The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-02-13
Hearst Would Enjoin
Shipping Board
REASONS FOR SALE
OF GERMAN SHIPS

Washington, Feb. 13.-tA, PO-
While the debate was proceeding in
the senate, Representative Mead
demo "rat, OF New York, made public
a letter from Chairman Payne. of
the shipping board, explaining the
reasons for the sale of the ships. If
was learned Chairman Payne had
written similar letter to President
Wilson. Answering your inquiry
regarding sale of eX-German passen-
| ger ships, the reasons were princi-
| pally these:
Il. 1t is the opinion of the shin
| ping board that we will probably not
| be able to operate passenger shins
under prohibition successfully in
competition with foreign ships which
sell liquor. The reason why is: In
December we fitted out the Moccasin
TO sail to South America, Her berths
We're all sold. When l announced
that In view of the policy of congress
OF the country government ships
would not be permitted to sell linuar
one half OF the sailings were imme
dlately Cancelled.
-. We advertised the eX- German
SHIPS and for twenty were Offered
S20,0OO,OOO We had careful calcu-
iatlon made as to tho cost of recon-
dltoning these ships for passenger
service and reached the sum of S57.-
Voo'o00. In view of the present situa-
tlon, 1T did not seem to us that we
were justified in mourning so large
an expense.
3' Conditions in the SHINING
world arc such that it is our convIc7
ton there will never be a time when
we can sell ships to better advantape
than now, and since it is our con-
Vlction that the ships can be success
fully operated in private ownership
we believe the sale should be made
l. Two conditions are insisted
upon by the board: (a) That the
Shlps snail remain under the Ameri-
can nag; CD that they arc to be
sailed IN the routes indicated by the
shlpplng board. This, we believe. win
adequately protect the United States"
Tells OF Bids.
Appearing before the commerce.
committee later, Mr.. Payne reiterated
ms previous statements as to the
reason thati prompted the board to
uecide upon. sale of the ships. but
Wlthheld certain figures of possible
Valhe TO prospective buyers. Telling
OIL the dds received when the orig
MAJ oHcf for sale was made. he said
one ofter of $2S,000, 600 for the entire
meet mad been received, but the board
had decided not to sell "aH the sbins
III In one lot and that it would ACCEPT
pids tor single. ships only after
careful, consideration" He told ar
the estimate of the board exnerts
mat 1t would cost $4,000, 900 to nnt
the thirty ships in shape for passen.
go service anu also told of estimates
on replacements for twenty of tho
shlps, but withheld these figures,
think" he said, that the bids
represent, on the whole, the fair yalne |
of the ships"
Only to Americans.
Mr. Payne also reiterated +bo
boards purpose to sell only to Amer.
leaas t ana for operation under the
American flag. '"o
We had already selected five sbins
lof the South American route and
aIoeated them to the Munson line "
he said ''iie'
Mr., Payne said the bid price on tbe
heVlathan, largest of the fleet. was
about $4,000,000." Senator Nickel
iar commented that this was less
'han an So per cent. of its value"
WHAT'S the cost of reconditiorirr
asked. 'i'''' 'oies
About $500, ,Ooo," Mr.. PAYNE re-
pied THE vessel would cost st0-
00d,\00 now" ~o'' $1V'