The SS Lotta was one of five steamers the Chilean government commandeered from Denmark.  After the Chileans agreed to pay for the use and any damage to these ships, they renamed SS Lotta the Tolten and used her to transport nitrates to the United States and tires, iron, and steel back to Chile. <P>Chile was one of several South American republics not to declare war on Germany.  In return, safe passage was promised Chilean ships in their trade with the United States, if they did not travel with Allied convoys or blacked out. <P>A U.S. Naval Patrol Services boat stopped the Tolten along the New Jersey coast and ordered her lights out.  A short time later she was torpedoed by the German submarine U-404 and sank within six minutes.  The only survivor was thrown clear of the ship and picked up after clinging to a life raft for 12 hours.