Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-07-27


The amount chargeable TO our armor
plant. as stated in our testimony before
the Senate committee. is about S4. 900 :
ooo. A charge OF 10 per cent on this
investment To cover depreciation, re-
newals, additions and interest is GER
tainly very reasonable one. Fifteen
per cent of $4,000000 equals $500 900 per
annum, which, divided by 2OO0 tons.
equals 5000 per ton as a fixed charge.
exclusive Of all other costs of manu-
facture.
1t is Well known that when this conf
pany undertook to establish a plant for
the manufacture Of armor it was given
to believe that the requirements OF the
government would provide sufIicien,
work to give full employment to the
plant for a number of years. AS 4
matter of fact, the amount of armo.
for which we have received orders since
the completion of our first contract has
been less than half the capacity OF cur
works. while for the future there are M
ments of the department will even
equal those of the past; and still we
are asked to furnish this small amount
of material at price which can leave
us no margin of profit, While if we de-
cline there appears t. be no recourse
but to shut down our plant This, we
submit, Is not an equitable treatment Of
our interests, nor can the result be con
sistent with the best interests Of th,,
government.
We have taken enormous risks, have
spent money lavishly. have established
one of the finest plants in the world for
the production of arnlor plate: have
gathered and formed corps of highly
skilled men, and have spared no pains
nor conscientious endeavor to meet all
the severe demands of the government
to furnish armor equal, if not superior
to any produced in the world To have
this magnificent plant lie idle, our
highly trained corps of skilled work
ingmen scattered, and the success of az
enterprise of such Importance jeopar-
died would certainly be a national
misfortune.
AS bearing upon this view OF the
question, we beg to quote from the re-
port of Secretary Herbert to Congress,
as follows:
You must therefore pay for armor in
the future a price sufficiently liberal to
justify these contractors, or others, in
keeping plants in order and ready at all
times to manufacture afrnor if occa-
sion should require. The present size
and strength of our navy Is not 50
efficient a factor in keeping the public
peace and in creating respect for QUA
country abroad as is our capacity
rapidly to increase that navy to any
required extent"
In this connection ii should be further
notcd that with our plant in complete
working order we can produce the
armor now required in less than one
half the time, and with far greater GER
tainty as regards quality, than could
he done by any new concern that
might undertake the work
In conclusion. we beg TO state that
while in protection of our own Interest
Ne can not afford to operate our armor
plant 20 produce the small require
ments of the government at prices very
materially less than those we are now
receiving. we are, as stated in a letter
dated November ~. 1896. addressed ny
our president To the secretary of tha
navy, willing TO sell our plant to the
government below cost, at a fair price
10 Dc fixed by suitable arbitration
We wish to again express our regret
that we are not able to submit a tender
at this time within the limitation. ~
regards price, imposed by Congress. II
this limitation can he removed. we d.
not doubt but that we can agree win
the department upon a price that will
la fat, a
than is paid for similar armor by any
other country in the world. II this chr
be brought about, we shah be glad to
serve the government. as we have al
ways done to the very best of our
ability.
We remain, respectfully.
The Bethlehem Iron Company
ROBERT H. SAYRE,
Vice President and General Manager.
The Secretary of the Navy.
Washington, y. c.
The result was. as / have stated. that
TO bids We're received. and the depart
ment, finding its authority incompetent
TO provide the material necessary fol
the completion of the ships, undertook.
by a communication to the speaker OF
the House and to the president of the
Senate. to bring the matter to the at
tention of Congress. superaddng the
testimony and the judgment of the
present administration of the depart
ment to that of it's predecessor, and
that Congress authorize
the department to advertise for bids for
armor plate at a price not TO exceed
siG0 per ton.
Mr.. Barlow. Let me ask the gentle
man whether one of these companies
did not furnish armor to the Russian
government at a less price. $249 ton?
Mr. Boutelle. Well, Mr. Speaker. that
is chestnut, but l will roast it over
again for the delectation of my friend.
MIR, Barlow. The people of the United
States would like to have il roasted over
again.
Mr.. Boutelle, | will try to give the gem
tleman the information. Mr. Speaker. |
am not here as the advocate or champion
OF any manufacturers of arnor. am
hoidlng my position on this floor and en-
1oylnS the indulgence of members in my
capacity as representative of the peo-
PIE, while | endeavor to secure common
sense action by the Congress of the Uni
led states upon a business matter con-
corning which | have had some expert
ence
We have these ships on the stocks with
out any provision whatever for their ar
NOR and no provision can be made unless
Congress makes it. If Congress- shall de-