The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-04-03
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HI)L[)SlJP
DEAL
Judge Hitz issues Restraining
order-case to Be Heard
April 13

Justic William Hitz, IN the Dis
trict Supreme Court today, issued
! restraining order against the.
United States Shipping Board,
preventing it from selling the five
great President-type liners, now
operating in the Pacific, % che
Dollar Shipping Lines.
The restraining order was
sought by the Pacific Nail Steam
ship Corporation, which now oper-
ates the vessels under lease
from the board, and follows q
bitter battle between the two
concerns over the right to pur-I
chase the ships. The board q
few days ago accepted the Doll
lar bid, in preference to The Pa
eific Mails offer.
Argue Case April 13
The order was made returnabie
on April IS. at which time counsel
for the two concerns. and counsel
for the Shipping Board viii go be-
fore Justice Hitz and argue the
legality Of the Boards action in
accepting the Dollar bid.
The complaint filed today in the
District Supreme Court by the
Pacific Mail Steamship Company,
which claims that the defendant
Shipping Board in voting to accept
the Dollar bid OF $685. 900 and In
refusing to consider plaintiffs bid
Of IS, $50. 900. acted illegally.
The Pacific Mail attaches sworn
statements OF Commissioners Ben
son. Plummer and Thompson, OF
the Shipping Board, denouncing the
sale on the ground that the price
Is only one-fourth of the cost OF re-
placing the vessels and that the
line in which the ships are operated
for account of the board is now
making money, and there is no
necessity for sacrific and that the
sale creates monopoly OF the
American flag passenger service
under the control Of the Dollar in.
terests.
Sale Not Prudent, Claim
IL is also stated that the sale
makes no provision for replacement
Of vessels and enforces no penalty
performances bond for maintained
operation and that the sale is not
prudent or businesslike.
Plaintiff, represented by Attor.
news George z. Chamberlain, for
mer Senator from Oregon, Charles
J. Fay, Harold J. Roig and Bo
litha J. Laws, states that the pro
= posed sale is illegal because the
advertisement. of the board for bids
stated negotiations may be con
tinued and all offers received before
final award will be considered" and
that the Pacific Mall presented an
offer Of $3.50 900 to meet the legal
objections raised by the boards
counsel.
points out that during the war the
facilities of the Dollar interests
were operated under foreign flags
under the American flag and were
Communicated. by the United State.
Government and paid to the United
States Government $1,000. 900 Ia
earnings and more than $4,000, 00e
in taxes.
The Shipping Board, through
Commissioner Meyer Lissner. chair
man OF the Ship Sales Committee
Immediately announced this after
noon that it would contest the In
junction. LiRsner, who supportef
fhe Dollar Lines bid, said tn
Board would appear at the hear
ing April 10 and defend it's actor
in awarding the giant liners to tn
, Dollar Line.
The court fixed a bond of $10,0Ol
for the Dollar Lines appearance
when the permanent injunction Il
argued. II. this should be granted
the whole sale would be inyaIidatet
end the Shipping Board ordered Il
0liett nsM BIDS