PUBLIC RECORD OFFICE
19
Reference :-
C.O. 885
24 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE | COPYRIGHT PHOTOGRAPH-NUT TU| BE REPRODUCED PHOTOGRAPHIC-
194
APPENDIX A.-REPORTS.
to take such action in accordance with their recommendations as circumstances may require. In this connexion I am to point out that, even if it be eventually decided by His Majesty's Government that detained ships are to be put up for sale, the considerations which are referred to in the portion of the Committee's report relating to prize ships will apply to the disposal of detained ships also, and it will no doubt prove expedient in many cases to charter these ships for short periods, particularly as a decision to sell them would accentuate the tendency to depress the market.
I am, &c.,
106
ANNEXURE B TO NO. 1.
O. G. R. WILLIAMS,
for Secretary.
TREASURY to OVERSEA PRIZE DISPOSAL COMMITTEE,
Treasury Chambers, 8th January, 1915.
SIR
I AM directed by the Lords Commissioners of His Majesty's Treasury to transmit to you herewith, for your information, copy of a Treasury minute, dated the 5th instant, extending the terms of reference to the Oversea Prize Disposal Committee, and of a letter dated the 5th instant, which they caused to be addressed to the Chairman of the Committee.
Enclosure.
I am, &c.,
T. L. HEATH.
Treasury Chambers, 5th January, 1915. SIR,
I AM directed by the Lords Commissioners of His Majesty's Treasury to transmit the enclosed Treasury minute, dated 5th January, 1915, relative to a temporary extension of the functions of the Oversea Prize Disposal Committee.
On a general review of the position of detained ships it may be necessary at a later date to modify the terms of the minute.
I am, &c.,
Vice-Admiral Sir E. Slade.
TREASURY MInute, dated 5th January, 1915.
T. L. HEATH,
My lords have before them the first report of the Oversea Prize Disposal Committee, and a letter, dated the 17th ultimo, from the Board of Trade suggesting that in view of the deficiency of tonnage it would be desirable to charter enemy ships detained in this country in the interests of British commerce.
My lords are pleased to direct that the Oversea Prize Disposal Committee may take the necessary steps for chartering for use in British commerce such enemy ships detained in this country as may be required for the purpose.
112
No. 2.
SECOND INTERIM REPORT OF THE OVERSEA PRIZE DISPOSAL COMMITTEE.
THE Committee appointed by Treasury minute of 11th November, 1914, "to report in what classes of case it is expedient that prize ships captured or detained at ports outside the United Kingdom should be moved for sale or disposal to other ports, or should be chartered for purposes of trade. and to make the necessary arrangements in such cases as are remitted to them by the departments concerned in the administration of the territories where the prize ships are detained," and empowered by Treasury minute of 5th January, 1915, to take the necessary steps for chartering for use in British commerce such enemy ships detained in this country as may be required for the purpose," beg to submit the following report upon the additional part of their reference.
APPENDIX A.-REPORTS.
195
The conditions in the coal trade of London having become very critical, the Committee was requested to investigate the question and to endeavour to ease the situation by bringing into use the detained enemy vessels that were to be found at certain ports around the United Kingdom.
and
The Committee first interviewed representatives from the various gas electric light companies, the London goal trade, and the contractors supplying that trade. From the statements made, it was evident that unless something was done promptly some of the establishments supplying light and power to the metropolis would have to be shut down in from three weeks' to a month's time. Attached is a table prepared by the Board of Trade, showing the actual state of the stocks at the present time.
There appear to be two main difficulties that are to a great extent causing the trouble; the first is the shortage of trucks and congestion on the railways, and the With the second is the shortage of tonnage and congestion in the Port of London. first we have nothing to do, but we consider that a great deal may be done to ease the situation as regards the second. The requirements of London at the present time are 122,000 tons of coal a week for the gas and electric light companies, the greater part of which is sea-borne. This amount will enable the companies to keep going without drawing on their reserves, for they are in fact only receiving about half of it, if as much.
There are some thirty enemy steamships detained in the United Kingdom that may be suitable for carrying coal, and if we can bring them all into use it may be possible to increase the present supply by about 30,000 to 35,000 tons a week, pro- viding the conditions for discharge in London get no worse. This should provide for about a half of the present shortage, and so enable the companies just to keep going until the longer days and smaller demand for light decrease the expenditure to such an extent as to stop the call on the reserves.
There does not appear to be any other possible method of increasing the ton- nage available for this service, as there is no prospect of any colliers being released by the Admiralty in the immediate future, and, in consequence of the delays in the settlement of accounts and other causes, the tendency is for owners to send their The ships out of the United Kingdom so as to avoid their being requisitioned. demands of the Admiralty are rather more likely to increase in the future than to decrease, and therefore it seems essential that advantage should be taken of these vessels lying idle to bring them into work as quickly as possible in order to minimize the danger of a London coal famine.
The bulk of the chartering work in the London coal trade is done on the New- castle Exchange, and is a highly specialized business. It was considered, there- fore, to be desirable to obtain the view of some of the Newcastle shipbrokers on the question, and in consequence Messrs. Witherington and Everett, and Mr. E. R. Newbigin, were invited to send representatives to London. Mr. Harry P. Everett and Mr. E. R. Newbigin attended, and were interviewed by the Chairman, Mr. Roper, and Mr. Holt, on behalf of the Committee. After discussion of various possible schemes, it was decided to recommend that the steamers should be brought into use as quickly as possible, and run, under the management of experienced brokers and shipowners who are familiar with this particular trade, for Govern- ment account. The Government would thus be responsible for all expenses, and would take all earnings and freights.
The ships would be requisitioned by the Admiralty and registered by them as required. They would be surveyed, docked, and cleaned, and stored and manned by the managers with as much expedition as possible, and then offered for charter on the Newcastle Exchange in the customary manner of the trade. Several alterna- tive schemes were considered to ensure that each contractor should get his fair share of the tonnage offered without having to compete against the others, but it was not considered practicable to adopt any course but that of obtaining offers in the open market.
Instructions would be given to the brokers that no offer should be taken except for the coal trade in the United Kingdom, preference being given to the London trade, and they would be told to endeavour to distribute the vessels as Since London coal is drawn fairly as possible to the different classes of consumers. mainly from the east coast, it is evident that most of the ships will be chartered for these ports, but a certain amount is wanted from South Wales, and, therefore, it is impossible to limit the whole of the ships to the east coast trade. Some of the south coast ports are also very badly off for coal, and it will be necessary to work them into the scheme as opportunity offers.
0 2
196
APPENDIX A.-REPORTS.
Messrs. Witherington and Everett and Mr. Newbigin are willing jointly to undertake this work as managers, and to run the whole scheme under our direction. The remuneration we would suggest is at the rate of £100 per annum for each vessel, plus 71 per cent. on the net profits, after the cost of repairs irrecoverable This, we understand, is in from insurers, salaries, and all expenses are paid. accordance with current arrangements in the trade.
The management expenses, to cover all office charges and clerical staff, will be defrayed by the managers.
It will be necessary to appoint a consulting marine engineer and surveyor and assistants to look after the vessels and machinery. The estimated cost of this staff will be at the rate of £1,000 a year.
The ships would be insured at Lloyds and with approved protecting and indemnity associations against all risks. This we consider necessary, as they are to be engaged in ordinary commercial business, and the risks and liabilities of such trading would We should have the advantage of the organization in settling thereby be covered. claims, which would lead to economy in working. On the other hand, we recom- mend that the Government take the liability for war risk without premium. They would under any circumstances be liable for 80 per cent of that risk if the ships were entered in a club, and it seems hardly worth while to pay the premium for the remaining 20 per cent.
We recommend that the accounting arrangements should be under the direc- tion of the Admiralty. It would be necessary to issue an imprest to the joint The joint managers managers to enable them to meet the preliminary expenses. should be instructed to furnish periodical accounts to this Committee, who would approve them for payment, subject to examination in detail by the Admiralty.
We estimate that a sum of £20,000 will be required for preliminary expenses, but it is anticipated that the whole of these will be fiquidated during about the first six weeks of running, and that a substantial profit will be earned by the steamers before the end of the war.
We therefore submit the following proposals for approval :-
1. To request the Admiralty to requisition and register as British vessels, when required, such detained enemy ships or prize ships as are avail-
able.
2. To engage Messrs. Witherington and Everett, and Mr. E. R. Newbigin,
as joint managers at the above-mentioned rate of remuneration.
3. To put these vessels into sea-going repair, and to charter them in the
home coasting trade, as may be required.
4. To request the Admiralty to undertake the responsibility for the account-
ing arrangements, and to issue an imprest not exceeding £20,000 to the joint managers to meet preliminary expenses.
5. To engage the necessary technical staff, who will be paid out of the earn-
ings of the ships.
6. To insure the ships against all risks including protection and indemnity
risks, but not against war risk.
·
E. J. W. SLADE,
G. L. BARSTOW,
W. J. EVANS,
T. H. HOLT,
H. W. MALKIN,
GARNHAM ROPER, C. B. TENNYSON, L. D. WAKELY.
R. A. WISEMAN,
Secretary.
12th January, 1915.