The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-27
Big ARNOR CONTRACTS LET,
MIDVALE co., A NEW BIDDER,
GETS A SHARE.
One-third Of Total Of ~ 900. 600 Awarded
to 1t. Carnegie and Bethlehem Com.
pAnies Getting Rest--NliiSale Co, Low.
est Bidder. Has Yet to Build Plant.


WARRINGTON. Oct. 2e.-Secretary of the
Navy Moody settled a notable controversy
to-day by awarding contracts to the Carne-
gle Steel Company, the Bethlehem Steel
Company and the Midvale Steel Company
all Pennsylvania concerns for furnishing
1890 tons Of armor for five battleships
authorized at the last Congress, making
practically an equal division Of the work
among the three competitors.
The interesting feature Of the case was
tho entrance into the armor-making field
OF tho Midvale Company. Although it
has no armour plant, this concern outbid
both the older establishments. which have
heretofore had monopoly of furnishing
the highest class OF face-hardened steel
protection for American armorclads.
Under the terms of the award made by
Secretary Moody the Midvale company
will secure contracts for furnishing about
5000 tons of ar1nor for the 10, OOO-ton battle
ships Idaho and Mississippi at 1892 for
Harvey armor and 1897 for armor OF the
finest face hardening equal to the krupp
article, and the Carnegie and Bethlehem
Companies, whose bids were identical, for
furnishing about II, 200 tons for the 10000
ton battleships Vermont, Kansas and Min
nesota, or about 1000 tons to each concern,
at $500 for Harvey armor, plus $ll 20 ton
royalty, and SAT- for Krupp armor, plus
$33.07 ton royalty.
The total contract price will be nearly
81 100000. Had the entire contract been
awarded to the Mid vale company the ap-
yiyrp tn shn nj rn,,II
nave been about s75O0O0. Under the di~
vision made oy Secretary Moody, the saving
will be about $225 900. There we're imporL.
ant considerations which made 1t necessary,
in the opinion Of Secretary Moody and his
advisers, not to give all the work to the
lowest bidder.
The most important of these was that
the Midvale company, which was await
ing favorable action on its bid before be-
ginning the erection of an armor plant,
would probably not be able to make de-
liveriee fast enough to keep pace with
the construction ofbattleships and armored
cruisers, already greatly delayed on that
account under existing contracts.
Another consideration was the uncer-
tainty Of securing armor Of the requisite
toughness from a concern that had never
made any of the material and which did
not have the right, according TO the Car
nege and Bethlehem companies. TO use
the krupp face-har dening process, up to
this time the leading process for toughen-
ing armor plate.
The Midvale company did not tell what
process il would use, but agreed TO give
armor plate that would meet the high
standard of efficiency demanded by the
Navy Department. As it did not add the
cost of royalties to it's bid, it is supposed
the secret of the krupp process. Its steel
works were inspected last week by Rear
Admiral O'Neill chief of the Naval Bureau
of Ordnance who is said to have reported
to Secretary Moody that the company had
exceptional advantages for undertaking
the manufacture Of armor plate in short
order.
The Midvale company agreed in its bid
TO begin making deliveries Of armor in
twenty months after the signing Of the
contract The Carnegie and the Bethlehem
companies agreed to begin making de-
liveries eight months after the conclusion
of their existing contracts. II ia estimated
at the Navy Department that these CON
Germs will be able to complete their present
contract, of which about $4,000 tons re-
main, ia about nineteen or twenty months
The companies have promised to in
crease their monthly deliveries from sl3
to 1000 tons, but the Department believes
that about 500 tons will be the monthly
average. With Nov | as the date of the
signing Of the contract with the Mdvale
company, and the date Of the first delivery
by the two other companies dependent
upon the fulflment OF their present con-
tract, the Midvale company must begin to
make deliveries on July /, 1905, and the
Carnegie and the Bethlehem companies
on Dec. 1, 1906, or Jan. 1 1905
Up to this time the Carnegie ard The
Bethlehem companies have monopolized
the armor making business in the United
States Some years ago, when Congress
declined to make appropriations for Krupp
armor plate unless these two concerns
reduced their prices, they made an agree
ment with the Navy Department not to ask
more than a certain price. This accounts
for the fact that their bids were identical
and does not mean that collusion exists.