New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-29
Dry Dock Firm
| To Sue Mail Co.
Il or $4,000
Concern Which Lost Nine
Liners to Shipping Board
Will Be Charged With
Failure to Pay Repair Bill
Meyer Says Contract Was
Let TO N. Y. Harbor Corp.
Under Strong Pressure

Tho United States Mail Steamship
Company, which lest nine of It's ships
to the Shipping Board for alleged de-
fault in charter hire, is to become in
volved in further litigation to-day,
when the New York Harbor Dry Dock
Corporation will file libel action
against the steamship company and the
government in an attempt to recover
about $4,000 said to be due from the
company for repairs to the steamship
Potomac
Tho Potomac, which carries about
1000 passengers and is registered at
1858 TONS" said Charles L. Fraser,
president Of the dry dock company.
"was completed and delivered to the
Mail line March 20, and sailed on that
day for her European port.
"Sincc March 20 Of this year we
have found collections from the Mail
to be most unsatisfactory They have
been in default continuously since the
day we turned the ship over to them.
We have made almost daily appeals to
them for money, without avail. They
never gave US the same answer twice
why they could not pay u.s.
An officer Of the Morse Dry Dock and
Repair Company admitted that the
United States Mail Steamship Company
was indebted heavily to his concern for
repairs to the Princess Matoika and the
oca hontas, but declined to say
whether any decision had peen made
as to the course to be followed in col
lecting the sum due. Both vessels are
in foreign ports.
In Dispute for Months
In statement given out at the
office of the United States Mail Steam
ship Company i. was said that the sum
due to the New York Harbor Dry Dock
Corporation had been in dispute for
months, that Francis B. Mayer, presi-
| dent of the steamship company, had
| laid the matter before Admiral Ben
son Of the old Shipping Board in a
letter dated July ID, 1921, and that it
was believed then that The Shipping
Board would mediate in the dispute.
MIR. Mayer said in his letter of July
Ia that the reconditioning of tho Po-
tomac was placed in the hands of the
New York Horbor Dry Dock Company
as the result of "strong pressure" and
with ''the understanding that the Ship
ping Board was interested lr the con-
tract being SO placed"
When the job was half done or more,
Mr.. Mayer continued, the dry docl,
company estimated that the cost would
be $232,0 This amount, Mr.. Mayer
says, he is willing to accept as reason
able, although exceeding the original
estimate by $4,000.
Delayed Delivery Alleged
at was only after the very much de-
layed delivery of the S. s. Potomac
which resulted in the loss Of 800 pas
sengers and Of net revenue of at least
$70,000," he wrote, chat the bill was
rendered by the New York Harbor
Dry Dock Corporation for $42S,0O0 We
informed the New York Harbor Dry
Dock Corporation that we could only
make settlement on the basis of the
statement given US when the work WAS
said to be SO per cent or more completed
and that it would be necessary to adjust
Of eny bills above 1922 900"
The following paragraph occurs in +
statement given out by the United
States Mail Steamship Company:
at has been suggested that the
United States Shipping Board due te
it's professed interest in the New York
Harbor Dry Dock Corporation, has
, been instrumental in instigating thi.
suit S.1ce the inception of the pro
ceedings brought by the United State.
Mail Steamship Company to stay the
members of the United States Shipping
! Board and the other defendants nance
in the suit, the Hon. William Marshal
Bullitt, former Solicitor General o.
the United States, has assumed com
mend of the defense in behalf of the
{ government. 1t is inconceivable to VI
and We refuse to credit, in view of Mr.
5 Bullitt's professional standing and in
l tcgrity, any such statements and W,
! feel confident that he has in no wa,
9 been connected with the institution o
e this case"
Mr.. Bullitt said that he knew abou
t the impending libel action and ha'
Y earning it. 1t would not affect the in
/ junction proceedings brought by tn
United State Mail Steamship Compan
to restrain the government from seiz
ing it's ships, Mr.. Bullitt said, thong
it might result in lien against tn
\ Potomac.
To BE Heard Thursday
I The injunction proceedings will
come up before Judge Augustus Han
in the United States District Cour
Thursday. On the application Of tn
government they were transferred t
that court yesterday from the stat
a Supreme Court, where they originated
e the transfer being a formality whic
took less than ten minutes Judg
Hand will decide whether the case be
: longs in Federal court or stat
= court
g Concerning the offer of the Unite
: States Mail Steamship Company to es
i ercise it's option and purchase tn
o nine ships seized by the Shippn
r Board Mr.. Bullitt quoted clause c
the contract in which it was state
r that the option of purchase could b
l. exercised only when the charter hir
;. was not in arrears