Evening star., 1952-04-11
Steps Taken 10 Settle
Dollar Line Control
Fight Out Of Court
By Robert K. Walsh

ernment and the Dollar shipping
interests for control of the Amer
lean President Lines.
This was indicated today, amid
authoritative reports of stepped
up efforts to settle the tangled
controversy out Of court.
The litigation, stemming from a
transfer of stock by the old Dollar
Steamship Line to the former
Maritime Commission in 1888, has
been in the courts since 1945.
Only Month Left In Term.
Last June the Supreme Court
announced it would review the
matter. With only a month and
a half remaining in the current
term, it has not yet heard the
cases. They are not on the list for
argument during the week of
April 81, the last hearings sched-
uled for the term.
At the close of the 1851 term
last June, the Supreme Court
agreed to review United States
Court of Appeals orders here twol
months previously against the
Government. Last November, the
tribunal said it also would review
the appeals courts threat to Jail
Secretary of Commerce Sawyer
ment officials and attorneys had
been adjudged in civil contempt |
for not obeying the appeals court |
orders.
The Supreme Court could rule
on those matters without hearing
arguments. Attorneys said today.
however, such a procedure seems
unlikely in such a complicated and
important case. Oral arguments |
probably will not be docketed
until next November at the earli-
est, and a decision might not
come for several months there
after, several of the attorneys be-
lieved.
Pending action in the Ninth
Circuit Court of Appeals in San
Francisco is believed to be one
reason why the Supreme Court
has not taken up the Dollar dis
pute at this term.
Thot appellate court. only three
weeks ago. heard arguments on
the Governments appeal from a
decision last October by Federal
Judge Edward P. Murphy. His
opinion on the merits of the con-
troversy over title to the APL
stock was essentially the same as
the ruling last April by the Court
Of Appeals here.
Judge Murphy held that the
transfer of 90 per cent Of the
Dollar Steamship Line stock in
1899 was a pledge" as collateral
for loans which the Dollar in
terests had obtained from the
Government.
The Government contends the
transfer was an outright surren-
der of the stock. The dispute, with
numerous offshots, such as the |
contempt citation against Sec
retary Sawyer, Solicitor Gen.
eral Philip B. Perlman and others, |
has been in the courts here and
elsewhere for longer than six
years.
Suit Filed in 1945.
The Dollar group sued in 1945
to regain control of the shipping
firm, which the Government nowI
operates as the $68 million Amer
lean President Lines. The group
contended it long ago repaid a
loan granted by the old Maritime
Commission and, therefore, should
get back the stock it put up in
1888 as pledge"
The Supreme Court, two years
ago. refused to review, and there
fore left standing, a Court Of APP
peals ruling that the 1888 transac-
ton was a pledge and not sur
render. Meanwhile. however, the
Maritime Commission had been
abolished. The litigation was fur
ther complicated by Government
claim that the United States, as
such, had not been a party to the
action concerning the stock.
The Government and the Secre-
tary of Commerce, who had sue
ceeded to official possession of the
stock, returned to the courts with
a contention, among others, that
they were not subject to judicial
jurisdiction in the matter.
Stock Delivered UnindOrsed.
The Court of Appeals here di-
rected the Government officials
to indorse the stock certificates to
the Dollars. Secretary Sawyer
complied to the extent Of deliver
ing, but not indorsing the certi-
ficates to the Dollars.
A year ago yesterday, the Court
of Appeals issued an order re-
straining the Government from
''implementing or utilizing" al
Federal Court order by JudgeI
George B. Harris in San Francisco
in April 1851. His order would
have prevented the Dollar inter-
ests from taking over the APL
stock. pending a final decision on
the rights of the United States.
The order by Judge Harris was, |
in effect, overturned by the
October decision by Judge Murphy
But the whole thing, so far as
the Federal judicial situation in
California was concerned, was
stayed, pending a decision by the
Ninth Circuit Court of Appeals
on the Governments appeal from
Judge Murphy's ruling. That ap-
peals court has not indicated how
soon it will hand down a decision.
Contempt Order Appealed.
Last May the Court of Appeals
here, found Secretary Sawyer and
nine others, including several
Justice Department officials, in
contempt for failure to comply
with its orders upholding the right
of the Dollar interests to the con-