The Washington herald., 1920-12-15
TELLSOF SECRET
CUNARD DCONTRACT
CONFERENCE HERE
Denman Reveals Methods
Used With British Firm
During War.

a dramatic recital of a secret
conference of thirty members of
Congress at the White House and
the passage of a resolution, whose
real purpose was not undea TODD to
pave the way for the settlement Of
a controversy between this country
and Great Britain, was the interest
ing feature of the testimony of
William Denman. first chairman of
the United States Shipping Board,
before the Walsh investigating COM
mittee yesterday. Continuing from
yesterday the story of how the Gu
nafd Line had withdrawn it's ship
ping contracts in favor of the
American program, Denman reveal
ed unpublished history of the early
days of the war.
The committee also received from
Martin ]. Gillen, who had been pre-
viously connected with the board
and recently declined a nomination
from President Wilson as a member
of the new board. n plan for the
reorganization of the board. Gillen
proposed that the board be sepa-
rated from the Emergency Fleet
Corporation in order that it could
devote its entire time to the 400
merchant ships owned by the gov
ernment. He outlined full pro-
gram of organization designed to
effect more efficient operation of
the ships and to protect them from
evils which now threaten its very
existence"
Disagree over Cunard.
There was a disagreement in the
Shipping Board regarding the Gu
nard contracts" Denman said. in
speaking of the contracts placed by
the British line with American ship
builders. Raymond B. Stevens, a
member of the board. wanted to
turn them back to Great Britain.
He didn't know President Wilson
had instructed me to get them back
But thirty members of Congress
knew it. The matter was discussed
at the White House at what l called
the only union conference of the
war. What we all wanted to do
was to get the ships from the Eng
lish back to the American flag with
out the public knowing about the
transaction. My negotiations with
the British mission were disassoci-
ated from my connection with the
Shipping Board as chairman
Denman told the committee that
he did not tell the board of the ne
gotiations because all that he had
told the members had leaked" He
said they were trying to prevent a
controversy such as might have de-
veloped il the details of the nsgo-
tiations were made public.
Re~fed With Seu,fe
The whole thing hinged on the
Senate" he said. "A resolution Civ
ing US the power we needed was
drawn so carefully and with such
great secrecy that the obvious thing
we sought was shielded. and the
resolution passed in May, 1917"
When asked for what authority
he had for acting in the case, he
told the committee that he had never
taken that matter into consldera-
tion and was "functioning in a war
way" Resuming his story, Denman
said:
Il presented to the President and
the group of Senators our whole
building program. I explained how
in order for us to get the ships
fit was Imperative for us to have
in the winning of the war. we
wanted to have stopped the building
Of high buildings and bridges SO as
to conserve steel, and that it. would
be necessary to work two or three
shifts in the shipbuilding plants.
But the Cunard ships stood in the
way. L was requested by the Pres
ident as conferree with the British
mission. to obtain from Balfour an
amicable settlement for the return
of the British ships"
Denman devoted a large part of
his testimony to urging the eff
cheney of the Diesel maritime en-
gines. reciting the story of the oppo-
sition to them during his regime.