The Birmingham age-herald., 1921-10-05
BUY BRITISH SHIPS
 ID SAVE AMERICA
Stockholders Here Helped by English Ship Purchase to
 Aid Their Marine
Ky Assnciated press

New York, October f--rhe Inter- national Mercantile Marine company asked for and obtained srom the Brit ish government in 1903 an agreement for the operation of It's ships, as a protection for American shareholders of an American corporation, P s. A. Franklin, president of the corpora tion, today told the United States shipping board.
 This agreement, called to the at tention of the, board last March, was declared by the board to be "inimi- cal to the upbuilding of the Amer ican merchant marine, in that 1t ap- peared to provide that the corpora ton should not pursue a policy inju- rious to the British merchant marine CT British trade. The shipping board, it was announced by Chairman Las ker, Is seeking means to re-estab- 1 fish, through existing American com
 panics, q merchant marine in ~this country, and MT. Franklin was ques- toned as to the full meeting of the 1 British agreement.
 1 The International Merchant Marine | company, when iti was organized, Mir. l Franklin said, absorbed several lead l ing British flag lines. including the 1 White Star line, with its great ocean l liners. It's stock. he added, is held almost entirely by American citizens. The British government MT. | Franklin asserted, was deeply con cerned" when the International Mer- cantile Marine company acquired l these British companies. We were l faced with a possibility of that gov
 ernment giving valuable preferential
 concessions to rival British lines,
 he said.
 Asked for Equal FavOrs
 "We went to them," he added, and
 asked for equal favcrs, and we made
 the agreement in question with the understanding that at all times our
 American flag companies should De exempt from any control the British government might assume over our ! policies or our business. | This provision was specifically
 made in a supplemental agreement,
 which was asked for by the shipping
 board last March, and which. he said. i was filed with the board on Sep | tember g, last.
 Had the agreement with Great Britain not been made, he added the
 British flag ships-valuable assets l of his corporation--would have been
 subject to confiscation by the Brit | ish crown.
 l In all the years it has been in ef-
 feet, he said, nothing has ever been
 done that was detrimental to Amer ! ican flag subsidiaries.
 In addition to asking about the l British contract MT. Franklin was i questioned by members of the board
 as to interlocking directorates of his { corporation with those of the Amer l ican international corporation, the 1 Pacific Mail and other steamship 1 companies. He said directors of his l corporation occupied similar posi- l tions with other organizations, but ] he did not believe they were an in- I fluence in securing for his organiza- l ton business favors especially for ] the British flag lines.
 Have British Ships ! Questions asked by Commissioner l Chamberlin brought out the informa- 1 ton that the l. M. M. had 9s British
 ships in operation in January of this l year and now has 120. During the 1 same period the number of American l ships has been reduced from II to { 10, The l. NJ. NJ. operated 27 ship 1 ping board ships in January last, but l has only one now and expects to get l rid of that one as soon as convenient | This he said, is because his company l hhs not been able to get the ship 1 Ding board ships in sufficient mum
 bers to build up the trade routes they 1, wanted to-
 He said British flag ships were | more profitable than American, but that the corporation persisted in run | ming and maintaining its American n flag lines-to build up an American merchant marine--and in the belief that 1t would yet work out right. -N "You can't build up an American merchant marine by waving tho 1 flag" MT. Franklin asserted. The !, only way is to show capital 1t Is a i good investment. Capital is working l for but one thing, and that Is cap 1 ital.
 "You cannot run American ships as l economically as you can British
 ships: therefore. you should give a subsidy.