The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-12-29
SECRETS IN PERL
FOR ARhOR- MAKING
Fights for Contracts May
Disclose Them
ALL RATES MAY BE REDUCED
The Navy Department, 1t Is Said, Has
Demanded That Prices Be Ma-
terially Reduced. -.

PITTSBURG. Pa. Dec. 9-Pittsburg
which claims the distinction of being
the home of steel armor for battleships.
is at present watching with interest
the fight between the MidvaIe Steel
Company, of Philadelphia, and the COM
bined interests of the Carnegie Steel and
the Bethlehem Steel companies for the
contract 10 plate the battleship New
Hampshire and two armored cruisers.
The bids will be opened by the Navy
Department on January Il, and it looks
now as If some arrnor plate secrets
would be told
Prices Must Come Down.
Information has reached here from
Washington that those interested in the
making of arnlor plate have been in
formed that the prices must come down
within the bounds of reason.
For years the Bethlehem and Car
negle companies have had a corner on
armor plate making, and the charges
to the government have been high. For
some reason not yet explained these
prices have been kept UP, being now
about $40 ton, to say nothing of s31
"a ton which the Government pays in
royalty.
In the middle nineties when the Car
negie steel Company was selling plate
TO the Government at $3.50 ton, the 1lli-
nois Steel Company made proposition
needed at S249 a ton If given the con-
tract for twenty years. The Western
company showed that it could make a
Zig profit at $40 ton
Congressional Inquiry.
The fuss which this provoked in Cen
gress is yet fresh in the public mind. A
committee was appointed to- look into
the matter, and went TO Chicago only to
report that the plant Of the Illinois
Steel Company was too small to permit
of its putting in an armor plant.
This was asclose shave for the Car
negie high price armor and a story lies
back OF it,
w. p. Palmer was until some time be-
fore this first assistant TO John c. A
Leishman, president of the Carnegie
Steel Company. Mr.. Leishn1an and Mr..
Palmer saw what they thought a good
chance to load up on pig iron for the
company and SO invested 81, 100000 Pig
iron then took drop from sl4 at which
rate the Carnegie COMPANY had bought,
This brought Mr. Carnegie from Eu-
rope as fast as steamship could fetch
him. and Mr. Palmer's connection with
the Carnegie concern ceased Mr. Leish-
he was made minister to Switzerland,
and IS now minister to Turkey.
Palmer Got Berth.
Mr.. Palmer was fairly gathered up II,
the arms of the Illinois Steel Company
when Carnegie dropped him 1t was in
vain that II. c. Prick and c. NJ Schwab
sought TO have Mr. Palmer retained, as
they knew him to be a most valuable
man to anyone. He was not long with the
Illinois Steel Company before it made
the proposition to the Government to
furnish the best armor plate at about
one-haif the price being paid to the
Carnegie company.
1t is maintained to this day that had
Mr.. Carnegie not allowed his temper to
get the upper hand the Illinois Steel
Company would not have been in posi-
ton to oppose the Carnegie prices, as
was done in Congress. At that time
Mr. Carnegie was compelled to tell Con
gress how he had been practically
forced into the arner plate business by
Secretary of State Blaine
The tilt with the Midvale COMPANY is
expected 10 uncover some more armor
plate data of rich import