The Magnolia gazette. [volume] (Magnolia, Miss.) 1872-current, 1885-10-30
OUR NEW CRUISERS.

| tsepOTC OIL the naval BOafu OH lDeir freR-
ent Value and Cost of Completlon-Let-
ter From Secretary Whitney to John
| Roaoh's Counsel.
| WAsHIN aToN, d. c., October 26.-The
report of the Naval Board, constituted
by order of Secretary Whitney to exam
Inc the work and materials of the un-
finished cruisers, Chicago, Boston and
value thereof, including d reasonable
margin of profit upon the work, has
been approved by the Secretary and re.
ferred by him to the Naval Advisory
Board, which latter has been ordered
TO go on with the work of construction.
full meeting of the Advisory Board
has been called for to-day to consider
The report of the Board of Appraisal.
The Board of Appraisal in lis general re-
| port which Is introductory to tho do
tailed reports upon the the three vessels,
| EavS:
| The Board would state that It considers
| that the materials and workmanship, as far
| as can be seen at this stage of the construc-
| ton, are good Qnd answer the requirements
| of the contracts, and considers by expend-
| ing the money which the Board ittimates as
| necessary to be expended to make the ves-
| sells complete and up TO the contract, that It
/ will have at that time vessels up, In cliaFac-
ter and quality to the contract require
ments:
In their report upon tho Chioaso, the
Board of Appraisal says:
The original contract price OF the Chicago
| was $3.50 900, which was increased in accord
| ance with the provisions OF the second
| clause of the contract by authorized extras
amounting to S4 692, making total of con-
1 tract price at this time s9S3,692, which, the
| Board assumes, would represent the fair
market value of this vessel, when completed
] yrtf n NIuIt md ann nno
| tions of the contract, including reasonable
| and customary margin OF profit. The Board
estimates the cost of material and labor, in
Guiding the profit, necessary to complete
! this vessel, at se0so45, which being deducted
from the total contract price, leaves SI2' SAG,
wnign tne board f a. deeiares 70 De the far
longing to this vessel and the customary
margin OF profit upon 50 much of the work
| as had been satisfactorily performed at the
time of the forfeiture of contract.
In its repo upon the Atlanta, the
Board states the total contract Is $66l,
898, and that an expenditure of S4l,95l
will be required to finish the hull. Tho
latter amount deducted from the con-
tract price, leaves $620,SS as the fair
market value OF the vessel In Its present
condition. The total contract price of
| the Boston Is $660,2l8. 1t is estimated
that an expenditure of $50, 195 will be re.
| quired to complete the hull, which
amount deducted from the contract price
leaves $Gl0,023 as the present value of
of the vessel.
In connection with the foregoing re-
port, the following letter, written by
Secretary Whitney on the 4th of August
to Mr.. Vanderpoel, counsel for John
Roach. is furnished for publication:
sIR--At our interview this morning said
would put In writing the course which | in
tended to pursue with reference to the Bos-
ton, Atlanta and Chicag G, ,embouying my cx-
| pectations with reference to them. My
authority Is, of course, limited by the terms
OF the contract. My view of the matter is
me to exercise u fair business Judgment with
regard to the boats, ind considered 1t
/ would be folly for the Government to take
| such steps as are found to be necessary to
complete them in accordance with the terms
Of the contract and specifications. When
the inventories have been male and APP
praisal been had, contemplated by the
contract, see no reason to doubt That my
decision will then be precisely what 1t would
| be at the present time, namely, that under
should rescue its property by avnIling itseli
OF the terms of the contract and carrying
themforward.t to completion. In doing so, In
asmuch as in the end 1t Is practically done
Mt the expense of the contractor (becausc
an accounting is provided for at which the
balance of profit or loss is struck for OF
against ,him)l should deem It entirely proper
while keeping control and direction of the
work, that 1t should be done in the yard o.
the contractor and with his force.
The plans are thefei the organization II
there. familiar with ships and the necessities
of the Government are fully met II an exact
ing supervision is retained and control ove
the force is retained, but the work is con
Quoted witt the foremen and force which the
contrac ors yard is able to supply. In thii
way probably greater economy of expendi
| lures would be effected than in anyfothei
way, and the large force now out of employ
4 ment would be able to resume work. All thi
express informally as my intention, whicl
i have. no reason to suppose will for an.
cause be changed. It, in fact results from
the necessltiesNof the situation and Is til,
only course which seems to me good sensi
and business Judgment dictate.
Very respectfully,
w. G. WHITNEY,
Secretary of the Navy.
To A, ]. VANDERPoEL, ESQ, Counsel.