The Birmingham age-herald., 1921-01-28
f RANKIN GIVES STORY 0F 2O-YEAR
 BRITISH AGREEMENT.
Reviews History of Interna- tionaI Mercantile Marine and Vigorously Defends the
 Company,,s Policies
By Associated Press

Washington, January H.-Officials oA the International Mercantile Marine com pany, headed by P. A. S. Franklin. presi
 dent, today gave the shipping board, sitting as an Investigating body, their story of the 20-year agreement with tie
 British stipulating that they pursue ID
 policy injurious to the interests of ths
 British mercantile marine or of Britisl trade" The agreement was brought to the notice of the board last week through an address by Senator Jones of Wagn- ington before the National Merchant Ma rine association.
 President Franklin. occupying the wit ness stand for more than three hours, re- viewed the history of the company aAi vigorously defended it's policies. wnlssl he characterized as being lVV per ceAs
 American at all times. de presenteu # list of shareholders to suDstantiale j..s statement that 9l per cenl oI the cu,i- pany was owned. by Americans fln .ne United States, and ottereu other la- pers to show the ,'AmericanisAi of n4s managing officials, none ot whom, ns ciecareu, was foreigner.
 MAJORITY REGISTERED ABROAD questions by the board ueseiopeu 1nae S per cent of the more than l,oJg.oyo
 tons Of shipping operated by tue lnscf- national Mercantile Marine was res. .s- tered abroad and was subject to rc4u-- sltion by those foreign gos ernlnents Il case of war. Attention also was direclel during the course of the nearing to tne clause of the agreement speciIying that a majority of the directors of sub sidiary companies in England must bs British subjects
 Statements made on these points by ln- ternationai Mercantile Marine ofticsd'a caused Admiral Benson, chairman ofSsns board, to say that, although Ainerr'anS owned the vessels, actual control rested with the foreign directors ot the com panies subsidiary to the international Mercantile Marine. MT. trankln, d~- clared, however, that the stock was 1 locked up in New York, owned DN Americans, and the foreign control could not affect the operation of tns ships by his company.
 l The next step III inc inquiry into the matter will be taken by the board in ex- iecutiye session after the testimony has 1 been dlgested by the commissioners. Ch- 1 til then board officials said tonight inc l question of whether the agreement oper- ates to the detriment Of American snip- ping as charged by Senator Jones' VIII l remain in status quo.
 l The board in the meantime also VIII consider an "invitation' extendeu touaJ ! by Mir Franklin and his legal advisor, lJ. Parker kirlin. to tell the lnterratioilat | Mercantile Marine what it can do to "es- ltahlisht the American Merchant Marine l in the most dAsirable and effective wey. I Beth of the steamship officials ursed the 1 board to cooperate with their company, land in turn offered it their services III lupbuilding the shipping industry in the United States.
 SAYS COMPANY "OUTCAST" ] MT. Franklin in his testimony deserlpea This company as an 'oztcaA" despite I the fact, he said. that it had attempted | u sell it's British tonnage to get money 1 to buy American vessels flying the l American flag" and would have done so but for the objection of President Wii- son to the sale. He told the board that ! the British at first regarded the Inter- national Mercantile Marine as "an Amer l ican trust in England and as an m-
 yasion of American financiers in British trade"
 1 The feeling in England was so strong.
 he said that the British government was
 compelled Ito take measures or selis Iprotection.'' It was because of the anti- l American sentiment in England. Mir. i Kirlin said later in the hearings, that tno admiralty proposed the agreement com cluded in 1905.
 1 Reviewing the operations of his vessels since the agreement was made, Mrl l ErankIin dezs.ared the British had never l invoked any part of t' and experieacs , had proved that they could not. unless l another emergency such as sae Worid war could cause them to requistion the ships flying .fs 'tts'i fs; 'f1 fit the agreement did not affect the vessels ope rated by the international Mercantllo Marine under the American flag.