Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-15
IESI|F|ES BRITISH
TRIED TO INFLUENCE
SHIP BOARD POLICY
interference by Mission to
U. S. in 1917 Barred by
Denman, Ex-Chairman.
OBTAINED APPOINTMENT
UPON ADVISORY GROUP
Saws It Caused His Resignation
Promises Further Disclosures
If President Permits.

Members of the British mission
which visited the United States in 1917
attempted to influence the policies OIL
the Shipping Board, William Denman
of San Francisco. first chairman OF
the board, testified today before the
special House committee investigat-
ing the boards operations
Mr.. Denman indicated that his in
sistence that the Shipping Board be
free from British influence had more
to do with his resignation as chair
man of the board than any other one
thing.
In this connection the witness said
that if he could obtain the permission
of President Wilson for the disclosure
of certain phases of Shipping Board
negotiations zone of the sources of
interference with my administration
as head of the board may be dis
closed"
Got Member ON Board.
To support his charge Of attempts
of the British mission to influence the
policies of the board, Mr. Denman
said. that in April. 1917, when he was
attempting to organize an admins
trative board in New York to func-
ton with the Shipping Board "on
purely American basis" he discovered
that without his knowledge Sir Con
mission that had just arrived in this
country, was made member OF the
advisory board.
Il don't know how he got ON that
board-it all happened between noon
and half past O'Clock one afternoon
but can tell you how he got on. Mr.
Denman declared
II learned that three or, four mem
bers of the British mission had at
tended the session It which the se-
lection Was made. Afterward the
Shipping Board had O warm session.
1t lasted twenty minutes and all
that had been transacted at the pre-
vious session was wiped out.
I'VE wanted British cooperation.
but we didn't want Great Britain to
influence our board until we had
gotten things under way. We were
ssi ss DO in ana ss a1s he = ss Hsasia IN
this connection seemed very extraordi-
Fuuas nee Properly saseEsardea.
Representative Kelley was Of the
opinion that the shipping board, while
Mr.. Denman was its chairman, em-
ployed persons Of ordinary ability"
TO handle the boards accounts and
as a result the boards accounting
system has been in confusion ever
since" Mr.. Kelley charged that there
had been lack of foresight shown
by. the Denman-Goethals administra-
tion. $50
".It appears that there were no
proper safeguards to prevent placing
~ Ia in the
hands of persons inexperienced in the
shipping business" said Mr.. Kelley.
Evidently there was no protection
to the government against payment
of excessive salaries and of unrea-
sonable amounts for the construction
Of ships.
One Of the serious criticisms made
Of the Shipping Board during the
early days of the war;" Representa-
tive Kelley added. was that the
tie. IL any, power, and that the boards
controller had no check on the
treasurer's handling Of funds A
great deal of chaos was the result.
Pacific Coast Shipbuilding Company.
Of San Francisco. Mr.. Denman re-
marked that he did not believe Bur-
CESS. president of the company, had
had any ship building experience
Mr.. Burgess should have been con-
fined to land sales" Mr.. Denman add
ed. He was essentially real estate
man.
Mr.. Denman Thought" the town OF
Clyde, near San Francisco. had been
built at government expense and was
located at some distance from the
shipyards, instead Of at Bay point,
which was nearer, because Of mos
Quitos at Bay point"
The hearings were adjourned to-
day until after the holidays, when
Chairman Walsh said some of the
members Of the present board will
appear before the committee.