The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-05-17
HUGHES FORCED
SALE OF VESSEL,
SCION CHARGES
Secretary Reversed Own
Ruling, Representative
Leineberger Says

WASHINGTON, May, 16.--Failing,
prior to his entering the cabinet, to have
Congress enact a bilf authorizing the
transfer Of the seized steamer Martha
Washington back to its original owners.
Charles q. Hughes, while Secretary OF
State, reversed himself and had the de-
cision that he said ought to have been
made by Congress, made by the shipping
board, on opportunities Of men who were
operating directly under and signing
for him." Representative Lineberger, re-
publican, California, charged today be-
fore the House committee Investigating
the board. s.
The Martha Washington was seized
by the United States from Austria dur
ing the war but its original owners be-
came italian subjects upon the annexa-
ton of Trieste by Italy. MIR. Hughes
has formally denied any connection with
the actual transfer Of the steamer and
has stated that his interest in the case
ceased before he entered the cabinet.
Davis Quotes Hughes s.
Mr.. Lineberger's statement followed
the reading by Representative Davis,
democrat, Tennessee, committee prose
cut0r," a statement by Mr.. Hughes IN
December, 1922, to the House merchant
marine committee in which he declared
Congress alone had the power to au-
thorize the transfer, of the Martina
Washington back to its original owner.
Mr.. Davis also had read from corre-
spondence exchanged between the state
department and A. D,>Lasker, former
chairman Of the board, two years later,
in which it was shown the department,
IN n letter signed by William Phillips,
as undersecretary of state. advised ac-
ceptance Of a $50, 900 offer from the
Italian concern for the vessel. Acting
on this advice the shipping board adopt
ed a resolution under which the Martha
washington was sold to the Italians for
the amount suggested.
Representative Connally, democrat.
Texas, pointed out that 1922 600 had
been set by naval appraisers as the
value of the ship but that reduction OF
$4,000 from this valuation was neces-
sary on account Of 'wilful damages
to the ship by her original crew.
RegardlesaAf what other members Of
the shipping board thought, Vice Chair
man Plummer, the commuters chief
witness, testified be was guided in vot-
ing for the resolution passing on the sale
of the ship BY the s"presented values
of the claims against the vessel. The
board felt il was settling a claim
against the United States, he said, and
that these releases from any claims
were more valuable to us than the cash
price"
Admit Lack OF Power
He agreed that the board had no right
to determine a controversy with regard
to the original seizure of the vessel but
so far as the claims questions was in
volved, it was Influenced" by the rep
reservations of the state department
"Then if you are not liable, this
transfer was a mistake, was it not?
asked Mr.. Davis.
Eyes, it was" the witness agreed. !.
Granting the 100000 purchase by the
Italians was simply a subterfuge" Mr..
Plummer was asked if he. then would
agree that the sale Vas wholly illegal.
81 do not think that or any other
member of the board would be party
to a subterfuge which would cheat the
United States" he asserted.