Evening star., 1951-04-06
Dollar Line Middle
May Be Heading for
Probe by Congress
By Robert K. Walsh

n6dQ6Q IOT COIlSTGSSlOIldl lIlV6S-
tigation of Government operations
and contempt of court citations
against cabinet member and
other high-ranking officials.
Charges of administration-in-
spired defiance of court orders
and Of political thwarting of a
privately owned merchant marine
figure in the fight between the
Government and the r. Stanley
Dollar interests to run the Ameri-
can President Lines.
The Dollar interests today asked
the United States Court of Appeals
here to block any further litiga-
ton and requested contempt OF
court citations against 13 persons
including Secretary of Commerce
Sawyer and other top Government
officials.
Seeks to Halt Suit.
The petition seeks to halt action
on a suit filed in Federal Court in
San Francisco. and to prevent the
filing of similar litigation in any
other court.
The conflict has been in the
courts here since 1945 and reached
the Supreme Court three times
It flared anew in recent weeks
in Federal court in California.
Justice and Commerce Depart
ment spokesmen deny that fur
ther court moves here as well as
in California f1out Supreme Court
and lower court rulings which
have tended to favor claims by
the Dollar interests.
Return of Stock Sought.
The main question centers or
ownership of stock turned over
to the old Maritime Commission
in 1888 by the former Dollar
Steamship Lines. The Dollar
group contends the shares were
transferred simply as a pledge
for a Government loan long since
repaid. They want the stock re.
turned in such a way as to give
them effective possession" o1
the stock and control of APL.
The Government-despite court
rulings that the stock must be
given to the Dollar group-de.
clares that the fundamental ques-
ton of ownership has not yet beer
decided by the Supreme Court
Government attorneys hold also
that the Government has not only
a right, but a duty to take addi-
tional legal steps in the public
interest.
The stock certificates were de.
livered last month to the Dollar
associates by Secretary Saw.
yer, but without his indorse-
ment. The Dollar group was
unable to use them for vot.
ing purposes on the March Is
annual meeting of the Govern
ment-operated APL. The attor-
ney for the Federal Maritime
Board, successor to the old
Maritime Commission, presented
proxies for the same block of stock
and. on behalf of the Govern
ment, nominated these directors
who were elected:
George L. Killion, APL, presi-
dent; Ralph K. Davies, Paul E.
Hoover, M. J. Buckley, Arthur B.
Poole, Gustav Epstein, Samuel B.
Mosher, George T. Paine and
w. K. Varcoe.
Was Party Official.
Mr.. Killion formerly was treas
urer of the Democratic National
Committee. Mr.. Davies has held
several Federal positions. includ-
ing that of wartime Deputy Pc
troleum Administrator.
APL officers and directors say
the are between the devil and the
deep blue sea" in the long stand
ing dispute. Attorneys for the
Dollar interests have demanded
that those officials as well az
Secretary Sawyer, Deputy Attor-
ney General Peyton Ford. Solicitor
General Philip B. Perlman ane
Others be held in contempt Of
court for what the Dollar grour
describes as fragrant disregard
of court orders.
The Dollar interests also accuse
the Government of campaign
of legal "harrassment." They
assert that the Government, de.
spite repeated court decisions
against it, continues to resort tx
technicalities to prevent the Dol.
lar group from exercising rea
control of the steamship company
S23 Million Unpaid Subsidy.
Leland M. Kaiser, who was put
on the APL Board of Director.
last year by the Maritime Com
mission, but was not renominatec
at the March 19 annual meeting
wrote Admiral Edward L. Coch-
rane, Federal Maritime Boarc
chairman. last March that ne
would demand a congressional in.
vestigation of the APL situa.
ton. He said Congress ought tt
look particularly into a $23 million
unpaid subsidy he said was due
the company.
The story started August Is
1888, when the Dollar Steamship
Lines-founded in 1901 by Capt
Robert Dollar, father of r. Stan.
ley Dollar-turned over 2,200,14s
shares of it's stock to the former
Maritime Commission.
The company claims it merely
pledged the stock to secure {
$7.5 million loan from the Gov.
ernment.
The name of the Dollar Steam.
ship Lines was changed to the
American President Lines, anc
Mr.. Dollar and his associates re-
signed from executive positions
A. P. L. repaid the SIS million
debt in full in September, 1943.
Lost 4 Million in 1888.
Government officials note that
the Dollar Lines had a net loss ex.
ceeding 81 million in 1893 and 9