The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1897-01-13
ARMOR PLATE FRAUDS.
Herbsrt Tells How Uncle Sam Has
Been Victimzed.

WASHINGTON, Jan. 5.-Secretary
Herbert today transmitted to Con
gress his reply to provision in the
last naval appropriation bill, direct.
ing him to examine into the actual
cost of armor plate and report to
Congress bsfore January 1, 1897, and
to make no contract for armor plate
for the vessels authorized by that Act
until after the report was made to
Congress.
The report is a very important and
in many respects sensational docu
ment. The present cost of armor is
$583 per ton. Mr.. Herberts conclu.
sion is that the cost of material and
labor is $l9S.70 and allowing for the
cost of maintaining the plant and the
nickel now furnished by the govern.
ment and 50 per cent. profit to the
companies the next cost to the govern
ment would be in round numbers $400
per ton. The Carnegie and Bethle.
hem Com panies have both expressed a
desire to sell out their plants to the
government.
Secretary Herbert says that both
the Carnegie and Bethlehem Com.
paines declined last spring to give the
information on the ground that they
were not obliged to give to the public
the secrets of their business.
The Bethlehem Company finally
submitted a statement placing the cost
of armor plate at SA94 per ton. Ac.
companying it was a letter which
stated that in view of the governments
proposal to operate plant of its own,
the company desires to withdraw sfrom
this troublesome business by selling
to the government below cost our
entire armor plate plant, which we be-.
lieve to be the best in the world"
The Cargenie Company also sent a
letter about this time declining to give
a full statement of cost, but giving the
elements entering into the cost, exclu-
sive Of the shop cost, making it $224.-
96.
The Cargenie Company then also
animadverted on the fact that the work
of making armor had been undertaken
at the request Of the government and
said it would, if the government de.
sired to manufacture its own armor,
be ''only too happy to sell its plant at
cost"
Mr.. Herbert says the government
experts do not sustain the estimates
o the Cargenie Company. Mr.. Her.
bert calls attention to the fact that the
companies made no statements until
he had returned from Europe where
he had procured two estimates of the
cost of armor plate. IAN inspection
of the prices paid by the, American
companies" MIR. Herbert says, twill
indicate that they agreed with each
other as to prices. They divided the
contracts of this government between
themselves, each bidding lower on one
half of the armor required by the
government.
Secretary Herbert concludes that
$3.50 may be taken as a fair cost OF
ton of armor. The Secretary says that
it is essential that these or other plants
be kept in operation. Mr.. Herbert
says it is not desirable that the govern
ment should manufacture armor and
for these reasons very liberal profits
should. be offered to the present con-
tractors to induce them to continue
their plants in operation and he re-
commends as a fair profit 30 per cent.
on the cost of manufacture, which
would be 1875 per ton. 1t will prove
difficult to obtain armor for the battle.
ships already under contract if the
companies refuse to bid within the
limit Congress may fix. To eliminate
this difficulty Mr.. Herbert recon-
mends that upon fixing price for
armor. Congress also authorizes the
Secretary to erect or buy or lease an
armor plant or a gun plant if neces'
sary.