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CHAPTER XL

SHIPS AND THE MEN WHO MADE THEM.

HEN the United States of America entered the World War she was confronted at once by a serious question. The great Allied nations were struggling against the attempt of the Germans, through the piratical use of submarines, to blockade the coast of the Allied countries. It was this German action which had led America to take part in the war. It is true that America had other motives. Few wars ever take place among democratic nations as a result of the calculation of the nation's leaders. The people must be interested, and the people must sympathize with the cause for which they are going to fight. The people of America had sympathized with Belgium, and had become indignant at the brutal treatment of that inoffensive nation. They had sympathized with France in its gallant endeavor to protect its soil from the inroads of the Hun. This feeling had become a personal one as they reviewed the lists of Americans lost in the sinking of the Lusitania, and this sympathy had gradually grown into indignation when the Germans, after having promised to conduct submarine warfare according to international law, again and again violated that promise. When, then, the Germans declared that they would no longer even pretend to treat neutral shipping according to the laws of maritime warfare the people with one accord approved the action of the President of the United States in declaring war. The Germans at this time were making a desperate effort to starve England, by destroying its commerce, and it was in the endeavor to accomplish this purpose that they thought it necessary to attack American ships.

The first effort of Americans, therefore, was naturally to use every power of the navy to destroy the lurking submarines, and in the second place to use every means in their power to supply the Allies with food. But America had for many years neglected to give encouragement to her merchant fleets. Her commerce was very largely carried in foreign bottoms.

Ships were needed, and needed urgently, and one of the very first acts of the American Government was to authorize their production. Congress therefore appropriated for this purpose what was then the extraordinary sum of $1,135,000,000 and General Goethals, recently returned from his work in building the Panama Canal, was appointed manager of the Emergency Fleet Corporation and entrusted with the execution of the government's ship-building program.

The Emergency Fleet Corporation, however, was then independent of the United States Shipping Board, of which Mr. William Denman was made chairman, and friction between General Goethals and Mr. Denman at the very start caused long delay. The difference of opinion between them arose over the comparative merits of wooden and steel ships. The matter was finally laid before President Wilson and ended in the resignation of both men and the complete reorganization of the board and the Fleet Corporation, in which reorganization the Fleet Corporation was made subordinate to the Shipping Board but given entire control of construction,

Rear-Admiral Capps succeeded General Goethals, but was compelled to resign on account of ill health. Rear-Admiral Harris, who had been chief of the Navy's Bureau of Yards and Docks, then had the job for two weeks, but resigned because in his opinion he had not enough authority. Then came Mr. Charles Piez, who held the position for a longer period. Mr. Edward N. Hurley had been made chairman of the United States Shipping Board, and under the direction of these two men much progress was made.

In the spring of 1918 the boards themselves were not satisfied with their progress, and on April 16, 1918, Mr. Charles M. Schwab, chairman of the Board of Directors of the Bethlehem Steel Corporation, was made Director General of the Emergency Fleet Corporation. Mr. Schwab was one of the most prominent business men in the United States and one of the best known, and his appointment was received all over the country with the greatest satisfaction. His wonderful work in building up the Bethlehem steel plant not only showed his great ability, but especially fitted him for a task in which the steel industry bore such a vital part. The official statement issued from the White House read as follows:

Edward N. Hurley, Charles M. Schwab, Bainbridge Colby and Charles Piez were received by the President at the White House today. It was

stated that the subject discussed was the progress and condition of a national ship-building program. The carrying forward of the construction work in the one hundred and thirty shipyards now in operation is so vast that it requires a reinforcement of the ship-building organization throughout the country. Later in the day Chairman Hurley of the Shipping Board announced that a new office with wide powers had been created by the Trustees of the Emergency Fleet Corporation. The new position is that of Director General and Mr. Schwab has been asked, and has agreed, to accept this position in answer to the call of the nation. Charles Piez, Vice-President of the Emergency Fleet Corporation, recommended that the post of General Manager of the corporation be at once abolished, so that Mr. Schwab as Director General should be wholly unhampered in carrying on the large task entrusted to him. Mr. Piez, since the retirement of Admiral Harris, has been filling both the position of Vice-President and that of General Manager. Mr. Schwab will have complete supervision and direction of the work of ship-building. He agreed to take up the work at the sacrifice of his personal wishes in the matter. His services were virtually commandeered. His great experience as a steel maker and builder of ships has been drafted for the nation.

Although, the fact that production during the month of March had not been as great as had been hoped probably brought about this change, it should also be said that those who had been responsible deserved much credit for what had actually been done. They had been handicapped constantly by poor transportation and shortage of materials, but had worked faithfully and with what under ordinary circumstances would be regarded as remarkable success. The call upon Mr. Schwab was simply an effort to draft into the service of the country its very highest executive ability. Mr. Schwab's name had been mentioned before for more than one government post, and it was thought that here was the place where his talents could have the fullest play. It was stated in Washington that he would receive a salary of one dollar a year.

Mr. Schwab at once proceeded to "speed up" the shipping program. It took him just one day to arrange his own business affairs and then he began his work. His first day was spent in going over the details of his task with Chairman Hurley and Mr. Piez. He then received newspaper men, beginning the campaign of publicity which turned out to be so successful. He was full of compliments for the work which had already been done. "It is prodigious, splendid, magnificent!" he said. "It is far greater than any man who hasn't seen the inside of things can appreciate. The

foundation is laid. That task is well done. We are going to get the results which are needed and I should be proud if I could have any part in the accomplishment. All I can say for myself is that I am filled with enthusiasm, energy and confidence. Mr. Hurley and I are in full accord on everything, and we are going to work shoulder to shoulder to make the work a success, but the large burden must fall upon the people at the yards, and they are entitled to any credit for success. I do not want to have any man in the shipyards working for me. Nothing is going to be worth while unless we win this war, and every one must do the task to which he is called."

I want them all working with me.

One of the first steps that Mr. Schwab took to speed up ship production was to establish his headquarters in Philadelphia, as the center of the ship-building region. Chairman Hurley remained at Washington, and the operating department, which included agencies such as the Inter-Allied Ship Control Committee, was removed to New York City. It was stated that nearly fifty per cent of the work in progress was within a short radius of Philadelphia.

The

The year before the war the total output of the United States shipyards was only two hundred and fifty thousand tons. program of the shipping board contemplated the construction of one thousand one hundred and forty-five steel ships, with a tonnage of eight million one hundred and sixty-four thousand five hundred and eight, and four hundred and ninety wooden ships, with a tonnage of one million seven hundred and fifteen thousand. These of course could not be built in the shipyards then in existence. New shipyards had to be built in various parts of the country.

In the first year after the shipping board took control, one hundred and eighty-eight ships were put in the water and through requisition and by building, one hundred and three more were added to the American merchant fleet. By April, 1918, the government had at its service 2,762,605 tons of shipping. During the month of May, the first month after Mr. Schwab began his work, the record of production had mounted from 160,286 tons to 263,571. American shipyards had completed and delivered during that month forty-three steel ships and one wooden ship. Mr. Hurley, in an address on June 10th, said:

On June 1st, we had increased the American built tonnage to over 3,500,000 dead-weight tons of shipping. This gives us a total of more

than one thousand four hundred ships with an approximate total deadweight tonnage of 7,000,000 now under the control of the United States Shipping Board. In round numbers and from all sources we have added to the American flag since our war against Germany began, nearly 4,500,000 tons of shipping. Our program calls for the building of 1,856 passenger, cargo and refrigerator ships and tankers, ranging from five thousand to twelve thousand tons each, with an aggregate dead-weight of thirteen million. Exclusive of these we have two hundred and forty-five commandeered vessels, taken over from foreign and domestic owners which are being completed by the Emergency Fleet Corporation. These will aggregate a total dead-wight tonnage of 1,715,000. This makes a total of two thousand one hundred and one vessels, exclusive of tugs and barges which are being built and will be put on the seas in the course of carrying out the present program, with an aggregate dead-weight tonnage of 14,715,000. Five billion dollars will be required to finish our program, but the expenditure of this enormous sum will give to the American people the greatest merchant fleet ever assembled in the history of the world. American workmen have made the expansion of recent months possible, and they will make possible the successful conclusion of the whole program.

In the wonderful work that followed his appointment Mr. Schwab constantly came before the public, mainly through his addresses to the working men of the different yards. His main endeavor was to stimulate enthusiasm and rivalry among the men. A ten-thousand-dollar prize was offered to the yard producing the largest surplus above its program, and he traveled throughout the country urging the employees at all the great yards to break their records. The result of his work was that it was not long before it was announced that the monthly tonnage of ships completed by the Allies exceeded the tonnage of those sunk by the German submarine. The menace of the submarine, which had seemed so formidable, had disappeared..

The most important of the great shipyards which were producing the American cargo ships was at Hog Island in the southwest part of Philadelphia. This shipyard may indeed be called the greatest shipyard in the world. Before Mr. Schwab became Director General much criticism had been launched at the work that was going on there, and an investigation had been made which resulted in a favorable report. On August 5th the new shipyard launched its first ship, the 7,500 ton freight steamer, Quistconck, in the presence of a distinguished throng among whom were the President of the United States and Mrs. Woodrow Wilson. The