The Barre daily times. (Barre, Vt.) 1897-1959, 1921-10-04
DID NOT HARM
U. S. SHIPPING
Operating Agreement of
International Mercantile
Marine
WITH BRITISH
GOVERNMENT
Declared Pres. Franklin in
Hearing in New
York

New York, Oct. 4.-Operating agree
ment between the International Mer-
camille Marine, an American corpora
tion, and the British government, did
not affect the company's American flag
ships even before the drafting of sup
Elementary agreement requested by
the shipping board, p. A. s. Franklin,
president of the international Mer-
chant Marine, told members OF the
board at special hearing here to-day.
The hearing was called to obtain from
Mr.. Franklin recital of details of the
British agreement which was attacked
BY Senator Jones of Washington, as
being inimical to the foreign commerce
of the United States. Senator Jones
charged it bound the company ito pnr-
sue no policy injurious to the interests
of the British Merchant Marine or of
British trade
The agreement, originally drafted in
1908, was sought by the company, Mr..
Franklin told the board, to Offset ad-
vantages gained by the Cunard line
when the British government began to
build up that line by loans and favor
able mail contracts, following acquisi-
tion of British tonnage by the Inter
national Mercantile Marine. The agree
ment gave the International Mercan-
tile Marine the benefit Of British mail
and other valuable contracts. .He de-
MED that it had been kept secret, as
charged by Senator Jones.
During 10 years of operating under
these agreements" be continued, Eve
have never been interfered with by the
British government in the management
of our ships and no restraint OF any
kind has ever been placed upon us. 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.
"During this entire period we have
had American-fag ships in competition
with British ships and British-fag
ships which we own in strong and con-
tinnous competition with the Cunard
and other British companies"
Mr., Franklin emphasized that the
company was an American corporation.
a3is per cent Of its stock being owned
hy American citizens. Only one-half
Of one per cent of the stock is held by
English investors, he said, and sim
liar amount by Canadians.
He asserted that, recognizing the de-
velopment of national aspirations for
an American merchant marine, the
company began negotiations in 1918 TO
dispose of its British-fag ships TO a
British syndicate, but that the sale
was stopped at the request OF Presi-
dent Wilson.
He read three letters from Mr.. Will
son in support of his assertion and also
read excerpts from the congressional
record TO show that Senator Jones was
one Of those who opposed the sale. He
added that the United States govern
ment then bought the ships, but later
withdrew from the transaction,
Continuing. Mr. Franklin reviewed
efforts OF the. company to buy "a for
mer German ships from the United
states for a total of S2s 500. 600. and !
said the company had offered 10 agree l
to keep the ships forever under the !
American flag. This, together with the (
fact that it was prepared to spend
more than the amount bid in recondi- /
tioning the ships, he declared, fHr-
nished conclusive evidence that the I.
rompany's agreement that its British |
ships would not be used to the detri- |
ment Of British trade did not prevent |
the company in any way from expand
ing its business under the American 1
flag.
"We acted without consultation 1
with, or interference frsm the British 1
government in this matter he de- I
,lared.