New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-14
De Lancey NicoD Tells
Court That Ship Con-
Germ Is Unable to OBJ
tain Capital 1t Expected
Appointment Will
Come Tomorrow
Prediction is Made That
Creditors Will Not Be
Heavy Losers in Deal

After weeks of fruitless effort to
interest capital in the United States
Mail Steamship Company, the officials
of that organization submitted yester-
day to q receivership.
The application for receiver was
made in the chambers of Judge Martin
T. Manton in the Federal District Court
by Delaney Nicoll on behalf of the
Berwind- White Coal Mine Company
which alleges the steamship company
is indebted to it for more than $780,
900 for coal.
Judge Manton announced that he
would adjourn the hearing until 10
o'clock tomorrow morning, when the
United States Shipping Board will be
represented by counsel and a receiver
named.
Ever since the Shipping Board,
through J. Barstow Smul and Elmer
Schlesinger, seized the nine vessels
chartered by the government to the
Mail Line it has been we'll known that
the Mayors, Charles, the father, and
Francis r., the son, have been en-
deavoring to obtain financial backing
to purchase the ships and liquidate the
Indebtedness of the corporation.
Lasker Calls for Backing
The Mayors were forced to show their
hand when Albert D. Lasker, chairman
of the Shipping Board, replying to an
offer made by the Mail Line to purchase
the nine ships, intimated that he would
consider bid if it should be demon
strated that the Mayors were in po-
stion to carry out their proposition.
Various reports were in circulation
as to tho identity of the interests that
would come to the aid of the steamship
owners. Many Of these rumors lacked
approached for showdown creditors
of the company became active.
One of the first Of these to follow
the government in it's efforts to collect
money due from the Mail was the New
York Harbor and Dry Dock Company
Of Staten Island, which reconditioncd
the steamship Potomac at cost of
more than $475,OOO Of which amount
only $24O,0O0 had been paid The Dry
Dock corporation finally libeled the ship
through its attorneys, Hunt, Hill e.
Belts.
Investigation led to the disclosure
that the Morse Dry Dock and Repair
Company, the Todd Shipyard Corpora
ton and several supply firms also were
heavy creditors of the Mail but on the
belief that financial assistance soon
would be forthcoming the claims were
not pressed.
Last Wednesday Delaney Nicoll
withdrew an application for a receiver
in an equity receivership suit against
the Mail company in the Federal Dis
trict Court. He gave as his reason for
this action that he understood the COM
pany had obtained the necessary none
tary aid and would settle all outstand-
ing debts.
Nicoll Explains Situation
When he refled the papers in the
suit yesterday with Judge Manton he
made the above explanation for his
previous withdrawal and then admitted
that the Mail was unable to get the
assistance it had anticipated Mr..
Nicoll said that he acted for the stock
holders, certain officers and various
creditors.
ord for the Mail, who was present, took
the opportunity to deny that the cor
poration, now apparently short Of
funds, was insolvent He did not op-
pose the motion and cambridge Colby,
who also represents the Mail. likewise
made no objection to the suit
Mr.. Nicoll said he deemed it his
duty to refile the papers asking for a
receiver when he learned, as a result
of the reorganization of the company,
that it was unable to obtain the
promised capital. He took the course
he did for the protection of all the
interests concerned, he said, and sug-
gested to Judge Manton that the ap-
pointment of a receiver be held up
until the Shipping Board and others
vitality interested could be given full
opportunity to appear in the matter
The nine ships are still in the pos
session of the Mail. When Judge Man
ton opened the proceedings Benjamin
Barber, representing the Shipping
Board. withdrew the order directing
Mr.. Nicoll to show cause why the in
junction granted by Justice William B.
Burr, in the State Supreme Court, on
Continued page eight