The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-01-06

furnishing arTnor to the Russian gov
ernment, which was $249 per ton The
cost of transportation and insurance
was 81 per ton, the nickel furnished $40
per ton, leaving the net cost 1925 per
ton, which, the secretary says, if the
company can barely make armor at
cost OF $3.50 per ton, was loss of $50
per ton OF $35 600 on the 400 tons fur
n1shed- He points out that in the last
contract which this company made with
Russia the price was $4,000 per ton for
1,131 tons and says that the profits must
have been very large. The secretary
says that it is essential that these or
other armor plants be kept in operation.
The Carnegie and Bethlehem companies
have erected plants costing at least
million dollars, but this was done upon
the faith of the immediate contracts
guaranteeing them large profits.
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 prob
able that other business corporations
viii venture upon the establishment OF
plants, although it has been shown by
testimony that plants can be erected at
a much reduced cost.
Should the present arFnor contractors
refuse to make contracts at the hgure
decided upon by congress, it is not
probable that others would undertake
the work.
Mr. Herbert says it is not desirable
that the government should manufac-
Iure arfnOr, ana TOT t01S reason very
liberal profits should be offered to the
present contractors to induce them to
continue their plants in operation, and
he recommends as fair profit that 20
per cent be allowed on the cost of man
ufacture, which would be 1915 per ton.
The secretary further advises that the
contractors hereafter furnish the nickel,
which now costs the government about
$40 per ton, making the cost 1895 per
ton, or in round numbers $400 This
figure he believes a fair and equitable
price to pay for the arnor for the Wis
consin, Alabama and Illinois, the three
new battleships last authorized The
report continues that this sum may
seem a very large profit, but that some
consideration must be given to the risks
taken and that the government de-
mandS the very best armOr. The sec
rotary says that in fixing a price he
has performed a very delicate duty and
suggests that congress keep in view all
! the considerations favoring liberal
| treatment to the Bethlehem ana Car
negie companies.
The government is now paying 1868
/ per ton for armor, and, with the nickel
| added, $3.50. At the prices suggested
| by Mr.. Herbert, $500, 600 would be saved
| on each battleship- In concluding MS
report Secretary Herbert says it is pos
| sible his conclusions are erroneous, and
| therefore suggests that If his metnods
| of securing information are not correct
! the facts can be ascertained by an ex-
| hibition to congress of the books of the
| company. If congress should fix the
| price, he recommends that provision be
! made for a course to be pursued in case
| the compani refuse to make contracts
at the prices determined upon. Unless
! the present law is changed the secre-
| tary could not obtain -armor for the
| battleships already under contract L
| the companies refuse to bid within thu
| limit congress might fix To eliminate
this difficulty, Mr.. Herbert recommend
| that upon fixing a price for armor, con
r,-5z he
| erect or buy or lease an armor plant Oh
| a gun plant if necessary. II TINS l:
done better results, he believes, coule
| be obtained.