New-York tribune., 1921-01-28
/. WI. VA. Policy I
1907 American.
Says Franklin
Tells Shipping Board In
quiry ga P. C, of Stock Is
u. s. Owned and All Man
aging Officials Are Citizens
87%o Registry Foreign
Admits British Could Requi-
sition These Ships if the
Country Went to War

WASHINGTON, Jan. 27.-Oficers of
the international Mercantile Marine
Company, headed by P. A. S. Franklin,
president, to-day gave the Shipping
Board, sitting as an investigating
body, their story of their twenty-year
agreement with the British govern
ment, stipulating that they pursue
no policy injurious to 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 Sem
ator Jones, of Washington, before the
National Merchant Marine Association.
President Franklin, occupying the
witness stand for more than three
hours, reviewed the history of his
company and vigorously defended it's
policies, which he characterized as be-
ing 100 per cent American at all
times" He presented list of share
holders to substantiate his statement
that 94 per cent of the company was
owned by Americans in the United
States, and offered other papers to show
the Americanism of his managing Of
ficlals, none of whom, he declared,
was foreigner.
Many Registered Abroad
Questions by the board developed
that 81 per cent of the more than
100000 tons of shipping operated by
the international Mercantile Marine
was registered abroad and was subject
to requisition by those foreign govern
ments in case of war. Attention also
was directed to the clause of the
agreement specifying that a majority
OF the directors Of subsidiary com
ranies in England must be British
subjects.
Statements made on these points by
international Mercantile Marine Off
cials caused Admiral Benson, chairman
OF the board, to say that although
Americans owned the vessels. actual
control rested with the foreign direc-
tors of the company's subsidiary to
the international Mercantile Marine.
Mr.. Franklin declared, however, that
the stock twas locked up in New York,
owned by Americans" and the foreign
control could not affect the operation
of ships by his company.
The next step in the inquiry will be
taken by the board in executive session
after the testimony has been digested
by the commissioners Until 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 statu quo.
Franklin Asks Advice
The board in the meantime will also
consider an invitation extended to-day
by Mr.. Franklin and his legal advisor,
j. Parker Kirin, to tell the Interna-
tionaI Mercantile Marine what it can
do to 'establish the American merchant c
marine in the most desirable and ef.
tective way" Both of the steamship
officials urged the board to cooperate
with their company, and in turn offered
it their services in upbuilding the ship
ping industry in the United States.
Mr.. Franklin described his company
as an "outcast," despite the fact, he
said, that it had attempted to sell it's
British tonnage to get money to buy
american vessels flying the American
flag. and would have done so but for
the Objection of President Wilson to
the sale. He told the board that the
British at first regarded the Interna-
can trust in England and as an invasion
of American tinanciers in British trade.
Tells of Feeling Against United States
The feeling in England was SO
strong he said. that the British gov
+ ernmcnt was compelled to take meas
urcs Of lf-protection." 1t was be-
cause of the anti-American sentiment
/ IN Enc md, Mr.. Kirin said later, that
ments concluded in 1903.
Eevle"ins the operations Of his ves-
sells since tne agreement was made Mr.
Erankiln declared the British had never
invoked any part Of it and experience
mad proved that they would not, unless
another emergency such as the " ord
War should cause them TO reuuisir:on
the ships flying the British nag. lie
said the agreement did not affect the
vessels operated by the lnte emotional
Mercantile Marine under the .Americvn
nag.
tonnage, Mr.. Franklin said, IS per
cent was under the British flag and 2
per cent Belgian These sh ps were
subject, he added, to requisition and
operation in war times by those gov
ernments.
Offers Shareholder Lists
The witness submitted shareholder
lsts which he said showed 94 per cent
If common and preferred stock in
American hands, while foreign no d
ngs were divided less than one-half O.
per cent to England, 5M per cent
% Holland and a small fraction of
| per cent to other European and some
Sputh Am erican nations. There were
5,421 American stockholders out of
5,G05, Mr.. Franklin said.
"Thc British government has no con-