New-York tribune., 1920-02-21
President Reveals Agree
ment to Credit Germany
With Excess Over U. S.
Merchant Losses i'm War
Asks $5,O00,O0O
Bond of Hearst
Payne Board Wants Pub
Usher Held Responsible
for Cost of TyingUpSale

WASHINGTON, Feb. 2O.-Presiden,
Wilson fatty denied to-day in a formal
communication to the Senate that he
had any agreement or understanding
with British officials regarding disposi-
tlon of the feet of former German lin
ers around which, since they were Of
tered for sale by the Shipping Board
has ragged 81 controversy into which
Congress- courts and government agen-
cleS nave been drawn.
The Presidents letter was in re-
sponse to a resolution offered by SEN
ator Brandegee, of Connecticut. Repub-
llcan, and adopted by the Senate, in
curing of the President whether such
an agreement existed.
There is not, nor has there been, any
agreement or understanding between
the President of the United States and
oinclals of GNeat Britain concerning
the sale of the eX-German vessels in
possession of the United States," Mr..
wilson said, nor is there any agree
ment or understanding with respect
to what disposition shall be made of
those ships by the United States.
~ believe the above information
fully answers the Senate inquiry"
hcfCdtS I-dTIS agreement
At the same time, however, and "in
order that the Senate may be in pos
session Of all the information there is
in any way relating to the vessels in
question" the President transmitted a
copy OF a hitherto unpublished tenta-
tive agreement reached in Paris that
Germany eventually would be credited
before the Rcparations Commission,
Plus valuation Of the ships in excess of
merchant tonnage losses Of the United
States during the war. In no case
would title to the ships Themselves
pass from the United States, the agree
ment provided.
The following developments preceded
the receipt Of President Wilson'S COM
munication in the Senate:
Associate Justice Bailey, in the Su-
premc Court of the District of Colum-
bia took under advisemcnt the applica-
that William Randolph Hearst, on
whose petition a temporary injunction
against the sale of the ships had been
issued, be placed under $1,000 900
bond to cover peN bic losses TO the
government due to the tying up Of the
craft by legal proceedings. Counsel
for the board estimated the daily pros
pectlVe loss ct S20,UOO and pointed out
that contract to sell one of the ships
for $2,000,o00, held up by the injunc-
ton, expired to- day. Justice Bailey
said he would be prepared to fix the
amount of the bond tomorrow.
The Senate Interstate Commerce
Committee decided to recommend pas
sage of a bill drawn by it's chairman,
Senator Jones, of Washington, Repub-
lican, deferring sale of the ships un4
til they shall have been refitted for
commercial service by the Shipping
Board and Congress shall have laid
down national shipping policy.
The House Merchant Marine Com
mittee embarked on a separate inquiry
in which Chairman John Barton Payne
and Vice-Chairman Stevens of the
Shipping Board reiterated their diver
gent views as to the advisablity of
selling the ships at present
Tie proposed agreement transmitted
by the President was signed in May,
COOtiu1ed N, 1100e fO2ty-