The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1885-10-31
OUR NEW CRUISERS.

Repo-t y he N,aual Board on Jner Pres
ent yal4e and Cost of Completion Let
ter From Secretary whitney to John
RoaCh's Counsel.
WAsHINGToN, d. c., October 2G.-The
report of the Naval Board, constituted
by order OF Secretary Whitney TO exam
inc the work and materials OF the I'M
finished cruisers, Chicago. Boston and
Atlanta, and TO ascertain the fair market
value thereof, including 4 reasonable
margin of profit upon the work, has
been approved by the Secretary aud re-
ferred by him TO the Naval Advisory
Board, which latter has been ordered
10 go on with the work of construction.
A 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 is general re-
port, Which is introductory 10 the de-
tailed reports upon the the three vessels,
saws:
The Board would state that it considers
that the materials and workmanship as far
as can be seen nj this stage OF the construc-
ton, are good and answer the requirements
of the contracts, and considers by expcnd'
ing the money which the Board intimates as
necessary to be- expended to make the yes
sells complete and up I o the contract, that 1t
will have at that time vessels uD, in charac-
ter and quality, to the contract require
ments.
In their report upon the Chicago, the
Board OF Appraisal says:
The original contract price of tho Chicago
was SSSi. 0OO, which was increased IN accord
ance with the provisions of the second
clause OF the contract by authorized extras
| amounting to A4G9l, making total OF con-
tract price at this time s933, G92, which, the
| Board assumes, would represent the fair
market value OF this vessel, when completed
| in accordance with the plans and specitlca-
| tions OF the contract, including Il reasonable
and customary margin OF profit. The Board
| estimates the cost of material and labor, in.
| Guiding the profit, necessary to complete
| this vessel, Mt S20S,045, which being deducted
! from the total contract price, leaves SI2I 6Ad,
! which the Board declares to he the fair
market value of the work and materials be-
| longing to this vessel, and the customary
margin OF profit upon so much OF the work
| as had been satisfactorily performed at the
| time O. the forfeiture OF contract
In its repo upon the Atlanta, the
Board states the total contract is 8GGl,-
sos. and that an expenditure OF SAL, 95l
will be required to finish the hull, The
latter amount deducted from the con-
tract price, leaves SG20, 1887 as the fair
market value OF the vessel in its present
condition. The total contract price OF
the Boston is $500, 2l8. 1t is estimated
that an expenditure Of $50, 195 will be re-
qulred 20 complete the hull, which
amount deducted from the contract price
leaves SCOOPS 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 I said !
would put in writing the course which in
| tended TO pursue with reference to the Bos.
ton, Atlanta aud Chicag O, embodylng my ex'
pectRtions with reference to them. Ny
authority is, OF course, limited by the terms
OF the contract My view OF the matter IL
that the present circumstances call upor
me to exercise fair business Judgment will
regard to the boats, and considered II
would be folly for the Government to take
such steps as are found to be necessary t
complete them in accordance with the terms
Of the contract and specifications. WheI
the inventories have been made and ap
praisal been had, contemplated by TIT
contract, see no reason to doubt that m!
decision will then be precisely what 1t woulC
be at the present time, namely, that unde
existing eli cuTnstRnceS the OONernmen
should rescue its property by availing iteel
of the terms OF the contract and carryin!
them forward to completion. Indoing so. in
asmuch as in the end it is practically don
at the expense of the contractor (becaus'
an accounting is provided for at which the
balance of profit or loss is struck for o
against him)I should deem ii entirely proper
while keeping control and direction Of tn
work, that il should be done in the yard o
the contractor and with his force.
The plans are there; the organization
there, familiar with ships and the necesstle
of the Government are fully met II an exact
ing supervision is retained and control owe
the force IS retained, but the work is con
Quoted with the foremen and force which tn
contrac ors yard is able to supply. In TIL
way probably greater economy of eXpend
lures would be effected than in anyiotht
way, and the large force now out OF employ
ment would be able to resume work. All TIL
| express informally as my intention. whic
have no reason to suppose will for an
cause be changed. 1t, in fact, results froT
the necessities of the situation and Is til
only course which seems to me good sens
and business judgment dictate.
Very respectfully,
w. c. WHITNEY,
Secretary OF the Navy.