The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-02-20
FIX SHIP BOND
ON SATURDAY
Counsel for Hearst and Board
Hold Conference With
Justice Bailey.

Justice Bailey, Of the District Su-
preme Court, who yesterday granted
a temporary injunction in the suit OF
William Randolph Hearst against
the Shipping Board and its officers,
enjoining them from selling the thir-
ty seized German ships, tomorrow
will fix bond pending further Con-
gressional and court action.
This morning counsel for the
United States Shipping Board and
for Mr.. Hearst participated in con-
ference with Justice Bailey with re-
gard to indemnifcation of the Ship
ping Board against loss involved in
the delay caused to the sale Of the
ships.
Asks Nominal Bond.
Assistant Attorney General Ames
asked that Mr.. Hearst give approx
mately $4,000, 900 bonds, which was
vigorously objected to by counsel Tor
the plaintiff on the ground that
nominal bond should be given be-
cause Mr.. Hearst filed suit as q tax
payer acting in the interest not only
Of the people but Of the Government
itself.
Joseph w. Folk, former governor
Of Missouri, Of counsel for Mr..
Hearst. asked that a nominal bond
be fixed also because all bids for the
thirty German ships have been re-
iected since the injunction was grant
ed and because Senate bill now
pending forbids sale Of the ships.
Will Fix Bond.
Justice Bailey said he would de-
eide ON what bonds would have to
be furnished by Mr.. Hearst after
the Shipping Board authorities sub
mitted to him tomorrow morning the
costs of advertising the bids for the
sale of the ships.
Judge Amc- declared that the
Shipping Boards daily loss on four
teen of the German ships alone be-
cause of the injunction would be
$9,14O for wages of crew, fuel and
other maintenance, and that on all
of the ships the daily cost is ap-
proximately $4,000.
"Loss Effective Every Day"
This loss he said is effective every
day that the injunction is sustained.
We contend that the Injunction Is
wrongly sued out" said Judge Ames,
"and ask for $4,000 900 bonds as in
demnity to the Shipping Board should
the injunction be found illegal"
Counsel for Mr.. Hearst differed with
Judge Ames, contending that the In
demnity losses should be guaranteed
by the Government. 1t was pointed
out that the Shipping Board had
planned to sell the ships for approx.
mately $4,000, 900, when their actual
value. according to the injunction, Is
100, 100000.
''To sell the ships for S3o,o0o.ooo
when their actual value Is 100000
900 would be a loss to the Govern
ment. This sale Is what the plaintin
Is attempting to stop-to prevent
great loss to the Government said
former Governor Folk
"The Shipping Board should be glad
to have the matter settled" said Mr.,
Folk, ito learn It's authority. III Cons
gress will not give the board author
ity they have no power to sell the
thirty ships.
Might Sell U. =. Fleet.
"why, their contention would have
II that the Shipping Board would have
authority to sell the United states
navy.
suppose they should ask for bids
for the sale of Americas naval ves-
sells? Then should taxpayer and
citizen OF the United States demand
an Injunction against the sale of
these vessels? Does counsel for the
Shipping Board ask that this taxpayer
and protesting citizen be bonded for
the costs of maintaining the crews
and other expenses of the naval ves-
sells while the injunction is in effect?
"The same applies to the Treasurer
OF the United states should he ask
for bids for the sale of the Capitol.
We hold that the Shipping Board
has no authority or power to sell the
thirty ships. The feet is the prop
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