The New York herald., 1921-07-28
MAIL Line OFFERS
TO BUY nine SEIZED
ships FROM BOARD
Claims Option to Purchase
Under Terms Of 1920
Contract.
VALUE is $9,000,O00
Proposal Does Not Affect
Present Injunction Pro-
ceedings.
COURT ARGUMENT TO-DAY
Government Attorneys Will
Seek to Have Case Tried
by q. s. Judge.

The United States Mail Steamship
Company announced last night it had
decided to purchase outright the nine
ships which were seized last Friday
night by the Shipping Board for al
legged failure to pay 100000 arrears
In rent.
1t was said in the Office of Francis
B. Mayer, president of the line. that
negotiations are being carried on with
financial interests for money to buy
the ships. It was said that If the ne
gotiations are successful new business
interests will be associated in the
ownership and management of the
United States Mail company.
The Shipping Board is notified In a
letter made public last night that the
company has decided to avail itself of
the terms of the agreement dated May
%, 1920, under which the company
has the option to purchase the ships
which 1t has been operating under
contract with the board. The valua-
ton of the nine ships is estimated at
about $4,000, 900. Mr.. Mayer has asked
the Shipping Board to Ak It's price on
the following steamships: America,
George Washington. Susquehanna,
Pocahontas, Princess Matoika, Poto-
mac, President Grant, Mount Vernon
and Agamemnon.
Mr. Mayer sent the letter to Capt.
George w. Sterling. director of opera
tions for the board in New York. for
transmission through him to the board
az washington, where II will be acted
upon.
Court Action Unaffected.
All parties to the controversy agreed.
however. that the offer to purchase the
ships does not affect in any way the
court action which already has been
started. The next move In the fight for
possession Of the ships will be made this
morning. when the Shipping Boards
petition to have the case transferred to
the Federal Court will be argued before
Justice William p. Burr in the Supreme
Court
The petition for the transfer was Hled
yesterday afternoon in the County
Clerks Office. The petitioners are AL
bert D. Lasker, chairman Of the Ship
ping Board the United American Lines.
Inc. to whom the seized ships were
allocated Thomas d. Mccarthy. United
States Marshal the United States Ship
ping Board Emergency Fleet Corpora
tion; j. Barstow Smull, Elmer Scbles-
niger. T. v. O'Connor. George z. Cham
borlain. Meyer Lissner. Edward G. Sum-
mer and Admiral William s. Benson.
These are the defendants In the action
brought by the United States Mai Line
to restrain them from taking over the
nine seized vessels. The original suit
ing before Justice Francis Martin In the
equity term OF the Supreme Court.
In asking the transfer to the Federal
court the defendantss set forth that the
action Is a civil one In equity that the
amount involved is several millions, and
that the United States Government is
interested In the outcome of the case.
Marshall Built. formerly Solicitor Cen
eral OF the United States and now d.
recting the legal fight for the Shipping
Board. said the removal to the Federal
Court was asked simply because the
defendant has a right to ask IT,"
Legal Aspects "Tfck1ish.v
The legal aspects regarding the proper
place 10 try the case were described by
lawyers as 'ticklish." De Lancey Nicoll.
Jr., Of counsel for the United States
Mail, said that before the Injunction
was granted by Justice Burr he and
his father and Bainbridge Colby, former
Secretary OF State. had been In con-
ference for nearly twenty-four hours
before they decided TO take the case to
the State courts.
><"Our first impression" said Mr.. NIcoll.
was that the Federal court was the
place for n. but we later decided that in
our iudgmen. ~ was n proper case for
the state courts. Therefore. we went
before Justice Burr. However the ques-
ton Of Jurisdiction n ticklish one n
does not matter 10 us where the case Is
tried But we probably will take par,
In the discussion and give the roa sons
why we took II 10 the state cour,
originally"
II Justice Burr signs the order remov-
ing the case 10 the Federal court. then II
will be- up 10 a Federal Judge 20 pass on
the case. The United States Mail may
then move that the case be renandcd
10 the state courts. II Justice
Burr does not sign The order, then the
argument on the Injunction may 70
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