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442 MARINE REVIEW and in practically every respect a mis- fit. She was soon withdrawn and was followed during 1920 by the CALLAO, MaRTHA WASHINGTON, Huron and ‘AEOLUS, all elaborately reconditioned at great expense. These vessels main- tained a regular and fairly satisfac- tory service until they were replaced by the AMERICAN LEGION and SOUTH- ERN CROSS in the spring of 1921 and the WESTERN WorLD and PAN AMER- IcA early in 1922; the four vessels now purchased by the Munson Line. These vessels were originally laid down by the United States govern- ment for the purpose of transporting troops and materials during the Great war but as their construction had not progressed very far before it was seen that they would not be needed for this purpose, necessary alterations were made in their plans to make them suitable for the passenger liner trade. They are 535 feet in length, 72 feet in beam and 50 feet in depth, of 14,- 000 gross tons with a displacement of 22,000 tons and a deadweight ton- nage of 11,000. They burn oil and are equipped with turbines and reduction gears and Yarrow type water tube boilers. Their service speed is 15% knots and they can do 17 knots if pushed. The service as maintained provides a sailing from New York (docking at Hoboken) to South America every two weeks. The principal South Amer- ican ports of call are Rio de Janeiro, Santos, Montevideo and Buenos Aires. A round voyage for one ship takes about 56 days. It is, of course, pos- sible to go and come back in much less time by returning on one of the other ships. The actual sailing time from New York to Rio de Janeiro is 12 days. American Ships Help Trade Among the principal items of export ‘cargo are automobiles, factory ma- chinery, locomotives, railway equip- ment and agricultural implements. Among the principal items of import cargo are dyes, coffee, wool, hides, linseed and fertilizer. Under Munson Line operation for the shipping board, commerce on this route has been steadily developed un- til it appeared that this line could be profitably run by private operators. The ships were then offered for sale. Before the War practically all the commerce between the United States and South America was carried under foreign flags. Both exports and im- ports between South American coun- tries and the United States were usu- ally carried on two legs of a triangle, from New York to Liverpool to South American ports. This route put our manufacturers and exporters to a great disadvantage in selling. their goods in South American markets. This disadvantage was removed as soon as the Pan America Line was established and our trade with South America, both export and import, de- veloped with great rapidity. In the development of its railroads alone, South America has, in the last few years, spent hundreds of millions of dollars. Since the establishment of the Pan America Line manufacturers in this country have sold to South America practically all of the locomo- tives which they have ordered, and most of the rolling stock. A Resume of the Bids Received Some evidence exists of dissatisfac- tion on the part. of unsuccessful bid- ders for the Pan America Line and it may therefore be well to give here a chronological summary of the va- ‘rious bids made as given out from time to time by the shipping board. On Sept. 12, three bids were filed with Admiral Palmer for the purchase of the Pan America Line, in which four steamers are run between New York and the East coast of South America, under the management of the Munson Steamship Line acting as agents for the Emergency Fleet Corp. On Sept. 14, President Palmer of the Fleet corporation sent to the shipping board his recommendations for the disposal of the four ships. At that time terms of the various bids and Mr. Palmer’s recommendations were not made public. On Sept. 17, the shipping board by a three to three vote failed to af- firm the recommendation of Mr. Palm- er that the four ships of the Pan America Line be sold to the Munson Steamship Line, the present operators, for $3,080,000. Commissioner Benson was not in attendance. On Sept. 18, Frank C.. Munson, president of the Munson Steamship Line, appeared be- fore a special meeting of the board to explain his offer. The Munson bid, though the highest received at this time, was rejected by the board as in- adequate. : On Oct. 28 the shipping board is- sued a second call for competitive bids for the Pan America Line to be in by 11 am. Nov. 2. The bids received were opened on that day and it was found that the Munson Steamship Line offered $800,000 per ship or a total of $3,200,000 and that Moore & McCormack of New York City of- fered $1,025,025 per ship or a total of $4,100,100 for the four ships. Af- ter the bids were opened the Mun- December, 1925 son Steamship Line made a new bid of $1,026,000 per ship or a total of $4,104,000 for the four ships. The board then took these bids under ad- visement and asked the president of the Fleet corporation for his recom- mendations. Nothing further was offi- cially heard of the matter until Nov. 12 when the board announced the sale of the ships and the service to the Munson Steamship Line for $4,- 104,000. This action of the shipping board was taken after Moore & McCormack of New York had withdrawn their bid of $4,101,100, protesting against the manner in which bids were obtained from the Munson Line and contending that the board two days previously altered the terms of the proposed sale, also that new competitive offers should have been received after the prospec- tive bidders had had an opportunity to look over the vessels to arrive at an estimate of the repairs necessary to place them in good condition. All of the members of the board present with the exception of Ad- miral Benson voted for the sale of the ships to the Munson Steamship Line. His objection was that a guarantee of operation of the service should have been exacted for more than five years. Delivery of the ships to the Munson Line was to be made at once upon the execution of the sale. The shipping board agreed to make repairs on the vessels up to $200,000. Over this any necessary repairs are to be made by the new owners. It is un- derstood that the Munson Line paid 25 per cent of the purchase price on delivery of the ships and the re- mainder will be paid in 14 annual in- stallments bearing 4% per cent in- terest. A bond of $1,000,000 is also called for to guarantee maintenance of the service for a period of five ‘years on the same schedule. South American Trade Grows The fact that the United States is gaining in commerce with South America, and is strengthening its foot- hold in a field dominated by foreign competitors before the war, is shown by a number of reports, according to Frank C. Munson, president of the Munson Steamship Line. In a recent statement referring to the report of the department of commerce for July, showing an increase in exports to South America from $23,000,000 in July, 1924, to $32,000,000 in the same month of this year, Mr. Munson said: “This advance in trade is not a flash in the pan, but reflects the steady growth of business fram year to year. 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