Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-01-06
nEroRr ON Anuon PLATES.
An Important and almost sensation
nj document.

An Important ami almost Sensation
nj document.
WASHINGTON, d. G., Jan. b.
Secretary Herbert today transmitted
to Congress his reply to provision In
the last naval appropriation Dill
directing him to examine Into the
actual cost of amor plate and report TO
Congress before January l, 1897. ind 10
make no contract for armor plate fol-
tho vessels authorized by that act until
after the report " as made to Congress
This pr0vlsiou OF the bill grew out of a
heated Debate n the House and Senate,
In which the contention was that the
government was paying too much fol
armor plates.
The report Ia a very important and
In many respects a sensational dJcu'
! ment. The present cost OF srmor Is
1888 per ton. Mr.. Herberps conclusion
| Is that the cost OF material anu LABOR
is Sl95. 70, and allowing for the cost OF
maintaining the plant and the nickel
now furnished by the government and
so per cent profit to the com panies, the
net cost to the government would be In
round numbers. $500 per ton.
The Carnegie and Bethlehem COM
panies have both expressed desire tO
sell out their plants to the government.
Secretary Herbert In his reply to
Congress explains the methods OF In
vestigation he pursued and the dill
cuities which beset him. Both the
Carnegie and Bethlehem companies
declined last spring to give the infot-
nation, on the ground that they were
not obliged 10 give to the public the
secret OF their business. a position 10
which Mr.. Herbert took exception on
the ground that the government had
bound itself not to buy armor plate
abroad, and therefore was entitled to
know whether the prices charged were
reasonable. ThegovernmeDti inspectors
at the works OF the companies were
examined. In November, 1895, how
ever, tue Bethlehem Iron company
sent to the department O statement OF
the cost of armor plates. The esti'
mated coat OF labor and material they
fixed at $3.50; interest on cost OF plant,
SIS. 90; maintenance and depreciation,
Sl3272; working capital, $3.50; total,
S4y4 SO. This etatement concluded 10
these sensational worue: "Whep, al
the Instance OF the United States gov.
eminent, we undertook this difficult
and vexntious business, 1t was obvious
that this could not be pfudently done
for the order which the goverDmtn.
then desired to place, but we were
given to expect such further orders
ss the government might have to
give.
"The obstacles and delays that al.
ways beset the pioneer hsu, however,,
been overcome, when the government
gave private contract on the same
terms as ours to rival concern, which.
guided by our sacrifices, WAS spared the
outlay of more than n million dollars.
Aud now the government is urged 10
set up ami operate one tor Itself. Un.
der the circumstances, we now confirm
the Informal suggestions made to your.
self and others and state that we de.
sire to Withdraw from this troublesome
business by selling to the government
below coet our entire armor plate plant,
which we believe to be the best In the
WORLD"
Tue letter Is signed by Mr.. hinder
man, the president of the company.
Secretary Herbert severely critic!sel