The St. Louis Republic., 1903-02-02
No Less Than Seven Great Firms
Which Undertook Government
Contracts Failed.
BIDDING is SPIRITED, However.
Companies Claim They Want the
Advertising and Prestige Of
Constructing an American
Battleship.
REPUBLIC SPECIAL.


Washington. Feb. 1.-The keen competi-
tion among shipbuilders developed by the
bidding for the armored cruisers Washing
ton and Tennessee has excited much COM
ment in the navy and brought into discus
sion the question of whether 1t is profitable
to undertake Government work Of this char
acter. While there are wide differences Of
opinion on this subject among naval men.
It is an interesting fact that the Navy De-
partment is Of the opinion. based on ex-
perience dearly bought. that the construc-
ton of an armor-clad of any description is
a pretty risky thing to undertake from Pc
cliniary and other standpoints.
! Without passing upon the question OF the
alleged ability of private concerns to build
warships at profit. the department Is con-
vinced that the Government cannot do the
work at its own yards within the prices at
which shipbuilding firms agree to do 1t.
A great many naval officers profess to be-
lieve that there is a great profit in building
warships. They maintain that there IL a
profit of at least rs per cent in these con
tracts. which opinion Is shared by a number
of members Of Congress who are of course.
not as competent to judge In the matter as
men of practical experience In naval work.
The shipbuilders have contended all along
that there Is no profit and frequently loss
IN the building of vessels of war. They
have maintained and still insist, in response
to the pertinent inquiry as to why they
have been guilty of such unbusinesslike
methods as Undertaking work which would
mean heavy loss, that II is merely for ad-
yertising purposes that they, have en-
deavored to obtain contracts for building
warshps. In further explanation of this as
who is intrusted with the construction of a
battleship or cruiser obtains a tremendous
prestige not only in this country but
European Powers watch with the closest
care the manner in which war vessels built
for the United States conduct themselves
and they are quick to take advantage of the
opportunity OF securing good ships for their
own fleets if once convinced that American
shipbuiiding firms can build them. Some
tanned.
The high standard of construction de-
manded by the United States and the sue
cessful manner in which American ship
builders have risen to 1t have been recoR-
I11a nlseG ed; abroad. and the result has been the
men-of-war of the best type
CAUSED SEVEN FAILURES.
me records Of the Navy Department sup
port inferentially the contention of the ship
than seven shlpbuilding firms failed after
having secured contracts for building naval
vessels % The William Trigg Company OF
ceiver while 1t was engaged in CONSTRUCTING
six naval vessels on which payments were
made made regularly as the work progressed.
i, iii, ConceiH financial troubles appear to
have dated from its first attempt to build
torpedo craft. At the time the assignment
was made. It had just finished the torpedo-
boat destroyer Decatur and had on the
stocks stocks the cruiser Galveston and the de-
stroyer Dale and was putting the finishing
IoucheS on the torpedo boats Shubrick
Stockton and Thornton.
Its experience was not so unhappy, per-
haps. as that of ]. NJ. Roach Of Chester,
Pa. who really began the work Of finishing
vessels for the new navy. Seven vessels OF
war, including two monitors. three cruis
ers and two gunboats. had been contracted
amount of money involved in these con-
tracts. Roach failed. and never succeeded
in getting onto his feet again. The vessels
upon which he was the successful bidder
moh. the cruisers Boston. Chicago and At
lanta. and the gunboats Dolphin and Alert,
the former better known as the dispatch
boat: and commonly known as ''the Presi-
dents yacht"
Other firms which found that Govern
ment work was not profitable enough to
prevent failure were Charles Hillman of
tion of the torpedo boat Mackenzie; Violin
& Zurcker of Portland. Ore, who con-
tracted to build the torpedo-boats Davis,
Fox and. Goldsborough; the Iowa Iron
the torbedo boat Ericsson was coincident
with financial disaster; the City Point
Works of Boston. which obtained the com
Columbia Iron Works Of Baltimore, which
failed, despite the IT that 1t obtained
the contracts for building the cruisers De
troit and Montgomery. the gunboat Petrol
Winslow and Tingey.
There is official record that the construc-
tion of torpedo-boat destroyers and torpedo |
boats is not profitable business. The Navy
this. was finally convinced of Its truth. and
now admits it without reserve.