New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-05
|. WI. WI. Made
Profit i'm Ten
American Ships
Fra,lklin, on Stand All Day
at Ship Board Inquiry
Here, Insists British Boats
Cost Less TO Operate
Urges Federal Subsidy
Effort to Bring 10 Light Big
Owners Combine Fails;
ExplainsF oreignC Contracts

AT an all-day session of the United
States Shipping Board, held here yes
terday. during the entire time of which
P. A. S. Franklin, president of the In
ternational Mercantile Marine. was
questioned by members of the board
1t developed that ten flag
ships operated by the company since
the close of the war had made money.
These vessels, while operated at a
profit. however, proved to be less adj
vantageous investment to the Interna-
tional Mercantile Marine than ships
operated under the British flag for
reasons Of heavier cost of operation.
For this same reason, Mr.. Franklin
maintained, general building up of
the American merchant marine de-
mands government subsidy for Amer
lcan ship owners equal to the differen-
tial between the cost of operating
American and British vessels.
Hearing Asked by |. Nj. M.
Yesterdays hearing, according to Ell
mer Schlcsinger, general counsel for
the Shipping Board, was held at the
initiative of the International Mercan-
tile Marine in order to clear confusing
questions arising from the mixed own
ership and registry OF the company S
holdings.
Chairman Lasker. who presided, said
the object of the inquiry was to deter
mine whether the work of the Ship
ping Board in developing the American
merchant marine could best be done
by working through such a company as
the International Mercantile Marine
with its preponderance of British ton
mage, or through a purely American
company. The trend of questioning
indicated that the real object was to
determlnc whether the International
Hlercantile Marine should receive anv
tavors from the board
In resume submitted bv Mr.. Frank
I'm 1t was shown that 93 q per cent of
the stock of the company is owned by
Americans and only one-half of per
cent by English persons. The sum
mary reviews the history Of the com
pany's attempts to build up an Ameri-
can mercantile marine and points out
mat for nearly half-century prior to
the war the company operated the only
ilnes lying the American flag in the
North Atlantic passenger trade.
Lack of encoura cement from Con-
gress or the American people led the
hackers of these lines to acquire for
o'gn tonnage the statement says.
British Contract Explained
The statement also deals with the
contract made by the company with the
British Board of Trade, which com
prised the principal point of question
ing IN the inquiry.
Following the purchase of British
tonnage by the International Mercan-
tile Marine Company the British gov
ernment began to build Up the Cunard
Line by loans and favorable mail con-
tracts, it is stated. This led the com
pany to seek an agreement with the
Brltlsh government, whereby the White
Star Line gained the benefit Of British
mail and other government contracts.
IN 1919 an agreement was solicited
ana effected with the British govern
meh' whereby the company's British
llnes were put in exactly the same posi-
ton under the new laws of that coun-
try as they would have been if owned
by British subjects. The object of this
agreement. 1t is pointed out, was to
protect this shipping from potential
conlscatlon under new laws. which left
the company as American citizens
holding British property, in position
where, if the British government
wished to, it could seize the proDertv
ana declare it forfeited.
1919 Agreement Amended
IN l921, as result of a resolution
passed by the Shipping Board, the 1919
agreement was amended so as to clear
ly and specifically exclude therefrom
American-fag steamers operated bv tho
company.
During the period of the agreements
with the British government we have
mad American ships in competition with
Brush ships, and Rritish-nag ships
which we own in strong and continuous
competition with the Cunard and other
British companios,' Mr. Franklin said.
In 1918, recognizing the DEVELOPMENT
OF national aspirations<for an American
merchant marine, tho International
Mercantile Marine Company negotiated
to sell its British flag ships to British
syndicate, but the sale was stopped at
the request of President Wilson, it was
brought OUT by Mr.. Franklin. The
United States Government then offered
to buy the ships. but later withdrew
from the transaction.
The witness was closely questioned
by every member of the board regard
ing affiliations in British shipping cir
cles in an apparent effort to bring to
light shipping combine, but these cf
forts were futile.
An effort was made by Senator
Chamberlain, Of Oregon, to show that
contracts existed between the Interna-
tional Mercantile Marine Company or
its lines and American railroads where
by American business would De turned
over for carriage in British bottoms.
Several such agreements cited were de-
clared by Mr.. Franklin to have been
made prior to the purchase Of these
lines by the International Mercantile
Marine Company, and to never have
been in force under the operation OF