Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-01-06

THO Cost or MluLltelC ~ AA4S @AA-@ASA
1-s-e and the Price at Which the
,,~negie and Bethlehem Compa-
,fss sell it to the United States
-,vernment-A Friendly Under
andinc Among the Armor Plate
al-srs of the World-Carnegie
and Berhlshem Make a Bluff at
esiar Wiling to Sell Out.
Washington January 5.-Secretary
..r- today transmitted TO Cong ess
-.rrv toa provision In the last naval
....rr.atIun bin directing him to eX-
frro the actual cost of armOr
. and report 10 Congress before
r..rv i. 1897 and TO make no con-
M tor armOr plate for the vessels
.....-.zed by that act until after the
....r- was made 10 Congress. This
...rf..1n of trouble grew out of heat
#..ale iu the House and Senate IN
.r the main contention was that
.. government was paying too much
.rm0r plates. The report is very
-lnt and IN many respects a sen
aI document. The present cost
-u0r is S553 per ton. Mr.. Herberts
fusion IS that the cost of material
md labor is S19S.70 per ton and allow
.r the cost of maintaining the
.r and the nickel now furnished by
-orernment and fifty per cent
r Tor the companies. the net cost
On la government would be IN round
numbers $500 per ton. The Carnegie
. neth,ehem companies have both
sed a desire 20 sell out their
ants l0 the government In NOvem-
1896. the Bethlehem Iron Co., sent
n The department q statement of the
cost of armOr plate. making the total
- ION S49A56.
This staten ant concluded IN these
srsarC Cnal words.
When at the instance of the United
States government we undertook this
difficult and vexaJiOus business, il was
obvious that this could not be pru-
IDENTIFY done for the order for which the
.1.erument then desired to place, but
.a were given 20 expect such further
orders as the government might have
.1 give
THE obstacles and delays that al
been overcome when the government
gave q private contract on the same
terms 1s ours to q rival concern which,
guided by others sacrifices, was spared
The outlay of more than a million dol
lars AID now the government is
urged 20 set M another operated by
tsa'f Under the C'vCumstances we
r0v confirm the informal suggestions
rfe To- yourself and others. and state
t- we desire 10 withdraw from this
tublesome business by selling TO the
-Hrarnment. below cost, our entire
a-mor plate plant which we believe to
Boz the best I'm the world
The Carnegie Company also sent a
letter about this time declining to give
q fan statement of cost, but giving the
clements entering into the cost eXclu-
s.va 0t the shop cost, making the total
S-t996.
The Carnegie Company also animad-
verified on the fact that the work OF
making armOr had been undertaken at
.le request Of the government. and
said &c would, if the government desir-
. r0 manufacture its own armOr, be
".rIv too happy TO sell its plant at
costs"
The company. in case the plant was
rrreh sad. agreed 10 furnish steel IN
I.a 'u-lr at the price fixed by three
1.rs. The statement of both COM
raris is severely criticised by the Sec
-e..rv.
Nr Herbert calls attention to the
.. that the companies made no state
ruti ne had returned from Eu-
r.e. where he had procured two esti-
mates ar the cost of armOr plates. An
Inspection of the prices paid by the
American companies MI Herbert
'will indicate that they agreed
With each other as TO prices. They
riel the contracts Of this govern
mont between themselves. each bid
ding lower on One-half or the armor
rel bv the government.
erat. Of armor furnished by the
rs to- Russia at 500 per ton, and
r.- S.1 ue~ ton. and concludes from
1r of prices tha. there is at least
rv understanding or agreement
.rrr- .rs powerful urmov manufactur-
world 10 maintain prices at or
.re same level
uw.n- up the Secretary asks What
price sufficient 20 Justify manu-
in maintaining armor plants
..-n determined ne says. Jhat the
..n0- and material i'm n ton or
-.Irsed nickeI-steel Harveyed
including allowances for losses in
.urc IS Sl9>IN This comprises
rm.nt In cost save maintenance or
Ge allows ter per cent. for this
it is enough and more. He es-
that the cost of the plants Of the
..r..lpies TO be Si5g0Ooo and an al
r. or $4,000 per anuum would be-
for mairtliuinE the plants. sup
-nl- $500 tons OF armor is manu-
yearly 10 gives mn allowance OF
tons making I'm round numbers the
o. trmor plate $3.50 per ton. If $ooo
v.-- manufactured. the price could
-aincd boy adding $50 10 the orig
.'e- per ton .SleS. or SPAS. lie con-
lh't $3.50 m9y Dee taken as the cost
Tom of armor when the companies have
r}e-s for work
estimate is almost the exact figure
Che Bethlehem company bid for fur
hing armor 20 the Russian government.
was 500 per ton. The cost of trans
lt.on and Insurance was 81 per ton.
Foo nickel furnished $2o per ton. leav-
-aa nee cost $'15 per ton. which the
,ry SAYS, If the company can barely
lrmor at "a cost ot $3.50 per ton. was
o. So per tom. or $4,000 on the Leo
furnished The Secretary SAYS thar
essential that these or other armor
he kept I'm operation. Should the
sent Hrmor contractors refuse 20 make
tracts .f rr. rgr~.. tl. sided 1,nOn nv