Evening star., 1920-02-16
PRESIDENT TO TELL
SENATORS THERE IS
NO SHIP SALE PACT
Reply to Brandegee ResoIu-
ton to Be Emphatic.
White House States.
SHIPPING BOARD HOLDING
PUBLIC AUCTION FOR BIDS

Justice Bailey to Give Decision
Friday in Suit to Stop Sale of
Former German Liners.
The shipping Hoard was requested
today by the senate to defer sale Of
been submitted until some definite
senate action Is taken on the subject.
Adoption of the resolution which
was offered by Senator McKelIar came
after II had been modified by the
democratic leader. Senator Hitchcock,
to meet objections that it constituted
a rejection on the board.
| Senator Hitchcock said he symps-
thized with the "unwisdOm of selling
these ships in these precipitate ways"
but believed one reason why the bids
were ''alarmingly low" was because
there was doubt whether the United
states could establish a clear title 10
the property. Until the peace treay
was ratified, he said. n situation ex-
listed which some authorities believed
would permit the libeling of the ves-
sels III they were taken into Europeaa
ports. IS.
President Wilson will inform the
| Senate emphatically that there is mo
basis for the report of a secret agree
ment between the shipping board and
the British interests for the sale of the
| thirty former German passenger
liners, - was announced today a
the White House.
/ The Presidents message will be in
reply to the resolution of Senator
Brandegee. republican, Connecticut.
asking for information regarding the
report. The resolution was adopted
by the Senate last Saturday
Receives Bids Despite Protests.
Despite protests voiced in the SEN
ate and elsewhere, and court proceed
| ings designed to stay the action, the
Shipping Board today received bids
| for the ships.
When the ships first were offered by
! groups in the services in which the
Board had planned originally to 'op-
! crate them, no bids were received.
but spirited bidding developed later
| for individual vessels or SelecteQ
groups to run in specified services.
Justice Bailey Reserves Deeisisn.
/ While the bidding was in progress
! these developments came:
Associate Justice Bailey of the Dis
/ trict Supreme Court took under ad-
/ yisement q decision on the applica-
! ton of William Randolph Hearst OF
New York for an injunction to stop
the sale of the vessels. He will give
! decision Friday
! Chairman Payne i'm Court.
Chairman Payne of the Shipping
| Board. was unable to conduct the auc-
/ ton. as he had been summoned to ap-
pear at the proceedings brought by
Mr.. Hearst.
In opening the auction. Mr.. Scott
read a memorandum from Chairman
Payne. which said the highest bids
would have to be approved by the
Senate commerce committee and the
House merchant marine COMMITTEES
and that acceptance of any bids would
depend upon the outcome of the In
junction proceedings in the district
court.
The memorandum said these pro-
ceedings were expected TO be conclud-
ed within two or three days. but that
in any event checks received with the
bids would be returned by Saturday il
the sales were not consummated
Must Fly American Flag.
Commissioner Scott said the terms
OF the sale would be arranged to suit
the convenience of the board and the
prospective purchasers and that all
ships sold must be operated under the
American flag.
Among the shipping men present
were p A. s. Franklin of the Inter-
national Mercantile Marine; George w.
Goethals. the American snip and COM
merce Company: A. V. Moore of the
Moore and Mccormack Company. and
Philip Deronde of the Oriental Navi-
cation Company
The first vessels offered were tho
Black Arrow, the Amphion and tpe
Philippines, composing the group OF
the Black sea service.
One bid for one of the Black sea
feet was received. 1t was 100000
for the Black Arrow and was made by
the Oriental Navigation Company with
the understanding that the vessal
would be retained in the Black sea
service.
Various Bids Are Made.
p A. s. Franklin, president of the
International Mercantile Marine. Of
fered a conditional bid of s14,050.0d0
for nine vessels for service to the
United Kingdom and northern Euro
pean ports.
The vessels covered by the bid were
the Leviathan, George Washington.
America, President Grant. Nansemond,
Antigone Pocahontas. Princess Ma
toika and Gallao. The offer was con-
ditional upon an agreement by tho
Shipping Board not to enter into com
petition with these vessels in this
service
Moore and Mccormack offered
S4,5O0,O00 for five vessels for the
South American service, and the Mum
son Steamship Line conditional bid.
approx ina ting s3.SsO,250, for the same
vessels. the Martha Washington,
Aeolus Huron, Princess Matoika and
the Pocahontas.
George w. Goethals. American Ship
and Commerce Corporation, offered
1O.00O 900 for six vessels for the
Hamburg and Bremen service. the bid
President Franklin of the Interna-
tional Mercantile Marine. The vessels
are the George Washington. Martha
Washington, America. President Grant.
Nansemond and Callao. -
bidding Is Spirited.
Sharp bidding on these six vessels
followed between Gen. Goethals and
Mr. Franklin. the offers going up in
Franklins bid reaching $11,600, 0,0o0.-s
Commissioner Scott announced the
top offers received by the board In
the proposals offered a week ago, ali
of which We're rejected. Among the
offers were: For the LeviathaA
81 ,00O, 900; for the Mount Vernon,
$3.50, 900; for the Nansemond. $500, 900:
for the George Washington. S3.05a,- 8
600; Martha Washington, $2,lso,0ee: !
Won Steuben. s727.620: America. t2,-
100000; President Grant. S2,250.0e0: