The times. [volume] (Washington [D.C.]) 1897-1901, 1900-11-16
AN AGREEMENT REACHED
Concessions Secured in the Price
Of ArmOr Plate.
The bethlehem md Carnegie Com
panies Come TO Terms-Exnct Cost
Hinges on the Exnction of Certain
Royalties - abandonment of the
Plan to Build a Government Plant.

The Secretary of the Navy announced
yesterday that he had reached an agree
ment with the two principal arinor- making
firms, which would end the embarrassing
controversy over the price of armor for
naval vessels, and prevent further delay In
the construction OF fourteen great warships.
Tho concerns which originally asked s545
a ton for armor treated by the krupp hard
ening process, and later reduced their price
to $3.50, have agreed to furnish the Gov
eminent with this high-class armor for
$500 a ton, on condition that the Govern
meut assumes certain liabilities as to the
payment Of royalties, which. If exacted.
would not compel II to pay more than
$455.52 per ton.
II these royalties are not exacted the
price to be paid by the Government will be
1920. Assuming that the higher price VIII
be paid, the saving which the Government
will effect by the arrangement made by
Secretary Long will be sS60.276. on account
of the reduction from $3.50 a ton. or 81
22S .52s through the reduction from the
original price asked of $5i5 ton.
Conferences yesterday between Secretary
Long, Rear Admiral O'Neil, Chief Of the
Bureau of Ordnance, and representatives
of the Carneg gle Steel Company. OF Pitts
burg and the Bethlehem Steel Company, OF
Bethlehem, Pa, resulted in an agreement
in the main features Of tie armor question.
Some minor details in the specifications OF
the contract are to be adjusted within the
next day or two. Yesterday afternoon Sec
rotary Long made the following explanatory
statement:
THE Navy Department has come to an
agreement with the Carnegie and Bethle-
hem Companies for krupp armor Of the
first class amounting to 400 tons LOT
1920 ton The Krupp process involves
the Harvey patent, the validity OF which
is now under consideration by the courts
It is further agreed that the Government
will assume any liability for the krupT
process not exceeding f5, or s24.32. ton
for Krurp royalty, and not exceeding the
United States fee of $11.20 for Harvey roy
atty The maximum price to the Govern
ment is therefore s455.52 ton. subject to
dimfnution In case OF any reduction in the
foregoing royalties.
THE bid of these companies for this
class of armor was 1890, and the price orig
inally asked. $545
THE Midvale Company some time age
withdrew their bid. but they would have
been unable in any event to furnish armor
in due season for the Maine class of bat
tleships Had they not withdrawn their
bid it is probable that some arrangements
might have been made for the distribution
among the three companies for the manu-
facture of the armor other than that oil
the Maine class. Their bid. however, was
Of value in enabling the Department to
secure the above large reduction"
To understand the extent of the agree
ment it should be explained that in Sep
TENDER bids we're opened for furnish
ing to the Government about $1,000 tons
Of sarmor. bolts. and nuts. The armor
was divided into three classes, the first
Krupp armor OF the first class, 2i.950 tons;
tue sve".sa rs-.-~ys---s as-..er. $3.50 TINS
and the third nickel armor, LOGO tons
Bolts and nuts made up the aggregate o.
$1,000 tons.
The only controversy was on the price
demanded by the makers for the 24.95(
tons Of krupp armor. Congress had de-
clared that the price was exorbitant and
had, after twice fixing the limit of cost
1t figures to which the armor makers
would not agree, authorized the Secre-
tary of the Navy 10 get Krupp armor at
reasonable price. and, failing to do SO,
to proceed with the erection of a Gov
eminent armor factory. toward the con-
struction OF which four million dollars
was appropriated.
Through the agreement reached yester-
Cay the fate of the Government plant was
settled and the navy will continue to Sc
cure its ship protection from private
firms. The contract to be signed with
the Carnegie and Bethlehem companies,
whose bids in every class of armor were
identical. will provide for the payment 10
them for the Harveyized armor and the
nickel armor of the price they asked in
their bids-S41l-20 a ton for the first and
$500 ton for the second The Navy
department will not contract at this time
to buy the bolts and nuts, leaving that to
future Investigation.
Therefore the amount Of material which
me Government has agreed to buy from the
Carnegie and Bethlehem Companies is &C.
200 tons. for SIS. o87, Geo. minimum price, or
Si6,O4.02f IL the Government is required to
pay all the royalties. The validity of the
Harvey hardening process is now before the
Federal courts and should the decision be
against the Harvey Company the Govern
ment would not be obliged to pay the sl1 20
royalty on each ton.
The validity OF the Krupp claim for roy
atty OF each ton OF armor manufactured by
the Krupp process has been questioned
also, and decision adverse to those who
claim to control the patent would relieve
the American Government Of the liability
to pay s24.32 on each ton of the "a $50 con-
tracted for.
The extent of the saving made by the
Government through the agreement may
be appreciated from the fact that France
and Japan are paying more than $500 a
ton for armor treated by the Krupp face
hardening process.
Rear Admiral O'Neil. Chief of the Bu-
reau of Ordnance who was largely instru-
mental In bringing about the agreement
made this statement:
in my opinion the general result is
most satisfactory. The terms reached are
not only extremely reasonable. but more
than reasonable. We get armor cheaper
than any Other nation in the world. The
result is certainly due to the Secretary's
careful management OF the matter. but the
companies, it is only fair to say, have acted
in very reasonable spirit
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