Evening star., 1925-04-01
Opponents Planning Appeal
on Boards Award of Five
Vessels to Dollar Line.
PACIFIC MAIL ASSERTS
ITS BID BEST FOR U. S.
Vote of 4 to 3 Favoring Former
Company Strongly Defended and
Attacked by Officials.

With every prospect OF the de-
velopment of a serious controversy.
! in which Congress may be asked to
take a hand and which may be car
| ried to the President. arrangements
! for the sale of FIVE ships operating
out of San Francisco to the Far East
/ by the Shipping Board to the Dollar
| Steamship Co. were going forward
today.
! BY vote of 4 to the Shipping
| Board yesterday decided to accept
! the bid of the Dollar company for
! these ships, which have been oper-
| ated for some time by the Pacific
! Mail Steamship Co, the bid Of that
| company being ignored
| Charges that the Dollar company is
! seeking monopoly OF shipping in
/ the Pacific: that the price to be paid
| for the ships, s5,625, 900. is far too
i low in view of the fact that the
| ships are now being operated at a
! gain and not a loss. and cost the
Government S30,o00,o00 have been
made. Representatives of the Dollar
] company are here to complete the
| sale contract and representatives. Of
! the Pacific Mail Co. are consideriue
! further steps in protest of the award
! of the majority of the Shippin;,
I Board.
Ship Executives Here.
r. Stanley Dollar, vice president Of
| the Dollar Lines, expects to remain
here until the end of the week in con
/ nection with drawing UP the sales
| contract. Gale H. Carter president
of the Pacific Mall Company, is also
| here to determine what shall be the
course of his company in regard to
the matter.
! The sale was ordered yesterday by
a majority of the Shipping Board
| only after strenuous objection on the
part of its members
/ Chairman 0'Connor and Commits
sioners Lissner, Haney and Hill voted
J for the sale. while Vice Chairman
| Plummer and Commissioners Thomp-
! son and Benson voted against it and
1 Incorporated in the boards minutes a
: protest that the ships were being sold
| for S25, ,0o0, 900 less than their orig
! inal cost and SIS. .o00, 900 less than i,
/ would cost TO build them at this
! time.
| Climax of Long Fight.
The sale came as the climax to
| long fight and a series of conferences
/ and hearings punctuated with sensa-
| tional charges. There were intima-
tions that the Pacific Mail Steamship
! Co. which has been operating
the ships for the board as the Cali
| fornia- Orient Line and which had bid
for their purchase, might take steps
opposing consummation of the deal
and possibly bring the matter before
Congress at the Winter session.
Through the sale, which disposes
Of the complete California-Or
Line service, the Pacific Mail would
find itself restricted on the Pacific
coast to Central American and Allan
tic business, but ii was indicated that
| it would not rest content TO abandon
! the orient field in which ii has ope-
rated continuously since 1867, without
an effort to restore its service there
Statements of Pacific Mail repre-
sentatives on this possibility, how
! ever, were withheld here last night,
while Mr.. Carter also declined to dis
cuss the question.
Benson Motion Rejected.
The vote on accepting the Dollar
bid was preceded by a vote on a mo-
tion by Commissioner Benson to re-
ject both the Dollar and Pacific Mail
bids. This was seconded by Commits
sioner Thompson and was rejected.
8 to 4.
|. Commissioner Lissner, who is
chairman of the ship sales commit
tee of the board, which favored the
Dollar bid, then moved to adopt the
committees report and accept the
Dollar bid. Commissioner Haney of
the ship sales committee seconded
the motion. which was adopted, to
g. The third member of the com
mittee, Commissioner Hill and Chair
man O'Connor of the board support
ed this motion. In both votes the
lineup was the same.
Chairman O'Connor in casting his
vote declared Congress had directed
the Shipping Board to develop and
maintain a merchant marine and
had directed the board to sell ships
to Americans who will keep the ships
going The Dollar bid, he asserted.
was clear cut while the Pacific
| Mail bid was uncertain"
EIaborates His Views.
Chairman o'Connor added in
statement:
Il Congress has directed the United
States Shipping Board to develop and
maintain a merchant marine and mas
authorized and directed the board TO
sell ships TO Americans who Will keep
the ships going. The ships In ques-
ton were duly advertised. Two BIDS
have been received. For these same
ships the board had asked $1,50o,00o
per ship.
THE Stanley Dollar bid is clear
cut. He offers to buy five vessels
| at s1,125,000 per shlp' one -thiru III
cash the balance secured by first
mortgage, with interest at AZ per
cent per annum, guaranty of opera
tion. and in all respects he Legally
binds himself to comply with the
terms of sale imposed by the board.
.aT-he Pacific Mall bid Is uncertain.
They offer to organize corporation; TO
nav into the treasury OF such corpora
tion $3.50, 900 for the purchase OF COM
mon stock. and that corporation for the
Ave ships would then turn over to the
shipping Board the $1,250,o00 in cash
and ali of the preferred shares OF stock
al mar value of $5.500.000, and that IL
there be profits during the first three
wears beyond AZ per cent on preferred
stock and after per cent dividends
have been paid on the common stock
held by the Pacific Mail Steamship Co,
the balance would be used for the re-
placement of ships, and after the first
three years SO per cent of such balance
would be set aside as a building fund
and so per cent used for the redemption
| stock.
..If the board accepted the Pacific
Mail Steamship Co.'S bid it would be In
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