Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-01-06

MIR. Llnuerman's methouB OF calcutta
| ton.
The Carnegie Company also sent a
| letter about this time, declining to give
full statement OF cost, but giving the
| elements entering into tho cost, exclu.
sive OF the shop cost: Interest on plant,
psr ton OF armor, sSl.5S; main,enaBco
OF plant, per ton OF armor, $685. loss
by abandonment Of the piaut when
the navy shall have been cOnpleter,
per ton OF armor, S75.49; total, S2a4 90.
70 this the Carnegie company also
| animauverted on the fact that tie
work OF making armer had been
undertaken at the request OF the gov
| eminent, aud said 1t would, IL the
| government decided to manufacture
| Its own armor, be "only to happy to
| sell Its plant at cost" The Company,
In case the plant was purchased ,agteeu
to furnish steel In the ingot at the
! price fixed by three arbitratoTe.
The Carnegie compsny'a statement
10 also severely criticised by the secre.
tary.
Mr.. Herbert calls attention to the
fact that the companies made no state.
ment until he had returned from Eu-
rope, where he had procured two esti-
| mates of the cast OF armor plate.
An Inspection OF the prices paid by
the American companies Mr.. Herbert
said "will Indicate that they agreed
with each other as to prices. They
divided the contracts OF this govern
mept between themselves, each bid
ding lower on oue.half OF the armvr
required by the government"
He speaks OF the armof furnished by
the companies TO Russia at S249 per ton
anu later at $3.50 per ton, anu cor cludes
from comparison OF prices that there
is at least "iriendly understanding
or agreement among the powerful
armor manufacturers OF the world TO
maintain prices at or about the same
level"
In summing up the secretary asks
what will be price tufii cisut to Justify
manufacturers In maintaining armor
plants:
"rhese two contractors have already
been repsit the cost:of their plants, TO-
gether with fair profits. The govern.
ment is under no obligations to pay
them more than the cost OF their
original investment, but should pay
them enough to maintain the plants.'
1t has been determined, he Gays,
that the cost OF labor auu material In q
ton OF doubie-iofged nickel steel
Harveyizsd armor, including allow
ances for losses In manufacture, lie
Sl9S.7S. This comprises every element
In cost cave maintenance OF plant. He
allows 10 per cent for THE, and says 1t
IL enough ana more. He estimates the
cost OF he plants of the two companies
to he 81 800, 600 and an allowance of
Sl5O, OUO per annum would be sufii client
for maintaining the plants. He COZ.
cludes that $3.50 may be taken as the
cost OF armor when the companies have
fair orders Tor work.
Mr.. Herbert Gays 1t lie not desirable
that the government should manu-.
facture armor, and for these reasops
very liberal profits should be offered to
the PRESENT contractors TO Induce
them to continue their plants In
operation, and he recommends as a
iair profit 30 per cent on the cost OF
manufacture, which would be 1875
per ton. The secretary further au.
vises that the contractors hereafter
furnish the nickel, which now costs
the government about $50 per ton,
making the cost 1895 Fer ton, or 10
| round numbers about $500, This
figure he believes a fair anu equitable
price to pay for the armor Tor the
WlscUbbiuy AluhUua anu lll1DOlB, the
three new battleships last authorized.
The report continues that the sum
may seem a very large profit, but
some consideration must be given to
the risks taken, and that the govern.
ment demands the best armor.
The government is now paying 1868
per ton Tor armor, and with the nickel
added s5S3. At the prices suggested by
Mr.. Herbert 100000 would be- saved
on each bAttleship.
Unless the present law Is changed
the secretary could not obtain amor
for the battleships already under con-
tract. II the companies refuse to bid
within the limit Congress might fix.
To eliminate this difficulty Mr.. Her.
bert recommends that upon fixing
price for armor Congress also author.
ize the secretary TO erect or bug or
lease an armor plant or q gun pla at, II
necessary. Ii this lie done better 70.
suite, he believes, could be obtained.