The New York herald., 1921-01-24
FRANKLIN ANSWERS
ATTACK ON HIS LINE
Offers Documentary Evidence
That Mercantile Marine Is
100 p. C. American.
AT ISSUE WITH PAYNE
He Asserts Shipping Board Got
Copies of Agreements
That Are Assailed.
AT ISSUE WITH PAYNE

In view of special hearing which
the Shipping Board is TO hold Thursday
inquiring into agreements between the
International Mercantile Marine Com
pany and the British Government. r. A.
S. Franklin. president Of the l. NJ NJ
issued statement yesterday reiterating
the 100 per cent. Americanism of the
company He quoted documentary evil
dence as proof and also declared that
American flag ships are not subject 10
the agreements.
"I am very much surprised AT the
contents of the letter from Secretary
John Barton Payne to Senator Jones' as
published in the press. conveying the
impression that he had not seen the
agreements that were referred to In an
attack of Senator Jones at the meeting
of the National Mercantile Marine Asso-
ciation on January 22," Mr.. Franklin
said. 1.-The substance of these agree
ments was discussed by me with MEM
bers of the Shipping Board at a meet
ing on November 13, 1919. and at the
request OF Judge Payne, then chairman
of the board, 1 submitted copies OF them
to him"
The letter submitting these copies
stated they were of agreements made in
August /. 1903; October 1. 1910, and
September 2, 1919, and continued:
1.-THE last agreement was entered into
for the purpose OF bringing the subsidi-
airy British companies into line with GER
tain recent British regulations, which
require that the management and con-
troll of the operations Of foreign con-
trolled British company (that Is, com
~ ss. ~ In
British subjects) shall be (except as
regards the disposal of the profits of
the company In the hands of British
directors, and with the further object
Of securing treatment for them on a
footing of equality with British steam
ship companies which are free from for
eign control This agreement. we con-
sider is very much to the company's ad-
vantage.
THE International Mercantile Marine
Company, so far as It's British interests
are copcerned. is simply holder or
stocks In the British companies.
Neither the British Government nor
any other interest in England has any
control over the International Mercantile
Marine Company. The company Is
owned by American stockholders and
managed and controlled by directors Sc
lected by them. Our most recent stock
list, made up within the last six months,
shows more than 80 per cent. of the
stock standing in the names OF Ameri-
can stockholders. The company is.
therefore, in the strictest sense an Amer
lean company and anybody who may
state anything to the contrary must
be misinformed as to the facts
Mr. Franklin quoted Mr.. Payne's
acknowledgment OF receipt OF the agree
ments, and how, three months later, he
/ 70 tH,1att ttaa a
| the Shipping Board had investigated
and decided that the /. NJ. NJ. was "a
| 100 per cent. American company and en-
titled to be regarded by the Shipping
Board as such" Mr.. Franklin's state
ment continued:
THE unfalrness of the accusations
against the company lies in the ass-r-
tion that the company was under undis-
closed agreements to operate It's tonnage
in the interest of British trade, and at
the same time sought and accepted the
ALLEGATION of American flag ships be-
longing to the Shipping Board, whose
operations were subject TO the terms OF
the agreement; while the real truth OF
the matter is that the agreements were
not undisclosed-they had been laid be-
| fore the authorities and published by
the Department Of Commerce and Labor
In July, 1903--had been fully disclosed
and copies Of them filed with the Ship
! ping Board on two occasions in 1919.
and the Shipping Board tonnage which
has been allocated to us for manage
ment and operation from time to time
is not subject TO these agreements nor
affected by them in any particular.
THE company has not at any time
been under any obligation 70 operate
American flag ships otherwise than In
/ the best interests OF the ships themselves
| and it never has operated Shipping Board
/ ships allocated to II except for the ben
| eft OF the American Government in
trades designated and approved by the
| hoard"