The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1897-01-06
WANT UNCLE sam
TO BUY THEM OUT.
ArmOr Plate Manufacturers Willing
to Sell.
SECRETARY HERBERT'S REPORT
TO CONGRESS SHOWS THAT THE
GOVERNMENT IS PAYING AN
EXORBITANT PRICE FOR AR
NOR PLATE FURNISHED BY
CARNEGIE AND THE BETHLE-
HEM WORKS.

Washington, Jan. 5. Secretary Her
bert today transmitted to Congress his
reply to i 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 1, 1887,
and to iHake no contract for armor plate
for the vessels authorized by that act
until after the report WIS made to Con.
gress.
The report is very important and in
many repects IL sensational document.
Tine present cost of armor is 1888 per ton.
Mr.. Herbert's conclusion is that the cost
of material and labor is Si9S.70 ard al
lowing for the cost of maintaining the
plant and the nickel now furnished by
the Government and 30 per cent. profit
to the companies, the net cost to the Gov
crnment would he in round numbers $500
per ton. The Carnegie and bethlehem
companies have both expressed IL desire
TO sell out their plants to the Govern.
ment.
Secretary Herbert says that both the
Carnegie and Bethlehem companies de-
clined last spring to give the information
on the ground that they were not Obliged
to give to the public the secrets OF their
business.
The Bethlehem company finally sub.
mitted II statement placing the cost of
armor plate ut SiD4 per ton. Accompa-
nying it was letter which stated that in
view of the Governments proposal to
operate plant of its own, the company
desires to Withdraw ''from this trouble.
some business by selling to the Govern
ment below cost our entire armor plate
plant which We believe to he the best in
the worldn
Tie Carnegie company also sent Il let
ter about this time declining to give IL
full statement of cost, but giving the
elements entering into the cost exclusive
of the shop cost, making it 1924. 90.
The Carnegie company then also ami
madyerted Oh the fact that the work of
making nrmor had been undertaken at
the request of the Government, and said
it would, If the Government desired to
manufacture its own armor, be ''only too
happy to sell its plant ut 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 returned
from Europe, where he had procured two
estimates of the cost of armor plate
IAN inspection of the prices paid by
the American companies" Mr.. Herbert
says, will Indicate that they agreed with
each other rs to prices. They divided the
SOlltIiiCtS III lnlS GONprulI.CnC between
themselves, each bidding lower on one
half OF the armor required by the Govern
menU.
Secretary Herbert concludes that $3.50
may he taken rs Il fair cost of ton Ct
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 Governments
should manufacture armor and for these
reasons very liberal profits should be
offered to the present contractors to in
duce them to continue their plants in
operation, and he recommends as IL fair
profit Do per cent. on the cost of manu-.
facture, which would be 1915 per ton. 1t
will prove difficult to obtain armor for
the battleships already under contract 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 Con-
gress also authorizes the Secretary to
erect or buy OF. lease an armor plant or II
gun plant if necessary