New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-06
Mail Creditors
Begin Hunt for
Assets of Line
Expectation Of Relief From
Shipping Board Appears
Delus;ve. as Government
Denies 1t Is Responsible
May Appeal to Congress
Small Firms Are Threatened
With Ruin if Unable to
Collect ON Their Claims

Creditors of the bankrupt U. S. Mail
Steamship Company undoubtedly will
make determined effort this week to
iesrn what assets have been found by
the receivers. Emmett J. Mccormack
and Herbert Noble, and when they can
definitely expect a payment in full or
on account Of their claims.
Several meetings have been held by
the merchandise creditors, who still
cling to the belief that the United
States Shipping Board eventually will
come to their aid and pay all just
Claims against the ships that were re-
stored to FEDERAL supervision.
According to Elmer Schlesipger, gem
eral counsel for the board, the govern
rent is in no way responsible Tor the
debts incurred by the Mayors in the
operation Of the vessels. He has con-
tended that the contracts were made
with the Mail corporation and not
With the Shipping Board. and there
fore all creditors, with the exception
Of those of the State" boats, must
LOOK to the receivers for relief.
Few, if any, tangible assets of the
Mail are in sight. The claim against
the board Of s1,700,000 for recondi
tioning the various boats the Mayors
put in commission is considered neg-
ligible and subject to bitter litigation.
because the contract between the gov
eminent and the Mail distinctly states
that he later shall pay for this work
and not be reimbursed for FIVE years.
Therefore the chances of 65 per cent
Of this amount of money going as per
contract to the creditors is slim; as
the srss.g G ss santas.+ contends the Mail
Postal Claim Held Up
The next item of Importance is tide
estimated amount of 100000 said 10
be due by the Postoffice Department
to the Mail for carrying the mails.
This sum has not been admitted as
ewing by Postmaster General villa III.
Hays, who placed the amount at $500
coo and who said il would not: be
turned over to the receiyers until the
Mail had paid its charter hire bill of
some 100000. So here again the pos
slhality Of money coming into the COT
fers OF Messrs. Noble and Mccormick
IS remote
The third large source of antici-
p;ted revenue is from marine insurance
iosses, but these losses, said to amount
u about $4,000, are not PAYABLE to
tee Mail, according to the terms ofithe
aolcies. The damages resulting to ;thc
Gorge Washington through two fires
ave not been adjusted, and when they
gre aa5usted they are payable to AN
etler source, as it is authentically1.e-
ifed that Captain Francis R. Mayar
waved his right as president to leclive
tne money resulting from these fires.
Inc advance money paid by immi
Grants, amounting to s1,20o,000, has
disappeared with the exception of about
$4,000, and that money, with other
sinai, amounts collected by the receiv-
ers' had to be used to pay the bills of
me America, which recently sailed Tor
Europe. The fact that the Federal
court was compclled.to issue receiyers'
certificates for debts incurred bv the
receivers OF the George Washington.
such as the wages of the crew and the
ssiarles to inspectors to make an in
yentory of that ships stores, shows
,nas there is no money in the hands of
lhe receivers to pay off the creditors.
even partially and according to indica-
tlons now, they never will have any
money for this purpose.
May Ask Congress for Relief
There is no doubt that some of the
hrms have been hard hit by the failure
u tne wan company, and there is a
possioillty that one large concern may
BOT recover If its claim proves total
1855. sympathy is telt everywhere in
snipping circles for the little merchan
use creditors who cannot afford to
.sSe loss Of $4,000 TO $4,000 in
these times. 1T therefore looks as if
= go, concerted appeal will be MADE to
1n'oert y. Lasker, chairman Of the
S Sad States Shipping Board, to In
. aug pay them their just bills after
nilng proof of claim Lasker, it is
ven known, has no money in The
treasury TO pay claims at this time as
~, lss recent appropriation expressly for
purpose. A''
une Of the most remarkable cases
" tne Mayors suavity is shown in the
taes OF George A. Crawley, archi-.
w ~ ana designer, who was responsi-
ne Tor the interior decorations of the
s sn.ps S mat were reconditioned while in
M me MAIL service. .Crawley, who is an
1,hgiishman, happened to meet Judge
layer fourteen years ago and later his
son, oaptaln Mayer. While ia his own
n na.y he had among his most init
i iua1e friends Henry Phlups and the
'a5ter,s family, of Pittsburgh.
r Last September the Mayors sent. for
..,fawley and asked him to come to
ms country and take charge of the
interior decorations on the liners thew
we're were reconditioning. He came here in
december and then went back and re-
turned with Aleck Hendin, a naval
arcnltect of Glasgow, who was general
i1aanager of the Fairfield Shipbuilding
company In that city.
AS result of this visit an agreement
was entered into with the Mayors. and
sum ume progressed and money was not
forthcoming Crawley consulted his at.
tto ~ Percy Dudley, who advised him
10 nave contracts drawn up. This was
, uone and preliminary payments were
;naae upon them, but Crawley saws he
~ q creditor to-day in the sum of
a ~ $4,000. His work on the George
"ashngton received considerable con.
me by passengers and visitors
Mno inspected the ship last Saturday.
az, creditor for work on this YES.
-. sei IS the artist, who has $500 due. and
"a, little bookseller, who furnished the
iia.99fary with volumes, and who has q
Dlil OF $4,000 against the company,