The Birmingham age-herald., 1921-07-24
NEW AMERICAN
 LINE ID OPERATE
 , SEIZED LINERS
Arrangep ats Made By Ship
 pinr In Order That aeo2, ,sa U Passengers May z Be Carried Out
By Associated Press

tNcN I othf Julg So.--Ine OnlIeu American Line temporarily will operate the five passenger liners seEed last night from the United States Mail Steamship company by the shipping board This announce ment was made late today by B. smull, an operating director oi the board
 Mir smull said this arrangement was made in order that there might be no interference with plans and contracts made by passengers for sailing on these vessels.
 The first to sail under the new arrangement will be the George e Washington, which will leave for France August with 25o members of the American Legion.
 Decision to take action against the United States Mail Steamship company was made last Thursday at Washington at a full meeting of the shipping board. MT. Smull said, and the action was unanimous. The all legged dereliction of the company in the manner of payments. was called to the attention of the new board by the district auditor, and it was former Chairman Benson, now one or the commissioners, who suggested the course taken. According to El- rner Schlesinger, general counsel of the shipping board. who was with MT. Smull, the board has got to get down to a business basis.
 JoIIied Out of Millions
 The old board was jollied out Of s50o0,oo0 more than the United States Mail was entitled to-" he said, and they have kept the freight and passenger receipts since March 3l."
 Replying to a charge made today by officials of the United States Mall that the shipping board owed 1t money. Mir. Schlesinger said he was in a position to say that the shipping board did not owe the company any thing.
 Positive denial was made of aile- gations that any interests other than those of the United States govern ment as represented by the shipping board were concerned in the matter, and both asserted that If there were, they would have nothing to do with it.
 Decision to have the United Ameri- can Lines take charge of the ships was reached this morning, Mir. Smull said He reiterated that the arrange ment was temporary and that the shipping board was not committed in any way as to the future policy respecting the ships, as to how they would be operated or by whom.
 The action taken he added. -lsas ' f. | l. f-.. 4 t- 4 and in order that shippers and pros contracts with the line might not be inconvenienced."
 To Take Over others
 The steamer Pocahontas, now at Naples, and the Princess Matoika, at Bremen, will be taken over in the name of the board on cabled instruc- tions to the captains
 The master of the Potomac, now at sea, returning from Bremen, has been notified by wireless of the boards action and instructed to re- port to the boards representatives here on his arrival
 Mir Schlesinger added that there were other considerations" than the s4o0.00O alleged to be due the board. which led to the action of seizing lHc SHips. Ilc uctiiicu to ctatc NHc' these were, stating he inferred the board would be defendant in court action and these matters would come up then. He also said that action against this company was taken as in line with the boards g policy of clearing up all outstanding accounts. This one. he said. was one of the largest that has yet been con sidered.
 Admission was made that the claim of the United States Mail conn pany that the ships had not been completely reconditioned was correct. He declined to say if similar action would be taken against any other company owing money to the board.
 Francis R. Mayer, president of the United States Mail company. said that under his contract with the board there was an express provision for appointment of arbitrators to de- termine matters in dispute. The amount due the board. he added. came under this head as the sub ject of hire was in abeyance rela- tive to it being reduced Some Of 1.-the ships, he said, were put into serv- ice before they were fully recondi- toned in order that the board might benefit by the revenue therefrom, and that his company has given the board more than $250,000 as an ad- vance upon account of charter hire yet to become due.