Evening journal., 1897-04-13
CHRNDLER'S BOLD MOVE
To Seize the Carnegie and Beth
lchem Armor Plants.
wARsHIPs MUST BE COMPLETED.

As Steel Plate Makers Would submit No
Bids the New Hampshire Senator Urges
That Their Factories he Taken Under
the Right of Eminent Domnin.
Washington, April Ex-senator Chan
dler of New Hampshire says that he
will introduce two bills directing the
government authorities 10 take posses
sion Of the great armor plate factories
of Carnegie, Phlpps & Co. (Linted) at
Homestead. Pa. and OF the Bethlehem
Steel company at Bethlehem. Pa, and
operate them with government forces
until all the armor plate needful to
equip the three new battleships has
been completed.
The bills viii further provide that
when the work Is completed suit shall
be begun in the usual way before the
court of claims for compensatlng the
two companies for the use Of their fac
tories, and that ON a report from the
court of claims to congress an appro-
priauon shall be made 20 reimburse
them.
These measures are The sequel TO the
recent failure of the navy department TO
secure bids FROM the Carnegie and the
Bethlehem works for armor plate with
in the rate specified by congress, $500 a
ton.
Mr. Chandler regarded the refusal Of
these firms TO bid as another move In
their sympathetic procedure 10 force the
government to their terms. He had
even anticipated this result and had
sought during the last congress to Sc
! cure a pr0visO In the armor section of
( the naval bin providing for govern
ment armor factory. This was defeated
/ through the opposition Of Senators
! Gray German, Hawley and others. who
contended that the government had no
right TO invade the field Of private en-
terprises.
Now that work on the battleships is
brought TO q halt for want of armor
the government authorities have been
hurriedly seeking TO provide means TO
meet the emergency. This led Mr..
Chandler to examine the constitutional
right of the government to invoke the
/ process Of eminent domain.
As to It's ConstitutionnIity.
The senator found in the hfthamend-
ment OF the constitution a provison
which he regards as fully empowering
the government to exercise this right
in these cases. The provision con-
cludes as follows:
''Nor shall private property be taken
for public use without just compensa-
ton"
The courts have held under this
clause that the federal government has
the full power of eminent domain as
given under the old common law.
Mr. Chandler has carefully framed
his bills to come within this amend
ment and the decisions under it. The
two bills are Identical in phraseology
except that one applies TO Carnegie
Phipps & CO. (Limited) and the Other
to the Bethlehem Steel company. The,
make no specific appropriation for EN-
ploying labor or compensatlng tn
companies. this being left for futur
adjustment.
From the outset the New Hampshir
senator has conteudcd that the tw
factories. which have a monopoly o
the business. had entered into a con
spiracy 10 eStort enormous profits from
the government. His service as secre
tary of the navy gave him practica
insight into naval contracts. He wa
placed at the head OF the Committel
of The senate charged with the duty Z
making an exhaustive inquiry into tn
cost of arm0r plate
1t was the testimony taken befor
this committee and the report writtei
by Mr. Chandler which laid bare the ex
tent of the extortionate rates wrun
from the government. AS a direct re
suit of Mr.. Chandler's report congres
made sweeping reduction in the pric
to be paid for armor.
The last naval appropriation BILL q
originally passed by the house, contem
plated a price of Sl00 per ton, or Sl2
below the old rate. When this reache
the senate. the spirit of reform was s
strong that a further reduction wa
made to $500 per ton. 1t was the natur
al result of the Chandler report. whic
disclosed that the armor factories wer
furnishing armor 10 the Russian gov
ernment at S249 per ton.