Evening star., 1921-07-24
COMPANY RESISTS
SEIZURE OF SHIPS

Continued from First Page.)
According to Elmer Schlesinger,
general counsel of the Shipping
Board, who was with Mr.. Smull, the
hoard has got to get down to a busi-
ness basis.
"Jollied" Out Of S5.OOO.OOO.
1.-THE old board was iollied aut of
S5,000,000 more than the United
States Mail was entitled to-" he said,
"and they have kept the freight and
passenger receipts since March 81"
Replying to a charge made today by
officials Of the United States Mail
that the Shipping Board owed it
money, Mr.. Schlesinger said he was in
a position to say that the Shipping
Board did not owe the company any
thing.
Positive denial was made of al
legations that any interests other
than those Of the United States gov
ernment as represented by the Ship
ping Board were concerned in the mat
ter, and both asserted that if there
were, they would have nothing to do
with it.
Decision to have the United Ameri-
can Lines take charge of the ships
was reached this morning, Mr.. Smull
said. He reiterated that the arrange
ment was only temporary, and that
the Shipping Board was not COM
mitted in any way as to future policy
respecting the ships or as to how
they would be operated or by whom.
Others to Be Seized.
The action taken" he added was
!, in the interest of the government,
and in order that shippers and pros
pectfve passengers who had made
contracts with the United States Mail
Line might not be .inconvenienced."
the steamer Pocahontas. now at
Naples, and the Princess Matoika, at
Bremen. will be taken over in the
name Of the board on cabled instruc-
tions to the captains. The master of
the Potomac. now at sea returning
from Bremen. has been notified by
wireless of the boards action and
instructed to report to the board S
representatives here on his arrival.
Mr.. Schlesinger added that there
were "other considerations than the
100000 alleged to be due the board
which led to the action OF seizing
the ships. He declined to state what
| these were. stating he inferred the
board would be defendant IN a court
action and these matters would come
up then. He also said that action
against this company was taken as
in line with the boards policy OF
clearing up all outstanding accounts.
This one. he said. was one of the
! largest that has yet been considered
Not Reconditioned.
| Admission was made that the claim
| of the United States Mail Company
| that the ships had not been complete
ly reconditioned was correct. He de-
clined to say if similar action would
| be taken against any other company
| owing money to the board.
! Francis R Mayer president of the
United States Mail Company. said that
under his contract with the board
! there was an express provision for
| appointment Of arbitrators to deter
| mine matters in dispute. The amount
due the board. he added. came under
this head, as the subject of hire was
in abeyance relative to it being re-
duced Some of the ships, he said. were
put into service before they were fully
ireconditioned in order that the board
might benefit by the revenue there
from, and that his company has given
the board more than s250.00o as an
advance upon account of charter hire
vet to become due.
Claims Board Owes.
| Mr.. Mayer also declared today that
instead of the line owing money to
the board, the board owed $2.000.000
to the company. He said the company
had given the board more than $780,
mn as an advance upon rentals and
thar in fact the board had been over
paid.
Under the terms OF the contract
with the board. Mr.. Mayer said, the
company was to pay at the rate Ei
$3.50 per net registered ton each
month. commencing on the date OF re-
Conditioning, but none of the vessels
has been completely reconditioned.
When the s250,00 was advanced to
the government. he said. it was then
nnderstood that the entire subject of
hirinr would be held in allegiance,
pending an adjustment.
On April last, he said, the board
xo1untarily modified the contract and
agreed to pay for reconditioning the
steamers America and George WASH
in excess of $250,000 on the America
[ alona he said.