The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-02-16
..S.FLAG NOT
SPECIFIED IN
B|DPROPOSAL
Only One-FOurth Of Money
Was to Be Paid in
Cash.

hand over thirty FORMER German
ships to an Anglo-Wall Street syn
dicste, are as follows:
THE Shipping Boards secret
4 deal contemplates the astound-
ing proposition of placing the yes
sells in possession of the syndicate
for 81 ,oO0, 900. Only this amount,
one-fourth of the $4,000, 900 offered
for the fleet, is required as an initial
cash transaction, the rest to be ar
ranged over a long period Of easy
payments" during which the ships
could, under normal conditions,
"earn" their own payments.
DIN the obscure advertised re-
Il quests for proposals it is evident
and thoroughly significant that in no
case is it even intimated that the
ships shall remain under the Ameri-
can flag.
Vessels Would Have Paid All.
A copy of the notice for proposals.,
which was procured to-day. lard bare
the astounding fact that the Shipping
Board would have required only one
fourth of the sos, 900 900 to be paid
over before delivering the huge YES
sells. 1t Is remarkable to note that
the "easy payments" to follow In
paving the balance would ACTUALLY
RE CLEARED BY THE VESSELS
THEMSELVES IN FREIGHT AND
PASSENGER EARNINGS.
In a few years, according TO snip
ping experts, the terms OF -aie.
framed by Chairman John Barton
Payne and others, being SO dead
easy" America not only would be
without her ships. but would be let.
ting the cart pay for the horse
british interests gaining these COW
eted ships would actually be on, or
pocket only $1,000. 900 on the trans
action, which itself seems absurd 70
experts on the $4,000, 900 nominal
purchase basis.
1t il pointed out that only after
formal protest on the part OF SecreI
tary OF War Baker and Brtgadier
General Hines, who opposed the SAFE
of the ex-German fleet pm the sfound
that some Of the vesfbis SERVED as
part of the army tra4Sport reserve.
did the Shipping Board announce that
It had taken new stand, and wouia
sell the fleet, with the provision that
the vessel composing 1t should ny the
American flag. "a
IL II certain that these and 0eher
Enclosures arc to be mnde the. SUB
feet Of a rigorous investlEatisn ~
Congress, which may go even fursa
into Shipping Board ncttvitfe" tnan
the scnndnl which has arisen A. re-
suit Of the attempted sale for an ni-
most paltry figure Of the great liners.
The special committee appointed by
the House TO investigate the actiViues
Of the Shipping Board Is expected 10
call the first witness this week. CON
gresham Joseph Walsh OF Massa-
chusetts, chairman of the committee,
said today that the members had
nearly completed preliminary CORE
spondence with witnesses who nave
offered to appear. Philip Manson q
chipping expert of New York, VIII Dc
one of the first to tO0fy.
Provisions Of Contract.
A copy of the advertised terms un-
der which the Shipping Board pro-
posed to sell the thirty former Ger.
man sbips contains no provision that
the ships are to fly the American nag
after changing ownership. Here Is
the proposal:
proposals will be received by the
United States Shipping Board, WASH
ington, d. c., up to and inciudlnB
January 20, 1890, for any or all OK the
passenger ships, a list of which Is at
tached; said proposals to be accom-
panied by certified check for 2h per
cent Of the total amount bid. BIDS
to be on either lump sum per ship or
per gross ton basis.
The following Information shoulo
accompany all bids:
'1-Trade or service in which ships
will be placed IL bid Is accepted.
"2--Such assurance as may be pos
sible that service will be permanent
"s-The amount of United States
tonnage now owned by bidder.
"4--Percentage of foreign owner
ship or interest in partnership COM
pany or corporation bidding.
"5-Foreign interest In bid, " any.
"6-Particular fitncss of bidder Tor
proposed service.
BIDS On ships "As Ia"
"AlI bids to be based on taking
title Of ships as Is 1t being under
stood and agreed that any commit
ments OF the Shipping Board. involv-
ing operation, repairs or alterations
win DO subject to further negotiA-
lions.
bidders will state definitely terms
upon which payment or payments
will be made. II being understood
that the bill of sale shall not be de-
Jvered until at least 20 per cent
Of the total purchase price shall have
ooen paid.
I'm the event that the bid IL se-
cepted by the board, and the board
stands ready and willing to deliver
oill of sale, and the bidder II In de-
fault, the Shipping Board shall re-
tin the 2h per cent as liauidated
damages.
vrhe board reserves the right TO
reject any and all bids.
v "Ail bids should be addressed to
the chairman OF the United States
shipping Board, Washington, ID. c..
and marked Proposal for purchase
passenger ships
tAction may be expected at the
srst meeting of the Shipping Board
after January 20. 1920"
An attached memorandum to tho
formal notice adds the thirty names