Titanic artifacts hearing opens in federal court in Norfolk

[Andrew Clarkson]

NORFOLK, Oct 26, 2009 (The Virginian-Pilot - McClatchy-Tribune Information Services via COMTEX) -- SOST | Quote | Chart | News | PowerRating -- A federal judge opened a hearing this morning that will determine the fate of thousands of artifacts from the doomed Titanic luxury liner that sank in the North Atlantic nearly 100 years ago.

Premier Exhibitions Inc., the parent company of RMS Titanic Inc., has asked the court to award it sole title to the artifacts with covenants to preserve them forever, or alternatively, a cash award of the estimated value of the pieces: $110 million.

A cash award appears unlikely because no company or museum has stepped forward with an offer to pay that kind of money.

The federal court here ruled 15 years ago that it has maritime authority over the wreck site and has overseen the company's efforts to salvage and preserve the artifacts it has lifted from the bottom of the ocean during four of five expeditions.

U.S. District Judge Rebecca Beach Smith, who has held the reigns on the case for about the past 10 years, needs to be convinced that the company has the resources and ability to preserve the artifacts for future generations.

Lawyers opened the hearing this morning with a company board member who outlined Premier's financial health and its optimism for the future.

Retired Army Col. Jack Jacobs, author of "If Not Now, When?: Duty and Sacrifice In America's Time of Need," joined the board in January. At the time, things were a mess, he said, calling the company "extremely poorly run."

"It was not a pretty picture, to be honest," Jacobs testified.

The board ousted former company president Arnie Geller, hired new leaders and received a $15 million capital infusion.

The company, he said, is "unequivocally committed to the preservation of the artifacts."

Lawyers for the company said they will present about 15 expert witnesses, including appraisers who estimated the worth of the artifacts. The $110 million figure, the appraisers said in a court filing, is not to be taken literally, they said.

The historic nature of the collection "does make it irreplaceable and therefore priceless," the appraisers, Paul Zerler and Stephen H. Rogers, said.

Testimony will run through the week. The judge is not expected to rule until sometime later.

The company also notified the court that it has begun initial planning for another expedition to the site, tentatively scheduled for 2010.

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