CAPTURED SHIPS

Dominion, Volume 8, Issue 2406, 11 March 1915, Page 6

CAPTURED SHIPS

HOW THEY ARE SOLD

THE ADMIRALTY'S CONDITIONS

It was recently mentioned in our columns that 1 certain conditions had been devised in connection with the purchase of prize steamers, whereby payment could be made by instalments, so long as the vessels were , not purchased by enemies. A draft of these regulations, which were issued to all selling brokers in the United Kingdom by the Admiralty Marshal, has been received, and the'following are the main clauses:— The Buyer's Option. Clause 8 reads as follows:— Part of the purchase money may, at the buyer's option, be left either on mortgage of the vessel or on banker's or other guarantee approved by the Admiralty Marshal. The part so left must not exceed 75 per cent, of the total purchase money. The part so left shall carry interest at the rate of £4 per ■ cent, per annum from the day of the. present salo,', payable half-yearly on the first day of January and the first day of July, and the principal shall be payable by- three equal annual instalments, of whioh the ' first shall be paid at the expiration of, one year from the date of delivery of the vessel to the buyer, bnt with 'liberty for the bnyer : to pay off earlier if he thinks fit. Any mortgage given undor this condition shall be in the form of a printed draft, -which will be produced at the sale, and may be inspected before the sale at the office of the auctioneers or in such varied form | (if any) as may be approved by the Admiralty Marshal. Any guarantee given under this condition shall be in such form as the Admiralty Marshal- shall require, and the guarantors, whether bankers or others, must be approved by the Admiralty Marshal. Essence of the Contract. . Clause 9 prohibits sales to enemies or foreigners. The buyer must not be an enemy or. a foreigner or foreign corporation or corporation under foreign control, and neither the vessel nor any share or interest therein can be purchased on behalf of, in trust for, for the bonefit of, or so as in any way to be under the control of an enemy or a foreigner, foreign, corporation, or corporation under, foreign control, and tho buyer, or, if. the buyer is a' corporation, some principal officer of such corporation shall, before completion, make and deliver to the Admiralty Marshal a. statutory declaration giving effect' to this stipulation.' Printed forms of the declarations required (one adapted to the case of an individual buyer and the other adapted to the case of the buyer being a corporation) will be produced at the sale, and may be inspected before the sale at the office of the auctioneers. Compliance with-this condition is of the essence of this contract. Restriction as to Sale. Clause 10 is to the following effect:— The buyer, with a- surety or sureties to be approved by the Admiralty Marshal, will also be required on or before completion to enter into, a bond for a sum equal to the amount of the purchase money or such less sum (if any) as_ the said Admiralty Marshal, may think fit to accept, the condition of the bond being that if during the continuance of the present war and a period of five years from the termination of .such war neither the in nor the beneficial ownership of the said ship or any share therein shall be transferred or mortgaged to or be owned by or be held in trust for or on behalf of, for the benefit of any - enemy, foreigner, foreign corparatioi, or "corporation under foreign control, either alone or jointly with another or others, , then'the bond shall be void but otherwise shall remain in full force. 1 . The ; Admiralty Marshal may dispense with any surety or sureties if in the case of any particular purchaser he shall think fit to do so. A printed copy of the form of bond required will be produced at the sale and may be inspected before the sale at the office of the auctioneers. A Definition Clause. Clause 11 defines the language used in the contract as follows: — For the purposes of and in these conditions: — "Enemy" has the same meaning as it has in the Trading with the Enemy Proclamation No. 2.

"Foreigner" means , any person who is not a British subject resident or carrying on business in some part of His Majesty's dominions. ' 1

"Foreign Corporation" means any corporation other than a corporation established under and' subject to thelaws .of some part of His Majesty's dominions,' and 'having , its principal place of business in those dominions.' "Corporation under foreign control" includes:—

(a) A corporation of which the majority of the directors or persons occupying the position of directors, by whatever name called, are foreigners. (b) A corporation, shareholders in which holding shares or stock conferring a majority of the votes are foreigners, or foreign corporations, or persons who hold directly or indirectly for foreigners or foreign corporations. (c) A corporation which is by any other means, whether of a ,like or a different character, in fact under the control of foreigners or foreign corporations. (d) A corporation, the executive whereof is a'.corporation within (a), (b), or (c).