Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1897-05-14
Washingtun Standard
NO BIDS FOR ARM0R PLATE.
Carnegie and Bethlehem Companies
Hefnse to Bid.

hetuS6 10 Blu.
There were number al surprised
people at the Navy Department recent
ly WHEN bids were open for supplying
the government with 5000 tons of
armur for the battle ships Alabama,
Illinois, and Wisconsin. II wa the
first opportunity al thr department
L. test the attitude of the armor plate
manufacturers with regard to the
stipulation in the naval appropriation
bill that the average cost of armor to
the government should not be more
than 5000 ton. Secretary Long
presided at the opening OF the bids,
and he announced that one bid only
had been received. When the So
called bid was examined it was found
to be in the form of two propositions
from the Illinois Steel Company, a
Chicago concern, neither of 4 regular
character in conformity with the adj
vertisement. Both of these PROPOSE
tons will be rejected.
The company offered to furnish the
5000 tons at $500 ton, on condition
that Congress would award it a con-
tract for the entire wants of the United
States government for armor plate for
twenty years. If this were done the
firm would furnish the material at
$24O ton, provided it did not have to
manufacture less than 5000 tons and
more than $4,000 tons annually. The
other proposition was curious. 1t con-
templated the erection by the govern
ment of its own plant, the Illinois
Steel Company to lease it the ground
at nominal figure for ninety.nine
years and to furnish open-hearth in
gots suitable for armor plates.
Just before this so-called bid was
announced Lieut.. Stone, to whom the
choice was given by Secretary Herbert
of retaining his position with the
Carnegie Steel Company or resigning
his commission in the navy, and who
chose the first named alternative,
presented to Secretary Long letter
from C. NJ. Schwab, President of the
Carnegie Company, stating his reasons
for declining to bid. He said that as
the act of Congress of March 3, 1891,
prohibited the acceptance of any bid
over $500 per ton, we are unable to bid,
as with all our facilities and experience
we cannot supply the government
with armor at that price," The letter
concluded with the proposition to fix
u price by arbitration.
Vice.President Davenport and
Messrs. McElvane and Meiggs were
present in the interest of the Beth
lehem Iron Works, and Mr.. Daven-
port presented long communication
from Mr.. Sayre, the vice-president
and general manager of his firm.
The letter is devoted mainly to an
argument to show why the Bethlehem
Company cannot construct armor at
the price fixed by Congress. In 1887
the company executed its first armor
contract at $536.16 per gross ton.
Yet, says Mr.. Sayre, this was simple
plain steel armor, not nickle, alleged,
face hardened nor reforged as is now
demanded. Another additional ex-
pense, he says, is caused by the difficult
shape required in the armor plates,
increasing the cost and risk of fash
ioning them, and this is especially the
case with the three battle-ships.
The probable smallness of future
contracts is also mentioned by Mr..
Sayre to show why armor cannot be
manufactured proftably at the given
rate. For four years the annual
average of armor plate contracted for
has been 1889 tons, and it is not likely
that future orders will exceed 1000
tons each year. The armor plate cost
ing 100000, and charge of Is per
cent. to cover depreciation, equalling
$500, 900, would make the fixed charge
$500 per ton of armor, exclusive of all
other costs to manufacture. The COM
pany had been given to believe, says
Mr.. Sayre, that the government re-
quirements would give full work for
number of years, and he thinks it
hardly equitable to shut down its plant
or make armor at price leaving no
margin OF profit.
In conclusion, Mr.. Sayre suggests
that if Congress will remove the limita-
ton of $500 per ton he can agree with
the Navy Department on a price not
greater than that paid by any country
in the world for similar armor.
What the government will do in
view of the setback given by the re-
fusals to bid has not been decided.
Congress will have to untangle the
knot. Meanwhile Secretary Long has
reserved his opinion.
Jenny Limbs Erecoclly.
"Jenny Lind could not have been
more than four years old when she