His plans to give Guamanians United States citizenship was rejected by then-Assistant Secretary of the Navy Franklin Delano Roosevelt.

The Navy launched an inquiry into the appropriateness and motives of the dismissal, but nonetheless, Maxwell, declared perfectly healthy by mainland doctors, was reassigned to the Naval War College.

However, Franklin Delano Roosevelt, then Assistant Secretary of the Navy, rejected the plan, claiming that making Guamanians citizens was not in the best interest of the country.

He also asked that Guam be made an open port of trade to all ships, believing this would reduce the local's dependence on government assistance for food.

[12] In December 1914, Maxwell found himself at the center of a diplomatic incident when the German Empire ship SMS Cormoran stopped in Guam to resupply on coal.

Maxwell, under orders to maintain American neutrality in the recently begun World War I, refused the ship supplies, instead forcing it to voluntarily inter itself at the island for the next two years.

The Navy launched an inquiry, led by Captain William R. Shoemaker, into the events surrounding Maxwell's dismissal and placement on the list by an officer of a lower rank.

[14] It was alleged that Cronan, then aide to the governor, disagreed with several of Maxwell's policies and used improper and unprofessional methods to oust him and take the position for himself.