New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-16
A. ]. Baldwin
Is u. s. Mail
Co. Receiver

Baldwin replied:
"Well, guess he'll run the ships
No official statement was issued by the
board as to its next course in the
| courts.
| Petition Charges insolvency
The complaint Of the Berwipd White
Coal Mining Company, in the receiver
ship action, claiming $l5t,870 for
merchandise sold and delivered, says
| that the Mail was organized in 1920
with a capital stock consisting of ZOO
600 shares of no par value, of which
| 100000 shares are outstanding and
Steam ship Corporation. The liabilities
are estimated in excess Of $2,000,0 900
which are now due or soon to become
due, and it is charged in addition has
claims against it by various parties
upon contracts for more than $17b,00c
and has not on hand sufficient funds
to meet its obligation. The creditors
| it is alleged, are pressing and the
Shipping Board is threatening to seize
the vessels under charter to the de.
PENDANT. A receiver is therefore asked
to protect the creditors.
Tho defendant admits the aiiega-
| tions il the complaint and consents to
the receivership.
Mr.. Bullitt arrived at the Postofiice
Building yesterday morning shortly be-
for 10 o'clock and at once filed the
answer of the Shipping Board in Fed
erai District Court to the injunction
suit brought by the Mail. This docu-
ment had been made public by Mr..
l.asker, in which the grounds were set
forth for the action of the government
in seizing the company's nine char
tered ships.
ny d.,ouooo;oI ~, Co1ora1 Will
liam Hayward, United States Attorney,
and John Holley Clark jr., Assistant
United States Attorney, Mr.. Bullitt
started for Judge Manton's chambers.
In the hall he passed the Delaney
Micolls, senior and junior, and Balm
bridge Colby, associate counsel for the
Mail, but no greetings were exchanged
among the opposing lawyers.
IF receiver is appointed what eff
feet will it have on the injunction ?"
Mr.. Bullitt was asked.
at will mean that the injunction
proceedings are practically dead as
the receivership will take precedence, -
he replied
"Will you take action against the
receiver to recover the ships in court
or will you proceed amicably to have
them turned back to the government %
"That is question | cannot
answer at this time
Court Invites Suggestions
Judge Manton opened the proceed
ings by asking what suggestions the
attorneys had to make as to a re-
ceiver. Mr.. Nicoll sr at once re-
piled, suggesting George w. Sterling.
at present manager for the New York
district of the Shipping Board, or
; Timothy Z. Byrnes, counsel for the
Mail company at the time of it's or
ganization.
Mr.. Bullitt asked Mr.. Nicoll whom he
represented, and the latter replied
somewhat testify that he had explained
his connection with the receivership
proceedings last Saturday.
III represent the United States Mail
and therefore it's creditors" he said
"That is a strange situation" re-
marked Mr.. Bullitt and then went on
to state that he represented the larg-
est creditor of the Mail, namely, the
United States Shipping Board, that he
believed the latter should have voice
in the appointment of a receiver, and
he nominated c. D. Mallory, Of the
Munson Line; Frank c. Munson, of the
Munson Line, or August r. Mack.
"The receiver should be man who
will keep the American flag on the
high seas" said Mr.. Bullitt. "He
should be experienced in shipping and
should be capable of operating the
ships at minimum of waste, as the
people are already heavily burdened
with taxation. He will face a very
difficult situation. The Pocahontas
one of the ships involved, is in Italy
and is libeled for a large sum of
money. 1t WILL be his first duty to re-
do
Byrnes can do that in the face of the
Mails present financial position"
The court interposed to say that if
there was to be a contest between the
Mail and the Shipping Board an indie
pendent man would be the most desir-
able person for the office.
Mr.. Hunt, Of Hunt, Hill & Belts
attorneys for the New York Harbor
and Dry Dock Company, who libeled
the Potomac for approximately SITS 00C
here, added his plea for an independent
receiver, saying it would be unjust to
the creditors for an insolvent company
such as Mr.. Lasker said the Mail was
to operate the ships.
cambridge Colby said he knew both
Mr.. Mallory and Mr.. Munson and recog-
nized their high qualities, yet since
shipping men to-day for the greater
part are either recipients of favors
from the Shipping Board or expect
them, they are practically agents of the
the board"
II agree with the court that the re-
ceiver should be an independent bust
ness man." said Mr.. Colby. This &C
tion would not be before you were ii
not taken in disregard of the rights OF
the United States mail. Nobody is try
ing to wrest the ships from the board
| am sure that when the intensity OF
controversy wears off that all will be
found working toward the best solution
of the problem, including Mr.. Lasker
whose zeal is unquestionable. even if
his promptitude and facility Of utter
ance are open to discussion"
Judge Manton thereupon announced
that he had in mind business man
With whom he had an appointment and
would offer him the receivership and
if he accepted he would announce the
selection later in the day.
Prior to the opening of the proceed.
ings Nicoll, Anable, Fuller & Sullivan
representing three creditors, filed ar
involuntary petition in bankruptcy
against the Mail company. 1t devel
oped that they won in race with
Olcott, Bonynge, McManus & Ernst
who also filed a like paper.
In the Nicoll action the creditors
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