New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-18
2 Receivers to
KeepU. S. Mail
Ships Running
Herbert Noble and E. J. Nc.
Cormack Appointed, Will
Continue Work. Pend
ing Inquiry on Finances
Take Over Lines Counsel
Nicoll Puts Liquid Assets at
100000; Insurance Men
Challenge His Estimate

Judge Martin T. Manton in the
United States District Court yesterday
appointed as receivers of the United
States Nail Steamship Company Her
bert Noble, of Noble, Estabrook & Nc
Harg, lawyers, lis Broadway, and En-
nett J. Mccormack, of Moore & Nc
Cormsck, Inc, ship operators, 5
Broadway.
Delaney Nicoll jr., of counsel for
the Msi, was appointed by Messrs
Noble and Mccormack, counsel for the
receivers. with his father and Balm
bridge Colby, also attorneys for the
Mail, as associates. The three auto
matically cease to be attorneys of the
steamship company.
The receivers IN their first official
statement announced their purpose of
operating the vessels for the benefit
of the corporations creditors until the
court has decided on the course of the
receivership. This apparently blights
any hope that the United States Ship
ping Board may have entertained of
recovering Immediately the nine ships
allocated by the board to the Mail
Company.
Awaits Return of Colby
No statement was issued by Mr..
Nicoll jr covering the financial condi-
ton of the Mail on July %. He said
that this would not be made public
until Mr. Colby returned from Wash
ington, where he went on Tuesday to
be present at the first appearance of
Woodrow Wilson at the new law Offices
OF Wilson Z. Colby.
II reply to an inquiry as to how
the receivers we're to operate the ships
Mr.. Nicoll told of the visible cash as
sets Of the Mail. These, upon investi-
CATION, proved to be on paper, as none
OF the money is in the treasury of the
company. which Albert D. Lasker.
chairman of the Shipping Board, de-
clares is insolvent.
SO many surprises have occurred in
the last few days in connection with
the affairs OF the Mail that the ap-
pointm ent Of Mccormack and Noble
did not cause the discussion that was
aroused when Arthur J. Baldwin was
named for the position and then de-
the interested parties that the selec~
ton was satisfactory TO all concerned.
William Marshall Bullitt, who is in
charge Of the case for the government,
is n Washington consulting with Mr..
l.asker and Elmer Schlesinger. gen.
cral counsel for the board. He will
retern to-day. One of his first acts
probably will be to apply t@ the courts
for the return Of the ships! unless the
receivers can show financial resources
10 operate ther,.
This belief IS strengthened by the
plight OF the steamship Pocahontas at
Naples. which has been libeled and is
n De sofa Tomorrow, unless 100000
Ire IS forthcoming to settle claims for
coal supplies and repairs. The insur-
ance or this vessel has been cancelled
Receivers to Report Creditors
The statement issued on behalf of
the receivers by Mr.. Nicoll was as
follows:
As soon as possible we shall make
2 full report 10 the court of the fnan-
cal condition Of the company and ask
Us advice as TO our future course.
Meanwhile we shall continue the oper-
atlon OF the ships and maintain the
sas.ngs which have been advertised.
We have by direction of the court
retained De Lancey Nicoll ir., as at
torney for the receivers and asked
De Lancey Nicoll sr. and cambridge
Colby to act as counsel"
There was talk in shipuinr circles
srsgardine the appointment of the
sail former counsel as attorneys for
me receivers because Of their known
attitude toward the Shipping Board in
sse matter Of returning the ships.
lhev have fought every effort Of the
goTernm ert 10 get them back.
nen Mr.. NicoN jr was asked how
re receivers were to operate the ships
IL view Of Mr. Lasker's charges that
'ne .:,, company vas jnsolvent ne replied:
We have 100000 due US from the
Postmaster Generals Office for carry
ing the mails. This money has been
neid up. but we expect to get it within
Z few days
There is 5000 900 due from insur
arce companies On losses and q little
more than $4,000 due as rebate on
insurance premiums.
tn THIS money We will proceed
% run me ships One Of our first acts
vii be % take care Of the Poca hontas,
IN Naples. The amount due on her is
100000 lire instead Of 1900, 900 lire;
hat is, about $4,000. This will be
done al once
VIII Take Care of Creditors
Ne viii not ask for receivers cer~
tincates. az we DO not need to- We
are going 10 run the ships and take
care Of the creditors. We will have
enough money to pay for all our coal
and supplies
Regarding the insurance on the
Yesse.s, it does not expire until Sep
TENDER 4, and we have already placed
our Insurance for the next quarter
WIN Marsh & NcLcnnan, and Parsons
& Eggert, 30 Maiden Lane"
Mr.. Nicoll's optimistic statement
xas not confirmed BY investigation:
l. was admitted by the Shipping Board
recently that, acting on the injunction
obtained by the Mail. the board had
notified Postmaster General Hays to
pay over 70 the Mail all money due it,
IN. Mr.. Hays has not done so, on the
s>sumption, it was said, that inasmuch
- the Mail owes one arm of the gov
errment it would not be right for an
ptner arm 70 pay il money until the
ctner debt MAJ Cancelled
~ 70 the recovery Of insurance due
% losses on the ships. Frank 3. Hall T.
g., 81 Beaver Street, former marine
tE1rarce agents for the Mail, issued
me following statement:
II IL or should be matter Of COM
mon knowledge that return premiums
are nat payable until after expiration
O. the policy contracts and after pres
entat'on and approval by the under
writer's If the proper evidence that
The vessels have been actually laid up.