The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-06-27
GOETliALS HELD RESPONSIBLE
VIII construct Vessels and Denman
Will Operate Them, Thus Settling
Dispute.

Washington, June 22.-The contest
between Chairman Denman of the
shipping board and Maj. Gen. George
Goethals, manager of the boards
emergency fleet corporation, for au-
thor:ty to exercise powers granted by
congress in providing a merchant
tieet will be settled by President Will
son giving Gen. Goethals the author
ity, with directions that he build all
the ships possible, both steel and
wood .s.lsss
zen. Goethals will be authorized to
commanders Immediately all ship
ping now building, speed up its con-
struction and spend the $50, ZOO, 900
appropriated by congress for ship
building. Chairman Denman will re-
tain powers necessary for operating
and chartering ships and as president
of the fleet corporation will continue
to pass finally on contracts for con-
struction.
The power granted to the president
to commander steel supplies probably
will not be delegated to any one for
the present. The government, It is
said, hopes to arrive at some arrange
ment as to steel prices which will
make it unnecessary to commanders.
The dispute over prices to be paid
for steel took a new turn today when
Chairman Denman asked the federal
trade commission to investigate the
cost Of steel manufacture with a view
to arriving at a fair price, and Gen.
Goethals requested the steel commit
te of the council of national defense
to take the matter up. Mr.. Denman
has balked at paying more than $50
a ton for steel and refused to sign
contracts made by Gen. Goethals
calling for steel at s95.
At the trade commissions ofic,
it was said the steel investigation
probably would be started Immediate
ly and that cost facts developed
probably would be used as a basis for
legislation to be asked protecting in
dividual consumers from high prices.
If the steel plants decline to sell
at the trade commissions figures, the
government. If ii is determined to OBJ
tain steel at that price, can exercise
the power to commanders. The navy,
now paying S65 q ton for STEEL also
has the power to commander under
the national defense act.
An inquiry into prices of steel, coal,
copper and other basic materials used
By the government for war purposes
was decided on today by the senate in
terstate commerce committee. Coal
will be the first subject taken up.
Confusion over purchasing for the
duplication of effort and
prices paid by different gov
departments for supplies may
bring, it was said tonight, a rear
of committees of the coun-
I'll of national defense and creation
Df buying commissioners with sole
responsibility in purchasing. Under
this arrangement Bernard Baruch,
chairman of the councils committee
Oh raw supplies, probably would be-
come purchaser Of raw material, and
Julius Rosenwhal, chairman of the
on supplies, would pur-
chase finished products
Mr.. Baruch. who negotiated ar
with producers through
which the government has obtained
erials. has no sympathy with dis
)utes between officials as TO the price
It which steel should be furnished for
Winning of the war is all that
'ounts," he said tonight" Materials
should be bought at tho lowest price
possible with full production. 1t Is
# no value to cut costs if output is
cduccd below the need. The thing
most important is to get materials for
and get them quickly"
There have been rumors that a di-
ision OF authority might be given as
ctwecn Gen. Goethals and Chairman
'enman, the general to build steel
hips and Mr.. Denman to take charge
f wooden ship construction but to-
light il seemed likely that the presi-
ents instruction TO Gen. Goethals to
uild all the wooden vessels possible
leant that while the general will have
all authority i'm building he will carry
ut the shipping boards wooden ship
roSramme.