The Washington times., 1925-04-17
SHIPPING BOARD
SPLIT ON SALE
Of SHIPS
Majority Members Ask Suit Be
Dismissed-Minority Back
Mail Line

Asserting the courts have no
right to question acts Of Congress,
the United States Shipping Board
today requested dismissal of the
Pacific Mail Company's plea for m
injunction to halt sale Of five pas
senger liners to the Dollar in
tereSts.
Citing the Merchant Marine Act
Of 1920, the board, in its answer
filed with the District Supreme
Court declared 1t was complying
with a mandate of Congress in ac-
cepting the $685. 900 Dollar offer
for the ships which are now oper-
ated out of San Francisco.
Decision Monday.
A decision on the boards plea
will be made next Monday by JUS
tice Hitz.
Facts cited in the Pacific Mail
complaint, it was further asserted,
are not sufficient to give them q
right to question a board action.
The Pacific Mail is contending
now operate will work a great
payers because OF the low .ale
price. # e.
The marine act, according to the
brief, gave the board almost I'M
limited discretionary power in dis
posing Of its holdings. For that
reason the Pacific Mail, which was
an unsuccessful bidder, has no re-
course at law, the answer said.
Ships Were Losing Money.
Answering charges that the five
ships constitute the most profitable
line operated by the board AMI
therefore should command a rela-
lively high sale price was the fla.
assertion that a loss of 1882, $40
was sustained In 1923 and $1,127, 046
In 1924.
The criticized alleged
extravaganza Pacific Mail operation
Of the boats, declaring that as re-
Gently as last year cancellation OF
the agreement was considered be-
cause Of wasteful repair and fuel
oil bills.
Rather than being worth $780,
0OO- each as allegeG by Pacific Mail
the boards answer declared they
were appraised in 1929 at $1,000, 900
and depreciation since then has made
the Dollar offer practically approx
mate their real worth.
Dollar Line Now Sued
Almost simultaneously the Pacific
Mail amended it's brief to make r..
Stanley Dollar and the Dollar
Steamship Company co-defendants
with the board in the injunction
proceedings.
Commissioner e. c. Plummer. on
the heels Of the new moves. an
nounced that he and Commissioners
Frederic I. Thompson would i'm
mediately file an affidavit with the
court to make their position in the
sale clear.
First Split In Board.
Plummer's move marked the first
out and out split, in boards ranks
Of a definite alignment of the two
minority members with Pacific Mail
IN court to prevent the sale.
Commissioner w. s. Benson, al
though opposed to the Dollar sale
and aligned with his two colleagues
on policy, has refused to join the
signing the minority affidavit 1t
was learned today although pres
sure was being brought to bear to
swing him into line.
Denies Claims Of Board.
Gale H. Carter. president OF Pa
cific Mail, declared the boards an
swer did not represent the entire
membership, but only four Of the
seven members. He denied the
ships were losing money and de-
clared IL the ships were not profit
able neither he nor Dollar would
have bid on them.
Practically every vital statement
In the boards answer has already
been contradicted in public state
ments Of the three members who
voted against and denounced the
sale as violating every principle of