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

contract. The company refused to ac-
cept delivery Of the Callao, which was
IN violation Of the contract.
AS to the eleven ships upon which
work was done. the company defaulted
completely with respect TO the
Amphion. Freedom, Mount Vernon,
Agamcmnon and President Grant, and
even refused to sign charter parties
for the three last named vessels. al
though in possession thereof and those
vessels. among the finest in the fleet,
hive never turned wheel.
"The United States Mail default did
not lie alone in failure TO sign charter
parties or to recondition. The company
was under obligation to bear all ex-
penses after delivery, yet the Shipping
Board was forced to pay more than
$4,000 for crew wages, food supplies
and repairs in order to prevent the
Susquchanna. Pocahontas. President
Grant and Amphion from being libeled.
mo part of this sum has ever been
repaid. Moreover, when the Shipping
Board delivered the ships to the com
pany there were fuel and consumable
stores aboard, valued at more than
1886, 900, for which the company agreed
to pay, but the company used the fuel
and stores and has not paid one cent
for them. The company also received
from the Shipping Board more than
100000 worth of material which the
board had in it's various warehouses
and supply depots. This material. in
tended for use in reconditioning, like
wise has not been paid for.
There are certain reconditioning
bills contracted by the United States
Mail amounting to more than $500 900,
which it has not paid and could not
pay, and for which claims will be made
against the Shipping BOARD.
Gould Not Pay Voyage Repairs
"The company could not even pay fo,
voyage repairs on ships it has been op
Grating, which have amounted to more
than 100000 and for which ships have
been or will be seized, and the Shipping
Board will in all probability have to pay
further sum of more than 100000 to
prevent it's ships being sold to satisfy
the contractors.
"The company could not, or at least
did not, pay its bills for supplies, III
Guiding coal, meat, butter and eggs,
amounting to hundreds Of thousands of
dollars.
"The Shipping Board is also informed
that the company has, in one way or
another, incurred enormous debts of
various kinds in Europe, and that its
European creditors have instigated
proceedings, and, in one instance, have
already seized one Of the ships (Poca-
hontas) in satisfaction of those foreign
debts.
"The company cannot pay such debts
nor even give bond by which release
could be secured, and the Shipping
Board may have to pay the deb.s in
order to keep the ships from. being
sold to satisfy the conpany's foreign
creditors.
with respect to charter hire the
contract provided that the company
should pay the board monthly, in ad-
vance, for the use Of the vessels, 1T
the rate of $3.50 per net registered
ton per month. The company not only
failed to pay the full amount of char
ter hire due prior to March 3lss, last,
on certain vessels, but has refused to
Fay charter hire since that date on
any vessel. The total amount of char
ter hire due by the company was
$751; ,443,3 6, of which the company has
paid only S242, 0l2.68, leaving due the
government $4s9, 430.68 at the time the
new board acted, viz:
Vessel Balance due.