The New York herald., 1921-08-03
j. S. mail Will BID
TOBUY SEIZED ships
Mayer Tells Lasker Offer
May Be Expected in Very
Short Time.
DENIES ANY DEFAULT
Prices for the Nine Former
German Liners May Go
Up to S10,O00,O00.
DENIES ANY DEFAULT
FLEETS STAR GOES TODAY
George Washington Ready for
Maiden Trip, With Congress
men Among VOyagers.

Francis r. Mayer, president or the
United States Mail Steamship COM
pany, sent letter yesterday to Albert
ID. Lasker, chairman of the United
States Shipping Board. announcing
that his company will submit bid In
a. few days for the nine steamships
seized nearly two weeks ago by the
Shipping Board for alleged default OF
charter hire.
The decision to bid for the vessels
was predicted in letter from Mr'
Lasker In which he stated that al
though the line was in default the
board was willing to receive an oHer.
The United States Mail denies the al
legation Of default in its reply anu
promises to submit a statement OF
financial responsibility along with the
bid. as Mr.. Lasker asked.
Of1cers of the United States Mall
made public last night the exchange
OF letters between Mr.. MaYer and MT.
La.ker. which, it is felt. opens a way
for a quick settlement of the litigation
that has grown out of the Shipping
boards seizure of the nine steamships.
Mr.. Laskers offer to consider . piu
for the vessels despite the board's aAe-
cations of default, which he cites as a
violation Of the United States Mails con-
tract and one which excludes 1t from
exercising an option. was interpreted by
.hipping men as an indication that the
Shipcing Board is willing to go more
than half way in effecting settlement
with the United States Mail.
Board won't Waive Rights.
"As you are In default in respect to
many OF the terms. covenants and conoi-
tions of the contract" Mr.. Lasker wrote.
"and as you have not paid charter hire
since March 81. 1921. you have no op-
tfon to purchase the vessels. nor are
we under any obligations to fix any pur-
chase price.
But the board. without waving any
of its rights, will be glad to receive from
you a bid to purchase the vessels men-
toned In your letter. predicated, OF
course, upon your ability to show proper
and substantial financial responsibility
10 carry out such bid II we should ac-
cept It."
Mr.. Mayer In his answer said:
I'VE note that your refusal to accord
this company the right to exercise its
option to purchase is based upon your
contention that we are in default as to
some of the terms Of the agreement re-
ferred to above. The company cannot
admit that 1t is In default and In conse-
auence denies the validity OF your con-
tention. In this connection your at
tention IS respectfully invited to the
fact that the agreement itself provides
for the arbitration of all matters in
dispute In reference to the agreement.
However, we have under considera-
ton your courteous statement that you
would be glad to receive bid from this
company to purchase the vessels and
write to say that In a few days we shall
submit a bid for the vessels and state
n1ent of the financial responsibility OF
our company which we believe will be
satisfactory to you."
The nine steamships. all former Ger
I46,174 tons, and one, the George WASH
ington, is considered among the finest
passenger carrying vessels afioat. When
the subject OF a sale was first broached
last Saturday 1t was reported that the
United States Mail would offer $40, ,900.-
900 for the vessels.
Flagship to Sail To-day.
The steamship George Washington,
flagship of the United states Mall. is
scheduled to sail at / o'clock this after
noon for Bremen and Danzig. 1t win
be her maiden trip across the Atlantic
as a passenger carrying vessel under the
American flag. She will carry 375 first
$50 second and 1,1oo third class pas
sengers and $500 tons OF freight.
Among her passengers will be United
States Senators J. T. Robinson OF Arkan-
sas, William 3. Mckinley OF Illinois
and Thomas Sterling of South Dakota (:
Representatives A. j. Montague and
Mrs. Montague OF Virginia and Fred
erick A. Britton and K. d. Brooks OF
Illinois, all of whom are going TO attend
the Interparliamentary Congress in
Stockholm.
Also on board will be Nathaniel y.
Davis United States vice-Consul in
Berlin; Andrew w. Preston, president
Of the United Fruit Line: Cecil B. Tay-
lor, treasurer OF the latter company I;
John @. Emery. national commander OF
the American Legion, and 100 Legion
aires, who are going to France for
tour OF the battiefelds.
Because OF the presence OF the Le-
gionaires. Senators and Representatives
on board the George Washington the
vessel will be escorted to sea by two
destroyers.