Capital journal. (Salem, Or.) 1919-1980, 1920-02-13
SHIPPING BOARD
W|LLFOLLOW OUT
ORDERS OF court

Washington. Feb. is.-Referring TO
the injunction asked by William Ran
dolbh Hearst In the District Of Column
bia supreme court today, to prevent
the sale OF 80 former German liners at
public auction newt Monday. Chairman
Payne OF the United States shipping
board. this afternoon made the follow
ing reply;
The board will. Of course. pay the
utmost respect to any action Of the
court. Since the law placed the pow
er 10 sell ships In the board. 1t Is prob
able that when the court Is placed in
possession OF the facts. the order to
show cause win be set aside.
Il have not seen the complaint
which Mr.. Hearst has filed. and can of
course make no comment. IT would
be a public calamity not to be able to
sell the ships after the wide publicity
has been given TO the proposed sale.
The board will give careful consldera-
tion to the whole matter and act as
the circumstances may require. My
recommendation will be that we pro-
ceed with the auction and tentatively
receive the highest bids possible ana
then doefer action as TO their accept
apce until the matter Is disposed Of
by the court"
Danger Pointed Out.
Mr.. Heart, through his attorneys,
former Governor Folk OF Missouri,
former Senator Bailey OF Texas, former
Acting Judge Advocate General An
cell and William A. Deford, told the
court that irreparable injury would be
done the United States and Its people
and taxpayers IL the sale were allowed
to proceed next Monday.
He charged that unless the court
intervened vessels worth more than
s100, ,000. 200 would be sold for a much
smaller figure.
Aside from the financial loss TO the
government, Mr.. Hearst said, the sale
OF the vessels would destroy the 'army
transport reserve Immediately avail
able In case of emergency" He also
alleges that the shipping board was
abusing its power in ordering the sale,
Payne Denies Charge.
Senator Randell, democrat, Louis
iana. told the senate 1t was "ridicu-
lous TO think that the shipping board
would sell the fleet at the price quot
cd BY Senator Jones and Senator
King, democrat, Utah. announced
that while the debate was in progress
he had talked with Chairman Payne,
OF the shipping board on the tele-
phone and that Mr.. Payne had told
him that the charge Is an absolute
faisehood and that no secret agree
ment had been arranged for the sale
of the fleet"
Il talked TO the board In telephone
this morning" said Senator Jones,
land they advised me that they sim
ply proposed to open bids and con-
slider proposals Monday. After that
they proposed to take into consider
alton all OF the circumstances and de-
eide whether they win accept any
OF the bias or refuse all of them"
Asked by Senator Borah, republi-
can. Idaho, whether he had inquired
specifically about the reported under
taking with the Mercantile Marine
corporation, Senator Jones replied:
Jones Backs Down.
II did not and do not believe
there 10 any truth In the report, The
administration officials are not OF my
party, but believe they are honest
men and patriotic citizens. / feel sat
isfied they have not entered into any
such an undertaking.
Il have been told that from surveys
made the board believes 1t will cost
from s50,000.00O TO 500 900 to
put these ships In proper condition.
think that Ia an administration
matter and i have confidence that 1t
will be decided wisely"
Senator Jones added that Chairman
Payne several days ago had request
cd a hearing before the commerce
committee to explain the whole sit
uation
While the debate was proceeding
in the senate, Representative Mead,
democrat, New York, made public a
letter from Chairman Payne explain
ing the reasons for the sale OF the
ships It will be learned that Chair
man Payne had written a similar let
ter 20 President Wilson.
The letter TO Representative Mead
follows:
Mead's Letter cited.
Answering your inquiry resale OF
the ex-German passenger ships, the
reasons We're principally these:
lit is the opinion OF the ship.
ping board that we will probably not
be able to operate passenger ships
under prohibition successfully In
composition with foreign ships which
sell liquor The reason why Is: In
December we fitted out the Moccasir
TO sail TO South America. Her berths
were all sold. When l announced that
in view OF the policy OF congress OF
the country, government ships would
not be permitted 10 sell liquor one
half OF the sailings were immedlatel,
cancelled.
"s-We advertised the ex-Germar
ships and for twenty were Offered
$s0,00n.0 900. We had a careful calcu
lation made as TO the cost of recon
ditloning these ships for passengei
service, and reached the sum Of $57,
100000. In view Of the present situa
ton, It did not seem 10 us that w
were justified In incurrlng so large al
expense,
Conditions In the shippln
world are such that 1t ls our convic
ton that there VIII never be tim
when we can sell ships 10 create
advantage than now, and since 1t 1
our conviction that the ships cal
be successfully operated In privat