The New York herald., 1921-08-14
j. s. MAIL Line AGAIN
ASKS FOR RECEIVER
Asserted Financial Backing
Promised Company Has
Not Been Obtained.
100000 DUE FOR COAL
NicOll Says Failure to Re-
organize Held Back New
Capital.
CASE MORE INVOLVED
Ship Board Temporarily Gives
Up Hope of Setting Aside
Injunction.
100000 DUE FOR COAL
CASE MORE INVOLVED

The United States Mail Steamship
Company which is fighting the Ship
ping Board for control of the nine
steamships which the board seized,
again made application before Judge
Manton in the Federal District Court
yesterday for the appointment OF a re-
ceiver
The Shipping Board announced
through it's counsel that it had tenn
porarily given up hopes OF getting the
Injunction against the board dissolved.
The old board of directors, controlled
by Francis r. Mayer. president OF the
line. and his father, Charles Mayer
refused to sanction the plan to return
the ships. The dummy" directors, m
power for a day, tried to urn the
ships back to the Shipping Board.
Delaney Nicoll. in the interest OF the
Berwind-white Coal Company, creditor
with claims against the United states
Mail Steamship Company exceedn5
500. 900 for coal supplied to the COM
pany's ships, filed the papers In an
equity recelversnlp suit d5ae
steamship company.
In filing them Mr.. Nicoll made a state
ment to Judge Manton explaining that
when he withdrew the papers on Wednes-
day he understood that the company had
been promised strong financial backing
which would amply protect the creditors
and stockholders. Since then, ne salo'
there has been no reorganization OF ehe
line and therefore it has been unable 70
obtain the promised capital.
For that reason. Mr.. Nicoll said' ana
for the protection of all the interests
concerned, he thought it was his duty 70
refile the papers in the equity receiver
ship suit. He suggested to Judge Man
ton. however, that the appointment or
receivers for the company be held up
until the Shipping Board and the other
interests be given full opportunity to
appear in the matter.
William Greenough, counsel of record
for the United States Mail Steamship
Company, took occasion to deny that the
corporation, now apparently short OF
funds to meet its obligations, is insol-
vent. He did not oppose Mr.. Nicol's
receivership motion. and Bainbrfdge
Colby, former Secretary of State and
now one of counsel for the line. had
nothing to say.
Acting on Mr.. Nicoll's suggestion
Judge Manton announced that he would
adjourn the proceedings until 10 o'clock
tomorrow morning and that until then
he would retain the complaint In the
equity suit
AS soon as the receivership papers
were filed Ben Barber. district counsel
of the Shipping Board. said that the
board had decided to abandon its fight
temporarily and asked that the motion
by the board seeking a decree dis
solving the injunction be withdrawn.
II understand that the directors OF
the line have withdrawn their consent
to turning the ships back" he said.
Counsel for both sides refrained yes
terday from renewing their charges and
counter charges of conspiracy and
fraud. Delaney Nlcoll. Jr.. said he
had told the whole story the day be-
fore. and W. Marshall Bullitt. who is
directing the legal fight for the Ship
ping Board. faithfully kept the silence.
Lawyers say that the filing of the re-
ceivership suit makes the legal snarl
even more complicated than it was pre-
viously.