New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-14

Federal Officers in Council
At the New York headquarters Of
the Shipping Board yesterday, VIM.
Marshall Rullitt, special counsel for
.he government, was in consultation
throughout the day with Elmer Schles-
niger. general counsel; John Callan
OIoughlin. assistant to Mr.. Lasker,
and several members Of The legal de-
Dartment.
statement at this time re arding the
clearing up of INC mystic that has
surrounded the governmer; ; side of
the case since the ships were seized.
Asked what effect the application
FOR a receiver would have on the Ship
ping Boards suit. he declined to an
swer. He did, however, reiterate his
statement that as soon as there WAS
anything of Importance to be made
public it would be sent to all the news
papers.
Much speculation has been made as
to the inner reasons for the board S
seizure of the nine ships. and the
most probable has been that MIR. Lasker
became acquainted with the financial
standing of the Mail corporation
shortly after his appointment as
chairman, and finding that it was in
arrears for charter hire in the sum
Of S40O 600 Immediately took the mat
ter up in council with the result that
he was authorized to seize the yes
sells
No statement was issued By the Mail
company. yesterday, it was learned on
excellent authority, however, that 1t
is only the question of short time
when the ships will be restored to the
government and then turned over to
the Hartman lines as had previously
been done before the injunction pro
ceedings were instituted.
Creditors Believed Protected
Rasing tie belief on Mr.. Greenorgh's
solvent, there is every possibility that
the creditors will not lose heavily in
the readiustment of the company's
financial affairs. 1t is known that the
Mail has obtained no loans in me last
four months and has been forced TO DO
business with capital derived from pas
senger fares and freight cargoes. As
the expenses of running the ships IN
commission are reported to be enor-
nous, compared with the receipts since
the new immigration law went into
effect, it is believed that the indebted
ness due to the reconditlonlng Of the
vessels was the real cause of the
s,raitened circumstances in which the
Mayors now find themselves.
How the receivership Will affect
the numerous other corporations with
which the Mayors are prominently
identified could not be learned.
Shipping circles we're surprised to
learn of the entrance of Malcolm
Chace, director in the Old Colony
Trust OF Boston, and Alexander Smith,
pres dent of Peabody, oughtaling &
Co.. into the Mails board of directors
and their subsequent designations. Il
has been known all along that the
Navers through several of their cor
porations we're depositors in the Old
Colony Trust Company as we'll as in the
First National Bank Of Boston.
The principal object of the attorneys
for the stockholders and the creditors
of the Mail is to protect the interests
Of the latter. II the ships are returned
to the government it is said that the
chances of the creditors for collecting
an appreciate portion Of their &C
counts would be greatly lessened, as It
is folly to suppose that the board
would assume the debts Of the Mail,
and without the ships that corporation
would have no source OF revenue.
The outstanding Indebtedness of the
Mail is given as S2,6l3 900 by DeI.an-
cey Nicoll jr.. who, with his father,
Delaney Nicoll sr., and cambridge
Colby, are leading a fight to retain the
ships to protect the creditors. If the
ships should be turned back to the
board, MIR. Nicoll says, these creditors
would be wiped out