The sun., 1917-07-18
GOETHALSSAYS
HE MAY RESIGN
General to Demand Free Hand
in Ship Building-Den-
man Explains.


George w. Goethals will resign unless
he gets a free hand in the construction
Of the great steel and wooden emergency
fleet designed to defeat the German sub
marine campaign. The General con-
fided this intention to his associates to-
day regarding his controversy with
Chairman Denman of the Shipping
Board.
There will be a meeting of the di-
rectors of the Emergency Fleet Corpora
ton tomorrow, at which Gen. Goethals
will demand that the question of his un-
hampered authority be settled at once in
order that he may begin the construc-
ton work without delay or eliminate
himself from a position he deems intol-
cradle.
The row between Chairman Denman
and Gen. Goethals, the man who was to
build the ships which were to encompass
the defeat of the U-boat, Is rapidly be-
coming a public scandal in the opinion
Of many in Administration circles. 1t
is up to one man to settle 1t, and that
is the President. This statement is
made even by the Presidents own
friends.
Americas shipbuilding programme
Wdlltu again lO-uhg 'iiC N"S "iN''
continued their epistolary brawl. The
plans proposed last Friday by Goethals
for 1000, 900 worth of ships with
necessary fabricating plants, as an or
set to the German submarine destruction.
were held up completely while the two
men sat in their offices and sene each
other letters over matters which one OF
them admitted. in all probability, could
have been settled within two hours by a
friendly conference.
Wilson Reluctant to Act.
The only explanation offered by
friends of the President why this row Is
allowed to continue Is that the President
Is reluctant to make changes in his wal
staff. Both Goethals and Denman are
| jealous of the authority which the othel
assumes. The war plans of the United
States, so far as they involve construc
, ton of vast merchant fleet, are suffer
! ing in consequence.
OFFICIALS are losing patience with thu
! two men. Rumor has it that the Presl
dent has under consideration the dis
missal of one or both of them II they
' do not soon bury their differences ant
/ get busy building ships, but there /!
nothing from the White House to sub
stantiate this. IT was denied that th'
/ matter had come up at all at the Cabi
ret meeting.
Denman is refusing to o. X. the pro
gramme which Goethals promulgated a!
/ his own last Friday until the Genera
| furnishes full details as to the terms o
the contracts ami the costs involved il
communicating 100000 tons of ship
! ping on the stocks. Goethals so far ha
| failed to comply with this request. al
though il is understood he will submi
the information to Denman shortly.
Denman received Friday night tn
letter from Goethals outlining the pro
gramme which he proposed to put IL
effect Monday morning. 1t was no
until Monday morning, as the pro
gramme was about to become operative
that Denman sent note TO the Gen
eral asking for more detailed informa
ton.
| 1t was asserted at the office o
Goethals that the letter from Denmu
was accompanied by a definite reques
that the scheme be held up pending it
approval by the Shipping Board and tn
directors of the Emergency Fleet Cor
poration, in which the Shipping Boar
owns all the stock. Denman denied tina
he asked for the delay.
Goethals yesterday afternoon sen
part of the information asked by Den
ably could be most speedily accomplishe
by personal conference. This did no
suit Denman and he sent back lette
to-day which is said to have Ignore
Goethals's request for conference, bu
which made another demand on III
General for details OF his programm
which, ne said, the latter had omitted.
DenmRn Justines Action.
Denman is understood to justify hi
action on the theory that unless he ha
before him for mature consideration a
J the details of the Generals programm
he is in no position to go into a cor
ference with the General that Is.
feels that he would not be able to di:
cuss the programme at all until he hH
investigated carefully the costs, method
OF payment to contractors and all III
other features in the programme.
This argument attributed TO Denma
Is regarded by many as mere techn
cal subterfuge by the use of which
Is seeking to make "A show OF his al
thority and 10 force Goethals to compl
in every particular with the reque
, made Monday morning before he wi
, assent TO conference, quite regardlel
, how long this holds up the shippi
programme.
: On the Otner nand tnere are son
who cannot understand why the Gener
| did not accede at once to the reque
of Denman II he had the informatio
Z why, II he did not have It. he did 4
e at once inform Denman OF the fact al
! indicate when 1t might be available.
Z Denman admitted frankly to-day tn
4 the situation was interfering serious
= with the plans in contemplation, but
n placed the blame solely on the failure
4 Goethals to furnish the requested
o 1 formation.
= The chairman to all Appearances W
severely piqued at Goethals's issuan
of n programme last Friday without t
/. formal o. X. of the Shipping Boar
Goethals, however, understands that I
necessary authority was given to him
G the Presidents recent order and he
known TO have had assurances that
= would not he hampered in any way
G carrying out the programme.
e Denman said to-day In seeking 10 IL
: tify his positions
e I'VE 1.-THE Shipping Roardl have 2
. had the contracts for the two fabrlci
ing plants determined on by the Ge
eral, which. with the ships to be fab
Gated, involve the expenditure OF S35
II 100000 of the public's money. nor ha
h we had the estimates OF cost for /
d Communicating of ships on the stocks
II "As soon as we have the contracts a
" estimates, which We asked for tof I
coMssHasd on Second Page.