The Barre daily times. (Barre, Vt.) 1897-1959, 1920-02-18
BIDS ARE FAR BELOW
THE VALUE OF SHIPS
Because of the Uncertainty
Whether the Sales Would
Actually Be Made, Ac-
cording to a Statement
Made by Chairman Payne
To-day.

Washington, D. c., Feb. lS.-Rejec
tion of all bids received for the 81
former German passenger ships Offered
for sale by the shipping board wa
recommended to the Senate commerce
committee to-day by Chairman Payne
of the board, who asked authority t
renew negotiations for sale of the yes
sells for operation under the American
flag.
The boards recommendation was
contained in the following resolution
submitted to the committee:
Resolved. that with the report sub
hitting the bids to the Senate and
House committees, the board states
that it proposes TO take the following
action:
THE board believes that i'll view ot
the uncertainty as to whether the sales
of the ex German ships would actually
be made, the bids received are much
less than can be obtained by further
negotiations.
"Resolved, that the bids received on
the goth of January in response TO the
advertisement for sealed bids, and
those received at the public auction
held on the 10Th and 18th instant, be
the same and are hereby rejected and
that the checks of the bidders be re-
turned.
Resolved further, that the sales di-
vision be and it is hereby instructed to
negotiate further fon the sale of the
said ex-German passenger ships on the
terms heretofore announced in the or
iginal advertisement. That is
"A-That they be sold to American
firms, corporations or persons, for use
under the American flag.
"B--And offered with reference to the
routes or services established by the
board and that each negotiation, when
the highest price possible is reached, be
reported to the board for its action
The resolution was embodied in a
prepared statement which Mr.. Payne
read to the committee He declared
that the board had sold 1873 ships in
accord with Its policy TO dispose of the
feet to American citizens for operation
under the American flag and that Is
former German cargo vessels were In
cuded in this number. The price re-
ceiyed was S03 .545,047
Chairman Payne said if the congress
desired to change this policy to public
ownership OF ships the passenger liners
should not be sold and Congress should
direct the board to spend the S75,-
100000 estimated as necessary TO con
vert them from troop to passenger YES
sells.
ut should be understood" he said,
nthat the ships, whether owned by the
government or by private capital, must
In either case be operated by the ship
ping companies which are bidding for
the ships The government has no ade-
quate organization for the direct oper-
alton of ships
IF the government continues to be
the owner. it must pay the operators
fixed fee and a commission upon re-
reipts and take whatever profit re-
mains, or if no profit remains, must
bear all the losses
The chairman went on to say that in
accord with the Joint resolution Of Con
gress under which the ships were taken
over. a naval board had appraised the
raft and that the prices at which the
board could sell now were substantially
In excess of the appraised value.
Mr.. PAYNE said passenger ships were
scarce now and building prices high.
hut that these conditions might change
and the value of the ships be CORE
spondingly lessened.