Evening star., 1921-10-04
Defends BRITISH
.:SH|P AGREEMENT.
~. S. Franklin Denies Pact
Hampered Ships Operated
Under American Flag.
RI the Associated Press.

By the Associated Press.
NEW YORK, October. 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
International Mercantile Marine, told
members of the board at a special
hearing here today.
The hearing was called to obtain
from Mr.. Franklin recital OF detalls
of the British agreement which was
attacked by Senator Jones of WASH
being inimical to the foreign COM
nerce of the United States. Senator
Jones charged it bound the company
.to pursue no policy Injurious to the
interests of the British merchant ma
fine or of British trade.
Originally Drafted In 1SO3.
The agreement. originally drafted in
1908, was sought by the company. MT.
Franklin told the board, to offset ad-
vantages gained by the Cunard line
when the British government began
10 build up that line by loans and IA
xorable mail contracts. following ac-
Suisition Of British tonnage by the
agreement gave the International
Mercantile Marine the benefit of Brit
fsh mail and other valuable contracts.
He denied that 1t had been kept Sc
eTet. as charged by Senator Jones.
Z During nineteen years of operat-
Enued, I'VE have never been inter-
fsred with by the, British govern
Hent in the management of our
Ghips. and na restraint of any kind
have always been entirely free to
$ct in every direction and in what
soever manner we thought best for
the ships that we owned. and we
have pursued a policy accordingly.
Had Ships In Competition.
y During this entire period we have
Had American flag ships in competi-
tion with British ships and British
flag ships which we won in strong
and continuous competition with the
Cunard and other British companies"
Z Mr.. Franklin emphasized that the
company was an American corpora
Aon. 93h per cent of its. stock being
Sne-half of 1 per cent of the stock
y held by English investors, he said,
ahd aSsSiIlilar amount by Canadians.
{ He asserted that. recognizing the
development of national aspirations
fo- an American merchant marine.
the company began negotiations in
4a1S to dispose of its British nag
Ships to a British syndicate. but that
ere sale was stopped at the request
ef-President Wilson.
Reads Letters From Mr. Wilson.
He read three letters from Mr.. Will
son in support of his assertion and
also read excerpts from the Congress
oil RI that Senator
Jones was one of those who opposed
the sale. He added that the United
States government then bought the
ships. but later withdrew from the
transaction.
Continuing. Mr.. Franklin reviewed
efforts of the company to buy thirty
four German ships from the United
States for a total of $2S.5Oo.0OO. and
agree 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
reconditioning the ships. he declared.
furnished conclusive evidence that
the company's agreement that It's
British sfHps would not be used to
the detriment of British trade did not
prevent the company In any way from
expanding ats business under the
I'VE acted without consultation
with:or interference from the British
government in this matter" he de-
clared.
LaakeF Promises Decision.
During the presentation of Mr..
Franklin's statement Chairman Las
ker interrupted him to say that the
Shipping Board proposed to make a
quick decision Regarding the status
of the International Mercantile Ma
rine
I'VE will definitely say" said Mr..
Lasker whether we can deal through
the International Mercantile Marine
to build up the American merchant
marine We will not leave you in
doubt and we will adt expedftiously in
making known our decision"