New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-15

everything in its power to prevent the
naming of receiver friendly to the
company. All this required it to move
promptly and warrants It in most
watchful attention now
Assets Pledged Other Creditors
at could not disregard the warning
contained in the action of the Mayors
and their various companies in pedg-
ing all of their assets which had any
real value to other creditors. and
thereby placing them beyond the reach
of the board for meeting the various
defaults Of the company to the govern
nlent; nor the Mayors transfer to third
persons OF an interlocking company.
which had purchased Shipping Board
ships upon which heavy mortgages lay.
above all, the new board could not
allow the American merchant marine
to be blackened in the eyes of the
world by the removal from the ocean
of the fleet of the greatest advertising
value~-that in the North Atlantic pas
senger service.
when the board acted on July %
last, it deliberately selected the
United American Lines, to operate ten,
porarily the Mail Companys boats
when possession of them was obtained.
for dual reason--first, because it
would not engage in government oper-
alton. and second, because the United
American Lines had the necessary inn
Mediate terminal facilities and agen-
cies, at home and abroad The United
American Lines have purchased (not
chartered) other ships from the board,
and the board holds mortgages upon
them, which can be promptly foreclcsed
in case of default. The boards ar
rangement with the United American
Lines was purely temporary and did
not obligate the board as to the future
disposition Of the ships.
"Heretofore the board has refrained
from giving any explanations Of its
issued by the United States Mail, the
Mayors and their counsel.
After the injunction was granted, the
board notified tine United States Mail
: and it's counsel it would not under any
circumstances deal with the Mayors, but
would deal with any new, strong finan-
cial interests which might acquire the
entire ownership of the company.
"Thc counsel for the United States
Mail made repeated representations to
the board that new interests were about
to obtain or had gained control of the
company. The board delayed action to
give such alleged interests an oppor-
tunity to appear Every representation,
however. turned out to be untrue.
Charges Dcuble-dealing
"Finasly. the board delivered an ul-
timatum that the boats must be sur
rendered. At the very time when
representations were being made to the
board that these supposed new inter
ests would shortly appear the persons
making sucn representations were plan
ming the bankruptcy and receivership
procee dings which have just been
brought 1t was in anticipation of just
that kind Of procedure that the board
has acted as it has.
"There has never been any agree
ment. expressed or implied direct or
Indirect, between the board or its
counsel and Messrs. Chace and Smith
looking toward those gentlemen OF
either Of them, or anybody represented
by them, putting any money into, or
financial support back Of, the United
States Mail
Until the board shall have regained
possession of the ships, its counsel, in
accordance with instructions. will urge
that any receiver appointed for the
United States Mail shall be q man of
such preaminent character, business
ability and ship operating experience
as will constitute guaranty to the
public that the policy of the board will
be carried out.
"The board will get back its ships
When that time comes it will
avoid negotiations with companies
such as the facts disclose the
United States Mail to have been
at viii do precisely as it proposed
to do-call for bids from responsible
efficient. sea- cooperating companies-and
will enter into a contract with men OF
experience and ability who have the
necessary organization and connec-
lions aud who are backed by the
financial capital requisite for an I'M
dertaking which requires such vast
sum of money. The paramount desire
of the board, the handspring of its &C
ton. has been and will be to keep the
ships running It wants no hiatus il
ship movement no neglect to provide
fast, comfortable service, no failure in
the attempt to accomplish the first
purpose of the board-thc continuance
OF the American flag on the lanes Of
transatlantic service.
I'm this, as in all matters. the board
is working toward permanency for the
American flag upon the seas"
When he had concluded the reading