◆ SpookStack

ye = cra —on—e _—— = = a ‘| | apeeee. | = i Plans One More ‘ i | Sessions, 0. P. Member fe May Boycott Meeting fe Lite . rR. r. The Howe Werchant Marine and Fisheries Gommittee pians ty hold dpe mote session in its ; inquiry into the dipping activi- . tles of Aristotle nassis. But|’ ‘" one member of ‘the committee: C ‘may declind t6 a¥tend. ; Thor C. Tollefsqn, Republican| : ‘of Washington, snid yesterday|; _jthat he would nét -participate in further sesgions {f they con- ‘tinued to deal with the Depart-| “ment of Justice's: handling of aj: case against the Greek shipping|: ‘operator. i - The inquiry, which has been|!' going on for some weeks, start-|* ed out as an investigation of a). contract between Victory Car-|’ riers, Inc., and the Government, | ~ for the construction of three! ‘supertankers,~ Pact to Build Ships Victory Carriers had agr : re hier ots e- to build the ships in return for permission to transfer a num- ber of old tankers and freight- ers to 2 forelgn flag, The ar-|* ' rangement came under the Mar-|* itime Administration's “trade out and build” program, zl f signed to stimulate ship con- struction in this country, * In most recent sessions, un- “der the questioning of Rep- resentative Herbert Zelenko, . Democrat of Manhattan, the _ committee has been investigat-|f _ing how the Department of] t Justice settled an old legal ac- stion against Mr, Onassis, ! | AA Oe Te” ae Mr. Tollefson said yesterday thft the questioning had shown nothing “out of the way'lin the ‘set lement of the case. we : Criticizes Inquiryy ee ee s + - "had to be citizens, but the Gov- eerer ys | #*I don’t want to waste dny ore of my time at it,” he said. ‘the old case had nothing] to with the current issu -performance of Victory Carriers i ynder its trade out and build ,contract,* ‘ Victory Carriers was set up under a trust arrangement in behalf of two minor Onassis children, The trust was estab- jished as a guarantee that the ships Involved would be con- trolled by United States cit-|_ izens, The company is headed by citizens, the stock is held by the Grace National Bank, and 4 Mr, Onassis has no voice in its affairs. ~ The veasels turned over te jy Victory Carriers were ships pur- “ chased years earlier by other _. Onassis companies from th ; United States Government. Negotiated Settlement ‘Under the law the purchasers “ernment questioned the citizen- _ ship of the buyers and brought * both criminal and civil actions. * ‘They were settled through nego-| tation, with the terms includ-! ing approved citizenship con-! trol, The trust agreement car- ;. Yied out these settlement terms. ope” t In time the trust company: ‘decided on the trade out ancl “build formula, and pledged it- self to construct one tanker of| 106,000 tons and two of 46,000 tons each. ~ . Early this year the company hotified the Maritime Adminis- ’ tration that it might not be able _ to carry out the construction _vdecause of a depressed uetion| ., market, ; Ol Curbs Are Cited , Y The Government's restrictions! ; on oil imports were cited as a. factor. The House committee ; inquiry then followed, although’ none of the three construction. contracts has actually been can-| celed. i On Wednesday, Mr. pee accused the Greek sipping y cperator of “fraud” by “fool ¥the committee into folding ft ite . inquiry. - Yesterday Mr. Tollefson fe nied this. “Nobody fooled the committee into anything,” he said. “We ; were fully aware of what was going on, We knew the trust i company had requested the i Maritime Administration to re- negotiate the contract to build i because the tanker market had ropped, 5 “We decided tg hold the hedr- GY & g. But the subject of ne earing has nothing to do with he old Department of Justice ttlement.’ tn eee | =x es 22, = Days CLIPPING Fach thu ey. RNs Tits ____ DITION LATE Bore TON g kid 1958 Y CARRIERS, InC., BANK OF NEW y YORK, TRUSTEE, AND ALEXANDER S, ONASSIS CORF. MISC.- CIVIL SUIT BUFILE 62- RECORDED G sar ‘AUG 25 1958