The New York herald., 1921-02-12
LAY RECEIYERSH!P
TO SHIPPING BOARD
Lawyers Say Delay in Pay
ment Forced Hannevig
!Hto Bankruptcy.
IS SUING FOR S1i.0OO.OOO
Government Offered $1,000
900, Liabilities Are $1,000
900, Assets 100000.

The affairs OF Christoffer Hannevig
and his banking concern, Hannevig a
Co. of 139 Broadway. went into the
hands Of receivers yesterday as the re-
suit. according TO a statement issued BY
counsel for the receivers. OF delay IN
settlement of the United States shipping
Board for work done by the Pusey 4
The involuntary petition in bankruptcy,
filed in the United States District Court.
was on behalf of three creditors. They
were Osler Wade of Toronto. who claims
$ss7.t05; the Equitable Trust Company
OF this city. which claims s250,oo0, and
A. S. Reid of Philadelphia. who claims
$1,000.
On petition of Osler Wade, Judge
John c. Knox appointed Henry A. Wise
OF Is William street and Thomas t.
flanagan of 81 William street tempo
rary receivers, with a joint bond of
$4,000 According to the petition for
the receivers. the liabilities are $S.0oo.-
600 and the free assets are not more
than $4,000
According to the petition. Mr.. Hanne-
Wig owns and controls the Pusey &
Jones Company. shipbuilding concern
organized at the outbreak of the war.
and that company has a claim against
the United States Shipping Board for
100000. The Shipping Board offered
s7.000.000 in settlement, but this was
refused by the company and suit re-
Gently was started in Washington for a
settlement. Mr.. Hannevig claiming that
the award of the Government for $1,000
600 was unjust.
The petition states that Mr.. Hannevig
has assets in Norway and also owes con-
siderable money in that country. 1t fur
ther states that the appointment of a
receiver is necessary TO protect from
dissipa ton the assets of the Pusey &
Jones Company. which was heretofore
controlled by the alleged bankrupt but
which became indebted to the Baltimore
Dry Dock Company for S15o.000, pledg-
ing the capital stock as security.
Christopher Hannevg came to this
country during the latter part of 1916.
In April, 1917. he organized the Hanne-
Wig Marine Trust Company for the pur-
pose of loaning money on ships. then
new form of business in this country. 1t
was then that he secured lease on the
old Liberty National Bank Building,
where his present offices are located. He
IS interested in a number of other COM
panies.
The receivers appointed by Judge
Knox stated that they have retained
Saul S. Myers and James \. Rosenberg
as counsel. They said the cause of the
embarrassment to Hannevig & Co. was
due to the delay in collecting just COM
pensation from the United States Ship
ping Board for the Pusey & Jones Com
pany for vessels constructed during the
war They said that Charles Z. Hughes.
who is now handling the case of Hanne-
Wig against the Shipping Board for the
payment Of the s14.000.000 which the
company claims, will be asked to con-
tinue. and that they all will cooperate
in bringing about a settlement of the
affairs.
The following statement was given by
Mr.. Hannevig:
Conditions are due to the fact that
the United States Shipping Board has re-
fused to pay fair compensation to the
Pusey & Jones Company (of which am
sole stockholder) for work done. The
Shipping Board agreed TO pay such fair
compensation. and is by law required to
pay the same, but is unlawfully with
holding payment"