Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-04-09


awarded us, and furnish the armor
plate at the minimum rate of five hun
dred tons per month until all of the
eight thousand tons shall have been de-
hvered 10 the government.
I'VE understand the government has
the right 10 the use of the HarveyiZing
process and that we would not be liable
for the. payment of royalty Hereunder.
For the faithful performance of the
work in accordance with this offer, We
are prepared to furnish a good and sat
isfactory bond to the Secretary Of the
Navy in the penal sum of one million
dollars. Yours truly.
-. w. GATES, President.
Proposition No. 2:
eve hereby offer TO lease TO the United
States government sufficient ground at our
South Chicago works for a period of nine
ty-nine years. at rental Of one dollar per
annum. on the following conditions, name
~. that it will erect thereon. within a
period Of two years. plant for the manu-
facture of armor plate of a minimum ca
pacity of five hundred tons per month. and
that it purchase from us such basic OPEN
hearth steel. Of approved quality. as the
plant may require.
Convenient 70 this property we have the
most modern Open-hearth plant that has
yet been constructed. at which we are to-
day prepared TO cast ingots of one hum
dyed tons weight. and with moderate ex-
penditure are prepared on thirty days
notice TO cast and handle ingots Weighing
one hundred and fifty tons each.
As the benefits 10 US would be consider
able in having this extensive plant es-
tablished in Chicago, we will agree to
supply the steel ingots at $3.50 per ton
payments to be in gold on twentieth of
month following deliveries on the gross
weight of the ingots. we allowing credit
of eight dollars per ton for the steel scrap.
This price of $225O is for plain steel;
under the conditions of this contract. the
government would no doubt supply itself
with nickel.
The extra cost Of treatment in the open
hearth plant could be satisfactorily ar
ranged between an official Of the navy
department and ourselves. Our plant
would be at the service Of the navy de-
partment and we would render all the
assistance in our power. giving the free
use of our laboratories. etc, in experiment.
ing with other alleys. recognizing that the
art of armor plate making is progressive.
Captain W. T. Sampson chief of the
bureau Of ordnance. having examined our
plant. is fully informed as to our equip
meut for the manufacture of open hearth
steel
Tt is needless for us to suggest TO the
government what it will cost TO build such
a plant. as no doubt the department Off
cials have posted themselves thoroughly on
this subject
There are many advantages that the
government would have in the location
Of this plant in Chicago. tt would be
centrally placed for both the Atlantic and
the Pacific seaboard. and would have the
further advantage of being situated on
the interior chain Of lakes. Chicago he
ing a labor center, skilled mechanics can
be secured without ditiicu ty
secured from the Indiana and Illinois fields
by rail. or from the Ohio and Western
Pennsylvania fields by lake; or. what Is
better for armor plate work. fuel oil can
be supplied in sufficient quantities from
the Whiting plant Of the Standard Oil
Company, in close proximity.
Yours truly.
J. ". GATES.
President.
Secretary Long this afternoon made pub
lie the letters received from the Carnegie
and the Bethlehem companies.
President Schwab. of the Carnegie COM
pany writes that they are unable to bid as
with all our facilities and experience we
cannot supply the government with armor
of the quality we are now making al that
price $500"
Referring to the testimony given by the
company before congressional committees.
Mr.. Schwab says: I'VE trust you will be
able TO satisfy Congress of the Importance
of such legislation as will enable you to
negotiate with armor manufacturers to
secure M a fair price the quality of armor
the government should have If you were
i'm a position now 10 negotiate with us. and
we could not agree upon price we would
be perfectly willing to have the price fixed
by arbitration-the arbitrators to be men
skilled i'm the art"
Vice President and General Manager
Sayre sets out the position Of the Bethle-
hem Iron Company in a long letter. He
saws the company cannot bid within the
price $500 per ton fixed by Congress. The
first contract made by his company in 1887
was for $5S616 per gross ton. Yet this was
simple. plain steel armor. not nickel alloy
ed. face hardened, nor reforged as now
demanded.
In conclusion. Mr.. Sayre says that while
the company cannot supply the small
quantity of armor required at prices ma
terially lower than those now paid. it still
stands ready TO sell its plant to the gov
ernment below cost. at a fair price to be
fixed by suitable arbitration. If. however.
Congress will remove the limitation on
price. he believes he can agree with the
department upon a fair price not greater
than that paid for similar armor by any
other country in the world.
CFEHTNG ATTM0NY