New-York tribune., 1921-01-24
Denies Secret
[. M. vi. Pact
With British
Franklin Declares Senator
Jones, Admiral Benson
and Payne Knew Details of
English Marine Contracts
Cites Old Correspondence
Says Former Ship Board
Chairman Testified i'm Sen.
ate Hearing ON Agreement

Charges that the International Mer-
camille. Marine Company had entered
into secret agreements with the Brit
lsh government which were inimical to
American shipping were denied yester-
day by F. A. S. Franklin, president Of
the company. The charges were brought
before the United States Shipping
Board at Washington on Saturday by
Frederick |. Thompson, vice chairman n
OF the board, and Senator Jones, of
washington, chairman ofs the Senate
Commerce Committee. The board set
next Thursday for a hearing on the
subject.
From his office, at 9 Broadway. Mr..
Franklin yesterday issued a statement
declaring that Senator Jones, Admiral
Benson chairman of the board, and
Judge John Barton Payne, formerly
chairman, were fully acquainted with
the company's agreements. Mr.. Frank
lin said he was Every much surprised"
at the impression conveyed to the pub
Tic that the agreements had been un-
disclosed
He declared that the substance of the
agreements were discussed by him with
sne members of the Shipping Board on
November 13. 1919, and few days
later, at the request Of Judge Payne, he
wrote letter concerning the agree
ments, which were dated August /,
1908; October /, 1910, and September
z, 1919, in which he said, in part:
Neither the British government nor
any other interest in England has any
control over the international Mercan-
tile Marine Company. The company is
owned by American stockholders and
managed and controlled by directors
selected 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
American stockholders. The company
Is, therefore, in the strictest sense, an
American company, and anybody who
may state anything to the contrary
must be misinformed as to the facts"
Payne Testified Concerning Pact
Mr. Franklin asserts that last Feb
ruary Judge Payne testified before the
Senate Commerce Committee that the
international had disclosed its agree
ments which showed it to be thorough
ly American.
II was surprised when Admiral Ben
son said he had not heard of these doc
uments," said Mr.. Franklin. He said
he had written the Admiral on March
%. 1920, about them. In this letter,
Mr.. Franklin declared, he wrote:
"Anybody who says that we are Brit
ish controlled is making an absolutely
doubt about the Americanism of our
company we respectfully request you
to look over documents which we filed
with the Shipping Board in November,
1919, and If you wish any further ex-
planation or information we will be
glad to furnish same. Your prcdeces-
sor after perusal of these documents
stated officially and publicly that the
international Mercantile Marine Com
pany is 100 per cent American"
"The unfairness of the accusations
lin in his statement, "lies in the asser-
tion that the company was under un-
disclosed agreements to operate its
tonnage in the interest of British
trade, and at the same time sought
and accepted the ALLEGATION of Ameri-
can flag ships belonging to the Ship
ping Board, whose operations were sub
ject to the terms of the agreement,
while the real truth of the matter is
that the agreements were not undis-
closed. They had been laid before
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 10
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.
American Ships Unaffected
"The company has not at any time
been under any obligation to operate
American flag ships otherwise than in
the best interests of the ships them
selves, and it never has operated Ship
ping Board ships allocated to it ex-
cept for the benefit of the American
government in trades designated and
approved by the board"
The Blue Star Navigation COMPANY.
of Philadelphia, yesterday denied tes-
timony given before the House Com
mttee which is investigating the Ship
ping Board that it made huge profits
out of the sale of fuel oil. Referring
to an assertion by Myron c. Baker
comptroller of the Boston district for
the Shipping Board, that the company
made profit of $4,000 on furnishing
the steamer Lake Glendale with oil
B. M. Ainesworth, vice-president of
the company, said: "If the verify of all
cases is in accordance with the truth
surrounding this transaction, we are
Of the opinion that the entire investi-
cation is nothing more nor less than
a huge farce"