Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-04-25
SPEED PREnIuns on War SHIPS.
The Detroit HAS Made Remarkable Bonus
"a Her Contract Price.

WASHINGTON, April 24.-The official re-
port Of the trial of the new 2,000-ton
cruiser Detroit shows that she made an
average of ISL knots per hour in run of
four consecutive hours. Her contract
called for II knots. and allowed $4,000 for
every additional quarter knot and the same
rate for fractions of quarter. The result
is that for her LII knots in excess OF the of
the requirements the builders are TO receive
Sl.l 900.
This is not only the largest excess of
speed over the guarantee ever known in
our navy, but il is extraordinary in com
parison with the size and contract cost of
the vessel. Some large premiums have be-
fore been paid. bnt the largest have always
been on vessels of much greater size and
cost.
For example. the Baltimore, in which. as
was the case with all our earlier cruisers,
the premium was based on the aggregate in
dicated horse power developed by the en-
gines, and not on speed, earned Slo6,-
44l.s0 for her builders, Cramp & Sons.
This was properly considered great
prize, and it was earned by furnishing TO-
O6l AIS horse power, when the contract
called for 5000. with an allowance of 500
for each unit in excess of the contract. But
the Baltimore is big ship of 1900 tons dis
placement, of " hlch the contract price was
81 ,325 600.
Again, the Philadelphia, built by the
Cramps, was required to make 10 knots as
the average in run of four hours. She
was lucky enough, however, to have an al
lowance, by the contract, of $50 900 for
every additional quarter knot, or double the
Detroit's.
She made 1868 knots instead of the
10 required, and earned sl35 900. But the
Philadelphia is of 1921 tons displacement
and cost 81 ,335 900, while the Detroit is
of about 1000 tons, ard her contract price
is but S6l2 500, exclusive of any expense
of altering the original plans.
She surpasses all veseels in the percen-
tage of her speed premium earnings to to-
tai cost. Another comparison is furnished
by the gunboat Yorktown, which, with
100 tons displacement and contract price
of si55 900 earned nearly $40, 900 premium
for extra horse power.
Without going further into examples it is
clear that the Detroit has made a great
record for herself in this respect. But her
builders are completing sister ship, the
Montgomery, on exactly the same plans
and -stipulations.
There is no reason 10 doubt that she will
do as well AS the Detroit. If she should
the total earnings for premiums by the Col
umbian Iron Works on the two vessels
will be s3i2 900. This is "A very handsome
bonus on contract of 81 ,225 900.
1t should be said, however, that the con
tracts may have been assumed with the ex-
pectaton that the actual cost of the vessels
would exceed the contract price, and that
the profits must come out of the premiums
earned.
As has already been noted, the original
call for construction required guaranteed
speed of j. knots, and at the time the low
est bid offered was S1s0,0 900 for each ship,
whereas the Columbian Iron Works has
built the Detroit and her mate for S6l2 500
each.
1t will be observed, therefore, that the
difference between the lowest bid when the
contract was 10 call for * knots and the
actual price at ! knots almost equals the
premium of Sl1l 900 earned by the De
troit.
As the plans in the two cases were sub
stantially the same, il remains to be seen
how much the real earnings of the Detroit
over her actual cost have been.
Whatever this surplus makes them out
to be. it is well merted, and will be the
more cheerfully accorded from the fact
that the Columbian Iron Works had been
unfortunate with their first venture, the
gunboat Petrel.
This craft, now on service in the Asiatic
squadron. was required to maintain 100
indicated horse power fur four hours. She
was greatly delayed in completion, and on
her trial she could not get up to the guaran-
teed engine power, and was thus required
to pay Il small penalty, which was deducted
from her contract price.
This was rather disrouraging start in
government shipbuilding. but the Balti-
more firm, nevertheless, entered the com
petition with great spirit second time, and
its success will he the more generally well
come as helping to make up for any loss on
the Petrel.
The system Of premiums and penalties
for speed is undoubtedly popular with
builders, as it furnishes a pleasurable pros
pect of large gains over the calculated cost
of construction. Thus an element of ex-
citement and stimulus to endeavor en-
liven the long routine of work. The actual
trial has also all the interest, pecuniary and
other, of Il famous speed contest of any
sort. nder our system of contracts there
are time penalties for delay in completing
vessels within the time specified by the
agreement.
These penalties, it is true, are invariably
reduced very greatly by liberal allowances
for delays in procuring material and for
changes of plan by the government, while
in some instances the remaining penalties
have been RENTED on appeal to Congress.
Still, all contracts contain these provisions,
AMI order TO meet such time penalties the
speed premiums are found to be very
hnniy.
The government is always glad, of
course, to be called upon to pay high pre-
miums for extra speed, and is correspond
inyly to find vessels costing less, through a
lack of the guaranteed speed. If the Mont
gomcry should earn $500 900 it would be
an additional expense well laid out.