In 1902 the late great John Pierpont Morgan formed a shipping combine which was to make the U. S. flag supreme on the seven seas. It was one of his several great mistakes. At first he contemplated joining all foreign lines into one. great service. Although he failed to do this, he purchased the famed British White Star Line for his new International Mercantile Marine Co. In Britain, public opinion flared up against this attempt to wrest away supremacy of the seas. But big shippingmen took the deal calmly. "The vendors," wrote a London authority, "made an exceptionally good bargain, which it is probable the purchasers will soon find out."
True to this prediction. I. M. M. eventually, in 1926, was glad to sell the White Star Line back to British interests, represented by the then potent Royal Mail combination. Thereby I. M. M. lost all its biggest ships—Majestic, Olympic, Homeric—and retained only its minor units such as Atlantic Transport. But the same year that this great tonnage passed from U. S. control, another development was taking place in U.S. shipping.
In 1920 Kermit Roosevelt had formed the Roosevelt Lines to operate a service to India for the U. S. Shipping Board. Jute was its principal baggage. In 1926 he took into the company two widely-known young shippingmen: John M. Franklin whose father, Philip Albright Small Franklin, heads I. M. M., and Basil Harris. He promised vigorous expansion of the U. S.-owned Roosevelt Lines. Last year this expansion became marked. Shippingman Roosevelt was able to announce that William Vincent Astor had acquired a substantial interest in the company, that an affiliate, Baltimore Mail Steamship Co.. was being formed to operate a Hamburg-Baltimore service (TIME, July 21). And a month later it was rumored that Roosevelt Lines was entering wider seas by purchasing control of I. M. M. (TIME, Aug. 11).
Only last week did this deal receive its official confirmation. Kermit Roosevelt, John M. Franklin and Basil Harris became vice presidents of I. M. M., while all three and lanky, yacht-fond Vincent Astor were made directors, marking the passing of control to the Roosevelt interests. Still president of I. M. M. is Philip Albright Small Franklin, probably pleased to have his company controlled by his son and friends.
To Roosevelt Lines' fleet of 18 Government-owned motorships operating to Australia, India, the Philippines and the Far East, the deal adds I. M. M.'s consolidated fleet of 46 steamers. At present I. M. M. is the U. S. agent of its once greatest unit, White Star. While it no longer owns the White Star's big three, it still has many an interesting ship. Of these, especially famed are: 1) Pennsylvania, California, and Virginia, turbo-electrics operated by Panama Pacific Line, the largest U. S.-built ships of their type; 2) Minnetonka and Minnewaska of Atlantic Transport Lines; 3) Belgenland, largest in the Red Star Service. Another important I. M. M. unit is the Frederick Leyland Line, sailing between European, Central and North American and West Indies ports. Although no plans have been announced, shippingmen expect Roosevelt Lines to place more ships under the U. S. flag.