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 STATEMENT AND RESOLUTIONS 
 
 ADVOCATING THE CREATION OF A BOARD 
 
 OF WAR CONTROL AND A DIRECTOR 
 
 OF MUNITIONS 
 
 January 25. 1918 
 
TO ALL BUSINESS ORGANIZATIONS OF THE 
 UNITED STATES 
 
 Gentlemen : 
 
 We urgently request that you give immediate and most 
 earnest consideration to the appended preambles and resolutions, 
 which advocate the application of indispensable business methods 
 to the biggest business problem which ever confronted any nation ; 
 namely, speedy and effective preparation for the war. 
 
 If you agree with us that the big business of war cannot 
 effectively be carried on except by adopting the method of cen- 
 tralized control which prevails in every big business in the world, 
 and by entrusting that control to men of business genius and 
 proved experience in business management, we urge you to aid 
 in bringing about such control. This is exclusively an economic 
 and business proposition. 
 
 The most effective way in which to aid is to make your views 
 known to your Congressmen and Senators. We urge, therefore, 
 that you adopt appropriate resolutions and transmit them at once 
 to your representatives in Congress and seek active publicity co- 
 operation on the part of your local newspapers. 
 
 Very truly yours. 
 
 The Merchants' Association of New York. 
 
 By William Fellowes Morgan, 
 
 President. 
 
 D. Of D. 
 
 MAR 1! 1918 
 

 ^ 
 
 QJ cr 
 
 S= i VOCATING CREATION OF A BOARD OF 
 
 STATEMENT RELATING TO RESOLUTIONS AD- 
 
 WAR CONTROL AND A DIRECTOR 
 OF MUNITIONS 
 
 NO big business with many branches and divisions can be 
 properly carried on without a complete programme with 
 all its parts clearly defined and so adjusted to each other 
 as to prevent all conflict. No such programme, however excel- 
 lent, will work itself. Each of the various parts may be en- 
 trusted to able men; but if each of those men undertakes to 
 operate his part without reference to what the others are doing, 
 the result will be confusion in all the parts, none of the parts will 
 work well, and the machine as a whole will function badly. 
 
 It is indispensable, therefore, that all the parts be subjected 
 to a common control in order that none may interfere with others, 
 and that the programme as a whole may be perfectly correlated 
 and proceed with the highest degree of speed and efficiency. 
 
 Every great business corporation has numerous departments, 
 each of which is in charge of an experienced and able man. 
 While each of these men has ample authority within definite 
 limits, his authority does not comprise important matters of policy, 
 nor may it be so exercised as to conflict in operating details with 
 other departments. Every department is, therefore, subordinate 
 to a General Manager, who not only imposes policies but super- 
 vises and co-ordinates the operations of all departments in such 
 manner as to prevent conflict and obstruction, to promote the 
 highest efficiency of each, and to insure that the machine as a 
 whole shall function properly. 
 
 No big business machine can function effectively without a 
 General Manager to so direct, control, and co-ordinate the opera- 
 tions of its department heads that they shall fully conform to and 
 promote the comprehensive programme prepared and imposed 
 by the higher authority having power to determine policies. 
 
At the present time a very large part of the energies of our 
 Goveriiment are appHed to a vast business undertaking — the 
 preparation for war. 
 
 This work devolves upon the executive branch of the Gov- 
 ernment, with the President at its head. It is divided among 
 several departments (each having a number of co-ordinate bu- 
 reaus) and a number of more or less independent commissions, 
 boards and committees. Some of these divisions operate under 
 powers delegated to them by the President ; others under specific 
 laws, but all of them operate without a common programme, and 
 in the main independently of each other. Although all are legally 
 subordinate to the President, nevertheless they are for all prac- 
 tical business purposes not now under any effective co-ordinating 
 control. 
 
 There is imperative need for a controlling head, directly 
 under the President, to decide upon policies subject to the Presi- 
 dent's approval ; to prepare a general programme ; to define the 
 part to be taken in such programme by every subordinate depart- 
 ment, board or division ; to supervise, control and co-ordinate all 
 their operations, and in general to perform the functions of a 
 General Manager in a great business corporation. The Presi- 
 dent has an infinity of matters of the most fundamental impor- 
 tance constantly pressing upon him, and the demands upon him 
 are so great as to make it a physical impossibility for him to 
 acquire the knowledge of detail and to exercise the supervision 
 without which the affairs of the departments cannot be properly 
 controlled and co-ordinated. It is not proposed to deprive him 
 in the slightest degree of any of his Constitutional powers, but 
 simply to place at his command an agency which can devote itself 
 exclusively to a mastery of such details and to the supervisory 
 work necessary for efTective operation ; thereby enabling the 
 President not only fully to be informed of the operations of every 
 branch of the Government, but also to so direct and control them 
 through a Board of General Managers as to insure the complete 
 carrying out of his policies. 
 
 The need of a co-ordinating power cannot be disputed by 
 any one competent to judge thereof. The War Department, the 
 Navy Department, the Shipping Board, the Emergency Fleet 
 
Corporation, and otlicr Government agencies are now competing 
 with each other in the matter of munitions and suppHes in such 
 manner that none of them can command all the facilities neces- 
 sary to carry out parts of essential programmes upon which the 
 conduct of the war is dependent. Under the present lack of 
 policy, factories which might have been employed upon essen- 
 tials have been employed upon the production of munitions and 
 supplies which cannot possibly be used for a year to come ; 
 whereas their activities have been urgently needed in the produc- 
 tion of other materials required at once. 
 
 The function of properly providing for the fuel supply of 
 the Nation cannot be carried on except by close co-ordination 
 with transportation facilities. No such co-ordination has been 
 effected or could be effected under the existing lack of common 
 direction. Huge efforts have been made to expedite the building 
 of ships without adequate provision for transportation facilities 
 and for the provision of fuel, whereby much of the material with- 
 out which shipbuilding cannot proceed has not been manufactured 
 and even when manufactured cannot be transported. 
 
 The work of shipbuilding cannot go on to the necessary ex- 
 tent without ample labor supply, wdiich has been precluded by 
 failure to provide the necessary housing accommodations for 
 w^orkmen. 
 
 These instances could be multiplied practically without limit. 
 Chaotic conditions prevail in every branch of the Government 
 despite the fact that many able and experienced men are in charge 
 of these various affairs, but their efforts have been limited by 
 reason of the lack of a common programme and co-ordinating 
 control. 
 
 There will be no dispute in any quarter that these conditions 
 should be abolished and more workable conditions substituted. 
 Commendable progress has already been made toward that end 
 in the War Department, and has been begun in the Fuel Admin- 
 istration, but better organization within the limits of any or all 
 departments does not meet the existing exigency. Departmental 
 reforms are highly desirable and must be enforced, but however 
 good a departmental organization, it cannot be fully effective 
 unless the operations of each department be correlated with 
 
those of other departments so that there shall be no cross-pur- 
 poses, no confusion, and no independent programmes. 
 
 Because of these conditions, The Merchants' Association of 
 New York urges upon Congress the necessity for a Board of 
 War Control, subordinate only to the President of the United 
 States, and a Director of Munitions who, subject to the Board 
 of War Control, shall have sole control for providing of munitions 
 and supplies required for the purposes of the war. 
 
 THE Board of Directors of The Merchants' Association of 
 New York, at a special meeting held January 25, 1918, 
 adopted the following preambles and resolutions, and 
 directed that a copy be sent to each member of Congress. 
 
 S. C. Mead, 
 
 Secretary. 
 Jan. 25, 1918. 
 
 PREAMBLES AND RESOLUTIONS 
 
 Whereas, The efificient conduct of the war in which this Nation 
 is now involved is a paramount purpose of the American 
 people, rising above all other considerations, political, sec- 
 tional, or personal ; and 
 
 Whereas, Such efficient conduct is possible only through such or- 
 ganization as will centralize control, prepare programmes, 
 clearly define all duties, avoid all conflicts of jurisdiction as 
 between departments and bureaus, such as the War Depart- 
 ment, Navy Department, Marine Corps, Shipping Board, 
 Fuel Administration and others ; and ensure complete co- 
 ordination ; and 
 
Whereas, The conduct of the war is apparently characterized by 
 lack of co-ordination ; by independent planning by unrelated 
 and unco-ordinated authorities acting without agreement ; by 
 absence of power for quick decision and action in vital mat- 
 ters, which conditions tend to confusion, delay, waste and 
 low eflficiency ; therefore be it 
 
 Resolved, That, in order to meet the imperative demand of the 
 American people and of the Government for the speediest 
 possible preparation for and the most vigorous conduct of 
 the war, for which Congress has conferred unparalleled 
 power upon the President and has provided means almost 
 without Hmit, the machinery of administration should be 
 strengthened by the creation of 
 
 1 . A Board of War Control, to be appointed by the Pres- 
 
 ident and approved by the Senate and subordinate 
 only to the President. It should consist of men of pre- 
 eminent ability unburdened by departmental routine 
 and should have authority, in respect of all matters 
 relating to planning and preparation for, and direction 
 of the war, over all other departments and officials of 
 the Government ; such Board to supervise, direct, con- 
 trol and especially to co-ordinate the war preparations 
 of every other department and branch, and to that end 
 to be empowered to reorganize in its discretion any 
 existing departmental organizations or methods. 
 
 2. A Director of Munitions who, subject to the Board of 
 
 War Control, shall have sole control of providing all 
 munitions and supplies required for the purposes of 
 the war ; and be it further 
 
 Resolved, That the Congress is earnestly requested immediately 
 to pass the necessary legislation fully to carry out the pur- 
 poses of the preceding resolution and to repeal any existing 
 legislation conflicting therewith. 
 
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