The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-01-06


reply 20 a provision IN the last naval ap-
proprsat-on b.A directing him 70 examine
into the actual cost OF arnor plate and re-
port 70 congress before January L. lss7.
and % make no contract for armoT plate
for the yeEse4s authorized by that act IN
III after the report was made 70 congress.
This provision OF the oil grew out Of a
heated debate in the house and senate n
which the man contention was that the
government was paying too much FOR ar
NOR plates
The report IS a very important and In
many respects a sensational document
The present cost Of armor = sss3 per ton.
Mr. Herbert's conclusion IS that the cost
Of material and labor is t1sS. 20. and allow
ing for the cost OF maintaining the plant
and the nickel furnished hy the govern
raent and 20 per cent. proftt 10 the com
panies. the net cost to the government
would be n round numbers 500 per ton.
The Carnegie and Bethlehem companies
have both expressed a desire % sell out
1sielr plants 10 the government
Secretary Herbert Ia his reply 70 con-
gress explains the methods of .nvestiga-
ton pursued and the difficulties which be-
set him. Both the Carneg.e and Bethee-
gem companies declined last spr-ng 20 give
the information, on The ground that they
were not obliged 20 give to the public the
wh On Mr.. Herbert took exception on the
ground thai the government had bound
itself not 10 buy arnior plate abroad, and
therefore was entitled 10 know whether
the prices charged we're reasonable. The
government inspectors at the works Of the
companies were examined.
In November. 1886. however. the Beth
iehem Iron Company sent TO the depart
ment a statement OF the cost OF armor
plate. The estimated cost of labor and
material they fixed a. $3.50. interest on
cost of plant. SIS %; maintenance and
depreciation. Sl32 =. working capital,
s33 55. Total S94.5s
The statement concluded with these
sensational words:
When. at the instance Of the United
States government We undertook this
obvious {. II this could not be pru6ently
done fer the order which the government
then desired 20 place. but we were given
10 expect such further orders as the gov
eminent might have 10 give.
The obstacles and delays that always
heset the pioneer had however. been
overcome, when the government gave
private contract on the same terms as
ours TO a rival concern. which. guided by
our sacrifices. was spared the outlay of
more than a million dollars: and now the
government is urged 70 set up and oper-
ate one itself Under the circumstances
we state that we desire 10 withdraw from
this troublesome business by selling 10
the government. below cost. our entire
armar plate plant. which we believe TO
be the best Ia the world
The letter Is signed by Mr. Linderman.
the president Of the company. Secretary
Herbert severely critlcises Mr.. Linder-
mans methods OF calculation.
The Carnegie company also sent a letter
about this time, declining 20 give a full
statement Of cost. but giving the elements
fsssn ~ft f.F hn
shop cost and interest on plant per ton
OF armor SS1S5. maintenance OF plant per
ton OF aruor. 1914. loss by abandonment
Of plant when navy shall have been COM
pletea. per ton OF armcr. 80: total,
s@2i9s, To this the Carnegie company adds
81 per ton for working capital.
The Carnegie company also anima Divert
ed on the fact that the work of making
armor had been undertaken al the request
81 the government. nd said 10 would II
the government decided TO manufacture It's
own armor. b ''only too happy TO sell its
plant at eos:" The company. in case the
plant was purchased. agreed 10 furnish
steel IN the ingot at the price fixed by
three arbiters
also severely criticised by the secretary.
Mr. Herbert calls attention 10 the fact
that the companies made 10 statements
until he returned from Europe. where he
had procured estimates of the cost OF ar
NOR plate. He says:
An inspection % The prices paid by
American companies Will indicate that
they agreed with each other as 20 prices
They divided the contracts o. this gov
eminent between themselves. each bid
ding lower on one-haif ~ the armor re-
quired by the government"
He speaks of the sr1nor furnished by the
companies 20 Russia az s2i9 per ton and
Al
n comparison of prices that there IS at
least a friendly understandings or agree
-aeaf among tha powerful armor manu-
facturers OF the word to maintain prices
ar or about the same price"
Ia summing up. the secretary asks what
VIII be a price sufficient 10 Justify msQu-
facturprs IN maintaining srmor plate
plants. saying;
These two contractors have already
been repaid the cost cf their plants. to-
rether wtth tair prcats. The government
Is under no obligations 20 pay them more
tran the cost - fhelr original invest ulent
hBt should nay them enough 20 mRiarain
their plants
Il has hcou determined. he says that
she eosf cf labor and material i7 a ton 81
dosble-forEea nickel steel harveytzci
a~fuor. Including allowances for loss IN
franufarture e SisS s. This comprises
every element IN cost. save maintenance
auH says &c IS enolEh ant more Tie es-
ttrnstes the cost ~ the plants % the two
companies t0 he 81 5s* Sc anG an allow
aaee cr sl77a0e per annBu weuld hc sufl-
c.r~t Tor maintaining the plants 1Ee con-
uaaS that go NAV he -sken as ihe cost
~ arrnor VIXEN fhe companies have fatr
orders foe work
Mr. Hcrhert SAYS - is not sesjrs be -hat
tAs government should manufacture az
sra~ and for these reasons very liberal
Profits should be offered 90 fhe present
contractors 90 in31ce ;hem 90 >ontfrue
.rei~ plants n onera tfon. ana he re~o-r-
rss-fed. a. = f&sr profit - per cent on
-rr -ost a. manufacture. vhtrh Ucaa be
F ger fen-
TIE secretary further advises *h1t the
re-trart--s hereafter furnish TIE alrker
SIS p roN costs the government aao4t So
rfr -a- making ths cust S1s5 peV ton. cr
tr vr-~3 numbers ahout Sso This sEl8-e
he believes 8 fstr 8u3 equitable prs-e ~
rav f2r the Rr@sr xo- tae WIscoust-
A'a-srsa AVA sets fhs ynree sew tat-
tasaips }asF authorized
Eh- ~srrrt eeH snues that thls SUN may
seeu rerf 's-se rraat Aat ihst soma
ccrst aeratla- mass he given 20 ths RISKS
taken Eae te7f tse Ecvernmars aeuazras
the very best arrnor
Tae Ecverrsuent }s ~cw psvfng Sss 4
tou f1s arruc-. ara "a th che nsrkel aEars
S~ A. th~ urieeS szerrse-f nv NJ E7g~
tert seq a& vou3a ae saves en- each bat-
tBesa5p-
taiess tee present aar Sc changed. the
secretary ce-id nat CHAM armor for re
osst4eShirs airesaE under contract. Z tss
SoE13AE.ss refuse - - within tse limit