New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-13
Mail Ship Line
Counsel Defies
Bynum' sOrder

CONTINUED from raq6 nne>
Chace and Smith, through holding stock
and notes, have an interest of about
$3,600,000 in the Swiftsure company.
"When the affairs of the United
States Mail Company came to a crisis
Chace and Smith appeared in the open.
They went to Washington and obtained
the ear of Marshall Bullitt They are
supposed to have made an agreement.
with Built whereby if control of the
United States Mail line passed to Chase
and Smith the present litigation in
volving the line would cease
Sufficient money was to be put into
the company to reorganize it and the
ships were to be purchased from the
Shipping Board or be operated under a
modified form of contract. The stock
was then deposited in escrow with
Chace and Smith in New York City,
Mr.. Bullitt being present at the trans
would leave the vessels where they
were and Chace and Smith would sup
ply the necessary financial support for
purchase or operation of the vessels
under the modified contract We had
nothing to do with these negotiations.
Mr.. Bullitt dealt with the clients d.
rectly.
First News of Change
"The first we heard of any change in
the management of the company was
at 1890 Thursday night, when nv
father and I received a letter from the
United States Mail Company, signed bv
Mr.. Bynum as president, notifying us
that the board Of directors had decided
to Withdraw the suit against the Ship
ping Board, va:ate the injunction and
surrender the ships. He asked that
we appear in the Federal Court this
morning to carry out this plan, or, if
we were unwilling, to consent to the
substitution as counsel of Ira Camp
we'll as counsel.
What brought this al about was
that Mr.. Lasker had refused to accept
the arrangement made by Bulitt with
Messrs. Chace and Smith, Of course.
what really happened was that Smith
and Chace agreed to deliver the United
States Mail Line to the board if the
board agreed to leave the Swiftsure
alone. We have Smith and Chacc in
the position of selling out the Mail for
the benefit of the Swiftsure This
could be done, of course, because the
France and Canada Corporation, which
owns 65 per cent of the stock of the
United States Mail Line, guarantee the
Swlftsure notes issued by Smith and
Chase.
I'VE also learned that J. Barstow
Snull one of the vicep presidents of
the Emergency Fleet CORPORATION. has
signed an agreement with the United
American Lines. in which " Averell
Hartman is interested, to allocate al
the vessels Of the United States Mail
Line to them for management and ou~
Grafton during a period of ninety days,
with the right Of extension. Mr. Smull
verified this version over the telc-
phone from Washington
Will Not Give Up Ships
"Our position is that we will not con-
sent to the return of the ships. We
represent the original stockholders Of
the line and its creditors. We intend
to protect their interests against all
attempts to defraud them The COM
pany owes about $1,500000 for sup
plies and $1.ll3,000 in prepaid passage
money, which it has collected from
travellers. With regard to the assets.
it was figured on July 81 that if ljaui,
dation had taken place then there
would not have been difference of
more than $25 900 between assets and
liabilities. If the ships are turned
back creditors with claims Of $2,6l3,OOO
will be wiped out. That is the reason
we are putting up this fight"
Debts Against Company
Mr.. Nicoll said the principal credit
ors are the 3erwind- White Coal Com
pany, the Morse Dry Dock Company
the Todd Shipyard Company, C. T.. viii
hams, dealers in supplies, and minor
concerns
MR.. Nicoll was served late yesterday
with an order to appear before judge
Manton this morning at 1870 to show
cause why decree should not be en-
tered Immediately vacating the iniunc
ton against the Shipping Board, and
the ships chartered to the United
States Mail Line returned immediately
to the board
1t was admitted by MIR. Nicoll that
the Old Colony Trust Company had
lent money to the Mayer interests. He
the board to foreclose on the Swift
sure mortgages that caused Smith and
Chase to deliver the United States
Mall Line to the board. He said the
board has also threatened to proceed
against the Mayors criminally and
held the threat OF Indictment over
them
My advice to the Mayors on this"
said Mr.. Nicoll was to tell the board
to go to hell"
Remarks Called Inaccurate
When the substance of Mr.. Nicoll's
remarks was repeated to Krlin- w ool-
sey- Camp bell-Hickox and Heating. at
torneys for Mcssrs. Malcolm Chace
and Alexander Smith, they issued the
following statement:
Mr.. Nicoll's remarks as reported
are inaccurate. Messrs Chacc and
Smiths sole connection with this mat
ter Is that they represent the security
holders of the Swiftsure Oil TRANSPORT
Company, in which the Mayors were
Interested They nave no present or
past connection with the United States