Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-02-20
LEGAL FIGHT EXPECTED
OVER PROPOSED SALE
OF GERMAN LINERS
Continued From Page ID

was made last Saturday by Will
liam Randolph Hearst and hear
ngs on it were held last Monday,
while the ships were being offered
lat public auction, The board an
nounccd yesterday that it has de-
lidcd to reject all of the bids re-
cclved. At the same time 1t again
asked congress for authority to
again offer the ships at public auc-
ton,
chairman Payne of the shipping
hoard announced that he would
recommend to the department of
Justice that an appeal from the
temporary Injunction order would
be filed immediately. Meantime,
he SAID, il was expected that Mr.
Hearst would be required to fur
lush bond to protect the board
Iagainst loss by reason of the ships
lying idle,
Justice Bailey's decision sustain
cd contentious Of counsel for Mr..
Hearst that the German ships were
seized under distinct legislation and
that the boards power of DISPOSE
ton did not apply to them. AS
sistant Attorney General Ames,
representing the government, con-
tended that the law of 1917 was
broad enough to cover the ships in
question in that it authorized sale
of vessels acquired previously or
thereafter.
Possible effect of the decision on
German froighters already sold by
the board caused considerable spec
ulaGUn among attorneys. Although
the vessels involved in the litigation
are passenger liners, the board has
sold a number Of former German
merchant ships.
Chairman Payne issued the fol-
lowing statement:
"Not having seen the opinion Of
the court, | cannot comment upon
it. The language in the emergency
shipping act, giving the board the
right to sell all ships of whatever
kind, or from whatever source, and
the proclamation of the president
based upon the act leaves the queS-
ton of our right to sell free from
doubt
"Tho case is in charge of the de-
partmcnt Of justice and that dc
partmcnt of course, will manage it,.
My recommendation will be that
an appeal be at once prosecuted,
and that we should at the first mo-
ment possible demand a bond to
adequately protect the United
states. The daily expense of talk
ing care Of the vessels as they now
lie in the harbor IS some $4,000,
The complainant should be re-
CURED to give bond to pay this sum
and such damage as may result
from our failure 10 sell the ships,
The bond should cover this sum,
and any loss which the government
may sustain by reason of its in
ability, due to the injunction, to
dispose of the ships at the best
prices Obtainable."
Mr.. Stevens advocated ALLEGATION
of the ships to American concerns
to he operated for the government,
on a division Of profits basis on
routes specified by the shipping
board.
John d. York, Chicago marine
engineer, said the International
Mercantile Marine had offered
only $50 a ton for the former Ger
man ships, but paid $50 a ton for
British tramp steamers, although
the German Vessels were "inesti-
mahIy superior" to the tramp ves-
sells He added that payment OF
100000 year to the company for
operation of the American built
steamers st. Paul and St. Louis as
mail carriers was virtually a gift
and gratuity' because the bulk of
the mail for many years had been
carried on British and German
ships. Most of the company's yes
sells, he added, were differed and
manned by British seamcn ncor-
pQrated in the British naval re-
serve whom the war broke out,
Chairman Jones announced that
the committee would meet Friday
to decide on a policy with regard
to the sale Of the vessels