American Palestine Line

American Palestine Line

Company type	Private
Industry	Shipping, Passenger transport
Founded	1924
Founder	Jacob S. Strahl
Defunct	1926
Fate	Entered receivership; assets sold at auction; ship returned to USSB
Headquarters	New York City , United States
Area served	New York to Mandatory Palestine (Haifa)
Key people	Jacob S. Strahl (President)
Products	Passenger voyages, cargo transport

The American Palestine Line was established in 1924 in the United States as a steamship enterprise designed to offer direct passenger voyages between New York and Mandatory Palestine. It is believed to be the inaugural steamship company owned and managed by Jewish businesspeople. The firm entered negotiations with the United States Shipping Board to acquire three ocean liners but ultimately secured only one vessel, , which was formerly a North German Lloyd ship named Princess Alice before being seized during World War I. After undergoing renovations, the line commenced operations in March 1925 with the maiden journey of President Arthur, an event attended by approximately 15,000 spectators. The company asserted that it was the first to fly the Zionist flag on an ocean liner and to employ women as officers.

During its short operational period, the company encountered multiple labor disputes and financial difficulties. On President Arthur’s initial voyage in 1925, there were allegations of mutiny, and confrontations occurred between crew members and Italian fascist Blackshirts during a stopover in Naples. On the vessel’s second trip, a crew member fatally attacked the ship's master-at-arms. Financial woes included outstanding debts, legal proceedings, and accusations of fraud against company officials. By late 1925, the firm entered receivership; after a significant fire aboard President Arthur, the ship was returned to the USSB, and company properties were sold at auction in early 1926.

Background

Known as the first steamship company under Jewish ownership, the American Palestine Line sought to establish direct passenger routes from New York to Palestine. The company negotiated with the United States Shipping Board (USSB) to purchase three former German liners: the sister ships and , along with the smaller . On October 9, 1924, Jacob S. Strahl, a New York Supreme Court justice and company president, announced acquiring President Arthur with intentions to launch service by March. Although acquisitions of President Fillmore and Mount Clay were also publicized at that time, these transactions never came to fruition.

The ship

SS President Arthur originally sailed as Kiautschou, a launched in 1900 for the Hamburg America Line servicing Far East passenger and mail routes. After Hamburg America ceased operating this service, the vessel transferred to North German Lloyd and was renamed Princess Alice, operating on North Atlantic and Far East lines. At the outbreak of World War I, it was interned in U.S.-controlled Philippines waters and subsequently seized by the U.S. after entering the war. Renamed Princess Matoika, it functioned as a transport ship for both U.S. Navy and Army forces during wartime. Following the conflict, it resumed civilian passenger service under the name President Arthur, honoring Chester A. Arthur, the 21st President of the United States, until immigration restrictions imposed in the early 1920s led to its layup in Baltimore by late 1923.

The American Palestine Line purchased the vessel for reportedly $60,000 in cash with obligations to refurbish it within six months. Planned alterations included reducing passenger accommodations to 675 while expanding cargo capacity to . Renovations introduced features such as swimming pools, a game room, gymnasium, lecture hall, social hall, and a motion picture theater. Although there were initial plans to rename it White Palace, this change was never carried out.

Following refurbishment at Morse Dry Dock & Repair Company in Brooklyn, President Arthur completed a trial cruise on March 7, 1925. The ship achieved a maximum speed of , surpassing expectations of , which American Palestine executives believed would reduce travel time to Palestine by two or three days. After this test run, the vessel docked at West Houston Street ahead of its inaugural voyage five days later.

The acquisition inspired Jewish songwriter Solomon Small to compose "President Arthur's Zion Ship," celebrating its importance for Jewish migration and commercial development during that era.

Commencement of Service

On March 12, 1925, a large crowd assembled at the pier named after President Arthur to witness its inaugural journey. The launch ceremony was broadcast live by New York’s municipal radio station, WNYC. Approximately 15,000 people attended the event, which included speeches from notable personalities such as Orthodox Rabbi Moses S. Margolies, Jerusalem's Vice Mayor David Yellin, and Rabbi Stephen Samuel Wise. Jacob S. Strahl, president of the American Palestine Line, emphasized that this voyage represented the first time in over two millennia that the "flag of Judea" had sailed on international waters.

Decorated with Stars of David emblazoned on its funnels, the vessel departed nearly an hour behind schedule, bound for Haifa with an intermediate stop in Naples. The ship carried close to 400 passengers from North America, predominantly tourists and delegates attending the dedication ceremony for the Hebrew University of Jerusalem at Mount Scopus, officiated by former British Foreign Secretary Arthur Balfour. In addition to passengers, the liner transported agricultural machinery intended to aid farming initiatives in Palestine. Significantly, Bernice P. Schmitt and Rebecca Adelman were aboard as reportedly the first women to serve as officers on an ocean liner.

Passenger Herman Hirsch chronicled the journey, noting religious observances such as a Torah dedication and services conducted by Rabbi Aaron M. Ashinsky. The ship was outfitted with a robust radio system that allowed for frequent communication updates throughout the voyage. President Arthur adeptly managed adverse weather conditions, including a storm near Gibraltar and an encounter with a waterspout.

When arriving at Haifa on March 31—almost a week behind schedule—the ship was welcomed by delegations representing Jerusalem, Jaffa, and Tel Aviv. Passengers quickly proceeded to Jerusalem to attend the Hebrew University dedication event. Departing Haifa on April 4, the vessel embarked on a ten-day Mediterranean cruise before setting sail back to the United States from Haifa on April 17.

While docked in Naples on April 23, confrontations erupted between crew members and Italian fascist Blackshirts, leading to injuries and arrests. After additional stops such as Halifax, President Arthur returned to New York on May 8 carrying cargo that included onions from Alexandria and lemons from Palermo. Despite limited public attendance due to the Jewish sabbath, the ship’s arrival was marked by a significant police presence amid rumors of mutiny; consequently, nearly all crew members were replaced prior to its next departure.

On May 12, President Arthur commenced its second voyage to Palestine with passengers including Hemda Ben-Yahuda, widow of Hebrew language pioneer Eliezer Ben-Yehuda. During this trip, a fatal incident occurred between a steward and the ship’s master-at-arms in Naples; although the steward was arrested, he was subsequently acquitted. Following its return to New York, the liner departed once more for Haifa on July 19 for what would be its final journey under the American Palestine Line banner.

Decline

By this point, the company acknowledged persistent undercapitalization and was experiencing significant financial strain. On July 10, it posted an indemnity bond to prevent seizure of President Arthur over a contested invoice related to the vessel’s 1924 refurbishment. The following month saw the ship pledged as collateral securing a $100,000 loan from a Bronx-based bank; however, this measure proved inadequate. On September 11, American Palestine Line entered receivership following litigation initiated by creditors, with federal judge Thomas D. Thacher of the U.S. District Court overseeing proceedings.

Just over a week later, President Arthur, moored at West 34th Street, suffered a two-alarm fire in its forward cargo hold that required intervention from both municipal firefighters and the New York City fireboat James Duane. In December, allegations emerged accusing the company of fraudulent financial practices linked to earlier transactions; these claims were denied by company representatives. Ultimately, control of President Arthur reverted to the USSB, and in early March 1926, office furniture and other assets belonging to the company were sold at auction by the court-appointed receiver.

External links

• Cover of the sheet music for "President Arthur's Zion Ship"