The daily banner. (Cambridge, Md.) 1897-2008, 1920-02-14
HALTS SALE OF
GERMAN SHIPS
Hearst Gets Injunction Against
The Deal.
ALLEGES ABUSE OF POWER
The Shipping soard Head Urges the
Policy Of immediate Disposal-Dis-
cussed in the Senate.

cussed in the Senate.
WASHINGTON, Feb. l4.-Application
for uu injunction against the shipping
board and lie emergency fleet corpora
tiuu To prevent the sale of thirty
former German liners at public auction
next Monday was fled in the District
Of Columbia supreme court by Will
liam Randolph Hearst, of New York,
acting in his capacity as Il taxpayer.
Chirf Justice Mccoy issued rule
requiring the defendants 10 show
cause why temporary injunction
should not be issued.
Chairman John Barton Payne, Of
the shipping board, announced that
the application for an injunction will
not prevent the Offering of the ships
for sale. He said tenders viii be re-
ceived Monday rs planned, but that
final action on them will be deferred
until the injunction proceedings have
been disposed OF finally.
The application for the injunction
charged that the conditions of The sale
had not been properly advertised and
that unless The court interviewed yes
sells worth more than $100,0O0,000
would be sold for a much smaled fig
ure
Aside from the financial loss to the
government, Mr.. Hearst said, the sale
Of the vessels would destroy the "ar-
my transport reserve Immediately
available in case of emergency He
also alleges that the shipping board
was abusing its power in ordering the
sale.
Chairman Payne, in his announce
ment said:
"Since the law has placed the pow
er to sell ships in the board, it is prob
able that when the court is placed in
possession of the facts the order to
show cause will be set aside.
at would be public calamity not
to be able to sell the ships after the
wide publicity has been gwen TO the
proposed sale"
Recommendation that no action be
taken at this time toward preventing
or delaying shipping board plans for
the sale at auction OF thirty former
German ships were made 10 the SEN
ate by Chairman Jones, Of the COM
merce committee, after Chairman
Payne had explained the situation TO
the committee.
Senator Jones told the senate that
he was satisfied that the senate need
take no action on any of the resolu-
tons interposed to block a sale and
added that it was particularly false 20
say that the board had ever intended
TO sell all of the vessels TO one buy
pr.
"In fac, Judge Payne has assured
US that the board has passed a resO-
luton binding itself not to sell all Of
the vessels to a single purchaser IN
der any conditions" Senator Jones
said. 1.-THE committee is satisfied TO
take his word in the whole matter"
A concurrent resolution directing
the shipping board not to sell the
thirty German liners except through
regular public bidding after three
months advertising and then only If
proper offers are received was intro
duced in the senate by Senator Ash
urst, Democrat, Arizona.
The resolution was offered in the
midst of a debate on the sale of the
ships. Senator Ashurst declared that
i was a fact that the shipping board
and the emergency fleet corporation
intended to sell the vessels to the IN
ternational Mercantile Marine for $685.
100000. He said The vessels had
pre-war value Of $154,O00,OOO and q
present value Of $300,00000O.