Evening journal., 1897-01-06
HIGH PRICE OF PLATE.
Secretary Herbert's Report on
Cost of Armor Steel.
CONGRESS IS AGAIN IN SESSION.

Cameron's Cuban Resolution Not Yet
Called Up In the senate-The Death
Penalty Bill Passed-The House Dis
eusses Loud's Postal Bill.
WASHINGTON, Jan. G-Secretary Her
bert transmitted to congress his reply TO
provision in the last naval appropriation
bill directing him to examine into the Gc-
tual cost Of armor plate and report to con-
gress before Jan. /. and to make no
contract for armor plate for the vessels au-
thorized by that act until after the report
was made to congress. This provision Of
the bill grew ont of a heated debate in the
house and senate, in which the main con-
tention was that the government was pay
ing too much for armor plates.
The report is a very important and in
many cases q sensational document The
present cost Of armor is $3.50 per ton. Mr.
Herbert's conclusion is that the cost Of
material and labor is Sl9s. 30, and, allow
ing for the cost of maintaining the plant
and the nickel now furnished by the gov
ernment and so per cent profit 10 the
companies. the net cost to the government
would be in round numbers S40O per ton.
The Carnegie and Bethlehem companies
have both expressed a desire to sell out
their plants to the government, the latter,
which was the pioneer company claiming
that it was not fairly dealt with when the
government fostered "A rival concern.
The secretary says that If congress shall
decide, as the report recommends, that no
such profits as have heretofore been earned
are to be allowed in the future it is not
probable that other business corporations
will venture upon the establishment of
plants, although 1t has been shown by tes
tilnony that plants can be erected at a
much reduced cost He says it is not de-
sirable that the government should manu-
facture armor, and for these reasons very
liberal profits should be offered to the pres
ent contractors to induce them 20 continue
their plants in operation, and he recon-
mends as fair profit 30 per cent on the
cost of manufacture.
willing to Pay Fair Price.
According to the report S4O0 would be
fair and equitable price to pay for the
armor for the Wisconsin. Alabama and
Illinois, the three new battleships last au-
thorized. The report continues that this
sum may seem very large profit, but
that some consideration must be given to
the risk taken and that the government
demands the very best armor
Inc government Is now paying 5000 per
ton for armor, and, with the nickel added,
S5s3 At the price suggested by Mr. Her
bert, $500, 600 would be saved on each bat
tleship.
II congress should fix the prices, he rec
ommends that provision be made for q
course to be pursued in case the compa
nies refuse to make contracts at the price.
determined upon Unless the present law
is changed the secretary could not obtaiI
arinor for the battleships already under
contract if the companies refuse to bio
within the limit congress might fix.
To eliminate this difficulty Mr.. Herbert
recommends that upon fixing price fol
armor congress also authorize the secre
tary to erect or buy or lease an armoi
plant. or "A gun plant If necessary. If thi
IS done, better results, he believes, coul'
bo obtained.