Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-02-19
COURT HALTS SALE
OF GERMAN LINERS
Temporary Injunction Granted
by District Supreme Court
at Washington
SAYS BOARD LACKS POWER
BY the Associated Press

y
injunction to prevent the sale Of the
thirty former German passenger liners
recently offered by the shipping board
was granted today by Associate Justice
Bailey. Of the District Supreme Court.
Justice Bailey said that after care =
tul examination of the statutes he was
or the opinion that they did not show
an intention on the part Of Congress
to give the President or the shipping
board power to sell the vessels.
Application for the Injunction was
made last Saturday by William Ran
dolph Hearst. OF New York. and hear
ings Oh it were held last Monday while
the liners were being offered at public
auction. The board announced vester-
day it would reject all Of the bids
received because they were too low. AT
the same time 1t asked Congress for au.
thorty to put up the ships at auction
again.
Payne to Recommend Appeal
Chairman Payne. Of the shipping
board, announced he would recommend
to the Department of Justice that an
appeal from the temporary injunction
order be filed Immediately. Meantime.
he said, it was expected that Mr.. Hearst
protect the board against loss by reason
of the ships lying idle.
Bids amounting to S6,S1O,0 were
received for seven of the liners, more
than twenty years old, that the board
had listed as ''valueless.' Commissioner
Raymond B. Stevens, former vice
chairman of the board. testified today
before the Senate committee investi-
eating the proposed sale. Mr.. Stevens
explained the policy was to charge off 5
per cent year for depreciation and
that the board. therefore, had held that
ships twenty years old or more were
worthless. AS matter of fact, he ad
mltted. the seven ships referred to were
easily worth $4,000, 900.
The value of the thirty ships was
Two to three times the amount of the
bids received. Mr.. Stevens said. the
real value being between SOS 900 600
and 10000. 900.
Wants L. S. to Operate Ships
The fundamental question involved in
the sale, Mr.. Stevens said was whether
the vessels could be operated as cheaply
under the American flag as are foreign
craft.
The only way we can find that ont
is for the shipping board to refit the
ships and operate them for while"
be said. To sell the ships to Ameri-
can concerns for the amounts offered
would be to give an indirect subsidy of |
millions of dollars
Mr. Stevens said sealed bids received
from foreign companies for four ships !
'or transfer to other flags reached dou-
bic the highest bid by a United states
concern in three cases and $500 '0Of, |
more than the highest American bid on |
he fourth vessel. The bids were re-
lected in conformity with the boards
policy not to transfer the ships to other
iags.
There is no reason why the ship
ping board should not 20 ahead and
operate the ships Mr.. Stevens con-
-inued. I'VE now have a chance to prove
Or disprove the claim that the United
states cannot compete on the seas with
oreign countries. Ships are at a
premium in the worlds markets today.
md 7 think this would be the worst
'ossible time to SELL
Would Make Hearst Give Bond
Chairman Payne issued the following
tatement:
Not having seen the opinion of the
ourt, | cannot comment upon it. The
anguage in the emergency shipping act
wing the board the right to sell all
hips of whatever kind, or from what
yer source, and the proclamation of the
resident based on the act, leaves the
uestion of our right to sell free from.
oubt.
The case is in charge of the De-
artment of Justice. and that depart
nent, of course, will manage it. My
ecommendation will be that an appeal
e at once prosecuted and that we
hould at the first moment possible de-
land bond to adequately protect the
nited States.
THE daily expense of taking care of
ne vessels as they now lie in the har-
or is some $15. 900. The complainant
Mould be requested TO give bond TO nay
'is sum and such damage as may re-
ilt from our failure to sell the ships.
he bond should cover this sum, and
ny loss which the government may
ustain by reason of it's inability. due
, the injunction, to dispose of the ships
the best prices obtainable."
Disagreement Over Leviathan i
John d. York. of Chicago. a marine
nglneer, told the Senate committee
nat the Leyiathan could be recondi-
oned only in the German ward where
ne ship was built. r. L. Hague, engi-
eer for the shipping board, disagreed, ,
aylng that all of the work on the !
.eviathan could be done here, except !
ocking. no drydock in this country !
aing large enough.
Mr.. York also said the International I
Iercantile Marine had offered only $50
ton for the former German ships. but '
aid $3.50 @ ton for British tramp 7
eamships, although the German yes b
is were 'inestimaby superior" to the b
amp vessels. {
Chairman Jones announced that tho
would meet tomorrow to de- +
de on policy with regard to the sale I
the vessels e