Evening star., 1925-04-01
Continued from First Page.)

the position of a. man who offered a race
horse for sale to the highest bidder who
would promise to keep the horse racing
on the track. The Pacific Mail offers to
buy the horse and pay the greater
amount OF the purchase price for him
out Of purses he might win on the track.
If no purses are won. then the horse
will not be paid for, but will be returned
to the Shipping Board In a rundown or
crippled condition.
"The Dollar company offers to buy the
horse and pay for IL out OF its own
pocket. The boards ship sales commit
tee has recommended the acceptance of
the Dollar bid. The best that I can get
from the advice OF the officials OF the
Fleet Corporation, President Palmer
and General Manager Cone. as given
before the board. supports the recon-
mendation of the committee.
The Shipping Board is attempting TO
get out of the business of operating
ships as rapidly as possible. ard this
can be done only when the ships offered
for sale give promise of making money.
The Dollar proposition is in line with
this policy. 1t is fair to the Government
in the permanent establishment of the
American merchant marine. 1t pays q
definite sum and guarantees continued
operation for five years and IL they
keep them going for five years there is
no reasonable question that they will
keep them going indefinitely"
Lissner States Position.
Commissioner Lissner, in a state
ment. declared the Pacific Mail bid
had disreghrded an earlier agreement
between the ship sales committee Of
the board and the bidders on a set
of terms and conditions under which
the bids would leave open only the
matter of price without varying con-
ditions. This bid. he added. had been
declared Illegal by counsel for the
board because OF some of its condi-
tions. In contrast. he said. the Dollar
hid was strictly in accordance with
the terms and conditions agreed upon
Acceptance of the Dollar bid, he
asserted. was in line with the spirit
OF the merchant marine act to trans
fer Government vessels to private
operation" and is in keeping with
the principle Of liberal sales policy
adopted by the board" The deal, he
added. rs advantageous to the Gov
ernment from the financial stand
be better off TO the extent of several
million dollars through this sale in
comparison with continued Govern
ment operation"
Commissioners Benson, Plummer
and Thompson insisted that the Gov
eminent should not sell the vessels
a all at this time.
Commissioner Thompson stated his
reasons for voting against the sale
as follows:
'The sale of the five ships operat-
ing in the San Francisco Orient serv-
ice was opposed and voted against by
me for the reasons:
"1) The price paid was only one
fourth Of. or $I5, 900, 900 less than, the
amount ii would cost to build the ves-
sells at this time, and one-sixth of,
or s25.ooo.ooo less than, the original
cost of the vessels
"(2) Because the San Francisco
Orient line is showing no money loss
in operation. therefore not necessi-
tating any sale at this time at sac
rifice value to stop any losses requiring
monies from the Treasury of the
United States.
"(S) The sale created monopoly of
American flag passenger service in
the Pacific-Orient trade under one
control and put under one ownership
u of the % President type vessels
the pick of the ships in the American
merchant marine.
90 The sale made no provision for
replacement of the vessels when they
become obsolete over a period Of
years. or enforces no penalty per-
formance bond for the operation of
the ships on the route for stated
period.
"(5) Because the law lays emphasis
upon these elements, specifically en-
joining that sales should be made un-
der conditions which would influence
a prudent, solvent business man in
the sale of similar vessels or property
which he is not forced to SELL and the
sale as made was considered by me as
violative of this injunction, as we'll as
the spirit and intent of the merchant
marine act Of 1920.'
Benson Voices Opposition.
Commissioner Benson said he be-
the board violated practically every
principle and policy outlined in the
Jones merchant marine act.
The Dollar interests said Ad-
miral Benson, ALREADY own seven of
the 502-foot President type ships
which operate in the Pacific and
parallel the present service of the Pa
cific Mail. They also operate the five
535 foot President type ships operat
ing out of the Puget Sound area to
the Orient.
by the purchase of the five ships
being operated by the Pacific Mail
Steamship Co. they gain complete
control of American combination pas
senger and freight steamship service
in the Pacific ocean. This combina-
ton places the five ships still owned
by the Government and operated by
the Dollar interests at a disadvantage.
TT also places the American ship
per. sending his goods through the
Western ports of the Unlrej States at
the mercy of one American operator
or forces him into the nands of The
foreign shipping Interests.
THE unfortunate nature of this
transaction is emphasized by the ;act
that the Pacific in the future is
destined to be the most important
area in which the commercial ana
national operations of the United
States are to be located.
When the sale was announced,
President Palmer of the Fleet
Corporation Immediately emphasized
that he had made no Recommendation
to the board in the matter one way
or the other. He had carefully re-
Trained from giving advice, he as
serted, although he was mentioned in
the statements of both Chairman