The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-02-06
SICK OF THE WHOLE BUSINESS
Carnegie Men Wish Uncle Sam had Their
Armor Plate Mill.

SICK OF THE WHOLE BUSINESS
Carnegie Hen Wish Uncle sam had Their
Armor Plate Mill.
Washington, Feb. 5.-The testimony
taken before the senate committee on ma
val affairs in regard 10 the report on
arrnor plate was made public today. Tie
report shows that General Manager II.
Z. Frick, OF the Carnegie company, sub
m;tted written proposition, agreeing to
leave some of the differences between
the company and tn United States 10
arbitration and that General Superin-
teddent Schwab went even farther than
the manager. Mr. Tricks letter was
dated at New York. February 1, and
said, among other things:
1.-TWO items we ask TO be left to ar
bitration the government appointing one
arbitrator, we another. those two third
and decision of the majority TO be
final. All these men of course 10 be
impartial and acquainted with the steel
manufacture"
The items he specified are: First an
nual dividend of 6 per cent on capital
stock, for which We commended. as just;
second, he complained that the sinking
fund allowed TO cover depreciation is on
~ about 4 per cent of the cost Of the
Mr.. Schwab's statement of the posi-
ton of the company on the subject of
arbitration was brought out by ques-
ton from Senator Mcmillan. The COLO
guy or this point was as follows:
McMillan-It is true that profits paid
by the government have practically paid
for all of this plant?
Mr.. Schwab-No, sir. 1t is not true,
because the profits have been calculat-
ed On a false basis We cannot show
you that without showing you our books.
We have refused to show them, for a
good many reasons. We cannot show
them to anybody, but it is absolutely
not true. In no branch OF our business
do We consider our money as poorly in
vested as in armor. There is no branch
OF the business that has given US so
much trouble, so much worry and in
which We think we have such a poor out
look as we have in armor. So strongly
do we feel on this point that there is
nothing which could please us better and
we are thoroughly in earnest when we
say that we would like for the govern
ment to take our plant. We have I'M
coubtedly the best plant in the world
Senator Smlth-At what cost do you
suppose.
arbitration-the value of the plant and
the processes and everything.
Senator Smith-Let me ask whether
your plant is SO separated from your 9TH
er works that it could be sold to the
government?
Mr.. Schwah-It could be. It is so di-
vided; il is SO situated.
Mr.. Schwsb said that the navy depart
ment estimate was about 221a per cent
too low on original materials. The cost
OF fuel, heating. forging, bending and
Harveyizing, was estimated at only 80
per cent of the annual cost, and the cost
OF labor about 40 per cent.
Mr. Frick in his letter said the orig
inal cost Of the Carnegie armor plate
plan: was over $4,000, 600, and he ad-
vancei the idea that the government
could not duplicate it for less than So
GOO 900.
President Lynderman of the Bethle-
hsm works, took exception to Secretary
Herbert's estimate of the profits OF the
company He declared that their armor
plate plant. instead of costing $500,
000 as estimated by the department, had
cost not less than s6,55l 900.
He said that for the period from 1889
10 1895. both inclusive, the gross re-
ceipts Of the company Were si6 000. 900,
of which only s6.7s0,000 was from armor,
and added that the dividends Of the com
pany never exceeded y per cent.
Secretary Herbert's report was sharp
II attacked by both Mr.. Sharp and Mr..
Lynderman. and the secretary was Civ
en- an opportunity 10 reply. He said the
method of estimates adopted was his
own. He complained that both compa-
MES had refused 10 exhibit their books.
The secretary said that in mis- opinion
the government could duplicate either
the Bethlehem or the Carnegie armor
plate for $1,000. 900. and he recommended
that congress appropriate the amount.
to be set aside and used IL case the com
panies refused to make reasonable
terms.
Il think" he said. that we ought at
all events to have the power 70 build,
buy or lease a gun plant and an arfnor
plant, for the reason that. although
these gentlemen might agree 10 this rate
of $500 per ton, you Will remember that
z contract for armOr contains a great
many details
The secretary then related the difficult
y he had encountered in getting a re-
auction on the price Of srmo- plate or
the two ships now building
II was contemplating" he said. "ad-
vertising for the contractors TO furnish
the armor and the null. and everything
else ID build the ships complete. These
gentlemen objected l answered them.
we had a long controversy on the sub
ject- FINALLY they asked why Il was I
wanted 10 adopt that plan. TO tell you
the truth / said. L want 20 get you
gentlemen 20 compete with each other:
and you must bid lower
one ot them said that his company
could not bid under certain ci-cums,an-
ces. said. 7 do not care whether a.
Tot you bid; the oths- company car
manufacture all the arnor. but unless
you come down on this article. / tel you
! viii not make a contract with you
will simply refuse 70 make any contract
with you and VIII report the matter 10
congress ani ask Z for a remedy
They then ssks1 me how much r~duc
.son ] would r-au.re- l said as m3ch
SIS you can AFFORD
They then agreed 70 submit = p-o7o-
sitio1. Alter a few days they id make
a prop sitton. vhica vas substantially
tae same from bath OF them. thz; they
would foser rates 81 least 80 ter. IL
ought 10 BE- sad 20 tIei- credit, "a.
VIXEN the BIDS were made they "a come
doxa $50 a son. so fha, contracts To-
iae present ships sre a, rate ira. as1Sa