The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-06
CARNEGIE WILL SELL.
Wants ArbitratOrs to Fix "a Price for
the Big Armor Plate Plant.

WASHINGTON. Feb. 5.-The testimony
taken before the Senate committee on naval
affairs i'm regard to cost of armor plate was
made public to-day. The report shows that
General Manager II. e. Frick. OF the Car
negie Steel Company, submitted a written
proposition agreeing TO leave some of the
differences between the company and the
United States to arbitration and that Gen.
eral Superintendent Schwab went even fur
ther than the manager. Mr.. Frick's let
ter was dated at New York. Feb. J, and
said among other things: Two items We
ask to be left TO arbitration, the govern
ment appointing one arbitrator. We another.
these two a third. decision of the ma
jority TO be final. All these men, OF course,
TO be impartial and acquainted with steel
manufacture" The items he specified were:
First, an annual dividend OF per cent on
capital stock, for which he contended as
just: second. he complained of the sinking
fund allowed to cover depreciation. about
per cent. of the cost of the plant. which.
he thinks. is too low
Mr.. Schwabs statement of the position OF
the company on the subject OF arbitration
was brought out by a question from Sena-
tor Mcmillan. The colloquy on this point
follows:
Senator McMilan-Is IL true that the prof.
its paid by the government have practical-
ly paid for all of this plant?
Mr.. Schwab-No. sir. IL is not true. be-
cause the profits have been calculated on
a false basis. We cannot show that with
out showing you books We have re-
fused to show them for a good many rea-
sons We cannot show them to anybody.
but IL is absolutely not true. In no branch
of our business do we consider our money
as poorly invested as I'm armor. There is
no branch OF the business tnat ha- given
US so much trouble. so much worry and
I'm which we think We have such a poor
outlook as have in arnor. So strongly
do we feel on this poin: that there is moth
ing which would please US better-and we
are thoroughly in earnest when we say it
than for the government To take our plant.
We have undoubtedly the best plant In the
world
Senator Smith--At what cost do you sup
poser
Mr.. Schwab-We will fix the value by ar
bltratiOn-the value of the plant and the
processes and everything. They are all SUBJ
jects of arbitration and valuation.
Senator Smith-Let me ask whether your
plant is so separated from your other works
that IL could be- sold to the government?
Mr.. Schwab-it could be. IL Is divided:
il is so situated. We have perhaps. the best
situation I'm the United States for armor
making. We are in the natural gas district
where we have natural gas for fuel. We
have 100000 invested In natural gas and
we would supply You with gas at liked
Mir Schwab said that the Navy Depart
ment estimate was about Z2l1 per cent. too
low original material; that the cost OF
ANti hteAiirf Ati = rAAtt7r 'NH'ehr etAAN
izing was estimated at only about 30 per
cent of what IL actually is, and the cost
of labor at about 40 per cent.
Mr.. Frick In his letter said the original
cost of the Carnegie armor plant was over
ST. co. 0l0 and he advanced the idea that the
government could not duplicate IL for less
than s.. 600 600.
President Linderman, of the Bethlehem
works. took exception To Secretary Her.
berts estimate of the profits OF the COM
pany. He declared that their armor plant
instead OF costing only x3Sa5.ooa. as esti-
mated by the department. had not cost less
than ST. 551 coo. He said that for the period
from 1883 TO 1896 both inclusive the gross
receipts OF the company We're $4,000. eco OF
which only S6.570000 was from armor. and
added that the dividends OF the company
never exceeded Il per cent.
Secretary Herberts report was sharply
attacked by both Mr.. Schwab and Mr.. Lin