New-York tribune., 1920-01-31
Board Rejects
Marine Bid ON
German Ships
Chairman Payne Says Gov
ernment Will No, Dispose
of Seized Vessels to
Any Single Corporation
Wants Fair Distribution
Declares U. S. Won't Sell
Unless the Price Is Fair:
Declines to Talk Figures
Ne,o York Tribune
WASHINGTON Buredu

Washington Bureau
WASHINGTON, Jan. 30.-Bids sub
mltted by the International Mercantile
Marine for the purchase of all of the
thirty former German liners will be
rejected by the United States Shipping
Board Announcing this fact this after
noon. John Barton Payne, chairman Of
the board. said the government had
adopted policy prohibiting any single
corporation from obtaining control of
any large block of Ships sold by the
board.
Judge Payne indicated. however, that
il the prices offered justified, the board
might accept one of the alternative
bids of the company for single group
of the German vessels.
Must Fly American Flag
"The Shipping Board" he said, "has
adopted two fixed rules governing the
sale OF ships by the government: First.
that all ships sold shall be operated
under the American flag, and, second.
that they shall operate on routes and
in services fixed by the board. For ex-
ample. we have provided for a definite
service to South America and have in
dicated a certain number of ships by
name for that service. We have speci-
fed the same with reference to Euro
pean service, with sailings 20 South
ampton and Cherbourg. and shall insist
that these services be carried out
"Furthermore. the board will not sell
al of these former German ships, when
are the only ones now being offered for
sale. 70 any one corporation or COM
bination. but will sell them in such way
as to insure fair distribution of them
among the different companies All of
this, OF course, is with the proviso as
to whether we shall sell at all, and as
10 this question the board has reached
no final conclusion.
I'VE have had all these bids analyzed
and are getting data concerning what
it will cost to recondition these ships
This cost, when added to the price at
which we can sell the shrs. vii Aetcr-
mine whether the prices offered are
fair and whether we shall sell. If we
find that they are not ar ~ Sc -,
sell"
Points to Sherman Law
Asked as to what steps the Shipping
Board had taken to prevent the ships
that may be sold by the board from
being resold into the hands of a single
monopoly, Judge Payne said:
at must be rene nlbered that the
Sherman law is still in effect. and if
there should be any effort at combi-
nation or monopoly it may be assumed
that the Department Of Justice will.
take notice"
In response to questions, Judge
Payne said that careful inquiry had
been made concerning the interests
back of the International Mercantile
Marine
This company made complete
showdown TO the board" he said. "and,
although it owns certain English COM
panies we have satisfied ourselves
that the company operating In this
country is 100 per cent American.
Judge Payne. while declining to dis
close the amounts OF the bids received
said they indicated a "healthy inter
est in the opportunity offered private
capita to acquire the vessels.
Discussing the matter to-day, Sena-
tor Wesley L. Jones. of Washington
Chairman Of .he Senate Commerce
Committee. which is considering leris Ia
t.oa u establish the permanent status
OF the American merchant marine, said
Although ! do not know anything
abou. i myself and realize that such
charge would be hard TO prove, 7 have
hearc ,nat certain powerful interests
nave LAID plans - ge. absolute contro,
o' he government-ow ships"
Opposes Time Limit
Senator Jones stated that he vas op-
posed 10 4 provision in the pending
legislation whereby limit would be
placed on the time the board would
have to dispose Of its ships to private
Interests
81 'hIak such provision would bc
un"is rs 1t might force the board u
eell .ne Vessels under less advantageous
conditions than it might otherwise ob.
taln. VIC must not allow privat,
parties % take the cream of this Snip
ping and let the government hold The
balance u DISPOSE Of at d sacrifice.
representing the Farmers Nationa
'olac'. J. benjamin {. Marsh has IN
sistet before the Senate comm ttes
ma Rrtlsh interests. working tn rough
:. r Aofgan & CO. are seeking to get
cCrtFC. o. @rp urins