New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-06
THE ARMOR- PLATE CONTROVERSY.
STATEMENTS FROM THE MANUFACTURERS
AND SECRETARY HERBERT.

STATEMENTS FROM MH.>tr<>o '''Ai'''
AND SECRETARY HERBERT.
Washington. Feb 5.--In combating the report OF
the Secretary OF tho Navy on the cost OF making
armor-plate II. c. Frick. chairman OF the Board
of Managers OF the Carnegie Company. has writ
ten letter 10 Mr. Cameron, chairman OF the
Senate Committee on Naval Affairs. In which ne
speaks highly Of the Board Of Cmcers appointed
by the Secretary OF the Navy to investigate the
subject. That Board estimated the total COST NJ
1923 Al per ton. and Mr.. Frick says the company
would be willing to accept the report except tha'
tho shop cost is proved to be too low by the omis-
sion OF certain parts OF processes They ask that
Two items be left to arbitration. THESE iten,S'
which they think arc unfairly presenter !" W,
renor, are: The annual dividends on the capitai
stock at per cent. 1t is an axiom. Whites MI
Frick that II capital in business cannot nahc U
nor cont interest, and In addition there'o P''
cent in profits no is justified In mourning 'he
risk. Of business but he does not think that even
,his would be a fair allowance In tho manufacture
Of armor ,..s
"yyo are confident" he says. that arbitrators
would decide that are entitled to yer! u'"e'
ent return than the Board suggests on the Neco''u
no,nt for arbitration Mr.. Frick says: The SINKING
fund provided to cover depreciation Is only ABOUT
per cent OF the OF the plant. This wou'' mean
that We should calculate upon twenty-five years Oh
work building the Navy. We have ourselves es,i-
mated the period ten years allowing wv o",'
shtps a year We believe that Senator Nna""ei,
who began the building OF the Navy mas s''..u
that twenty battle-ships would prooaoiy 10 VIC
nrmber reouired; that Secretary Tracy heio INC
s.n,a view Secretary Herbert II we remember
mt the number somewhat higher. We behe'e 'hat
arbitrators would allow us much moro INA" wv
Board has for this Item
The Naval Board fixed the cost OF an a' Hio 80
n,ant at 1881 Co., but Mr. Frck says TINS Goes ho.
include $3.50 600 the cost Of a rolling MILL iepN'i'u
TO make light armor and protective ue,h p"...
which the company does not charge 10 i.h a'ih''
denartment because the mill Is also used Tot o'her
nurposes This makes the total cost OF the armo'
plant more than 100000 Considering c'eIyt""s
absolutely essential, Mr.. Frck contends mat an
outlay OF s. 10000 is necessary before arnior ~ SUI
cessfully made.
In conclusion. Mr.. Frick again refers to the re-
norts NJ the Naval Board and says: These re-
ports referred 10 are the only reports made to the
Secretary by his officers which aim to give the cost
or armor We accept them both In the main. ana
only ask that have the two points named de-
cded by impartial arbitration
r. p. Lnderman representing the Bethlehem
people, made a statement refuting the figures OF
Secretary Herbert I'm 1885," he said when We
undertook the erection of a plant for Government
work. our capital stock was S2.W0.000 on which We
were paying cash dividends at the rate OF II per
a bonded Indebtedness Of only $4,000. and had
a surplus of about $2.O)O.Uo" Instead of the com
with which to do Government work being 1891 900,
the basis which the Secretary's statements APP
peared have been prepared they were In reality,
he said STOOL 900. He also denied that the prop
erty had paid for the capital stock. During the
eight years from 1889 TO 1893, both inclusive. the
receipts from armor amounted to only $6,7soo"o, or
14.1 per cent OF the total The dividends never
ceeded II per cent, and during the period OF con-
struction they were 10, and per cent.
Secretary Herbert. in reply. said ne had in
terest whatever In sustaining the report OF his
Board unless the conclusions reached were Just.
On the basis or Mr. Iinderman's statements re-
casting OF the calculations might be necessary, and
the Secretary said he would have them made. The
Secretary told how the Rohrer Board got its in
formation, and upon It's findings he reached the
conclusion that ton of armor would a little
less than 5000 Then he added 30 per cent for profit,
which he thought was liberal. When asked If he
believed the Government would money by
making its own armor. the Secretary said he
doubted II, on account OF the Eight-hour law and
other reasons The experience OF this and all
other governments shows that Government work is
more expensive than when II Is let out privately.
We cannot build a ship In a Government yard so
cheaply as II can be built outside he said
81 also ask Congress. in order that il might hold
this matter In Its hands" continued the Secre-
tary. TO give to the incoming Secretary OF the
Navy the power to buy or lease A plant or 10 erect
It's own plant 10 manufacture Its gun steel be-
lieved that that was necessary-that there would
always comeSup questions rs between the contrac-
tors and the Government, and the Secretary ought
10 have full power to compel obedience TO whatever
Congress decide in the premises"