The San Francisco call., 1897-01-06
ARMOR PLATE
|NVES T|GAT|ON
May Lead to the Govern.
ment Providing It's
Own Plant.
Big Profits Are Made by Carne.
gle and the Bethlehem
Company.
Exhaustive Inquiry by the Secretary
of the Navy Through Englani
and France.


report to Congress on the subject of armol
plate. Under the act making appropria
tions for the naval serv ice for the yeal
ending June 80, 1897. Congress directed
the Secretary to examine into the actual
cost of armor plate and the price of the
same, which should be equtably paid.
The report OF the Secretary sets forth a.
great length the methods and results Of
his investigation, which was conducted by
himself personally, with Captain w. G.
Samson, Chief of the Bureau of Ordnance
and Chief Constructor Philip Hichborn as
advisers.
Immediately after the passage of the act
the Secretary called on the two contract.
ing mpanies, the Bethlehem Iron Com
pany of South Bethlehem, Pa, and the
Carnegie Sieel Company N.mited) ot
Pittsburg, Pa, requesting that they aid
him with the information necessary to
enable him to perform the duties imposed
upon him by Congress.
The two com panies declined to give
information, upon the ground that it was
very unusual for Congress to inquire into
the business of private corporations.
They, however, in October, made state
ments as to the cost of their plants, and
furnished suggestions to the Secretary as
to the methods which should be adopted
by him in estimating the cost of armor,
and of their investments in the armor
plates.
The Secretary called together a board
composed of Lieutenants Kari Rohrer,
Kossuth Niles and A. A. Ackerman, two
Nf w hnp hnd nf
the Bethlehem Company's Iron Works.
The other, Lieutenant Ackerman, had
been connected with the manufacture and
use of steel in its different forms for a
nun Der of years, and had been on duty
in the Bureau of Ordnance. These gentle
men made an exhaustive report upon the
cost of labor and material entering into
the cost of ton of armor. The result OF
their calculations was that the cost OF
labor and material in ton of single
forged HarveyiZed nickel steel armor is
$167 80.
Lieutenant Commander Rodgers, who
had been ins pector at the Bethlehem Iron
Works, estimated the cost and labor and
material in ton of single-forged Harvey
lied nickel-steel armor at $178 SO. The
inspector of ordnance at the Carnegie
Steel Company Ensign Q. B. McVay, who
was also called upon for an estimate, re-
ported that the la Dor and material in a
ton of single forged Harveyized nickel
steel armor is $16l 81.
Adding 10 per cent to each of these
estimates for loss d ue TO reflections makes
the estimate of the board $184 60; the esti-
mate of Lieutenant Commander Rodgers,
$I96 46, and of Ensign McVay, $177 SO.
For reforged nickel-steel Harveyized
armor the estimate of Lieutenant-Com-
mander Rodgers is $208 So and of Ensign
McVay $3.50 %.
The Secretary in making his calcula-
tions says that in order 10 be just to both
the manufacturers and the Government
he took an average estimate, which is
$l64 38 for single forged and $l97 7S for re-
forged armor, in making the calcu ations
contained in the report
Shortly alter the passage of the act
letters were written 10 the naval attache
at London and the naval attache at Paris,
instructing them to secure additional in
formation as to the prices paid for armor
TO European manufacturers and as TO the
cost of establishing armor plants like
| those possessed by the two American
companies.
The question of the cost OF establishing
an armor plant being material one, the
Secretary personally visited Europe dur
ing the past summer for the purpose OF
prosecuting inquiries in this direction and
ais to make further inquiries as to the
prices of armor.
While abroad he visited a number OF
armoz-plants and machine shops and Sc
cured two estimates, one made in France
and the other in Eng land, of the cost OF
erecting armor- plants. The French esti-
mate was for the erection OF an armor-
plant at Guerigny, and was made by the
French Government for the purpose of
ascertainIng the cost to erect an armor-
plant in connection with the works of the
Government already at that place. This
estimate made by the Government OF
France for the erection in connection with
its plant, now making protective decks
and equipment supplies, is 100000 all
told. The Secretary estimates that, allow
ing for duties and for higher-priced labor
in the building OF houses and installing of
the plant, an efficient armor-plant based
on the French figures could be erected in
this country for 81 400 600.
The English estimate, made by COM
pany of experience and reputation; and
which is prepared to furnish the plant
puts the construction at 1867, 900. This es.
innate was referred to the chief of the
Bureau of Ordnance, TO be completed by
adding the estimated cost of duties build
ings, lnstallments and other items deemed
necessary to make it equal the American
for putting up plant equal to that of the
Carnegie Company, said to have cost
5000 600, it could not be erected for
81, $50, 600.
The Secretary sets forth at some length
the fact that the Bethlehem Company, be-
ing the first to erect an armor plant in this
country, necessarily made a mum Der of
costly experiments, chief among which
was the erection of O hammer, said to
have cost between $400 600 and 500, 900.
He therefore has allowed the Bethle-
hem Company in his calculations 81 ,000 600
more as the cost of their plant than is
allowed the Carnegie Company. He esti-
mates on the basis of the English plant,
with additions by Captain Sampson of
81 $50 600 and allowing for the difference
in prices between the present time and
1890, when the Carnegie Company's plant
was erected, his estimate would be that
the Carnegie Company should be allowed
$2.500, 900 for its plant. As the plant OF
the Bethlehem Company, owing to its
costly experiments, cost considerably
more, he makes an additional allowance
to them of 81 000. 900, and his estimate
would be that its plant cost Sc, 500, ,000 but
he takes the statement of the companies
as showing what the pants cost.
The Secretary, upon his return from
Europe sent an officer to Harris sburg, Pa,
who secured copies of the returns from the
Bethlehem Company showing its capital
authorized, capital paid in and dividends
from 1889 TO November L, 1896, inclusive.
This information was supplemented,
alter request by the Secretary, by the
Bethlehem Iron Company and by
additional information secured from the
Bank OF Pennsylyania, SO that the Secre-