The Washington times., 1920-02-19
FINAL QU|ETUSPUT
ON SALE OF SHIPS
Payne Plan Blocked BY Senate
Commerce Committee Fol-
lowing Stevens Hearing.
CONTINUED from First PassJ

" 10 INC
suit II we should hold control OF
them until conditions become sta
BILE"
Mr.. Stevens declared that the bids
)ffered for the ships were so ridicu-
ously low that no further atten-
Ion should be paid To them. He
aid that only one American com
amy had had experience In operating
passenger ships-the International
fercantile Marine. He said that the
lids did not represent In any way
he actual value OF the ships, but
merely what shipping interests OF the
United states felt they could risk in
purely speculative venture.
II am beginning to believe that
have finally convinced my fellow
commissioners that the vessels are
worth more than they thought" he
said.
A sensation was caused when Mr..
Stevens expressed the opinion that II
the International Mercantile Marine
obtained control OF the ships II would
not recondition them in American
yards, but probably in English and
German yards, where the work could
be done much cheaper.
Commissioner Scott, of the Shipping
Board, made brief statement after
Mr.. Stevens concluded.
at must not be forgotten that IL
the Government decides that the Ship
ping Board should hold the ships they
must be operated by the very in
terests to whom we are now offering
them for sale. l think they would
be operated much more efficiently IL
these interests are allowed to risk
their money on them than II the
hazard is taken by the Shipping
Board"
Stevens declared to the committee
that he believed that the American
merchant marine should be privately
owned and operated eventually. but
that IL fair price cannot be received
by the Government for the former
German ships they should be held
until they can either be sold at their
real value or Congress authorizes us
as a matter OF public policy. to sell
them below that value for the pur-
pose of aiding the American merchant
marine"
Bids offered for the German ships
show that neither fair value has
been offered, nor indicate that fair
value might possibly be secured by
further negotiations.
at is on the question OF value that
differ widely from my fellow COM
missioners," Stevens said. He said
that the navy appraisal of the value
of the ships was S1S,7O7, $50, and that
the aggregate bids on twenty ships
was S2T.291 $50, but pointed out that
the navy appraisal had been made
when the ships were in their dam
aged condition. "It must be obvious
that this Navy Department appraisal
throws little lighb upon tbe real value
OF these ships" Stevens said.
Value Of ships.
"The value of these ships ranges
from nearly twice the amount OF the
bid to nearly three times" Stevens
continued. Another fact which con-
firms me in my opinion that the bids
are substantially below the real value
is that among the bids submitted
were four for foreign account. One
of these exceeded the highest Ameri-
can bid by $4,000 and the other
three were practically double the
highest American bid.
Furthermore, the American Steam
ship Association, through It's chair
man, Mr.. Franklin, has recomme nded
that the cargo ships be reduced from
1925 to 5000 a lightweight ton to 500
a lightweight ton on the ground that
that was all these ships were worth
in competition in the worlds trade.
SO that the bids on these passenger
boats are practically in line with their
judgment as to the value Of the cargo
boats
Calls Bids Honest.
al am satisfied that the bids offered
were honest bids, said Stevens. Il
have no idea that IL negotiations are
further continued the bids would be
increased sufficiently to approximate
the value. Therefore, l am of the
opinion that the wise policy is to re-
ject all bids. make no further attempt
at the present time to sell these ves-
sells: that the board should put them
in condition and have them operated
for the board under a form Of agree
mcnt similar to that now UNDER con-
sideration for cargo boats"
stevens said he believed that with
present passenger rates the boats
could be operated for profit by the
Government and that it would be un-
fair to attempt to judge the future
possibilities of loss. eff American
shipping can compete in the future
with foreign shipping. they can be
sold when that is demonstrated at
their fair market value" stevens
said. "If IL cannot, they will have
to be sold at a less value. In any
event, our final action will be taken
in the light of complete information
and not in the present uncertainty and
doubt"
1--WE have made up all the losses
from submarine warfare during the
war and are 1900. 900 lightweight tons
to the good" stevens said.
This Is the poorest time In the
world to sell ships. Why sell these
ships on guess work? Why not hold
A. nan hot mn A.
can get.
These men who bid s2S,000, 900 for
these ships have asked theft value be
put down to 500 ton. ] think II
the Shipping Board undertook to sell
these ships at 500 ton IL would be
called down by Congress"
When the hearings closed today
Chairman Jones announced that the
Commerce Committee would meet to-
morrow morning at 1890 o'clock to
determine. in executive session, its
policy in reference to the sale of
German ships.
He declared the committee had In