Memorandum for William Denman

COPY / GW
United States Shipping Board Emergency Fleet Corporation

Memorandum for Mr. Denman, Chairman, U. S. Shipping Board:
It is impossible to carry out the proposed program of supplying 1000 wooden ships in 18 months. It therefore, becomes necessary to augment the fleet of wooden ships by steel ships and this can be done if steel can be secured. I am advised by Mr. Farrell of the Steel Corporation that if an executive order along the lines of the one herewith be issued that the necessary steel for the ships to be constructed by the United States Shipping Board Emergency Fleet Corporation can be provided without interfering in any way with the existing naval program. It is not necessary to call to your attention the advisability of securing steel ships instead of wooden ones if such a course is possible. I recommend that steps be taken to secure the issuance of the executive order at as early a date as practicable in order that we may proceed along the lines indicated.
It is necessary that the Corporation have funds at its disposal for immediate use and that steps be taken to secure additional appropriations. If we are to construct steel ships as well as wood I would suggest that an appropriation of $500,000,000 be secured. It may be noted in this connection that advices from the representatives of the British Admiralty from Canada, who have had experience in construction of wooden vessels show that the average cost has been $135 per ton with a maximum cost of $147 per ton, so that the estimates of $250,000,000 in addition to the $50,000,000 to be secured from the sale of the Panama Canal bonds would not meet the necessities for wooden ships were it possible to construct them.