The Osceola times., 1885-10-31
OUR NEW CRUISERS.

Report Of the Naval Boer,i On Tbeir frer-
ent yaIue and Cost Of Comprehension
ter From Secretary whitney to john
Roach's Counsel.
WAsuINGToS, d. c., October 2G.-The
report OF the Naval Board, constituted
By order OF Secretary Whiinry TO exam
Inc the work aud mittrials OF the IN"
finished cruisers, Chicago. Boston ana
Atlanta, aud 10 ascertain the fair market
value thereof, including reasonable
margin of prolt upon the WORK, has
been approved by the Secretary aud re-
ferred by him to the Naval ADVISORY
Board. which latter has been ordered
to 90 on with the work of construction.
A full meeting of the Adv sory Board
has been called for to-day 10 consider
the rc1ort OF the Boari OF Appraisal.
The Board of Appraisal IN general re-
port, which Is introductory 10 the de-
tailed reports upon the the lh &C vessels,
saws:
The Board woui state that II considers
that the materials and workmanship, rs far
as can he seen at this stage OF the construc-
tion. are good and answer the requirements
OF the contracts, and cons .dcrS by cNpcnl-
ing the m Dney which the Board intimatcs as
necessary to be expended to make the yes
sells complete and up 10 the contract, that IL
will have nj 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 the Chicago
was Sssa, ,00o which was increased ~ accord
ance with the provisions of the second
clause of the contract by authorized extras
amounting to sH.fl., making total OF con.
tract price at this time s.Si,6s2 which, tie
Board assumes, would represent the fail
market value of this vessel, when completed
In accordance with the plans and speciilca-
tions of the contract. including reasonable
and customary margin OF proht. The Board
estimates tine cost of material aal labor IN
Guiding the profit, necessary TO complete
this vessel, at S.O',Gii. which being dtd icted
from the total contract price, leaves S'2 .dis
which the 30 ird declares to he the fan
market value of the work and materials be
longing 10 this vessel. and the customary
margin OF profit upon so much OF the work
as had been satisfactorily performed a; TIC
time Of the forfeiture OF contract.
In its repo upon the Atlantl, the
Board states the total contract is sG6l,-
S9s, and that an expenditure of s4l,95l
will be required to finish the hull The
latter amount deducted from the con.
tract price, leaves $500, 3S7 as the fair
market value OF the vessel In its present
condition. The total contract price OF
the Boston is SCOOPS. It is es mated
that an expenditure of $50, 1875 will be re-
quircd TO complete the hull, which
amount deducted from the contract prlc
leaves S6l0,0.5 as the present value OF
OF the vessel.
In connection with the foregoing re-
port, the following letter, written by
Secretary Viii ncy on the ith OF August
to Mr.. Vanderpocl, counsel for John
Roach, Is furnished for publ bl.ca,ion:
SIRAt our interview this morning said
would put In writing the course which IN
tended to pursue with reference to the Bos-
ton, Atlanta and dChicago,embodying my ex-
pectations with reference to them. My
authority is. of course. limited by the terms
OF the contract Ny view of the matter Is
that the present circumstances call upon
me to exercise n fair business Judgment with
regard to the boats, and | considered II
would be folly for the Government to take
such steps ss are found to be necessary to
complete them in accordance with the terms
OF the contract anu spec iications. When
the inventories have been ma le and ap.
praisai been had, contemplated by the
contract, see no reason to doubt that my
decision Will then be precisely what IL would
be ut the present time, namely, that under
existing ciIcums!ances the Government
should rescue Its property by svailing itself
of the terms OF the contract and carrying
them forward to com ple,lon. Indoing so, in
asnuch as in the end 1t IL practically done
NJ tut expense OF tnc contractor ADetHu1'
nm accounting is provid for at which the
balance OF profit or loss il struck for or
against him II should a. cm IL entirely proper,
while keeping control and direction OF the
work, that 1t should be done in the yard OF
the contrn and with his force.
The plans are there; the organiZat on IL
there. tamiinr with ship. and the necessities
OF the Government are lully met II an exact
ing supcrv sion Is retained and control over
the force l. retained, but the work II con
dncted wit the iorem, n aud force which the
contrac or's yard Is able to supply. In this
way probably greater economy of cNpcndi.
lures would he effected than In anytothci
way, and the large force now out of employ
ment wou'd be able to resume work. All this
! express informally rs my intention. which
have no reason to suppose viii for any
cause be changed II, in tict results from
the necessities of the situation and is the
only course which Sc 'Ins to me good sense
and business judgment dictate.
Very respectfully,
W. G. WHITNEY,
secretary OF tha Navy.
Tn 4 I