New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-17
ON
u. s. MailCo.
lis Cancelled
Underwriters Refuse to
Renew Policies Except
on Cash Basis; RECEIVER
ship Refused by Baldwin

The affairs of the United States Mail
Steamship Company, which for weeks
has been involved with the United
States Shipping Board in fight for
possession of nine liners originally al
located to it, took a decided turn for
the worse yesterday
The conclusion of a series of disas-
trous occurrences found the Ma COM
pany in predicament far more serious
than any it has confronted since the
legal struggle started.
The most telling blow against the
company was the refusal of the foreign
and American marine underwriters to
continue insurance policies on the nine
ships in question. These were can
celed by the underwriters, who said
that they would refuse to renew them
until they had received payment by
cash in advance.
May Be Turned Back to Board
In addition to this action. which
means that the Mail will be unable to
operate the uninsured craft and that
they probably will be turned over to
the Shipping Board, cable advices we're
received from Italy to the effect that
the liner Pocahontas, one of the allo-
Gated vessels, will befsold in Naples on
Saturday unless the money owed by the
Mail to Italian firms for supplies, coal
and repairs was not forthcoming by
that time. The Italian companies claim
S67,50O
Another development of the day was
that Arthur J. Baldwin, appointed re-
ceiver for the Mail company on Mon
day by Judge Martin r. Manton, re-
fused to serve. His successor will be
announced to-day.
=. Delaney Nlcoll jr., attorney for
the Mail, failed to issue the promised
financial statement which it was as
serted would discredit Albert D.
Lasker's charges yesterday.
BY far the most important Of the
new moves concerning the Mail com
pany came to light with the discovery
that the foreign and American marine
insurance companies had given notice
to the Mail on Monday of the cancel
latlon of the policies on the nine ships
for which the government is fighting.
The Shipping Board was made q party
to the notice, which will become ef-
fective at noon August 20. AS pre-
miums are due quarterly, approximately
S215, 900 must be Forthcoming Satur-
against fire and the perils of the sea-
and the passenger money likewise sare-
guarded.
In the mean time the ships will be
covered by what is known in marine
insurance circles as a "full hull
policy"
The nine ships were insured as fol-
lows
Pocahontas s1,5oo,ooo; Princess Ma
toika, $2,192,000; George Washington,
So 100000; America, SLIGO, 900; Poto-
mac, $3.50. 900; Susquehanna s1,0O0,00O
and the following three carrying port
insurance: Mt. Vernon, President
Grant and Agamemnon, $4,000, 900. a
total Of S12 ,232,O00 involving premiums
amounting to approximately $675,OOO
annually.
Mayer Denies Insurance Debt
When this situation was brought to
the attention of Charles Mayer, of the
Mail company, yesterday afternoon, he
denied that the Mail was indebted in
any amount for moneys due on pre-
mluns.
Frank B. Hall & Co., marine insur~
ance brokers, 56 Beaver Street, CON
frmed Mayors statement by saying the
premiums had always been paid
promptly up to the present time, and
the reason for the cancellation was
that the underwriters did not feel un-
der the circumstances of the litigation
that they should be asked to grant any
credit TO the Mail. The insurance can
be continued if the premiums are paid
quarterly in advance by the receiver
or the Shipping Board
This uroc c0OcidoroN tho 1uorr+ ro-
verse for the Mail interests since tho
board seized the ships, FOR unless the
insurance is paid the company will
again be in default, according to the
contract, and the board will, it is ex-
pected, take prompt measures to pro-
tcct its ships by petitioning to the
CONTINUED page three)