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 1153), 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, 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, Lieutenant Commander Axton T. Jones, USNR, in command.