Republican farmer., 1920-02-20
CHAIRMAN WANTS AUTHORITY ID RENEW
 SALE NEGOTIATIONS
is of the Opinion That Much Higher Offers Can Be Secured Terms of the Original Agreement Still to Re main in Force.

Washington, Feb. 18-Re- jection of all bids received for the 30 former German passen- ger ships offered for sale by shipping board was recom- mended to the Senate Com merce Committee today by Chairman Payne of the board, who asked authority to renew negotiations for sale of the vessels for operation under the American flag.
 The boards recommendation was contained in the following resolution submitted to the committee:
 "Besolved that with the report submitting the bids to the senate and house committees the board states that it proposes to take the following action:
 The board believes that in view of the uncertainty as to whether the sales of the ex-Gerlnan ships would
 
 are much less than can be obtained by further negotiations.
 Resolved, that the bids on the goth of January in response to the advertisement for sealed bids and those received at the public auction held on the 18th and 17th, instant, be the same and are hereby rejected and that the checks of the bidders be returned.
 "Resolved, Slrtber, that the sale division be and it is hereby instructed to negotiate fur: er for the sale of the said exGerlnan passenger ships on the terms heretofore announced in the original advertisement:
 "A-That they be sold to American firms, corporations or persons for use under the American flag.
 "B-And offered with reference to the routes CT services established by the board and that each neogiation, when tf5A highest price possible is reached, be reported to the board for it's action.''
 The resolution was embodied in a prepared statement which MT. Payne read to the committee. He recalled that the beard had sold 1S8 ships 'irf accord witIl it's policy to dispose of the fleet to American citizens for operation under the American flag and that IS former German cargo vessels weIo included in this number. The price received was $93 545. .947.
 Chairman Payne said if the con- gress desired to change this policy to public ownership of ships the pass enger liners should not be sold and congress should direct the board tc spend the $75,Goe,O ,O00 estimated as necessary to convert them from troop to passenger vessels.
 Ut should be understood" he said, that the ships, whether owned by the government or by private capital must in either case be operated by the shipping companies which are bidding for the ships. The government has not adequate organization for the di- rect operation of ships.
 If the government continues to be the owner, 1t must pay the operators a fixed fee and a commission upon receipts and take whatever profit remains, or if no profit remains, must bear all the losses"
 The chairman went on to say thai in accord with the joint resolution of Congress under which the ships were taken over naval board had ap- praised the craft and that the prices at which the board could sell no+s were substantially in excess of the appraised value.
 MT. Payne said passenger ship! were scarce now and building price high. but that these conditions migh change and the value of the ships bt corresponding1y lessened.
 ''If we proceed to recondition th' ships, making them fit for passenge use." continued the chairman, "it vii take from six to 12 months to pu them into service. Our conviction is that we will not hereafter be abl to sell the ships for the cost of re conditioning plus the price at whicl we now can sell"
 Questioned as to the possibility O the vessels ultimately being sold t foreign interests, Chairman Payn told the committee the ships could no be transferred from under the Ameri can flag without permission from tn Shipping Board.
 Vessels sold to private operator for service in lines designated by tn board could not finally and inaltera billy be held in those lines withou the chairman said.
 Asked about the ownership of tn International Mercantile Marine Chairman Payne declared that inves tigation " tne bIerd had shown tn company to be 100 per cent. Ameri can.
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