The New York herald., 1921-10-05

policy might injure the White Star Line
Messrs. Griscom and Baker sought an
agreement with the British Government
to protect their investment.
This gave the White Star Line, owned
by the International Mercantile Marine
Company, the benefit Of British mail and
other Government contracts. which are
always Of great value to a steamship
line. It did not apply to the company s
was amended in 1910 and 1919 to meet
changing conditions. though its tenor re-
mained unchanged.
The original agreement was widely
published in 1903 and later and. with
Its amendments, was called to the at
tentfon of the United States Shipping
Board several times between 1918 and
1921. AS result or a speech by Sena-
tor Jones, alleging the agreements were
secret and that they applied to all the
company's ships. the Shipping Board on
March 3, 1921, by formal resolution re-
quested the company, as an American
concern. to amend the agreements so
that they would exclude specifically the
American flag ships of the company.
Therefore a supplementary agreement
70 that effect was executed and submit
ted to the board September 9. 1921. On
its receipt the board ordered the present
hearing to famlliarize its members with
the affairs of the company.
No Interference by British.
During nineteen years of operation
under these agreements" said Mr..
Franklin. I'VE have never been inter
fered with by the British Government
In the management Of our ships. and no
restraint Of any kind ever has been
placed upon US. We have always been
entirely free to act In whatsoever man.
ner we thought best for the ships that
we owned and we have pursued policy
accordingly.
During this entire period we have
had American flag ships In competition
with British ships and British flag ships
which we own In strong and continuous
competition with the Cunard and other
British companies"
Mr.. Franklin pointed out that his
company has added to its American flag
tonnage not less than $4,000 tons In five
years In 1918. recognizing the develop
ment Of national aspirations for an
American merchant marine, the company
negotiated to sell its British flag ships
to British syndicate. The sale was
stopped at the request OF President Will
son. The United States Government next
bought the ships. bu. later withdrew
from the transaction. The compay next
tried again to sell the ships, but its
shareholders voted against the sale.
The correspondence covering these in
cidents was presented by Mr.. Franklin.
including three letters from President
Wilson. and also excerpts from the Cont
gresston0I Record showing that Senators
Jones. Ransdell and Fletcher had spoken
in OnnOcfffOn tO the sale.
Mr.. Franklin then reviewed the efforts
of the company to buy the former Ger
man ships. It's bid of $2S,500.00 for
thirty OF theEl as well as two other bids
for only portions of the ex-German feet.
these bids having been the best received
by the Ship,ung Board. The witness
said his company agreed to keep those
ships forever under the American flag
and. had the bids been accepted. those
ships would now be in operation. he said.
in direct competition with the ships Of
all other nations.
His compa- -.y's bid for those ships Mr..
Franklin declared. together with its will
ingnees to invest in reconditioning them
an additional srm exceeding the amount
Of the bid. was conclusive evidence that
the company s agreements that its Brit
ish ships woUid not be used to the detri-
ment 81 British trade did not prevent
the company IN any way from expanding
it's business under the American flag.
I'm this matter" said Mr.. Franklin,
I'VE acted without consultation with or
interference from the British Govern
ment."
The Shipping Board this afternoon
will make tour of inspection of the
transport Leviathan. the rehabilitation
of which 1t has under consideration.