The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-07-25
COCKTAILS AND
DENMAN BOTH
LOSE SHIP JOBS
Rear Admiral Capps' Will
Direct Construction of
Merchant Fleet.
E.N.HURLEY HEADS BOARD
Presidents Action Ends Row
Which Has Held Up Build
ing Programme.
E.N.HURLEY HEADS BOARD

al abrupt termination to-day by ellmi
mating the two principals-williann Den
man, chairman of the board, and Major
Gen. George W. Goethals, manager o.
the boards Emergency Fleet Corpora
ton in charge Of construction.
The resignation Of Gen. Goethals
rendered several days ago, was acce pied
and Mr.. Denman was asked by the
PRESIDENT to follow suit. that the Gov.
ernments building programme might &C
forward without embarrassment
Edward NJ Hurley of Chicago, former
chairman OF the Federal Trade Com.
mission. was named by the President tc
succeed Mr. Denman as chairman OF the
board and Bainbridge Colby of New
York was appointed successor to Capt
John b. White OF Kansas City, another
board member whose resignation. offered
10 the President month ago, also was
accepted. Rear Admiral Washington L.
Capps. chief constructor OF the navy, will
succeed Gen. Goethals as manager OF
the fleet corporation, taking Immediate
charge of the building programme
The nominations Of Mr.. Hurley and
Mr. Colby went to the Senate this after
noon and were referred to the Commerce
Committee. Their prompt confirmation
was predicted by both Democratic and
Republican leaders
Denman Surprised.
Mr. Denman sent his resignation to
the White House Immediately after re-
ceipt Of the Presidents letter requesting
1t. The Presidents action manifestly
took him by surprise, but his only COM
ment was this:
1T was the best way TO settle the
whole thing. I want to help the Presi-
dent In every way possible. and never
nave questioned the wisdom OF his deci-
sions."
1t was reported tonight that Theodore
Brent. vice-chairman Of the board, who
has been a strong supporter of Mr. Dem
mans position. had offered TO quit the
board II the President thought IL best.
but at the White House 1t was said no
communication had been received from
him. John A. Donald and r. B. Stevens,
the other board members who have lined
up with Gen. Goethals, said they had no
intention of resigning.
The Presidents methods OF ending the
controversy cLme as a great surprise TO
most officials here, who had believed he
would make a final effort to compose
the situation by dividing definitely be-
tween the Shipping Board and the man.
ager OF its corporation the powers con-
ferred on the Executive by Congress Mr..
Wilson apparently became convinced,
however. that Denman and GoethaIs
never could work In harmony and that
both were in measure to be blamed
for the delay to the shipbuilding pro-
gramme.
Virtually from the start OF the trouble,
1t became known tonight. Mr.. Denman
did not have the full support OF the
board for his wooden ship programme
Mr. Donald and Mr.. Stevens consistently
supported the General. but Mr. Brent
and Capt, White stood with the chair
man. After he had offered his resigna-
tion a month ago on account of i'll health
Capt White returned to Washington In
time to cast the deciding vote against
the Goethals building programme.
Cause of Split.
Gen. Goethals's announcement Of this
furnished the cause for a
definite split between him and Mr.. Dem
man. Much Of the Goethals plan was
the original programme proposed by the
Board, but Mr.. Denman is
said to have resented the fact that the
General in making 1t public declared he
would proceed without consulting the
board
The Presidents order comforting the
powers given by Congress authorized the
board to operate ships and the corpora
ton to build them. Gen. Goethals, re-
by letter from President Will
son. which declared he would not be
took the order 10 mean he
would have a free hand, Mr.. Denman.
with letter from the President which
he thought charged the Shipping Board
with responsibility for the expenditure
Of the funds supplied by Congress,
blocked the Generals plans.
Difficulties then developed thick and
fast and another letter went from the
White House to Gen. Goethals II
called the General to account for nn-
his programme without first
consulting the board and made II clear
that he was not in supreme charge OF
the building programme and must not
proceed without the approval OF the
Shipping Board.
In reply the General wrote a letter,
made public to-day. offering to resign
and declaring he had been given to un-
previously by the President.
the Shipping Board and all others con-
cerned. that he was 10 have absolute
Goethals's Plan TO stand.
The Goethals programme. which in
cludes communicating all private ship
ping under construction and the build
ing OF two Government owned shipyards
for putting together fabricated steel
ships, undoubtedly will be adopted al
most as II stands. Chairman Denman
already has forced changes which will
reduce the cost OF chips to be fabricated
and the state Department is behind him
in his position that the United States
should reauisitIon British ships building
In American yards.
Mr.. Denman's resignation leaves Vice
cha irrnan Brent as temporary chairman.
and there will he no interrupt ion TO the
boards work Until their nomina ations
have been confirmed Mr.. Hurley ana Mr..
Colby will sit with the board as members
without the power TO vote. Meantime
Rear Admiral Capps will take Immediate
charge OF building. He 10 a naval CON-
structor of wide experience. and at pres.
ent is head OF the Naval Compensation
Board, which passes on the cost OF war
ships built by contractors on the cost
plus percentage basis.
Mr.. Hurley is a manufacturer Of pneu-
matte machinery. and as chairman Of
the trade commission gave most OF his
Conffnued on THIRD paoa