The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-01-28
FRANKLIN DEFENDS
SHIPPING POLICY
Head OF international Mercantile Ma
rine Tells Of British Agree
nent.

WASHINGTON, Jan. 27.-Ofhcials
of the International Mercantile COM
pany, headed by p. A. S. Franklin,
president today gave the shipping
board sitting as an investigating
BODY, the story Of their 20-year agree
ment with the British government
stipulating that they pursue no pol
icy injurious 10 the interests OF the
British mercantile marine or Of British
trade The agreement was brought
to the notice Of the board last week
through an address by Senator Jones
of Washington before the National
Mercantile Marine association.
President Franklin, occupying the
witness stand for three hours. re-
viewed the history OF his company
and vigorously defended its policies
which ne characterized as being 100
per cent American at all times"
lie presented list OF share holders
TO substantiate his statement that "a
per cent Of the company was owned
by Americans "in the United States"
and offered other papers to show the
"Angericanism" of his managing off,
cials, none of whom. he declared, was
a foreigner.
Questions by the board developed
that 67 per cent of the more than
100000 tons of shipping operated by
the International Mercantile Marine
was registered abroad and was sub
ject 10 requisition by those foreign
governments in case OF war. Atten-
ton was also directed during the
course OF the hearing to the clause of
the agreement specifying that a ma
tority of the directors of the subsd-
larry companies in England must be
British subjects.
Statements made on these points
made by international Mercantile Ma
rine caused Admiral Benson to say
that although Americans owned the
vessels, actual control rested with the
foreign directors OF the company's
subsidiary to the International Mer
camille Marine. Mr.. Franklin declared,
however. that the stock was locked
up In New York, owned by Americans"
and the foreign control could not af-
feet the operation Of the ships by his
company.
The next step in the inquiry into the
matter will be taken by the board in
executive session afte rthe testimony
has been digested by the commission
ers. Ur,til then, board officials said
tonight, the question OF whether the
agreement operates to the detriment
OF American shipping as charged by
Senator Jones, will remain in status
quo.
The board in the meantime also will
consider an Invitation" extended to-
day by Mr.. Franklin and his legal adj
wiser, j. Parker Kirtin, to tell the In
ternational Mercantile Marine what it
can do to establish the American
merchant marine in the most desir
able and effective way Both of the
steamship officials urged the board
to cooperate with their company and,
in ssturn offered II Sheir services in
upbuilding the shipping industry in
the United States.
Mr.. Franklin, In his testimony, de- |
scribed his company as an "outcast"
despite the fact, he said, that it had
tried TO sell It's British tonnage TO get
money TO buy american vessels fly
ing the American flag" and would have
done so only for the objection of Pres
ident Wilson TO the sale. lie told the
board that the British at first regard
ed tho International Mercantile Ma
rine as a american trust in England"
and as an invasion of American fin
anciers in British trade"
The feeling In England was so
strong. he said. that the British gov
eminent was compelled TO take meas
ures of self protection 1t was be-
cause OF the anti-American sentiment
In England. Mr.. Kirlin said later in
the hearings, that the admiralty pro-
posed the agreement concluded in
1903
Reviewing the operations of his YES,
sells since the agreement was made
Ar Franklin declared the british had
never invoked any part of IL and ex-
perlence had proven that they could
not. unless another emergency such
as tho world war could cause 10 requi-
sition the ships flying the British
flag He said tho agreement did not
affect the vessels operated by the In
ternational Mercantile Marine under
the American flag.