◆ SpookStack

wl, NY 46-2507 | . and deprociation could be ascertained by vessel from USPC's books. BECKER advised that USPC's financing consisted of a sories of loans, some of which wore retired from the proceeds of subsequent loans. Ho steted that the installments on tho original mortgage loans of USPels initial four tankers ware retired through subsequent borrowinge BECKER maintained that it would be an extensive project to attempt to dotermine the exact interest expense applicable to th: purchsse of each of USPC's seven tankerSe BECKER elso stated that tho extensive investments in and advances to affiliates by USPC were accomplished through borrowing funds. It as suggested to Mr. BECKER that the interest expense applicable to ndvances to and investments in affiliates by USPC during 198 through 1951 be computed at h%, the rate under mortgage loans by USPC, & and that the remaining interest expense be considercd epplicnblo to the operation of USPC's seven tankers, . BECKER ‘agrucd that this method would present a fair . allocation of interest Cxpense,. The forcgoing method of . allocating interest oxpense was therefore used. Interest relative to the tankers wes divided equally. Interest income from affiliates was upplied against tho interest expense computed as pertrining to affiliate financing. r i 4 : oe ok a ee In refersence to general overhead; that is, administra- tive and gencral oxpense and other miscellancous expenses and income, BECKER expressed the opinion that a relatively small amount of such expensus were applicable to bareboat operations Hoe stated that little oxpense is incurred by the owner under bureboat chartcrs, cs the chartercr has full responsibility for operating tho boat und paying exponses,. Aaa Rear eid S BECKER suggested that a fixod overhead expense alloca- tion of $15,000,000 per barcboat chartor per year would be a fair distribution of such expenses. In computing the oporating results above such an ellocation was mide to the four bareboated tankers and the remaining administrative and general expense and other miscellancous exponsus and income were allocated to the- ree - - Vt $e wy ee ee eee Nene ee eg ee 0 eer tal gg tr en pte d- efi a