The sun., 1894-01-11
NAvY PREMIUMS FoR SPEED
Ths Rssl Rssnous OF PuSns UuIty -
which They Are Fouuaea

wAsHrNoroN. Jan. 1Q-The case OF the
Olympia, whose nne record on her trial run
over the Santa Barbara course has recently
been made public. is a good Illustration Of the
working Of tho system OF premiums for extra
speed in our war ships
This cruiser was contracted for at a cost for
hull and machinery Of S.. .79O. 900. She was
required to make 20 knots a. the average
speed Of four consecutive hours. and she really
made 21.690 knots Her premiums were at
the rate Of 5000 for each extra quarter knot.
counting full quarters and not fractions Of q
quarter. That gave her six quarters Of excess.
or 100000 as a bonus. The amount seems
enormous. and will no doubt be pointed at as
one more Of tho excesses which are spoken OF
in the resolution introduced into the House
on the subject OF speed premiums.
Yet let us look at the matter n little. In the
first place. II was recently reported that the
Olympia had actually cost her builders up to
the time Of her trial more than the contract
price. and that "a large sum, one account say
ing 100000. still remained to be laid out on
her in order to fulnl the contract II this be
90. the premium will not appear so excessive
after all. OF course much depends on what is
taken into the reckoning o, the actual cost OF
the ship In the statement Just mentioned II
II lie true however that the Olympia has cost
or will have cost more than her contrnct price.
sSo skill Snd risk kiaef Of tho r@ lDr that ne uhdes n
took her, even the exceptional premium
earned. while an abundant reward. is notm9ge
only one-sixth. or about u per cent. Of the
contract price. ana less than the latter per-
already spoken ofis true. Again. IL must be
remembered that the bids Tor the Olympia
ready oeu BEEN work @ done % ia est estimatin On tie
been more or less labor and anxiety all the
ipnn I'm nitar l.Nrf fhn M h0F
Of years It may seem less disproportionate
The renl point to be noted is that the pre-
to risk extra efforts at perfection OF machinery
and other details even II In SO doing the vessel
a swell.Rnown fact that they iisure Confidently
on the premium in making their outlays. the
consequence being that the Government gets
in some cases perhaps q vessel such as IL was
found impossible to build at the contract price.
And this brings into view another point Of
importance. namely. that the premium system
brings down the bids fos the express purpose
OF earning the premium The working Of tbs
illustrated by the 1000 -tonners. When the
first, bids were opened for them CongLess
bids actually received were those Of the Bath
Iron Works, which proposed to build them for
higher. SR The a Navy Departinent H 'I accoriinsy ord
reduced the. maximum speed required from
ls Gnotst to i.altered the conditions somewhat
and asked FOR new bids. tlyo different Trims
then competed. all Of them being we'll below
the limit OF cost Tho Bath Iron Works, for
900 and ali three for s2.O25.OUO. This was
very far from being the lowest bid, but 1t will
ding OF the same firm was the result OF rely
ing on premiums. The latter amounted to
80, 1000 Tor each qnartec knot. so that since
the engines were in no respect altered. and
other details OF construction were the same tho
result was practically to assure q bidder Of one
was what the bidders plainly relied upon.
rather than tho mere cost Of the vessel and In
fact the Detroit and Marhlehend. already tried.
have each earned more than SlOO. 600 from the
speed above | knots.
The resolution OF inquiry introduced into
the House takes note Of tho fact that great
sums have been paid in premiums, but does
not state the proportions OF these premiums to
does it take up. the great Increases OF speed
obtained through the premium system. The
81 bS0% Sba viii easr Es pnd or
earned on speed trials before the end OF the
current ilscal year; Two recent vessels alone,
much more than half that amount In the ag-
grogate, l;ut on the other side OF the account
the various new vessels as fixed by Congress:
and no complete view OF the operation Of tho
tho savings which result from that source
There Is still another point to be noted.
namely m me-, the great & Increase Of efficiency given
the fast cru ser class. In which the premiums
run so high. Vessels like. the Columbia, tbs
for the purpose OF threatening the commerce
OF n hostile nation, and thus serving to deter
such nation from running The risk OF
declaring war against us III instead
OF making merely good speed they
achieve extraordinary speed. II IA evident
that they become more valuable for their
purpose to hn extent that can hardly be recI-
oned merciY by the additional cost. They then
threaten The very swiftest transatlantic liners.
and acquire also greater defensive capacity
through their ability. to protect themselves
by their speed from being run down hy nm en-
eny cruisers NJ the same class. II Is in this
way that the Government gets n full equiva-
lent Tor all the money paid out to secure extra
speed.
The chief remaining questions seem to be
whether there should be different conditions
i'm pOssd on the trials. which brings up the
matter OF boiler pressure allowed and the lim-
its OF forced draught. and whether smaller
premiums SHOULD he offered for extra speed.
As to the power il Is q technical question. on
which OF necessity the opinion of experts
must he taEen. and we may fairly assume that
siOnal testimony. As TO the latter question,
We must note that the premium for excess
OF speed Is no larger than the penalty
for shOrtcomlng. IL is urged that engines
are planned so as TO produce higher speed
than tha contract calls for. II that Is SO in
any case the result will appear In the lower
ing Of tho bids. a. already illustrated in the
case OF the 2. 2.OUO-tonners. The more certain
the premium seems to he. from the designs.
the more confidently will tho contractors
count on Il, and the more will they endeavor
by low bids to secure the vessel
Ii may be expected that the premium sys-
tom which has already produced such good
results In increasing the speed of our vessels.
will not he dis ulaCeu.