Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-14
COMBINE REVEALED
in u. S. LINES BID
Dollar and Dawson Backing
Chapman in Struggle
for Control.
BY the Associated Press.

BY the Associated Press.
NEW YORK, August 14.-R. Stanley
Dollar and Kenneth B. Dawson. Pacific
Coast shipping operators, are associated
with Paul W. Chapman in his efforts to
retain control of the United States
Lines, it was learned today.
Mr. Dollar is president of the world
wide Dollar Line shipping interests and
Mr. Dawson operates one Of the largest
fleets of cargo vessels on re Pacific.
The s.-..,,r-~t Of Mr.. Chapman by
thee steamship operators came as a
distinct surprise to shipping circles, and
agents of foreign lines hurried to notify
their home Offices of the prospect of
new gigantic American shipping COM
bine in the highly competitive North
Atlantic trade. in which the United
States Lines alone now fly the United
States flag.
Refuse to Comment.
Neither Dollar nor Dawson would
discuss their stand or confirm the
rumors of a new combine.
The Chapman-Dollar-D Dawson group
Is opposed by the International Mer-
camille Marine and the Roosevelt
Steamship Lines, which have Jointly
made an offer to the United States
Shipping Board for the United States
Lines.
T. ". O'Connor. chairman of the
United States Shipping Board, said the
proposals would be considered at meet
Ing today, and that a statement might
be issued in washington next week.
The Chapman group submitted bid
Offering to pay $3,170,000 in liquidation
of existing Indebtedness" of the COM
pany to the United States Shipping
Board, which Mr.. Chapman described
as "the highest bid filed"
The Chapman bid was submitted on
behalf of his Associates and a subStan-
tial majority of the present stockholders
of the United States Lines, who have
already invested So, 400, 900 in the COM
panys business" The stockholders ex-
coed 4,800 and live in virtually every
State of the Union"
Mr.. Franklin said his bid follows
precisely the terms and conditions on
which bids were called for but
the only other bid submitted--the
Chapman Offers not based on the
terms and conditions on which bids
were invited by the United States Ship
ping Board"
Leviathan Mentioned.
Both offers mention the Leviathan
specifically. The Roosevelt Franklin bid
proposes to take it over and operate it
for at least five years to Southampton,
with not less than seven sailings year.
Mr.. Chapmans offer proposes that
the Shipping Board reacquire the
steamships Leviathan, George WASH
ington and America, for which the
United States Lines Inc would receive
a net credit of 5000 500 on its Sill
257. 400 Indebtedness to the Shipping
Board. The $317o. 900 balance Of in
de1tedneSs would be covesed by the is
suance of Al per cent notes payable
in IL equal annual installmentS begin
ning September 1, 1884
FUNDS necessary for the completion
Of two ships under construction, pro-
viied that a construction loan from the
Shipping Board be granted to United
States Lines, Inc, are pledged In the
Chapman offer.
The Roosevelt Franklin proposal
woald create a new company for the
ore alton of the ships, which would
have 500 900 shares of preferred stock
and 2, 400, 900 common shares. both OF
no par value, but with voting power.
New Capital offered.
OF the preference stock, $50, 006
SIlaTRS W0ulu De sofa LOT S5s0Uu,UOU CaSn.
The new company would offer to eX-
change 500, 900 shares of its common
shares with the preference sharehold-
ers Of the United States Lines, Inc, on
q share-for share basis. Eighty-five per
cent Of the common stock of the United
States Lines, Inc, would be trans
ferred to the new company without
payment.
The new company offers also To pro-
vide at least $500, 900 of additional
capital through the sale of ether pref