The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-18
lAYNE ADVOCATES
REJECTION OF ALL
HUN VESSEL BIDS
Scion Committee Is Given
Resolution From Shipping
Board Urge New Sales
= Made to U. S. Firms Alone.

WASHINGTON. Feb. 1S.-Rejection
ot all bids Received for the 30 former
German passenger ships offered for
saIe safe oy tne Shipping board was recon-
Hlsndcd ~ THE senate commerce COM
mittee to-day. By Chairman Payne, OF
the board. Who asked authority to re i
new negottations for sale OF the YES
flag.
The boards Recommendation was
Contained ip the following resolution
Submitted to the committee;
"Resolvea. that with the report
submitting the bids to the senate and
house committees the board states that
Il proposes % take the following ac-
The board believes that in view of
the uncertainty as to whether the
actually be made, the bids received are
much less than can be obtained by
further nFE0tiations
'Resolved, that the bids received on
the Goth ef january In response to the
adyertisemert for sealed bids and those
received at the public auction held on
the 10th and 18th. instant. be and the
same are Hereby rejected and that the
checks Of the bidders be returned
Res0iYeds further, that the sales
division be and II Is hereby instructed
to negotiate further for the sale of the
said ex ~Sierman passenger ships on the
terms heretofore announced In the
origiuaI adver Isement; that is.
A. That They be cold only to Amer
ican firms. corporations or persons for
use under the American flag.
'B--.Alid offered with reference to the
routes or services established by the
board and that each negotiation, when
the highest price possible Is reached
be feported g the board for its ac-
iRecounts Sales.
The resolution was embodied in a
prepared statement which Mr. Payne
that the board had sold 1873 ships ir
accord with It's policy to dispose oi
the fleet to American citizens for oper.
alton under the American flag anC
that is former German cargo vessel,
were included In this number. Th'
price received was s9S, ,545.a47.
Ct sairnan Payne said ii congress de
sired ID change this policy 70 publl
ownership of Nhips the passenger line
should nat Spld, and congress shout.
direct " M .hasSd tA spebN the $4,000.
600 estimated as necessary TO convef
them from troop TO. passenger vessels
1T should be Understood. he said
that the ships, whether owned by tn
government or by private capital mus
in either case be operated by the ship
ping companies which are bidding fo
the ships. The government has n,
adequate organization for the direc
operation of ships
IF the government continues to b.
the owner, 1t must pay the operator
fixed fee and commission upon re
ceipts and take whatever profit re
mains. or II no profit remains, mus
bear all the losses"
The chairman went on TO say that II
accord with the joint resolution o
congress under which the ships wer
taken over a naval board had ap
praised the craft and that the price
at which the board could sell now wer
substantially in excess of the appraisei
value.
Mr.. Payne said passenger ships wer
scarce now and building prices high
but that these conditions might chang
and the value of the ships be CORE
spondinGly ,lessened.
IF we proceed sto recondition tn
ships making them fit for passenge
| use" continued the chairman, it wi
| take from six TO IL months to put then
| into service. Our conviction Is that W
will not hereafter be able to sell tn
| ships for the cost of reconditioninj
plus the price at which we can nov
sell,