The New York herald., 1921-09-30
REJECTS WOOD SHIP
BIDS; SUIT is LIKELY
Offer of S2,100 Each From
New York Company Turned
Down by U. S. Board.
1876 VESSELS INVOLVED
Counsel Admits Mistakes in
Other Substituting Co.'s
Head to Make Statement.
Special Despatch to THE NEW YORK HERALD.
! New York Herald Bureau
ton nj (


New York Herald Bureau,
Washington. ID. c.. Sept. 90.
The Shipping Board, 1t was announced
this afternoon by Elmer Slesinger.
general counsel. has rejected the bid of
the Ship Construction and Trading Com
pany OF New York of $2,100 each for
the wooden ships. Mr.. Slesinger stated
that the legal department of the board
had found that under section five of the
Jones law the board could not legally
sell the ships 70 the New York concern
because OF irregularities in the bids.
Bids were opened July 30.
1t is understood the Ship Construction
and Trading Company. whose president,
Frank j. Fulton. Is now in Washing
ton. will f1le suit to compel the board
to go through with the deal. The basis
or the suit will be resolution adopted
by unanimous vote of the board for ac-
cepting the bid as amended on August
3. The amendments, 1t is claimed, had
to do with the character and nature of
the supplies and equipment to go with
the boats. The principal points on
which Mr.. Slesinger and his associates
in the legal department advised the
board to reverse its action are that the
Ship Construction and Trading Com
pany did not present certified check
with Its bid, that there were ''numer-
Gus other conditions in the bid which
were not in conformity with the ad-
vertisement," that the advertisement
did not provide for the sale of anything
but the wood ships themselves. and that
there had not been an appraisement of
the vessels
1t developed during the discussion
with Mr.. Slesinger Of his formal state
Tent on the case, that several wood
ships have been sold by the board since
July 80. and that In two cases the deals
were closed with bidders who had not
presented certified checks with bids. Mr..
Slesinger said frankly that he consid-
cred the board had made mistake In
selling these ships. The deals for others,
he said. that had been consummated,
had come as the result of regular bids.
Ten ships now in English ports. Tor
which English interests have made
offers, have not vet been sold.
Mr.. Slesinger also alleged that fifty
ships had been laid aside for the pro-
posed pontoon bridge across the Hudson
and that thirty-three others were sub
ject to various liens and were excluded
from the Ship Construction and Trading
Company deal. One. the Moritz, Is being
held up by Armour & Co., who have a
claim against the board for $250,00o on
account of meat spoiled white being
carried in this ship. Mr.. Slesinssr said
he hoped to so bring it about that TIE
board could let Armour & Co. take the
ship for its claim.
The original fleet consisted CT 2S7
ships, Of which 101 we're laid aside or
sold, leaving 1876 involved In the deal
with the Ship Construction and Trading
Company. practically all of which are
tied up in James River.
Mr.. Slesinger said that two days
after the s2,100 bid had been made by
the New York concern another concern
offered $4,000 each for the ships. IL
developed that the oIfer was made by
representatives OF Herbert Fleishacker
of San Francisco. During the negotia-
tions the Ship Construction and Trading
Company and the Fleishacker represen-
tatives pooled their interests and have
been acting together. Other higher
offers have been received. said Mr..
Slesinger. but the board has not con-
sidered them.
At his hotel here tonight Mr.. Fulton
said he might have statement to give
out later. but would neither confirm nor
deny the report that he intended to
bring suit.