New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-28
Hartman, Roosevelt and
the M0ore&McC Cormack
Lines to Operate Them
Without Compensation
$1,2O0,00O Due to
Aliens Not Found
ernmentt0Reimhnrse
Them; Lasker Promises
Drive Against Others

Judge Martin T. Manton, of the Fed
eral District Court, yeste rday, on appli-
cat1on OF the receivers, turned over to
the government the nine ships char
tered to the United States Mail Steam
ship Company, Inc.
Immediately after they again came
into possession of the board Mr.. Lasker
allocated them for joint operation to
the United American Lines, the Roose-
welt Line and Moore 4 Mccormack. Inc.
These companies will operate the ships
for the governments account, without
compensation and as a patriotic serv-
ice, until the Shipping Board otherwise
dlsposes Of them by sale or charter.
U. s. to Reimburse Immigrants
One OF the most important revcls-
tons made public by the chairman was
the allegation that the Mail Line had
collected s1,200,00O advance money
from immigrants and had disposed Of
this cash in such a manner that mono
OF II vas found upon financial in
vestigation OF the concern. The gov
ernment has agreed to honor these i'm
migrants tickets. make good the cash
deposits and take an assignment from
the Immigrants Of their claim against
the Mail Line
Seldom has more distinguished
group of iinanciers in shipping circles
occupied the legal department of the
Shipping Board than that which at
tended the meeting called by Mr.. Laxk-
CT yesterday afternoon upon his re-
turn from court.
Among those present were W. Ave
rell Hartman, Kermit Roosevelt, A. E.
Clegg, Herbert Noble, Emmet j. Nc
Cormsck, Elmer Schlesinger, general
counsel for the board: j. Barstow
Smull, vice president of the Emergency
Fleet Corporation; George A. Ellis, at
torney for Mr.. Hartmann; William
government, and several minor officials
Mr.. Laskcr at once launched into a
statement disclosing the governments
side Of the fight.
This is all I have to say, gentle
men, he said at its conclusion. II
eam now going away to the woods for
ten days and no further statements
will be made by the board during MY
absence"
Mr.. Lasker admitted, however, that
the board had only begun its battle
against companies which are using
Shipping Board ships without COM
pensating their owner He intimated
that criminal proceedings would be
brought against one Of the biggest
operators, and that another firm which
purchased vessels and has defaulted
in payments would soon be rounded up
in manner similar to that employed
against the Mayors.
Judge Charles Mayer and his sou,
Captain Francis r. Mayer, could not
be reached yesterday afternoon at
their Office, 1870 Broadway. 1t is sup
posed that they are on the formers
yacht of. the Atlantic Yacht Club.
Elmer Schesinger said that the
Shipping Board would Immediately be-
gi.1 an investigation to find out if the
Mayors could be prosecuted, but for
the present there was nothing on
which they could base such action.
Laskcr Explains Seizures
Mr.. Laskers statement follows:
"Jhe receivers Of The United States
Mail Steamship Co., Inc, Mcssrs. Noble
and Mccormack. on examination of the
books and affairs of the company, found
the condition even worse than repre-
sented by the Shipping Board in its
statement made thirteen days ago. The
receivers this morning on their own
motion pctitioned Judge Manton to re-
turn the ships to the Shipping Board
and begged the Shipping Board to &C
cept the return of the ships. Tho re-
ccivers found that tho Sl,2000O0 adj
vance moneys collected from immi-
grants consisted roughly Of 100000
passage money and tho other 100000
was virtually cash deposit with the
United States Mail company made in
trust by the immi grants to dcfray
hotel expenses and railroad fares in
this country and The necessary SO re-
quired by law for the immigrant to
have in his possession on landing.
"The diversion of these trust funds
by the management Of the United States
Mail Steamship Company, Inc, con-
stitutcs an act unconscionablc, which
speaks for itself But in addition, it
was impossible for the receivers to
further operate the ships with it's in
come already diverted through prior
uses The government, consistent with
CONTINUED on pags t~oye)