The New York herald., 1921-10-05
PROFIT IN US. Ships,
SAYSP.A.S.FRANKLIN
Head of International Ma
rine Testifies Before
Shipping Board.
MONEY IN PASSENGERS
Dolc lcIsIskok: c
MONEY IN PASSENGERS
Rehabilitation of Transat-
lantic Traffic a Substan-
tial Aid to Company.
DENIES BRITISH CONTROL
Chairman Lasker Seeks InfOr-
nation for Nucleus of a Real
American Fleet.

p A. S. Franklin, president of the
International Mercantile Marine Com
pany. was an all day witness yester-
day in a special hearing given by the
United States Shipping Board at 45
Broadway. Mr.. Franklin made the as
sertion, despite the greater cost of
operating steamships under American
registry than under the British flag.
that of the ten vessels which his COM
pany is now operating under the
American flag all at the present mo-
ment are running at profit with the
exception Of two, which are exclusively
freight carriers.
This fact he explained as being due
to the recent rehabilitation Of the
transatlantic passenger carrying trade.
The fleet Of the International Mer-
ninety-two British ships and two Of
Belgian registry, exclusive of tonnage
under construction. Eighty-six per
cent. of the company's tonnage is un-
der the British flag.
Chairman Albert D. Lasker, before
the hearing began, explained that 1t
was expected to enlighten the board
to some extent upon the question
whether or not the International Mer-
camille Marine Company, with It's pre-
ponderance of British tonnage and its
contracts with the British Govern
ment, is the kind Of a nucleus which
the Shipping Board can use to the best
advantage in the upbuilding OF an
American merchant marine.
No Large Foreign Holding.
There were assembled to listen to the
president of the T. NJ. M. the entire MEM
bership Of the Shipping Board. including
Senator George Chamberlain freoerick
THOMPSON, Rear Admiral w. S. Benson,
u. S. N (retired); Meyer Lissner, T. v.
O'Connor and Edward c. Plummer. and
also Elmer Schlesinger. general counsel
to the board.
Mr.. Franklin was supported by ]. III.
Thomas, vice-president Of his company
@. F. Ravenel assistant to the president {;
]. Parker Kirlin. admiralty lawyer. as
counsel, and Cletus Heating. as assistant
counsel.
The board members. were much inter-
ested In a chart submitted by Mr.. Frank
lin showing that the International Mer-
camille Marine owns outright all the
stock of each of it's more important sub
sidiary companies and that none OF such
subsidiaries owns any OF the stock or
the I. NJ NJ. He contended 1t Is mani
fest, therefore. that none OF those subsid-
iaries. whether British or otherwise,
T.~A- Sl<wx x~l
Mercantile Marine.
When his company acquired the White
Star Line. the Leyland Line and the Do
minion Line he said, the English owners
Of these valuable properties sold their
holdings outright. $50 far as I know"
said Mr. Franklin. "there has never been
a substantial foreign holding in the COM
pany at any period In It's history"
After the witness had completed read
Ing a prepared statement he was cate
chised at great length by Mr.. Schlesfnger
and by members of the board. Senator
Chamberlain sought to show that, by
intcrlocking directorates OF companies
with which the I. M. M. is associated.
British influences and British personnel,
such as Lord Pirrie. might exercise
dominating influence. This Mr.. Franklin
denied. He agreed to furnish to the
board all the companys records without
exception.
It was developed that the American
International Corporation is the largest
individual holder Of shares in the Inter-
national Mercantile Marine and that the
latter has a large interest In the New
York Shipbuilding Company.
The problem of building up the Ameri-
can merchant marine, Mr.. Franklin said,
In competition with the fleets Of the
world Is one of hard headed business
and not a matter OF waving the flag.
THE only feasible solution, he said, is
through some kind of subsidy equaiIzing
the differental In the cost Of operating
American over foreign ships.
History of the Company.
Mr.. Franklin had prepared q state
ment asserting the American character
Of the company, and tracing its history.
This he read into the record. Summar-
ized. the statement brought out the fol-
lowing points:
The company Is an American corpora
tion. organized under the laws OF New
Jersey in 1902. 1t has outstanding $751;
: 600. 900 of s per cent. preferred stock
$50.000,000 common stock. and $3S. .000.-
900 first mortgage bonds. Since 1913 Il
! has distributed $1,000. 900 In dividends
and paid off s31.000,000 Of Its bonds.
The company's stock books az Of August
/ i, 1921. show 92M per cent OF its stock
In owned by American citizens, sM per
cent by Dutch, n Of I per cent. by
English. II OF per cent. by Canadians.
with fractional holdings I'm Cuba. Dem
mark France. ireland and Norway.
The company was founded by Clement
A. Griscom of Philadelphia and Ber-
nard A. Baker OF Baltimore. the only
Americans who prior to the world war
were engaged for many years IN trans
atlantic passenger trade under the
American flag. The American Line, the
Red Star Line ana the Atlantic Trans
port Line formed the foundation Of the
company. For nearly half century be-
fore the world war these lines were the
only representatives of the American
flag In the North Atlantic passenger
trade.
Lack OF encouragement from Congress
or the American people led the hackers
OF these lines to acquire foreign flag
tonnage. The International Mercantile
Marine Company In 1902 bought the
fleet Of the White Star Lire. the finest
fleet then plying in the Atlantic. and of
other British lines.
The company now owns, exclusive Of
ships under construction, los vessels OF
1.026.21e tons. It has large and power
ful organization for booking passengers
and freight.
Following the purchase of British ton
rage by the international Mercantile