The Washington times., 1920-02-14
EXPOSE BLOCKS
SALE Of SHIPS
Boards Plan to Dispose OF
Liners to AngIo-WalI Street
Firm Upset.
Continued from First PageD

Evidently they have been served
on Commissioner Donald. That is me-
copy. i suppose mine Is waiting me-
| Payne replied. smilingly.
| II said / could not say what the
board would do, but what l would
recommend to the board. which was
that we should proceed with the auc-
ton, receive the bids, but defer any
action with reference to the accept
ance of the bids or any commitment
| Of the board until the court should
| determine the question which Is sub
| mitted." Mr.. Payne said.
Mr.. Payne thereupon promised the
committee that in view OF the entire
| situation. he would defer final ac-
tion until he had laid all facts DC
fore the committee and had been ac-
quainted with the course the COM
mittee and the Senate wished the
board to pursue in the matter.
In commendink Mr.. Hearst's course
in seeking to enjoin the Shipping
Board from disposing OF the ships
Senator Ashurst today said Congress
never intended the vessels should be
sold by the board.
In attempting to sell them, John
Barton Payne and his associates on
the board were exceeding the powers
vested in IL by Congress, the Senator
emphasized.
He would call the attention OF the
Senate today TO the fact which no
lawyer would dispute, that under tht
Joint resolution OF May IL. 1917. thu
board had no legal or other right I
sell the cX-German ships. he SAID.
Had Congress intended that the
Shipping Board should have the pow
er to sell the ex-German ships, Con
sell in the joint resolution Sena-
tor Ashurst said. "The resolution Is
silent on the question OF selling the
ex-German ships and in such a case,
as every lawyer knows, silence Is
negation."
In other words Congress expressly
intended the Shipping Board should
not have the power to sell the ships,
the Senator added.
Helped Frame Resolution.
A lawyer himself Senator Ashurst.
as a member OF the Senate Judiciary
Committee. assisted in framing the
joint resolution.
He said he thoroughly agreed with
the grounds for Mr.. Hearst's action,
as set forth in the bill for an injunc-
tion. which resulted in Chief Justice
Mccoy, of the District OF Columbia
Court, issuing yesterday a rule re-
curing Payne and his associates on
the Shipping Board to show cause on
Monday--the day they propose to auc-
ton or the ex-German ships-why
they should not be enjoined from Of
fering the ships for sale.
He would point out in the Senate,
as had been in Mr.. Hearst's bill, that
IT was expressly stated in the joint
resolution that the Shipping Board
was only authorized and empowered
to Operate" lease, charter and equip
the ex-German ships. He would also
call attention to Mr.. Hearst's con-
tention. with which he was in thor
ough accord. as set forth in the bill:
"And that the Congress has not au-
thorized the President, or tho defend
ants herein, or any other Govern
mental department or agency, to sell
OF otherwise dispose OF the vessels
taken over pursuant to the authority
of said joint resolution. and that in
the absence OF such explicit authority
by Congress there exists no power n
the defendants to sell or othcrN, .sc
dispose OF the vessels"
No Power To Sell.
Senator Ashurst said too much en-
phasis could not be placed on the
fact that the joint resolution gave
the Shipping Board no power to dis
pose OF the ships; that 1t merely en-
powered the board to operate, lease,
charter and equip them"
an attempting to sell the ex-Ger-
man ships the board is, therefore. at
tempting to exercise a power il does
not possess. Any attempt by II to-
exercise such a power would, indeed,
be acting ultra wires (beyond pow
err. as specified in Mr.. Hearst's BILL"
Senator hshurst said. mo construc-
tion can be placed on the joint reso-
luton which would justify the pro-
posed sale by the board of ex-Germsn
ships which were turned over to It by
Congress in the name of the Amcri-
can people"
After looking into the law, SEN
ator Ashurst said he desired also to
emphasize the distinction between
tho right OF tNa Shipping Board to
sell ships OF own construction,
and its complete lack of power to
dispose of the eE-German ships which
IL did not construct.
Under the act OF Congress OF Sep
tember Z, 1916, creating the Shipping
Board and the Emergency Fleet Cor.
poration, the board "may charter.
lease or self' to citizens of tho
United States such vessels as II con-
structed or constructs. but under the
joint resolution providing for the
seizure OF the ex-Germsn ships the
word. SELL was purposely omitted.
Senator Ashurst pointed out.
Calls silence Nes.tios.
"The joint resolution specifically
refrains from using the word, 'selL
the Senator said. Gould its mean
ing or purpose be made any clearer
Certainly, under such circumstances,
silence may be regarded az negation.
In other words, the right OF the ship
ping Board to sell the eN-Germnn
ships was specifically refused or je-
MED by Congress. There can be legal
dispute about that"
Senator Ashurst was only one Of