The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-10-04
CLAIMS u. s.
NOT HURT BY
BRITISH PACT
Operating Agreements of In
ternational Mercantile Mar
Inc Did Not Affect American
Flagships, Assertion.
ANSWERS Sen. JONES
(By Associated Pressp

NEW YORK, Oct 4.-Operating
agreements between the international
Mercantile Marine company, an Amer
lean corporation, and the British gov
ernment, did not affect the company's
American-flag ships even before the
drafting of a supplementary agree
ment requested by the shipping board,
P. A. S. Franklin, president of the In
ternational Mercantile Marine told
members OF the board at special
hearing here today.
The hearing was called to obtain
from Mr.. Franklin recital OF detail
OF the British agreement which was
attacked by Senator Jones of Wash
ington before its amendment as being
nimical to the foreign commerce OF
the United States. Senator Jones
charged it bound the company ito pur-
sue no policy injurious to the interest
of the British merchant marine or OF
British trade"
To Offset Advantages
The agreement, originally drafted
in 1908, was sought by the company,
Mr.. Franklin told the board, to offset
advantages gained by the Cunard line
when the British government, TO
build up that line by loans and favor
able mail contracts, following acqui-
sition of British tonnage by the Inter
national Mercantile Marine.
The agreement gave the Interna-
tional Mercantile Marine the benefit
of British mail and other valuable con-
tracts. He denied that it had been
kept secret, as charged by Senator
| Jones.
During 10 years of operating under
these agreements" he continued, 1--WE
| have never been interfered with by
the British government in the manage
ment of our ships, and no restraint of
any kind has ever been placed upon
u.s. We have always been entirely
free to act in every direction and in
whatsoever manner we thought best
for the ships that we owned, and we
/ have pursued policy accordingly.
American Corporation
! During this entire period we have
had American flagships in competition
i with British ships, and British flag
ships which we own in strong and
continuous competition with the Gun
ard and other British companies
Mr. Franklin empha sized that the
company was an American corpora
| ton, 991a per cent of it's stock being
owned by American citizens. Only
one-half of one per cent of the stock
is held by English investors. he said
and a similar amount by Canadians
He asserted that, recognizing the
development of national aspirations
for an American merchant marine, the
company began negotiations in 1918
to dispose of its British-flag ships to
a British syndicate, but that the sale
was stopped at the request of Presi
dent Wilson.
Read Wilson Letters.
He read three letters from Mr.. Viii
son in support of his assertion and
also excerpts from the Congressional
Record to show that the Senator Jones
was one of those who opposed the
sale. He ad0ed that the United States
government then bought the ships
but lated withdrew from the transac
ton Continuing, Mr.. Franklin re
viewed efforts of the company to buy
"a former German ships from the Unit
ed States for a total of 2S,500,000 ant
said the company had offered to agree
to keep the ships forever under ths
American flag.
. This, together with the fact that i
! was prepared to spend more than tht
amount bid in reconditioning TIL
ships, he declared, furnished conclus
i've evidence that the company's agree
l ment that it's British ships should no
: be used to the detriment of Britisl
: trade, did not prevent the compan
from expanding its business unde
: the. American flag.
I'VE acted without consultation
with, or interference from the British
4 government in this matter" he de
clared.