The sun., 1917-06-19
President Will Decide This
Week Between Chair
man and GOethals.
STEEL PRICE MADE $50,
Contracts Are Let for Ten
Ships With This as Tenta-
tive Quotation.

Board and Major-Gen. George w.
Goethals over the question of authority
In the Administrations shipbuilding
programme reached such an acute stage
to-day that official Washington freely
predicted that one or the other Of them
would resign within few days.
The probability OF this was empha-
sized and the breach between them fur
ther evidenced by the action OF Mr.. Dem
man to-day in signing the contracts for
ten steel vessels after he had obtained a
tentative price OF $5S ton for steel
plates. He previously had refused to
sign these contracts. sent to him by Gen.
Goethals as head OF the Emergency
Fleet Corporation. because Gen. Goethals
had fixed s95 ton as the price Of steel.
The slight likelihood Of the quarrel
being settled was indicated to-day by
the fact that both Mr. Denman and Gen.
Goethals, abandoning all attempts TO get
together and adjust their differences,
brought the affair officially to the atten-
| ton Of President Wilson. Both OF them
sought appointments with the President
to discuss the shipping situation, Mr..
Denman succeeding. while Gen. Goethals
was told that the Presidents calendar
was filled for the rest of the day. 1t 10
understood that Gen. Goethals will place
his side of the quarrel before the Presi-
dent later in the week.
Dispute Over Powers.
1t is Understood that Mr.. Denman and
the President touched upon the various
differences between Mr.. Denman and
Gen. Goethals. but the principal point of
concern to the chairman OF the board
was as to whom Is to be delegated the
sweeping powers granted in the shipping
section Of the war budget bill. Mr.. Dem
man wants these powers for the ship
ping board. Gen. Goethals wants them
for himself, and he is understood to
have said he would be extremely reluc-
tant to remain as head of the Emer-
gency Fleet Corporation II he is unable
to impose his policies on the shipbuild-
ting programme or II he has to take
orders from the shipping board. The
| President, 1t is expected. will definitely
settle the quarrel this week by an execu-
tive order naming the agency to receive
the power
There is strong reason to believe that
Chairman Denman placed before the
President another plea for construction
of wooden ships to the limit of the
yards capacity. representing that the
slowly constructed steel ships never
would be ready in time to Offset the
toll of the German submarines. which
again is increasing after a lull.
The lull in the opinion of Chairman
Denman may have been due to the fact
that the German Government. antici-
patng the movement of American
troops across the water TO France
called the greater part of the sub
marines in to restock them with tor
pedoes. The increase in slnklngs ac-
cording TO this theory came when the
subma rines put out to sea again in the
hope OF encountering troop ships from
American ports.
Wants ships at Once.
Denman maintains that a large num-
ber of ships must be ready by January
1 TO be OF benefit to the United States
at a moment OF extreme crisis In the
, fortunes of the Allies. The steel ships
that are being contracted for, however
as well as the wooden ships of the Fer.
/ rls design, which by some is described
as too complicated for the present
emergency, are not for the most par
TO be completed until we'll into 1918 ant
in some cases not until the end OF mex
year.
II remains the opinion OF Denman
and of ;his the President has been full,
advised, that the most effective way o
, meeting the immediate need OF ships Il
TO build them by the simple straight
lined Hough design. The Department
of Labor has estimated that hulls bull
on this design can be finished within
two and a half or three months. Th
Ferris design Is estimated as requiring
at least one-thrd more time. Some o
the largest general contractors In th
country have offered to build woodei
ships of the Hough design and TO turi
n them out in rapid succession once con
: struction work is under way.
e Wilson Is Undecided.
= The President Is known to feel keenl
: the need of ships at once, lie con
. stantly is in receipt of the figures tellin
. of the submarine toll. but whether h
:, will side with Denman or Goethals
a a matter OF speculation here.
Chairman Denman estimates on tn
basis OF the published shipping losses O
| the British from submarines that tn
= Allies and neutral losses for a perio
% shortly fewer than four months has bee
i approximately 2323625 tons, or oni
u slightly fewer than 100000 tons
month. Figures given out by the BIRTHS
authorities aufIlt tHc iosS Va ao' NcSSSl
of all sizes, except fishing craft in tn
period from February 15 to June Q.
An average OF 1900 tons is taken 70
the ships sunk. This was arrived at b
review OF the tonnage sunk In III
:" first few weeks of the intensified sui
marine warfare. On this basis the toy
mage OF the British ships sunk was l
u 462,40O. British shipping sunk Is est
mated as about 8, per cent OF the tota
70 This would bring 1t up to gross tor
e mage OF 265S. 900. To arrive at III
IL dead weight or construction tonnage
per cent. Is added. Thus the total b'
l. comes 3,323.625.
D. Expecting Large Toll.
Thirty-eight British ships were sun
the week ended June Q. compared wit
eighteen the week before and ninetee
l. twenty-seven and twenty-three the thr,
n weeks preceding that, Officials here loo
g. for another large toll In the reports r.
st ceived here this week.
in The contracts for steel vessels signt
20 .