The Washington herald., 1921-01-21
Board Will Probe Agree
ment Between American
Company and British.
BENSON ORDERS
PROMPT INQUIRY
Sen. Jones Throws Bomb
shell Into Ship Conven-
ton by frey Speech.

BTlllSn GllOIlo " utSllO1 tue
American merchant marine, as
charged by Senator JOes, of Wash
ington, will be thoroughly investi-
gated by the Shipping Board. The
probe will include all agreements
American shipping Companies have
with foreign companies or govern
ments.
This announcement was made
last night by Admiral Benson,
chairman of the board, after Sena-
tor Jones had declared the Interna-
tional Mercantile Marine. an Ameri-
can corporation, had agreed with
the British admiralty to pursue mo
policy injurious TO the interests of
the British mercantile marine or Of
British trade" The International
Mercantile Marine now is operating
a fleet of 40 vessels leased from the
Shipping Board. Consideration of
the pact may lead to Withdrawing
the fleet allocated to the firm, al
though Benson would not discuss
thatsphase last night.
Senator Jones. who is chairman
of the Senate Committee on Com
merCe and author of the Jones ship
ping act. made his sensational dis
closures in a speech yesterday be-
fore the convention of the National
Merchant Marine Association.
senator Cites Instance.
In further support of his charges
in the alleged British campaign
against American shipping. Senator
Jones declared an agent in New
York City, who. he said, was a
former employe OF the International
Mercantile Marine, had opposed the
establishment of an American ship
ping line between Newark, N j.,
and England.
"On being pressed for his reasons"
Senator Jones said, "he stated that
the establishment of such a line
would injure the business OF Brit
ish lines sailing out of New York"
Under the terms of the agreement
between the International Mercan-
tile Marine and the British admiral
ty, which was made in 1908 and has
two more years to run. he said. the
lord high chancellor of Great Brit
ain is to act as arbiter in any dis
pute between the American company
and the British admiralty.
Agreement Was secret.
Admiral Benson said he had been
in utter ignorance of the existence
of such an astounding agreement
until it was called to his attention
a few days ago. He will lay it be-
fore the board Immediately, he add
ed, and will press for whatever ac-
tiOn is deemed necessary. The ad
miral will demand that a copy of
the document be supplied to the
board
Prominent American commercial
and shipping interests were named
by Senator Jones as whiting or un-
whiting agents of the British ship
ping plot These included, he de-
clared, the United States Chamber
OF Commerce, the Chamber of Com
merce of the State of New York. an
agent of the Shipping Board in New
York, international bankers and the
heads of great railroads and ship
ping companies.
Jones further added, The ques-
ton that naturally arises in the
popular mind is where do British
shipping interests center in the
United States?'
"The answer is that they center
almost entirely in the port of New
York, where their large terminal
are located and from
which ports most of their tonnage
on this side of the Atlantic sails.
Claims Export Monopoly.
Af
through the port of New York spells |
greater profit for British ship own
Prs. 1t follows then that the British |
shipping men are in accord with the |
Eastern trunk line railway officials |
who seek to cancel the present |
of export freight rates
from Central Freight Association !
territory to gulf and Atlantic ports"
The proof of such accord" could |
be found, Senator Jones declared, |
when the New York State Chamber |
Of Commerce appointed a special |
to confer with the Trunk |
Lines Association last April to lay |
plans for a fight to eliminate the |
existing equalization of export |
freight rates, and appointed as |
chairman of the committee Deios |
w. IOOht, an AlHti lCdn ulTSCIOr OF /
the British Cunard line.
Philip A. S. Franklin, a vice
president of this Chamber of Com |
nerce, is the president of the In |
Mercantile Marine Com
oany, the same American company |
which entered into the agreement |
already referred to by which it
agreed to pursue no policy inju-
-ious to British trade
Immediately on the conclusion of
senator Jones speech, President
Franklin, of the International Mer-
camille Marine Company, secured /,
he floor and declared with heat
hat there was nothing ''insidious
Tor harmful in the agreement :
which his company had entered irt,. |
"It is manifestly unfair and un-
ust." Mr.. Franklin asserted, for a /
member of the Senate of the United
states to make such charges against
he International Mercantile Ma /
'ine.
THE company is American. None
,ut Americans are on the board of
directors and 80 per cent of its
Itock is held by Americans. 1t has
invested in American shipping"
The convention which has at
racted shipbuilders, shipping men
md exporters from every part of
he country. was also addressed byl
Benson. He declared that
serious situation now confronts