The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-07-29
SHIP BOARDH|TS
BACK At OWNERS
.0E mail LINE CO.
Denies Firm Right to Buy Yes
sells, Charging Previous Pay
ments Were DefauIted.

pany yesterday were:
Tho Shipping Board. as a matter
Of legal routine. had the injunction
suit brought against II and other
defendants by the Mail Company
Transferred from the State Supreme
Court to this Federal Court, where
4 hearing on Jurisdiction will be
held next ThuySday.
Leayitt ]. Hunt. of the law firm
OF Hunt, Hill 4 Betts, announced
that a suit for $4,000 fer work al
legged to have been dane in recon
ditioning the steamship Potomac 10
York Harbor Dry Dock Corporation
against the Shipping Board and the
stssnnship company. as co-defen-
dAnts. .t..'
" Delaney NIGEL. Jr.. of counsel
for the company, revealed that the
very large financial interests
with which the company has been
negotia ting, and which made pos
sible the offer to buy outright the
nine ships In dispute, have been in
tereSted for more than four months.
II vas established on high author
ity that the Shipping Board takes
the position that the company de-
faulted In its contracts with the
pVSTQ anu thQb hoS nv iA1Ht oHoSA
the contracts to buy the ships.
Stirred Foreigners.
The significance Of Mr.. Nicoll's
statement that great financiers have
bssp interested for several months In
the venture Of the United States mail
In putting the American flag back on
the Atlantic lies in the fact that 1t at
once rsis<d the question whether II
had not hastened the propaganda Of
foreign shipping interests against the
company.
The significance Of the announce
ment of a suit against the Mail Com
pany and the Shipping Board as CO.
defendants lies in tho fact that 1t
obviously would, discomfit the com.
pany q great deal and the Shipping
Beard not At all
In fact, It was from an official Of
the Shipping Board that newspaper
men first learned OF this new suit i'm
pending On the other hand, although
Shipping Board men knew all about IT..
officials Of the company said II came
as great surprise to them.
w.. Big Bill Not Expected.
One company official said that the
original contract with the New York
harbor dry dock corporation had
been entered into at the earnest so.
lieitation of the Shipping Board. The
original estimate, he said. called Tor
$4,000. After $780, 900 had been
paid in. he asserted. the corporation
sent q bill. for 3420. 900 more.
That was two days before the
Potomac was ready for delivery. That
ended negotiations, he added. except
that at the advice of Shipping
Board official 10000 more was paid
the dry dock concern.
This official also made II clear that
the promise of Rear Admiral Benson,
while chairman of the board. to rec
lower charter rates Is the
bedrock foundation Of the company's
defense.
Chief Point Of Action.
The Importance Of this understand
ing of the company with Benson
cannot be overestimated.
Yesterday one large stakeholder of
the United States Mail Steamship
Company went even further. and said
that the charter hire of more than
$500. 900. non.payment Of which was
given by the Shipping Board as rsa.
the nine ships last Friday and Sat
urday, was withheld on the distinct
that 1t was yhe advice
of rear admiral to withhold 1t.
Proof of the wide public interest
in this fight that the company char
acterizes as last ditch battle to
keen foreign interests from driving
the American flag from the Atlantic"
was seen in Justice Burr's part Of
tho supreme court yesterday morn.
ing.
Strong Feeling Shown.
b The court room was thronged to
capacity by those who wished to
hear the dry-as-dust legal preliui
nariss to the great court war i'm
pending.
1t was a fitting testimonial to the
feeling. everywhere ap-
parent, that the American flag should
so back to where 1t belongs on The
seven seas.
And, as a fact. that is the issue
legally correct in this case
or not-in which. the American public
Is interested. Hundreds of letters
kilograms and messages received
4.