New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-25
Ship Seizure
TO Be Fought
By Mail Line
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ny Mail Line.
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1t was provided in the contract that
the steamship company was to nav for
this reconditioning.
The steamship company was IN aub-
nit plans ana specifications for this
work" he said. "and the Shipping
BOARD was to approve them, but. al
.nougn the contract was signed Nav 2s.
ls2o' nearly fourteen, months ago. the
plans and specifications never were
submitted.
More Millions Needed
1t Will cost from 100000 to S.
ooo'ooo to reconditon the three ships
stu lying idle. The company spent
money on reconditioning the CHEAP
boats like the Pocahontas, the Patomar
and the Princess Matoika, doing :,
rough job, but they thought that thew
could get the Shipping Board to re,
condltlon the first class liners. lust as
IN the case of the George Washington
and the America"
Mr. Quarles said that the vessels his
company obtained from the govern
ment were In much worse condition
than it had been led to believe and
that the company undertook to recon ON
dltlon some of the ships only at the
earnest solicitation of the Shipping
Board. 1e
"Our original contract with the Shin
ping Board" he said, called for the
turning over of thirteen passenger
boats to US, practically all of which
were at sea when we signed the con-
tract, May %, 1920. They were in the
hands Of the army.
These transports--when turned
over to US eventually there were nine
of them-were in worse condition than
shown on paper. l do not mean to in
sinuate that the Shipping Board acted
in anything but good faith when we
signed the contract, but the fact of
the matter is that we never believed
they were in such a deplorable condi-
ton.
Wanted Them to Hurry
when we took them over the Ship
ping Board officials stated that they
wanted the American flag flying on
the high seas as soon as possible and
urged us to make prompt recondition-
ing of the bulls. They made various
(,
practically unfeasible from practical
operating standpoint.
FINALLY, however, at their earnest
solicitation and at the risk of very
considerable monetary loss to this
company, we agreed to partial recon-
ditioning of some of the ships in order
to meet the wishes of the board that
the flag he put on the Atlantic at the
earliest possible moment.
"None of these ships has been fully
reconditioned and therefore the sum
OF 100000 claimed for charter hire
by the board is not due, as the con-
tract states that it will be due only
when the ships are fully recondi-
toned"
"But you paid the government char
ter hire up to March 81 last. Why did
you stop then? Was it due to fnan-
cial pressure ?" he was asked.
1--WE had laid out $250,000 OIL the
America and the George Washington
and 100000 on reconditioning the
Pocahontas, Potomac and Princess Ma
been put in commission as third-class
passenger ships. The George Wash
ington is to make her first trip Au-
gust g." he answered, leading up to
the reason for disseminating the pay
ment of rentals.
when we signed the contract with
the Shipping Board, trade conditions
were booming. Suddenly there came
o slump and we were forced to 60 to
Admiral Benson and tell him that we
could not recondition yne George Wash
ington and the America at that time
and that we needed financial help.
Denies "Jollying" Board
"He gave it to US and I understand
Ice how
two vessels, the America only taking
100 days to alter and the Washington
about two or three months. He was
not jollied into making this conces-
sion to us and he placed the matter
before the board, who gave it's consent
to the operation solely, l understand,
to get our flag back on the seas.
"Inasmuch as we had advanced ap-
proximately $2,250,000, we felt that the
question of charter hire would not be
pressed and accordingly, as Mr.. Mayer
lie yesterday, it was then understood
between the old board and ourselves
that the entire subject of hire would
be held in allegiance pending determi-
nation as to whether the amounr Of
hire should be reduced, and, when
earned, applied toward reimbursing the
Mail Company for the expenditure it
has made on the vessels, amounting to
date to substantially $2,000,O0O."
MIR. Quarles then explained that the
France and Canada Steamship Corpora
ton, of which Mr.. Mayer and his father
were the heads, was in no way iden-
titled with the Mail Company except
that it guaranteed the contract the lat
ter had made with the Shipping Board.
The former organization operated eighty
cargo carriers during the war from At
lantic ports. The Mail Company was or
ganized as an entirely separate entity,
he declared.
1t is thought that the France and
Canada Corporation will probably be
party to litigation against the govern
ment, since, having guaranteed the
Mail account, it would paturally follow
that the Shipping Board would call
upon its officers to pay the 100000
due.
SeiSed Ships to Sail
On Time, Says Hartman.