Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-08
SHIP SALE DELAYN
ORDERED BY B6ARD
Special Commission to Look
Into Proposals and Give
Unofficial Advice.
BY the Associated Press.

BY the Associated Press. .--rs-.
Facing demands in both branches of
Congress for an investigation Of ,,itS
activities, the United States Shipping
Board decided yesterday TO delay action
on q much controverted shipping line
sale to permit presidential conanliSSien
to study the proposals and advise the
board. .-.rzs>
Three steamship companies the
United States lines, the Black Diamond
Steamship Co. and the Cosmopolitan
Shipping Co.-have bid for the Govern
ment-oWned transatlantic freight line,
the American Diamond and the Ameri-
caFrance lines. Black Diamond now
operates American Diamond and Cos
mopolitan the America France line.
The President asked Chairman T. v.
O'Connor of the Shipping Board to
postpone action on the three bids until
q commission he would appoint could
consider the proposals. Although the
President technically has no Jurisdiction
over the board, 1t decided to withhold
action until the commission could
function.
Resolutions Pending.
Meanwhile, two resolutions calling
for Investigations of the Shipping Board
were pending in Congress. One meas
ure by Senator McKeller, Democrat,
Tennessee, has been blocked by Sena-
tor Copeland. Democrat, New York.
In the House, Representative Lehlbach,
Republican, New Jersey, introduced q
similar resolution. 1t has not been
acted upon.
Sale of the transatlantic freight
lines was delayed for time because OF
pending mail contracts, but last week
the board voted to pass the proposals
to its finance committee for final con-
sideration. The Presidents action ana
the boards move yesterday forestalled
immediate decision.
The contest between the three lines
Tor the two Government-owned routes
over which 10 ships are operated has
been bitter. Original bids were made q
little more. than year ago. The ships
Tor which they were bidding have had
an especially lucrative grain business
recently from New York to Hamburg
and French ports.
Originally the United States Lines of
fered about $25 a ton for the 10 yes
sells, while Black Diamond and CosL
mopolitan bid approximate $14. The
Black Diamond bid later was increased
to slightly more than the United States
offer, but Cosmopolitan commended that
as an operator of a Government owned
line it should be favored under the
terms OF the 1920 merchant marine act.
Arguments Of Lines,
At final hearings on the sale it was
said that United States Lines were at
tempting to establish q monopoly" of
North Atlantic trade, and that this
company sought the new routes as part
OF stock scheme" United States
Lines countered with the assertion that
the freight ships would be q necessary
supplement to present passenger service.
The United States Lines have ibof-
rowed $l5,750,000 out of the merchant
marine construction fund for new ships,
and propose, II they are the successful
bidder in this case, to construct for;
transatlantic service two giant pas
senger ships which would cost About
$3O,000,000 each and have cruising
speed slightly more than that made By
the German liners. Europa and Bremen
on their record, crossings Of the Atlantic.