The $

The Man. A hardy old merchant sat on the porch of his palace, last summer, gazed at the shipping inside the Golden Gate. Almost he could see the red flag on this stern and that -the red flag with the white $ on it. That stood for little Robbie Dollar, who romped about Falkirk, Scotland, more than three-quarters of a century ago. It stood for Robbie, the Canadian lumberjack, who ventured into business for himself, bought a 300-ton boat because lumber freights were so high. It stood for the ingenious skipper who, stranded in the Philippines without a return cargo, waded ashore to a virgin island, found copra -the beginning of an industry that is now worth $22,000,000 annually. It stood for Captain Dollar -the idol of China's merchants, who, in half a century, never caused him a single "bad debt." It stood for the commissionless Ambassador Dollar who pacified the Mikado in person. Many freighters now fly that sign -and seven/- passenger boats.

His old eyes could not descry, far out at sea, a passing vessel flying the red, white and blue stripes of the Pacific Mail -a great ensign, great when he was unknown, the ensign of the oldest shipping company in the U. S. He reflected that five big passenger boats now flying that banner were "President" boats leased from the Shipping Board. If those five should come under the $ sign, the Pacific Mail might expire for- ever.

About this time, the Shipping Board called for bids on those five. The old man's active son consulted with two self-made Coast financiers, the Fleischhacker brothers, Herbert and Mortimer. Then, early this year, the old man's son went to Washington, bid.

Last week, the Dollar bid precipitated a battle, which even Washington regarded as unusually big and bitter.

The Ships. At a cost of about $120,000,000, the U. S. built for war purposes 23 passenger vessels. They are something over 500 ft. long, with a 73-ft. beam and about 14,000 registered tonnage, "equipped with every modern device and convenience." Because of the names most of them carry, they are called "the President boats."

Sixteen of these boats are still owned by the U.S. through its Shipping Board*although they are leased to and operated by: U.S. Lines from New York to England, France, Germany and return:

S.S. President Roosevelt

S.S. President Harding

Munson Line, New York to Buenos Aires and return:

S.S. Western World

S.S. Pan American

S.S. American Legion

S.S. Southern Cross

Pacific Mail Steamship Co. (The "California-Orient Line") from San Francisco to Honolulu to Japan (Kobe, Yokahama) to China (Shanghai) to the Philippines (Manila) and return:

S.S. President Pierce

S.S. President Lincoln

S.S. President Cleveland

S.S. President Taft

S.S. President Wilson

The Dollars ("Admiral -Oriental Line") from Seattle to Japan, China, the Philippines and return:

S.S. President Jefferson

S.S. President Madison

S.S. President Jackson

S.S. President Grant

S.S. President McKinley

The other seven boats were sold, nearly two years ago, to the Dollar Line (TIME, Sept. 24, 1923). These the white-bearded merchant Captain Robert (''Robbie") Dollar and his son, R. Stanley Dollar, put to work in a unique round-the-world one-way service. One sails every fortnight from each of the following ports in circuit: San Francisco, Honolulu, Kobe, Shanghai, Hongkong, Manila, Singapore, Penang, Colombo, Suez, Port Said, Alexandria, Naples, Genoa, Marseille, Boston, New York, Havana, Colon, Balboa, Los Angeles, San Francisco and around again. They carry about 100 passengers who are permitted stopovers. These globe-girdlers are:

S.S. President Adams

S.S. President Garfield

S.S. President Monroe

S.S. President Polk

S.S. President Van Buren

S.S. President Hayes

S.S. President Harrison

A total of 17 President boats sail the Pacific -seven owned and operated by the Dollars, five owned by the U. S. and operated, as the Admiral-Oriental Line, by the Dollars, five owned by the U. S. and operated by the Pacific Mail. (Six sail the Atlantic, four north and south, two east and west.)

To a Britisher, Dutchman or Japanese, these ships would still be worth a good price -they could be built for about $4,000,000 in a British navy yard (they cost the U. S. about $6,000,000 each). To an American, they are worth far less. A Dutchman could operate them under Dutch laws at a fair profit on his investment of $4,000,000. An American under U. S. laws* and without a subsidy, can not.

But Congress has decreed that they can be sold only to a U. S. company because Congress wants a U. S. merchant fleet. To the Shipping Board is left the choice of selling at ridiculously low bids or not selling at all.

The Battle. The old man's son, Mr. Stanley Dollar, offered the Ship- ping Board $1,125,000 for each of the five boats now under lease to the Pacific Mail. He offered one-third spot cash, two-thirds in 4 1/4% mortgages. He guaranteed to run the boats regularly across the Pacific for, at least five years.

The Pacific Mail, smelling doom, called upon their Manhattan financiers, and especially upon their lawyer, one-time (1909-21) Senator George E. Chamberlain of Oregon. They did not have the cash resources of the Dollars and their friends, so put in a bid in larger figures but less cash -$1,350,000 per boat, about one-fifth in cash and the balance in 7% preferred stock in a holding company to be organized. They later offered to increase the cash payment to $1,500,000, proposed that the Government accept bonds at 4 1/2 for the balance. Their main object was to prevent sale to Captain Dollar and son. They pointed out that they had been running these boats without loss to the Government -in fact with an operating profit of about $2,000,000 during the year ending Feb. 28, 1925 -and that the Government was therefore under no pressure to sell them. (A major reason for sale of Government ships is to es- cape operating loss.) But, they agreed, if the Government is determined to sell, it should accept their bid because it provided that, after three years, 50% of the profits above the Government's preferred stock dividend and above their own 6% common stock dividend would go into a building-fund; and, chiefly, because a sale to Robbie Dollar and son would create a total monopoly of U. S. vessels in the Pacific.

The Shipping Board (seven men) debated heatedly. Last week, they ceased debate, voted. The three members of the Board who compose the sale committee (Commissioners Lissner, Haney, Hill) voted to accept the Dollar bid. Rear Admiral Benson voted No; E. C. Plummer, Vice Chairman, voted No; Mr. Frederick I. Thompson, Commissioner, voted No. It was up to T. V. O'C., the Chairman -genial, smiling Mr. O'Connor. He voted Yes. A telegram sped off to the old man in San Fran- cisco. He grinned happily. At Washington, members of the Shipping Board could hardly speak to one another. Debate began again.

Finally, Senator Chamberlain went to court. Justice William Hitz of the Supreme Court of the District of Columbia issued a temporary injunction forbidding the sale, gave the Dollar Company until Apr. 15 to show cause why the injunction should not be made permanent. The legal grounds for the injunction appear to be slight except for the general grounds of "public policy" used in the advocacy of the Pacific Mail bid.

So enraged was T. V. O'C. that he threatened to cancel the lease under which the Pacific Mail is now operating these ships if the Pacific Mail wins its point at law.

Before Captain Robbie's white $ on its field of red can be sole consort of the stars and stripes on the Pacific, his son -and the Fleishhackers -must finish the battle. They have against them the legal talent of Senator Chamberlain, a hard fighter, the general reluctance of taxpayers to admit the necessity of selling $6,000,000 boats for $1,125,000.

California seems to be with the Dollars, convinced of the world-conquering efficiency of the Dollar system. Presumably, they have with them the Administration, desirous to be quit of the embarrassing ship business. And, for mascot, they have the old man, his beard, his sign.

*The Emergency Fleet Corporation, in charge of Rear Admiral Palmer, is nominally divorced from the Shipping Board (TIME, Jan. 14, 1924; Jan. 5). The Shipping Board is a supervisory body, over the Emergency Fleet Corporation, an operating company.

*Requirements of the LaFollette Seamen's Act (regarding crews, quarters, etc.) and higher labor costs make ship-operation under the U. S. flag much more expensive than under a foreign flag.