USS Princess Matoika (ID-2290) - American Palestine Line

American Palestine Line

On 9 October 1924, the newly formed American Palestine Line announced that it had purchased President Arthur from the United States Shipping Board, with plans to inaugurate service between New York and Palestine the following March. The American Palestine Line was formed in 1924 for the purpose of providing direct passenger service from New York to Palestine and was reportedly the first steamship company owned and operated by Jews. The company had negotiated to purchase three ocean liners from the but was only able to purchase President Arthur. After refurbishing the liner, the company inaugurated service between New York and Palestine in March 1925, when President Arthur sailed on her maiden voyage. A crowd of 15,000 witnessed ceremonies that included songs, prayers, and speeches in English and Yiddish. The company claimed that President Arthur was the first ocean liner to fly the Zionist flag at sea, and the first ocean liner ever to have female officers.

The line had labor difficulties and financial difficulties throughout its existence. Rumors of a mutiny during President Arthur's first trip were reported in The New York Times, and several crew members got into an altercation with members of the Blackshirts, the Italian fascist paramilitary group, when the liner made an intermediary stop in Naples. On her second voyage, the ship's master-at-arms was killed by a fellow crew member. Financial difficulties included unpaid bills and resultant court actions, and accusations of fraud against company officers that were leveled in the press. In late 1925 the company was placed in the hands of a receiver, President Arthur—after a two-alarm fire in her forward cargo hold—ended up back in the hands of the, and the company's office furniture and fixtures were sold at auction in early 1926.