The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1896-04-12
Senate Committee Discusses the Welghty
Subject Based On Recent Testimony.
QUESTIONS DIFFICULT FOR COMMITTEE.
The Carnegies and tho RethIchcm
Iron and Steel Companies Making
n Profit orTwo Hundred Dollars
a Ton out of the eGovernment-Rus.
81" Buys 1t From Them Cheaper.

rs Noiis IL -, april 1l.-FOf up
WARDS or two hours this afternoon the
senate Committee on Naval Affairs dis
cuSsed the subject of armor plate and
klhdred topics. This discussion was
oesed on the testimony that has been
taken In secret during the past two
months as the result Of Senator Chan
oier's resolution directing the committee
10 investigate the subject of armor
plate. the prices paid by the Govern
ment. the ownership Of patents and the
connection Herewith of naval officers of
| the United States.
Just what Is fair price for the armor
purchased by the Government, and for
winch 1t is now, and has been for many
years, paying $500 a ton. is q difficult
question for the committee to answer.
ihe evidence before the COMMITTEES
poth OF armor plate manufacturers and
naEal o1icers conversant with these de-
.alis OF the business. has shown that
II costs; labor and material included.
ABOUT S30o ton to make the plate used
IN The ships of war of this country.
rms leaves profit of 5000 a ton for the
Carnegics and the Bethlehem Iron Com
pany. the only concerns in the United
states capable of supplying protective
arhior. The representatives of both
these companies told the committee that
If they could have steady contracts
ranging over period Of say ten wears.
they could manufacture this plate at n
reduced cost, possibly at SI0O q ton less
than tLat now charged the Govern
ment. but that unless there was some
assurance of steady demand for plate
II would be impossible to cut the price.
In considering the cost of the plate both
lrms took into consideration, and
brought prominently before the COM
mittee the immense capital invested in
plate shops that were utterly useless
l1r any other purpose, and they de-
| cared mat 1t was the periodical char
acter of the work given them that com
| PEELED them to charge what had been
paid recently
| Inc Bethlehem people insited that they
mad taken the contract for Russian ar
| NOR plate at a price much lower than
| mat paid by this Government. for the
| sore purpose OF Keeping constantly en-
pioyed in their plate shops. The men
skilled in that business. 1t was assert
ed that this work was being done at
\ practically the cost of manufacture and
that the profits We're merely nominal.
SO 1t happens that the problems pres
ents so many phases rhat its solution
does not yet appear plain to the COM
mittee.
1t was decided to-day the Secretary
| OF the Navy should not be n,crfer.d d
with in the letting of contracts for the
| armor for the Kearsarge and Kentucky
the two new battleships recently au-
tiioFiHcu, lor Wnlcn arnor contracts have
not been let. The Secretary will he
permitted to go ahead with his contracts
unmindful of this investigation, but the
committee hopes TO be able to reach a
conclusion that will lessen the cost of the
armor for the four new battleships au-
! thorzed in the naval bill passed by the
| House and now before the Senate
The subject of officers. either on the
active or retired list of the navy accept
| ing employment with corporations. or
| firms contracting for work for the Gov
ernment. has also received the careful
consideration of the committee and the
| conclusion has about been reached that
| this Ga u policy that should not be per-
mi;ted. for ths reason ii is believed 10
bring the Navy Department and contrac-
| tors into too close intimacy, where. in
| fact. there should be an antaEonism
| of interests. II is not improbable that
| Legislation Will he submitted to prevent
this in the future.