Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-02-14
Publisher viii Try to Thwart
Plans of Shipping Board
to Dispose of 80 Former
German Liners,
MATTER is BITTERLY
DEBATED IN SENATE
Claim Is That Vessels Worth
5000 a Ton Are to Be
Sold to Private Interests
For About $50 a Ton,

Washington, Feb. 13.-Vigorous
opposition TO shipping board plans
for the sale of thirty former Ger-
man passenger liners, broke out in
the senate today, expressed In
| sharply critical debate and pre-
sentation Of several resolutions
proposing to block the action.
While the debate was in progress
other developments came thick and
fast.
John r. Payne, chairman of the
board, appeared before the senate
commerce committee which
through its chairman, Senator
Jones, of Washington, reported to
the senate that no immediate act
ion was necessary. No action ac-
cordingly was taken.
At the White House there was
made public a letter concerning the
proposed sale sent by Mr.. Payne TO
the president, which remarked on
the vicious but characteristic at
tack against the shipping board
emanating from a certain Quarter
regarding the sale of the ex-Ger-
man passenger ships"
In the District OF Columbia SUI
preme court, William Randolph
Hearst, Of New York, appearing az
a taxpayer filed an application for
an Injunction TO prevent the pro-
posed sale of the ships at auction
Monday. The court iss;ied an
order requiring the board TO show
cause Monday why temporary in
junction should not be issued.
Chairman Payne assured tho
senate committee, and his assur-
anees were repeated to the fun
senate that the board would merely
receive bids Monday for the vessels
and would report the results to the
senate before acting. He met
charges that the sale OF the ves-
sells to single purchaser for $2S.-
O00,0 was intended with flat
denial. but repeated his own con-
clusion that the sale of the ships
to American private owners at the
present time was to the advantage
Of the government
Senator Ashurst, democrat, OF
Arizona, opened the debate and
later brought it to head by offer
ing concurrent resolution direct
ing the shipping board not to sell
the ships except through regular
bidding after three months ad-
vertising. He and the senator's
supporting his resolution declared
the boards action would result In
the sale OF vessels worth 5000 ton
and more to private interests for
around $50 a ton. The possibility,
that they might go to English own
ership was strongly intimated by
opponents of the immediate sale.
Before the committee Mr.. Payne
faced prolonged examination SEN
ators cited the price offered the
board for the Leviathau, the 54,-
000-ton leader OF the ex-German
fleet, which was S4,000,000. This
was compared with an original
construction cost for the vessel Of
$10,000,000 and present cost OF
duplicating her in American yards
of 100000 or S30,000,000. This
, latter figure was furnished by
Homer S. Ferguson, president Of
the United States Chamber of Com
merce, shipyard head, who was
present. Chairman Payne likewise
furnished the estimates of ship
ping board experts, that 1t would
cost $7,5000,000 TO recondition the
vessel, from troop transport to
/ her former capacity of passenger
carrier. Only one conccra wanted
to buy the Leviathan, .tr. Payne
said, but from two to five bids
We're received on other vessels of
the fleet.
Chairman Payne. of the shipping
board, announced that the appli-
! cation for an injunction would not
prevent the offering of the ships
for sale. He said tenders would
| be received Monday, as planned,
but that final action on them would
| be deferred until the injunction
proceedings had been disposed of
| finally.
Chairman Payne's announcement
| follows:
The board will, of course, pay
| the utmost respect to any action of
the court. Since the law has placed
the power to sell ships in the board,
it is probable that when the court
! is placed in possession of the facts,
the order to show cause will be set
aside.
Il have not seen the complaint
which Mr.. Hearst has filed and can
of course, make no comment. 1t
would be public calamity not to
be able to sell the ships after the
wide publicity has been given
to the proposed sale. The board
will give careful consideration to
the whole matter and act as the
circumstances may require. My
recommendation will be that we
proceed with the auction and ten
tatively receive the highest bids
possible and then defer action as to
their acceptance until the matter
is disposed of by the court
Mr.. Hearst, through his attor-
neys, former Governor Folk of Mis-
souri,, former Senator Bailey of
Texas, former Acting Judge Advo-
cate General Ansell. and William A.
Deford told the court that irrep-
arabic injury would be done the
United States and its people and
taxpayers if the sale were allowed
to proceed next Monday.
He charged that unless the court
interviewed, vessels worth more
than 500, 0,0oo. 900 would be sold for
much smaller figure.