The New York herald., 1921-07-24
five SEIZED SHIPS
TO HARTMAN Line
Board Officials Announce
: Temporary ALLEGATION to
United American.
U. s. NAIL WILL FIGHT
Disputes Legality of ForeclOs-
ure and Say Government
Is Debtor.
U. s. MAIL WILL FIGHT

Officials of the United States Ship
ping Board explained yesterday that
the seizure Friday of nine of the twelve
ships operated by the United States
Mail Steamship Company was only the
beginning of a campaign to place the
Shipping Board on q sound business
basis. The line was in arrears for
rent, they said. and had not lived up
to it's contracts for reconditioning the
vessels. Officers of the steamship
the seizure to be the elimination of
efforts to discredit the line systemati-
cally conducted by foreign competi-
tors and allied American interests"
Five of the seized vessels were allo-
Gated to the United American Lines.
of which W. Averill Hartman is
President, to be operated over their
old Atlantic routes until such time as
the Shipping Board can decide how
l,they shall be disposed of ultimately.
The ALLEGATION to the Hartman line.
the officials explained. was but a tenn
porary measure, to tide over the
emergency and to carry out the con-
tracts for passage and shipments made
for the vessels by the United States
Mail Company.
| Although seizure of the companys
vessels Is but a step to place the Ship
| ping Board on paying basis. Elmer
Schlesinger. general counsel of the board,
and ]. Barstow Smull, vice-president OF
the United States Shipping Board. who
actually seized the vessels, wished to
nave 1t made clear that the act should
not be interpreted as n definite policy Of
the board. The United States Mail COM
pany was pounced upon, they said. be-
cause the company was more than three
months in arrears in rcnt and was the
first to be called to their attention by
Robert II. Montgomery. special au-
ditor. who is going over the boards ac-
counts.
The action OF the Shipping Board vir-
tually takes the United States Mail off
the transatlantic trade. She has only
three vessels now in operation, which
were alocated to the company by the
Shipping Board. They are the Pan
handle State Centennial State and Old
North state, which are engaged In the
Irish trade The Mount Vernon was
seized at Boston Friday, simultaneous
with the seizures here. and instructions
we're cabled overseas TO take over the
Pocahontas at Naples and the Princess
Matoika at Bremen. The Potomac. now
en- route to the United States, will be
taken over when she reaches port.
No UIterior Motives.
Both Mr. schlesinger and Mr.. Smull
denied there was any other than a sound
business reason behind the seizure of the
ships. Statements of officials OF the
United States Mail Company that there
was an Interior motive in the move were
called to the attention of the two off,
cials, who asserted such charges were
merely a case of waving the flag"
'If there was anything like that in It,"
Mr. Schlesinger said, II would have
nothing 10 do with II. There were other
serious matters of default aside from the
rent. but | cannot talk about these. as
they may come up In court"
This remark by Mr.. Schlesinger
brought forth the Information tnat the
United States Mail Company Is con-
templating a suit. but officials OF the
steamship company would not verify the
fact. I'VE are not disclosing our next
move" they said.
1--WE have made arrangements with
the United American Lines" Mr.. Schle-
singer continued. "for them to arrange
temporarily for the sailngs OF these
boats and to honor all tickets and con-
tracts made. They are going to act as
our agents. The Hartman Line was Sc
iected because IL was considered the most
efficient to operate the vessels. The
board In aiocatlng the ships to the line
has not committed itself TO a policy as
TO what eventually will be done with the
Continued on Ninth PdOe