New-York tribune., 1920-02-17
IA Millions
Bid for Nine
German Ships
international Mercantilc
Marine Company Also
Offers High Figure for
Group Of Six Liners
No Sales Are Recorded
White House, Senate and
District Supreme Court in
Controversy at Auction

WASHINGTON, Feb. 16.-While con-
trovcrsy over the proposed sale of
thirty former German liners occupied
to-day three government agcncies-the
White House, the Senate and the Dis
trict Supreme Court - presidents Of
great shipping companies were bidding
in tens of millions against each other
for the craft at the Shipping Boards
auction
For one group Of six vessels the bid
ders fought with $25O,O0O boosts in
price, until Major General George W..
Goethals, retired, now head of the
American Ship and Commerce Com
pany, dropped out at $l3,oo0,oOO. which
he said was his limit. P A. s. Frank
lin. president Of the international Mer-
camille Marine, raised the price to
S13,l00 900
Auction Continues To-day
Commissioner Scott had announced
in opening the auction that it was only
for the purpose Of receiving bids, final
action to await approval of the Senate
Commerce Committee and the House
Merchant Marine Committee and the
outcome of William Randolph Hearst's
application for an injunction to pre-
vent the sale.
While the bidding was in progre IS
the Senate further complicated the stu
alton, adopting a resolution request
ing that the sale be postponed At the
conclusion of the bidding to-day it was
announced that the auction would con-
tlnue at 10 o'clock tomorrow.
In the District Supreme Court. AS
sociate Justice Bailey took under ad
visement Mr.. Hearst's application after
hearing contention of counsel that the
Shipping Board lacked legal power to
dispose of the vessels. He will render
his decision Friday.
No Secret Agreement
At the White House, it was said the
{ resident would answer promptly with
a decided negative the resolution
adopted by the Senate Saturday, ask
! ing If there existed a reported secrer
understanding with Great Britain as
to the ultimate disposition of former
German craft
Bidding at the auction was slow in
getting under way at the morning ses-
sion, when groups Of ships were being
offered, but became spirited in the
AFTERNOON when individual vessels were
cons idered
The highest group bid was 1850 Ooo
ooy the international Mercantile Marine
for nlne ships, including the Leviathan
which went unopposed, and the record
bld for single ship was 1000 600 for
the Callao by the American Ship and
Commerce Company, doubling liz ir one one
bid the offer of the international Mer-
camille Marine for the vessel.
lhe highest group bid covered the
Levlathan. George Washington, Amer
ica. Pres ident Grant, Nansemond. Anti
gone, Pocahontas, Princess Matoika
and Callao, offered by the International
Mercantile Marine, the vessels to be
put in the European service
Ihe next highest group offer was the
international Mercantile Marines bid of
Sl3,loO, 900 for the George Washington
Martha Washington, America, Presi-
dent Grant. Nanscmond and the Callao
Tor service to Hamburg and Bremen.
Moore & Mccormack offered S4,50O.-
600 for five vessels, the Martha Wash
ington, the Aeolus, the Huron, the
Princess Matoika and the Pocahontas,
for South American service, and the
same company bid s4,O00,OOO Tor the
Princess Matoika and the Pocahontas
for service to the Baltic
Ninety-nine Per Cent American
For Individual ships the high bids
were as follows:
Black arrow, 100000, Oriental Navi-
cation Company; Princess Matoika
s975,O00. international Mercantile Ma
rlne; Susquehanna, $650,0OO, C. B.
/ Richard & Co.; Artemis, $75O,0O0, In
| ternational Mercantile Marine; Am
phion, $275,O0O, c. B. Richard & Co..;
, Antigone, $S00OO0. International Bu-
reau of Supplies; Eten, 100000, Orien-
tai Navigation Company; Madawaska,
S975,OOO, Oriental Navigation Company;
Pocahontas, $925,000. international
Mercantile Marine; Callao, $2,O0O,000,
American Ship and Commerce Corpora
! ton.
After making the sl3,1Oo,ooo bid for
the group of six ships Mr.. Franklin
was asked by Commissioner Scott if
he desired to make any statement re-
gardlng the ownership of his COM
pany, to which he replied that the In
ternational Mercantile Marine was 80
per cent owned and controlled in the
United States
Bids submitted by the international
Mercantile Marine on January 20 have
been Withdrawn at the request of Mr.
Franklin, Chairman Payne announced
tonight. These bids included one of
S28,O00,00 for the entire feet Of thirty
vessels and one bid Of $4,00O,OOO for
! the Leviathan.
Bids Show Decrease
Chairman Payne said the other COM
panles offering bids at that time would
have the privilege of withdrawing
theirs. In general. the bids made to-
day for individual ships were much
lower than the ones received in Jan
uary.
Terms proposed by the bidders for
the purchase Of the ships offered to-
day varied from the regular Shipping
Board terms of 25 per cent on delivery
ana the remainder in five years, to
payments over period of fifteen years
Conditions made by the bidders GOV
/ cred assurances that tho Shinnino