tonnage or capacity of said steamship, shall be open to correction on behalf of the United States if incorrectly stated.

In witness whereof the party of the first part has set his hand and the party of the second part has caused this agreement to be signed by its president and attested by its secretary as of the date first hereinbefore

[Executed in triplicate.]

NOTE. -The name of the principal intended to be bound as party of the second part, whether an individual, a partnership, or a corporation, should be inserted in and signed to the contract. An officer of a corporation, a partner, or an agent signing for the principal should add his name and designation after the word "by" and under the name of the principal.

This contract need not be executed under seal.

The CHAIRMAN. What else is there?

RESERVE STOCK OF WAGONS, HARNESS, MOTOR TRUCKS, AND SUPPLIES.

Capt. DALY. There is an item of $64,000,000 for a six months' reserve stock of wagons, harness, motor trucks, and supplies.

The CHAIRMAN. Is that based upon the needs of 2,000,000 men? Capt. DALY. Yes, sir; assuming losses en route or in transit.

The CHAIRMAN. Now, what portion of the estimated amount required for reserve stock and these additional means of transportation is estimated will not be expended before the 30th of June, or have you taken that up?

Capt. DALY. We have not considered that, but we can do it.

The CHAIRMAN. If you have authority to contract for the transportation estimated for and the money made available which could be expended in this fiscal year that is all you could possibly use. Now, will you try to figure out what portion of the money would not be expended prior to June 30? Of course, as long as you have the authority to contract, that is all that is needed.

Capt. DALY. Yes, sir.

The CHAIRMAN. Have you the details of this reserve stock?

Capt. DALY. Not except in general terms. It is a six months' reserve stock of wagons, harness, motor trucks, and supplies. I will furnish the details.

The CHAIRMAN. You can do that.

On page 75 of the bill, in the item for travel allowance to officers and enlisted men on discharge, the words "officers and" are dropped

out.

Gen. SHARPE. They ought to be in there.

Capt. DALY. That applies to officers of the National Guard discharged by order.

The CHAIRMAN. Then, on page 76, you suggest that these words be inserted: "of supplies furnished to the militia for the permanent equipment thereof." What is the necessity for that?

Capt. DALY. There is no necessity for it. That was in the current Army act in order to straighten out the difficulty in connection with the issue of supplies to the militia on the Mexica border, but it is not necessary here.

THURSDAY, AUGUST 2, 1917.

STORAGE FACILITIES.

The CHAIRMAN. The next item is, water and sewers at military posts.

Gen. SHARPE. Mr. Chairman, before we commence on that, under barracks and quarters, regular supplies and water and sewers, there are items which have come in, in connection with the construction of warehouses at the ports of embarkation, and Col. Littell has a letter from the storage committee of the Council of National Defense which I think should be submitted showing their views.

Col. LITTELL. We have information from the advisory committee on storage of the Council of National Defense, and they estimate that approximately 36,000,000 square feet of storage space will be required for terminal storage on the Atlantic seaboard at points convenient to ocean shipping. They estimate the total cost at

$82,000,000; the barracks and quarters item being $51,000,000; regular supplies, $12,000,000; roads, walks, wharves, and drainage, $13,000,000; water and sewers, $6,000,000. That, of course, includes all the mechanical outfit for operating them, all modern means for handling freight, etc., and the estimate is based on fireproof concrete storehouses.

The CHAIRMAN. That is just their conclusion. We want to know what it is based on.

Col. LITTELL. Mr. Chairman, we do not know what it is based on. The CHAIRMAN. How do they know what the Army needs?

Col. LITTELL. They have gone around to the various places, I presume, and have obtained it. We tried to get some information of that sort ourselves, but did not succeed. That includes storage for the Engineers and ordnance and everything else. They have never made any report to us, so we do not know what they base it on.

The CHAIRMAN. Somebody who has information about it will have to tell us about it before we appropriate that amount of money for storage. They estimate $51,000,000 for barracks and quarters. Is that storage?

Col. LITTELL. Yes, sir; it is paid out of that appropriation. We build all of our storehouses out of barracks and quarters. That is for the actual construction.

The CHAIRMAN. For regular supplies they estimate $12,000,000; and for roads, walks, wharves, and drainage, $13,000,000; and water and sewers, $6,000,000; making a total of $82,000,000.

Col. LITTELL. That is the total.

The CHAIRMAN. Whoever knows about it will have to come up here and explain it.

Gen. SHARPE. Our estimate under barracks and quarters was only $3,000,000, where they have $51,000,000, just 17 times the amount we thought would be necessary.

Col. LITTELL. That estimate, Mr. Fitzgerald, is based on what they told us was necessary. We just made it to comply with their state

ment.

The CHAIRMAN. We will have to have definite information about it. Col. LITTELL. As the general says, we estimated $3,000,000 from the information we could get, but we could not get information about what the various departments wanted.

The CHAIRMAN. When you are speaking of putting $51,000,000 into warehouses you are speaking about a project of very extraordinary size. They may send you a memorandum and get away with it, but we will have to have definite information about it here.

Col. LITTELL. We just submitted the estimate because that is what they stated was needed.

Gen. SHARPE. We submitted it only for information as to what their views are.

The CHAIRMAN. We have no estimate for that here.

Gen. SHARPE. No, sir; nothing at all.

The CHAIRMAN. What doy uo call that-the storage-facilities committee?

Gen. SHARPE. The storage committee of the Council of National Defense.