George W. Goethals to Woodrow Wilson

June 15, 1917.
The report on “Rapid Emergency Construction of Shipping,” which received your approval, contained the provision that: “to secure the speed of production, which is all-important,“we feel that the task of securing and equipping these ships“should be put in the hands of one man. Centralized con-“trol is essential for rapid and efficient work.”In order to carry out this policy, the United States Shipping Board Emergency Fleet Corporation was organized under the authority contained in the general Act establishing the United States Shipping Board, and the responsibility for the construction work placed on the General Manager, who was given the necessary authority to carry the responsibility.
Under the Act, approved June 15, 1917, you are authorized and empowered to take over plants of various kinds, shipyards, vessels built and in process of construction, and material. The same Act also authorizes incurring obligations to certain amounts for the construction of ships, for completing ships now in the course of construction, and for other purposes. It authorizes the President to“exercise the power and authority hereby vested in him and“expend the money herein and hereafter appropriated through such“agency or agencies as he shall determine from time to time;“Provided, that all money turned over to the United States“Shipping Board Emergency Fleet Corporation may be expended “as other moneys of said corporation are now expended.”In my letter of June 11th, I outlined the work that had already been accomplished, together with the program for future construction, and I now submit for your consideration draft of an Executive Order by which, if approved, you will exercise the power and authority vested in you through the agency of the United States Shipping Board Emergency Fleet Corporation, fixing the responsibility definitely upon the General Manager and giving him the authority which will be necessary to enable him to carry on the construction work, thereby confirming the existing status.
The Act contemplates two separate and distinct functions, one relating solely to construction; the other relating to requisitioning and taking over completed ships, and the operation, management and disposition of the ships so acquired and constructed. The Executive Order submitted herewith covers the construction features only.
The next to the last paragraph of the proposed Order relates to the cost of material entering into the construction of ships, a matter which has given me some concern. Arrangements have been made with the Lumber Committee of the Council of National Defense for lumber for our wooden ships so far as fixing a maximum price at which it can be obtained is concerned, but no arrangement has yet been made for definitely fixing the price for steel, though purchases have been made for some of the ships under contract. The Council of National Defense has also appointed a committee to fix the prices of materials of all kinds, and the work of ship construction should secure whatever advantages may result therefrom. If a central purchasing agency is established, as I have been informed is under advisement, I should be very glad to avail myself of its facilities in making purchases for the Emergency Fleet Corporation.
I trust the Executive Order proposed may commend itself to your approval.General Manager.