The sun., 1918-10-30
HURLEY ANNULS
$6O,OOO,O0O JOB
Shipping Board Chief With
draws Contract From Beth
lehem Steel Company.
TO CONCENTRATE WORK
Affected Interests Reported
to Be Whetting Knife for
Fleet Chairman.
TO CONCENTRATE WORK
Specini DtspatcA TO THE srN.

WASHINGTON. Oct. ga sixty million
dollar contract awarded to the Bethle-
hem Union shipyards of the Bethlehem
Steel Company at Alameda, Cal, has
been cancelled by Chairman Hurley of
the Shipping Board.
Work on six new shipways at this
yard for the building of number OF
$4,000 ton troop transports has been
stopped. and the extension project will
be abandoned SO far as the Shipping
Board is concerned
Action was taken by Chairman Hurley
as part of the programme of concen-
trating shipbuilding efforts in existing
yards. There will be no further extern
sion Of ahipbuildins facilities, with the
possible exception of the construction OF
additional concrete yards or ways. On
the other hand general programme OF
concentration and elimination is being
worked out under which Shipping Board
support for fifteen or more OF the least
efficient wood yards and several OF the
steel yards is to be withdrawn.
Production Equals Needs.
Expansion Of the Bethlehem Union
yard was decided upon last spring when
an increase in the number OF transports
was deemed necessary. Since then
double deck cargo carriers and other
larger ships have been converted into
transports and production has been
brought to such a point that expansion
of facilities was deemed by Chairman
Hurley and his advisers as not neces-
sary. The Shipping Board. it is de-
1,ar f,,u md No In
completion sufficient 10 meet all de-
mands for troop movement on the eighty
division plan, which contemplates the
placing OF over 4,0O0.0 900 men in France
by June of next year.
AS a result it was determined to
cancel the enlargement OF the yard at
Alameda in the face Of the general cut
ting down of ship facilities. Launchings
from the new ways there would not
commence, for many months. it was
stated to-day. and the force at the yard
would have to be divided which would
hurt the high efficiency that has OBJ
tanned.
Though the Alameda yard is owned
by the Bethlehem company ii can be
positively stated that Charles NJ. Schwao.
who came TO the Emergency rleet Noi
! poration from the Bethlehem company,
was in accord with Chairman Hurley
action in this particular and with the
general programme OF restriction Oh the
building of new facilities.
shipways More Than Ample.
There are now 104 shipways in the
| United States capable OF building big
steel ships of the transport type. anu
successive studies and inventories show
| IL Is stated, that existing shipbuilding
| facilities are II anything more than am
pie. Despite these facts strong pres
sure was brought to bear on Chairman
Hurley against the cancellation OF the
| Alameda contract. Action was held up
for days, but the chairman insisted upon
! his course as necessary to the conserva-
| tion of public funds.
No official statement has been MADE
with respect to the contract or its can
cellation. There are apparently well
founded reports. however. that certain
shipbuilding interests. those adversely
| affected by the concentration pro-
Rramme, are with the assistance OF GER
tain members OF Congress planning to
| ..huIld a fire" under Chairman Hurley.