The evening world. [volume] (New York, N.Y.) 1887-1931, 1921-07-23
Mail Line Official Says Com
pany Has s1,5Oo,OOO Credit
With Government to Offse.
Charges of 100000. go
viii Fight Against Efforts Of
So-Called Transatl a tic
Combine to Dictate as to
~ Independent Shipping.
iieorge Washington. America
:S;rsQuE.F.aana, President
Grant and Agamemnon
Taken-TO Seize 4 Others.

In the swift and drastS action oe
the United States Shlpp>hS Board In
taking over physical possession Of
lvc OF is vessels yesterday altar.
noon from the United States Aau
Company. TO which the ships wers
chartered. and IN announcing the
seizure OF four other vessels now q.
voyages as soon az they can ~
reached. the shipping w~ld secs o
renewal OF the old warfare betwssa
the so-caIled Transatlantic Combins
and any and all enterprises which
seek to operate independently Of II
J. Barstow Smull. Vice President Of
the Emergency Fleet Corporation.
representing Chairman LaskLr o. the
Shipping B1ard In yesterdays action
with Elmer Schlesinger. general coun-
sci Of the Board. asserted the setzuro
was made because Of an indebteiness
of 100000 accumulatiug through
April /.
"The oficials OF the United States
Mail Line" said Mr.. Schlesinger to-
day, with the nodded approval OF Mr..
Smull. who sat beside him, "in spite
Of all their nag waving and patriotic
oratory. arc in a position out Of
which talk will not get them: they
have not paid their rent; they have
given no attention to monthly de-
mands that they pay 1t: they have
been dspossessed."
President Francis r Mayer OF the
United States Mail Company made
this Statement. to- day:
The statement OF Mr.. Schlessinger
that the United states Mail had failed
to pay $500, 900 rental due since March
81 is ridiculous. The, hoard owes
! something like s2,0oo.o00 to the Mail.
Under the terms OF the contract
the Mail was ito pay at the rate OF
$3.50 per net registered ton per month
commencing on and from the date Of
the completion OF the recondit ontng
OF said vessels.
None of the vessels has been COM
pletely reconditioned. Under these
terms OF the contract there 10 tech
nically no charter hire earned or due.
THE Mail has, however, at tbs
earnest solicitation OF the Shipping
| Board, placed some OF the vessels IN
service before they were fully re-
conditioned, and, in order that thu
, hoard might enjoy the revenue there
from, has given the Shipping Board
more than s?5oooo as an advanos
: upon account Of charter hire TO be-
come due.
1t was then understood that the
sntre subject OF hire would be held
IN allegiance.
"On April 6, 1921. the board VOL
unfairly modified the contract and
! agreed to pay for reconditioning the
America and the Washington. The
Mail has expended n excess OF $780,
4 900 on the America alone. and this
amount Is due from the board to the
Mail under the arrangement Of April
s. so that even II the contentious OF
the board as to the amount Of hire
due were correct, It will be seen that
the board has been overpaid."
Broadly speaking. according to ship
ping men, the Government has btan
leasing ships to private operators
with the understanding that the chss.
terers should put them In proper con.
dtiop and tho expense OF the work
should be repaid by the Govsrnnant
out Of the charter chargea M