The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-03-03
IN STEEL PLATES
The Carnegie Company FOTieitS $780,
4S4 to the Government.

A Claim That the Substitution of the
Inferior Plates Was Made without
the knowledge of Any of the Higher
Officials of the Works-Secretary
Herbert Makes an Ofhcial Statement
About the Mater.
Washington. March 2.-The Secretary
of the Navy tonight made public some
interesting facts heretofore carefully
kept secret in regard to the armor plate
contracts Of the Carnegie Company for
the new navy vessels. The publica-
ton was called out by Washington dis
patches TO the New York Tribune, assert
ing that inferior arnor plates to the
value of some millions of dollars
had been IMPOSED upon the government
by the Carnegie works, Notwithstanding
the presence in the works of an officer of
the ordinance bureau, who inspected the
plates, and that the matter being discov-
cred, Mr. Carnegie and his managing
man, Mr. Prick, were summoned to Wash
ingtOn last December and had an inter
view with the President, which resulted
in the imposition of a heavy fine upon
them.
WHERE THE BLAME LAY.
1t was not charged that Mr. Carnegie
or MIR trick, or any one in high authority
at the works, was cOgnizant Of the sub
stitution of plates inferior to the test
plates, but it was suggested that the
substitution was by some foreman or
other person having an interest in
showing a greater percentage of excel
lence in his work than the facts war
ranted. The penalty imposed on the Car
negies was 10 per cent of the amount of
the contract price of the plates delivered.
Secretary Herbert S statement is subioined
The secretary adds that the Tribune's
suggestion that the imposition of this fine
had anything to do with Mr.. Carnegie's
celebrated letter of Jan. 3, Just previous
to his sailing for Europe, in which he
gave a qualified approval of the Wilson
bill, is entirely gratuitous. The matter,
he says, was entirely q business transac-
ton between Mr. Carnegie and the de-
partment and, as such, has been closed.
SECRETARY RERBERT's STATEMENT.
Secretary Herberts official statement
is as follows: early in December last
the department ascertained that illegal
practices were being resorted to by some
of the employees of the Carnegie Steel
Company limited, at Pittsburg, Pa, in
the manufacture of armor for the gov
eminent, and that these irregulari-
ties had been continued for some
time. A thorough investigation was set
on foot at once. 1t was ascertained
that while the armor manufactured for
the government was good-all exceeding
the lowest limit of tolerance in the speci-
tications- yet, that portions of it were
not up to the highest possible mark of
excellence, which by their contract, the
company was bound to attain.
HAD TO PAY $140,4S4.
CATER some time spent in negotiations,
the Carnegie Steel Company appealed
from the Secretary of the Navy to the
President, who, on Jan. 10, assessed the
damages against the company at SAC, 4S4,
and the company, on Jan. II, 1894, settled
with the department. There was no evil
dence showing, or even tending to
show, that any of the officers
above those Immediately superin-
tending the tempering and heat
ing we're at all cognizant of these
Irregularities, but as the Company was
responsible for the acts of its employees,
damages to that extent were assessed
against the company and the contracts
continued. The department has taken
such precautions at this and all other
points where contract work is being done
for the government that it is believed to
be impossible for any irregularities to oc-
cur in the future without immediate de-
lection"