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ok 29th i 1 . . a as ee ee ; ek es oo & LA 46-2054 . ~ 78 negotiation was first entered into, but we secured a ~°. +> é Similar affidavit at the time the negotiation was finally completed and the moneys were paid over to us for our stock. . hoeget wey pene x -§ wa i 2 nae "We did more than this, We felt that in addition Se to legal conformance, we wanted to be sure that we ~ _. Se were absolutely sound from the standpoint of our eos national interests, inasmuch as both the directors and management of Pacific Tankers, Ine. looked with con- cern upon the possibility of American tankers falling By into the hands of foreign powers, be they either .. - .-- rai friendly or unfriendly. Therefore, Admiral A. F. carter, be president of Pacific Tankers, Inc., discussed the trans- Lob: ection with Admiral Smith, the Chairman of the Maritine #. 2° Commission, and secured from him unqualified approval ie of the transaction. In the several discussions, the fact a a that the Maritime Commission iiself had 801d ships to ae the United States Petroleum Carriers, Inc, was considered sad evidence of the Maritime Commissions's approval of our mae sale of the T-2 tankers. he , ah 2 "The United States Petroleum Carriers, Inc. desired a ie to acquire a corporation which had sufficient substance t. i to qualify as regards net worth and working capital, but “TE they did not wish to buy a corporation which had assets at in excess of the minimum. At the time of the transaction, > a Pacific Tankers, Inc, had accumulated a net worth con- “Ee SB8iderably in excess of the minimum. Therefore, a portion yep of the stock was retired, using earned surplus for this mies — - purpose, and as a result, the corporation was reduced in ups Size to approximately $2,000,000 of net worth. In other ag . words, the number of shares was decreased and then United rab gt States Petroleum Carriers, Inc. acquired all of the shares yh outstanding after the reduction. “ #4. a "Other assets of Pacific Tankers, Inc., such as the ia Navy Contract, certain residual activities of the then ... ee a dormait Industrial Equipment Co. were transferred, with e AE the approval of the Navy Department and the Maritime 33 Pome ee Commission, to Joshua Hendy Corporation. Details of this rae transfer were fully disclosed as is indicated by approvals issued by both the Navy and the Maritime Commission ey hte _ Suthorizing ° the respective transfers. see ot) Taser a ie Ha RSE: MAR 1 3 4 i i at ag i a Nn oe ee acs Nee Op? bg ch pe caepae Sate a ot armies *