Evening star., 1925-04-01
SHIP SALE ROW DUE TO FLARE
UP IN CONGRESSIONAL DEBATES
Boards A,card of Fiue Vessels Dollar Line Will Be
Appealed by Opponents of Policy-Vote
Vas to 3.

f. Chamberlain of Oregon, counsel for
the Pacific Mail, in connection with
consideration of the proposals.
Chairman O'Connors statement, in
this connection. said "the best that I
can get from the advice of the on
cials Of the Fleet Corporation. Presi-
dent Palmer and General Manager
Cone, as given before the board, sup
ports the recommendation" of the
sales committee for acceptance of the
Dollar bid. and that of Mr.. Chamber
lain declared "the board has ignored
the bid of the Pacific Mail to buy the
, ships for s1,125.000 more than the
Dollar offer under plan suggested
and urged by a committee headed and
composed of Chairman O'Connor.
President Palmer and Secretaries
Hoover, Mellon. Weeks and Wilbur"
Mr.. Palmer was Joined by Mr.. Cone
In saying that neither had been in a
position to submit recommendations
II desired, and indicated that in ap-
pearing before the board both had
replied merely to inquiries as to tech
nical matters.
Comment by Dollar.
In commenting upon award OF the
bid, Mr.. Dollar said:
"On behalf of the Dollar Steamship
Line, / desire to express my salts
faction with the action OF the board
in awarding the sale of the five pas
senger vessels operating out OF San
Francisco to the Orient to US
1T will be our policy to maintain
this service in the same high class
manner as we are now maintaining
the round-the-world passenger ships
with the seven other President liners
purchased by US from the board
we feel certain that both the Gov
ernment and the public will have
every cause to feel well pleased with
the practical working out Of this con-
tract with our company. This ena ables
us now to give a weekly sailing with
passenger vessels from San Francisco
TO the Orient"
Chamberlain Statement.
Former Senator Chamberlain. who
represented the Pacific Mail, said:
The fact that three out of seven
members of the Shipping Board bit
terly opposed the Dollar bid and have
denounced it as violation of the
Jones act is sufficient evidence that q
national blunder will be committe
If the sale goes through. The Jones
act does not oblige the board to sell,
and specifically enjoins the board to
consider the national defense and
the permanent maintenance of stes m
The acceptance of the Dollar bid
is heavy blow to the national de-
fense, because it sells out of Govern
ment hands, subject to only a five
year guarantee of maintenance of
service, five of the small number of
American ships fast enough for naval
auxiliary service. The terms and
conditions of the bid impose no obli-
cation to the buyer to keep them in
e.
years. and 1t is open to grave doubt
that the obligation for service even
that long is binding under the pro!
posed contract.
THE board has ignored the bid of
the Pacific Mail Steamship Co. to buy
the ships for s1,i25, 900 more than the
Dollar OFFER under plan suggested
and urged by a committee headed and
| composed of Chairman O'Connor of
the Shipping Board. President Palmer
of the Emergency Fleet Corporation
and Secretaries Hoover, Mellon,
Weeks and Wilbur of the cabinet.
The Pacific Mail bid contemplated the
gradual withdrawal of the Govern
ment and the devotion of all earnings
on the ships over capital charges to
/ the construction of new ships and re-
! duction of capital Indebtedness. The
| Pacific Mail also would guarantee op-
| Sl dliol IOT ~ lHStedU OF
years.
without some provision for new
| ships to replace the old. there can be
| no prospect of permanent service in
| this strategic route from San Fran
cisco to our Pacific possessions
The Pacific Mail has operated in
! that trade since 1857. 1t withdre w
| its own ships in favor Of the Govern
ment's behind which 1t placed all it's
| organization, going business and good
will. AS a result this has been the
most successful of all Government
lines, and the majority OF the Ship
ping Board now propose to deliver It
over to the Dollar interests, which
| never operated ships under the Amer
| lean flag until they began to pick up
| bargains from the Shipping Board,
| which did not have a ship requisition-
ed by the United States during the
! war because they did not have one
ship under the American flag"