New-York tribune., 1917-07-25
Coethals and
Denman Out;
Capps Named
Rear Admiral Made Con-
structor; Hurley Heads
Ship Board
Bainbridge Colby
Succeeds White
President Ends Controversy
Over Programme by
Sweeping Changes

son pfouSHI tHe oHiPPiH6 bDoiN ~" w
an abrupt termination to-day by elimi-
mating the two principals-William
Denman. chairman of the board, and
Major General George W. Goethals,
manager of the boards Emergency
Fleet Corporation in charge Of con-
struction. ..........
The resignation Of General Goethals.
rendered some days ago, was accepted,
and Mr.. Denman was asked by the Pres
ident to follow suit, that the govern
ment's building programme might go
forward without embarrassment.
Edward N. Hurley, of Chicago, for
mer chairman Of the Federal TRADE
Commission, was named by the Presi-
dent to succeed Mr.. Denman TO become
chairman of the board, and Bainbridss
Colby, Of New York, was appointed sue
cessor to Captain John B. White, OF
Kansas City, another board member
whose resignation. offered to the Pres
ident a month ago, also was accepted
Rear Admiral Washington L. Capps'
chief constructor of the navy, will sue
ceed General Goethals as manager OF
the feet corporation, taking immediate
charge of the building programme.
Nominations to Senate
The nominations Of Mr.. Hurley and
NJ. Colby went TO the Senate this a.
ternoon and were referred to the Con-
/ merce Committee. Their prompt con-
I frmation was predicted by both Dem'-
cratic and Republican leaders.
Mr.. Denman sent his resignation to
the White House Immediately after the
receipt of the Presidents letter re-
bursting it. The Presidents action
manifestly took him by surprise. ou'
his only comment was this:
at was the best way to settle the
whole thing. I want to help the Pres
ident in every way possible. and never
have questioned the wisdom of his de-
cisions." .........
1t was reported tonight that 1heo-
dore Brent, vice-cnairman of the board
who has been strong supporter CT
Mr.. Denman's position, had offered 10
quit the board If the President thought
I IL best. but at the White House il was
said no communication had been re-
ceived from him. John A. Donald ard
r. B. Stevens, the other board mem
bers, who had lined up with General
Goethals, said they had no intention
of resigning.
Wilson's Act a Surprise
The Presidents method Of ending the
controversy came as a great surprise
To most officials here, who had believed
he would make a final effort to com
pose the situation by dividing definite
iy between the Shipping Board and the
manager of its corporation the powers
conferred Oh the Executive by Col-
gress. Mr.. Wilson apparently became
convinced, however. that Denman and
Goethals never could work in harmony
and that both were in measure to be
blamed for the delay to the shipbuild-
ing programme.
Virtually from the start of the
trouble, il became known tonight. Mr..
Denman did not have the full support
Of the board fer his wooden ship pro-
gramme. Mr.. Donald and Mr.. Stevens
consistently supported the general, but
Mr.. Brent and Captain White stood
with the chairman. After he had Of
fered his resignation, a month ago, on
account Of i'll health, Captain White
returned to Washington in time TO cast
the deciding vote against the Goethals
building programme.
General Goethals's announcement OF
this programme furnished the cause for
a definite split between him and Mr..
Denman. Much of the Goethsls plans
was the original programme proposed
by the Shipping Board, but Mr.. Den
man is said TO have resented the fact
that the general in making it public
declared ne would proceed without
consulting the board.
How Controversy Started
The Presidents order conferring the
powers given by Congress authorized
the board to operate ships and the cor
poration to build them. General Goe-
thals, reinforced by letter from Presi-
dent Wilson, which declared he would
not be hampered, took the order TO
mean he would have a free hand Mr..
Denman, with a letter from the Presi-
dent, which he thought charged the
Shipping Board with responsibility for
the expenditure of the funds supplied
by Congress, promptly blocked the gen.
erals plans.
Difficulties then developed thick and
fast. and another letter went from the
White House to General Goethals. 1t
called the general to account for an
nouncing his programme without first
consulting the board, and made 1t clear
that he was not in supreme charge or
the building programme and must not
proceed without the approval OF the
Shipping Board
Capps to Act at Once
Mr.. Denman's resignation leaves vice
Chairman Brent as temporary chair
man. and there will be no interruption
70 the boards work. Until their nomi-
nations have been confirmed Mr.. Hurley
and Mn Colby will sit with the board
a, members without the power to vote.
Meantime Rear Admiral Capps Will take
immediate charge OF building.
General Goethals is now back In the
status of a retired officer Of the United
States Army, subject to any duty to
which the President may call him.
| r T...x. b,t,,es, The President