The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-07-28
MAIL LINE OFFERS
T0BUY SHIPS NOW
SOUGHT BY BOARD
Throws Bombshell IN Marine
CircIes-Price Forecast Is
About Ten Millions.

NEW YORK, July 28.-A legal
wrangle as to whether the State
supreme court or the Federal dis
trict court should handle the litiga-
ton resulting from the United
States 81 = ping Boards attempt to
seize nine transatlantic liners al
located to the United States Mail
Steamship Company resulted today
in all action being postponed until
Monday.
Meanwhile the vessels remain, In
the custody Of the Mail line under
the temporary injunction obtained
| In the State supreme court, which
prohibits the Shipping Board from
interference with their continued
operation.
NEW YORK. July 28.-The United
States Mail Steamship Company
made its second swift and unexpected
move In it's war with the United
States Shipping Board yesterday.
This was the service of notice on
| the Shipping Board that II wished
to exercise it's right under the con-
tracts to buy outright the nine ships
which are the cause of dispute.
The United States Mail Steamship
Company officials were asked II this
| meant that some other great finan.
cial interest had become associated
with them. +. A. Quarles. assistant
to the president, said:
"All we can say mt the present
moment Is that negotiations are
under way with other financial in
| terests."
Surprise TO Ship Board.
The notice that the company wish
ed TO exercise its option on ships
was served on Marshall c. Bullitt,
special counsel for the United States
Shipping Board. by Delaney Nicoll,
jr., of counsel of record for the Mail
| Company.
prise to the Shipping Board, II also
came as an unexpected jolt 20 the
shipping world. There II was look
ed upon as "a call for a Showdown"
that couldn't be ignored.
II was said that II the Shipping
Board was sincere in it's stand that
the ships were summarily seized be-
cause that was the only way to pro-
tect the pocketbooks of their real
owners-the citizens of the United
States-here was a good way for the
shipping Board to give those pocket
books protection in full.
A $4,000, 900 Deal.
No exact estimate of the amount
for which the ships might be bought
could be had. But shipping Is In a
very depressed condition right now.
and at the rate at which British
tonnage Is going on the market.
! $40 900 900 was regarded in Informed
circles as the largest price possible.
The nine ships involved are all the
finest flying the American flag. They
are the America, George Washing
ton, Susquehanna, Pocahontas, Prin-
cess Matoika, President Grant, Mount
Vernon, Agamemnon, and Potomac.
This slashing move by the United
States Mail Steamship Company lie
counted the first move In the legal
battle made by the Shipping Board.
Question Of Jurisdiction.
| This legal move was an attempt to
remove the action from the State to
! the Federal courts. The operation
merely consisted of filing a petition
/ for a removal order with the county
clerk and the submission OF the re-
moval order for signature to Supreme
Court Justice William p. Burr.
Justice Burr on Monday had signed
a temporary Injunction restraining
the Shipping Board. the United States
Marshal the United American Lines
and other defendants from any further
| interference with the ships or other
property Of the United States Mail
Steamship Company.
The force Of the removal order, IL
| signed, would be to transfer the case
in exactly its present condition over
to the Federal District Court. Justice
Burr had not signed the order at
! late hour last night. 1t was explained
that he had not seen 1t
In issuing the temporary injunction.
Justice Burr had made II returnable
before Supreme Court Justice Martin
| At 1915 a. m. today.
Indications were that an argument
over the Jurisdiction might occur in
the State courts this morning. There
was no doubt a long argument would
, be had either there or In the Federal
! court. De Lancey Nicoll, Jr., of coun-
sci of record for the United States
Mail Steamship Company, said:
I'VE do not care in which court
Federal or State-these issues are
tried. We merely are anxious to have
II determined which court has the
proper Jurisdiction, and then to so
ahead and have the injunction made
permanent. But the question is. I
think, a ticklish one.
I'VE at first had prepared to ask
for the injunction in the Federal court,
but after a discussion that lasted all
day and into the night we decided that
the State court was the proper court"
Stage Properly Set.
Marshall c. Bullitt, special counsel
for the Shipping Board. who began
the action necessary to the transfer
OF the case, obviously took the ground
that the Federal court is the place.
Anyhow, the stage was properly set
last night for deal Of legal argument
today in what officials of the United
States Mail Steamship Company and
many sympathizers have termed "a
last ditch struggle to keep foreign
shipping interests from driving the
American flag from the Atlantic
| At the same time that the lawyers
were preparing for the fray today
| neubers of the American Seaman'a