Omaha daily bee., 1920-02-14
Charge Price Offered by Bid
ders Is Far Below Recon-
Struction Cost Committee
GriIIs Chairman Payne.
SENATE DELAYS ACTION
UNTIL BIDS ARE MADE
New York Publisher Asks
Injunction to Stop Sale
Charges of Private Agree
ment Are Denied.

Washington, Feb. l5.-N igorous
opposition to shipping board plans
for the sale of 80 former German
passenger liners, broke out in the
senate today, expressed in sharply
critical debate and presentation of
several resolutions proposing to
block the action. While the debate
was in progress other developments
came thick and fast
John B. Payne. chairman OF the
board, appeared before the senate
Commerce committee through its
chairman, Senator Jones of Wash
ington, reported to the senate that
no immediate action was necessary.
No action accordingly was taken.
Give Out Payne Letter.
AT the White house there was
made public a letter concerning the
proposed sale sent by Mr.. Payne to
the president. which remarked on
the vicious BIZ. Characteristic at
tack against the shipping ooard ema-
mating from a certain quarter re
garding the sale of the ex-German
passenger ships"
In the District of Columbia su-
preme court William Randolph
Hearst of New York appearing as
a taxpayer, filed an application for
an injunction to prevent the pro-
posed sale of the ships at auction
Monday. The court issued an order
requiring the board to show cause
Monday why a temporary injunction
should not be Used.
No Sale to be Made.
Chairman Payne assured the SEN
ate committee and his assurances
were repeated to the full senate
that the board merely receive bids
Monday for the vessels and would
report the results to the senate
before acting. He met charges that
the sale of the vessels to a single
purchaser for $28,00O,000 was in
tended with a flat denial, but re-
peated his own conclusion that the
sale of the ships to American pri-
vate owners at the present time was
to he advantage of the govern
ment.
Senator .Aslurst. democrat OF
Arizona opened the debate and later
brought it to head by offering a
concurrent resolution directing the
shipping board not to sell the ships
except through regular bidding after
three months advertising. He and
the senator's supporting his resolu-
ton declared the boards action
would result in the sale of vessels
worth $500 a ton and more to pri-
vdte interests for around $50 a ton
The possibility that they might go
to English ownership was strongly
in.imated by opponents OF the i'm
mediate sale.
Committee Quizes Payne.
Before the committee Mr.. Payne
faced prolonged examination. SEN
ators cited the price offered the
board for the Leviathan. the $4,000
ton leader of the ex-German fleet.
WliiN-l WdS ST,ouo,OOU. MS WdS lOll-
pared with an original construction
cost for the vessel of $lO,0O00 900 and
a present cost OF duplicating it in
American yards OF $25,000,000 or
S50,000,000. This latter figure was
furnished by Homer S. Ferguson,
president OF the United States
Chamber of Commerce, a ship yard
head, who was present.
Chairman Payne likewise fur
niShed the estimates of shipping
board experts that it would cost
S7,500,000 to recondition the vessel,
from troop transport to its former
capacity OF passenger carrier. Only
one concern wanted to buy the Le-
viathan, Mr.. Payne said, but from
two to five bids were received on
other vessels of the feet.