The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-04-10

ing annual contracts during twenty years,
for not over IL. 900 nor less than 5000 tons
a year, at tho average Of $24O per ton
Further, the company was to pay 300 per
ton for whatever II did not furnish, when
called for, and the Government 800 per
ton for any It did not order, up to the speci-
fled minimum. The other proposition was
for a Government plant to be erected on the
ground of the company, which would then
supply the ingots for the armor plates at
a specified rate.
We have spoken OF these as the only bids.
But the Carnegie company suggested arbi-
tration by experts to fix the price, while the
Bethlehem wanted the price limit Of Con-
gress removed, or would sell It's plant to
tho Government below what 1t cost, at q
price to be ixed by arbitrators.
Looking first at the proposals. of the I'LL
nois company, It is clear hat they are out
of the question as they stand. The mini
mum annual quantity Of armor the Govern
ment must pay for is 5000 and the maxi
mum 10000 tons and putting the average
at 5000, this would furnish three first
class battle ships each year, or sixty
in twenty years. Our naval programme
only calls, it is understood, for twenty such
ships in all, and we now have nine Of them
built or building, not counting, Of course,
the Maine and tho Texas. Perhaps far moro
thar twenty will turn out to be desirable,
but IL would not do to contract, under
heavy penalties, to build forty big armor-
olads besides those We at present propose,
merely In order to save money on thep pend
ing needs Of only three ships.
Again, It has been estimated that thus
far $500 tons a year is all we have used on
the average, and, II 30, at the same rate In
the future we should be paying penalties Of
500 per ton on $500 tons, tho amount
below the prescribed 5000, so that, even
supposing we should go on for twenty years
In building armor-clads, at the present rate,
we might be paying nearly $250,OO0 q
year in penalties, and then have moro ships
than we needed. Still, apart from the
question Of the number Of ships required,
we should really save O good deal
at $24O per ton and 800 moro in
penalties, over paying $4O0 a ton. II
we should build ships requiring 5000
tons n year for twenty years, there would
be no penalty. but it would represent
forty.fve first-class battle ships in addition
W "hab We ho" hdNo. 1hCh, oo pho la
nois company cannot begin to deliver
armor under eighteen months, thore would
be damages to pay to the contractors for
the three existing battle ships that would
be waiting for 1t.
1t seems to us, therefore, that the I'LL
nois company is practically out Of it, on its
present offers, although a five years agree
ment at 5000 tons a year might
be different. But it binds the Govern
ment, to build and maintain far more ships
b it now needs, in order that its own
very small percentage of profit OF each may
be made up, after reimbursing the cost of
erecting a plant. 1t Is too expensive to build
hulls and machinery and to maintain armor-
clads for us to economic on armor in this
way. 1t is better to pay more for the armor
and have only the number of ships we may
need. The Bethlehem and Carnegie compa-
MES already have their whole plants paid
for out OF past profits on Government work,
and need consider only the cost of mainte.
nance and manufacture n q liberal profit.
Congress, therefore, should apparently
either raise the price limit to $4OO, not
haggling at $3.50, or else instruct the Navy
Department to build a Government plant.
Perhaps, as the former plan, though sensi-
BILE, would be fought by Senators who are
unwilling to allow the existing plants so
large a profit as Mr.. HERBERT estimated,
ut $500 per ton, it would be better, as a
quick compromise, to raise the price limit,
with authority appended for constructing
the Government plant at once should not
bid within $4OO be offered within twenty
days. In hat way opposing views might
be reconciled without costly delay.
If a Government plant proves to be re-
quired, in building its own the Government
will not only avoid the discrimination of a
choice between the companies that would
consent to sell their plants, but will pay
nothing for the land, having enough Of it's
own, and nothing for the skilled superin-
tendence of its own officers in erecting 1t,
while the cost of building to-day is far less
than when the two older plants were built.
Yet we think it far more desirable, in
the alternative of a new Conveniently built
plant or contracts for 5000 tons of armor
only with the private plants, at $4OO or
less, including the nickel, that the latter
should be the one chosen.
Gen.. Rivera n Prisoner OF War.
The nassaoe of the Senata reaolution ia.