Evening star., 1920-02-19
SHIP BOARD LACKS
AUTHORITY TO SELL
CRAFT, SAYSC0URT
Distinction Between Teuton
Vessels and. Others Is
Made in Decision.

The Shipping Board is without pow
er to sell the ships taken over from
Germany, according to the decision of
Justice Bailey of the District Supreme
Court rendered today on the applica-
ton for an injunction sought by Will
liam Randolph Hearst.
The court announced that tenn
porary injunction will be granted and
expressed his Willingness to hear from
counsel on both sides as to the penalty
of the injunction bond which first
must be given by ME- Hearst before
the temporary injunction will become
effective.
Only Question Involved.
At the hearing last Monday. Judge
the question of the right of Mr.. Hearst
as a taxpayer to bring the suit and
left to be decided only the legal ques-
tion of the power of the Shipping
Board to sell the ships.
After a careful examination of the
statutes" said Justice Bailey. Il am
of the opinion that they do not show
an intention on the part Of Congress
to place in the President or in any OF
his appointees or subordinate agencies
or in these defendants. the power to
sell these ships. and that no such
power has been granted by Congress
The decision of Justice Bailey sus-
tains the position taken by Attorneys
Ansell. Bailey and Ford and former
Gov. Folk. for Mr.. Hearst. that the
seizure of the former German YES
se:s was distinct legislation and the
power of disposition Of vessels taken
over by the Shipping Board allowed
by the act of 1917 did not apply to
these German ships. Judge Ames con-
tended that the act was broad enough
to cover the vessels in question, be-
cause it authorized the sale Of ships
heretofore or hereafter acquired.
To Confer on Bond.
Counsel probably will confer with
Justice Bailey tomorrow on the mat
ter of fixing the bond to be given
by Mr.. Hearst.
The Shipping Board announced yes
terday that it had decided to reject
Congress for authority again to offer
the ships at public auction.
VIII Appeal. Says Payne.
Chairman Payne of the Shipping
Board announced that he would recon-
mend to the Department Of Justice that
an appeal from the temporary injunction
order be filed Immediately.
Not having seen the opinion of the
court" Judge Payne's statement said,
II cannot comment upon. it. The
language in the emergency shipping
act giving the board the right to sell
ALI ships of whatever kind. or from
whatever source, and the proclama-
tion of the President based upon the
act leaves the question Of our right,
to sell free from 0oubt.- -
''The case is in charge Of the De-
partment of Justice. and that depart
ment Of course, will manage IT. My
recommendation will be that an ap-
peal be at once prosecuted. and that
we should at the first moment possi-
BILE demand a bond to adequately pro-
tect the United States. The daily
expense of taking care of the vessels
as they now lie in the harbor is some
$4,000. The complainant should be
required to give bond to pay this sum
and such damages as may result from
our failure to sell the ships. The
bond should cover this sum. and any
loss which the government may sus-
tain by reason of it's inability. due to
the Injunction to dispose of the ships
at the best prices obtainable."