The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-02-20
WILSON @. KS
SALE OF SHIPS
So Chairman Payne, of Ship
ping Board, Tells House
Committee.
HEARST UNDER BOW
Urged to Cover Loss Due
Tying Up of Vessels-t
peal From Injunction s :

Washington, Feb. 20.--( ; }
The senate commerce q : t.
tee today ordered Iavorably re-
ported Chairman Jones' bill pro-
hibiting the sale of the thirty
former German passenger liners
except as may hereafter be
provided by congress.
The house merchant marine COM
mittee also took a hand today in the
controversy over the proposed sale
of thirty former German passenger
liners, when Chairman Payne, of the
shipping board, appeared to repeat
testimony already given on the same
subject before the senate commerce
committee. Some of his evidence
was supplementary questions by
committee members bringing out
the fact that President Wilson had
formally approved the boards deci-
sion to sell the vessels, writing
action of the board approved" on
a copy of the resolution referred to
him.
Navy officials had appraised the
thirty ships at substantially less
than the sealed bid of 100000 re-
ceived for the Leviathan and twenty
other ships of the feet MI Payne
said. An appraisal by navy Off
'cials on nineteen ships, including the
Leviathan, he added, was apbroxi-
mately 100000, 900.
Hearst Under Bond.
While the committee hearing was
in progl rss counsel for the shipping
board appeared before Associate
Justice Bailey in the District of Co
lumbia supreme court, to urge that
William Randolph Hearst, on whose
taxpayer petition temporary in
junction against the sale has been
issued, should be PLACED under
$5,00O,000 bond to cover possible
losses to the government due TO the
tieing up of the craft by legal FRO
Ceedings. They estimated the daily
prospective losses at $4,000 and alsI
pointed out that a contract to sell
the Swanee for $2,000,000 held up by
the injunction, expired today.
Hearst's Counsel Objects.
Counsel for Mr.. Hearst contended
that only nominal bond should be
required as board officials told con-
gress all bids had been rejected and
that no sale would be made without
specific permission of congress.
Mr.. Hearst sued, it was stated, not
for his personal gain, but in the pub
lie interest to prevent loss to the
and counsel added that
bond of $5,000,000 required of a
single taxpayer would prevent pub
lie spirited persons in future from
applying to the court in similar
cases. Justice Bailey said he would
be prepared tomorrow TO fix the
bond.
VOTE AGAINST SALE.
While no record vote was taken on
the bill the committee previously
adopted a motion, 10 TO g. proposing
that the sale be prohibited.
The bill provides against the sale OF
both passenger and freight vessels ac-
quired from Germany. and directs the
board to immediate recondi-
ton the ships in the manner which viii
make them most serviceable,
The Jones bill was amended by the
committee by vote of 10 to to make
the sale of all the ships impossible un-
til congress has determined on q policy
The original bill provided that sale of
particular ships should not be author
lzcd.
The vote on the amendment to hold
all the ships until the United States
determines its shipping policy was as
follows:
For-Ban. Chamberlain. Fletcher.
Kirby Lenroot McNary, Ransdell.
Sheppard and Jones,
Against--Edge. Fernald and Nelson.
Purpose of Bids.
Chairman Payne declared before the
house merchant marine committee that
the bids were asked for to
find out If we could sell the ships for
A fair price"
In his letter to the president Mr.
Payne admitted that the bids did not
approximate what il would cost to
build the ships today.
Mr. Payne said the boards action was
based on future profitable government
operation of the ships was problemau-
cal, and on the belief that the prevail
ing high prices for tonnage were not
assured for the future.
Continued government operation, he
said, would require a large eNpediture,
with doubtful prospect Of getting
steady high returns.
"As | Understand the situation. the
congress in 1916 fixed the policy that
ships be not operated by the govern
ment" Chairman Payne said.
To Sell TO Americans
"Tf the congress desired ms 10 dis
pose of the ships, we will not in the
future, get the high prices we can get
now"
He said It WAS the policy TO sell only
to American interests.
Chairman Payne's letter requesting
President Wilson's advice, was written
Jan a. In it the shipping board head
gave it as his opinion that the ships
could not be operated by the govern
ment under prohibition regulation eN-
cept at loss and we could get more
for them now than later.
To Fix Bond Saturday,