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


Calls Stock All Water
Briefly it is charged that the COM
pany was insolvent when the seizure
was made, that despite this condition
1t continued to sell tickets in advance
for passengers and accepted money for
freight transportation; that it was
placing a mortgage on the future oper-
alton Of the ships which was constantly
mounting. and that, though ostensibly
capitalized for $1,000,000, the stock was
and is nothing but water and that not
share was issued
cambridge Colby, associate counsel
with Delaney Nicoll and the latter's
son for the Mail corporation, the only
interested attorney who could be found
IN town last night, issued a statement
after glancing over the Shipping Boards
charges in which he said that "the
story Of his Iasker's) conspiring ef-
forts to wreck the United States Mail,
when he could not appropriate it for hts
personal friends, will be fully related
in the courts" He characterized the
seizure as nocturnal raid" and added
that he did not believe Admiral Benson
and ex-senator George f. Chamberlain,
of Oregon. both members of the board,
sanctioned the course the chairman
took.
When Mr.. Colby's reply was read to
him at the Chatham later Mr.. Laskcr
replied;
"Hogwash!"
1t also was disclosed yesterday that
DeLapcey Nicoll jr. was not the at
a receivership for the company, which
is to be heard in Judge Manton's court
to-day, when receiver is to be ap-
pointed. Herbert Green, II Broadway,
is the lawyer who filed the papers in
the equity receivership suit on behalf
of the Berwind White Coal Mine Com
pany, creditors to the amount of more
than 100000.
Mr.. Lasker. however, scored Mr.
Nicoll for acting as representative of
the company when he was at the same
time, according to the chairman, at
tempting to throw it into bankruptcy
New Issue Complicated
Elmer Schlesinger, general counsel
for the board, when asked what effect
the receivership proceedings would
government obtaining the return of
the ships, said it was a complicated
legal question.
Mr.. Lasker said that the Hartman
interests would receive the ships for
temporary operation when the govern
ment gets them back, but that they
eventually would be placed on the mar
ket for sale and the bids would be
opened publicly. At present the ar
rangement with the United merican
Lines is that they operate the vessels
on day to day contract.
"No one inspired my action in al
locating the ships to Hartman but my
self, and any one who says otherwise Is
a liar" he declared.
Following conference with Mr..
Schlesinger, John Callan O'Loughlin,
assistant to the chairman, and William
Marshall Bullitt, special counsel for
the board, Mr.. Lasker launched into a
preamble to the main statement. He
said:
"The hoplessly tangled financial stu
alton of the United States Mail and the
Mayors was known to the board when
it undertook to retake the ships on
July %. The board was advised by its
own counsel and eminent outside coun-
sci that it could surely get possession
of the ships by filing possessory libel
There can be no doubt that under the
possessory libel procedure the Shipping
Board could have gotten its ships back
but such procedure, counsel also ad-
vised, would tie the ships up at least
two weeks or so or for an indefinite
time.
"The board was unwilling to take
any action, even that which insured its
legal rights, which might take the
stars of its fleet off the seas
Immediately the United States Mail
went into court. the board refrained
from making public statements in the
hope the Mayors would come to their
senses in the full realization of the
financial difficulties in which they had
involved themselves and in good con-
science act rs good Americans and re-
turn the ships to their rightful owners,
the Shipping Board, at the same time
by such action preventing possible pro-
ceedings.
eve could not ruin their credit when
we knew they were insolvent. On July
22 we knew that the Mail was insolvent
and the action we took, far from being
the cause of the company's embarrass-
ment at any later time. was taken be-
cause we felt that with the knowledge
the government had of the Mayors
condition we were not justified in
permitting innocent creditors to be
further duped."
Mr.. Lasker then proceeded to read
the answer of the board to be filed in
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