The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-01-06
HERBERTs STARTLING REPORT.
Says the Price Of Armor Plate has Been
Wrongly Given Heretofore.

Says the Price Of Armor Plate has Been
Wrongly Given Heretofore.
Washington, Jan 5.-Secretary Her
bert to-day transmitted to Congress his
reply to a provision in the last naval ap-
preparation bill directing him to examine
into the actual cost OF armor plate and
report to Congress before January /,
1897 and to make no contract for armor
plate for the vessels authorized by that
act until after the report was made to
Congress.
The report is a very important and in
many respects a sensational document.
The present cost of arTnor is $583 per ton.
Hr. Herbert's conclusion is that the cost
of material and labor is $19S.70 and al
lowing for the cost OF maintaining the
plant and the nickel now furnished by
the government and so per cent profit to
the companies the net cost to the govern
ment would be in round numbers $400 per
ton. The Carnegie and Bethlehem COM
panies have both expressed a desire to
sell out their plants to the government.
Secretary Herbert says that both the
Carnegie and Bethlehem companies de-
cEned last spring to give the infOrma-
ton on the ground that they were not
obliged to give to the public the secrets
of their business.
The Bethlehem company finally sub
mitted a statement placing the cost Of ar
NOR plate at $494 per ton. Accompany
ing it was a letter which stated in view
Of the governments proposal to operate
plant Of its own, the company desires to
withdraw from this troublesome busi-
ness by selling to the government below
cost our entire armor plate plant, which
we believe to be the best in the world"
The Carnegie Company also sent
letter about this time declining to give
n full statement Of cost but giving the
elements entering into the cost exclu-
siYe of the shop cost, making it S224,96.
The Carnegie Company also animad-
verted on the fact that the work Of
making armor had been undertaken at
the request of the government, ana said
it would if the government desired
to manufacture its own armor, be ''only
too happy to sell its plant at cost"
Mr. Herbert says the government ex.
perts do not sustain the estimates of the
Carnegie Company. Mr.. Herbert calls
attention to the fact that the companies
made no statements until he had re-
turned from Europe, where he had pro-
cured two estimates Of the cost Of
armor plate.
IAN inspection Of the prices paid by
the the American companies" Mr.. Her
bert says, will indicate that they agreed
with each other as to prices. They di-
vided the contracts Of this government
between themselves, each bidding on one
half Of the armor required by the gov
ernment."
Secretary Herbert concludes that $3.50
may be taken as a fair cost Of ton Of
armor. The Secretary says that it is
essential that these or other armor plants
be kept in operation Mr. Herbert says
it is not desirable that the government
should manufacture armOr, and for
these reasons very liberal profits should
be offered to the present contractors to
induce them to continue their plants in
operation, and he recommends as a fair
profit so per cent on the cost Of manu-.
facture, which would. be $375 per ton.
1t will prove difficult to obtain armor
for the battleships already under con-
tract If the companies refuse to bid
within the limit Congress may fix. To
eliminate this difficulty, Mr.. Herbert
recommends that upon fixing price for
armor. Congress also authorize the
Secretary to erect or buy or lease an
armor plant or a gun plant if necessary.