Evening star., 1951-04-07
Sawyer Is Cited
ForContennpti in
ShiipLineFi
FoiIure to Obey
Courts Order on
Stock Charged
BY the Assoeiaied Press

BY The Associated Press
Secretary of Commerce Sawyer
has drawn contempt of court
citation for his part in the long,
bitter fight over control of the
$68 million American President
Steamship Line.
The citation was made yesterday
by the United States Court of
Appeals. 1t said Mr.. Sawyer had
failed to carry out the courts or
der to return the shipping line to
its former owner, the Dollar coms
pany.
The Government contends it
owns the lines stock because of
loans granted the Dollar interests.
The Dollars have disputed this
during years of litigation.
Government lawyers were un-
able to recall any previous con-
tempt citations against a cabinet
officer in connection with his Off
cial duties.
No Comment From Sawyer.
The Commerce Secretary and
nine other persons cited with him
were given until Thursday to
"show cause" why they should not
be found in contempt of court.
There was no comment from any
Of those cited.
Meanwhile, in San Francisco, ]
Federal District Judge George B..
Harris ruled that Mr.. Sawyer,
other Government officials and
officers of the President Line
named in the citation were not
in civil contempt of court" there.
Judge Harris ruling was made
only few hours after the cita-
ton here. 1t had no bearing
on the Washington contempt pro-
ceedings.
But another phase of Judge
Harris ruling brought the two
courts in sharp conflict. He
issued at the Governments re-
quest a temporary injunction
stopping the dollar interests from
trying to take over control of the
company pending further ntiga-
tion.
The court here, on the other
hand, wants effective possession"
of the stock turned over to the
dollar interests pending the out
come of the Governments suit or
its possession.
Injunction Issued.
In addition to the citations the
court issued an injunction to re-
strain Mr.. Sawyer and the others
from any moves Inconsistent with
strict compliance and obedience to
orders heretofore entered in these
cases."
The contempt citations were re-
quested by r. Stanley Dollar and
his associates. They claimed Mr..
Sawyer and the others had not
complied with court order which
said the Dollar interests should
be given effective possession" of
the common stock in the Ameri-
can President Lines.
Yesterdays argume ent here
brought out that the San Fran
cisco suit was filed at the direc-
ton of. President Truman.
Judge Bennett Champ Clark
said he is an old friend of the
President, but: "He has no more
standing in this court than any
other citizen. He has no right to
influence litigation"
Ninety-two per cent of the ship.
line stock has been held by the
Government, which contends DOL
lar gave it up in return for loans
and subsidies. The Dollar people
have said this isn't so, that the
stock was merely held as COL
lateral.
Lawyer Chided by Judge.
The court recently ordered the
stock returned, but the Dollars
said this wasn't done. The con-
tempt citations followed.
Among those cited were Deputy
Attorney General Peyton Ford,
Solicitor General Philip B. Perl
man, Undersecretary of Commerce
Philip B. Fleming, Paul A. Page,
jr., of the Maritime Administra-
ton; George L. Killion, president
of American President Lines and
former treasurer of the Demo-
cratic National Committee, and
four Government lawyers.
Gen. Fleming has been seriously
Ill at Walter Reed Hospital since
last Wednesday. Today his con-
dition was reported somewhat i'm
proved.
Judge Clark had told one of the
lawyers, Edward H. Hickey:
'It seems to me that somebody
is about to advise Sawyer into
Jail for contempt of court"
And of Government conJrol of
the steamship line, the judge said:
1.-The whole thing has resulted
in George Killion keeping very
lucrative job"
The history of the complicated
case goes back to 1888 when the
Maritime Commission-since abol-
ished and its functions assigned