The New York herald., 1922-04-10
U. S. LINE CREDITORS
PROTEST DECISION
Write to Senators That Ship
Boards Refusal to Pay
Claims Is Unjust.

Letters protesting against the recent
\ decision OF the United States Shipping
Board to compel the creditors OF the
United States Mail Steamship Company
to resort TO litigation before obtaining
settlement of their claims against the
company have been sent by a committee
Of creditors to Senators Wadsworth anc
Calder OF New York and Frelinghuysen
and Edge OF New Jersey.
The committee is composed OF George
Sprague, chairman Louis Franke,
Louis III. Strouse and J. Howard Morris.
They represent. according to their let
ters to the Senators, 500 creditors of
New York and New Jersey who have
claims amounting to more than s1.500.-
900 against the bankrupt company for
supplies furnished and work done on the
$26,000,0 900 worth of Government ships
turned over to Il. Their complaint is
that while provision to pay the claims
was included in the general appropria-
tion bill passed by Congress, and that
while foreign claims amounting TO about
100000 have been paid, besides cer-
tain domestic claims Ii has been decided
to raise technical objections against
others that. in the opinion of the COM
mittee. will result in long drawn out
litigation.
'sThere is not the slightest doubt in
the minds OF the maritime attorneys in
terested' in our case" say the letters
what the ultimate decision of the high
est court will be. Eventually the legal
ity OF the liens will be recognized and
the Shipping Board will be forced to
pay the claims. Is 1t the wish of the
Administration that we be made to suf-
fer while this litigation is in progress?
A. p I'll g.f& IT, ~
or furnished supplies to these ships
amounting to more than s1.500. 900. And
now we are told to go to court to get
our money. If one test case were possi-
BILE by which all claims would be settled
this might mean only two or three years
We are informed, however, that since
almost every claim has different legal
angle, II would mean hundreds of differ
ent suits. each to be carried to the United
states Supreme Court. You do not need
ITO be told that this would mean costly
litigation lasting for from five to ten
years or more. While this is going on
more than one of the creditors whom we
represent might well be forced into
bankruptcy as a result.
Rather than have the good name of
the American merchant marine suffer
in foreign countries, the Shipping Board
paid more than 81 900. 900 worth Of for
eign claims against the same ships. Most
of these claims were for passage money
paid in advance. These foreigners had
no prior rights to ours
do you realize that until one at-
torney in the Shipping Board raised this
technical legal point, the board had gone
ahead with the payment Of other domes-
tic claims of an identical nature.
amounting to more than $1.000.0o0? Is
this discrimination just to us?
Both President Harding and the
Shipping Board are anxious at this time
10 aid In creating an American mer-
chant marine through ship subsidy.
Would 1t not be in order to first wipe
out the just claims against existing
American ships. which, unless paid. will
forever remain a blot against American
shipping?" N