Arthur MacArthur, III, was born on June 1, 1876. He entered the U.S. Naval Academy in June 1892 and was commissioned an Ensign in the U.S. Navy in June 1896. MacArthur served aboard the gunboat yacht USS Vixen (PY-4) in the Battle of Santiago, Cuba, during the Spanish-American War in July 1898, and he later participated in naval operations during the Philippine Insurrection and the Boxer Rebellion in China. He served as commanding officer of the submarine USS Grampus (SS-4) from her launching in July 1902, through her commissioning in May 1903, and for her first year operating out of San Francisco, California. LT MacArthur commanded a division of submarines before returning to the Naval Academy as an aide to the Superintendent in 1906, and later served aboard the battleship USS Louisiana (BB-19) from 1909 to 1911. CDR MacArthur served as commanding officer of the destroyer USS McCall (DD-28) for a short time from 1911 to 1912, and then served on the General Board of the Navy in Washington, D.C., from 1912 to 1915. He commanded the cruiser USS San Francisco (C-5) from 1915 to 1917, and then served as commanding officer of the armored cruiser USS South Dakota (ACR-9) in the Pacific Fleet in 1917. CDR MacArthur commanded the protected cruiser USS Chattanooga (CL-18) on Atlantic convoy duty during World War I, and then commanded the San Diego Naval Training Center in San Diego, California, from 1919 to 1921. He commanded the transport USS Henderson (AP-1) from 1921 to 1923, and was then assigned to Washington, D.C., to serve on the Boards of Examination for Promotion and Retirement of Naval Officers. Arthur MacArthur died on active duty from appendicitis on December 2, 1923, and was buried at Arlington National Cemetery. Capt MacArthur was the son of Army LtGen Arthur MacArthur, Jr., and the older brother of General of the Army Douglas MacArthur.

His Navy Cross Citation reads:

The President of the United States of America takes pleasure in presenting the Navy Cross to Captain Arthur MacArthur, III, United States Navy, for distinguished service in the line of his profession as Commanding Officer of the U.S.S. CHATTANOOGA, engaged in the important, exacting and hazardous duty of transporting and escorting troops and supplies to European ports through waters infested with enemy submarines and mines during World War I.