Evening star., 1920-02-20
FAV0RS BILL FOR
NO SHIP SALE TILL
CONGRESS DIRECTS

The Senate commerce committee to-
day ordered Chairman Jones bill pro-
hibiting the sale of the thirty former
German passenger liners. except as
may hereafter be provided by Con-
greSS.
While no record was taken on the
bill. the committee previously adopt
ed motion, 10 to 3, proposing that
the sale be prohibited. Senators Edge
Of New Jersey, Fernald of Maine and
Nelson OF Minnesota, all republicans.
voted in the negative
Ihose supporting the motion wene:
Chairman Jones and Senators Ball,
Colt. Lenroot, McNary, republicans,
! and Chamberlain. Fletcher, Kirby,
RansdeH and Sheppard. democrats.
House Committee Acts.
The House merchant marine com
| mlttee tlok hand today in the con-
| troversy over the proposed sale of
thirty liners. when Chairman Payne
| OF the Shipping Board appeared to re-
| peat testimonx<already given on the
same subject before the Senate COM
| merce committee. Some of his evil
6ence was supplementary. questions
py committee members bringing out
the fact that President Wilson had
formally approved the boards de-
ciSion to sell the vessels, writing "ac-
| tlon of the board approved" on a copy
or the resolution referred to him.
Navy officials had appraised the
| thirty ships at Substantially less"
| than the sealed bid of S2S. 900. 900 re-
celVed for the Leviathan and twenty
other ships of the fleet. Mr.. Payne
said. An appraisal by Navy officials
on nineteen ships. including the
Leviathan. he added, was approxi-
mately $20,000.000.
Would Put Hearst Under Bond.
While the committee hearing was
in progress counsel for the Shipping
Board appeared before Associate Jus.
tlce Bailey in the District Supreme
! Court to urge that William Randolph
Hearst. on whose taxpayer petition a
temporary Injunction against the
sale has been issued. should be placed
under $5,OOO,OOo bonds to cover pos
sible losses to the government due to
the tying up of the craft by legal pro-
ceedings. They estimated the daily
prospective loss at $4,000. and also
pointed out that a contract to sell
the injunction. expired today and the
injunction prevents the government
from closing the sale, it was stated.
Attorneys for Hearst urged that
only a nominal bond should be re-
Quired, since the Shipping Board had
told Congress that all bids had been
rejected and the board had no inten-
tion of concluding a sale without per-
mission of Congress. Mr.. Hearst sued
as an individual, it was stated. not for
his personal gain. but in the public
interest to prevent loss to the gov
ernment. The opinion of the court
that the board lacks power to make
q sale ought to be sufficient to pre-
vent a sale of these vessels without
the formality of bond. it was
claimed. Since bond would be
mere formality the penalty should be
in, 4,nn iro1 ell
A bond of $5,000.000 required of a
single taxpayer would render futile
the decision of the court, that the
ships could not be sold. it was assert
ed. and would prevent public-spirited
persons from applying to the court to
correct or prevent actions by govern
ment officials in excess of their pow
ers.
Justice Bailey inquired the amount
of the expense to which the govern
ment has been placed for advertising
to date for the sale of the vessels and
declared that if such information was
furnished to him today he would be
prepared tomorrow morning to an
nounce the penalty of the bond.
The court intimated that the ex-
penses already incurred would prob
ably form the basis of the temporary
injunction bond.
Text Of Jones Measure.
The Jones bill prohibiting the sale
follows:
That the passenger and combina-
ton freight and passenger ships ac-
quired by the United States from Ger
many shall not be sold except as may
hereafter be provided by law estab-
fishing definite shippers policy. and
the United States Shipping Board
Emergency Fleet Corporation is here
by authorized and directed to repair
and recondition said ships without de-
lay in such manner as will in it's
judgment make them most service
able for profitable operation or sale
and pay for the same out of the reve-
nues derived from the operation and
sale of ships under it's control or
other available funds"