The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-01-06

WASHINGTON. Jan. b.-SecretaIy
Herbert to-day transmitted to Congress
his reply to a provision In the last naval
appropriation bill directing him to ex-
anime 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 principal trouble grew
out OF heated debates In the house. and
senate In which the main contention was
that the government was paying toa
much for nrmor plates. The report 10 q
very Important and IN many respects
sensational document.
The present cost of arInor Is $5S3 per
ton. Mr.. Herbert's conclusion IS that tne
cost Of material and labor Is St9S 40, and
allowing for the cost Of maintaining the
plant and the nickel now furnished py
the government and fifty per cent proht
to the companies. the net cost to the gov.
ernment would be in round numbers S4VV
per ton. The Carnegie and Bethlehem
companies have both expressed q desire
to sell out their plants TO the govern
Enent. In November, 1856, me BetnIe-
hem Iron Company sent TO the depart
mont a statement OF the cost Of armor
plate, making the total per ton sis4 90.
This statement concludes with these
sensational words:
When ut the Instance OF the United
States government we undertook this
difficult and Yexatlous business, It was
obvious that this could not be prudently
done for the order which the government
then desired TO place 1out we were given
10 expect such further orders as the gov
ernment might have TO give.
oThe obstacles and delays that always
beset the pioneer had, however peeh
overcome when the government gave
private contract on the same terms Us
ours TO rival concern which guided py
other sacrifices was spared the outlay
OF more than a million dollars ana
now the government is urged to set up
another, operated by itself. UndeF tle
circumstances we now confirm the IN
formal suggestions made by yourseH
and Others and state that we desire 10
withdraw from this troublesome Dusi-
ness BY selling to the government, below
cost. our entire armOr plate plant, Whlch
We believe to be the best in the world;"
The Carnegie company also sent q let
ter about this time declining to give
full statement OF cost, but giving the ele-
ments entering into the cost exclusive Oh
the shop cost, making the total E249 So'
The Carnegie company also anlmau-
yerted the fact that the work OF making
arnor had been undertaken at the re-
quest Of the government ana sara u
,yould. if the government desired 10
man, Saeture lts-own nrmor. be- "oniy
TOO happy to sell its plant at cost,
Mr.. Herbert calls attention TO the fact
that the companies made no statements
untjI he had returned from Europe,
where he had procured two estimates
OF the cost OF the plates. AN IN
spection OF the prices paid by the Amer,
lean companies" Mr.. Herbert says, VIII
Indicate that they agreed with each
other as to prices. -
In summing up the secretary asks
what win be a price sufficient to JUSTLY
manufacturers In maintaining armof
plants. II has been determined, ne says
that the cost Of labor and material IN
ton OF double-forged nickel-steel Hor-
veyed armor including allowances I.1i t1I
losses in manufacture, Is Sl9S 7S. Thls
cepoprIses every element In cost save
maintenance of plant. He allows 10 per
cent for this and says 1t 10 enough ana
more. He estimates that the cost OF the
plants OF the two companies to be
81 roo 900, and an allowance OF Sl6OVOO
per annum would be sufficient for main
tanning the plants He concludes that
SEQ may be taken as the cost Of q ton OF
armor when the companies have fair Or
ders for work.
This estimate Is almost the exact iig-
ure which the Bethlehem company bid
for furnishing armor to the Russian
government. which was $249 per ton.
The cost OF transportation and insur-
ance was 81 per ton. and the nickel fur
nlshed $40 per ton, leaving the net cost
S225 per ton, which the secretary says II
Inc company can barely make armor at
a cost OF S258 per ton.
Mr. Herbert says It is not desirable
that the government should manutac-
ture nrmor and for these reasons. very
liberal profits should be offered. to the
present contractors TO induce them %
continue their plants in operation and
he recommends, as a fair profit, 90 per
cent on the cost OF manufacture which
would be s375 per ton.