Evening star., 1925-07-12
Ford's Bid for the Ships.

fered by the United States for scrap
turned UP after the bids of potential
competitors have been opened and
made public, and after the bid of one
of the competitors was recommended
For acceptance by the Fleet Corpora
ton and was turned down by the
Shipping Board. because, it is said.
Chairman O'Connor OF the Shipping
Board declared that he knew a better
bid would be made. The circumstances
surrounding the whole transaction TO
date seem 10 lay the Shipping Board
open to a charge of attempted sharp
practice. They require some explana-
ton. which doubtless the chairman of
the Shipping Board will make
At the time of the original opening
of the bids no proposal was on hand
from Henry Ford. But dispatches
from Detroit insisted that Henry
Ford was a bidder, and that he would
be found in the running before the
sale of 200 ships was completed. The
files of the Emergency Fleet Corpora
ton were searched in vain for any
Ford bid The bids received were con.
sidered by the Fleet Corporation. and
in the end the bid of the Boston Metal
and Iron Works of Baltimore, totaling
81 800, 900, was approved by President
Leigh c. Palmer of the corporation
and submitted to the Shipping Board
for its approval. But the board, with
only three members present, less than
quorum, rejected the recommends.
ton by q vote of two to one. And. ac-
eording to reports, Chairman O'Con-
nor told his colleagues on the board he
was sure a better bid would be sub
mitted. 1t now appears he was right
in this conclusion, since the Ford bid
is said to be several hundred thousand
dollars higher.
But If Mr.. O'Connor had this in
formation, why did he hold it out?
Why did he not inform the Fleet Cor
poration, instead of allowing it to go
ahead and recommend the acceptance
of the bid of the Baltimore company?
Could it be possible that the chairman
of the Shipping Board was desirous of
showing to the President and the pub.
lie the wisdom of continuing the pres
ent plan of having the board speak the
last word on ship sales? 1t does not
seem reasonable to suppose that the
chairman of a great Government
agency like the Shipping Board would
adopt such methods. even in a desire
to embarrass the Fleet Corporation
president and to enhance his own
value. But if this has happened it
shows a lack of cooperation and COM
prehension of the public business on
the part of the chairman that is, to
say the least, remarkable.
But the case has a different angle,
just as serious. Will the prospective
purchasers Of the Government mer-
chant feet be inclined to believe thew
can receive a square deal under such
proceedings? Here is a bidder, Henry
Ford, allowed to come in after his
competitors. have announced their
bids, with full information, and outbid
them. Here is the Shipping Board
presumably acting upon assurance of
its chairman that he has some knowl.
edge which leads him to believe that
IL pending bids are rejected a better
bid will be submitted The published
accounts declare that Ford's agent
was in Washington June 80 when the
original bids were opened, and one
from Ford was not among those sub.
mitted. Further, it is reported that
the agent conferred with Chairman
o'Connor prior to the rejection by the
board of the bid of the Boston Metal
and Iron Works of Baltimore.
The bid now submitted by Mr.. Ford
for the ships was laid before Chair.
man O'Connor and did not go first to
the Emergency Fleet Corporation.
which, under the wishes of President
Coolidge, is to conduct all negotiations
and sales of the ships, instead of the
board or individual members thereof
By the chairman, the bid, unsealed
was transmitted to President Palmer
who had it sealed. 1t will be finally
considered July 16, when a decision is
again to be made.
OF course, every one wants the Gov.
ernment to sell its ships to the best
advantage. But the transactions for
the sale Of the ships should be con
Quoted in a manner at all times above
suspicion.