Huntsville gazette., 1885-10-31
OUR NEW CRUISERS.
report of the Naval Board on Their Pres.
ent Value and Cost of Completiou-Let-
ter From Secretary Whitney to John
Roach's Counsel.

AsepOrC OF tne NaVal bOaru on lnefE Eress
ent Value and Cost of Completion-Let-
ter From Secretary Whitney to John
Roach's Counsel.
WASHINGTON, 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
Atlanta, and to ascertain the fair market
value thereof, including 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
to 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 its general re-
port, which is Introductory to 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 at this stage of the cOnStruc-
ton, are good and answer the requirements
of the contracts, and considers by expend-
ing the money which the Board intimateS as
necessary to be expended to make the ves-
sells complete and up 10 the contract, that 1t
Will have at that time vessels up, 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 1885,, 600, which was increased in accord
ance with the provisions of the second
clause of the contract by authorized extras
amounting to S44692, making total of con-
tract price at this time s933, ,692 which, the
Board assumes, would represent the fair
market value of this vessel, when completed
in accordance with the plans and specifica-
tions of the contract. including a reasonable
and customary margin OF profit. The Board
estimates the cost of material and labor, in
cluding the profit, necessary to complete
this vessel, at S20S ,045, which being deducted
from the total contract price, leaves $725 GAG,
which the Board declares to be the fair
market value of the work and materials be-
longing to this vessel, and the customary
margin or profit upon so much OF the work
as had been satisfactorily performed at the
time of the forfeiture of contract
In its report upon the Atlanta, the
Board states the total contract is $66l,-
S98, and that an expenditure of Sal ,951
will be required TO finish the hull. The
latter amount deducted from the con-
tract price, leaves $G2O 387 as the fair
market value of the vessel in its present
condition. The total contract price OF
the Boston is $G60,21S. 1t is estimated
that an expenditure of $50, l95 will be re-
quired to complete the hull, which
amount deducted from the contract price
leaves $6lO,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.. Yanderpoel, counsel for John
Roach, is furnished for publications:
Sic 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 O,embodying my ex-
pectations with reference to them My
authority Is, of course, limited by the terms
of the contract. My view of the matter is
that the present circumstances call upon
me to exercise a fair business Judgment with
regard to the boats, and / considered IL
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 made and ap-
praisal been had, contemplated by the
contract, see no reason to doubt that my
decision will then be precisely what 1t ~olNu
be at the present time, namely, that under
existing circumstances the government
should rescue its property by availing ltseii
of the terms of the contract and carrying
themf0rward to completion In doing so, in
asmuch as in the end 1t is practically done
at the expense of the contractor lDecause
an accounting Is provided for as whlch tno
balance of profit or loss is struck Tor or
against, him II should deem it entirely proper
while keeping control and direction of the
work, that it should be done in the yard OF
the contractor and with his force.
The plans are there; the organization is
there, familiar with ships and the necessities
of the Government are fully met If an exact
Ing supervision Is retained and control over
the force is retained, but the work Is con-
Quoted with the foremen and force which the
contractors yard is able to supply. In this
way probably greater economy. of expendi-
tures would be effected than in anyIother
way. and the large force now out of employ
ment would be able to resume work. All this
/ express informally as my intention. which
have no reason to suppose will for any
cause he changed It, in fact results from
the necessities Of the situation and Is the
only course which seems to me good sense
and business Judgment dictate.
Very respectfully,
Secretary of the Navy.
To A. j. VANDERPoEL, ESQ, Counsel.