Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-13
SHIP FIRMS SEEK
FREIGHT SERVICES
Rival Bids Submitted for
Two Lines Still Under
U. S. Control.
BY ]. C. ROYLE.

The United States Shipping Board
is navigating in hot water again. The
controversy is in connection with the
last two freight services across the
Atlantic with which the Government Is
connected, the Americana Line
and the American Diamond Line. 1t
has been proposed to sell these lines
for private operation. There have been
rival bids for these services, and the
controversy started a year ago when
these bids were submitted.
The United States Lines, Inc, which
took over from the Shipping Board It's
most important fleet two years ago, is
very anxious to acquire these freight
services to round out its services. 1t
is felt this would complete its North
Atlantic service and aid it to meet the
terrific competition of foreign vessel
owners. The two fleets comprise 1s yes
sells. The United States Lines has Of
fered $25 ton for these ships This
was the highest of the four bids re-
ceived by the Shipping Board.
Two Other Claims.
Two other shipping companies, how
ever, have interjected their claims.
The Black Diamond Steamship Cor
poration and the Cosmopolitan Shipping
Co. now operate these two freight lines
under a contractural agreement with
the Merchant Fleet Corporation. the
ship-operating agency of the Shipping
Board. They want the lines they now
operate for their own and have claimed
preferential rights under the shipping
laws.
Under the original bidding the Black
Diamond and Cosmopolitan Companies
offered about S14 a ton for the vessels.
Later the Black Diamond raised its bid
a trif1e higher than that of the United
States Lines, but the Cosmopolitan Co.
stood pat on the original bid, claiming
it was entitled to the award of the
France Line under the preferential pro-
visions of the merchant marine act of
1920. The Black Diamond Co. charges
! that the United States Lines is attempt
ing to get a monopoly of American
| shipping
! 1t is stated on reliable authority
| that the Shipping Board stands to 2
in favor of accepting the United States
Lines and that only Chairman T. v.
! O'Connor and Vice Chairman e. G.
| Plummer favor awarding the vessels to
| the managing operators. The contro-
versy has led, incidentally, to two
resolutions in Congress seeking investi-
| cations into transactions of the board.
The Presidents interdepartmental
committee, which comprises Postmaster
| General Brown, Secretary of the Navy
Adams, Mr.. O'Connor and Secretary of
| Commerce Lamont, has its finger In
the pie, since 1t passes on ocean mail
contract provisions. 1t also has been
unable to come to a definite conclusion.
Committee to Be Named.
President Hoover now has stepped In
| himself and announced that he will
! appoint a committee of outstanding
business men to go over the ground the
Shipping Board has covered. He Sc
lected H. G. Dalton of Cleveland as
chairman of this committee. This move
has unquestionably aroused resentment
on the part of some members of the
board and of the shipping world. It Is
felt by these individuals that the COM
! mittee will uSurp the power of the
board as given it by Congress.
In the meantime considerable delay
in the solution of awards of the two
freight lines is in prospect.
Copyright, 1900