New Britain herald., 1920-02-19
District Court Issues Temporary > >.Decree Against Shipping Board
BIDS RECEIVED ALL LOW
Commissioner Stevens Says Value Far Exceeds That Offered-Chairman Writ-Hearst Wins First Clash.

injunction to prevent the sale of the 30 former German passenger liners, recently offered by the Shipping board, was granted today by Asso- ciate Justice Bailey, of the district supreme court.
 Justice Bailey said that after a careful examination of the statutes he was of the opinion they did not show an intention on the part of con- gress to place in the president or the Shipping board the power to sell the ships.
 f Application for the injunction was made last Saturday by William R. Hearst and hearings on it were held last Monday while the ships were be- ing, offered at public auction. The board announced yesterday it had de- cided to reject all of the bids received. At the same time it asked congress for authority to offer the ships again at public auction.
 Will Appeal at Once.
 Chairman Payne, of the Shipping , board, announced that an appeal from the temporary injunction would be filed immediately. Meantime, he said, it was expected that MT. Hearst would be required to furnish bond to protect the board against loss by ; reason of the ships lying idle.
 Justice Bailey's decision sustained contentious of counsel for MT Hearst that the German ships were seized under distinct legislation and that the boards power of disposition did not apply to them. Assistant Attorney General Ames, representing the gov ernment, contended that the law of y1917 was broad enough to cover the ships in question in that it author ized sale of vessels acquired previ- ously or thereafter.
 Bids Totallcd S6,SfO,OO0.
 Bids amounting to se.S1o.ooO were received by the shipping board for seven former German passenger ships over 20 years old that the board . had listed as valueless. Commis- 1sioner Raymond B. Stevens, former Nice-chairman of the board testified today before the senate committee Investigating the proposed sale of the once German liners. MT. Stevens ex- plained that the boards policy was to charge off five per cent. year for depreciation and that the board, therefore had held that ships 20 years old or more were worthless. As a matter of fact he said the seven ships referred to were easily worth $10,000.000. The bids received for them were:
 Amphion s512,oOo; Susquehanna $6O0,000; Nansemond $500. 900. Aeolus $1,04S,000; Princess Matoika $1,125,00 Antigone $1.20o,o00, and Pocahontas $1,425,O0O.
 Says Values Are Low
 The value of the 30 German ships offered for sale was two or three times the amount of the bids re- ceived, MT. Stevens said, their real value being between $6S,0OO,00O and $70,000,000.
 Although. he asked that the ships be appraised by experts outside the shipping board and that he be allowed to sit with them, Mir. Stevens said he was not notified when the ex- perts met and knew nothing of the appraisal until it appeared in the committe4ss record The appraisal was made by Frank $. Martin and IT. Howland Gardner. of New York both merchant marine experts he said out It did not represent the real value" of the vessels.
 The Fundamental question involved Tn the sale of the ships, Mr Stevens sad, was whether they could be oper- ated as cheaply under the American flag as are foreign ships
 Would Make Test.
 The only way we can find that out IS for the shipping board to refit the ships and operate them for a while. ,, he said. ''To sell the ships to Amer lean concerns for the amounts offered would be to give an indirect subsidy O. millions of dollars and if the same policy were followed with the cargo ships the subsidy would reach lll- lions"
 MT. Stevens said seal led bids receiv- ed from foreign companies for four ships for transfer to other flags reached double the highest bid bv a United States concern in three cases and $50o.0 more than the high est HSrnerican bid on the fourth vessel Fhe bids were rejected by the board in conformity with it's policy not to transfer the ships to other flags he said 4g
 There is no reason why the shin ping board should not go ahead and operate the ships" Mir Stevens con- finued. The board has the money and we now have chance to prove or disprove this claim that the United States cannot compete on the seas with foreign countries.
 Ships are at a premium in the worlds markets today and think this would be the worst possible time Eo sell"