General Goethals resigned from the post of Governor of the Canal Zone in 1916. His positions thereafter were: State engineer of New Jersey in 1917 and manager of the
Emergency Fleet Corporation (briefly). George Washington Goethals was appointed as
acting Quartermaster General of the United States Army during the most crucial period of
World War I (December 19, 1917 to May 9, 1918) and was a member of the
War Industries Board (1918).
Quartermaster General of the United States Army poster for the US Shipping Board, pointing his finger at the viewer in order to recruit soldiers for the U.S. Army during World War I, 1917-1918 In April 1917 George W. Goethals was serving at President
Woodrow Wilson's request, as General Manager and Director of the
Emergency Fleet Corporation— charged with creating improvised ships, to carry the American army and its supplies to France, in the shortest possible time. The United States as late as 1917 maintained only a small army, smaller than thirteen of the nations and empires already active in the war. After the passage of the
Selective Service Act of May 1917, the U.S. drafted 4 million men into military service, the logistics demands were unprecedented. By the summer of 1918, about 2 million US soldiers had arrived in France and approximately 10,000 fresh soldiers were arriving in Europe each day. Mainly as a result of
supply blunders during the bitter winter of 1917, a Congressional investigation was under way, when General Goethals was recalled to active service, and was asked on December 19, 1917, to accept appointment as Acting Quartermaster General. Goethals did so only after
Secretary of War Newton D. Baker had assured him full authority and that he would not be interfered with, nine days later he was appointed Director of the Storage & Traffic Service. Reaction to his appointment at home and overseas is illustrated by a message he is said to have received from former President Theodore Roosevelt: "I congratulate you, and thrice over I congratulate the country." The Army's
supply chain suffered from three main problems—a shortage of specialized personnel, decentralized organization and diverse uncoordinated functions. When the United States entered the war, the
Quartermaster Corps had suffered a loss of personnel—most officers were sent to the front—this was the first problem demanding attention. Believing the Army's business could be best organized along civilian lines, he hired military men who could get along with industrialists and built with and around a number of highly trained executives and businessmen (among the new recruits were
Hugh S. Johnson and
Robert J. Thorne). Some of these men were commissioned and some were
dollar-a-year-men, most of whom never collected the dollar. , Major General George W. Goethals, Brigadier General
Herbert Lord, Brigadier General William H. Rose. Back row, left to right: Edwin W. Fullam, Brigadier General
Frank T. Hines, Brigadier General
Robert E. Wood, Colonel F. B. Wells. The
Overman Act, a result of the Congressional investigations started in December 1917, authorized what became known as the "interbureau procurement system," and was to make the Quartermaster Corps the most important War Department purchasing agency. Goethals established a system of standardization of bureau record keeping and supply chain planning. He also worked on installing uniform procurement policies, with the goal of presenting consolidated estimates to congress. In April 1918 a further reorganization of the General Staff led to the creation of the Purchase, Storage, & Traffic Division, with General Goethals as Director and
Assistant Chief of Staff of the Army. Its creation was the result of protests by General Goethals, to the effect that, though coordination in the handling of
Army logistics problems had been a major objective when the General Staff was created in 1903, coordination was practically nonexistent. In the months to come, his division took control of purchasing and storage by the Army as a whole and of transportation over land and water. Now one person coordinated all supply bureaus, which had previously competed for the nation's resources, in a system that had inevitably slowed down input of war supplies. At a meeting of quartermaster personnel in Washington, on August 8, 1918, Secretary of War Baker said: How fortunate this great army is to have so good and able a provider. Indeed, when the history of this war comes to be written, there will be chapters which have, up to now, almost escaped .... Today, I had a letter from General
John J. Pershing in which he was commenting upon the perfection of supplies on the other side.... France and England were not the only overseas destinations for quartermaster supplies. Among others were Italy, Hawaii, the Philippines, Puerto Rico, China, Russia, and Siberia. In a talk
General Wood made at this meeting he mentioned that: ... to handle this task, there are now in the Quartermaster Corps over eight thousand officers, one hundred and fifty-five thousand enlisted men, and sixty-five thousand civilian employees, and that number is being increased all the time to keep pace with the wants of our constantly increasing Army. In 1919, Goethals requested his release from active service.
Honors and awards For his World War I service General Goethals, who retired March 1, 1919—and whom General
Peyton C. March, the
Army Chief of Staff, called "a great engineer, a great soldier, and the greatest Chief of Supply produced by any nation in the World War "—was awarded the
Army Distinguished Service Medal; was named Commander of the
Legion of Honor by France and
Honorary Knight Commander, by Great Britain; and was awarded the British
Order of St. Michael & St. George and the Grand Cordon of the Order of Wen Hu by China. Previously he had been awarded many medals by scientific and geographic societies and some fifteen honorary degrees by universities and colleges. The citation for his Army DSM reads: ==Civilian life==