I wonder too. If it were me I would have pinned a medal on the sub captain at the very least. And then I would have to start looking at what our anti-submarine procedures were.
Tell that to the CO of the Houston.
From Wikipedia:
Houston became flagship of the U.S. Fleet on 19 September 1938, when Rear Admiral Claude C. Bloch brought his flag on board her, and maintained that status until 28 December, when she returned to the Scouting Force. Continuing the now-familiar routine of training exercises, she got underway for Fleet Problem XX, on 4 January 1939 from San Francisco, sailed to Norfolk and Key West, and there embarked the President and the Chief of Naval Operations, Admiral William D. Leahy, for the duration of the problem. She arrived Houston, Texas on 7 April for a brief visit before returning to Seattle, where she arrived 30 May.
More likely the other way around however. The boss was embarrassed, so the sub captain probably found a desk somewhere.