The evening times., 1900-07-30
GERMAN ARMoR PLATE.
Enormous Profits Made by the Few
Manufacturers.

Richard Guenther, Consul General at
Frankfort. has submitted the following re-
/ port on German armor-plate manufacture
TO the State Department:
In the report Of the committee on naval
I affairs of the German Parliament a letter
was read from Baron Won Stumm, one of
J the armor-piate manufacturers, which ne
| said he was compelled TO write in conse
/ quence OF statements in the newspapers
The business profits of the Krupp and
| Dillinger works on armor plates, he said,
! had been stated at 81, SIS. .0Oe. The rev
armored ships required 5000 tons of ar
NOR material al a cost Of 81, ,S9i, coo.
/ Therefore, even if it were taken for grant
/ ed that half OF the price constituted a clear
4 prcht, this weuid only amount to s13,32S.-
/ Geo. which, divided over sixteen years.
would be $3.50, geo annually, or $4l6,5O0 fO-
/ each concern
/ The manufacture OF armcr plate, he con
/ tinued, was very difficult; within twenty
( years the method Of manufacturing has had
/ 70 be renewed three times The least mis-
: take results in rejection which imposes
I heavy loss For years. the prices for ar
I NOR plates had not been raised, although
/ wages and cost of raw material had dOu-
bled.
In answer 10 this letter, it was argued
/ that the total demand for armOr plate.
based upon the estimates for new vessels
, and renOdeling. for the next sixteen years
would amount TO the sum of SCI, $50 coo,
not To $26. .S94, CO., II, therefore-as would
| seem to be admitted in the iGSter-half
were net profit this would amount to
I $50. 94G, Gee which would be derived by only
I two firms. A net profit consisting Of ha'f
+ OF the contract price was exorbitant- A
Z termination Of the monopoly, either by
d III Il
or by pG rticipation Of reliable competitors.
was urged. The enquiry was also made
whether the nickel-steel armOr Of those
vessels which had 10 be replaced could not
again be used.
The representa- sives Of the Government
replied that an answer 10 this question
could not be given at present, inasmuch as
the condemnation OF old armOred ships so
far had not applied 10 niekle-steel armOred
ones, but only 10 common iron-armored
ships, and these armors are no longer used.
The monopoly question was Of great impor-
tance TO the Navy Department; such mo-
nOpOlies existed not only for armor plate,
but also for guns and ammunition. The
manufacture by the Empire would be an
enormous undertaking; furtheremore, il
was not certain whether the profits on ar
NOR plate were really as high as they aD-
peared. when the capital invested is taken
into consideration The aim of the depart
nent was TO create competition and to
break the mOnopOlies.
The speaker was Of the opinion that
this could be done, all the more II by the
passage OF the bill permanent business for
shipbuilders were guaranteed.
One Of the members said that il had
been recently stated in Parliament that
England was building her ships 20 per cent
cheaper than other countries. Il this were
so. il would make a difference Of $50. .O24. 600
70 Germany on her new and reLlodeIed
. ships The representative OF the German
Government replied that the reason might
re that the English shipyards were we'll
appointed in every particular; that mate
rIal ana coal were somewhat cheaper in
Engisnd. and especially that keener com
petition existed in England between ship
| builders"