She was laid down on 10 December 1942, as James Barnes, a Maritime Commission Type C2-S-B1 hull, under Maritime Commission contract (MC hull 1157), at Moore Dry Dock Company, in Oakland, California. She was launched on 17 February 1943, renamed Algol on 30 August 1943, and placed in reduced commission on 27 November 1943 for transit to Willamette Shipyard in Portland, Oregon, for completion as an attack cargo ship. She was decommissioned at Portland on 3 December 1943, and recommissioned USS Algol (AKA-54) on 21 July 1944 at Willamette Shipyard, Lt. Comdr. Axton T. Jones, USNR, in command.
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